The CIO Insight Research Study: Information Governance's Big

The CIO Insight Research Study: Information Governance's Big Payback

Thinking about information governance? Think about "information resource management," too. This term, long used in the public sector to describe the IT function, gets to the heart of an often overlooked insight: Information is a resource to be managed for maximum value, be it for the business, or public good. Unfortunately, according to this month's CIO Insight study on information governance, corporate America's information resources need much better management. Users are skeptical about the quality and reliability of their company's data, and frequently complain that they aren't getting the information they need.

It appears that most customer information simply gathers dust. How much better off would companies be if they could manage this information more effectively? That's where information governance comes in, transforming the old concept of information resource management into practical action. Only one in three respondents' companies has an effective information governance process, but companies that are effective in this area tend to utilize information for competitive advantage, improve business processes, and enhance productivity and profitability. CIOs admit they do not have all the answers on how information governance should operate, but it is clear that companies highly effective at processing and using information are also those that report better business outcomes.

Current State of Data Quality and Management

According to the study, only 28% of respondents describe the quality, usability, and accessibility of their internal structured data as excellent. Moreover, only about 67% of companies have established formal information governance processes, with significant disparities based on company size. Larger firms (with revenues of $1 billion or more) are more likely (68%) to have structured governance processes than smaller companies (45%). This gap indicates a widespread lack of effective data management frameworks across the corporate landscape.

Many organizations still struggle with data quality issues: 39% of respondents from companies with more than $1 billion in revenue agree that the data generated or imported from outside sources is often unreliable. Furthermore, a majority feel that their management frequently doubts the accuracy and reliability of the data, especially for unstructured information sources.

Impact of Effective Information Governance

Companies with established information governance processes report significant advantages. For instance, 59% of such companies are very effective at using financial data to improve profitability, compared to only 42% of firms without governance processes. Similarly, those with effective governance are more adept at leveraging customer and business process data for strategic initiatives such as improving customer satisfaction, increasing customer retention and profitability, and streamlining supply chains.

These companies also outperform in operational metrics. They report better access and usability of internal structured data, and more effective collection and use of external data, including customer and financial information. The presence of clear roles and responsibilities for managing data quality—especially for external sources—is also strongly associated with higher data trustworthiness and usability.

Challenges in Data Quality and Use

Despite the clear benefits, many organizations face challenges in achieving high-quality data. For example, only 4% of respondents assess their data as excellent across all areas—covering structured and unstructured data, internal and external. Particularly troublesome is unstructured data, which accounts for a significant portion of organizational information and remains difficult to process and analyze effectively. Users often lack access to the data they need, while executives worry about data trustworthiness and its actual value for business decision-making.

Respondents frequently express doubts about the accuracy, completeness, and timeliness of data, with 39% of those at companies exceeding $1 billion in revenue agreeing that the data they import is often unreliable. Simultaneously, many users report that a substantial portion of collected customer data goes unused, highlighting inefficiencies in data utilization and governance.

External Data and Responsibility for Data Quality

External data, which is critical for operational and strategic insights, often lacks proper management. Only about 45% of companies are confident they have effective processes assigning responsibility for external data quality, leading to concerns over data trustworthiness and compliance.

The survey underscores the importance of establishing clear rules, decision rights, and accountability for the creation, collection, analysis, and use of organizational data. This is particularly vital given the increasing volume and diversity of data types, including unstructured data like emails, social media, and multimedia content.

Necessity for Organizational and Process Improvements

Results indicate a substantial need for organizations to develop and enforce comprehensive information governance frameworks. While ease of data access and process maturity improve with governance, many companies still inadequately cover crucial aspects such as data security, privacy, storage, and quality. For example, over 80% of respondents indicate that their governance processes adequately address information security and privacy, but fewer report comprehensive coverage of data quality and data architecture.

Effective information governance involves integrating data management into overall business strategies, establishing accountability, and ensuring that organizational roles align with governance policies. Leadership engagement and a culture of data stewardship are critical success factors for creating sustainable governance frameworks.

Conclusion and Future Outlook

The CIO Insight study vividly illustrates that information is one of the most valuable organizational assets, yet it remains underutilized due to gaps in governance and data quality management. Companies that actively manage their information resources through structured governance processes can realize substantial benefits—ranging from cost reductions to increased revenue and improved customer satisfaction. As the volume of data continues to grow and evolve, organizations must prioritize developing comprehensive governance strategies, fostering data literacy across all levels, and leveraging technology solutions to ensure data quality and accessibility. Moving forward, the successful integration of data governance into strategic planning will be an essential driver of competitive advantage in the digital economy.

References

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