Why is digital governance important?

  • Digital governance is a set of policies, processes and regulations that guide and control the use of digital technology in an organisation or society. It is a highly inclusive concept, covering data governance, IT governance, digital government, digital economy governance, social media governance and other aspects.
  • Digital governance has a transformative impact on society by improving government services, driving business innovation and growth, empowering individuals, and fostering a more inclusive and connected digital world.
  • Digital governance is an organic integration of digital technology and governance, as this concept is advocated by major organisations and institutions, more and more people are beginning to participate in the research and practice of digital governance.?

Good digital governance justifies the investment in the hardware, software time and training required to implement digital technologies and digital is no longer just a technological enabler. To answer the question of why is digital governance important, we first need to have a deeper understanding of the connotation and social impact of digital governance.

What is digital governance?

Digital governance is a set of policies, processes and regulations that guide and control the use of digital technology in an organisation or society. It is an organic integration of digital technology and governance.

The core feature of digital governance is the data interoperability of the whole society, comprehensive digital collaboration and cross-departmental process reengineering, forming a governance mechanism that “speaks with data, makes decisions with data, manages with data, and innovates with data”.

Digital governance refers to the set of policies, processes, and regulations that guide and control the use of digital technologies within an organisation or a society. It is a highly inclusive concept, covering data governance, IT governance, digital government, digital economy governance, social media governance and other aspects.

Every federal agency should have an enterprise-wide governance structure that provides both high-level strategic direction and oversight, as well as day-to-day management and coordination of digital initiatives.

The transformative digital governance

Why is digital governance important? The answer might lie in the fact that digital governance has a transformative impact on society by improving government services, driving business innovation and growth, empowering individuals, and fostering a more inclusive and connected digital world.

Governments

Digital governance initiatives such as online tax filing systems, electronic health records, and digital permit applications streamline government services. For example, Estonia’s e-Residency program allows individuals to establish and manage businesses online, reducing bureaucratic hurdles and boosting entrepreneurship.

Open data initiatives, such as data portals that provide access to government datasets, promote transparency and accountability. For instance, the UK government’s Data.gov.uk platform provides free access to various government datasets, enabling citizens, researchers, and businesses to analyse and use the data for various purposes.

Governments use data analytics to make informed policy decisions. For example, Singapore’s Smart Nation initiative leverages data analytics to optimise public transportation routes, reduce congestion, and improve urban planning based on real-time data insights.

Public-private partnerships and innovation hubs foster collaboration between governments, tech companies, startups, and academia. For instance, Dubai’s Future Accelerators program pairs government entities with innovative startups to co-create solutions for urban challenges such as transportation, healthcare, and sustainability.

Also read: 5 data governance roles and responsibilities

Companies

Companies use digital governance frameworks to implement automation, IoT devices, and AI-driven processes to improve efficiency. For example, manufacturing companies use IoT sensors to monitor equipment health, predict maintenance needs, and optimise production schedules.

Financial institutions implement robust cybersecurity measures, data encryption protocols, and compliance frameworks to protect customer data and comply with regulations such as the Payment Card Industry Data Security Standard (PCI DSS).

Tech companies like Google, Apple, and Amazon innovate rapidly by leveraging digital governance principles to drive product development, improve user experiences, and launch new services. For instance, Amazon’s AWS (Amazon Web Services) cloud platform enables startups and enterprises to innovate and scale globally.

Also read: Amazon AWS owes $525mln amid cloud-storage patent war

Digital governance strategies include social media management, customer relationship management (CRM) systems, and personalised marketing campaigns. For example, companies use social listening tools to analyse customer feedback on social media and tailor products or services to meet customer needs.

Individuals

Individuals benefit from digital governance through access to online education platforms (e.g., Coursera, Khan Academy), telemedicine services, e-commerce platforms, and government service portals.  For example, telemedicine apps allow individuals to consult with healthcare providers remotely, improving access to healthcare services.

Sal Khan, founder of Khan Academy

Social media platforms, online communities, and crowdfunding platforms empower individuals to share ideas, collaborate on projects, and raise funds for causes they care about. For instance, platforms like Kickstarter and GoFundMe enable individuals to launch creative projects or raise money for charitable purposes.

Digital governance frameworks protect individuals’ privacy and security by enforcing data protection regulations, implementing secure authentication methods (e.g., two-factor authentication), and educating users about cybersecurity best practices.

Initiatives such as digital literacy programs, community Wi-Fi networks, and affordable internet access plans promote digital inclusion.  For example, libraries and community centres offer free digital skills training workshops to help individuals gain digital literacy skills.

Digital governance framework for reference

Digital governance is an important part of modern governance, as this concept is advocated by major organisations and institutions at home and abroad, more and more people begin to participate in the research and practice of digital governance.

Good Governance Improvement is an organisation that has developed an easy-to-use digital governance framework with five pillar tools that help us gain a deeper understanding of digital governance and its implementation.

Digital governance framework

The digital governance framework includes strategies with clear objectives and appropriate resources, review and oversight of finances, accountability for the performance of digital strategies, risk management that provides effective oversight, proper management of change and effective assurance of system robustness and reliability.

Stakeholder engagement by design

Stakeholder engagement by design refers to managing the relationship between service users and staff users, taking a human factor design, and deploying clinical and health professionals. And finally, extend these measures to a wider range of stakeholders.

Data security and protection

While data security and its protection may sound like a cliche, it is a part of the digital society that cannot be ignored, and data governance is also an integral part of digital governance.

It includes the governance of information, especially privacy information, regulations on the secondary use of data, including research data and population data, data security compliance and cross-departmental cooperation, and fundamentally the overall protection of network security.

Ethical decision making

This includes ensuring that the quality of data is reviewed to ensure that the information boards receive to make strategic decisions meets broader ethical requirements and does not contain discrimination, as well as accountability and transparency in decision-making. Digitalisation will translate into strategic implementation to achieve its environmental, social and governance (ESG) goals.

Integration and partnership working

This mainly includes the combination of system-level governance with leadership and accountability and cross-system or regional interoperability of digital solutions. What’s more, collaboration with academia and experts from other sectors is also crucial.

Monica-Chen

Monica Chen

Monica Chen is an intern reporter at BTW Media covering tech-trends and IT infrastructure. She graduated from Shanghai International Studies University with a Master’s degree in Journalism and Communication. Send tips to m.chen@btw.media

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *