Establishing a Center of Excellence for Data Management

Big data is driving growth and innovation in the current digital-first business landscape. According to NewVantage research, an impressive 97% of businesses are investing in data activities to grow and generate measurable results.

Four key reasons are driving this trend in businesses:

• They are using data to drive growth and boost efficiency
• They want to reduce the risk of non-compliance
• They are looking to monetise data
• They need to ensure data privacy and protection

While a data-driven approach is the future, businesses still face several challenges in optimising their efforts. This is where a Centre of Excellence (CoE) for data management comes in.

What is CoE in Data Management?

A CoE is a business initiative that promotes and governs the use of data and creates strategies for managing it effectively. It helps address challenges in data management and create a data strategy aligned with business goals.

By the end of 2024, 75% of businesses are expected to create a CoE to support their data initiatives and avoid enterprise failure.

Steps to Establish a Data CoE

Step 1: Define Business Goals and Objectives

The first step to establishing a Data CoE is outlining the goals and objectives you wish to achieve. Make sure these goals are measurable, for example, improving data accuracy by 50% within the next year. You must also establish relevant KPIs to track progress.

Step 2: Get Approval from the C-Suite

Before establishing a Data CoE, it’s crucial to secure support from the senior executives. Create and present a compelling case for the CoE, highlighting its potential to boost efficiency, enhance decision-making, and deliver a promising ROI.

Step 3: Build a Skilled Team

After securing the required approvals, the next step is to create a team of skilled professionals. This team should include experts from different fields, such as data science, data engineering, data architecture, analysis, and governance. Putting together a robust team will ensure the CoE is well-equipped to manage the company’s data challenges.

Step 4: Establish Data Governance Standards

Effective data governance ensures data consistency, accuracy, and security. Therefore, it’s essential to create comprehensive data governance policies, including data privacy, quality standards, access controls, and compliance with regulatory standards. These policies will regulate how data is collected, stored, and used across the organisation.

Step 5: Optimise Data Infrastructure

To ensure the CoE functions efficiently and achieves its objectives, optimising the data infrastructure for better management and analysis is essential. Make sure the infrastructure is scalable and has the required data storage, processing tools, cybersecurity solutions, and cloud platforms. This will support faster, more efficient data handling and help achieve the CoE’s objectives.

To Wrap Up

Establishing a Data Center of Excellence (CoE) is an excellent initiative to harness the full potential of business data. Businesses can boost efficiency and improve data-driven decision-making by defining clear goals, securing executive support, building a skilled team, implementing data governance policies, and optimising the data infrastructure.

If you’re looking to step up your data management initiatives, DCT can be a valuable partner. We provide the expertise and solutions you need to succeed and establish a robust Data CoE. Contact us today to discuss how we can help you optimise your data management practices.