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In June 2009 Michiel Kooper of the University of Amsterdam published the paper Information governance: In search of the forgotten grail. Michiel definitely sees a need for Information Governance. My curiosity drives the question: What is the Information Governance business case?

What is Information Governance

In Michiel's view Information Governance involves establishing an environment and opportunities, rules and decision making rights for the valuation, creation, collection, analysis, distribution, storage, use and control of information. His paper addresses questions like 'what information do we need', 'how do we make use of information', and 'who is responsible for information'. I would like to add the questions: 'What are the consequences if we do not adopt Information Governance', Which benefits can we gain', and 'What does it take, and cost, to implement and maintain Information Governance'.

About the Governance family: Business Governance, IT Governance, and Information Governance

We all are familiar with Business Governance. It has become a proven instrument for companies to make sure that the company is run against predefined rules.

In its footsteps, IT Governance has equally well gained a place. Unfortunately, IT Governance is dealing these days mostly with the efficiency of IT processes.

Information Governance should define the supply, use, and ruling of information.

Definition of (Business) Governance

The World Bank defines governance as the exercise of political authority and the use of institutional resources to manage society's problems and affairs.

Definition of IT Governance

The IT Governance Institute defines IT Governance as: IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives.

Definition of Information Governing and Information Governance

Information Governing: The totality of interactions between actors that realize their goals using information they have in common, establishing a normative foundation for all those activities.

Information Governance: The totality of theoretical conceptions and principles related to information governing.

Business Case Considerations

Information Governance is an 'infrastructure' activity: It is an enabler for the core operational business processes. There are no immediate consequences if you neglect Information Governance. So answering the question 'How much should I spend on Information Governance' is not so easy. You would seek some balance with other important activities, like a percentage of the total IT cost. Such a value gives you time and opportunity to experiment with an Information Governance pathfinder.

Information in Its Role of Company Asset

Information is a crucial company asset, and as such it is a part of the working capital. Information consists of several types of knowledge:

• Customers
• Business rules
• Business process
• Services and products
• Market

Managing the asset information is therefore crucial. Creating information is expensive, and (re)using it simple. Companies live from information: Created and maintained in the company, but perhaps even more important: Outside the company. Through Google and other search engines everybody can retrieve information from anywhere on the Internet.

However, is seems that sometimes a Board of Directors misses crucial information to make short and long-term decisions. Some think the financial crisis is caused by the Board of Directors lacking crucial information: We are drowning in data, but we are starving for information.

Benefits and Cost of the Implemented Information Governance Process

Qualitative Benefits

Information Governance enables among others:

• Better decisions, because elementary and aggregated information is reliable.
• Faster decisions, because reliable information is immediately available.

Because reliable information is fast available, that enables:

• Marketing: faster and smarter introduction of new products and services
• Innovation: faster and reliable identification of trends from data (ideas for extending customer base, as well as ideas or new products or services)

Qualitative Cost Statement

The company would need a continuous data cleaning process, as to ensure high quality information. You would need a process, tools, and trained people.

The Successful Implementation Checklist

• Choose 1 data object type to start with, and preferably Customer.
• Determine what really makes a difference, and select your low hanging fruit first. Focus on that, and complete the project, successfully, though the is limited.
• Reduce complexity first, eliminate unnecessary documents and forms. Eliminate unnecessary manual to system transitions, and vice versa. Double check business unit interface crossings on unnecessary free information flow inhibitors, like thresholds and obstacles. Remove them.
• Select proper competences, educate and train people, define a proper approach, select adequate methods, techniques, and tools.
• Not only elementary information must be reliable, but it also must be possible to aggregate information reliably. All processes must benefit: Operational processes, tactical processes, as well as strategic processes.
• Be sure to determine what should be trusted information; everything else remains data.
• Some rules and some information is permanent. Some is temporary. Be sure that you treat them differently.
• Systematically reduce confusion. Minimize the introduction of errors, make it difficult for errors to extend their life time. Fight processes that tend to amplify errors.
• Create and maintain a reliable information set. Define reliability: Timely, complete, accurate, and correct.

Summary

Information Governance shares a lot of aspects with Master Data Management and Interaction Analysis. It can have powerful benefits. However, an important requirement is that a company uses an integrated, holistic approach, and regards the implementation of Information Governance as a long-term objective.

Results2Match drives Governance improvement programs. More blogs on Governance issues:

• Data Governance for Dummies: Part 1 (Business Requirements)
• Do We Need More Tinkering?
• Reduce Complexity and Rise Your EBIT!
• A Business Case for Information Governance (this blog)
• What Business Are We In? And Should We Want to Be In It?

This blog is written by Hans Lodder. Hans is a very experienced busienss process improvement consultant and architect. The ideas of Hans' blogs originate from questions from readers. You can contact Hans through his Results2Match email address.