Roles of Data Stewards and Owners in SaaS Firms

Data stewards and data owners are two critical roles in managing data within SaaS companies. Here's the key difference: data stewards focus on the daily management of data quality and security, while data owners oversee the broader, high-level governance and alignment of data with business goals. Together, they ensure data is accurate, secure, and used effectively to drive business outcomes.

Key Takeaways:

• Data stewards handle operational tasks like maintaining data quality, enforcing policies, and managing security.
• Data owners define access rights, ensure compliance, and align data usage with company objectives.
• Their collaboration ensures data governance is both effective and scalable as SaaS firms grow.

By working together, these roles help SaaS companies reduce inefficiencies, improve decision-making, and meet regulatory requirements - all while managing vast amounts of data.

Data Governance: Ownership & Stewardship Explained || Skillweed

What Data Stewards Do

Data stewards handle the day-to-day management of data, ensuring it remains dependable, secure, and aligned with business goals. While data owners focus on strategy, stewards take charge of implementing and maintaining the systems that support these objectives. Their work centers on critical tasks like ensuring data quality, managing security, and enforcing policies.

Maintaining Data Quality and Accuracy

One of the primary roles of a data steward is to keep data accurate, consistent, and reliable across all systems. This involves monitoring data flows, spotting inconsistencies, and taking corrective actions when issues arise. They also maintain thorough documentation to ensure data assets are clearly described and easy to locate. Feedback from users plays a crucial role in refining quality control processes, and stewards regularly share key metrics with stakeholders to keep everyone informed.

Managing Data Security and Privacy

In an age where data breaches are increasingly costly - reaching an average of $4.88 million in 2024 - data security is a top priority for stewards. They work to minimize risks by classifying sensitive information, applying data minimization strategies, and encrypting data as it moves through systems. Role-based permissions, authentication protocols, and secure APIs are also part of their toolkit to block unauthorized access. Additionally, they ensure compliance with regulations like GDPR, HIPAA, and CCPA, while curating data to retain only what’s necessary, further reducing security vulnerabilities.

Creating and Enforcing Data Policies

Data stewards are instrumental in developing and enforcing policies that align with business objectives. They oversee data lifecycle management, ensuring proper retention, preservation, and disposal practices. As data volumes grow, automation becomes a necessity for managing policies efficiently. For example, Tide, a UK-based digital bank, leveraged Atlan Playbooks to automate data tagging and security processes, cutting the time required from three months to just five hours. Even with automation, human oversight remains essential to ensure accuracy and address potential biases.

Policy work isn’t just about compliance - it’s also about driving business value. As Pavel Ermakov, Senior Director and Regional Head of Data Excellence at Daiichi Sankyo Europe GmbH, puts it:

"Amidst the data deluge, one thing is paramount: trust. Trust in the pristine quality and unwavering accuracy of our data. That's why crafting a single source of truth and an ironclad data governance strategy stands as our critical mission."

What Data Owners Do

Data owners play a critical role in shaping how an organization uses its data by focusing on the strategic aspects of data management. Unlike day-to-day operations, their work involves aligning data initiatives with overarching business goals. By defining policies and overseeing data governance, they ensure that operational efforts - like those of data stewards - are well-supported and effective.

Setting Data Access and Usage Rights

One of the key responsibilities of data owners is determining who gets access to data and at what level. They set clear rules for data usage, storage, and sharing to ensure compliance with regulations. Working closely with IT teams and data stewards, they design role-based access controls that align with employees’ job functions. This includes regular reviews of permissions and maintaining audit trails to track any changes or flag potential issues quickly. These measures are essential for keeping data secure and well-managed.

Taking Responsibility for Data Assets

Data owners are responsible for maintaining data quality, compliance, and privacy within their areas of control. They oversee the entire lifecycle of data - from its creation to its deletion. This is no small task, especially when poor data costs companies an average of $12.9 million annually. A staggering 95% of businesses believe bad data negatively impacts their performance, and 77% attribute these issues to unclear ownership and accountability.

To address these challenges, data owners implement governance protocols such as regular security audits, data backup and recovery plans, and employee training programs that emphasize the importance of data protection. With 98% of companies relying on data to improve customer experiences - despite 89% struggling with data management - these efforts are critical for safeguarding data integrity and ensuring it can be used effectively.

Aligning Data Use with Business Goals

Another essential role of data owners is ensuring that data initiatives align with the organization’s strategic goals. By understanding business objectives, they identify the data that matters most and develop strategies to integrate it effectively. They also provide stakeholders with tailored insights that support key performance indicators, reduce operational silos, and promote collaboration across teams.

When data ownership is executed well, it builds trust in the organization’s data assets. This trust is crucial for making informed, data-driven decisions and avoiding the costly consequences of poor data quality. By aligning data use with business priorities, data owners create the foundation for smarter, more strategic decisions across the organization.

How Data Stewards and Data Owners Work Together

The partnership between data stewards and data owners is at the heart of effective SaaS data governance. While data owners focus on strategy, data stewards handle the practical side of managing data, making their collaboration essential for aligning operations with business goals.

Shared Responsibilities in Data Governance

Data stewards and data owners share key responsibilities that ensure both the smooth operation of data systems and alignment with broader business objectives.

• Policy Development: Data owners define high-level policies and compliance needs, while data stewards translate these into actionable processes. For example, if a data owner sets rules for customer data access, the steward ensures these are implemented through workflows and technical controls across platforms.
• Data Quality Management: Improving data quality requires ongoing teamwork. Stewards bring their hands-on insights about issues, helping owners make informed decisions about priorities and resource allocation.
• Incident Response: When issues arise, stewards assess the technical impact while owners evaluate the business risks and coordinate with stakeholders. Clear communication between the two roles is critical for resolving problems efficiently and reducing risks.

Methods for Better Collaboration

Strong collaboration between data stewards and data owners depends on structured processes and the right tools.

• Cross-Functional Teams: Committees or councils with members from different departments ensure decisions are well-rounded and represent multiple perspectives.
• Shared Documentation: Resources like business glossaries, data classifications, and lifecycle policies keep everyone aligned. Tools such as Confluence make it easy for stewards to document and share policies, standards, and guidelines.
• Regular Communication: Platforms for ongoing updates help stewards share information about governance standards, data quality concerns, and access requests. This proactive communication prevents small issues from becoming larger problems.
• Governance Champions: Appointing champions within each domain strengthens the connection between strategic decisions and operational execution. These individuals act as liaisons, ensuring governance efforts stay on track.
• Conflict Resolution Processes: Structured methods for resolving disputes over data ownership are essential. Mediation techniques like active listening and open dialogue help resolve disagreements constructively. Governance committees can provide a neutral space for these discussions.
• Digital Governance Frameworks: Flexible frameworks streamline communication across teams without adding unnecessary bureaucracy. This approach allows SaaS companies to adapt quickly to market changes.
• Stewardship Groups: Involving subject matter experts from various teams enhances the connection between strategic ownership and operational stewardship. This integrated approach strengthens overall governance efforts.

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Data Stewards vs Data Owners

When it comes to SaaS data governance, understanding the roles of data stewards and data owners is essential. These two positions work hand in hand but serve distinct purposes. Together, they create a balanced approach to managing and governing data assets effectively.

The main difference lies in their focus: data owners handle the big-picture strategy, while data stewards focus on the nitty-gritty, day-to-day operations. This complementary dynamic ensures a well-rounded governance framework.

Side-by-Side Comparison Table

This table highlights their key differences, but in practice, the roles often overlap. Effective communication between the two is crucial to avoid confusion and ensure a seamless governance process.

How These Roles Drive SaaS Success

The collaboration between data stewards and data owners is a cornerstone of driving SaaS growth. When these roles align effectively, they unlock tremendous business potential, fueling profitability and expansion.

Improving Operations and Scalability

By working hand in hand, data stewards and owners significantly enhance operational efficiency, even as organizations scale. Their shared focus on effective data governance reduces inefficiencies and ensures smoother operations. For example, organizations with robust governance frameworks report a 20-40% decrease in data errors, which directly improves data accuracy and strengthens decision-making. This isn't just about tidier spreadsheets - it leads to quicker development cycles, sharper customer insights, and lower costs.

As companies grow, maintaining high-quality data becomes critical. Better data management enables faster product development and reduces operational expenses, which is essential for staying nimble in the SaaS world. This collaborative approach ensures scalability without the burden of additional data management complexities.

Take Sallie Mae, for instance. In 2024, they faced the daunting task of managing over 500 data users and 250 terabytes of data spread across 350,000 database fields. Elizabeth Friend, their Senior Director of Data Governance, spearheaded a solution that included a stewardship program. This empowered domain experts to manage and curate data, enabling self-service analytics while alleviating pressure on centralized data stewards. The result? A scalable and efficient system that turned data from a potential bottleneck into a strategic asset.

This example highlights how clearly defined roles and collaboration can transform data into a competitive edge. In fact, effective data management can become a high-margin activity, contributing significantly to a company's bottom line.

Regulatory compliance also plays a major role in operational success. Laws like GDPR and CCPA demand rigorous data control. SaaS companies with strong governance frameworks not only avoid costly compliance penalties but also build trust with their customers. While data stewards oversee adherence to policies, data owners enforce these rules within their domains. Together, they ensure regulatory requirements are met without compromising efficiency.

When internal resources are stretched, external expertise can step in to extend these benefits even further.

Using External Services for Data Governance

External services can be a game-changer for SaaS companies aiming to refine their data governance practices. Building a comprehensive governance structure in-house often requires substantial investment in both expertise and infrastructure.

Take Optiblack, for example. This company specializes in technology and analytics services tailored to SaaS firms. They help businesses establish and scale governance frameworks that support both data stewards and owners. By focusing on clear policies, enhanced security, and collaborative workflows, Optiblack enables better decision-making and smoother operations.

Partnering with external experts simplifies the complexities of modern data governance. SaaS companies must juggle growth, data quality, security, accessibility, and compliance - all while innovating. External solutions can accelerate the process of building effective governance systems, saving both time and resources.

For SaaS firms looking to bolster their governance capabilities, services like those from Optiblack provide the technical backbone and strategic insights needed to maximize the impact of data steward and owner roles. This allows companies to concentrate on core product development while ensuring their data governance keeps pace with their ambitions.

The key to success lies in selecting partners who understand the unique challenges of SaaS environments and integrate seamlessly with existing workflows. With the right support, data stewards and owners can ensure better data quality, stronger security, and smarter decision-making across the organization.

Conclusion

The backbone of any successful SaaS company lies in how effectively it manages its most critical resource - data. Both data stewards and data owners play pivotal roles in turning this resource into a competitive edge. While data stewards focus on maintaining data quality and ensuring compliance, data owners align data use with broader strategic goals. Together, they create a foundation for scalable and profitable growth.

When these roles are clearly defined and work in harmony, the impact on business performance is undeniable. In fact, research indicates that 77% of poor business outcomes stem from unclear data ownership and accountability. This highlights the importance of the structured collaboration and responsibilities outlined earlier.

Key Takeaways

Here’s a quick recap of the essential points:

• Data stewards focus on data quality, security, and regulatory compliance.
• Data owners drive strategic alignment, accountability, and the integration of data into business goals.

To thrive, organizations need to establish clear responsibilities, foster cross-functional collaboration, and ensure leadership actively supports these roles with decision-making authority. By doing so, SaaS companies can scale effectively while maintaining strong data governance practices.

FAQs

What is the difference between data stewards and data owners, and how do they work together in SaaS companies?

In SaaS companies, the roles of data stewards and data owners are distinct yet work hand-in-hand to uphold strong data governance. Data owners take charge of setting policies, managing access permissions, and ensuring the data’s overall integrity. Meanwhile, data stewards focus on putting these policies into action, maintaining data quality, and ensuring compliance with relevant regulations.

Together, this partnership fosters a system built on trust, accountability, and smooth collaboration across teams. By aligning their efforts, data stewards and data owners help eliminate data silos, boost operational efficiency, and enable the organization to make dependable, data-driven decisions.

How can SaaS companies enhance data quality and security while scaling their operations?

To improve data quality and security as they grow, SaaS companies should focus on regular audits and continuous monitoring. These practices help spot and address potential vulnerabilities before they escalate. Adding layers of protection, such as multi-factor authentication (MFA) and adopting a zero-trust security model, is key to safeguarding sensitive information and blocking unauthorized access.

Other important measures include prioritizing data encryption, utilizing Data Loss Prevention (DLP) tools, and having solid backup and recovery plans in place to protect essential data. Compliance with standards like SOC 2, ISO 27001, and GDPR not only strengthens security but also fosters customer confidence. By committing to these steps, SaaS companies can scale their operations without compromising on data integrity or security.

Why is it essential for data owners to align data strategies with business goals, and how does this benefit overall company performance?

Aligning Data Strategies with Business Goals

Connecting your data strategies to your organization's priorities ensures that your data initiatives actively support crucial objectives like growth, enhancing customer satisfaction, and maintaining a competitive edge. This alignment allows businesses to concentrate on projects that yield clear, measurable outcomes and provide actionable insights, making decision-making sharper and resource allocation smarter.

When data owners work hand-in-hand with teams to link data efforts to strategic goals, it fosters a cohesive strategy that drives efficiency and performance. This collaboration not only streamlines operations but also equips the business to respond swiftly to shifting market demands, paving the way for stronger results and long-term success.