Aerospace and defense firms generate an overwhelming amount of data, which is stored both internally and externally. With the sheer volume of data only increasing, the procurement and supply chain function is no exception in looking toward advanced analytics and business intelligence to better leverage their mountain of data.
The nature of these mechanisms is reliant upon continuous availability of data from multiple sources. Companies are investing to support the integration of data in various structured (databases, data feeds etc.) and unstructured (social media, emails, text etc.) forms.
A basic assumption of all analytics initiatives is that the data is relevant, complete and accurate. Given these expectations of quality and the volume of data, it is essential that aerospace organizations have a strong data governance program in place.
A system of decisions and accountabilities for information-related processes that is executed according to agreed-upon models of who can take what actions, with what information, when, under what circumstances, and using what methods.
– Data Governance Institute
If it seems obvious to have a detailed plan of who does what and when with the data, then think again. The results of a recent study found that 68% of companies in America said their decisions have definitely been hindered by a lack of solid data. Further, there is no clear role on how procurement will handle current and future data governance needs. Only 15% of procurement leaders know or understand the specific presence of data governance functions within their companies.
Perhaps the most important function enabled by data governance programs is to ensure acceptable data quality levels. Standardizing data quality across the entire procurement function will certify the veracity of analysis using any approach. A recent study showed that governance programs helped increase overall data quality by 33% on average.
A good data governance program will reduce the “time to decision” for aerospace managers. From a product perspective, companies are always talking about being first to market. The same holds true for aerospace programs: the faster you can make decisions, the more financially beneficial it can be.
Other benefits of aerospace data governance programs include:
- Increasing the value of your existing data by identifying better ways to utilize it
- Ensuring better compliance
- Streamline processes
- Decrease the cost of data management by integrating disparate data sources
- Standardize policies and procedures related to data
- Identify quality, availability, or security issues with your existing processes
- Improve transparency through dissemination and creation of awareness
- Increase revenue through cost savings and more informed decision-making
Removing manual processes can also improve data quality because it reduces the risk of errors. Fortunately, now there are tools for aerospace managers that can allow their teams to transition away from cumbersome Excel sheets and PowerPoints. Aerospace software such as CAPSTONE can pull data from various sources all into a central location that displays data in real time. This will save time and help ensure quality data.
Setting up a data governance program has never been more important – or easier – than it is today.