Tales from a Master Data Management Road Trip

 

March 17, 2010 1:30 – 2:30 pm

 

Art Garanich

Jaime Fitzgerald
Architects of Fact-Based Decisions™

2010-3-17 Enterprise Data World Presentation

1

Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

2

Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

3

Introduction : What Are We Going to Cover Today?
 

Today, we would like to:

§ Introduce ourselves § Share our experiences on the “Journey of MDM Transformation” § Share the lessons we’ve learned – what worked well, what didn’t § Answer questions you may have § Encourage others to start their own transformation!
2010-3-17 Enterprise Data World Presentation
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Who Are We?

Art Garanich

Jaime Fitzgerald

Architects of Fact-Based Decisions™

§Private label credit card

bout My Company

issuer §Subsidiary of Bridgestone Firestone

§Boutique strategy consulting

firm focused on fact-based decisions §Takes a holistic approach to turning “data into dollars ”
§13 years in Management

§25 Years in Technology

About Me

§Focus on legacy modernization §Enjoys metaphors and parenting

Consulting §Focus on the strategic value of data, and helping companies profit from it §Enjoys cycling and parenting
5

2010-3-17 Enterprise Data World Presentation

Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

6

Before our Journey , the Data Environment at CFNA was “ Messy ”
CFNA’s data environment was not actively managed…causing pain and tension in many places
   

Our Legacy Data Environment

Prior to our MDM Transformation, we faced: § Multiple platforms § Numerous locations of data § Limited documentation of:
 

– – – – – – –

Data locations Data elements Relationships between elements Business rules Business purposes & users of data Data flow Existing documentation not always utilized

§ No holistic view of our customers § Extremely time-consuming to pull new information § Significant tension between business users, analysts, and IT staff

T h is p re se n ta tio n is a b o u t o u r jo u rn e y to “ a b e tte r p la ce ”
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2010-3-17 Enterprise Data World Presentation

E x a m p le s o f th e T e n sio n “ B a ck T h e n ”

r data, systems, and product features are holding us back!”

Sales and Marketing

Analytics Team

Operations Functions

s ofWhen I talk to customersbutscroll through 12to obtainto find thethe data!” …then I do “ dollars in new value… I it took forever screens and clean info I need

2010-3-17 Enterprise Data World Presentation

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Examples of the Tension “ Back Then ”

§So Users didn ’ t trust they kept demanding more new reports existing reports . . . §They created “homegrown” reports with “surprising resu

Executives de - prioritized fact - based decisions

An unhealthy relationship developed between users and IT …

have data to measure customer “value.”“new pricing….” something theywant ’t do?” , I need to “I THINK we should try Before I can tell you what I can from it Why bother asking for

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An Ongoing Journey Towards Improvement

Our adventure got underway via three main phases…
1 2 3 … and to a Suffering Led … Never to Interest Which Led to Desire for A Cure …- Ending Journey Towards Better MDM … “How do we get there?” “What is MDM?”
“Should I care?” “Feeling better every day”

Phase of Journey

State of Informati on Landscape :

MDM Knowledge: Low

There Is a Cure!

MDM Function Setup

Data Situation: Messy

Get Me to It!

MDM Governance in Place

Many Pain Points…

Where To?

“Show me the Results!”

Results of Current State :

Brittle Systems “We can’t change that!” Complexity Increasing “Here’s a workaround.” Data Quality: Low

List of Pain Points Growing

“Targeted” Application to Gain:

§More confident decisions §More effective system modernization Let’s Stop the Bleeding … §Reduced operational risk §More transparency …And Start with the Basics

2010-3-17 Enterprise Data World Presentation

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Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

11

Key Landmarks

Since beginning this journey, we passed four key landmarks…
Key Landmark : What it was like :

me problems were SO painful and SO immediate, we needed to apply MDM principles “surgically” even before we had a fully f 1 r example: building our customer profitability database, we encountered and solved data quality issues and created a “safe

Stopping the Bleeding 2

Getting Buy - in & Alignment 3 Building the 4

§A few early wins on analysis increased the appetite for even better information §The organization recognized the role of MDM in improving information AND agility §The IT department shifted towards more strategic imperatives

§We built a new MDM function to define and institutionalize key best practices §Established our policies, standards, governance, and stewardship roles § reached a fork in the road: lots of new knowledge built, where should we begin apply MDMWeFunction

Turning the Corner “ Targeted Application ”

§The list of pain points is long: we realized that we can’t “boil the ocean” §We ” to applying to developed a “targeted approachData WarehouseMDM capabilities analytics team §Our first successful case: a new for the growing

2010-3-17 Enterprise Data World Presentation

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About “ Stopping the Bleeding ”
We had tried many times to fix data-related problems, without addressing the root issues well…

You can TRY and FAIL to stop the bleeding . . .

If the skills , experience , and best practices are missing . . .

New SQL instance with This preserved existing problems with data and created consolidated data

Created self-serve data access via Intranet

Led to more misuse of data (right data, wrong use)

“Home-grown data stores”

Data security issues arose

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Our First Landmark : “ MDM Critical Care ” to “ Stop the Bleeding ”
We needed to stop the bleeding before we could resolve the systemic patterns causing them…

“ The Downward Spiral ”
1. .

Symptom s (Systemi c) Systemic Issue :

Symptoms (Immediat e)
Immediate Issue : “ Toxic Data ”
A Systemic Problem w / Data Systems .

Diagnosis

Frequent symptoms point to a larger

Request for Change to Systems / Data High Stakes Analysis Underway . . .

Prescriptions

2.

Workaround Solution Data Quality Low Change the Way you Manage Data .

Manage data as distinct from systems or processes,

3.

Increased Complexity

Strategic Growth At Risk 1. Short-term: bleeding stops: deal with the more fund 2. Once stop the bleeding

2010-3-17 Enterprise Data World Presentation

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Our Second Landmark : Gaining Buy - In
We took the time to “connect the dots” in ways that built buy-in for an MDM function…

Drivers of Buy - In
Strategy for Growth

How Buy - In Was “ Formalized ”

Required more analytics

Required better systems, new products, etc.

§Creation of MDM function §Establishment of governance Value of Analytics Increases
§High profile “wins” §Desire for more Dissatisfaction with Status Quo
2010-3-17 Enterprise Data World Presentation

§Skills and knowledge built and acquired

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Our Third Landmark : Building the MDM Function
Establishing the function included creation of 1) the MDM Team itself and 2) the data stewards…
§Responsible for optimizing the benefits of data at the enterprise level §Reviews and advises on MDM consequences of IT/Business changes §Builds & Maintains MDM function, including: 1)Guiding principles 2)Essential capabilities 3)Documentation

MDM Team (Enterprise Level)

1 . Sales & MarketingOperations 2.

3 . Finance

4 . Analytics 5 . Information Technology

Data Stewards (Department Level)
§Responsible for optimizing the benefits of data at the departmental level §Responsible for ensuring standard use of data according to MDM principles and standards §Ensures clear business requirements with regard to data elements, usage, business rules, and communication with IT
2010-3-17 Enterprise Data World Presentation
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Our Fourth Landmark : Turning the Corner to “ Targeted Application ”
To get value from our investment, it was essential to move from theory to execution…

Selection of Opportunities Pain-Point Identification Prioritization of Pain Points

Initiative-Level Prioritization Resource Allocation

Application of MDM Principles Implementation standards and frameworks Tools

Integration with SDLC (System Development Lifecycle) and Project Management Standards

2010-3-17 Enterprise Data World Presentation

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Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

18

Execution
 

At first, we were overwhelmed with choices . . .

 

Where to start? What destination first?

Our L acy D ta E eg a nvironm ent
Prior to our MDM Transformation, we faced: Multiple platforms § Numerouslocations of data § Limited documentation of:
§
– – – – – – –

Data locations Data elements Relationships between elements Business rules Business purposes & users Data flow Existing documentation not always utilized

§ No holistic view of our customers § Extremely time-consuming to pull new information § Significant tension between business users, analysts, and IT staff

2010-3-17 Enterprise Data World Presentation

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Our Solution : “ Work Backwards from the Goal ” of ROI on MDM Programs

Ultimate Goal = Return on Investments in MDM Programs

How Do We “Bridge this Gap”?
Precondition : Application of MDM Principles in High ROI Ways . . .

Applied Case 1

Case 2

Case 3

Case 4

2010-3-17 Enterprise Data World Presentation

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“ Unpacking the Steps ” on the Pathway to ROI . . .
Ultimate Goal = Return on Investment
Precondition s:
1. Commitment Organizational Commitment
 

Understand Problems it Solves, and Therefore the Value Proposition Understand Concepts, Principles, Application, and High-Level Techniques to Measure Value

2. Governance

Develop Governance Capability : “ How do we manage this? ”
 

Principles Best Practices

 

Governance Framework Data Stewardship Roles and Processes

3. Selection

Capability to Select & Execute on the Best Opportunities
 

Pain-Point Identification Prioritization of Pain Points

 

Initiative-Level Prioritization Resource Allocation

4. Execution

Apply MDM Principles & Best Practices to High - Impact Use - Cases
Implementation Standards and Frameworks Tools

Integration with SDLC (Solution Development Lifecycle) and Project Management Standards

2010-3-17 Enterprise Data World Presentation

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Challenges at Each Stage
Stage (Precondition) 1. Organizational Commitment Challenges

Solutions and Learnings

Without broad buy-in, implementation will beUse specific examples to help people “messy” understand the problems MDM solves The linkbetween MDM and business results Solve a problem right away, even if this is not obvious to everyone. Some people happens before a full-fledged program NEED specifics to believe in it… exists There is a lot to learn Align governance with OTHER key 2. Develop Governance Capability: “How do We Governance requires ongoing commitment areas where standards already exist Governance alone doesn’t unlock results Link with Knowledge Management Manage This?” Maximize cross-functional breadth 3. Capability to Select & Execute on the Best Opportunity Look for projects with the biggest business benefit AND most likely to benefit from MDM “Bundle” pain points into the projects that would solve them Some organizations try to jump right to this A good “toolkit” is essential 4. Apply MDM Facing specifics improves the Principles & Best Practices point! (the myth of turnkey application) to High-Impact Use-Cases Even WITH preparation, this is a tough frameworks and standards also Getting results maintains momentum transition to make
 

Users often report pain points without broader context The business case for solving individual pain points can be ambiguous

2010-3-17 Enterprise Data World Presentation

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Our Decision : To Focus our Limited MDM Resources on Building a Better Data Warehouse …
The Data Warehouse will provide consolidated data which enables better strategic decisions Benefits of the Data Warehouse
Category High Stakes Decisions Efficiency of Analysis Current State Decisions often made with imperfect data

Future - State Benefits with Data Warehouse Better data (more accurate , relevant and holistic) will enable better decisions Increased speed of analysis More frequent updates available Fewer resources needed per analysis Analysts will not be accessing operational data, reducing operational burden
 

Analysis is time consuming Invol vement from IT necessary to source data
 

Combined data will provide holistic Integration of Incon sistent data limits view Sources ability to use multiple data of customer and business sources Ad - hoc Security use of data exports is Data Warehouse data will mask sensitive not optimal customer data Analysts access operational Standard source will limit ad - hoc usage Analysts will not be accessing operational data, causing some risk to systems data

Data Clarity

Data sources are not documented Incon sistent fields across data sources

Greater clarity about data thanks to:  Well documented sources  Data management standards  Data dictionaries

2010-3-17 Enterprise Data World Presentation

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Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

24

Lesson Learned : Value of Buy - in
 

Buy-in from the Executive team was essential to moving forward

2010-3-17 Enterprise Data World Presentation

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Lesson Learned : An Iterative Approach Maintains Momentum
By taking an iterative approach that mixes building and applying capabilities, we’ve found it easier to maintain momentum and buy-in…
 

Building Capabilities

Measureable Benefits Unlocked

Applying Capabilities §Target next opportunity §Get value §Measure value

↑ $

More Capabilities §Target high ROI application §Get value §Measure value §Communicate and promote

↑ $

Capabilities

Time and Money Invested
2010-3-17 Enterprise Data World Presentation
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Lesson Learned : Importance of Capability Building
We had to put in place the basic infrastructure and skills before we could move forward
 

Governance Policy , Standards , and Procedures

MDM Team

Data Stewards

Develop Basic Knowledge

Develop Basic Skills

2010-3-17 Enterprise Data World Presentation

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Table of Contents
1 Introducti
on

2 Overview : Why Did We Embark on This
Journey?

3 Key Landmarks on the
Journey

2010-3-17 Enterprise Data World Presentation

M MD on of ti y ma ne or ur sf Jo an Tr

4 A Crucial Turning Point : Moving to
Execution

5 Lessons
Learned

6 Results : What Makes it All
Worthwhile

28

A Better Pattern : Then vs . Now

Old Pattern
“ The D ownward Sp iral ”

Via a New Pattern Long Journey
Business Results Pain Points

1.

Request for Change to Systems / Data

2.

Workaround Solution

MDM Function
Business Goals

ROI

Learnings
3. Increased Complexity

2010-3-17 Enterprise Data World Presentation

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Results : Enterprise - Level Progress !
Our strategy is working, analytics has become a strength, IT is more nimble, and profits are up!
 

Area of Progress :

§Growth strategy has gained traction, with new capabilities driving growth in card sales volume, fee rev Strategy §Confidence in organizational capacity for continued growth is up

g with construction of customer profitability analytics, the team has unlocked tens of millions of doll cs team has Analytics person to six (and from a team to an official function!) grown from one

§We have begun Legacy Modernization phased §Our MDM capabilities

legacy modernization that will enable more strategic growth will be essential to this modernization initiative

§Despite the economic crisis, we achieved record sales and profits this year §WhileProfit Growth regulatory uncertainty has increased this year, our analytic capabilities are helping us to r

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Continue the Journey with Us !
Our journey continues…we hope to stay in touch with you, our “fellow travelers,” to learn from each other and improve results!
 

Art Garanich

Jaime Fitzgerald

Architects of Fact-Based Decisions™

garanichart@cfna . com 216 - 362 - 3418

jfitzgerald@fitzgerald analytics . com 917 - 846 - 3759

2010-3-17 Enterprise Data World Presentation

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