1. What’s the price of bad customer data ? Breakfast Session 15 September 2009 Hotel Sofitel Brussels

6. The threats (1/2) « Data Quality problems cost U.S. businesses more than $600 billion a year. » (TDWI) « NASA lost its $125M Mars Climate Orbiter because one group of engineers used kilograms and meters, while another used pounds and feet. The error caused the spacecraft to fly too close to the Martian surface where it either burned up or broke up as it swung around the planet. » « Rogue trader lost $691 Million due to lack of data governance. » « Average costs per data mart are $1.5M to $2.0M and a data mart consolidation initiative can reduce costs by 50%. » (META Group) « Master data problems leads to $250M law suit of a large investment bank. » Client Challenges

7. The threats (2/2) « Overcharging customers due to master data issues lands a large utility in a $1B law suit. » « For the U.S. grocery industry, up to 1 percent of net revenue lost, and one in 2,000 of sales lost because the item was out of stock, were attributable to bad master data. » (Gartner) « Retailers and manufacturers can reduce their current supply chain costs by 1 to 3 percent depending upon their current state. » (GCI) « Inaccurate and time consuming product information exchanges between CPG trading partners caused an estimated $25M - $50M in extra costs across the supply chain. » (AT Kearney Study) « 30% of all operational errors are due to poor information quality. » (Reuters) Client Challenges

13. DM&A Capability Definitions How we respond Data Security is the processes and technology to protect data from unauthorized access, viewing, modification or deletion whether the intent is accidental, intentional, or malicious. Data Security initiatives should be in concert with enterprise-wide Security efforts including physical security, network security and technology security. Data Security Data Quality is the ability of data to satisfy the stated business, system, and technical requirements of an organization. Data Quality is typically measure in terms of completeness, timeliness, accuracy, consistency, relevance, and integrity. Data Quality Master Data is the fundamental business data in an enterprise. Master Data is typically long-lived and used across multiple applications. Master data can also be considered the language of doing business – the business objects and classifications that describe overall business information. Well-managed Master Data typically consists of hundreds of categories including customers, products, suppliers, key performance indicators, etc. Metadata is structured information about data or, simply, “data about data”. Master Data & Metadata Data Architecture is the processes, systems and human organizations required to store, access, move and organize data. Data Architecture Data Structure is how data is organized in a specific enterprise. The Data Structure includes multiple levels of an enterprise ranging from overall corporate data models down to the level of an individual system. Data Structure Data Governance is how an enterprise oversees its data assets. Governance includes the rules, policies, procedures, roles and responsibilities that guide overall management of an enterprise’s data. Governance provides the guidance to ensure that data is accurate & consistent, complete, available, and secure. Data Governance

19. The threats (1/2) « Data Quality problems cost U.S. businesses more than $600 billion a year. » (TDWI) « NASA lost its $125M Mars Climate Orbiter because one group of engineers used kilograms and meters, while another used pounds and feet. The error caused the spacecraft to fly too close to the Martian surface where it either burned up or broke up as it swung around the planet. » « Rogue trader lost $691 Million due to lack of data governance. » « Average costs per data mart are $1.5M to $2.0M and a data mart consolidation initiative can reduce costs by 50%. » (META Group) « Master data problems leads to $250M law suit of a large investment bank. » How we respond Data Quality Data Governance Data Governance Data Architecture Master Data & Metadata

20. The threats (2/2) « Overcharging customers due to master data issues lands a large utility in a $1B law suit. » « For the U.S. grocery industry, up to 1 percent of net revenue lost, and one in 2,000 of sales lost because the item was out of stock, were attributable to bad master data. » (Gartner) « Retailers and manufacturers can reduce their current supply chain costs by 1 to 3 percent depending upon their current state. » (GCI) « Inaccurate and time consuming product information exchanges between CPG trading partners caused an estimated $25M - $50M in extra costs across the supply chain. » (AT Kearney Study) « 30% of all operational errors are due to poor information quality. » (Reuters) How we respond Master Data & Metadata Master Data & Metadata Master Data & Metadata Master Data & Metadata Data Quality

21. Data Governance Definitions DM&A Definitions Data Ownership is the responsibility for the creation of the data, and the enforcement of enterprise business rules. Data Owners usually refers to the business owners of Master/Business Data. Data Ownership Data Stewardship is the accountability for the management of data assets. Data Stewards do not own the data; instead they are the caretakers of the enterprise data assets. The Data Stewards ensure the quality, accuracy and security of the data. Data Stewardship Data Governance is how an enterprise manages its data assets. Governance includes the rules, policies, procedures, roles and responsibilities that guide overall management of an enterprise’s data. Governance provides the guidance to ensure that data is accurate & consistent, complete, available, and secure. Data Governance Data Standards are the precise criteria, specifications, and rules for the definition, creation, storage and usage of data within an organization. Data Standards include basic items like naming conventions, number of characters, and value ranges. Data Standards may also dictate specific quality measures, retention rules, and backup frequency. Data Standards Data Policies are the high-level and/or detailed rules and procedures that an enterprise utilizes to manage its data assets. Data Policies might include adherence of data to business rules, enforcing authentication and access rights to data, compliance with laws and regulations, and protection of data assets. Data Policies

22. Data Structure Definitions DM&A Definitions Data Taxonomy is the classification of data within an enterprise. An alternate definition is that Data Taxonomy is the terminology used within an enterprise when looking at its data. Data Taxonomy applies to both structured and unstructured data. The Data Taxonomy could be the product catalog including components and part numbers (structured data) and it could be the classification or grouping of documents (unstructured data). Data Taxonomy Data Modeling is the creation of Data Models that capture business requirements and present them in a structured way. Data Modeling enables an enterprise to communicate its data entities, attributes, and relationships, support system development and maintenance projects, and underlay most enterprise data initiatives. Data Modeling is generally done at both the Enterprise and Business Unit levels. Data Modeling Data Structure is how data is organized in a specific enterprise. The Data Structure includes multiple levels of an enterprise ranging from overall corporate data models down to the level of an individual system. Data Structure

23. Data Architecture Definitions DM&A Definitions Data Storage is the physical storage of data on an enterprise’s (or outsourcer’s) hardware. Data Storage Data Access is the various mechanism used to view, add, change, or delete data. Data Access includes transactional, analytical, and archival systems. Data Access Data Migration is the automated movement or migration of enterprise data such as from a transactional data base to a specific data store. Data Migration is sometimes defined to also include the migration of data from transactional systems to data archives. Data Migration Data Architecture is the processes, systems and human organizations required to store, access, move and organize data. Data Architecture Data Retirement is the removal of data from Data Storage. Data Retirement is not simply the deletion of data. Data Retirement is a process that may include long-term retention of key information and historical data for future analysis or reuse. Data Retirement must adhere to Local and National laws especially as it relates to Data Privacy. In some circumstances, data may be unretired such as a transaction with a former customer. Data Retirement Data Archiving is the storage of an enterprise’s data on a secondary storage medium. Data is archived to minimize the cost of online data storage. Depending on the archiving process and technology, archived data can be accessed in near real-time or only after an extended period. Data Archiving

24. Master & Meta Data Definitions DM&A Definitions Metadata is structured information about data or, simply, “data about data”. Metadata DM&A considers Reference Data to be a form of Master Data. Reference Data can sometimes be defined as code/decode data or external coded information. Reference Data Master Data is the fundamental business data in an enterprise. Master Data is typically long-lived and used across multiple applications. Master data can also be considered the language of doing business – the business objects and classifications that describe overall business information. Well-managed Master Data typically consists of hundreds of categories including customers, products, suppliers, key performance indicators, etc. Master Data Metadata Management is the tools and processes used to manage Metadata. Typically there are three types of Metadata that is managed: 1) Business metadata; 2) Technical metadata; 3) Operational metadata. Metadata Management is used to define, create, update, migrate, and disseminate metadata throughout an enterprise. Metadata Management DM&A Considers Reference Data Management to be synonymous with Master Data Management. Reference Data Management Master Data Management (MDM) is the collection of processes and technology that ensures that Master Data is coordinated across the enterprise. MDM provides a unified Master Data service that provides accurate, consistent and complete Master Data across the enterprise and to business partners. Master Data Management

25. Data Quality Definitions DM&A Definitions Data Monitoring is the automated and/or manual processes used to continuously evaluate the condition of an enterprise’s data. Information obtained from Data Monitoring activities is used to plan and focus data improvement initiatives. Data Monitoring Data Compliance is the ongoing processes to ensure adherence of data to both enterprise business rules, and, especially, to legal and regulatory requirements. Data Compliance includes 4 items: Controls, Audit, Regulatory Compliance & Legal Compliance. Data Compliance Data Traceability is the tracking of the lifecycle of data to determine and demonstrate all changes and access to the data. Data Traceability helps an enterprise demonstrate transparency, compliance and adherence to regulation. Data Traceability along with Data Compliance can be considered part of a Data Audit process. Data Traceability Data Cleansing is the process of detecting and correcting erroneous data and data anomalies both within and across systems. Data Cleansing can take place in both real-time as data is entered or afterwards as part of a Data Cleansing initiative. Data Cleansing Data Profiling is the systematic analysis of data to gather actionable and measurable information about its quality. Information gathered from Data Profiling activities is used to assess the overall health of the data and determine the direction of Data Quality initiatives. Data Profiling Data Quality is the ability of data to satisfy the stated business, system, and technical requirements of an organization. Data Quality is typically measured in terms of completeness, timeliness, accuracy, consistency, relevance, and integrity. Data Quality

26. Data Security Definitions DM&A Definitions Data Retention defines the policies and rules that an enterprise utilizes to keep data online, in archives, and in backups. Data is generally retained for regulatory and legal reasons as well as for historical analysis or Business Intelligence. Data Retention Data Privacy is the legal right and expectation of confidentiality in the collection and sharing of data. Data Privacy is an evolving area with numerous local and national laws. Data Privacy is also known as Data Protection. Data Privacy Data Security is the processes and technology to protect data from unauthorized access, viewing, modification or deletion whether the intent is accidental, intentional, or malicious. Data Security initiatives should be in concert with enterprise-wide Security efforts including physical security, network security and technology security. Data Security