Navigating Data Challenges: Why Fragmentation and Weak Governance Undermine Trust
Businesses increasingly depend on insights to stay competitive. But what happens when your data lives in disconnected systems—and no one knows who owns what? Two major challenges are holding organisations back: fragmented data landscapes and the lack of a clear governance framework. Left unchecked, these issues not only impact compliance and trust, but also create real costs.
The Fragmentation Dilemma: When Your Data Doesn’t Add Up
Data fragmentation happens when information is stored across disconnected systems, platforms, and business units. According to a 2024 comparative study on digital maturity in logistics, 74% of Dutch SMEs cite siloed systems as a barrier to operational efficiency and reliable forecasting (ResearchGate, 2024).
This leads to:
- Inconsistent reports across departments, eroding confidence in performance metrics.
- Duplicated manual work to align numbers and verify inputs.
- Compliance gaps, as critical data may fall outside regulated processes.
A case from the Dutch logistics sector highlights this. A regional distribution company struggled with forecasting and inventory management due to misaligned systems between warehousing and customer operations. After implementing a unified planning and analytics platform, forecast accuracy improved by 34%, and operational bottlenecks were significantly reduced (de Vries, 2024).
The Strategic Void: Missing Governance Means Missing Control
Data governance isn’t just about policy—it’s about control, accountability, and strategy. A lack of clear governance creates:
- Audit and compliance failures due to poor traceability
- Risk of data breaches, especially with decentralised ownership
- Decision-making delays, when no one knows which data is accurate
According to Capgemini Research Institute, only 27% of European companies have a fully implemented data governance model as of 2025. Yet those that do are twice as likely to trust their data for executive decisions.
A real example comes from the financial sector: in 2024, a large Nordic retail bank was fined €3.1 million after inconsistent reporting on customer affordability metrics. Internal documents showed conflicting dashboards between branches, with no centralised audit trail. The EU regulators cited weak governance as a contributing factor (European Banking Authority, 2025).
Four Steps to Regain Control
- Create a Governance Playbook
Define policies, responsibilities, and ownership. Establish data stewards and automated compliance checkpoints. According to Capgemini, organisations with clear accountability frameworks report 32% faster regulatory reporting.
- Unify Data Platforms
Consolidate data across departments using shared infrastructure. A European transport network saved €1.4M annually after merging CRM, ERP, and supply chain analytics into a centralised dashboard (Forrester, 2025).
- Invest in Data Quality Monitoring
Tools that detect duplicates, missing values, and anomalies reduce manual clean-up. This prevents silent errors from cascading into reports.
- Align Strategy and Data Ownership
Governance should support—not block—business goals. Build KPI frameworks and data definitions in sync with strategic priorities.
Event Storm - From Data Chaos to Clarity
Conclusion: Governance Isn’t Just a Compliance Box—It’s a Business Enabler
Europe’s path to data maturity doesn’t run through more tools—it starts with accountability and trust. Fragmentation and weak governance don’t just create friction; they erode confidence and expose organisations to unnecessary risk.
But companies that unify their data and define ownership don’t just improve accuracy—they unlock the full power of insight. When data is structured, validated, and strategically aligned, it becomes more than a resource. It becomes an asset.
