The Chief Data Officer Agenda: Metrics for Information and Data Management
 

The Chief Data Officer Agenda: Metrics for Information and Data Management

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Welcome to The Chief Data Officer Agenda, a DATAVERSITY monthly webinar focused on the emerging priorities of the Chief Data Officer (CDO). What issues are CDOs facing now, and what should be on ...

Welcome to The Chief Data Officer Agenda, a DATAVERSITY monthly webinar focused on the emerging priorities of the Chief Data Officer (CDO). What issues are CDOs facing now, and what should be on their Agenda. The webinar series is moderated by DATAVERSITY CEO and Founder, Tony Shaw, who will be joined each month by guest experts to discuss the requirements and demands on the burgeoning CDO role.

This month in the series:

The value proposition of enterprise information management is founded on Information being treated as an Asset. Information management professionals concur, but CxOs will say "So what?" In most organizations, they are both right! The conflict starts with one group thinking metaphorically, and the other literally. CDOs know that “Information asset” needs to be more than a metaphor…it has to be actionable. When you’re in charge of the application and value of data, how do you measure that? How do you measure progress? What types of metrics are there and which ones actually work? There is a lot more to measuring the value of information than common ROI.

This presentation will give you some starting points for real information asset management and information economics. You’ll learn some of the techniques being used successfully today, and considerations for quantifying the value and progress of information management. There is a means of reconciliation between the metaphors and reality, and this talk will outline a vision for the future, but with practical steps to help you get there.

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The Chief Data Officer Agenda: Metrics for Information and Data Management The Chief Data Officer Agenda: Metrics for Information and Data Management Presentation Transcript

  • Your Speakers Tony Shaw CEO & Founder DATAVERSITY @tonyshaw John Ladley President IMCue Solutions @jladley #DATAVERSITY
  • • A new webinar series on the first Tuesday of each month (mostly) • Upcoming Topics: - Data Governance - Advanced Analytics - Roles, Function and Hiring of CDOs - Risk Management - Data Business Models - New Technologies you cannot ignore …and much more! #DATAVERSITY
  • • Metrics and Measurement • John Ladley, President of IMCue - 30 years experience. Former Meta Group Analyst - Author of two major books on EIM and Data Governance - Data Strategy, Information Risk, Organizational Structure, Analytics - Practical reputation #DATAVERSITY
  • Metrics for Information Management All content copyright 2013 IMCue Solutions LLC 0
  • Discussion  Can data or information cost your company or organization $$$$$?  Is there a broad economic impact of data and information?  If you answered “yes”, show me how much? 1
  • Why worry about information metrics? Accounting reasons: • Information is an asset • It has a probability of generating future value • It is distinct from financial and material assets • Compliance with Financial Accounting Standards Board Statement No. 142 — measuring intangible assets Practical reasons: • Information affects the organization in visible and most likely measurable ways • Information assets are rapidly becoming a significant business element
  • Objective  Leave with some new views about measuring tools to sell and sustain information asset management (IAM) 3
  • Presenter / co-author   John Ladley – 35 years EIM experience in various capacities – jladley@imcue.com – @jladley Doug Laney – Currently heads thought leadership, and advisory services with Gartner Analytics – Authored 100+ articles and research pieces, and speaks now-and-again. – Initiated Infonomics as a formal approach to information management in the 1990’s 4
  • Agenda   Terminology Measuring Information – – –  Information as an asset What is an asset What do you need to measure? Measuring assets – Metric taxonomy – What types of metrics are there?    There is a lot more to measuring than common ROI Value, effectiveness, income statement and balance sheet Samples 5
  • Terminology  Information – ALL enterprise content that can be used to further the survival and achievement of business goals –  Information Asset Management –  Data = information = content (for this discussion) The treatment of data, information and content as an asset in the true, business sense Enterprise Information Management (EIM) – The program that executes IAM 6
  • Terminology  Infonomics – The economics of information and principles of information asset management  – The accounting and measuring aspect of information asset management   Doug Laney of Gartner Group John Ladley Data Governance – The oversight of IAM; sets rules of engagement , i.e. policy, roles, accountability, responsibilities for EIM and IAM 7
  • What does Information Asset really mean?  Metaphor – Example from Thomas C. Redman, Ph. D. 8
  • Real asset     Goodwill is intangible, appears on the balance sheet, and can certainly be ‘used up’ Electricity is “used,” but there is always more in the wire. We buy and sell kilowatts Ideas can be copyrighted, bought and sold We trade information every day for something. Do you have a Twitter™ or Facebook™ account? You are worth $101.70! 9
  • Acquisition Administration Application What to measure - The information supply chain Deliver How is information providing business value? Package Assess Store Deduplicate Inventory Secure Cleanse Update Translate Refresh Organize Replicate Delete Transform Trade Analyze Lend What are we doing to add value to the information? Rent Generate Trade Capture Purchase Backup Encrypt Tag Index Transmit Integrate Profile Sell Report Alert Describe Visualize Access Search Observe Where are we getting information from? 10
  • How to measure – core concept      The “algebra” of R Where C= Create, U= Update, D = Delete, R = Read If Value = Usage , and Usage = R, then Value = R Therefore Information Value = R – Then Information Costs = C + U + D Unless information is used (read) it has no value other than the sunk cost to produce the data (transactions) The IAM business case happens where data is used – just like “normal” assets IAM business case: Rbenefit > Ccost + Ucost + Dcost + Rcost 11
  • How to look at information value measures
  • Financial performance  Balance sheet – Information asset valuations  – –  $101.70??? Capitalized information-based revenue streams Shareholder trust  Reputation (Social media, regular media)  Compliance risk assess (identifier quality, contingent fines)  Protect privacy  Accuracy  Complete Income statement – – – – – – – Incident costs IT costs Project initiation costs Error* handling costs Data risk assessment Insurance premium “Line of sight” metrics
  • Measuring program effectiveness  Efficiency –  Risk –  Delta of risk Improvement – 14 Measure how well governance applies its resources Amount of improvement / delta from a “state” 14
  • Efficiency          Total cost of IT / Party (Customer, Member, etc.) End User Labor / Number Users Total BI/DW Budget / Total Users, and / or Support Number of interfaces, File feeds Cost per Interface DG / Compliance cost divided by Total Income DG / Compliance cost vs. risk reserves / premiums Budget / TB (GB) Benchmarks – – – – Number IT tools Maintenance budgets License costs Training costs 15
  • Risk  Threat metrics – –  Financial Risk – – –  Liquidity Operational costs Equity / market value reduction Data Governance Compliance – –  Cost per downtime event Loss of customer confidence “Hits” on web-based tools Access counts on repositories Legal Compliance – – Potential penalties per subject area Litigation fees over time 16
  • Improvement  Operating Income by Knowledge Worker – –  IM Project NPV –  Operating Income for year divided by number of Knowledge Workers Knowledge worker is defined as someone who uses information to make decisions and take actions that cause the fulfillment of objectives, reads information The net present value of the cash flow expected from IM projects over 5 year planning horizon IM Portfolio NPV – Net present value of the current information assets expressed as pro-rated portion of free cash flow 17
  • Summary    Measurements of information value and effectiveness are viable There are many many options to present the value of an information program Saying it cannot be measured is not an option 18
  • Building Value Through Information Asset Management™ jladley@imcue.com 314-422-9076 19 All content copyright 2013 IMCue Solutions LLC 19