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Step-by-Step Guidelines for Building an Information Governance Program Ina Felsheim October, 2012

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Step-by-Step Guidelines for Building an

Information Governance Program Ina Felsheim

October, 2012

© 2012 SAP AG. All rights reserved. 2

Agenda

Information Governance strategies

How to get started

How to grow the information governance discipline

Information Governance

strategies

© 2012 SAP AG. All rights reserved. 4

Information Governance Interactive Tool (turn audio on):

http://www.sap.com/demos/extmedia/sap_info_gov/index.html

© 2012 SAP AG. All rights reserved. 5

What Is Information Governance?

Information Governance

A discipline that includes people, processes, policies, and metrics for the oversight

of enterprise information to improve the business value

High Value Information:

Optimized Business Processes

Smarter Business Analytics

Timely Mergers and Acquisitions

Compliance with Laws and Regulations

Process People

Policies &

Standards Metrics

© 2012 SAP AG. All rights reserved. 6

How quickly is your company’s data growing?

The total amount of global data is expected to grow to

2.7 zettabytes during 2012 – up

48% The total digital universe will reach

7.9 ZB in 20152

If each byte were a dollar bill, 7.9 zettabytes

would stretch from the sun to Pluto 18,000 times3

from 20111

1: IDC Predictions 2012: Competing for 2020, doc #231720, December 2011; 2: IDC Digital Universe Study, sponsored by EMC, June 2011;

3: http://www.youtube.com/watch?v=LzC3oouzXU4

© 2012 SAP AG. All rights reserved. 7

What types of data does your company manage?

Structured data grew by more than

40% per year

Traditional content types, including

unstructured data, are growing by up to

80% per year

Gartner, Information Governance: 12 Things to Do in 2012, Published: 27 January 2012

© 2012 SAP AG. All rights reserved. 8

Why is it important to manage your company’s data

effectively?

Poor data quality

is a primary reason for

40% of all business initiatives failing

To achieve their targeted benefits

Gartner, Inc., Measuring the Business Value of Data Quality, October 2011

© 2012 SAP AG. All rights reserved. 9

What can happen if you don’t improve your company’s

information governance

of CIOs in regulated industries

will lose their jobs for failing to

implement the discipline of information

governance successfully

By 2016,

20%

Gartner Predicts 2012: Information Governance Programs Gain Traction, Published: 23 November 2011

© 2012 SAP AG. All rights reserved. 10

Is your company investing enough for information

governance success?

Through 2016, spending

on governing information

must increase to five times

the current level to be successful

Gartner Predicts 2012: Information Governance Programs Gain Traction, Published: 23 November 2011

© 2012 SAP AG. All rights reserved. 11

Does your company have the right technologies for

proper information governance?

Governance, though focused on

people and process, requires specific

technology to support and enforce its

practices — that is, to ensure

stewardship

The Emergence of Information Stewardship Applications for Master Data, Published: 11 June 2012

© 2012 SAP AG. All rights reserved. 12

What benefits could your company achieve with better

information governance?

Operational Efficiences

Smoother business processes

Standardized and high quality information

Reduced IT costs

Better Business Decisions

Enhanced customer service

Increased marketing effectivness

Increased revenue growth

Risk Reduction

Improved accountability

Better accuracy and consistency

Compliance with internal and external regulations

Birmingham City Council, who governs the United Kingdom’s second

largest city, achieved productivity gains of +15% over 10 years,

resulting in savings per year of £100 million (€121.6 million).1

Organizations with data standards typically improve customer

retention by 15% and see an 11% increase in the number of

sales teams that meet their quota.2

Dabur India Limited, India’s fourth largest consumer products company,

reduced its risk by achieving 100% regulatory compliance.3

1. SAP Business Transformation Study, Birmingham City Council; 2. Aberdeen Report, United We Stand, Divided We Fall: the Need for Standardizing and Centralizing Master Data, May

2012; 3. SAP Business Transformation Study, Dabur

© 2012 SAP AG. All rights reserved. 13

10 Questions That Will Shape Your Information

Governance Program

What business priority is enabled most by quality information?

What data fields and aspects of data are the most important to govern?

What are the potential benefits of governing this information?

Who are the stakeholders for the business priority?

What is the perceived and actual level of data quality?

What processes and systems are used to create and update information?

Are there standards in place today?

What technology is used to govern information today?

How can I ensure success?

What does great information management look like?

© MCV LLC

© MCV LLC

1

2

4

5

6

3

7

8

9

10

© 2012 SAP AG. All rights reserved. 14

Challenges with Effective Information Governance Hurdles with People, Processes, and Technologies

Process

People

Technologies

Insufficient ownership

by the business

Poor information governance

in the business process

Lack of integrated technologies

to support the end-to-end needs

© 2012 SAP AG. All rights reserved. 15

Constant Vigilance Is Necessary

http://www.colbertnation.com/the-colbert-report-

videos/182555/january-15-2007/bears---balls---gas

(start at 2:20)

(Stephen Colbert)

© 2012 SAP AG. All rights reserved. 18

SAP Information Governance Solutions Maximize the value of your enterprise information

Empower the

Business

Govern In

Process

Trust Your

Information

Easier information

stewardship

Governance

analytics

Business and

IT collaboration

Embedded in the

business process

Governance

workflow

Information lifecycle

management

Optimized

data quality

Continuous

monitoring

Unlock insights from

unstructured data

How to get started

© 2012 SAP AG. All rights reserved. 20

Getting Started with Information Governance

MCV LLC copyright

Pick the

Information

Pick the

Projects Pick the Team

Pick the

Management

System

Business drivers

Data domain

Fields

Data inventory,

profiling, baseline

Information strategy

Data pain points

with root cause

analysis

Data quality

improvement

IT project

Business

IT

Executive

sponsors

Governance staff

Metrics

Forums

Tools

Governance

process

© MCV LLC

Claim success

immediately

© 2012 SAP AG. All rights reserved. 22

Resources

Survey for existing resources

• Global food manufacturer uncovered that

98 people were maintaining master information … it

centralized master data maintenance functions down to

19 FTEs

Business or IT

1 or 2 from business dealing with an acute information problem

Detail-oriented

© 2012 SAP AG. All rights reserved. 23

Small Project

Tangible pain

Easy, hard ROI

© 2012 SAP AG. All rights reserved. 24

Where to start: Transactional efficiencies

Finished Goods data attribute accuracy as measured by a customer

42%

57%

78%

98% 99% 100%

Audit 2007 2008 2009 2010 Today

Improved transportation costs, reduced warehousing issues, improved

customer communications (ie sales sheets), order efficiencies

© 2012 SAP AG. All rights reserved. 25

Where to start: Transportation savings

Case Weight

ERP System says = 44.875

AUDIT says = 43.862

1 lb. difference results in

Calculated Load = 19 pallets

Based on audit, load could =

20 pallets

2700039125 6/104 OZ AM MARINARA

Every 20th

truck free!

Impact

Accurate Product Specifications = Transportation Savings

© 2012 SAP AG. All rights reserved. 29

Use scenario phasing

4. DQ Initiative

5. Master Data Management

2. BI +

Predictive

Analytics

8. Retention

and

Archiving

Organization Accountability Policies Metrics

6. Point of Entry

Firewall

7. Link

Master Data

to Rich

Information

9. Process

Monitoring

and Optimization

1. Information

Discovery

3. Data

Migration

Tactical steps for getting started

Take a look:

Profiling

© 2012 SAP AG. All rights reserved. 33

Stay Small with Reuse

Technology

Team

Project

© 2012 SAP AG. All rights reserved. 34

Publicize. Evangelize. Prove the Value.

Offensive metrics

Business value in multiple perspectives

Visual and compelling

Defensive metrics

SLAs and reverse SLAs

“90% of the problems are because of master data”

© 2012 SAP AG. All rights reserved. 35

General Suspect Prospect

May Dec May Dec May Dec

LE

Organization data

Defects per 1k accounts 787 688 1130 617 735 529

Missing DUNS per 1k accounts 118 99 199 104

Total defects per 1k accounts 787 688 1248 716 933 633

Contact data

Avg. Missing C-Level/1k

accounts

848 825 3193 2973

Avg. Missing Phone/1k accounts 1801 1700

Total Defects per 1k accounts 848 825 3193 2973

4258

5623

475 1554

988

Total Rush Requests YTD

Customer Pricing Vendor Finance Indirect Materials

Metric Examples

Gov

Quality

Services

Before ECC

Gov

Quality

Services

After ECC

How to grow the information

governance discipline

© 2012 SAP AG. All rights reserved. 37

Grow the Initiative

Build Strong Data-Driven Value Proposition

Selling value gained to other executives

Strengthen policies, rules, metrics, quality evaluation

Call Your Executive Sponsor to Action – Script them

Have a good idea for which model will work

Does it need to be imbedded in large scale project or can it stand alone

© 2012 SAP AG. All rights reserved. 38

Growth plan

Find executive support.

Establish a growth plan.

Establish a mission.

© 2012 SAP AG. All rights reserved. 39

Visualize

© 2012 SAP AG. All rights reserved. 40

Operationalize

© 2012 SAP AG. All rights reserved. 41

Best Practices: How to Get Started

1. Define what information governance means at your company

2. Design the process (It’s not enough to declare information governance and then

leave)

3. Choose a key initiative as a test case

4. Find people already doing some of this work

5. Define a set of simple success metrics that you can track throughout the project

6. Align stakeholders to the initial project

7. (do the work … policies, business rules, access rights, workflows, data quality,

etc.)

8. Document what’s different

9. Leverage your success

© 2011 SAP AG. All rights reserved. 44

Enterprise Information Management with SAP

Get your copy now

• Customer examples & best practices

• Understand the big picture of SAP’s

enterprise information management

offerings

• Explore step-by-step instructions for

working with SAP Data Services

• Learn how to perform the most

important tasks in SAP Information

Steward, SAP NetWeaver Information

Lifecycle Management, SAP Master

Data Governance, and more

• All royalties donated to Doctors Without

Borders

Order at http://www.sappress.com or Amazon

© 2012 SAP AG. All rights reserved. 45

Information for EIM, Data Migration, and Information Governance

Enterprise Information Management Use Case Wiki :

http://wiki.sdn.sap.com/wiki/display/BOBJ/Enterprise+Information+Management+Use+Case+Wiki

Order EIM book: Ginger Gatling, Enterprise Information Management with SAP (SAP PRESS, May

2012).

www.sap-press.com/products/Enterprise-Information-Management-with-SAP.html

SAP BusinessObjects Data Services on SDN: www.sdn.sap.com/irj/sdn/ds

SAP Best Practices content for data migration *: http://service.sap.com/bp-datamigration

Ginger Gatling, “Data Migration in 5 minutes” SAP SCN, March 2011):

www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/24083

Information Governance podcast: Breakfast with Game Changers:

www.voiceamerica.com/episode/57866/information-is-kingbut-whos-the-governor

DSLayered podcast on EIM4: http://t.co/BrZtoeJd

Jon Reed, National Vision podcast on strategic EIM + Data Services (May 2011).:

www.jonerp.com/content/view/405/55/

* Requires login credentials to the SAP Service Marketplace

© 2012 SAP AG. All rights reserved. 46

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