Using Lean Principles to Manage the Data Value Chain

Using Lean Principles to Manage the Data Value Chain

Mario Faria Twitter: @mariofaria Head and Chief Data Officer CDO, Inc. http://www.cdo-inc.com/

Track: Data Quality, Data Governance Industry:

Mario Faria

2

About Mario Faria

•  Mario was one of the first Chief Data Officers in the world

•  Acting as a CDO for the last 5 years in North America, South America, Europe and Asia

•  Passion : Bring order to the chaos

•  Leader of teams working in Analytics, Data Monetization, Data Quality, Data Governance, Operations and Business Architecture

•  Motto: “If you do not treat people, technology and data as economic assets, they will become liabilities”

Mario Faria Twitter: @mariofaria Head and Chief Data Officer CDO, Inc. http://www.cdo-inc.com/

Managing your most important asset to

drive business performance

In  May  1915,  The  Boston  Red  Sox  Babe  Ruth  pitching  debut  and  his  first  home  run,  but  …  

The  Rex  Sox  lost  to  the  NY  Yanks    

Your  data  strategy  is  a  journey  

Mario Faria

9

The 3 Architectures a Company needs to succeed

Business Architecture

Technology Architecture

Data Architecture

Mario Faria

10

Data & Analytics Responsibilities •  Data Strategy •  Data Governance •  Data Quality •  Data Analytics •  Data Insights •  Data Architecture •  Data Acquisitions •  Data Operations •  Data Policies •  Data Security •  Data Protection

A  data  &  analyGcs  team  is  responsible  for  transforming  data  assets  into  compeGGve  

insights,  that  will  drive  business  decisions  and  acGons,  using  people,  processes  and  

technologies  

Data  teams  build  the  bridge  between  business  

and  IT  

Mario Faria

13

Mario Faria

14

Mario Faria

15

A data product allows an objective to be achieved using data & analytics

Mario Faria

16

More and more, leaders are being hired to think strategically about all the steps, from getting raw data and making it useful to the

business users

Mario Faria

17

Chief  Data  Officer  (focused  on  data  management)  

Chief  Digital  Officer  (focused  on  digital  transforma8on)  

Chief  Analy8cs  Officer  (focused  on  decision  management  ini8a8ves)  

The  ul8mate  leader  who  creates  and  executes  digital,  data  and  analy8cs  strategies  to  drive  business  value    

Copyright:  Mario  Faria  2014  

The  Chief  Data  /  AnalyGcs  /  Digital  Officer  roles  

Mario Faria

18

A few lessons I have learned to become a data and analytics expert

•  Many problems with streamlining a data strategy •  Major concerns with data management •  How you can overcome the issues •  What I have learned from several data journeys

The Data Life

Cycle

Mario Faria

20

The Data Value Chain

Mario Faria

21

A few problems in most organizations

•  Data is fragmented and scattered •  Silos of information hanging around •  Like the truth, data has many versions •  The Data Lifecycle is a complex process •  Data projects being managed by IT •  A formal process to data management is

a requirement in order to do Analytics

Mario Faria

22

Data is an abstract concept

Using Supply Chain Concepts and Techniques to manage your data assets

Mario Faria

24

Data & Analytics as a Production System

Mario Faria

25

The Deming Model : Production Viewed as a System

Mario Faria

26

What is Data Quality ?

•  Quality is a customer perception •  A few dimensions: freshness, coverage,

completeness, accuracy •  It is a never ending job

Mario Faria

27

A Few Quality Programs

TDQM

TIQM

Mario Faria

28

Source: Dan Myers, The Value of Using the Dimensions of Data Quality, Information Management

Implementing Lean Best Practices that came from the

Toyota Manufacturing Process

Mario Faria

30

Toyota Production System

Mario Faria

31

Lean Goals

•  Improve quality •  Eliminate waste •  Reduce lead time •  Reduce total costs

It is about how behaviors, processes and actions can be changed for improving the

overall system

Mario Faria

32

Mario Faria

33

Mario Faria

34

The 8-Basics of Kaizen Based Lean Manufacturing,

by Bill Gaw

http://bbasicsllc.com/

Mario Faria

35

•  Specify the value desired by the customer •  Map the data value stream •  Reengineer your data processes to eliminate waste •  Introduce “pull” •  Strive for continuous improvement

Source : Meghann Wooster, Beyond Fire Drills: Applying Lean Principles to Information Governance, http://www.cmswire.com/cms/information-management/beyond-fire-drills-applying-lean-principles-to-information-governance-023705.php

Applying Lean Principles to Information Governance

Mario Faria

36

•  Data & Analysis are becoming products •  Quality is key to success •  Data explosion in volume, variety and

velocity •  The number and value of external data

sets are rising fast •  Focus your team efforts is crucial •  Leverage technology to implement a

distributed data value chain initiative

Why Building a Distributed Data Value Chain is Critical

Mario Faria

37

Mario Faria

38

The Predictive Analytics Factory Concept

Mario Faria

39

Data Value Chain Monitoring Centers

Right  People  Right  Data  

Right  Technology      

Without  proper  Data  Quality  principles,  it  is  impossible  to  achieve  the  goals  of  increasing  

revenue,  reducing  costs  or  gaining  operaGonal  efficiency  in  the  

business  areas  

Mario Faria

42

Problems with Data Quality •  Business people don’t understand it and don’t have time

or patience •  IT people still have a technology mindset •  Data & Analytics people make it more complex than it is

Mario Faria

43

Quality is about customer perception

Mario Faria

44

What you can do : Establish a customer oriented mentality within

your team

How  did  some    

organizaGons  change  to  a  data  driven  culture  ?  

Make Everyone in the organization

feel responsible for Data Quality

How prepared is your business to have a lean data quality program in place ?

Time

People

Technology

Some bonus tips and

recommendations

Mario Faria

50

Start where it hurts the most

Mario Faria

51

Learn from mistakes

Mario Faria

52

Be flexible and adapt to changes fast

Mario Faria

53

Source : Leading Strategic Initiatives (www.leadingstrategicinitiatives.com)

Conclusions  

Mario Faria

55

Data, Information, Analytics, Business Intelligence and Performance Management

“The Data Asset: How Smart Companies Govern Their Data For Business Success” - by Tony Fisher

Mario Faria

57

•  A good CDO can implement a data organization with success

•  A great CDO has the ability to turn raw data into new revenue streams for the business

•  Components such as technology and methodologies are important, but they are just enablers

•  The CDO focus is delivering enterprise value to the business (not writing code or SQL scripts)

From good to great CDO

Mario Faria

58

How leaders can benefit from using Lean for Data Quality programs

•  Increase of productivity •  Increase throughput •  Improve of quality •  Reduce of cycle times •  Less fire-fighting •  Smooth operation •  Reduce costs

Mario Faria

59

Golden Rules to Success in Data Quality

•  Find out the Why •  Strategic vision and a plan in place •  Strong Data Quality leader •  Secure investments and budget •  Always deliver results

Mario Faria

60

Future of Data Quality

Mario Faria

61

When was the last time ?

Mario Faria

62

“Continuous improvement is not about the things you do well — that’s work. Continuous improvement is about removing the things that get in the way of your work. The headaches, the things that slow you down, that’s what continuous improvement is all about.”

Bruce Hamilton , lean thought leader

Mario Faria http://www.cdo-inc.com www.slideshare.com/fariamario Twitter : @mariofaria mario.faria@cdo-inc.com +1 (425) 628-3517