Data Due Diligence

Before we understand Data Due Diligence, let’s first have a quick refer what is Due Diligence.

Due diligence is an enquiry, inspect, or assessment executed to check evidence or specifics of a matter beneath attention.

For example, when we are buying something we first check e.g., it is made of which country, it’s a new or used item, it’s produced by which company, what’s the quality of the items etc. All these checks and balances come under due diligence process.

Wikipedia

‘Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.’

There can be many sub processes involved based on domains, businesses, or solution requirements.

A merger and acquisitions (M&A) process is very old process where due diligence is a must, of course when we’re merging or buying a million-dollar company, we need to make sure our decision is correct.

Referring to the M&A process, in recent era, where data has become one of the most valuable assets for an organization whenever there is merger or acquisition, both or acquiring party conduct Data Due Diligence to make sure their deal is in profit in term of data.

For example, if someone wants to buy a data-oriented company like Uber or Amazon or Facebook, the buyer will not evaluate physical assets of this company, it will evaluate data assets right.

A report based on Data Due Diligence is a Key for CDO, CFO and CEO for decision making.

Below are a few, but not limited to, processes to follow.

• Data Valuation
• Data Synergies
• Data Opportunities
• Data Risk
• Data Challenges
• Data Assets
• Data Liabilities
• Data Ownerships
• Analytical Capabilities
• Data Lineage Availability
• Data Health/ Quality
• Data Governance Practices
• Data Security and
• Privacy Practices