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John Smith
Data Scientist, USA
Cloud-Ready Data
Digital Transformation
Data Governance

Control the Cost of Vendor Data with Data Governance

Control the Cost of Vendor Data with Data Governance

Creating a successful data governance business case can be a challenge. But if you are using external vendor data within your organization, you are in an excellent position to make the case for data governance. It’s no longer only financial organizations that use external data to run their business. A large number of other industries are adopting various external vendor data sources to drive their business and market value.

However, using vendor data requires caution as it can become a very expensive practice going forward. Not only does your organization incur direct costs related to requesting the data, but it also incurs indirect costs such as exposure to vendor data policies. The potential fines, as well as reputational costs, for breaching those policies which can have a major impact on your bottom line.

When considering external vendor data, a number of questions come to mind. For example, do you really know:

  • Who is responsible for your vendor data?
  • Who is using the vendor data? And are they still using it?
  • If you are in line with the vendor’s usage policies?
  • Are you paying for data that you don’t need?

If not, data governance can help you answer all those questions.

Vendor Data: Limiting Cost

Depending on the type of vendor data, the cost structure can be different. Data companies charge per group of data element (e.g. security), per data request, or even per data field.

In order to limit costs, you have to know who in your organization is using the data, for what purpose, and if it is still relevant. Active data governance provides you with this exact information. Lineage can be a great tool to determine what reports or processes are currently using the data. When combined with a responsibilities matrix of who is responsible for this specific report or process, you can then analyze if your current usage is the optimized strategy to provide the best value to cost ratio.

Checking this information manually can be a painful and time intensive process.  Collibra eases this pain by using workflows to automate and accelerate this process from the initial analysis to the automated re-evaluation to check if the process or report is still in use.

As you bring in the cost-structure related to vendor-data providers, you can automatically determine an upfront cost impact when a new data-request is made. Based on this cost, you can require additional approval or procurement tasks before a data request actually gets approved.

Vendor Data: Controlling Risk

Non-compliance fees related to breaching data vendor’s usage policies can lead to additional operational risk and potential non-compliance fees. Keeping track of different policies, determining responsibilities, and evaluating if you are breaching any of policies related to vendor-data usage is the key to managing this risk successfully.

A true data governance platform (like Collibra) provides a platform to automatically evaluate these policies and highlight potential issues upfront. This helps your organization to manage risk and focus on creating value from your newly acquired data.

Below example shows an impact analysis for a new data request. This includes, what providers, license agreements, and policies are involved.



Control the Cost of Vendor Data with Data GovernanceGaining control over your vendor data not only provides substantial cost-saving potential, but also gives you a great driver for a successful data governance business case within your organization.

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