Championing and Nurturing a Data Governance Center of Excellence Lisa Loftis Senior Vice President Intelligent Solutions, Inc.

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1 Championing and Nurturing a Data Governance Center of Excellence Lisa Loftis Senior Vice President Intelligent Solutions, Inc. Lloftis@IntelSols.com

2 Agenda Data Governance Defined Data Governance Parts and Pieces Getting Started Data Governance versus BI COE 2

3 Data Governance In Many Companies Well, technically anarchy is a form of governance 3

4 Governance in the Corporate Information Factory Governance Infrastructure Management Tactical BI Center of Excellence Operational BI Operational Data Store Strategic BI Data Warehouse Governance is the set of people and processes for Internal controlling Data and coordinating Data the CIF environment. Integration and Aggregation Metadata Program strategy External Executive oversight and support Data Operational Total Data cost of ownership Data Prioritization Marts Service agreements BI Delivery Workbench Quality Management Application Management Metadata Management Courtesy of Intelligent Solutions, Inc. and BI Research 4

5 Governance Explored Data Governance The exercise of authority for data related matters. The organizational rules, decision rights, and accountabilities of people and systems as they perform information related processes.* Data Governance enables an organization to leverage data as an enterprise asset. As such, it affects all areas of the enterprise including lines of business, departments and geographies. *The Data Governance Institute 5

6 Governance Futures* Governance will become a mainstay of large CDI/MDM projects by 2006 Through 2006 and 2007 major systems integrators and CDI/MDM boutiques will focus on productizing their data governance methodologies By , data stewards will become a common position both in IT organizations and business as enterprises formalize this function amidst increasing recognition of information as a corporate asset *CDI/MDM Roadmap The CDI Institute 6

7 Governance Futures Gartner Magic Quadrant BI expenditures to increase 9.5% through 2010 Deployments expand to include scorecards, dashboards, predictive models Enterprise BI Breadth Depth Quality Completeness Operational intelligence right time BI Reducing latency increases value 7

8 Benefit of Reducing Latency Business Value Value lost Data latency Business event Analysis latency Decision latency Data ready for analysis Information delivered Action taken Action time or Action distance Time Source: Richard D. Hackathorn, Bolder Technology, Inc. Right time BI can reduce latency and time to action to increase business value 8

9 Data Governance Data Governance is a Program 9

10 Contrast Program and Projects Characteristics of a project One-time Specific perspective May not require architecture Short-term focus May not realize benefits of standards and reuse for new items Characteristics of a program On-going Broad perspective Requires architecture Long-term focus Realizes benefits of standards and reuse Includes several projects Strategy is essential 10

11 Why Implement Data Governance? Data is an asset Reduce cost of ownership Business value Data Strategy Facilitate compliance 11

12 Governance Drivers Desire to align strategies at a corporate level Need to align the flow of information to support both business unit strategy and enterprise view Data content integration Recognition and resolution of duplicate data, conflicting data, etc. Primarily business issues Data storage integration Element names, edit rules, data types, codification, etc. Primarily technical issues 12

13 Without Governance - Business High cost to business units in productivity losses Large amounts of time spent collecting data for manual integrated view Large amounts of time spent reconciling disparate results and individual BU data with Corporate view Business decisions made on incomplete view Visibility to true customer profitability and timely exposure Understanding of position in industry or portfolio incomplete Summary level data with no detail to support data without manual efforts Drill down to details on alert factors difficult Time from business event to actionable information not optimum Wait time for critical IT projects lengthened and costs increased 13

14 Without Governance - IT Each project re-invents the wheel Duplicate data integration and data quality processing Duplicate requirements gathering Duplicate data storage Redundant access and development tools Inconsistent data provisioning, security and privacy Lessons learned in one project are not shared with others Intricacies of integration and data quality lost Tool expertise not shared Basic learning process repeated over and over 14

15 Without Governance - IT Leads to short cuts, inconsistencies and incompatibility Causes silo d and incompatible systems throughout Wasted efforts to reconcile differences Does not provide enterprise view data is department asset Results in overall high fulfillment costs for IT Does not minimize TCO Redundant spending on data provisioning technologies 15

16 COE Organizational Fit* Reports to business management 36% Part of information technology group 38% Part of the finance group 5% Part of the marketing group 10% Virtual COE without solid reporting 10% lines Don t know 2% *Business Intelligence Competency Center, a SAS publication 16

17 COE Funding Mechanisms* Chargeback for services to users 21% Cost Center 64% Other 5% Don t Know 10% *Business Intelligence Competency Center, a SAS publication 17

18 COE Metrics* Business user satisfaction 67% Availability of information 60% Accuracy and reliability of information 57% Staff costs 41% Decision Making Speed 38% Software costs 36% Have not measured success 12% *Business Intelligence Competency Center, a SAS publication 18

19 COE Disadvantages* No disadvantages 36% Overlapping and unclear responsibilities 31% Perceived to be a bottleneck 17% No tangible improvements to business users 12% Support is not timely 12% Other 10% *Business Intelligence Competency Center, a SAS publication 19

20 Agenda Data Governance Defined Data Governance Parts and Pieces Getting Started Data Governance versus BI COE 20

21 Governance Controlling, directing, or strongly influencing actions and conduct Entails collaboration across projects Ensures business alignment Provides cross-functional consistency Identifies and mitigates risks Promotes increasing value Requires business and IT commitment and participation Consists of many initiatives, crosses enterprise boundaries 21

22 Effective Senior Sponsor Active executive sponsor - imperative Sponsor must understand drivers Sponsor must understand benefits Sponsor must understand effort to adopt 22

23 Effective Senior Sponsor Active executive sponsor - imperative Accountability for quality is essential Must have organizational quality plan Organizational goals must be set according to quality plan Sponsor must be measured on quality success 23

24 Effective Senior Sponsor Active executive sponsor - imperative Accountability is essential Ability to migrate organization is required Must influence management team Must inspire line organization Must communicate quality initiatives To IT To business community To GDI and GIO COE s 24

25 Governance Structure CEO Steering - Arbitration Marketing Finance Service Sales IT Stores Stores Marketing Stores Stores Finance Dpts Committee Definitions, quality metrics, process changes, policies, compliance, funding, systems changes approvals Stores Stores Sales/Service Full Time Governance Organization Governance Group Drive definitions and quality metrics, monitor quality, work with business data stewards, manage metadata Marketing Data Steward Finance Data Steward Sales/Service Data Steward IT Stewards Business Data Stewards Daily decisions, root cause analysis, systems changes, architecture compliance 25

26 Roles and Responsibilities Steering not involved on daily basis But must make final resolutions or decisions Performs arbitration and steering of data governance Reports to the CEO Committee must sign off on everything (e.g., policies, quality metrics, etc.) Allocate funding and system change approvals. Solve most issues and disagreements if not, then present to Steering Committee for final resolution May be combined with Steering Committee if small company 26

27 Roles and Responsibilities Full-time Governance organization are the real drivers and coordinators for all involved Can report anywhere not necessarily IT e.g., Finance or Operational Planning are options Monitor and enforce governance policies If not enforced, they must go to Committee for help/support Work with various projects to ensure data governance procedures and policies are understood and followed 27

28 Roles and Responsibilities Business Data Stewards are spread across organization May only be part time Are the daily go-to people that come up with Straw models, definitions, policies, etc. Work with various groups to determine root causes of data quality problems and other governance issues Their findings and recommendations are presented to the Committee for approval 28

29 Agenda Data Governance Defined Data Governance Parts and Pieces Getting Started Data Governance versus BI COE 29

30 Implementing Data Governance Determine corporate data strategy Identify guiding principles Assess current state for each guiding principle Detail desired state for each guiding principle Develop metrics for each guiding principle Identify required tools and technologies Develop organization structure Define processes Develop communication plan 30

31 Common Guiding Principles Architecture Structuring data stores and designing data movement between those stores for accessibility and scalability Metadata Capturing and providing access for data lineage, definitions, quality metrics, transformations, etc 31

32 Common Guiding Principles Data access and delivery Providing data to business units in a timely and business user friendly method Information management Developing and maintaining enterprise data models Security, privacy, compliance Securing data, complying with reporting and regulatory requirements, restricting data access, and monitoring information use 32

33 Common Guiding Principles Stewardship Establishing formal data steward roles in the organization Data Quality Establishing and monitoring quality metrics and implementing continuous improvement Data as an asset Recognizing that data is a strategic asset with policies and controls 33

34 Common Processes Quality Improvement Establish quality targets, investigate problems, root causes, suggest remediation, monitor, implement solutions Model Management Develop subject, business and technology models, synchronize with physical data stores, incrementally add/change models 34

35 Common Processes Data Definition Establish enterprise definitions, id LOB definitions for preservation, develop policies, id process changes required Prioritization Submit projects for quality improvement, determine impacts and business value, add to priority queue, approve, decline, or send back for rework 35

36 Common Processes Metadata Management Enter metadata into repository, determine new sources and develop meta model and repository extensions, determine permissions and monitor usage, change meta data Data Criticality Determine grading system for data elements, impacts and handling for graded data and methods to change ratings Access ID data owners, determine access, process access requests, submit for arbitration 36

37 Example Process Metadata Management Metadata Process IT Stewards Data Governance Group Business Data Stewards Data Governance Committee Process begins Augment meta model for new data Work with IT steward to identify data elements determine Meta Model requirements New Source? Yes No New User? Yes Permissi on? No Grant access to metadata for new user Yes Work with business owner or data steward for access permissions Yes Permission No Yes Work with IT to identify data elements and determine ETL ETL Process Format Help? No Yes ETL? Interface Changes? Yes No User changes? Yes identify user interface changes for adding/ accessing new data No No No Requester changes, adds metadata in repository change add metadata in repository review metadata add/ change report Permission Yes No Work with data stewards to determine solution Exit Process No Arbitrate Arbitration Yes Load data into Metadata repository Change metadata user interface for access to new data add / verify new data added to metadata repository Exit Process No Problems Yes Solution? Work with requester to resolve problems No changed definition? Yes No Data Definition Process 37

38 Communication Plan Specify type of communications Newsletters Status meetings Web Postings Define purpose of each communication Determine frequency of each communication Identify communication recipients Coordinate centrally 38

39 Communication Plan Need commitment - not just compliance Commitment to the enterprise view Willingness to compromise Most effective when performed by non-team members Executives talking with each other Sponsor talking to other business people Change management Communication helps anticipate changes 39

40 Summary Data Governance requires executive sponsorship Data Governance is a program not a project Data Governance involves many areas of the company Data Governance policies and procedures must be enforceable 40

41 Agenda Data Governance Defined Data Governance Parts and Pieces Getting Started Data Governance versus BI COE 41

42 COE Definitions ISI Definition - COE is the set of people, processes, and technologies for promoting collaboration and the application of best practices Methodology, best practices, education and training, support services, technology awareness Formal cross functional team(s) with clearly defined roles, responsibilities, and processes who drive BI through the enterprise* Develops overall strategic plan and priorities for BI, defines the requirements (including data quality and governance) and assists in applying the insights to the business** *The Business Intelligence Competency Center: A SAS Approach, SAS Press ** Gartner Group 42

43 BI COE Common Components High Potential for overlap with data governance if all components are encompassed into the BI COE Governance Quality Management COE Getting Data In COE Getting Information Out COE Application & Use 43

44 Data Governance COE Coexistence Shared Governance Shared Steering: Arbitration Funding Priority Architecture, ETL, Model Management, DBA, SSA, Tools, IT Stewards Data Management Stewardship, Quality Improvement, Metadata, Definitions, Security-Privacy- Compliance, Matrix responsibility for shared functions GDI COE Technical Metadata, DW Quality - ETL Shared Toolsets Business Metadata, Mart Quality, Access Privileges, SPC GIO COE Access, Tools, User Support, Analytics 44

45 Data Governance GDI GIO Coordination 45

46 46

47 Books The Business Intelligence Competency Center: A SAS Approach Gloria J. Miller, Editor SAS Press ISBN Integration Competency Center: An Implementation Methodology John Schmidt and David Lyle Informatica Corporation ISBN Mastering Data Warehouse Design Claudia Imhoff, Nick Galemmo, and Jonathan Geiger John Wiley & Sons ISBN Corporate Information Factory Second Edition W. H. Inmon, Claudia Imhoff and Ryan Sousa John Wiley & Sons - ISBN

48 Books Building the Customer Centric Enterprise: Data Warehousing Techniques for Supporting Customer Relationship Management Claudia Imhoff, Lisa Loftis, and Jonathan G. Geiger John Wiley & Sons - ISBN Building the Data Warehouse W. H. Inmon John Wiley & Sons - ISBN The Data Warehouse Lifecycle Toolkit Ralph Kimball, L. Reeves, M. Ross, W. Thornthwaite John Wiley & Sons - ISBN Data Strategy Sid Adelman, Larissa Moss, and Majid Abai Addison-Wesley ISBN

49 Books The Data Model Resource Book (Volumes 1 and 2) Len Silverston John Wiley & Sons ISBN & Improving Data Warehouse and Business Information Quality Larry P. English John Wiley & Sons ISBN Data Warehouse Project Management Sid Adelman and Larissa T. Moss Addison Wesley ISBN

50 Other Sources B-EYE-Network.com Claudia Imhoff Expert Channel - c027fe15166fc97637c7d6c064f53bf4 Claudia Imhoff Blog - Solutions Spotlights ISI Articles B-EYE-Network.com DM Review.com SearchCRM.com TDWI - BI Journal TDWI Flashpoints and White Papers 10 Mistakes to Avoid 50

51 About Intelligent Solutions Founded in 1992 by Claudia Imhoff Received outstanding recognition for client satisfaction (Dun and Bradstreet survey of our clients) Internationally recognized industry expertise Full line of Corporate Information Factory and CRM courses BI and CRM Consulting services Mentoring Assessment and Planning Management Design and Implementation International client base in all industry verticals 51