Dare to Share: Putting the Data into Data-Driven Services. Adopting master data management technology to rise to the challenge of austerity

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1 Dare to Share: Putting the Data into Data-Driven Services Adopting master data management technology to rise to the challenge of austerity

2 SUMMARY Catalyst Local authorities across the UK are being tasked with meeting the challenge of managing the demands and rising expectations of the citizen whilst facing budget cuts of up to 50% of baseline spend. What is becoming ever more apparent through this process is that local government organisations need to think differently about their approach to meeting these targets. The key is in abandoning the salami slicing method of budget reduction in favor of seeking out technology enablers that drive tangible returns in the shape of lowering operational costs and optimising income. One such technology that is garnering interest across local authorities is Master Data Management (MDM). Information has become a critical asset for councils as it increasingly underpins every transaction, business process and strategic decision. The ability to create a consistent and complete view of data assets across the enterprise is becoming ever more paramount as councils seek to understand and make better decisions around the consumption and provision of services, whilst ensuring those at the sharp end of service delivery are no longer left stranded by missing, incomplete or inaccurate customer information. MDM is becoming a better understood discipline across local government as initiatives continue to emerge, gather pace and deliver results. But in order to derive the full benefits of MDM council s need to balance the tactical, short term, quick wins available within clusters of departments with a longer term vision of how the initiative can be rolled out across the organisation at large. One thing is clear though; the benefits of mastering your data assets become ever more apparent as the scope of the project broadens. Ovum view Errors connected to the timeliness, completeness and accuracy of data cost local government organisations. Ovum finds that the nature of the cost to councils can vary from the easy to measure impact of data discrepancies in identifying cases of fraud and error, through to the slightly less tangible efficiency savings in staff time as a result of being able to handle citizen enquiries at the first point of contact. The fact is that whether you are looking at income optimisation or customer services both are examples of important business processes and both are ultimately data-driven processes. This perhaps makes it surprising that data improvement is often perceived as a problem for the IT department to sort out, with business users seen to be reluctant to engage on the issue. This is an important debate as it pertains to the development of a successful MDM program. The challenge centers on winning the hearts and minds of business users at the outset of an initiative to ensure that the appropriate level of collaboration occurs. MDM projects by their very nature are about more than just technology. They will involve a significant amount of people and process change that simply will not be achievable without a healthy level of business buy in and executive sponsorship. As a direct result it is important to spend time with business users when shaping your initiative to understand their key challenges so that you can create a project vision that is centered around business need. The good news is that business attitudes to data improvement are changing. Senior management and line-of-business owners are increasingly becoming involved in data management strategies, bringing important knowledge of how data is used and how it can be of benefit to citizen interactions and the 2014 Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 2

3 wider organisation. It is this collaborative approach that will drive progress for information management initiatives. As the market for MDM matures those responsible for making purchase decisions need to be able to cut through the vendor jargon and understand how the technology can scale to meet the wider objectives of the organisation. Many local authorities are yet to take an enterprise-wide approach, but more and more are starting to seek guidance on how to advance fledgling areas of success into broader more structured initiatives. As a result, MDM and data governance are rapidly moving up the agenda as business users realise that the right information at the right time would benefit from an enterprise-wide strategy. Key messages Local government organisations can no longer afford to ignore the challenge of data fragmentation in the face of rising demand for improved outcomes and efficiencies. Project leaders need to start with the end in mind when scoping MDM initiatives by building a broader vision based on business need. Before embarking on an MDM program, local government agencies need to make decisions about what data to master and, importantly, why. Collaboration between business and IT users is essential to drive a successful project outcome. MDM projects are about more than just technology. Consideration needs to be given to change management regarding both people and processes. Finding the right place to start an MDM initiative is important in building momentum towards enterprise-wide uptake. INFORMATION MANAGEMENT REMAINS A CHALLENGE FOR LOCAL GOVERNMENT Investment in information management is a priority It is widely recognised across local government that fragmented and inconsistent data undermines an authority s ability to deliver services. It can also lead to a duplication of effort and resource allocation when providing services to citizens, culminating in sub optimal value for money for the taxpayer. According to Ovum s ICT Enterprise Insights survey, data quality, profiling, management, and integration technologies continue to be key areas of investment for public sector enterprises. The survey indicates that most enterprises have made some form of investment in information management tools. In fact, a significant number of respondents are now looking to invest further, and are considering how best to develop data quality and data management tools to enable a single, trusted view of data across the enterprise, and to manage the end-to-end lifecycle of data Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 3

4 Figure 1: Government IT investment plans for information management / BI systems Source: Ovum The continued prioritisation of investment is a good indicator that managing data is becoming a mission-critical requirement for local government organisations. Ovum believes this is set to become even more pivotal as local authorities attempt to leverage the cost savings and customer satisfaction improvements associated with the digital services agenda. Addressing data fragmentation Although the challenge of managing data is not unique to local government, the problems have been amplified due to services being developed in silos from each other, and independently across local government organisations. This is understandable as departments have been focused in on delivering a particular service but has introduced a degree of complexity that has been compounded by the historic approach taken to procuring IT designing and building platforms to undertake specific tasks in isolation, and a risk-averse approach to the handling of data. In response, local government decision-makers have looked to IT for investment in data quality tooling exercises to ensure that the data is fit for purpose. Many enterprises now realise that this approach can act as a barrier to broader citizen insight, as what is fit for purpose for one business process is not necessarily consistent with another, leaving local authorities with an almost insurmountable challenge to join the dots particularly at the point of customer contact Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 4

5 In response to this, MDM and data governance frameworks are more frequently appearing on the radar; as agencies are starting to realise that having the right information at the right time can bring benefits to users of local government services and generate efficiencies. Daring to share MDM programs can also be an enabler to interagency working which is high on the agenda of senior leaders within the public sector. Ovum has found that a range of local authorities are already sharing data to provide improved social outcomes for citizens. Increasingly local authorities need to think outside of the four walls of their own council in order to realise the complete benefits of collaboration and create the services required for the 21 st century. It would be misleading to say that sharing data across agency boundaries is straightforward. But as protocols around data sharing continue to develop we are now seeing a range of approaches evolve to address multi-agency working. These range from the basic formal co-ordination of data within individual units through to the creation of formal hubs that utilise real-time information sharing on which decisions can be made, such as Multi Agency Safeguarding Hubs (MASHs), a program aimed at streamlining referral routes as part of the protection of at-risk children. Programs such as MASH rely on access to increasing volumes of data from a wide range of sources to reveal new patterns and correlations. This enables local authorities to better target challenges that cut across several services or to improve process and remove duplication. Having access to a consistent view of citizen information is essential for agencies to make better decisions, increase staff productivity, and improve outcomes for all. However, these programs depend on a single, true view of citizen data; MDM activities can help to facilitate projects of this nature. Sharing information is an important route to creating efficiencies, process improvements, and outcomes for citizens. Figure 2 highlights some of the areas that local government organisations can benefit from through sharing data. These include a reduction in errors that can result in overpayments of benefits or being denied access to a service the citizen is entitled to; improvements to customer interactions at the first point of contact; and simplification of data collection therefore reducing the burden on citizens Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 5

6 Figure 2: Potential improvements from data-driven outcomes Saving time Reducing time to identify citizens Reducing duplication in CRM records Time savings in inter-agency case meetings Saving lives Improved access to case information Reduciton in administration times Support for early intevention Saving money Channel shift reducing operational costs to serve More effective care for the elderly Identify fraud and error Increased productivity Source: Ovum Momentum is key to a successful enterprise roll out Arguably the most important decision in rolling out any data management initiative is finding the right place to start. Like any investment in technology the business will expect outcomes and the more tangible return on investment you can create in the early stages of the project the better. By delivering quantifiable results in the initial phases of the project you will inevitably create momentum and have the evidence to win round the sceptical business users that were unconvinced or uncommitted in the initial scoping phases of the broader initiative. MDM is increasingly being viewed as an enterprise-wide program but no-one with any experience would advocate a big bang approach to rolling out such an initiative. Attempting to boil the ocean will only lead to a project that stalls and ultimately struggles to meet business expectations. Some of the common target areas for launching MDM type initiatives and possible outcomes are highlighted in Table 1 below. Table 1: Targets for launching an MDM initiative Customer Services: Full picture of the citizen enabling resolution at first point of customer contact Reduction in repeated calls by avoiding avoidable contact Improved customer profiling to offer a more personalised service Optimised strategic decision making through understanding of service consumption 2014 Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 6

7 Council Tax: Identify potential cases of fraud and error regarding Single Person Discount in a timely fashion Clarify where data discrepancies exist around those claiming vacant property exemptions Increase collections by contacting lapsed accounts within 3 months Proactive contact with new residents to inform them of council tax requirements Create a single view of debtors to better understand their circumstances Social Care: Improve the productivity of interagency case meetings Keep the elderly independent for longer, responsibly, creating cost savings Reduce administration and assessment times Create full case histories that support on-time intervention OWNING THE DATA MANAGEMENT CHALLENGE IN LOCAL GOVERNMENT Leadership is required if organisations are to make progress As local government organisations start to focus on data improvement programs, the inevitable question arises as to who owns the data management challenge. Answers to this question of ownership are not easy to find - particularly when considering a panenterprise view. But local government organisations must ensure the appropriate level of leadership and expertise is in place to create a sustained effort capable of overcoming the complexity associated with data improvement initiatives. The emergence of the CDO in local government As data becomes more integral to the operation of private sector organisations we have seen the emergence of the Chief Data Officer (CDO) role a board level position accountable for all information assets within the organisation. The early adopters in this space have tended to come from the more heavily regulated industries such as Financial Services, Telecoms and Utilities, driven by the compelling need to achieve the corporate wide governance of information. But the fragmented nature of local government organisations coupled with the powerful outcomes that can be achieved from leveraging data assets could mean that councils fall next into line. In fact Ovum has started to see authorities where senior IT leaders have taken on responsibilities similar to a CDO in all but name. Like their private sector counterparts they also face the difficulty of striking the balance between IT and business; technology and strategy. They are also confronted with the need to keep data management costs low, while observing the compliance demands placed on the authority. It is not important where the leadership comes from, be this the CEO, CFO, CIO, CDO, or a special projects team tasked with implementing data management solutions. But the leadership should have the authority to act and influence across the enterprise whilst having the vision in place to convince application owners to share their data Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 7

8 Governance is key to the broader MDM program rollout Each line of business may have its own definition of what data ownership means. This can range from responsibility for the underlying data that is captured within applications and data warehouses through to the information architecture used to deliver the service. When implementing a shared or centralised MDM model, the consolidation of information to provide a single point of truth implies that the traditional ownership model has to change. This requires authorities to clearly define accountability and responsibility frameworks before the relinquishing of ownership from service lines. This does not mean that without effective governance the MDM program will fail, but in all likelihood it will struggle to achieve its full potential. It is vital that the MDM governance framework be set early in the process, and cover the end-to-end lifecycle of data from its creation to deletion. Setting the information policies and data rules that determine the business polices that relate to data is also critical. Any structure should include the formal definition of roles and responsibilities too, ensuring the MDM program is seen as part of not just IT but the wider corporate governance processes. For local government managers, relinquishing control of the data does not mean surrendering control of systems or responsibilities, but it does require the agency to formalise how it addresses the management, availability, usability, integrity, and security of data. ENSURE YOU HAVE THE RIGHT SUCCESS METRICS IN PLACE Concentrate on metrics that matter to the wider organisation MDM initiatives should always be grounded in what value the initiative brings to the organisation. Too often teams responsible for data improvement look to convert existing metrics for data quality into a new project. However, it is difficult to gauge the value of responding to any data quality issues that the implementation of an MDM approach might provide without a well thought-out agreement on the relationship between the metrics and the business objectives. Project leaders need to understand how end users of data define what is important in relation to achieving business objectives. This in turn requires an understanding of how the relevant data quality metrics impact business processes. At the outset of the project the business is likely to want to understand the known unknowns that are the essential starting point to benchmark improvements in service delivery. Examples of these might include: the number of unique citizens the authority services, the most commonly requested services, the number of enquiries handled at first point of contact, the cost of fraud and error on income optimisation and so on. Upfront consideration of quantitative measurement is important to articulating the eventual success of project outcomes. Timeliness and relevance of metrics will help to shape what is important The focus on data quality over other forms of measurement owes much to the belief that if you report on something it must be important. Relevance and importance of metrics will very much depend on your point of view; defining what is appropriate is often subjective. However, we believe that data metrics should address the following criteria to ensure they are robust: 2014 Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 8

9 Relevance to the business Ability to reset the metric Discrete and clearly defined Transparent and accessible Informative and timely Ultimately what and how you measure program performance needs to be set within the context of the business processes and the existing dashboards used for monitoring. CHECKLIST OF CONSIDERATIONS PRIOR TO TECHNOLOGY INVESTMENT Decide what to master before deciding how MDM technology has gained an unfair reputation for being complicated, taking a long time to implement, and being difficult to justify in terms of value add to the business. The reality is that most MDM projects are poorly scoped and fail to give due consideration to the people and process issues surrounding the data improvement initiative which has an unfavourable bearing on outcome. The odds of the project failing to meet expectations can be reduced drastically by a thorough approach to planning. Before starting out, agencies need to make a number of business decisions about data, processes, and technologies. Organisations need to decide what data to master and why, with the why being the important part. It is not surprising that most agencies start out on an MDM program in response to a single issue within a distinct business unit or when there is a CRM or ERP change program. It soon becomes apparent to the organisation that MDM can be of benefit to other areas. 9 steps prior to signing off on technology investment Whether you are coming at the data management challenge from a line of business role or an IT role it is important to give consideration to the following 9 key steps prior to investing in an MDM solution: 1. Define the business drivers and pick an initial use case that will drive a tangible return 2. Secure the appropriate level of leadership and sponsorship 3. Understand what MDM technology you already have in place (if any) and its ability to scale 4. Ensure the data model of your chosen solution is flexible 5. Understand how data stewardship roles will be positively impacted and supported 6. Be clear on how the solution supports governance functions 7. Clarify the level of services required to implement your MDM solution 8. Understand the various licensing options that exist for MDM software 9. Be clear on factors that could impact the Total Cost of Ownership of your chosen solution 2014 Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 9

10 APPENDIX Author Chris Pennell, Lead Analyst, Public Sector Ovum Consulting We hope that this analysis will help you make informed and imaginative business decisions. If you have further requirements, Ovum s consulting team may be able to help you. For more information about Ovum s consulting capabilities, please contact us directly at consulting@ovum.com. Copyright notice and disclaimer The contents of this product are protected by international copyright laws, database rights and other intellectual property rights. The owner of these rights is Informa Telecoms and Media Limited, our affiliates or other third party licensors. All product and company names and logos contained within or appearing on this product are the trademarks, service marks or trading names of their respective owners, including Informa Telecoms and Media Limited. This product may not be copied, reproduced, distributed or transmitted in any form or by any means without the prior permission of Informa Telecoms and Media Limited. Whilst reasonable efforts have been made to ensure that the information and content of this product was correct as at the date of first publication, neither Informa Telecoms and Media Limited nor any person engaged or employed by Informa Telecoms and Media Limited accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard - readers assume full responsibility and risk accordingly for their use of such information and content. Any views and/or opinions expressed in this product by individual authors or contributors are their personal views and/or opinions and do not necessarily reflect the views and/or opinions of Informa Telecoms and Media Limited Ovum. All rights reserved. Unauthorised reproduction prohibited. Page 10

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