Enabling Data Platform Value Creation with Data Governance – A Case Study in Machinery Industry
Tiilikainen, Toni (2023)
Tiilikainen, Toni
2023
Tietojohtamisen DI-ohjelma - Master's Programme in Information and Knowledge Management
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
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Hyväksymispäivämäärä
2023-09-28
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202309218364
https://urn.fi/URN:NBN:fi:tuni-202309218364
Tiivistelmä
As the importance and amount of data are increasing every day, organizations must adapt their strategies and figure out how to create more value with data. The practices how data is used in organizations can convert it into an asset that creates value for an organization. Data is usually managed in data platforms that collect and store data from different sources into one place. As the amount of data is increasing and it is collected in increasing amounts, it is important to understand how data governance must be implemented to manage large amounts of data and to enable value creation with data.
Current literature is lacking evidence if data governance can enable data platform value creation. Furthermore, it has been found out that information systems success model can be used in different technological applications to illustrate how it contributes to organizational performance. To address the research gap, conceptual framework is defined to illustrate how data governance is related to information systems success theory and how data governance actions enable data platform value creation. The main research question is “how should an organization practice data governance to enable data platform value creation?”. Research is conducted as a case study of a large Finnish company in machinery industry. Firstly, a literature review of data platform, information systems success theory, and data governance is performed. The study is followed by suggesting a conceptual framework. The proposed conceptual framework is empirically tested with qualitative and horizontal case study method by conducting 14 interviews in the case organization. Based on the findings, the framework is assessed and success factors that enable data platform value creation by data governance are derived.
The framework was mostly confirmed as the findings in data governance could be mapped to IS success, which then contribute to data platform value creation. Four success factors were identified. Firstly, data ownership sets the basis for practicing data governance, and it needs to be assigned so that data owner has knowledge of data and its use in business. Secondly, data catalogue needs to be setup to enable communication and understanding of data. Thirdly, an effective data monitoring needs to be established to evaluate performance of data platform. Lastly, data needs to be considered as a strategic asset by the top management and linked to business strategy and actions to recognize the value of data governance activities.
The role of communication is essential in establishing a successful data governance program and managing the success factors as they require joint effort. With a successful data governance program, data principles, metadata, data quality and data lifecycle contribute to IS success qualities in their own way. Then data platform creates value by enabling actions that convert to increased customer and financial value, which finally convert to organizational competitive advantage.
Current literature is lacking evidence if data governance can enable data platform value creation. Furthermore, it has been found out that information systems success model can be used in different technological applications to illustrate how it contributes to organizational performance. To address the research gap, conceptual framework is defined to illustrate how data governance is related to information systems success theory and how data governance actions enable data platform value creation. The main research question is “how should an organization practice data governance to enable data platform value creation?”. Research is conducted as a case study of a large Finnish company in machinery industry. Firstly, a literature review of data platform, information systems success theory, and data governance is performed. The study is followed by suggesting a conceptual framework. The proposed conceptual framework is empirically tested with qualitative and horizontal case study method by conducting 14 interviews in the case organization. Based on the findings, the framework is assessed and success factors that enable data platform value creation by data governance are derived.
The framework was mostly confirmed as the findings in data governance could be mapped to IS success, which then contribute to data platform value creation. Four success factors were identified. Firstly, data ownership sets the basis for practicing data governance, and it needs to be assigned so that data owner has knowledge of data and its use in business. Secondly, data catalogue needs to be setup to enable communication and understanding of data. Thirdly, an effective data monitoring needs to be established to evaluate performance of data platform. Lastly, data needs to be considered as a strategic asset by the top management and linked to business strategy and actions to recognize the value of data governance activities.
The role of communication is essential in establishing a successful data governance program and managing the success factors as they require joint effort. With a successful data governance program, data principles, metadata, data quality and data lifecycle contribute to IS success qualities in their own way. Then data platform creates value by enabling actions that convert to increased customer and financial value, which finally convert to organizational competitive advantage.