Why should you implement data lineage as a part of your business strategy?

Data is being produced much faster, and all businesses have realized its importance and have started capitalizing on it. From getting familiar with big data to hiring data scientists, we have come a long way in using data in the best possible manner. 

But there is one aspect of data that must be part of all the businesses known as data lineage. There might be many businesses that have realized the importance of automated data lineage, but how many of those businesses are actively using it?

This blog post is intended to make you familiar with the importance of automated data lineage. 

What is data lineage?

In layman language, data lineage depicts the entire journey data goes through as it moves through different parts of the organization. Since data has become almost a type of currency for all businesses, understanding how to use it and going through its entire journey can offer a competitive advantage. 

The importance of data lineage

If you want to trust the data and rely on it to make decisions, build reports, understand the market, and do many other things, you need to understand the data, which is what data lineage is all about. According to the experts, there are four main aspects that all firms should focus on when it comes to data lineage. 

Regulatory compliance 

Since regulatory obligations are widening in every sector, data management and data governance have gradually become a buzzword. It is not only a hot topic in the financial industry, but it has spread in almost all sectors. 

All the regulators are now stressing the importance of 100% accurate compliance reporting and highlighting how data lineage has become crucial for promoting transparency. We have moved from just showing reports to using data lineage to indicating how those reports have been made. 

Transformational change 

Data sources play a crucial role in your business. Take the example of transformational change projects where different systems are being used in other departments. Data lineage can significantly mitigate all those risks and ensure no issues related to data sources.

Data governance 

It refers to the management and control of data where you keep tabs on data integrity, usage, and accuracy. But for proper data management, you must have all the information related to data. And this is the main reason why lineage is critical.

By building a data model, you can see the current state of the business, and in this case, lineage will give you proper visibility into what is happening to your organization. So, you can consider data lineage as a tool that helps you in finding what is necessary for governing your business. 

Improve optimization

If you want to work in silos, you must work collaboratively with different teams across your business and within one platform. It helps in breaking the wall that often forms within organizations. Using the power of data lineage, you can have complete visibility of the entire data flow and organizational systems.

Running a business and not using the power of automated data lineage can be a big drawback for you. Since data has become a crucial aspect of every business, implementing data lineage and using it to its full potential has become necessary for every business looking forward to fueling growth.