What is the value of data? Data governance must look beyond master data to deliver real value.
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2. What is Master Data Management?
“A business capability
enabling an organization to
first identify trusted master
data and then leverage
master data to improve
business processes and
decisions.”
Forrester
3. What is Master Data?
• Identifying features
• Product
• Brand
• Packaging
• Reusable features
• Ingredients
• Allergens
4. Why is governance critical for MDM?
• Customer?
• Debtor?
• Employee?
• Supplier?
Data that will be reused for
multiple purposes brings unique
challenges
•Politics
• Accountability
•Data Quality
• Consistency
• Completeness
•Technology
• Data integration
• Data deployment
5. Data governance addresses these issues
An emerging discipline
surrounding the
management of data in an
organisations
• People
• Process
• Policy
• Technology
6. Intuitive Data Governance
I can’t
work with
this
rubbish
The data is
great
These
figures
look
suspicious
…
What am I
doing
here?
“Some one needs to fix my perceived problem!
7. Metrics driven governance
• Irrelevant metrics can
overwhelm
• 10 million client records
• 140 attributes
• 1% quality issue per
attribute
• >> 14 million issues
8. A value driven approach to
governance
• Limit metrics based on
• Context
• Support of business goals
• Prioritise based on impact
• Improve efficiency
• Realise additional value
• Reduce risk
9. However, Master Data has no value!
• How much did it cost?
• What was the depreciation?
• What is the insurance risk?
• What was the profit margin?
• How big is the target market?
• How many did we sell?
10. The Data Excellence Framework
A framework developed to guide the data
stream of a global ERP project
• 7 year project
• 207 countries brought into 1 view
• Data Management was a key stream
For just one ingredient, vanilla, its American operation was able to reduce the number of
specifications and use fewer suppliers, saving $30m a year. Overall, such operational
improvements save more than $1 billion annually.” Nestlé’s Chris Johnson
11. Strive for a value driven culture means
connect your business, data and organization
1
1
Secure very strong
alignment between
business and data
Get deep understanding of
value and business impact
of your data
Establish very clear
accountability and
responsibility for your
data
12. The implementation process
three steps to maximize the value of your enterprise data
1
2
1. Align & Link 2. Measure & Visualize
Contextual polarization
3. Organize & Execute
Define Business
Excellence
Requirements
Measure Data
Compliance
Publish
& Evaluate
Business Impact
Fix Issue
Business
Management
Analyze Root
Cause
Data
Management
Stewards
IT
Operations
13. Step 1 : Align and Link
align data with business objectives
through business excellence requirements
1
3
The Business Excellence Requirement
(BER) is the backbone of the Data
Excellence Framework
The business excellence requirement is a
prerequisite
business rule
standard
policy
best practice
to achieve business goals
14. Step 2 : Measure and Visualize
measure the data and visualize its value and impact
for each business context
1
4
DEI -Data
Excellence
Index
KVI - Key Value
Indicator
An instrument to measure the degree of
compliance between the live data
records and current Business
Excellence Requirements (BER)
An instrument to measure the business
value and business impact of the DEI
A context driven visualization of the DEI
Contextual and KVI results
Polarization
15. Step 3 : Organize and Execute
establish accountability and responsibility at all levels
1
5
Accountability Responsibility
The willingness and commitment of
business executives to be accountable for
the definition and management of the
business excellence requirements of their
area and related KVI targets.
The willingness and commitment of data
managers to be responsible for individual
data records assuring the compliance with
Business Excellence Requirement
16. Step 3 : Organize and Execute
adopt a way of working through collaborative networks
Data Accountable Data Steward / IT Data Steward
1 - Define BER
1
6
2- Configure, Develop and
Refresh the Data
3- Measure Data
Compliance (DEI – KVI’s)
KVI
DEI
Data
BER
Intranet
6- Analyze Root Cause 5- Fix Issues
Intranet
4- Publish the Results and
Evaluate Business Impact
Repository
Data Steward Data Responsible Data Steward
17. Conclusion
• Focus is critical to MDM success
• Governance by value is a pragmatic approach
to identify focus areas
18. Business Case – Global 500 Distribution
Group DEI Results
44 Business Rules included
• 70% Compliant
• 30% non compliant
Business Impact – Value (KVI)
• Total value: 84% of total turnover (8 billion)
• Total Impact: 16% of total turnover (1.6
billion)