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Master Data Governance: Implementing a Framework for Application Harmonization

Prepared by:Eric WagnerData Integration Practice LeaderCheckPoint Consulting

Session ID #: 14044

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Presentation Agenda

■ Introduction and Presentation Overview■ Components of Master Data Governance■ Implementing a Governance Framework■ Industry Trends■ Wrap up, Questions

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Eric Wagner

■ CheckPoint Consulting, Data Integration Practice Leader▪ DRM, ODI, FDMEE

■ Oracle Consulting, Solution Architect (2007 – 2008)▪ DIM, ODI, DRM

■ Hyperion Consulting (2001 – 2007)▪ HAL

■ SUNY Buffalo■ USMC

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Presentation Overview

This is a subtitle or bulleted list

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What is Master Data?■ Transaction Data

▪ Journal Line

▪ Level 0 export from Essbase

■ Metadata▪ Relational Example

— Data Type for account description is varchar2(255)

▪ Essbase Example— Alias maximum 80 characters

■ Master Data▪ Account value is 12345 and parent is Sales

▪ Hierarchies: Accounts, Geographies, Company, etc.Data Type Company Geography Account Date Amount

Transaction CheckPoint MI 12345 01/01/2013 5000

Meta Text50 Chars

Text10 Chars

Integer5 digits

Date/TimeMM/DD/YYYY

Double4 decimals

Master •CheckPoint–DRM–HFM–PLN–ESS

•All Geographies–North America

•Central• MI•East•NY

•Accounts–Revenue

•Sales•12345

•Period–FY

•Q1–Jan–Feb–Mar

•Year–2010–2011–2012–-2013

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Typical Business Landscape (Generic)

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Business Example 1 (Software Company)

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Business Example 2 (Hotel Chain)

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Business Example 3 (Industrial Conglomerate)

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Life without governance

■ Multiple touch points and silo processes result in lack of data integrity across the enterprise ▪ Silos create inconsistencies

■ Absence of clear ownership, missing vision & strategy▪ Ownership spread out across business function and not

always aligned with business strategy

■ Lack of standards, policies and procedures▪ Different or inconsistent naming conventions

▪ Policies and procedures different by function

■ No clear decision makers for future direction▪ What happens during an acquisition?

▪ What happens when business direction changes?

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Components of Master Data Governance

This is a subtitle or bulleted list

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What is Master Data Governance? (Macro Level)

■ The process of enforcing data integrity across the enterprise by:▪ Establishing a governing body that is responsible for the

following:— Developing standards, policies and procedures

— Provide guidance and overall vision

— Makes decisions that impact future direction

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What is Master Data Governance? (Micro Level)

■ Identify data stewards who perform the following functions:▪ Enforce standards, policies and procedures:

— Data Stewards have an intimate knowledge of enterprise data, critical that they can recognize incorrect or bad data, based on specific definitions

— Identify and resolve data quality issues

— Approve and control updates to subscribing systems

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People, Process and Technology

■ People▪ Focus on identification of

ownership, and data stewards

■ Process▪ Focus on identifying

standards, policies, and procedures around change management

■ Technology▪ Focus is on ensuring the

technology provides the solution, to the needs of the people and processes

People

Process

Technology

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Scope of Data Governance - People

Who’s the Owner?

• Assign roles and responsibilities to people in the organization• Data Owner• Data Steward• Data Manager

What do they Own?

• Identify master data elements that we want to govern• Data definitions• Data mappings• Naming conventions• Hierarchy decisions

When do they get involved?

• Create policies and procedures to engage the appropriate people at the relevant time

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Scope of Data Governance – Process & Technology

Which processes do we need?

• Identify the processes that need to be formulated to support data governance

What are the requirements for

workflow?

• Identify the criteria required to facilitate effective workflow

Which system should we use for managing

data & workflow?

• Identify the appropriate system to execute the workflow

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People & Process

Data User

Complete request form with required information

Submit request to Data Steward

for approval

Data Steward

Evaluate request for

alignment to standards

Send approved request to Data

Manager for deployment

Data Manager

Execute the deployment to

production environment

Inform the Data User the

request has been completed

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Common Data Governance Processes

■ Master Data Definition/Setup■ Aligning Policies, Requirements, and Controls■ Establishing Decision Rights■ Defining Data Retention Policies■ Resolving Issues/Escalation Path■ Specifying Data Quality Requirements■ Communications and Program Reporting■ Measuring and Reporting Value

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Implementing a Governance Framework

This is a subtitle or bulleted list

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Data Governance Goals

■ Achieve Clarity■ Reporting, operational

■ Ensure Value■ In what you report, in your systems

■ Enable Better Decision Making

■ Maintain Scope & Focus

■ Establish Accountability

■ Reduce Operational Friction

■ Build a Standard & Repeatable Process

■ Define & Measure Success

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Ownership & Sponsorship

■ Establish and define principles of success▪ Establish what it means to have governance across business

units

▪ Phased Approach— What can you realistically achieve by when?

— Identify milestones

— Identify measurement for success

■ Sponsorship - need to ensure that business units are aligned▪ Must ensure that competing objectives are minimized and that

the big picture of enterprise wide governance is not lost

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Implementation Elements to Define & Measure■ Overall Strategy

▪ Policies, Standards, Business Rules

▪ Data Quality

■ Security▪ Compliance Requirements

▪ Privacy— What limitations are there to managing information?— What can/cannot be shared?

■ Architecture▪ Integration & Applications

■ Management Alignment▪ Decision Rights

▪ Accountability & Ownership

▪ Control Mechanisms

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Evolution of Governance

Characteristics Scattered Centralized Governed

People No Owners, Part-Time/ Informal Stewards, or Committee.

Some degree of organization exists, but still fragmented and disconnected.

All levels of governance identified (Responsible, Accountable, Contributing, Informed), as well as having clear and comprehensive policies and procedures formed.

Process No clear end-to-end processes defined, or not fully functioning.

Some processes established, multiple complex integrations, heavy amounts of ETL required.

A streamlined process allows users to minimize data entry, allows for quick approvals, pushes metadata to downstream systems with minimal, standard integrations (EBS, EPM).

TechnologyNo centralized solution, no approvals, or integration with downstream systems.

A centralized solution, some visibility to changes and approvals.

Unified, controlled environment for all master data changes.

Pre – Governance Post – Governance

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Identify & Outline Roles in the Organization■ Data Steward

▪ Coordinates master data updates with end users, data owners, key stakeholders and system owners

■ Data Owners▪ For each segment there are one or more individuals that

perform a preliminary review and a preliminary approval— Examples include:

• Director of Corporate Accounting• Director of Finance• Director of Management Accounting• Director of Tax

■ Data Stakeholders▪ Final Approver – A single Individual from each department

■ Other: Data Managers, Custodians and Users• Functional role players from both IT & business

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Data Governance Council

Contributing/Informed Manage processes set forth by Data Stewards Provide functional and technical resources to

make changes in master data change management system

Manage master data changes to determine accuracy, completeness, and structure

Participate, inform, and improve processes as they evolve by providing status of issues and challenges encountered in during workflow processes.

Responsible/Contributing

Establish policies for proper entry, synchronization, and maintenance of data across all relevant enterprise applications

Centralize control, maintenance, and distribution of data in the system of record

Provide clear, concise communication of change requirements

Responsible & Accountable

Define Requirements for financial master data Establish standards and provide direction Facilitate common view of measures and business segments from corporate down to the business units

Contributing/ Informed

Communicate business needs and changes to master data Identify key areas for change, based on unique business needs. Influence and provided essential insight with data

stewards to establish data stewardship and control policies

Rely on financial reporting outputs and metrics to serve business needs.

Technology

Data Governance Council

• Data Owners

• Data Stakeholders

• Data Managers & Users

• Data Stewards

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Policies & Procedures

Formulate policies and procedures to enforce data standards and governance procedures.

■ Master Data Setup Procedures

▪ Determine the information required to create master data elements for each target system, frequency of deploying changes

■ Master Data Definitions

▪ Define standard naming conventions for master data elements, create dictionary of master data elements and terms

■ Validation Rules

▪ Implement checks and balances to ensure the integrity of nodes, hierarchies, and properties

■ Master Data Retention

▪ Determine retention time frame, archival rules, means of storage, access methods

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Industry Trends

This is a subtitle or bulleted list

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Master Data Governance Trends

■ Shift towards implementing partial and full scale governance models that include:▪ Master Data Management Tools: Oracle DRM, Customer Hub,

Product Hub, etc.

▪ Fully integrated workflow applications— Robust SOA solutions

— Out of the box solutions (DRG for DRM)

▪ Process Teams: Governance councils, new hires specific for governance positions

▪ Global implementations for large companies

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Client Example 1 – Partial Governance

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Client Example 2 – Partial Governance

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Client Example 3 – Full Governance

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