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Data Governance: Building a Framework for MDM

Data Governance: Building a Framework for MDM

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How to define and enforce data governance
How to define and enforce data governance

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Published by: desijnk on Jan 20, 2010
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04/24/2013

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Data Governance: Building a Framework for MDM

Aaron Zornes Chief Research Officer The CDI-MDM Institute Daniel Teachey Corp. Communications Director DataFlux

Building a Framework for MDM

Data Governance

“84% of businesses surveyed believe that poor data governance can cause: limited user acceptance, lower productivity, reduced business decision accuracy, & higher TCO”

Aaron Zornes Chief Research Officer The CDI-MDM Institute The-CDI-MDM-Institute.com a.k.a. tcdii.com

Working Definitions
Data Governance (DG) Data Governance (DG)
Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset.

Master Data Management (MDM) Master Data Management (MDM)
The authoritative, reliable foundation for data used across many applications & constituencies with the goal to provide a single view of the truth no matter where it lies.

Customer Data Integration (CDI) Customer Data Integration (CDI)
Processes & technologies for recognizing a customer & its relationships at any touch-point while aggregating, managing & harmonizing accurate, up-to-date knowledge about that customer to deliver it ‘just in time’ in an actionable form to touch-points.

Data governance is a prerequisite to efficient & effective information integration & business intelligence – two key differentiators in highly-competitive industries
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Data Governance

Strategic Planning Assumption During 2007, enterprise-level data governance will be mandated as a core deliverable of large-scale CDIMDM projects delivered via RFPs Through 2007-08, major systems integrators & CDIMDM boutiques will focus on productizing their data governance frameworks while most CDI-MDM solution providers will struggle to link business process design with process hub architecture By 2008-09, both corporate & LOB data stewards will be a common position as Global 5000 enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset.
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

CDI-MDM MILESTONE

Why Data Governance? Why Now?
Businesses have been governing data for 20+ years, however, only a rare few are doing it well today Many companies historically assigned DG to a data management group whose job is to integrate & manage data Contemporary DG challenges are far greater Break down functional stovepipes Integrate processes across the enterprise – including corporate technology, all LOBs, functional areas & geographic regions Engage all levels of management
Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing the opportunity to take a more strategic view of data governance
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Why Data Governance? Why Now? –

cont’d

Once you know what data is worth, you need to calculate probability for risk in a business processes When you understand value of data & probability of risk, you can evaluate how much to spend to protect it, manage it, and invest in adequate controls This is basis of modern underwriting – assets, risk, controls Doing this systemically requires a combination of organizational structures, business processes, & technology – a “data governance blueprint” for:
Data quality Information integration Business intelligence

© 2007 The CDI-MDM Institute

IT management must work with business leadership to design & refine “future state” business processes associated with data governance commitments
The-CDI-MDM-Institute.com

Data Governance Maturity Level
50% 40% 30% 20% 10% 0% Basic Foundational Advanced Distinctive
Source: 2006 -07 CDI-MDM Institute survey of 50 Global 5000 IT organizations

FSP Non-FSP

BASIC (“anarchy”) – App-centric approach; meets business needs only on project-specific basis FOUNDATIONAL (“IT monarchy”) – Policy-driven standardization on technology & methods; common usage of tools & procedures across projects ADVANCED (“business monarchy”) – Rationalized data with data & metadata actively shared in production across sources DISTINCTIVE (“Federalist”) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle

Overall, Financial Services Providers are leading the way for non-FSPs
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Data Governance Challenges
Adjudicating between centralized vs. decentralized data stewardship Evolving key stakeholders from “data ownership” to “data stewardship” Upgrading notion of “data” to “policy/process”
Corporate Data Steward

Data Governance In Practice
CIO Business Exec

Chief VP of VP of Data InfraAppliOfficer structure cations

Dept’l Dept’l Dept’l Exec Exec Exec

Data Governance Steering Committee

BU Data Steward

BU Data Steward

Data quality-enabled information integration is fundamental to ability to "leverage data as an enterprise asset”
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Data Governance Enables Enterprise Information Integration
Privacy Preferences Pricing Bundles Discount Policies Compatibility

Next Best Offer

Process / Policy Hub
Legacy

Upgrade/ Downgrade Shipping Approvals Eligibility

Methodology is needed to bind process steps, skills & software to produce data governance deliverables
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

“Top 5” IT Drivers
Developing architecture best practices & standards Monitoring to improve data quality Building governance infrastructure, technology & supporting organization Developing standard metadata mgmt Defining processes & business rules for ongoing governance 31% 47% 56% 46% 56% 60% 63% 47% 81% 67%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: 2006-07 CDI-MDM Institute survey of 50 Global 5000 IT organizations

Non-FSP FSP

IT organizations cannot “go it alone” – data governance experience & accelerators are needed
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Data Steward Residence & Specific Role
Developing architecture best practices & standards Monitoring to improve data quality Building governance infrastructure, technology & supporting organization Developing standard metadata mgmt Defining processes & business rules for ongoing governance
Source: 2006-07 CDI-MDM Institute survey of 50 Global 5000 IT organizations

31% 47% 56% 46% 56% 60% 63% 47% 81% 67%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Non-FSP FSP

DS is a business-oriented function – concept is embraced, active, generally project-oriented & within the BU (not within IT ) – clearly, business is stepping up more on a project basis to take responsibility for the data
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Survivorship of Trusted Sources
User-originated master data update Rules engine of legacy system Not applicable Rules engine of enterprise CRM suite Rules engine of data integration tool
0%
Source: 2006-07 CDI-MDM Institute survey of 50 Global 5000 IT organizations

13% 13% 16% 19% 23%
5% 10% 15% 20% 25%

Rules themselves are in many different places & need to be extracted out into horizontal layer & then replicated back to individual units – this is “true data governance-driven MDM” in the long run
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Basic Data Governance Key Steps
Establish formal data governance process that maps to the business architecture Differentiate between data stewardship & ownership while defining, staffing & communicating Define & continuously measure adequate, agreed-upon data quality metrics Design/select, & implement appropriate architecture components to improve data quality Empower & hold accountable “up stream” data stewards for their domains
Formalize the treatment of “data” as a corporate asset
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Recommendations
Data governance is difficult – enterprises need to embrace a blueprint for success IT management must understand impact of data governance on enterprise information integration plans
All businesses embrace political structures Data governance is necessary to support politics of both centralized & distributed information integration Without firm commitment to corporate data governance, BU-specific data governance projects run risk of becoming “yet another master data mart”

Savvy IT organizations begin with data stewardship & business metadata definition
Data governance is a key enabler for data quality-driven information integration – IT management should get “on message”
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Aaron Zornes Founder & Chief Research Officer The CDI-MDM Institute
The-CDI-MDM-Institute.com a.k.a. www.tcdii.com

Authoritative Independent Relevant
© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

Data Governance: Building a Framework for MDM

Daniel Teachey DataFlux

About DataFlux

Recognized as a leading provider of data quality and data integration solutions
– Intelligent Enterprise Readers’ Choice Award, 2006 – CRM magazine “Market Winner” in Data Quality, 2006 – CTO and co-founder Scott Gidley named an “Innovator to Watch in 2006” by Infoworld magazine

Acquired by SAS, the world’s largest privatelyowned software company, in 2000.

Data Quality is the Foundation

Master Data Management
– Unify your data to create a single view of enterprise information.

Data Governance
– Enforce business standards and rules across the enterprise.

Compliance
– Meet enterprise, industry and government regulations.

Data Management Landscape

Corporate Data Governance

Enterprise Data Maturity Model

Our Approach

Solutions Accelerators
Customer Data Product Data

Data Quality Integration Platform
Metadata Discovery Data Profiling Data Quality Data Integration Data Visualization Data Monitoring Data Enrichment

Data Monitoring: Key for Data Governance

Create business rules and enforce them in batch or real time
– Business rules can be simple…
• If address is invalid, email an admin)

– …or more complex
• If loan-to-value ratio in table A is .8 or above and table B does not show a PMI, then email an admin and enact a corrective routine

Data monitoring options:
– Audit – Measure data quality over time – Trend – Monitor new data as it enters a data store – Alert – Notify user or application when user-defined rule is broken

Data monitoring is critical for data governance initiatives
– Support the codification and reuse of business policies – Provide a way to ensure that data meets business standards

Data Governance Success
Mortgage Provider

Business Issue

Existing data quality controls developed and maintained by programmers. Rules duplicated across different programs and different groups. No central repository of rules. Very difficult to control internal processes. Meet standards for data quality across the enterprise. Implement reusable data governance controls to monitor data movement, business data quality, accounting, etc. Established a “use once, reuse repeatedly” model to centralize all business rules for data quality. Monitored internal sources to validate the quality of the business processes used to run the business. Generated better reports to federal and industry agencies.

Mission

Results

Data Governance Success
Chemicals Company

Business Issue

Enforce business policies for product and inventory classifications (reduce manual rework and execute automatic consistency checks) Consolidate data to a “master data” source. Needed to analyze, improve and validate data quality along the way Meet or exceed data quality goals across the enterprise. Implement reusable data governance controls to monitor data movement, business data quality, accounting, etc. Established a “use once, reuse repeatedly” model to centralize all business rules for data quality. Monitored internal sources to validate the quality of the business processes used to run the business. Generated better reports to federal and industry agencies

Mission

Results

Monitor Results

Data Governance Dashboards

Data Governance: Building a Framework for MDM
Aaron Zornes Chief Research Officer The CDI-MDM Institute Daniel Teachey Corp. Communications Director DataFlux

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