May 6, 2014

COPAS Education DayIntro to Data GovernanceJennifer Major, CPA

Agenda Data Governance

Why Bother?Definition

Related Terminology Data Governance Organization & Culture

Why Bother?

“Organizations that do not understand the overwhelming importance of managing data and information as tangible assets in the new economy will not survive.” Tom Peters, 2001 (author of In Search of Excellence)

Big Data

According to IDC:In 2011 we created 1.8 zetabytes (or 1.8

trillion GBs) of information - enough data to fill 57.5 billion 32GB Apple iPads- enough iPads to build a Great iPad Wall of China twice as tall as the original

The world’s information now doubles!! about every year and a half.

In every minute of every day:

- 204 million email messages

- 4 million Google searches

-  72 hours of new YouTube

videos

- 2.46M bits of content shared

on Facebook

- More than 277,000 tweets

- 216,000 Instagram posts

Big Data

Rapidly Changing Technology

“Enterprises are finding new sources of data, new ways to analyze data, new ways to apply the analysis to the business, and new revenues for themselves as a result. They are using new approaches, moving from descriptive to predictive and prescriptive analytics and doing data analysis in real-time. They are also increasingly adopting self-service business intelligence and analytics, giving executives and frontline workers easy-to-use software tools for data discovery and timely decision-making.” (EMC, 2014)

IT

More Data More ProblemsDissatisfaction with Data QualityData Access IssuesData Delivery IssuesInconsistent Systems of RecordToo Many SourcesLost or Disorganized Data

Blosser, Data Governance at Chevron GOM: A Case Study, May 2013.

Business asset planning and optimization, which highlights more extensive use of data to plan and optimize the performance of business assets across the entire life cycle of that asset

Digital oil fields, which focuses on the exploding use of digital sensors in oil fields (and other plant and equipment), providing massive volumes of operational data that enable optimization in near real time

Data Governance and Oil & Gas

Planning

Drilling

CompletingProducing

Disposing

Data Governance MitigatesImproved Data QualityImproved Data AccessImproved Data DeliveryClearly Defined Systems of RecordConsistent Uses of DataOrganized Data

The Benefits of Data Governance Revenue increase

improved finding efficiency and better operational results from better informed decision makers.

Risk reductions sustaining licenses to operate, maintaining the value of data assets, avoiding

unintended data loss, disclosure or damage to reputation.

Acquisition cost reduction reducing the cost of data acquisition, e.g. by properly and securely archiving

expensive data sources such as seismic, can prevent costs associated with reacquiring such data and can yield tens of millions of dollars per year from such optimization

OPEX optimization reducing the current cost of data management by standardizing technologies

and formalizing the organizational capabilities.

(Udeh, Big Data and the E&P organization, 03/13/2014)

What is Data?Data

“…representation of facts as text, numbers, graphics, images, sound or video… Facts are captured, stored, and expressed as data.” (Mosley, 2010, p.2)

Data

Information

Knowledge

DefinitionFormatTimeframeRelevance

Patterns & TrendsRelationshipsAssumptions

What is Data Governance?

“…the organization and implementation of policies, procedures, structure, roles, and responsibilities which outline and enforce rules of engagement, decision rights, and accountabilities for the effective management of information assets” (Ladley, 2012, p.11)

“Data governance refers to people and organizational capability, processes and controls, and technology and architecture” (Blosser, 2013, p.5)

Data Governance Components

Policies

Technology

People

Data StewardsData CustodiansQuality Analysts DQ Programmers

Document Business Processes

Identify Business Rules & Data Rules

Define ‘Acceptable’ Data

DQ SoftwareIntegration

Synchronization

Related TerminologyData ManagementMaster Data Management (MDM)Data Quality (DQ)Business Intelligence (BI)Data StewardshipAccountabilityResponsibility

Data Management

“The business function that develops and executes plans, policies, practices, and projects that acquire, control, deliver, and enhance the value of data and information” (Earley, 2011, p.78)

Managing information as a recognized and formal asset. (Ladley, 2012, p.11)

How is that different than Data Governance?

Data Management is the hands on doingManages data within ‘guidance’

Data Governance is making sure data is managed properlyDevelops ‘guidance’ aka Rules & PoliciesEnsures “the doing” is done by the rules

The Governance V

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Dat

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Data Life Cycle

Ladley, 2012, p.10

Master Data Management

According to DAMA, MDM is “Processes that ensure that reference data is kept up to date and coordinated across an enterprise. The organization, management, and distribution of corporately adjudicated data with widespread use in the organization” (Earley, 2011, p.163)

Single Source of the TRUTH!

Master DataMaster Data is common data about customers, suppliers, partners, products, materials, accounts and other critical “entities,” that is commonly stored and replicated across IT systems. Master Data is the high-value, core information used to support critical business processes across the enterprise. (IBM,

2014)

Data Quality“The degree to which data is accurate,

complete, timely, consistent with all requirements and business rules, and relevant for a given use” (Ladley, 2012, p.14)

“’Bad Data’ does not just appear, and is almost always corrected by a change in processes or habits.” (Ibid)

Business Intelligence (BI) Set of theories, methodologies, architectures, and

technologies that transform raw data into meaningful and useful information for business purposes. (Wikipedia)

An umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. (Gartner)

Using information to achieve organizational goals. (Ladley, 2012, p.15)

Gathering Data

Analyzing Data

Making Decisions

REDUCE LATENCY

Business Intelligence (BI)

BI is a capability that enables data-driven decision making.

BI and Analytics Platforms

Dashboards

I believe you. It’s important.

Now what?!

Data Governance Maturity

Undisciplined 33% of Companies at this

stage

Few defined rules and policies regarding DQ and integration

Redundant data in different sources, formats, and records

Little or no executive-level insight into the costs of bad or poorly-integrated data

Movin’ on Up…

…To the Reactive StageAssess data maturity across enterpriseEstablish objectives for Data GovernanceIdentify size and scope of governance effortsIdentify critical data assets for governance

Reactive45-50% of Companies at this

stageLocates and confronts data

problems only after they occur

Varied levels of data quality

Some employees understand the importance of high quality info, but

Management support is lacking

Movin’ on Up…

…To the Proactive StageCreate a new strategic vision for DQObtain executive support – a high degreeCreate a Data Governance TeamEstablish cross functional business rulesImplement data monitoring that detects sub-

par data before it causes problems

ProactiveLess than10% of companies

have reached this level

Companies have ability to avoid risk and reduce uncertainty

Data moves from commodity to Asset!

Data implements MDM around critical Master Data

Movin’ on Up…

…To the Governed stageCreate a unified approach for all corporate

informationAssemble and integrate the DG organizationThe business controls DM while IT supportsFull Business Process Management (BPM)

now possible

GovernedVery few companies operate at

this level.Unified DG strategy through

enterpriseDQ, integration, and

synchronization are integral parts of all business processes

Organization achieves impressive results from a single, unified view

The DG Organization

Strategic

Tactical

Operational

Executive Steering: Plan & Guide

Advisory Council: Manage

Working Team: Day-to-day

Approves

Defines

Enforces

Data Stewardship

Stewardship is:The management or care of something. (

www.vocabulary.com/dictionary/stewardship)

The activity or job of protecting and being responsible for something. (http://

www.merriam-webster.com/dictionary/stewardship)

Some examples specific to Data:Definition and classificationRoot cause analysisMonitoring usage

Accountability vs. Responsibility Responsibility is the obligation incurred by an

individual in a specific role to perform the duties of that role, to take actions and produce results that affect the organization’s assets. (TDWI, 2010, p.2-3)

Accountability is the individual liability created by use of authority. The condition of being fully answerable for results and achievement of goals. (TDWI, 2010, p.2-3)

Responsibility can be delegated – Accountability cannot!

Culture of Data Governance Actually, effective data governance isn't about data at all.

Instead, it's about changing how companies view their data. - Jane Griffin, “Data Governance Defined” (2011)

Data governance describes an evolutionary process for a company, altering the company’s way of thinking and setting up the processes to handle information so that it may be utilized by the entire organization. - Steve Sarsfield "The Data Governance Imperative” (2009)

Data Governance Elevator Pitch

Data Governance is ensuring our data is an asset that is properly managed so we can support effective and efficient operations and mitigate risk in order to reach our company goals.

Q&A

Sources & Resources Business Intelligence. (2013). Gartner.com. Retrieved April 30,2014

from http://www.gartner.com/it-glossary/business-intelligence-bi/. Business Intelligence. (n.d.). Wikipedia. Retrieved April 13, 2014 from

http://en.wikipedia.org/wiki/Business_intelligence. Earley, S. (2011). The DAMA Dictionary of Data Management (2nd ed.).

Bradley Beach, NJ: Technics Publications. EMC. (2014). EMC.com. Retrieved April 30, 2014 from http://

www.emc.com/leadership/digital-universe/2014iview/high-value-data.htm.

Ladley, J. (2012). Data governance how to design, deploy and sustain an effective data governance program. Waltham, MA: Morgan Kaufmann.

Master Data. (n.d.) IMB.com. Retrieved April 30, 2014 from http://www-01.ibm.com/software/data/master-data-management/overview.htm.

Maturity Model. (n.d.) SAS.com. Retrieved May 1, 2014 from http://www.sas.com/offices/NA/canada/lp/DIDQ/DataFlux.pdf.

Sources & Resources continued Mosley, M., Brackett, M., & Earley, S. (2010). The DAMA guide to the

data management body of knowledge (DAMA-DMBOK guide) (2nd ed.). Bradley Beach, N.J.: Technics Publications.

Stewardship. (n.d.) Merriam-Webster online. Retrieved April 13, 2014 from http://www.merriam-webster.com/dictionary/stewardship.

Stewardship. (n.d.) Vocabulary.com. Retrieved April 13, 2014 from www.vocabulary.com/dictionary/stewardship.

TDWI Data Governance Fundamentals. (2010). Udeh, E. (2012). Big Data and the E&P organization. ETLsolutions.com.

Retrieved April 26, 2014 from http://www.etlsolutions.com/big-data-and-the-ep-organization/.