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CHECKLIST 2022

Six Steps for Minimizing


Risk with Modern Data
Governance
By David Stodder
Six Steps for Minimizing Risk with
Modern Data Governance
By David Stodder

D
‌ ta governance has always been important
a
for minimizing risk, but never more so than Minimizing risk with modern data governance:
now. Today, organizations of all sizes want
to collect, integrate, access, and share volumes of 1 Modernize data governance strategies,
data from diverse sources to drive data science, policies, and frameworks
strategy development, process optimization, and
daily operational decisions. The digital transforma- 2 Empower data stewards with autonomous
tion of applications and processes is accelerating governance capabilities
data growth and heightening its importance.
3 Modernize data catalogs to drive
In TDWI research, 84 percent of organizations comprehensive and proactive governance
surveyed say that data governance is extremely
important, with 13 percent calling it moderately 4 Centralize governance policies to overcome
important.1 Nearly all of those surveyed (94 silos and ensure compliance
percent) regard modernizing data governance
as an opportunity to solve an array of problems 5 Aim for continuous governance via tight
in data collection, integration, and access. integration with workflows and curation
Regulatory adherence is often at the top of the list.
Organizations must comply with regulations such 6 Reduce governance risks in cloud migration
as the European Union’s General Data Protection and hybrid multicloud environments

1
Unless otherwise noted, survey results are from 2021 TDWI Best Practices Report:
Modern Data Governance, online at tdwi.org/bpreports.

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Regulation (GDPR), the California Consumer Privacy Data governance has never been easy. Organizations
Act (CCPA), and similar laws. Additional industry- face a variety of challenges in making it effective,
specific regulations demand governance to minimize continuous, and appropriately restrictive. In
data exposure risks. addition to keeping up with changing data privacy
regulations, these challenges include:
Organizations need comprehensive and up-to-date
policies, rules, and enforcement practices to guide • Data growth and diversity, which require
how people and applications collect, access, share, governance scalability and drive the need for
and protect sensitive data, including personally automation
identifiable information (PII), to comply with
regulations. Policies and rules are vital to business • Data silos that fragment data governance
stakeholders’ understanding of their responsibilities oversight
for the data.
• Democratization of data and analytics, which
One of the keys to governance is data lineage puts pressure on organizations to expand data
documentation and tracking. With data lineage governance and balance those requirements with
capabilities, organizations have visibility into data users’ interests in self-service functionality
life cycles and the person responsible for the data
from its initial collection through transformation, • Maintaining data governance during
reporting, analytics (including data science), and cloud migration and in hybrid, multicloud
external sharing. With data volumes growing, data environments
lineage tracking and other important processes
for data quality, profiling, and validation require • New data governance risks that arise as data
techniques such as AI and machine learning (AI/ML) science grows and dashboards and applications
and automation to keep pace. are augmented with data-rich AI

Although regulatory compliance is a major focus, This TDWI Checklist Report discusses six steps for
it is not the only data governance concern. Many minimizing risk through modern data governance.
organizations see governance as providing a The report examines the role of automation for
framework for improving enterprise-wide data streamlining governance, supporting critical data
quality, data findability, and standards for how stewardship, and enabling organizations to achieve
individual users and teams transform, enrich, and continuous protection even as data grows, moves,
use data in reports, dashboards, and data science. and changes.
Governance can help organizations minimize risks
by establishing policies and using technologies
to improve data quality, reduce unnecessary data
duplication, and improve efficiency and repeatability.

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Governance committees should articulate policies


Modernize data and oversee the creation of an inventory of sensitive
1 governance strategies, data and records, which the organization can
document in an enterprise data catalog. Governance
policies, and frameworks policies typically describe what people need to do
to gain authorized access to protected data and the
The heart of data governance is in developing the organization’s guidelines for proper use and sharing.
right policies and frameworks to prevent people The policies should make clear why the rules are
and applications from misusing or inappropriately important to the organization, explain the risks
sharing data sets that contain sensitive information, of not following them, and provide references to
most importantly PII, but potentially financial applicable regulations. It is helpful if governance
and other proprietary information. In the words committees define metrics for assessing compliance
of a principal data engineer at an energy company success and set out how to monitor adherence.
interviewed by TDWI: “Data governance is necessary
not only to comply with legal commitments but to Accountability and ownership are critical
protect the information we are obligated to keep components of any data governance strategy.
secure.” The head of digital solutions at a financial Someone needs to own the data. Data owners are
services company interviewed by TDWI added: often senior team members, typically from the
“Data governance enforces a discipline around business, who take responsibility for the data but
data to transform an organization, be it for growth, may give the day-to-day responsibility to data
efficiencies, or privacy and compliance.” stewards. In a hybrid, multicloud environment,
the owner may be responsible for the data on
Corporate executives should champion data one or more on-premises and cloud platforms.
governance and provide high-level support. In Accountability and ownership are important for
organizations with a chief data officer (CDO), this bringing compliance into daily processes rather
executive can take a leadership role. Data governance than leaving it as a high-level enterprise initiative
fits the CDO’s enterprise mandate for increasing that employees might ignore. In TDWI research,
and protecting the value of data assets, including 46 percent of organizations surveyed say that
upgrading data quality. convincing employees to adhere to governance
policies is challenging.
To develop a data governance framework and
determine appropriate rules and policies, At the same time, organizations should make an
organizations need to form a governance effort to avoid creating an unwieldy data governance
committee or center of excellence (CoE). Such a bureaucracy; 45 percent in TDWI research say that
committee should bring together executives and keeping data governance bureaucracy lean and agile
managers from business, IT, data science, and other is a challenge. Committees should try to address
stakeholder functions affected by the policies. concerns consistently across the organization and
Overall, the committee should address governance resolve conflicting policies and disputes about data
within the context of objectives for improving the ownership. Organizations must always consider
organization’s protection and stewardship of the how to make data governance policies easier to
data so it is treated properly as a critical asset.

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follow, more automated, and less intrusive. Finally, However, TDWI finds that many organizations
governance is not a “one-and-done” project; the struggle with data stewardship and regulatory
committee must meet periodically to assess whether compliance when it comes to data access and use;
the current policies are up-to-date and effective for 40 percent of organizations surveyed say that trying
minimizing risk. to complement governance with data stewardship is
one of their leading challenges.

With user populations, data volumes, and


data-source diversity rising, organizations need to
Empower data stewards
2 with autonomous
modernize data stewardship rather than rely on the
status quo (which often involves manual practices
governance capabilities and inconsistent communication about policies).
Reliance on legacy practices makes it difficult for
For effective data governance policies and data stewards to oversee compliance with data
frameworks, organizations need data stewardship. governance rules as well as address related issues
In many organizations, data stewards have an such as data quality.
established role: overseeing data quality processes,
managing metadata and master data, and guiding Data misuse occurs with legacy business intelligence
users to data that is fit for purpose. In some (BI) and data warehousing systems, certainly, but
organizations, data stewards have an enterprise even more vulnerable are newer cloud data lakes and
role, but often they are administrators, developers, analytics sandboxes. These often have inadequate
analysts, and data engineers who take on data governance controls and poor documentation about
stewardship roles dedicated to a specific business data lineage, data inventories, and what users are
function, process, platform, or system. Indeed, doing with the data. Additionally, data exposure
organizations often struggle to identify the right risks exist when data is in motion through data
personnel who are able to add the important role of pipelines and during extract, transform, and load
data stewardship to their “day jobs.” (ETL) processes. Along with compliance, users may
not address data quality issues fully, leading to errors
Data stewards’ subject-matter expertise is the in downstream analytics and dashboards. Without
data itself: how it is defined and modeled; its proper tools, data stewards have little visibility
lineage, ownership, and usage; how data elements into these systems for potential data misuse and
relate to reference and master data; and removing governance problems.
governance, security, and access constraints. Thus,
data stewards are well positioned to understand the Fortunately, tool automation is maturing,
risks of not having comprehensive, up-to-date data empowering data stewards to scale critical data
governance that effectively addresses a spectrum of governance oversight as well as providing visibility
interrelated concerns. to improve data quality, classification, and
documentation. TDWI research shows strong interest
Data stewards should be involved in (if not lead) in data governance automation. Solutions range from
efforts to comply with data privacy regulations. tools that use automation to reduce manual work

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for routine tasks (such as updating data definitions


and metadata) to autonomous systems that use
Modernize data catalogs
AI/ML to uncover patterns and data relationships 3 to drive comprehensive
for improving data quality and providing fit-for-
purpose recommendations. and proactive
Enterprise data catalogs with autonomous
governance
capabilities, for example, could use AI/ML to
An enterprise data catalog can play a central role
examine metadata and other available knowledge
in minimizing risks through more effective and
about data use to discover the top users of particular
automated data governance. A catalog collects
data sets or sources. This deeper and more complete
metadata and other information about how data
repository of knowledge about the data can provide
elements are defined, modeled, and related. It
contextual insight into data lineage, such as who
also can document where the data is located.
has ownership, why data sources are important,
Enterprise data catalogs are essential to overall data
and which reports, analytics, and applications
management and data-driven applications in many
depend on which sources. This resource could
ways, including making it easier to improve data
offer fuller documentation about ETL and data
quality, encouraging reuse and collaboration, and
enrichment processes.
facilitating users’ location of data collected from
diverse sources.
When data sources change, the AI/ML-infused data
catalog could automatically inform data stewards,
As noted above, data stewards can use an enterprise
who could then ensure that dependent users and
data catalog to guide users to trusted and governed
applications are informed and prepared. For example,
data. Rather than rely on manual governance and
data stewards could locate and communicate with
communication of rules, organizations can enable
business SMEs to review and approve changes to
a modern enterprise data catalog to apply rules and
column descriptions, metrics, or calculated values.
policies automatically at the point of data use. This
This would ease change management. In addition,
offers an improvement over top-down, IT-driven
identifying the top users would enable organizations
enforcement that often leads to development of
to reach out to these SMEs to act as data stewards
shadow systems that skirt IT governance oversight.
and lead compliance efforts for their group.
Shadow data silos are one of the biggest challenges
to data governance rules enforcement.
Organizations should evaluate modern tools
that streamline data stewardship. In addition
Automation and the infusion of AI/ML has
to automation and AI/ML, some tools provide
modernized enterprise data catalogs. Automation
easy-to-use dashboards for improving (in
enables organizations to replace traditionally
particular) business-side data stewards’ visibility
manual tasks such as populating the catalog,
into compliance status, risk tracking, and metrics.
classifying metadata, and removing duplicates. It
By reducing time and effort, autonomous data
can surface conflicts for data stewards and SMEs to
stewardship capabilities can help organizations meet
resolve, and keep the information accurate and up
scalability challenges and improve data governance
to date. AI/ML-driven automation allows enterprise
consistency across the enterprise.

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data catalogs to scale up to handle large volumes being used—can draw on the strengths of a modern
of diverse and changing data and to manage tasks enterprise data catalog. Data lineage tracking is
autonomously. Some enterprise data catalogs use increasingly difficult because data elements might
AI/ML algorithms to parse large sets of data to have come from an API, a data lake, a spreadsheet,
extract metadata automatically. These algorithms a BI report, or a data warehouse. Modern enterprise
can infer missing data, determine data types, and data catalogs offer tools that automate discovery
uncover relationships between data elements. This and documentation of data lineage, including noting
builds the catalog automatically under the guidance missing information and using AI/ML to suggest
of data stewards and SMEs. the possible lineage. Some tools provide dashboards
that enable data stewards and SMEs to visualize data
Modern enterprise data catalogs can play an active lineage and track the data’s life cycle. Having smarter
role in improving users’ collaborative experiences and more automated data lineage documentation
through proactive, AI/ML-driven recommendations and monitoring is critical to ensuring sensitive data
and shared knowledge. With these advances, protection and effective data governance as data
organizations can use the enterprise data catalog grows and becomes more diverse.
as the hub for autonomous data governance.
Responding to governance audits and advising
A modern enterprise data catalog aids governance in users of risks. With accurate inventories and data
many ways. Here are three key areas: lineage information, enterprise data catalogs can
help organizations maintain a complete audit
Knowing what data you have and where it is. trail of the data, which is essential for responding
The first step in data governance is to inventory to governance audits. Organizations can use the
data assets. To adhere to data privacy regulations, catalog’s resources to develop and maintain reports
organizations must locate and classify sensitive showing compliance with data privacy regulations.
data such as PII; 43 percent of organizations Autonomous capabilities in modern data catalogs are
surveyed by TDWI regard this step as a significant also able to warn users when certain data sets house
challenge. As data volumes rise, manually sensitive content. Automation is essential as the
documenting the location of high-volume data number of users and workloads increases.
in thousands of tables with hundreds of columns
becomes daunting. Modern enterprise data catalogs
can automate inventorying, tagging, and classifying,
as well as data profiling and quality assessment.
Centralize governance
Through the training of ML models, modern catalogs
can identify content patterns that indicate PII or
4 policies to overcome
other sensitive data that systems need to protect silos and ensure
from unauthorized access.
compliance
Monitoring and tracking data lineage.
Today’s diverse and distributed data environments
Understanding, monitoring, and documenting data
present governance challenges that affect regulatory
lineage—that is, where the data comes from, where
compliance as well as other governance objectives
it is now, who is accountable for it, and how it is

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such as improving data consistency, quality, and ease inconsistency; they want to monitor and audit
of use. Data silos and the resulting need to move data the effectiveness of data governance across
between systems can increase data integration and the enterprise.
governance costs and create exposure risks.
An enterprise data catalog is important to holistic
In TDWI research, 38 percent of organizations data governance because it provides a centralized
surveyed cite distributed data silos as one of their source of knowledge about the data, its lineage,
biggest governance challenges.2 Each silo’s data its location, and who is accountable for it. Modern
owners often set up narrow governance policies; enterprise data catalogs automate collection of
without continuous oversight, rules are applied metadata from distributed silos, including data lakes
inconsistently to workloads. Across the organization, that contain diverse structured, semistructured, and
governance policies become both redundant and unstructured data types. They can crawl metadata in
conflicting. Narrow policies fall out of date when it both on-premises and cloud-based data systems.
becomes difficult for part-time data stewards to keep AI/ML in modern enterprise data catalogs can
up with data changes manually and users add new provide automated discovery of business glossary
data from different sources. This creates delays and terms to improve classification of data and mapping
complexity when users in finance or data science, of related metadata.
for example, have projects that call for cross-domain
access or single views of data held in silos. Along with enabling holistic data governance, an
enterprise data catalog can make it easier to gain
Data silos are often due to established legacy cross-domain visibility into the data and access
systems still in production, including older data to it to develop single views of all relevant data.
warehouses and data marts. However, the biggest AI/ML can enable automated discovery and
driver of growth in data silos is the democratization surfacing of proactive recommendations to provide
of self-service data and analytics; 52 percent of stewardship and accelerate users’ data exploration.
organizations surveyed by TDWI say that this trend
presents one of their biggest governance challenges.3 Self-service data visualization, analytics, and
Many organizations do not have good visibility into collaboration are vital to organizations, yet
data silos; they do not know what self-service users organizations have to balance self-service with data
are doing with the data and how they may be governance. Holistic, centralized data governance
sharing it. resources such as an enterprise data catalog make
it easier to achieve the right balance and avoid the
These issues are behind the growing interest in downsides of data silos. Data stewards will have a
holistic data governance, where most or all of more complete resource for guiding users to trusted
the organization is governed at an enterprise data. Autonomous data stewardship capabilities
layer above silos. Key objectives are to make data in enterprise data catalogs can embed automated
governance leaner, more consistent, scalable, and constraints in applications that inform users about
easier to maintain. Organizations seek to centralize sensitive data so they avoid risks of misuse and
policy management to reduce duplication and governance exposure.

2
2020 TDWI Best Practices Report: Evolving from Traditional Business Intelligence to Modern Business Analytics, online at tdwi.org/bpreports.
3
Ibid.

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of governance oversight. AI/ML-driven automation


Aim for continuous can support the strategy of “policy as code”—that is,
5 governance via tight governance constraints embedded in applications
and workflows so users receive guidance as they
integration with interact with data assets.

workflows and curation Automated and continuous governance fits with


adoption of frameworks such as DevOps, MLOps, and
Data—and the demands upon it—grow and change.
DataOps for orchestrating continuous, collaborative,
Organizations are engaging with customers,
and integrated development and delivery at
consumers, and partners across new channels,
scale. DataOps focuses on the development and
creating additional data sources that could include
orchestration of data pipelines and improving
PII and other sensitive data. Democratization of
end-to-end integration of commonly disconnected
analytics and data consumption is broadening the
processes for data quality improvement, data
spectrum of users, data use cases, and workloads,
transformation, enrichment, and governance.
putting new stress on data preparation and quality
Automated or autonomous capabilities (using AI/ML)
processes. Data architectures are changing as
allow organizations to fit governance with the scale
organizations seek greater agility and continuous
and speed objectives of Ops frameworks.
application development and delivery; many are
adopting newer paradigms such as cloud-based con-
Continuous governance as part of end-to-end data
tainerization and data sourcing via APIs.
life cycle integration aligns with data curation, which
looks beyond static inventory and management of
To keep up, governance must also be adaptable,
data to focus on increasing the data’s value. Essential
scalable, and continuous. Through governance
to data curation is governance and protection of
committees, organizations should revise rules and
data as an asset throughout its life cycle, from
policies created for traditional BI applications and
creation and sourcing through preparation and use.
data warehouses and update roles and respon-
Curation steps include ensuring the data’s quality,
sibilities to ensure accountability. Committees
validity, integrity, authenticity, and fitness for
should encourage community collaboration by
purpose. Agility is critical in data curation to support
crowdsourcing information about data sets and
use cases ranging from financial planning and
discovering where issues may exist that modernized
performance management to predictive analytics and
governance policies and processes could solve.
AI/ML development.

Monitoring must adapt to changes in data life cycles


An enterprise data catalog plays a central role in
and provide continuous visibility into workflows to
data curation by recording information about data
prevent data misuse and expose data quality issues.
sets and improving user collaboration and data
An enterprise data catalog can provide a focal point
set selection. Organizations can use it to anchor
for automated monitoring of data usage (that is, who
continuous, automated data governance throughout
is accessing data, when, how often, and why) and
the data curation life cycle.
data asset creation; organizations can use the catalog
to manage metrics for measuring the effectiveness

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work once it resides in the cloud. An enterprise


Reduce governance risks data catalog with AI/ML pattern matching provides
6 in cloud migration and deeper visibility into data usage, including showing
who is using it most frequently and how.
hybrid multicloud
environments Data lineage analysis, which is a capability of
modern enterprise data catalogs, can reveal
complete data life cycles, including the downstream
Organizations are shifting data management to the
use and consumption of the data. This can clarify
cloud, which brings significant cloud data migration
dependencies, which is key to making change
from legacy on-premises data platforms to cloud
management easier once the data is migrated.
data lakes and data warehouses, often onto multiple
Data lineage analysis gives organizations a better
cloud providers’ platforms. Data governance cannot
understanding of the governance rules that apply
be an afterthought during cloud migration. Although
to the data and its use. The analysis can help
organizations show increased confidence in the
organizations understand what data they cannot
security of cloud platforms, TDWI research reveals
move due to localization rules—that is, requirements
a significant percentage (29 percent) still regard
that certain PII or other sensitive data stays resident
access control, security, and governance in the cloud
in its country of origin.
to be a major challenge.4 Even more (45 percent)
are concerned about regulatory compliance and
Cloud storage enables organizations to create
protecting sensitive data.5 Many also cite continuing
massive data lakes that mix different data sources
problems with data trust due to data quality and
and types, often resulting in inconsistent (or
consistency issues.
nonexistent) governance. Organizations need to
reduce governance and security risks in cloud data
Given the scale and speed of data that many
lakes. Automated governance is critical to matching
organizations are collecting in the cloud, automated
the scale and speed of data streaming into data
and autonomous (AI/ML-infused) governance is
lakes. Organizations should ensure that policies are
critical. Organizations should establish continuous
relevant and in place for AI/ML and as well as other
data governance monitoring in data pipelines
analytics workloads using cloud data lakes.
and ETL or ELT processes so they are protecting
data when in motion, not just at rest in its
Finally, 67 percent of organizations surveyed by
target destination.
TDWI say it is a priority to improve governance
across hybrid multicloud environments.6 Beyond
Organizations need to ensure that data governance,
the difficulties of knowing where the data is and
quality rules, and standards fit their new
monitoring its use, such environments make
environment and workloads. Not all data needs the
production of governance audits and reports
same governance; organizations need to determine
complicated. Location-independent enterprise data
what policies and rules apply to the data they are
catalogs are helpful for inventorying and auditing
migrating and whether existing governance will

4
2021 TDWI Best Practices Report: Modernizing Data and Information Integration for Business Innovation, online at tdwi.org/bpreports.
5
2020 TDWI Best Practices Report: Evolving from Traditional Business Intelligence to Modern Business Analytics, online at tdwi.org/bpreports.
6
2021 TDWI Best Practices Report: Modernizing Data and Information Integration for Business Innovation, online at tdwi.org/bpreports.

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data across multiple platforms and creating a


single hub for centralizing governance policies and
About our sponsor
monitoring compliance. Tools integrated with the
catalog can provide users with alerts about new or
updated policies; automated constraints embedded
in applications and workflows can guide users as they
alation.com
access data, whether the data is located on premises
or in one of multiple cloud platforms.
Alation is a leader in enterprise data intelligence
solutions, including data search and discovery,
data governance, data stewardship, analytics, and
digital transformation. Alation’s initial offering
A final word is a popular choice in the data catalog market.
Thanks to its powerful behavioral analysis engine,
Minimizing data governance risks involves human inbuilt collaboration capabilities, and open
collaboration, streamlined processes, and modern interfaces, Alation combines machine learning
technologies. This TDWI Checklist Report has with human insight to successfully tackle even the
identified six steps ranging from updating policies most demanding challenges in data and metadata
and frameworks to unleashing the power of AI/ML to management. More than 280 enterprises drive
drive automated monitoring as well as autonomous data culture, improve decision making, and realize
and proactive governance. Data stewards play a business outcomes with Alation including AbbVie,
central role in making governance successful and American Family Insurance, Cisco, Exelon, Fifth
reducing risks. Tools and platforms such as an Third Bank, Finnair, Munich Re, NASDAQ, New
enterprise data catalog can make their jobs easier Balance, Parexel, Pfizer, US Foods, and Vistaprint.
and allow organizations to scale up data stewardship
to meet challenges such as new types of workloads Headquartered in Silicon Valley, Alation was named
and big and fast-moving data. to Inc. Magazine’s Best Workplaces list and is backed
by leading venture capitalists including Blackstone,
Training is vital for data governance and quality. Costanoa, Data Collective, Dell Technologies, Icon,
Most organizations surveyed by TDWI regard it as an ISAI Cap, Riverwood, Salesforce, Sanabil, Sapphire,
important part of improving trust in the data to make and Snowflake Ventures.
governance education part of training. Organizations
should make training the starting point for building For more information, visit alation.com.
a culture that encourages good practices, guides
users to avoid data misuse, and does not overlook
governance requirements. Organizations should
invest in tools and platforms that support agile,
proactive governance that ensures protection and
quality without taking the focus away from reaching
business objectives.

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About the author About TDWI Research


David Stodder is senior director of TDWI Research provides industry-leading research
TDWI Research for business and advice for data and analytics professionals
intelligence. He focuses on providing worldwide. TDWI Research focuses on modern data
research-based insights and best management, analytics, and data science approaches
practices for organizations and teams up with industry thought leaders and
implementing BI, analytics, data practitioners to deliver both broad and deep
discovery, data visualization, performance understanding of business and technical challenges
management, and related technologies and methods surrounding the deployment and use of data and
and has been a thought leader in the field for over analytics. TDWI Research offers in-depth research
two decades. Previously, he headed up his own reports, commentary, assessments, inquiry services,
independent firm and served as vice president and and topical conferences as well as strategic planning
research director with Ventana Research. He was the services to user and vendor organizations.
founding chief editor of Intelligent Enterprise where
he also served as editorial director for nine years. You
can reach him by email (dstodder@tdwi.org), on
Twitter (@dbstodder), and on LinkedIn (linkedin.
com/in/davidstodder)
About TDWI Checklist Reports
TDWI Checklist Reports provide an overview of
success factors for a specific project in business
intelligence, data warehousing, analytics, or a related
data management discipline. Companies may use
this overview to get organized before beginning a
project or to identify goals and areas of improvement
for current projects.

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