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Master Data Management:The Importance of Strategy and Governance

Colin [email protected]

© 2007 Computer Sciences Corporation 2

Agenda

• Drive thy business or it will drive thee.1

• Money is plentiful for those who understand the simple laws which govern its acquisition.2

• In the business world, the rearview mirror is always clearer than the windshield.3

• By failing to prepare, you are preparing to fail.1

1Benjamin Franklin2George Samuel Clason3Warren Buffet

Master Data Management

Drive thy business or it will drive thee


Retain institutional knowledgeRetain institutional knowledge

Manage reliability and availabilityManage reliability and availability

Manage business processes to reduce operating and capital expensesManage business processes to reduce operating and capital expenses

Improve efficiencyImprove efficiency

Design cost reduction program portfolioDesign cost reduction program portfolio

STRATEGICOBJECTIVES

Analyze real-time and historical data across functionsAnalyze real-time and historical data across functions

Offerings of combination of products and services Offerings of combination of products and services

Improve customer experienceImprove customer experience

Strong and enduring customer relationshipsStrong and enduring customer relationships

BUSINESS IMPERATIVES

Meet regulatory requirementsMeet regulatory requirements

More effectively manage InventoryMore effectively manage Inventory

Compelling needs across industries

“Grow from your core”

“Grow from your core”

Profitably grow and

retain business

Profitably grow and

retain business

Selectively reduce costs

Selectively reduce costs

Effectively manage

risk

Effectively manage

risk


Underlying Technical Challenges

• A Proliferation of Data, Stored in

• A Proliferation of Databases, Containing

• A Proliferation of Definitions, Satisfying

• A Proliferation of Requirements, Accessed by

• A Proliferation of Applications, Enabled by

• A Proliferation of Tools, Yielding

• A Proliferation of Answers


Money is plentiful for those who understand the simple laws which govern its acquisition.


Clients Face Increasing Information Management Challenges

TransactionsCustomers

Partners Employees

Organizations

FinancialsProducts

Documentse-Mails

Databases

Media

WebContent

Reports

40% of IT budgets may be spent on integration

30% of people’s time is spent searching for relevant

information37% CGR disk storage growth ’96 – ’07

Only 1/3 of CFOs believe that the information is easy to use, tailored,

cost effective, or integrated

17% of IT budgetsspent on storage HW, SW, people

60%+ of CEOs need to do a better job capturing and understanding information rapidly in order to make swift business decisions

30 – 50% of design time is copy management

85% of information is unstructured

48 disparate financial systems and 2.7 ERP systems in the

average $1B company

79% of companies: have 2+ repositories and 25% have 15+

122 terabytes disk storage in 2005

Sources: IBM & Industry Studies, Customer Interviews.


Benefit Examples*

• Earnings improvement of $1 billion over 2 years

• Inventory reduction by 30% (save $100 million)

• $15 million savings in first 6 months

• $1.5 million savings/week

• Self-service enabled for 28 million subscribers

*IBM Client Examples


In the business world, the rearview mirror is always clearer than the windshield.


Data Integration Continuum

1990 1996 2001 2004

Needs-Based

Integration

Programming

Data Warehouses

ETL

ODSs

Messaging, EAI

Virtual Integration

EII


MDM,CDI,PDI


Data Integration Continuum – Effects

1990 1996 2001 2004

Order ManagementOrder Management

BillingBilling

Supply ChainSupply Chain Human ResourcesHuman Resources

Sales DWSales DW

Marketing DW

Financial DW

ODS

ERP 1 ERP 2

Abstraction


Point of View

• Technology enablers provide a means of improving the data

• Every advance brings advantages and disadvantages

– There is STILL no silver bullet

• The technical components for successful Enterprise Intelligence exist today

• Success cannot be achieved by technology solutions alone

• Successful implementation is enabled devising a Strategy covering the following areas

– Business Alignment, Prioritization and Commitment– Architecture Alignment and Prioritization– Governance of Implementation and Maintenance– Funding Alignment

Governance/Ownership

Internal Standards

Change Management

Data Stewardship

Business Processes

Privacy and Compliance

Local vs. Global Issues

Methodologies

Architecture

Roadmap/Plan

Governance/Ownership

Internal Standards

Change Management

Data Stewardship

Business Processes

Privacy and Compliance

Local vs. Global Issues

Methodologies

Architecture

Roadmap/Plan


Data Management Key Process Areas (KPAs)

Strategy

Metadata

Architecture

Roles and Responsibilities

Data Quality

Security

Data Management

The development of and adherence to a strategy that defines the objectives, processes and success criteria for Data Governance

Roles and Responsibilities for both Business and IT constituents in the Governance program includes overall Data Owner and Steward responsibilities as well as specific roles such as Data Modeler, DBA and Data Architect Establishment of ability to measure and improve quality of key information –includes ability to audit

Establishment of ability to commonly define and understand the data environment, both business and technical

Establishment of a formal architecture that enables the goals of the organization in regard to data access and usage – includes the ability to determine appropriate technologies (Technology Stack)Establishment of policies and procedures that enable the organization to protect its data assets and minimize risk

Establishment of a process to effectively manage the organization’s data assets –includes Data Integration and Movement, Data Modeling, and Database Administration

MeasurementEstablishment of quantifiable metrics to measure the success of the Governance program, and a process to audit these metrics

GovernanceThe development of a program that enables common, consistent usage of information across the enterprise and within constituent business units



1990 1996 2001 2004

Strategy

Architecture

Gov

erna

nce

Stan

dard

s an

d G

uide

lines


By failing to prepare, you are preparing to fail


Data Strategy and Roadmap

• Cross Functional, Business Priority-driven

• Executive Sponsorship, Business and Technology Commitment

• Develop Funding and Governance models for cross-functional processes

– Foundational Projects– Business Definitions and Rules– Tactical Exceptions– Common Processes– Knowledge Transfer

• Leverage legacy where practical and economical

• Deliver functionality quickly and often (~90-120 days)

• Ensure each initiative has stand-alone benefits

• Build later projects on the foundation of earlier ones

• Maintain flexibility as requirements and priorities change

Integration Strategy Components

Strategy:• Business Priorities• Business Drivers• Business Principles• Funding• Governance

Architecture:• Architectural

Principles• Architectural

Blueprints• Standards and

Guidelines• Competencies • Security• Metadata

Roadmap:• Foundational Projects• Business Unit Projects• Inter-relationships


Our Approach

Architectural Blueprint

Step 4Migration Planning

Migration Project Plan

Business Discovery

Application & Infrastructure

Discovery

Data Discovery

Step 1Discover

Develop IT Vision

IT Gap Analysis

Step 3Design and Approval

Business Gap Analysis

Step 2Direction Setting

Develop Business

Vision

Roadmap

Design & LaunchFocus & Prioritize

© 2007 Computer Sciences Corporation 18MDM projects are typically delivered by a small team (2-4 people) of experienced CSC resources over a 6-12 week timeframe

Step 1 – Discover Step – Direction Setting Step 3 – Design and Approval Step 4 – Migration Planning

Objectives

• Understand the current business, data and technical environment as it relates to transactional and business reference data

• Understand the business, data and technical direction that should be supported in the future

• Develop processes that will support the current business direction

• Define capability gaps between the desired state and the current state

• Develop the IT architecture(s) that will support the transactional, business reference, and information model areas

• Define capability gaps between the desired state and the current state

• Develop a process and schedule to implement the desired state – both business and technical

Focus

• Current processes, applications and infrastructure

• Current business risks, ob-jectives, initiatives and priorities

• Organization/Governance processes• Quality assessment• Technology and data integration processes• Current data models

• Validation of current state• Business capabilities that are linked to business

reference and transactional data• Conceptual future state data management

processes• Governance processes• Future state quality direction

• Integrated data flow/model assessment• Architecture• Transitions• Missing/overlapping/redundant features and

functions• Issues and barriers

• Prioritized list of projects to enable movement towards the future state

• New functionality• Application rationalization• Quality improvement processes and projects

Work Products & Deliverables

• Current business process, data and technology models

• Issues and barriers• Objective quality assessment

• Business process current state model• Business process future state model• Business principles and priorities• Organization/Governance model• Quality direction• Enablers

• IT process current state documentation– Data models– Application maps– Data flows– Future state data and application

architecture• IT priorities and principles

• Project roadmap• Project plan(s)• Data and application architecture• Strategy• Architecture transition plan• Process transition plan• Organizational/Governance plan

Roadmap

Conduct IT Gap Analysis

Develop IT Vision

Conduct Business Gap Analysis

Develop Business VisionData Discovery

Business Discovery

Technical Discovery

Architectural Blueprint

Migration Project Plan

Our Approach

Design & LaunchFocus & Prioritize


Data Maturity Model

No consistent Governance or Management capability exists.

Data is implemented on an application by application basis,

and is viewed as an IT issue.

Governance capability defined at the department/sub-organization level. Limited foundational implementation of consistent reusable data between applications. Most

Governance processes deployed at an IT level, but business starting to get involved.

Governance processes implemented at the department/sub-organizational level. Business roles and processes defined and implemented.

Enterprise strategy defined and foundational projects planned.

Common Governance processes deployed across the Organization. Data is defined in a

common, consistent manner, and available as required. Data Governance integrated with

other Organizational Governance processes.

Full Realization

Partial Integration

Building Blocks to Success

At the Starting Gate

DISTINCTIVE

ADVANCED

FOUNDATIONAL

BASIC


Conclusion• Multi-step program

• Business led, business commitment

• New roles across the organization

• Focus on common information and how to use it

• Technology is important, but only to solve the business problem

Thank You!