Information Governance Workshop. David Zanotta, Ph.D. Vice President, Global Data Management & Governance - PMO
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1 Information Governance Workshop David Zanotta, Ph.D. Vice President, Global Data Management & Governance - PMO
2 Recognition of Information Governance in Industry Research firms have begun to recognize the importance of Information Governance in companies and have analyzed organizational structures to tools used for supporting data management initiatives. SAP s own Information Governance program has been recognized in 2013 with two awards. One SAP for Data Quality Wins for Organizational Structures Category 2011 SAP AG. All rights reserved. 2
3 Recognition of Information Governance in Industry (con t) Nucleus Research is an information technology research firm specializing in investigative research and the return on investment (ROI) analysis of technology deployments SAP AG. All rights reserved. 3
4 What Is Information Governance? Information governance is a management process providing oversight to ensure successful execution of your data initiatives by establishing policies, standards and objectives Can be applied to one project Can be started with one data type Can and should be extended to the enterprise Information governance also includes the ongoing oversight necessary to manage data risks 2011 SAP AG. All rights reserved. 4
5 Information Governance is Tailored An information governance program is tailored to match an organization s Culture Information Management Maturity Business Priorities Data Domains & Processes Affected Management Sponsorship 2011 SAP AG. All rights reserved. 5
6 Types of Information Governance Data Domains and Processes One information domain, many business processes Many information domains, one business process Many information domains, many business processes Master Data Governance: Customer, Product, Employee Financial Planning, Sales Management, Financial Reporting Enterprise Governance: Corporate KPI Scorecard, Enterprise Information Strategy 2011 SAP AG. All rights reserved. 6
7 What Aspects of Information Can Be Governed? Not all aspects have to be governed for all information: decide based on the business results that need to be achieved Information Ownership and Accountability Data Handling (Creation, Updating, Deleting) Data consolidation Data integration Information Access (Who, When, Where, What) Trusted data sources Data availability Archive Retrieval Security Data controls Privacy Information Storage Data Quality Dimensions of Quality Quality Criteria Metrics Data Definitions Definitions Formats Enrichment Allowable Values Information Architecture Analysis & Reporting (Who, When, What) KPI Metrics (Process/DQ) Process analytics Process reporting 2011 SAP AG. All rights reserved. 7
8 10 Questions that Will Shape Your Information Governance Program What business priority will your governance program enable? What data fields are the most important to govern? What are the potential benefits of governing this information? Who are the stakeholders for the business priority? What is the perceived and actual level of data quality? What processes and systems are used to create and update information? Are there standards in place today? What technology is used to govern information today? How can I ensure success? Where can I get additional information? 2011 SAP AG. All rights reserved. 8
9 10 Questions that Will Shape Your Information Governance Program What business priority is enabled most by quality information? What data fields and aspects of data are the most important to govern? What are the potential benefits of governing this information? Who are the stakeholders for the business priority? What is the perceived and actual level of data quality? What processes and systems are used to create and update information? Are there standards in place today? What technology is used to govern information today? How can I ensure success? Where can I get additional information 2011 SAP AG. All rights reserved. 9
10 Getting Started with Information Governance Pick the Information Pick the Projects Pick the Team Pick the Management System Business drivers Data domain Fields Data inventory, profiling, baseline Information strategy Data pain points with root cause analysis Business IT Executive sponsors Governance staff Metrics Forums Tools Governance process Data quality improvement IT project MCV LLC copyright 2011 SAP AG. All rights reserved. 10
11 Question 1 1 What business priority will your information governance program enable/improve/benefit Note: The answer will influence the scope, projects and stakeholders of the governance program 2011 SAP AG. All rights reserved. 11
12 Business Drivers for Information Governance Apply information governance to important business drivers where quality information is a key enabler Company data quality pain point Critical process re-engineering Strategic business initiative Strategic IT initiative AND where governing the ownership, access, data quality, handling, storing, definitions, values and/or architecture will lead to business benefit 2011 SAP AG. All rights reserved. 12
13 Company Data Pain Point Data quality Customer issue Business process gaps Financial re-statements Regulatory or legal issue Information Governance : Data quality ownership and accountability Quality metrics Trusted data sources Data standardization Data handling (create, update) Business Process & Data Metrics Pervasive, Well Known Data Issues 2011 SAP AG. All rights reserved. 13
14 Company Data Pain Point Financial re-statements Regulatory or legal issue Data quality Customer issue Business process gaps Information Governance : Data Controls(security, privacy, auditability, compliance) Data ownership and accountability Data architecture Data quality Business Process & Data Metrics Reporting Process & Control escapes? 2011 SAP AG. All rights reserved. 14
15 Critical Process Re-engineering Information Governance Data ownership and accountability CRM HR ERP Data architecture Data quality Data consolidation Data standardization Data access Data handling Privacy and security Process & Data metrics and reporting Process analytics Processes, systems & data consolidation Answer Question 1? 2011 SAP AG. All rights reserved. 15
16 Question 2 2 What data fields are the most important to govern? Note: The answer will influence the scope, projects and stakeholders of the governance program 2011 SAP AG. All rights reserved. 16
17 Selecting Data Domain and Fields for Your Information Governance Program The business driver will determine which specific data domain is selected for governance and which aspects will be governed Not all information has to be governed. A selection process will be needed Identify the data fields that will affect the business goals and quality of the domain 2011 SAP AG. All rights reserved. 17
18 What Information Should Be Governed? Governed Strategic Information: provides competitive advantage Critical Information: materially affects a critical process Shared Information: shared across two or more processes Not Governed Department Information: used by one department and not shared Application data not needed for regulatory or cross department communication 2011 SAP AG. All rights reserved. 18
19 Selecting Data and Fields to Be Governed Shared, Critical, Strategic Reports/Documentation Surveys Reverse-engineer financial reports Reverse-engineer regulatory reports Reverse-engineer business reports Analyze Process Documents Survey the enterprise data warehouse analysts Survey the business data stewards Survey key business users and business analysts Include data analysis in process analysis Answer Question 2 MCV LLC copyright 2011 SAP AG. All rights reserved. 19
20 Question 3 3 What are the potential benefits of governing this information? Note: The answer will influence the scope, projects and stakeholders of the governance program 2011 SAP AG. All rights reserved. 20
21 Why Govern Information? Requirements and benefits Legal Requirements (ex: contractual obligations) Regulatory and standards compliance requirements Where information management is a key enabler to a business initiative Existing company data pain point New critical process re-engineering Strategic business initiative Strategic IT initiative AND where governing the ownership, access, data quality, handling, storing, definitions, values and/or architecture will lead to business benefit Cost advantages Process efficiency Competitive advantage 2011 SAP AG. All rights reserved. 21
22 Reducing Costs: Benefits of Information Governance Redundant databases Redundant data tools and BI reporting systems Manual, duplicate data quality checking Duplicate external data vendors providers Business process inefficiencies Demand Identification Demand Generation Lead Management Opportunity Management Invoicing Cross-/Up-sell Service Lead Management Opportunity Creation Yearly Billing DSO 2011 SAP AG. All rights reserved. 22
23 Process Efficiency Benefits of Information Governance Reduced number of data handoffs and checks Increased process speed from manual to automated data checks Improved process execution from higher quality data (invoicing, marketing campaigns) Employee productivity gains from reduced time on data searches, handling duplicate records Better coordination among groups and systems from data standardization Improved business process management from data accuracy and timeliness Better visibility into the business Faster reaction to events 2011 SAP AG. All rights reserved. 23
24 Competitive Advantage of Information Governance Improved customer relationship, and revenue growth( cost of wallet) Efficient supply chain and supplier management ( inventory turns, supplier efficiencies) Improved strategic planning (product penetration, time to market) Improved business intelligence, analytics 2011 SAP AG. All rights reserved. 24
25 Picking the Operational Goals and Metrics Cost Goals Strategic Business & IT Process Re-eng Business Value Measures Process-Re-eng, Company pain point Data Quality Goals All Compliance Goals Strategic Business Company pain point TCO improvements % Returned mail Reduced manual costs 3 rd party data provider costs Employee productivity Process improvements (speed, revenue, cust sat) Errors per record Field/ Record Completeness, Validity, Accuracy score Total defects remaining Data quality costs % compliance to standards Non-compliance issues resolved 2011 SAP AG. All rights reserved. 25
26 Enabling Information Governance Goals and KPIs Information governance goals and KPIs are translated into: Data policies and standards Integrated into business and technology processes Supported by people Enabled by technology Governed for compliance Answer Question SAP AG. All rights reserved. 26
27 Question 4 4 Who are the stakeholders for the business priority? Note: The answer will influence the scope, projects and stakeholders of the governance program 2011 SAP AG. All rights reserved. 27
28 Examples of Key Executive Stakeholders Business Process Re-engineering (CRM, ERP) COO Head of Sales, Supply Chain, Marketing CIO Critical Data Quality Pain Point Pain Point Business Lead Internal Auditors CIO Employee Efficiency and Productivity COO Business Process Owner Functional Heads Internal Auditors Head of Compliance Chief Privacy Officer Business Unit Leader Regulatory Business BI and KPIs IT Simplification and Cost Reduction CEO CFO COO Business Process Owners Head of IT BI reporting CIO CFO Head of IT Operations 2011 SAP AG. All rights reserved. 28
29 People in Information Governance Management Provide oversight support, resources, resolve issues Business Process Owners Business process & operations all play a role in information governance Information Governance Project Office Drives IG program deliverables, chairs IG forums, provides IG services IT Provides data technology roadmap, data architecture, models & technical standards Builds & Runs trusted data stores 2011 SAP AG. All rights reserved. 29
30 Management Role in Information Governance Managers oversee the process of governance: Provide subject matter experts to the governance projects and ensures they are held accountable for their results Funds data management and quality projects Provide guidance on the value of data projects to their department and organization Arbitrates across their organization Drive data management accountability into the organization MCV LLC copyright 2011 SAP AG. All rights reserved. 30
31 Picking the Governance Forums Enterprise Council Executives Cross-Dept Operational Management Council Data Steward, IT, Business Local Forums IT and Business Subject Matter Experts Answer Question SAP AG. All rights reserved. 31
32 Question 5 5 What is the perceived and actual level of quality? Note: The answer will influence the governance projects, the requirements and KPIs for data quality 2011 SAP AG. All rights reserved. 32
33 How Should Data Quality Be Measured? Data Quality IS Determined by Fit for use Different for each process The 3 Myths of Data Quality 1) Quality Issues are IT Issues 2) We cleaned the data during initial project deployment so it must still be good 3) Good data quality means the same thing to everyone Dimensions of Quality Completeness Validity Timeliness Consistency Accuracy Measure DQ metrics can be grouped at record, field, database level : by function, country, region or process 2011 SAP AG. All rights reserved. 33
34 Contributors to Data Quality: Potential Areas of Governance Gaps Process Data Decay Data Quality Checks Source Data Data Quality Data Handoffs Manual Operations Number of Systems Training Answer Question SAP AG. All rights reserved. 34
35 Question 6 6 What are the processes and systems used to create and update this information? Note: The answer will influence the business process and IT stakeholders in the operational governance team, the process improvement KPIs and potential governance projects 2011 SAP AG. All rights reserved. 35
36 Information Governance & Process Business & IT Processes that Create Read CRUD Update Delete Transfer Critical, shared, strategic information Govern to ensure the processes are meeting business goals Sales Processes Marketing Lead Processes Billing and Invoicing Processes Web Processes Partner/Supplier Processes IT Archive Process Define business rules Define access control Define standards Define operational metrics Define checks and balances Compliance time frame Define policies Answer Question SAP AG. All rights reserved. 36
37 Question 7 7 Are there standards in place today? Note: The answer will identify gaps and influence additional governance policies and standards that will need to be developed by the governance program 2011 SAP AG. All rights reserved. 37
38 Types of Information Policies and Standards To Meet Data Quality Goals : Establish Policies & Standards Data Quality Policies & Standards Create, Read, Update, Delete (CRUD), Archive, Transfer Architecture, Security & Privacy Examples: 1) Data quality ownership & accountability policies 2) Rules for who can perform CRUD 3) Standards for trusted data store sources, mandatory fields & allowable values 4) Common CRUD Business Rules 5) Corporate data quality direction 6) Data Stewardship policies Answer Question SAP AG. All rights reserved. 38
39 Question 8 8 What technology is used to govern information today? Note: the answer will determine the technology gaps that need to be filled in the governance program and the technology roadmap 2011 SAP AG. All rights reserved. 39
40 Technology in Information Governance Data quality tools Extract/Transform/Load tools Workflow management tools Metadata/Enterprise repository Business Rule engine Business Intelligence Reporting Tools and Dashboards Master Data Governance solutions IT provides the technology that makes compliance to standards, measuring conformance, and tracking accountability easier Answer Question SAP AG. All rights reserved. 40
41 Question 9 9 How can I ensure success? Note: the answer will determine the success factors for your governance program? 2011 SAP AG. All rights reserved. 41
42 Information Governance Success Factors Company Readiness Business Sponsorship Funding Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 42
43 Information Governance Success Factors Company Readiness Business Sponsorship Funding Keep Momentum Focus Scope Company Readiness: Previous experiences Cross Business Unit collaboration LOB & IT collaboration Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 43
44 Information Governance Success Factors Company Readiness Business Sponsorship Funding Keep Momentum Focus Scope Business Sponsorship Executives Business Management Business Process owners Friends of Data Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 44
45 Information Governance Success Factors Company Readiness Business Sponsorship Funding Funding Multi-year funding is required Yearly re-evaluation for priorities & KPIs Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 45
46 Information Governance Success Factors Company Readiness Business Sponsorship Funding Keep Momentum Focus Scope Keeping Momentum Yearly Deliverables Regular KPI tracking tied to business goals Ongoing communication Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 46
47 Information Governance Success Factors Company Readiness Business Sponsorship Funding Tools and Automation : Can not scale without it Have a technology roadmap Have a business plan first Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 47
48 Information Governance Success Factors Company Readiness Business Sponsorship Funding Getting the Right Skills/People: Information Governance Project Office Extended Team Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 48
49 Extended Information Governance Team Management Provide oversight support, resources, resolve issues Both Executive & Middle Business Process Owners Business process & operations all play a role in information governance New : Business Data Steward Information Governance Project Office Drives IG program deliverables, Chairs IG forums, Provides IG services IT Provides data technology roadmap, data architecture, models & technical standards. Builds & Runs trusted data stores Success Factors: Right skills, Dedicated time, Decision makers, Held accountable for IG work, Supported by their management 2011 SAP AG. All rights reserved. 49
50 Critical Business Roles in Information Governance Business Data Steward Understands the business processes that create data Custodian of the data definitions Responsible for quality and management of data Represents data function to other business units Business Executive Sponsor Go to Executive Arbitrates between business units Funds data quality and management programs Values the IG program and demonstrates it SAP AG. All rights reserved. 50
51 Attributes of an Effective Business Data Steward Business Knowledge Team Builder Communicator Effective Business Data Steward Change Manager Respected Consensus Builder Senior Management Support? 2011 SAP AG. All rights reserved. 51
52 Information Governance Success Factors Company Readiness Overcoming Resistance Business Sponsorship Funding Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance 2011 SAP AG. All rights reserved. 52
53 Resistance Busters Company Readiness Business Sponsorship Funding Keep Momentum Focus Scope Tools and Automation Get the Right Skills/People/Organization Overcome Resistance Multi-year funding Metric-based accomplishments Fact-based methods Use the friends of data One-on-one education, training Incentive driven motivation Business speak not data speak 2011 SAP AG. All rights reserved. 53
54 Question Where can I get additional information? Note: the answer will determine the success factors for your governance program? 2011 SAP AG. All rights reserved. 54
55 Additional Information What is information governance? ce/index.epx White Paper : EIM (Philip Russom ) White Paper: SAP Governance from the Ground UP (Jill Dyche) Making Information Governance work for you Solutions from SAP Book : Managing your Business Data : From Chaos to Confidence (Villar) 2012 SAP AG. All rights reserved. 55
56 Thank You
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