Data today is not just a means of operation but has become a form of strategic asset, playing a core role in the ability to expand, innovate and create long-term value for businesses. For investors, the level of maturity in data governance is gradually becoming an important indicator to assess the level of digital transformation readiness, sustainable profitability and risk control of an organization.
Unlike the traditional view that data is a by-product of business operations, today’s pioneering enterprises have been building a data management system as an infrastructure pillar – equivalent to finance, human resources or operations. Data collection is necessary, but only when data is effectively managed and strategically exploited, it can truly create economic value. That is the essence of data management: a system of policies, processes and technologies to ensure that data is protected, controlled and effectively serves business goals.
From an investment perspective, this opens up three important aspects. First, businesses with a good data governance system will have the ability to make decisions quickly, accurately and with a clear quantitative basis - a prerequisite for survival and growth in a highly competitive and constantly changing environment. Second, as the volume of data increases, data governance becomes a protective shield against legal and reputational risks, especially in the context of increasingly strict regulations on personal data protection and national data. In Vietnam, compliance with Decree 13/2023 on personal data protection is not only a legal requirement but also a measure of the maturity level in corporate governance. Finally, good data governance allows businesses to expand into new business models based on data analysis, thereby increasing the ability to generate revenue from data, beyond the initial core activities.
Many large corporations today have established the role of Chief Data Officer (CDO) as a member of the senior executive team, reflecting the importance of data as much as finance or strategy. In addition, investments in Master Data Management (MDM), Data Catalog, Data Governance Platform and automated data analysis tools are considered essential investments, no longer ancillary technical costs. In fact, businesses with a systematic data management system often have higher EBITDA growth rates (*) than the rest of the group in the same industry, and are able to attract capital more easily thanks to transparency and good internal control.
A common barrier today is fragmented data, asynchronization between departments, and a lack of validation processes – which makes it easy for businesses to fall into a state of “having data but no information”. Investors need to pay special attention to data integration and standardization capabilities in M&A deals, as this is a factor that directly affects the ability to create synergies after the merger.
More importantly, in a world where data is a competitive resource, effective data governance has become the new investment potential indicator. From controlling the data lifecycle – from creation, use, storage to disposal – to cross-border compliance, a well-thought-out data strategy is a prerequisite for businesses to scale without sacrificing security or efficiency.
In the short term, investors may not see direct cash flows from data management activities. But in the long term, data maturity is the clear differentiator between a sustainable business and a business that is vulnerable to change. Data management is no longer about technology – it is about overall management capability, vision, and commitment to long-term value.
(*) EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial ratio that measures a company's profits before deducting interest, taxes, depreciation, and amortization expenses. It helps investors assess the profitability of core business operations without being affected by financial and tax factors.