MANAGING CROSS-AGENCY DATA IN TAX COMPLIANCE JIM BLAIR TERADATA SR. CONSULTANT

Transcription

1 MANAGING CROSS-AGENCY DATA IN TAX COMPLIANCE JIM BLAIR TERADATA SR. CONSULTANT

2 Agenda Defining The Problem Cross Agency Opportunity Governance for Cross Agency Use case Wrap-Up / Q & A 2 Confidential Do Not Distribute Without Permission

3 from Many Agencies Structured and Unstructured Dept of Human Services Dept of Health Dept of Labor i.e. Audit and Fraud Leads Dept of Justice Dept of Revenue Professional Licenses 3 Confidential Do Not Distribute Without Permission

4 Harsh Reality about Many Decisions Recognize the data challenges 47% No confidence in data 59% Missing information 42% Use the wrong information Gartner, Forrester, B-eye-Network 4 Confidential Do Not Distribute Without Permission

5 The Won t Manage Itself The problem: Independent agencies have deployed disparate systems without attention to the impact on overall crossagency data architecture and integrity The result: The business is unable to answer cross-agency business questions The business has less confidence in the quality of the data and the decisions based on the data Technology complexity and costs become excessive It is challenging to comply with regulatory policies Establishing a trusted, integrated view of information requires more than technology; it requires political will and agency involvement! 5 Confidential Do Not Distribute Without Permission

6 Cross Agency Governance Cross Agency makes Governance even more important (privacy, access, controls, commonality) Cross Agency requires new Steward roles (DOH Steward, DOJ Steward, DVM Steward. Governance decisions around Cross Agency > Who is the sponsor for Governance around Cross Agency? > Who has Support for which data? > How long do I keep the data? > Who can look at the data? > What data can be used? Dept. of Justice Dept of Human Services Professional Licenses > What if asked to delete the data? 6 Confidential Do Not Distribute Without Permission

7 Challenges of Cross Agency without Governance No single strategy for use No consistent prioritization No visibility into Inter-dependence End to end takes to long = Shadow projects! Limited accounting for operational disruption New silos create their own decisions Outcomes clouded across life cycle continuum Planning, development, implementation, Operationalization, reuse 7 Confidential Do Not Distribute Without Permission

8 Governance Considerations for Cross Agency Strategy with business value ROI, Time to Market, Risk Organizational Model Stakeholders, Stewards Policies and Processes Privacy, Risk, Retention Owners Measure and Monitor Completeness, Timeliness Technologies What platforms does the data come from Information Lifecycle (SDLC controls) Birth to death - How will the data live When it comes to Governance.. Cross Agency has all the characteristics of other data, Except Complexity is expanded and Variety of channels increases 8 Confidential Do Not Distribute Without Permission

9 Agency Alignment with Cross Agency Governance Tie to business value to New enabling technologies Incorporate tools, processes, and technology to manage Big Continue maturation of Tools such as Quality, Profiling Establish Fit for Purpose perspective Classify ALL data according to Business Use IT and the Business must collaborate Assign owners How will the data be accessed, stored, secured, backed-up, retained, deleted 9 Confidential Do Not Distribute Without Permission

10 New people in Cross Agency Governance Stakeholders & Owners Dept. of Justice Dept. of Human Services DMV Dept. of Labor Dept. of Revenue Stewards For each of the above Identification of erroneous - fix or not? Acceptable use of Cross Agency Job Roles and Descriptions for all new roles (formal) 10 Confidential Do Not Distribute Without Permission

11 Enterprise Management Framework for Cross Agency EDM Framework 1. Quality Ensure data is fit for its intended business use. 2. Integration Ensure data is provisioned and combined from different systems to create and deliver an integrated view of data regardless of source. 3. Security and Privacy - Ensure data is secure and confidential. 4. Metadata Management Ensure data is provided with consistent, accurate and complete contextual information. 5. Master Management Ensure a single view of reference data across the enterprise. 6. Modelling Ensure data is selected and organized in an effective and purposeful way. Master Mgmt. Governance Modeling Metadata Mgmt. Integrated and Trusted Information Quality Security and Privacy Stewardship People, Processes, and Technology Integration EDM delivers integrated and trusted information 11 Confidential Do Not Distribute Without Permission

12 3 Key components for Cross Agency Commonality EDM Framework Governance Modeling Quality Quality Master Mgmt. Integrated and Trusted Information Integration Metadata Mgmt. Security and Privacy Security Stewardship People, Processes, and Technology 12 Confidential Do Not Distribute Without Permission

13 Quality Core Dimensions Accuracy data represents reality correctly Completeness data gaps are minimized and data subjects are covered adequately Timeliness data is stored in system within an acceptable time from the business event Consistency data is defined and reported with the same meaning and values across the enterprise Master Mgmt Architecture Metadata Mgmt Governance Integrated and Trusted Information Stewardship Quality Security and Privacy Integration Governance determines the focus of data quality improvements based on business value Stewards provide business understanding of assigned data domains 13 Confidential Do Not Distribute Without Permission

14 Quality Improvement Process Step 1: Select/Define Step 2: Profile Step 3: Analyze????? No. of Errors Value Step 6: Monitor/Trend Step 5: Fix Root Causes Step 4: Trace Root Causes Error count Time People Process Information Technology Ensure is fit for it s intended use! 14 Confidential Do Not Distribute Without Permission

15 Security Core Dimensions Security Policies and Procedures Certification and Accreditation Auditing and Monitoring Network Security Internal & external, Intrusion Detection and Protection Vulnerability Management Base Security Authentication, Access Rights, Encryption Master Mgmt Architecture Metadata Mgmt Governance Integrated and Trusted Information Quality Security Integration Stewardship Security and Privacy Corporate organization determines level of security Owners determines the level of Access Stewards monitor access 15 Confidential Do Not Distribute Without Permission

16 Commonality Across Agencies: a.k.a. Master Management Adding new Agencies as sources Often causes overlapping data Inconsistent means of identification and classification across agencies Achieving a single view of the cross agency data is difficult without governance Common format issues Common definition issues Common Transformation issues Master Mgmt Architecture Metadata Mgmt Governance Integrated and Trusted Information Stewardship SOLUTION = Centralized data governance Quality Security Integration Management of COMMON data from cross agencies is the most frequent source of inconsistency and poor quality data due to lack of governance. Security and Privacy 16 Confidential Do Not Distribute Without Permission

17 What about BIG in a Tax Agency? Structured and Unstructured Call Center Web Logs i.e. Audit Leads Nexus Payments Work Papers Customs Case Notes Correspondence & s 17 Confidential Do Not Distribute Without Permission

18 Governance applies even more to Big Ø Must have New Owners Ø Decide access, quality levels, retention policies, etc Ø Must have Stewards Ø Act on data quality issues Ø EDM components stay the same and are all considered Ø Ø Ø Ø Ø Ø Quality Integration (What gets consolidated and integrated Security (new levels, more data, personal data) Meta (a must have!) Master (to include or Not to include) Modeling (or recognition of lack thereof) Ø Must be Measured and Monitored Ø New Technology considerations Ø Information Lifecycle controls Ø Birth to death - How will the data live When it comes to Governance.. BIG DATA has all the characteristics of CROSS AGENCY data, Except technology AND Complexity is expanded 18 Confidential Do Not Distribute Without Permission

19 Technology connects Cross Agency data across Networks, Clouds, External servers and Firewalls DHS DOJ Dept of Revenue Professional Licenses DMV Warehouse 19 Confidential Do Not Distribute Without Permission

20 Sharing via Enterprise Warehouse The EDW enables the linking of data across multiple data sets and the sharing of data among multiple State Departments. Department of Community Health (MDCH) Department of Human Services (DHS) Department of Corrections State Police State Court Administrators Office Department of Natural Resources Department of Licensing and Regulator Affairs Secretary of State Department of Treasury 20 Confidential Do Not Distribute Without Permission

21 Big Saving Real Dollars: State-wide Consolidation and Analytics in Michigan Impact Michigan s Teradata Enterprise Warehouse (EDW) consolidates data from many separate Michigan agencies. Michigan s EDW generates millions in annual savings utilizing analytics. One example: reduced administrative costs for the Medicaid program by 25%. 21 Confidential Do Not Distribute Without Permission

22 Advanced Analytics and Operational BI Applications: Michigan Using the Enterprise Warehouse: Michigan s has implemented innovative fraud detection methods. EDW assisted in the identification of more than $70 million dollars in fraudulent child care. With the addition of new advanced analytical software tools, such as Predictive Analytics and IBM s Initiate Master Patient Index (MPI), the State is positioned to gain even more value from the EDW to address our challenges. 22 Confidential Do Not Distribute Without Permission

23 Sharing via Enterprise Warehouse: Michigan Department of Treasury Uses of EDW Evaluate legislative tax proposal to determine tax revenue implications to Michigan. Running tax simulations to evaluate possible revenue replacements Identify and track revenue collections patterns, trends, and anomalies. Ensure tax compliance. Their tax auditors now review over 452,000 returns annually. Before using the warehouse, they were only able to review of 6,000 paper files. 23 Confidential Do Not Distribute Without Permission

24 Sharing via Enterprise Warehouse: Michigan Judicial Warehouse Name Search Application an indispensable part of the management of Michigan s Court System. Users include: Department of Corrections Michigan State Police Prosecutors Attorney General County Sheriff Departments Department of Labor and Economic Growth Friend of the Court DHS Inspector General DHS Child Welfare Services DCH Medicaid fraud 24 Confidential Do Not Distribute Without Permission

25 Sharing via Enterprise Warehouse: Michigan s RESULTS Michigan has achieved concrete and impressive business results from its innovative use of the EDW to > Manage Fraud > Reduce costs > Streamline operations > Manage problems The EDW is intricately and integrally woven into the data of more than 7,000,000 Michigan citizens State and Court employees, Michigan program beneficiaries External vendors and providers 25 Confidential Do Not Distribute Without Permission

26 HOWEVER..avoid another fine mess! Without a proper Governance Process for Cross Agency. The zest to spearhead new projects can unleash a mess of trouble misleading data and unexpected costs! "That's another fine mess you've gotten us into." Oliver Hardy, of Laurel and Hardy fame 26 Confidential Do Not Distribute Without Permission

27 Thank You!! What will you do different TOMORROW? Questions?? 27 Confidential Do Not Distribute Without Permission