Reframing the Value Proposition and Proposed Value of Information Quality
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This document discusses reframing the value proposition for information quality. It provides statistics showing that poor quality information is a barrier to business goals for 75% of CFOs and that 84% of data migration projects fail. Only 1 in 10 companies perform data profiling affecting risk assessment. The document then discusses how information quality and data governance initiatives for 66% of organizations aim to improve information quality and for 58% aim to improve data warehousing and business intelligence capabilities. It stresses that what is being "sold" is the means and ability to align quality leaders and senior managers to move the organization forward through improved and trusted information.
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Reframing the Value Proposition and Proposed Value of Information Quality
- 1. Reframing the Value Proposition for Information Quality IDQ Seminar Series @ Dublin 22nd February 2010
- 2. Information Quality Management is on the verge of a breakthrough moment
- 3. 75
- 4. 84
- 5. 88
- 6. 1
- 7. BINGO!
- 8. 75% of CFOs interviewed by Gartner cited poor quality information/data as a direct barrier to achieving their business goals Source: Gartner Group, 11 August 2009
- 9. 84% of data migration projects fail to deliver on time or on budget Source: Bloor Research, 2007
- 10. 88% of respondents to a recent Deloitte survey reported “Data” as being either “Very Significant” or “Somewhat Significant” to their Enterprise Risk Management efforts Source: Deloitte Global Risk Management Survey 2009
- 11. Only 1 in 10 companies performed some form of data profiling on their datasets, affecting risk assessment on data migrations and other initiatives. Source: Bloor Research 2007
- 12. Alice in Wonderland Where do we go from here?
- 13. Alice in Wonderland Where do we want to go?
- 14. IAIDQ Data Governance Study 66% Of Data Governance initiatives were focussed on improving quality of information within the organisation 58% Said that their drivers were improved Data Warehousing and Business Intelligence capabilities. 47% Of respondents were addressing Compliance & Risk Management concerns through IQ/Data Governance Source: IAIDQ State of IQ/Data Governance Report, April 2008
- 15. So what are we selling?
- 16. Selling Trust
- 17. Sowing seeds of distrust Source: IBM Source: Gartner Based on Chapter 2 of Data Driven by Dr. Tom Redman
- 18. This is (not) Spinal Tap
- 19. Focus = alignment to strategy. Requires vertical Line of Sight to real measures of real work. People Information Information spans the org. horizontally, connecting teams/depts
- 20. Connecting Good Data to Good Decisions Communicate Socialize Decisions Analyze Feedback Knowledge Enhanced Compliance Increased Effort Contextualize Feedback Information Feedback Data Increased Value
- 21. What we are selling is the means and ability to align the interests of Senior managers and Information Quality leaders into a single cohesive agenda that moves the organisation forward
- 22. Reframing the Market Place
- 23. A Value Delivery System Value Proposition How resulting experiences will be provided How resulting experiences will be communicated Reduced costs of compliance All information required readily available with clear lineage and auditability Improved time/ability to respond to regulatory requests or investigation ??? ‘Early warning’ of issues likely to attract regulator ??? Quality built in, less risk of error and more timely awareness of problems Compliant at lower cost ??? Joined up organisation thinking, right hand knowing what left hand is doing View of customer record consistent across organisation Not winding up in court for harassment of customers ??? ???
- 24. Value Propositions evolve Polaroid Pogo Digital Camera Polaroid Instamatic Box Brownie
- 25. Value Propositions evolve Memory sticks, card readers, printers, printing booths, photo albums Film, advice, photo albums Polaroid Pogo Film, advice, spare parts, developing Digital Camera Film(?), advice, photo albums Polaroid Instamatic Box Brownie
- 26. Resulting Experience (for their customers) Accurate and reliable billing mediation reference data which can be trusted 100% at all times.
- 27. How it is achieved Stringent Information Quality control (exceeding 6 sigma) Defect Prevention in their processes Statistical Process Control approach .
- 28. How it is communicated Publicly published statistics showing quality trends A blog about their quality A detailed case study of how they did it.
- 29. Resulting Experience Delivered? "In the first month, we billed an additional $140,000 that previously would have been left on the table, and that's just in the 12 states we used as a test."
- 30. Value Proposition for a Utility company Value Proposition How resulting experiences will be provided How resulting experiences will be communicated Reduced costs of compliance View of customer record consistent across organisation Ensure notifications about inaccuracy in customer data are investigated and corrected quickly Run Consistency checks on customer data on a regular basis Ensure training and organisation culture support quick response to inconsistencies or inaccuracies in customer data. Not winding up in court for harassment of customers Publish a consistency report for management Track accuracy reports and actions at management meetings Be able to compete on higher standard of customer care. Publish case studies on how well we are doing. Present at Conferences Internal blogs Regular training via web-based tools to embed knowledge and change
- 31. Compliance Problems getting you down? Buy a data profiling tool and all your troubles will be over. Trust me....
- 32. In Information We Trust
- 33. When we reflect on objectives and alignment, we need to be sure we are seeing the full picture…
Notas do Editor
- Only 16% of data migrations are delivered on time and on budgetProject overruns average in excess of 40% of the total time budget.Project over-runs averaged over 30% of the total financial budget for the project.More than half of all respondents blamed poor, inadequate or unrealistic scoping for budget overruns (either time or money budgets).
- If it is significant to Enterprise Risk then it is directly affecting the ability of the organisation toGenerate net cash flows inDeliver servicesBe compliantInformation is the engine of the enterprise.
- While the Bloor Research study was looking at planning for data migrations, the fact that only 1 in 10 companies who responded to the survey had done any data profiling as part of planning their data migrations is a statistic that backs up the anecdotal stories from Risk Management consultants that the biggest problem in Risk Audits or Risk Reviews is that people don’t have information to make informed decisions, and for the information they do have, they are not always in a position to stand over the accuracy of it.
- 66% were improving “information quality” as a primary goal.58% were trying to improve Data Warehouse and Business Intelligence performance47% were addressing Compliance and Risk management goalsSome had multiple goals.But all of them were seeking to improve the quality of an asset that is capable of being consumed without being destroyed across BI functions, Compliance functions, marketing functions, Risk Management etc. etc.This asset is so fundamental to businesses that it spans multiple business processes, functions and perspectives. But it is not managed as an asset in many cases.42% of respondents were neutral or disagreed that their companies recognised information as an asset. However, the survey showed that there was significant benefit to be gained through synergistic goals (shared across +1 business units), treating information as a strategic asset, and improving the results and effectiveness of Governance and IQ efforts as the organisation improves its maturity.
- What is it that we are selling as Information Quality Professionals? What service are we giving to our organisations?Until we can answer that question ourselves we won’t know where we are going or what we are doing or, more importantly, what we CAN do to add additional value in our organisations.Information Quality is about more than Data CleansingInformation Quality Management is about more than reacting to problemsIt is also about more than saving a BI initiative from the 84% failure rate of data migrations, or trying to get your organisation to actually profile your data.These are parts of the service that an Information Quality team can and should deliver. But to get where you want to go in your organisation, and to get your organisation to where it needs to be, we need to be clear about what high quality information, managed in an effective and efficient manner can deliver as a value proposition for organisations.
- FactData and the quality of data is not managed as rigorously as are most other assets and activitiesA characterization of the state of data quality awareness and responsivenessPeople are generally aware of problems with dataPeople consistently underestimate, by a large amount, the extent of the problemPeople have generally no idea of the cost of the problem to the organizationPeople have generally no idea of the potential value in fixing the problemRegulatory pressures will inevitably be growing in a variety of industries, particularly as regulators move from a “light touch” model towards a more evidence based approach to assuring and ensuring that your business is being run in compliance with the relevant regulations.What Information Quality professionals and IQ teams are selling is the ability for internal and external information consumers to TRUST their information and be able to stand over it, act on it, and make decisions based on it, and to be able to ACT on FACT.The “added caring” is the fundamental change in how we treat information as an asset, what Dr Tom Redman calls the “Care and Feeding Test” that ensures that information is correctly governed and managed for quality outcomes. Just like the greenery in your office or the plants in your garden, information must be cared for and fed to blossom in the required way from the seeds of data.According to Redman, most organisations fail the care and feeding test.
- These are some of the deadly sins of poor quality information which sow distrust and lead to non-caring in organisations.Note the significant bottom line impacts of poor quality information. Note too how Tom Redman draws a clear connection between Data Privacy and Data Quality (a connection I turned him on to back in 2005).Unfortunately, when we scratch below the surface of these issues we find the following;FactIT often does not want to raise a red flag since they know that they will be blamed for itBusiness management wants to believe that their IT departments are top notch and that their systems are first rateTransparency is still lackingIs this an IT problem? What about?Poorly articulated requirementsPoor acceptance testingPoor data creation processes… and more?
- How many projects have we been involved in where the end result was not what was expected/desired due to a failure to properly specify or manage information?18 inches vs 18 feetAnd every data quality tool can go up to 11.
- Barnaby Donlon presents this model for strategic alignment. There are a number of key points to note about itInformation is the FOUNDATION which enables PEOPLE to conduct Operations and ensures effective allocation of resources to deliver the strategy in a focussed way.Information spans the organisation horizontally, connecting functional teams and external partners… it is the lingua franca of business.Information provides the vertical line of sight that links policy/strategy to practice & action. FocusThe focus is about ensuring organizational commitment and alignment to the strategy.Alignment occurs in three major dimensions: 1) forging a consensus among executive leadership teams, 2) creating a vertical line of sight between the corporate goals and those pursued by employees on the front lines, and 3) creating horizontal connections between functional teams and external partners who must collaborate to achieve shared goals associated with key customer-oriented processes.Measurement, which helps drive focus and commitment, must be linked to strategy; for as the expression goes, if you don't measure it, you can't manage it. Accordingly, if you don't manage it, don't measure it.ResourcesThe resources domain involves allocating financial and other resources required to fund strategy and operations, and monitoring those resources continuously to ensure goal achievement.Once leaders have established their strategic objectives and scorecard measures, they can select a portfolio of initiatives that will address actual or expected performance gaps.Strategic initiatives are intervention projects treated as special expenditures easily distinguished from operational expenses (opex) and capital expenditures (capex), which are typically required to maintain normal business operations. The term "stratex" is becoming a common way to treat these special investments.5OperationsThe operations domain entails analyzing the drivers of business performance and linking operational processes to the execution of strategy.Key processes are the critical link between strategy and operations. For operations to support strategy, processes should be mapped to strategic objectives and continuously monitored through a set of measures.By modeling the cause-and-effect relationships between elements of a process, operational managers can determine the appropriate measures to attach to the process. (See the example from LoPrice Airlines as described in Veth's September 2006 column).6PeopleThe people domain is about ensuring employee readiness and personal goal alignment, and aligning HR processes and systems to support the strategy.Just as strategy is executed through initiatives and operations is executed through processes, the awareness and commitment of people in any organization can make or break success.Because strategy is about commitment and change and operations is about compliance with established processes, people need to be involved at both levels through continuous leadership communications, personal goal alignment, and employee reward and recognition systems.InformationThe information domain involves developing a technology platform to enable core processes and support the analytic needs of the enterprise.In today's knowledge economy, business strategy cannot be executed without technology. The proliferation of business intelligence applications such as scorecards and dashboards is a reflection of the reality that information is the new gold.Every enterprise depends on the leadership of the IT organization to develop a platform and information architecture that support timely decision-making at both the strategic and operational level. This effort starts with a clear understanding of business requirements and must adapt as business needs change over time.
- Information is the key to effective alignment. Part of the problem is that we’ve created a silo’d view of it, and quite often the message that “it’s the Information Stoopid” is politically difficult to sell in a crowded market place.
- The term “value Proposition” originated with former McKinsey consultant Michael J Lanning.It is defined as the Entire set of resulting experiences that a customer has arising from products or services that an organisation provides.Lanning’s Value Delivery System is a framework that makes organisations think about what the Resulting Experiences should be, how they will be provided to the customer, and how the experiences will be communicated to ensure that they are delivered. The communication might include:Publication of reports to a RegulatorPublishing of quality reports on a public website or including an “information quality index” in your annual reportsInternal publication of quality reportsCollation of reports of “defects” and errors in a shared repository with associated root causes
- The value proposition of the ‘photographers studio’ has evolved over time. From a studio you went to, they forked off into Wedding photographersCamera shopsCamera shops evolved a value proposition based on knowledge and service, and developed a value delivery system that enabled them to defend against 1hour photo development, instamatic cameras, digital cameras etc. The key thing was to truly understand the key resulting experience that their customers wanted and give that to them, and communicate that that is what was being given.See Lanning’s book for more details (although it is a few years old at this stage, the case studies on photography stores are well worth a look).
- The value proposition of the ‘photographers studio’ has evolved over time. From a studio you went to, they forked off into Wedding photographersCamera shopsCamera shops evolved a value proposition based on knowledge and service, and developed a value delivery system that enabled them to defend against 1hour photo development, instamatic cameras, digital cameras etc. The key thing was to truly understand the key resulting experience that their customers wanted and give that to them, and communicate that that is what was being given.See Lanning’s book for more details (although it is a few years old at this stage, the case studies on photography stores are well worth a look).
- Tele-tech services provide billing intermediation services for long haul carriers in the US.Their data is used to calculate $billions of call minute billing in the US each month for land-line and mobile calling.
- Tele-tech exceed 6-sigma standards to drive the highest quality data to their customers.The simple stringent rule is that if there is one defect in one field in one record on a file, the entire file is classed as a defective file.They worked to eliminate errors by:Improving trainingAdding more preventative quality control measures to their delivery processesConducting post-mortems on errors to understand the root causesSeizing opportunities to prevent errorsOn-going weekly training for their knowledge workers to discuss business rules, exceptions, processes, key lessons learned, tips & tricks etc.A full review of all processes to find and eliminate root causes of errorsSimulations in a “Top Gun” environment where errors are created in clean data sets and the knowledge workers have to find and fix them. Not all errors are actually errors though, with some trick questions thrown in.Automation of data management processes based on lessons learned to reduce risk of human error.
- Tele-tech services provide billing intermediation services for long haul carriers in the US.They have achieved 100% accuracy in their data and have made the quality of the information they have provided a key selling factor in their services. Through working with their customers they have also identified other business opportunities and services that they have managed to derive from the high quality information they produce.The fact that they don’t’ have to spend time checking and correcting errors or processing refunds means they have had the slack in their business to build greater success based entirely on the trust they have developed as a proven provider of quality information.
- This is the value proposition for IQ for a utility company which recently lost a high profile case in the Court of Appeal in England & Wales.
- When we reflect on our objectives and our alignment, we need to be sure we are seeing the full picture…