Data Democratization: What Is It & Why Is It Important?

Data is an important asset in the modern digital world, and it has a significant impact on our daily lives. However, for a considerable amount of time, only those with the means and expertise to collect, process, and analyze data had access to it. This resulted in a significant divide between those who had access to data and those who did not, which in turn led to an unequal distribution of resources. The goal of “democratizing data” is to remove these obstacles so that everyone can use and benefit from data. Data is now accessible to individuals, organizations, and societies to make better decisions, spur innovation, and improve society. In this article, we will discuss data democratization strategy, tools, examples, and Architecture.

What Is Data Democratization?

The term “data democratization” refers to the practice of making data available to more people in a company or society. A company’s entry point into strategic decision-making is now the consent of its employees to share their data.

Data democratization occurs when information is made accessible to all stakeholders, including business personnel and end users. It also necessitates a culture of data literacy throughout the company. Managers and workers must trust the data, know how to access it and comprehend how it may address business problems. They need data literacy to verify data, secure it, and give or receive instructions on how to use it.

Data transparency, which can be defined as procedures that aid in ensuring data accuracy and providing easy access to data irrespective of its location or the program that created it, is frequently confused with data democratization. Instead, the term “data democratization” refers to the process of making everything associated with data easier to use. Data democratization also necessitates a company-wide strategy for data governance, including new methods of training for employees and storage regulations.

Why Should There Be Data Democratization?

Putting it into action requires a significant financial commitment, as training staff, rolling out new software, and overseeing organizational shifts are not small tasks.

Data democratization, at its heart, is about helping people with the data problems they confront every day. Because the data landscape and people’s needs change so frequently, even the best data teams struggle to meet group requests.

Researchers spend a lot of time in groups and having conversations with folks who aren’t data experts, especially product and growth workers from all over the world and of varying company sizes.

People tend to experience the following data-related issues most frequently:

• The analytics tools my company provides aren’t designed for product teams
• I can’t trust the data
• Data experts at my company are too busy to help me
• I don’t have access to the data I need
• I have access to data but lack the skills to find answers to my questions.

Your employees agreeing with any of the above statements suggests data democratization at your organization needs development.

Fascinatingly, these difficulties can be understood in light of the aforementioned triad of data democratization principles.

How Does Data Democratization Work?

Data Democratization is revolutionary because it streamlines and accelerates the process by which an organization’s employees can gain the information they require. Top-down management, in which the views of the highest-paid employees are given more weight than those of other employees, can be avoided when information is shared equally across divisions.

Through Data Democratization, all employees are given greater autonomy and accountability inside the business. As a result, it achieves its goals via three key mechanisms:

• Data 
• Training and Tools
• People 

#1. Data

Data in organizations that are yet to implement Data Democratization is typically stored in silos, such as Microsoft SQL Servers, files, partner companies, and individual users’ personal folders. As a result, they are unable to achieve their full potential as a business due to a lack of vital information.

The architects of cloud-based data warehouses plan to knock down these walls. The Cloud provides a single and independent truth source for Data Analytics, enabling businesses to boost transparency by making aggregated or anonymized data available to outside parties.  

#2. Training and Tools

Because one analysis tool cannot handle all data types, companies need a combination of methodologies. Such software includes Tableau Desktop and Tableau Server, as well as free alternatives like Apache Zeppelin and Airbnb’s Caravel.

Other solutions, like the PyData stack, which runs on a Docker-based internal JupyterHub setup, are ideal for handling large datasets and the numerous studies that require them.     

As Data Democratization develops, it is the responsibility of a company’s staff to safeguard against the misuse of data. Training accomplishes this by teaching people how to educate themselves.

Also, seminars, mailing lists, and even HipChat channels are all great tools for sharing knowledge. Staff members can also learn from working in close proximity to subject matter specialists.    

Numerous individuals working for a company will probably like to have greater access and freedom to the firm’s data. Therefore, such large groups require numerous training sessions and analytical instruments.

Instead of limiting analytics and only delivering summarized or raw data, a multi-tiered strategy allows different users to acquire the proper layers of data, according to their needs and talents. Users can visualize several domains for the purpose of gaining incremental insights by using dynamic dashboards as the interactive tier.  

Another important layer of service that the analyst provides to the business or individual user is the guided analysis experience. A select group of people can track analysis progress with explanations and comments in the analyst’s secure and rich environment.

In addition, large datasets may require a visual data discovery tool to replace SQL queries and data tables. Excel may also be used to present data. Internal certification training may prevent higher levels of data access misinterpretation and misuse. 

#3. People 

Expertise in Data Analytics calls for the kind of mind that is curious, optimistic, and unwilling to give up. The hiring and evaluation processes are where companies can publicly recognize and reward these employees.

They interest and inspire these individuals, making them more likely to think in novel ways, which in turn increases data manipulation and the number of pertinent questions asked. Professionals are asked to coordinate seminars where they teach people about useful resources, fundamental ideas, and cutting-edge technologies.

What Are the Benefits of Data Democratization?

There are a variety of advantages for companies that make company data accessible to their customers. The following are four of the most significant advantages that result from making all data freely available.

#1. Increased Efficiency in the Workplace

Our research also shows that data upskilling has a significant impact on organizational outcomes, with 70% of leaders reporting a 70% or greater increase in the quality and speed with which they make decisions, innovate, provide a superior customer experience, and successfully retain employees. It’s clear that, from a corporate viewpoint, data democratization may lead to a more knowledgeable, creative, and productive workforce. 

The Allianz case study is a great illustration of the benefits of data democratization. More than 6,000 employees at Allianz were given the opportunity to improve their data literacy through DataCamp. They were able to calculate an average weekly time savings of 1.9 hours per upskilled employee by tailoring 22 individual learning routes for a variety of students and connecting those students’ objectives to organizational priorities.

#2. It Improves How Your Customers Feel

Customers today don’t just anticipate top-notch service during their contacts with your company; they demand it across the board. Companies that ensure all employees involved in the customer experience have access to critical data are better able to adapt to their customers’ ever-evolving expectations and demands.

#3. Grant Workers Autonomy

Employees who feel they have agency in the workplace are more likely to set and work toward ambitious goals that matter to the company. Making more data available to more people is empowering because it gives everyone a voice in shaping the company’s future. Democratizing data can also promote a collaborative culture that fosters innovation.

#4. Make Quick Choices

The ability to make snap decisions based on reliable information is a defining feature of data-driven, agile businesses. Data democratization and data literacy training allow every marketing department worker to assess the success of a campaign as if they were a trained data analyst. By allowing data users to make their own choices, firms can gain an advantage over their more conventional competitors.

Data Democratization Strategy

Adobe found that by opening up access to data, problems like resource scarcity and bottlenecks might be avoided. As a result, many businesses now consider it a crucial tactic. But how can you make progress on data democratization projects at your company? 

Training and support, clear guidelines, and data analysis tools are all essential strategies for data democratization. When data is effectively democratized, it is made available to people who can make the most use of it, giving them more authority to make choices that are in the best interests of the business as a whole.  Let’s look at  data democratization strategies in more detail: 

#1. Obtain a Firm Commitment From the Top

Data democratization reinforces the objective of becoming more data-driven. A large investment in self-service analytics tools and education is necessary for this strategic transition. Therefore, getting buy-in from top officials is a prerequisite. To create a true data democracy, you must demonstrate that your strategy does not contradict the goals of different divisions.

#2. Set up Rules and Regulations

Clear data access, usage, and governance requirements are a further strategy for successful data democratization. Included in this are the establishment of data management roles and duties, the formulation of data security and privacy guidelines, and the formulation of protocols for data sharing and collaboration. Organizations may ensure proper data usage and employee understanding of their part in the data democratization process by establishing and communicating clear expectations and norms.

#3. Promote Teamwork and Information Exchange

Fostering an environment where employees are comfortable talking to one another and sharing their insights is crucial for making the most of data democratization. Incentives for people and groups to collaborate and share their findings can be implemented in the form of forums and communities of practice where ideas and best practices can be discussed and shared. Also, by fostering teamwork and information sharing, organizations may maximize their data assets and improve their decisions.

#4. Conduct a Data Ecology Assessment

The more successful a company becomes, the more information it must process. If this information is isolated and inaccessible to the public, however, it will never be used to its full potential.

Taking stock of your data ecosystem and identifying, then correcting, problematic or fragmented systems is the first step in ensuring that your processes and data infrastructure scale with the increased demand for data.

#5. Provide Open Access to Data

An organization’s data analytics and access to that data are not restricted to the IT department in a data-driven company. Instead, they give people who have access to what they need more freedom to make decisions and get work done.

A cornerstone of data democratization is guaranteeing everyone’s access to information that matters. It is necessary to fund the creation of user-friendly technology that both technically savvy and non-technically savvy people can use to achieve this access. Data analysis dashboards and visualization tools help identify business data patterns, anomalies, and trends.

Data Democratization Architecture

The traditional “data at rest” architecture, designed for archiving static data, must be changed if data democratization is to succeed. Data was once considered a resource to be saved for use during customer interactions or while running a program. Modern firms have a far more fluid approach to data utilization, with data-literate workers making use of it in hundreds of apps, analyzing it to make smarter decisions, and accessing it from a wide variety of locations.

Furthermore, the modern, real-time nature of corporate operations necessitates a data architecture that is tailor-made for data democratization. It is hosted in multiple locations, including the cloud and on-premises, facilitating its mobility and use across numerous environments. For widespread data and AI utilization, an architecture that prioritizes adaptability, integration, agility, and security is essential. Some examples of data-democratization-friendly architectures are provided below. Also, read System Architecture: All to Know About Software & System Architecture.

#1. Data Fabric

A company can streamline data access and encourage self-service data consumption by implementing a data fabric architecture, which links data platforms to the apps where people interact with information. Using data services and application programming interfaces (APIs), a data fabric can integrate information from several sources, such as legacy systems, data lakes, data warehouses, and SQL databases, to provide a more complete picture of company performance.

For low-cost storage of massive amounts of structured, semi-structured, and unstructured data for business analytics, machine learning, and other uses, a data lake may be used within a data fabric’s data architecture.

#2. Data Mesh

A data mesh, a decentralized architecture for data organization by business area, is another method for data democratization. Application of knowledge graphs, semantics, and AI/ML technologies results in metadata discovery. The data lifecycle is then automated and orchestrated based on the insights gained. A data mesh specifies the data as a product spread among numerous repositories, each with its own domain for managing its data pipeline, as opposed to a data lake, which centralizes these tasks under one roof.

Also, in the same way that a data mesh employs functional domains to create parameters around the data, a microservices architecture couples together lightweight services. Users from all throughout the company can now access the data as if it were a standardized good. Domains could be set up for distinct departments, such as marketing, sales, and customer care, giving more control over a dataset to its creators while still facilitating collaboration.

Data fabric and data mesh architectures can be combined for even greater benefits, so avoid choosing between them. A data fabric, for instance, can fortify the data mesh by automating crucial procedures like the creation of data products, the enforcement of global governance, and the orchestration of the integration of various data products.

What Are the Challenges of Data Democratization?

The term “Data Democratization” has a nice ring to it, doesn’t it? It’s simpler to say than to actually accomplish, though. In most cases, fundamental process changes are necessary for democratizing data. Some of the most common challenges we’ve encountered on the path to data democratization are as follows.

#1. Implementing a Data Management Policy

In order to provide you with “good” data—the most relevant and clean data for your analytics in accordance with security and data policies—your firm must implement data governance. Without it, there may be inconsistencies in data availability, integrity, and access since decisions on the management of data systems will fall to the default “owners” of the system, of which there are typically multiple. 

As data requests increase, this situation can swiftly spiral out of control, with potentially devastating consequences for data quality, clarity, efficiency, and security. 

#2. Adoption and Academics

Making sure that those who have access to the data also know how to derive value from it is perhaps the most significant challenge of democratizing data. If multiple groups have access to the data but are unable to make use of it, then what is the point? If the majority of employees don’t know how to code and need to in order to access usable data, the organization will continue to face the same process bottleneck problems it did previously. 

#3. Protection of Data Integrity

Whether it’s the knock-on effect of not having data governance processes in place or just a general lack of knowledge, bad data quality can erode confidence in the data’s reliability and its value to the company. Without easy ways to clean, manipulate, and convert data, it will likely sit on a shelf and damage the firm.

How Do I Enable Data Democratization?

Here are ways you can enable data democratization:

#1. Understand Your Company’s Structure

One must first take stock of the situation before beginning anything. In other words, you need to know what kinds of technology you already have, what kinds of data streams you’ll be dealing with, and how your company is structured across teams and geographies. In certain really large organizations, it might be difficult to immediately determine who is responsible for what, how data is linked, or who the end users are. Before commencing to outline the project, it is crucial to collect and comprehend the aforementioned data.

#2. Set Your Sights on a Certain Outcome for Your Company

The next step is to define your objectives and determine how data may be used to monitor and facilitate your progress toward them. At this stage, it’s important to get input from many departments. The plan is to build a structure that caters to certain areas while still achieving a larger, overarching goal.

#3. Know Your Target Demographic

Realize that in a huge business, not everyone needs constant access to all information. Being overly general can cause people to tune out, so it’s important to anticipate the needs of employees across teams, geographies, and positions in order to provide them with the data views they need to help the company as a whole succeed. 

However, training should take into account that not every user has the same level of expertise and that some need an overview while others want to dive into the nitty-gritty. Now is the time to formulate a plan for effective data governance. Determine who should have access to private information and how that access should be granted.

#4. Create a Workshop Data Architecture Starting With These Needs

The time for brainstorming has come. Think about the infrastructure requirements for providing employees with the information they need to achieve organizational objectives. You now have enough information to make decisions about the specifics, such as the type of technology to use for data storage, the means by which information will be processed and harmonized, the nature of the information that will be displayed and specified for various user groups, and the presence or absence of the need for training programs and technology change management frameworks.

Data Democratization Tools

By using data-democratization tools, even individuals without technological expertise may collect and evaluate data. This necessitates empowering all team members with access to relevant information so they can make intelligent decisions. 

Data in an organization can be made more accessible through a variety of technologies. Here are some examples of data democratization tools: 

#1. Data Governance Tools

Data governance tools aid businesses in taking care of their data, making sure it is accurate, safe, and in line with all applicable policies and laws. However, data democratization can also benefit from data governance tools, which allow for the controlled and secure exchange of data. Collibra, Alation, and Informatica are all examples of data governance tools.

#2. Data Visualization Tools

Users can make complex data more digestible with the aid of these visualization tools. By making data accessible to non-data analysts, they can help democratize it. Data visualization tools like Tableau and Power BI are two examples.

#3. Data Catalogs

To help users discover the information they need, these catalogs provide a searchable index of all the data sets that are publicly accessible. By creating a central repository for data that is available to all members of an organization or community, data catalogs can be used to democratize data. Tools like CKAN, Socrata, and OpenDataSoft are all examples of catalogs for data.

#4. Self-Service Analytics Tools

Users no longer need help from the IT or data science departments in order to conduct basic data analysis with these tools. Data democratization can be aided by self-service analytics technologies that give consumers direct access to and control over data. 

#5. Open Data Platforms

With the help of these hubs, anyone can gain access to and make personal use of publicly available data. A few prominent instances of open data platforms are Data.gov, the Open Data Initiative, and the Open Data Portal of the World Bank.

What Are the Risks of Data Democratization?

Data democratization has many potential advantages, but it’s not a walk in the park. It is necessary to stay away from a number of issues in order to save trustworthy information that everyone in the company can use. Any company-wide data endeavor that lacks proper governance and procedures is certain to fail.

Here are a few things to keep in mind that could go wrong:

#1. Security

Data democratization poses serious risks to privacy and security if not properly managed. There is a higher chance of a data breach occurring when more people have access to it. The rise in data availability and usage increases the risk that an attacker may steal data, or that an employee will acquire or disclose sensitive data illegally. 

Furthermore, companies can lessen their exposure to this risk by putting in place and strictly enforcing stringent governance and security protocols, including user authentication and access limits. It’s also important to train staff members to use data appropriately and within regulations. The ability to use data is just as crucial as its security.

#2. Privacy 

Security and privacy are also crucial factors to think about when it comes to using data. Companies need to verify that data privacy rules like those associated with GDPR and HIPAA are being followed and that employees are taught the proper use and protection of personally identifiable information (PII). There must be safeguards in place to prevent undesirable outcomes, such as the inappropriate dissemination of sensitive information or the discriminatory use of collected data. 

Also, solutions to this problem can include hiding personal information in encrypted files or limiting who has access to sensitive information like bank records or medical records. Be sure to restrict access to this information to anyone who doesn’t work in human resources or payroll; doing so is unlikely to yield any business benefits. A company’s finances and reputation might take a serious hit if outsiders or third parties gain access to and misuse sensitive information.

#3. Ethics

Making sure that the data analysis programs are making ethical decisions is another crucial factor. To some extent, AI and ML algorithms can be used to automate analysis and decision-making; but, as these technologies become more widespread, it is important to assess whether or not they are bringing any bias into the process. 

Growing access to free AI tools has already shown us that algorithms may be programmed to produce decisions that run counter to a company’s core beliefs. Organizations should establish and communicate to workers transparent policies about the acceptable use of company data.

What Is the Future of Data Democratization?

Recent advancements in generative AI, such as GPT-4, show that data will continue to play a more important role in our daily lives. Information should be easily accessible to anyone or any group that needs it. That’s why businesses need to figure out how to make data more widely available and usable.

Additional investments in data infrastructure, governance, and culture, as well as new tools that can facilitate data analysis and collaboration, are necessary to sustain the data literacy revolution. 

However, issues of data privacy and security will arise in tandem with such progress. Therefore, businesses will have to strike a compromise between open data policies and the requirement to safeguard private data. 

Naturally, those who put money into data democratization and data upskilling will have a higher chance of success than those who don’t. According to the findings of the State of Data Literacy Report, 67% of data and business professionals agree that companies that train their employees with new data-related skills are better prepared to weather economic downturns. 85% of respondents also said that nations that invest in data literacy abilities will outperform those that do not. 

Bottom Line

In conclusion, data democratization ushers in a new era in which corporations operate more efficiently. Any company that adopts it must have strict controls in place to ensure the best data handling. Employees need to be taught how to effectively interpret and act upon the data in order to propel the company forward. Users with no technical background can access data and get insight, which is a win for everyone involved in this evolution. 

Data democratization is a relatively new idea, so more research is required to determine its full effects across industries. However, optimists believe that technology will alter how businesses make decisions by giving workers access to all layers of collected data and allowing them to glean insights for future actions.

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Reference

• amplitude.com
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