What is a data catalog

A data catalog is an organized inventory of all your company’s data assets. It doesn’t mean a data catalog stores raw data like Social Security numbers or even customer names. Instead, it stores metadata – information about the data.

So while a business analyst or a data scientist might not retrieve the specific information itself, they might learn, for example:

• The name of a dataset,
• What kind of data it contains,
• Where it’s stored,
• Who owns it or maintains it,
• When it was last updated,
• Who can access it.

Then, the user can download the dataset or query the database, as long as there are no restrictions set in place.

To serve its purpose well, a data catalog needs to be:

• Searchable – users need to quickly find what they’re looking for,
• Contextual – data needs to be properly described, for example through tags and annotations, so that users know what they’re dealing with,
• Governed – to ensure accountability, security, and compliance, among others,
• Connected – so that users can trace the data’s origin and usage history,
• Collaborative – allowing users to comment, rate, and share insights about data assets to promote shared understanding and knowledge reuse.

Why businesses need data catalogs

Current digital solutions live and breathe data. The more data a business has collected, the better the results usually are, especially when artificial intelligence and machine learning is involved.

But here’s the catch: simply having more data doesn’t guarantee precision – if it’s outdated, mislabeled, or irrelevant, it can do more harm than good. That’s why a well-managed data catalog is a necessity to ensure your data is in order.

There are also other benefits to consider:

1. Cut down time spent looking for the “right” data – a well-organized data catalog is easy to search, so that users can find what they need quickly, instead of digging through countless folders, outdated spreadsheets, or chasing colleagues for answers.
2. Reduced duplicate work across teams – everyone knows what’s in the data catalog and where to find it, so nobody wastes time recreating what’s already there.
3. Enabled regulatory compliance and better governance – by knowing exactly what data you have and who’s responsible for it, staying compliant becomes much simpler.
4. Avoiding costly data mistakes – by ensuring teams work with accurate, up-to-date information instead of relying on outdated or inconsistent sources.

Practical examples of data catalog use cases

1. Streamline report finding and usage

Reports are used across the entire organization by different teams and roles. Without clear visibility, similar or even duplicate reports often get created from scratch – wasting valuable time and resources.

A well-maintained data catalog makes it easy to find existing, trusted reports, understand their purpose, and reuse them when needed. The goal isn’t to limit reports, but to reduce duplication and make high-quality insights accessible to everyone.

2. Reduce time spent explaining data

Similarly, having a contextual data catalog helps users quickly understand what the data represents – no need to chase down teammates or dig through scattered documentation. With the right context in place, teams can trust what they’re looking at, use it correctly, and avoid duplicating or misusing existing data.

Think of it like borrowing notes from a college lecture: if the notetaker uses cryptic shortcuts, jumps between topics at random, and has terrible handwriting, no one else will be able to make sense of them. Other students will have no choice but to start over.

3. Reduce time spent tracking down the data lineage

Tracking data lineage is key not just for meeting regulations and staying compliant – it’s also about trust. When you know where your data came from, you’re more confident in using it. And if something goes wrong, you can trace the issue to its source and fix it at the root.

Moreover, understanding how data flows through your systems gives you more control and insight. For example, if you know exactly which tools, teams, or processes touched the data before it reached your dashboard, you can evaluate whether it’s still relevant, accurate, or up to date.

Business outcomes

How big of an impact can businesses expect from investing in data catalogs? First of all, they can expect more value and a much better return from existing data investments. Data is the backbone of modern digital solutions – no matter how good the design and development, a poor data ecosystem will undermine it all.

Second, a cohesive data ecosystem improves cross-departmental collaboration. When teams work with the same data, reference the same reports, and use the same KPIs, coordination becomes smoother and more effective.

Last but not least, clearer accountability and data ownership come into play. When it’s clear who is responsible for each dataset, maintaining accuracy and relevance becomes much easier. Without defined responsibility, troubleshooting may become a problem, with no one rushing to solve the issue at once.

But are there any numbers to prove all that?

Solita, a tech, strategy, and design company from Finland, has worked closely with clients to measure the tangible impact of implementing data catalogs. Here are the results:

• 80% faster time-to-market for product launches, enabled by smoother collaboration and data accessibility,
• €10,000 saved thanks to a more efficient onboarding process by reducing time spent by Senior and Mid-level employees,
• Only 10% of senior employees’ time spent monthly on guiding others, thanks to better data clarity,
• 10-25% less time spent during projects on searching for and trying to understand data,
• 3-5% of obsolete data removed, reducing storage costs and clutter.

Conclusion

Now more than ever, businesses rely on data, trusting it to lead them towards the right decisions. But as data ecosystems become more complex, managing data sets becomes a challenge, requiring time, expertise, and money to uphold its high-quality. It’s not something a business can afford to neglect – according to Gartner, poor data quality drains $12.9 million from businesses on average.

To avoid such fate, investing in a well-managed data catalog becomes a necessity. It can help you stay in control and unlock real value from your data. While it may seem like a big undertaking, getting it right sets you up for smoother operations and smarter decisions.