What is the difference between data governance and IT governance?

In this MDM video, discover how and why data governance and IT governance are different and how to design a data governance and IT governance framework in your organization. Also hear data governance best practices advice and tips from MDM expert Jill Dyche.

Hannah Smalltree: And, what's the difference between data governance and IT governance?

Jill Dyché: Good question. Basically, data governance is the ability to manage an asset. And so in the case of IT, what we're doing is we're managing and governing our technology assets. And in the case of data, we're governing our data assets. It sort of begs the question, "What is an asset?" to begin with, because of us consultants and analysts are going "data is a corporate asset" but what does that mean?

There are actually four criteria of an asset and this applies to IT governance and to data governance. And those four criteria are:


  • The asset has value, number one.
  • Number two is that value is quantifiable, so not only is the asset valuable but we can actually quantify that value of that asset. The example I like to use is a trucking company. The truck, or its fleet of trucks, is an asset. So, they know that asset has value, they know what they bought the trucks for and they can quantify the on-going value of that asset, meaning they can actually look at depreciation costs on those trucks and understand the current value of that asset.
  • The third criteria of an asset is the asset helps the company achieve its strategic objectives. If you go back and look at that truck and the trucking company, that truck is delivering goods and services in a timely way. OK, so strategic realization there.
  • And the fourth criterion is that the asset requires specialized skills in order to develop and maintain it. Again, in the case of the trucking company, it takes specialized mechanics to actually maintain that fleet.
  • So if you actually look at those four criteria — the asset has value, the value is quantifiable, helps the company achieve its strategic objectives and requires specialized skills — data really is a corporate asset. We need to start investing in it proportionally to the other assets like our fleet, like our cash for that matter. And so, as executive start to get this they're starting to put the same type of processes around governing the data that we are governing IT, technology, fleets of trucks, etc.


    MDM FAQ Video Series table of contents:

    What is master data management (MDM)?
    Who should manage MDM implementation -- IT or business?
    What is a data competency center?
    How do you calculate MDM ROI?
    Do companies need to buy software to do MDM?
    What is data governance?
    What is the difference between data governance and IT governance?
    In customer data integration, is a customer always an individual?
    Can one MDM hub handle both customer and product data?

    You can watch all these videos on one page with our MDM FAQ Multiplayer.


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