A CDO Primer: How to Succeed as a Chief Data Officer

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1 A CDO Primer: How to Succeed as a Chief Data Officer Joseph M. Bugajski Managing Vice President Gartner, Inc. 30 May 2012 The CDO s role is to be the executive guarantor of the enterprise s information value, integrity, reliability, interoperability and authenticity. 1

2 A CDO s Primer Justify the chief data officer s (CDO) role. Understand the business s data problems Build the data governance program Direct data management programs Build a CDO roadmap Summary and discussion Justify the CDO s Role CDO Primer 2

3 Find Burning Bridges and Tell Everyone about Them Governments Example Explain how poor quality data adversely effects the business of government. Information quality errors: incentive checks incorrectly sent to 89,000 dead people and prisoners U.S. American Recovery and Reinvestment Act of

4 Business Example Help businesses to see the bottom line value brought by a successful CDO. Airbus A380 delays Data integrity problems associated with Rear fuselage not fitting on the aircraft 2 year delay with costs in excess of $6 billion Regulated Industries Research Reference Gartner s research to illustrate the ubiquity of the data quality challenge. $100M+ $50M+ $10M+ $10M+ Don't Know Estimated annual costs for data quality issues Source: Findings From Primary Research Study: Data Quality Issues Create Significant Cost, Yet Often Go Unmeasured (G ) 4

5 Understand the Business s Data Problems CDO Primer Learn from Others Meet with executives to learn their concerns. Talk to businesspeople about data problems. Listen to IT s complaints about data. Summarize and prioritize the issues for investigation 5

6 Analyze Data Architecture Investigate data architecture to find the gaps between the business s and IT s views of the data. Analyze Data Quality and Reliability Use business intelligence (BI) systems to measure data quality for marketing, finance, production, and service operations 6

7 Analyze Data Quality and Reliability Dig deeply into the business systems to understand the extent of the data problems: do primary business systems require major overhaul? Value recovered ($,000) Build a Compelling Business Case IQ Cumulative Value Net of Cumulative Costs No. calendar quarters since governance launch 7

8 Build the CDO and Data Governance Programs CDO Primer Organize for Effective Data Management Data governance council CDO Data quality leader Chief data architect Solutions manager Program manager Governance leader BI Program manager Business analytics leader 8

9 Teach the Meaning of Data Governance Data governance provides a systematic way for an organization to make its decisions. Governance establishes decision-making rights, authorities, responsibilities, and precepts, and it codifies those precepts as principles, policies, standards, processes, guidelines, and consequences for non-compliance. It relies on people to use precepts and processes to handle ambiguity, balance short-and long-range goals, and mitigate conflict within an organization. Build CDO Office s Charter CDO s governance framework Governmental regulations Corporate bylaws and policies Data governance Principles Standards Policies Guidelines Mandatory Optional 9

10 Organize the Data Governance Council Define roles, charters, principles and policy Provide funding and project authorization for data improvements Discuss cultural issues Approve the data governance program budget Empower a Data Governance Work Group Make data governance successful (e.g., write precepts and manage precept exceptions) Endorse precepts for approval by data governance councils Monitor information quality and reliability Review CDO and governance program budgets. 10

11 Assign Data Stewardship Responsibilities Data stewards should be business managers Assign Data Custodianship Responsibilities Data custodians are IT leaders. 11

12 Direct Data Management Programs CDO Primer Direct the Data Management Programs 12

13 Establish a CDO Reporting Framework Data Governance Program: Quarterly Report 2 nd Quarter 2014 CDO Roadmap Data Governance 13

14 The CDO s Roadmap Build a vision for success raise awareness Survey data creators, consumers, and custodians Analyze selected data element and systems Learn the compelling stories repeat them often Choose a problem and correct it Learn from failures and roll-out governance Summary and discussion CDO Primer 14

15 Summary Seek common ground with peer executives; agree to initial goals. Build a CDO team: data governance, quality, and architecture, program, and master data Assign roles to business and IT staff Stewardship: Business people Custodianship: IT people Require data measures and quarterly reports Summary Think big but start small Establish a tactical team Choose one problem One concept: customer, codes Three systems: 1 source, 2 sinks Learn business requirements Develop a business case Design the CDO program Establish controls 15

16 Recommendations Adapt data governance to the culture. Remember that behavioral change forces people to erect roadblocks. Strategize ways to remove the roadblocks before the CDO program launches. Execute data governance programs using: Tried and true improvement processes Rationalized data sources for remediation Good data definitions conceptual, logical, and physical Quality metrics and the right tools to measure value Discussion CDO Primer 16

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