Data Governance

Federated Data Governance Explained

Actian Corporation

December 6, 2024

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Databases can streamline your business’s processes and make accessing important information easy, fast, and reliable. Organizing the information in those databases can be challenging, especially if you’re trying to migrate information from old systems into newer models. Federated data governance can help you easily organize data without sacrificing the independence necessary for each department to input and structure information in a way they can use.

A federated system is an architectural approach that allows multiple independent databases or data sources to work together as a unified whole while maintaining their autonomy. For end users, this allows access to view and use data from other systems without having to move data to a central repository. Let’s take a closer look.

What is Federated Data Governance?

Strictly speaking, federated data governance is a method of organizing data sources with common standards for items such as security, compliance, and interoperability. This means each data source within an organization share clear and centralized standards or guidelines that govern how the information is managed. Governance standards are usually decided by a data committee or council.

With governance in place, data owners are empowered with the ability to access and share data as well as provide context to data sets that will improve its usability. Individual teams are able to use in a way that works for their needs and often self-0serve access to data without the need for IT resources.

The goal of federated governance is to ensure compliance across data domains without hampering individuals’ ability to create and manage databases in a way that works for them, thereby helping businesses conquer the chaos of data management.

How the Federated Approach to Data Governance Works

Federated governance can be applied to many situations and industries to help streamline processes for both large and small teams. Here are some of the common ways businesses in different sectors can utilize this method of organization: 

  • Healthcare: For healthcare providers with multiple clinics or locations, federated governance can allow each clinic to access key information while still maintaining patient privacy and adhering to HIPAA regulations. Each clinic is able to access and update its individual databases without exposing sensitive data. 
  • Hospitality: Individual hotels or bed and breakfasts can manage their own data according to their needs while still adhering to the parent company’s overarching structure and standards. This helps boost consistency across subsidiaries while allowing individual hotels to do things such as flagging high profile customers.  
  • Finance: Banks and lenders use federated governance to enhance the security of each branch’s and each department’s data while ensuring customer data can be easily shared. This allows the bank to uncover potential opportunities to service customers while also improving customer experience.   

This form of governance can be customized to fit each organization’s unique needs regardless of size.  

Federated vs. Centralized Data Governance: Key Differences

Though both federated and centralized data systems work to help companies manage and organize their information, they do so in different ways. As we mentioned before, federated systems are flexible and allow each team or department to structure their data in the way that makes the most sense for their needs while still adhering to an overarching set of standards. Centralized systems are far more rigid. Only one department oversees the company’s data management, restricting each team’s ability to customize systems.   

The chart below outlines the key differences between federated and centralized systems. 

 

 

Federated Data Systems 

Centralized Data Systems 

Ownership  Each team or department establishes its own processes as long as they follow the company’s standards.  One team organizes and manages the company’s data regardless of department or purpose. 
Flexibility  Gives each team independence in data management.  Restricts each team’s data management efforts. 
Best For  Small businesses with small databases   Large established companies or new companies looking to grow quickly 

 

The Benefits of Using Federated Data Governance in Your Organization

If you’re currently using another form of data governance in your organization, transitioning into a new framework can feel overwhelming. However, switching to a federated data governance system can offer a few unique benefits that are not provided by other methods. This includes but is not limited to the following: 

  • Faster Decisions: When individuals can manage their data based on their needs, they can make decisions and changes faster. This cuts down on missed opportunities and may help businesses save on labor. 
  • Enhanced Compliance: Empowering each team to manage their own data as needed within the approved guidelines and processes increases compliance with company standards. Teams will be less likely to manage data in other places or house sensitive information in locations that aren’t as secure. 
  • Clear Ownership: Each department is responsible for its own data sets. This makes it easier for companies and team members to know who is responsible for maintenance and upkeep and cuts down on stress when trying to identify the best person to fix specific problems. 

How to Implement a Federated Data Model

Implementing a federated data model in your business takes time, but the end result is worth the effort. Here are the steps you need to follow to create a model that works.

1. Assign Roles and Responsibilities

Since you’re giving individual departments or team members the ability to oversee their domain’s data, it’s essential that they understand what’s expected of them. Take the time to assign clear roles and responsibilities to those individuals. You’ll want to outline who owns specific tasks, and the exact responsibilities each person involved has with regard to the data. This will help hold everyone accountable and reduce the risk of tasks falling through the cracks.

2. Define the Scope and Goals of the Data Governance Program

Figure out what you want the data governance program to accomplish. This will help you set your priorities and figure out the structure you need your program to include. Keep in mind that you may want to consider both your short-term and long-term goals when you’re planning your model. By having a clearer vision of where you want to go as your business expands, you’ll be better able to establish a framework that accommodates that growth.

3. Create a Framework

Once you understand your goals, you can create a framework for your federated data model within your existing data mesh by developing a new and more functional framework than you’re currently using. This framework should explain the key policies you need to uphold and how those policies will be followed at every level. Part of this framework may need to include key performance indicators to help you measure success and establish processes to monitor and report your data management efforts.

4. Develop Quality Standards

Think about your primary concerns and what you want your new model to help you improve compared to your old data management system. This can help you establish a benchmark for data quality standards for your new model. For many businesses, this involves setting minimum requirements for data security, privacy, and internal accessibility.

5. Choose a Data Catalog

Your data catalog helps your business actively manage metadata in a single, easy-to-access location. Remember, your metadata makes it easier for your team to search through your datasets and identify the information they need. As you add new information to your model, your metadata grows, so your catalog needs to be able to grow with your company, just like your framework.

Explore your options and choose a data catalog that can integrate with your current systems well without sacrificing security and scalability. Zeenea’s Data Discovery platform can take the stress out of managing your metadata.

6. Establish Clear Lines of Communication

Each person involved in the data model needs to be able to communicate with each other to make sure everyone is on the same page. As you develop your framework, create a roadmap of communication for your team. Make sure each person knows who the other stakeholders are, how to reach them, and their responsibilities. You may find it beneficial to schedule recurring meetings to keep everyone up to date.

7. Train Your Team

Once the new model is in place, you’ll want to get everyone up to speed quickly. Host training sessions and encourage each domain owner to share their expertise with other owners regularly. Consider hosting webinars, masterclasses, and other training sessions at least once a quarter or as new features are implemented.

Implementing Federated Data Governance Can Simplify Your Business

Federated data governance aims to make managing complex data sets easier for your teams, whether your business is a large multi-branch organization or a small but rapidly growing startup. Once implemented, your team will be better able to update, interpret, and manage data relevant to their needs in a dynamic and agile way.

At Actian, our team wants to take the stress out of implementing new data management models. Join a free demo of our tools and see how easy it can be to take control of your data management processes.

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About Actian Corporation

Actian makes data easy. We deliver cloud, hybrid, and on-premises data solutions that simplify how people connect, manage, and analyze data. We transform business by enabling customers to make confident, data-driven decisions that accelerate their organization’s growth. Our data platform integrates seamlessly, performs reliably, and delivers at industry-leading speeds.