May 2006 Survey: The Big Payback from Effective Information ManagementBy Allan Alter | Posted 05-31-2006
May 2006 Survey: The Big Payback from Effective Information Management
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. That's where information governance comes in, and makes the old concept of information resource management real. Only half of respondents to our May survey on information management have an information governance process, but companies that do have such processes in place fare much better at using information for business advantage, improving business processes, and boosting productivity and profitability.
CIOs don't have all the answers yet on the mechanics of how information governance should work, but it's clear that good information governance brings bottom-line benefits: Fifty-nine percent of companies with an information governance process say they are very effective at using financial information to improve profitability, compared with 42 percent of firms that lack governance processes. With a payback like that, companies can't afford to overlook formal information governance.
Only one in three
companies has an effective information governance process.">
Only one in three companies has an effective information governance process.
Information governance involves establishing rules and decision-making rights for the creation, collection, analysis and use of information; it answers the question "what information do we need, and who is responsible for it?" But many companies lack an information governance process, especially for external data, and often the processes they do have aren't effective. Clearly, there's a lot of work to be done in this area.
Information governance is important
in practice, not just in theory.">
Information governance is important in practice, not just in theory.
Across the board,companies with an information governance process are more effective at collecting and processing information, providing higher-quality data, and getting more value from their informationoften by large percentages. Yet even when such processes are in place, many companies still have a long way to go.