2009 10 Key Trends & Best Practices Enterprise Strength Data Governance & Mdm Aaron Zornes (Oow 2009) V2

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Data governance (DG) is vital to the success of master data management (MDM) projects. Unfortunately, the DG market remains fragmented and unfocused on the requirements of large MDM initiatives.

Contemporary solutions are essentially “reactive DG” due to their approach as “data steward consoles” of downstream data quality issues. The much anticipated solution would be “active DG” wherein both upstream and downstream lifecycle processes are integrated end-to-end via workflow such that evergreening of the DG rules is a continuous process improvement cycle benefitting the enterprise. Sadly, many of the currently marketed DG solutions consist primarily of white papers and demo-ware, or “passive aggressive DG”; that is they purport to deliver a certain capability, yet provide otherwise.

Enterprise-level DG that includes entire master data lifecycle (creation, promotion, archiving, …) is extremely difficult to execute for a number of reasons – organizationally and technically. Yet increasingly this is being mandated as a core deliverable of large-scale MDM projects.

Through 2009-10, both major systems integrators and MDM boutique consultancies will focus on productizing their DG frameworks/methodologies while MDM software providers struggle to link upstream DG processes with downstream MDM hubs.

By 2011-12, all mega vendor MDM solutions will evolve from “passive aggressive DG” mode to “active DG” wherein they provide the capabilities to capture business rules which in turn are propagated into an MDM.

By 2012, both corporate and line-of-business data stewards will be a common position as Global 5000 enterprises formalize this function amidst increasing de facto and de jeure recognition of information as a corporate asset.; moreover, governmental compliance mandates will require that financial services organizations provide “proof of data governance” as a proactive measure.

In 2H2009, the MDM Institute conducted a multi-client survey of early adopters and evaluators of DG initiatives across a broad range of MDM projects. Based on an increasing dictate for process rigor regarding governance of customer data, and increasing recognition of the necessity to treat DG as a prerequisite for large scale or enterprise MDM programs, clearly Global 5000 enterprises are now recognizing the opportunity to take a more strategic view of DG.

This “best practices” session will provide insight into these key issues:
• What are the business drivers for enterprise-strength DG?
• What are the technology challenges in implementing DG for enterprise magnitude business problems?
• Why is “active” DG superior to “passive” or “passive-aggressive” DG?
• How are large enterprises justifying and catalyzing their DG processes?
• Which are the “desirable” vs. “essential” DG solution criteria – e.g. GUI sizzle for hierarchy management vs. end-to-end team-based governance for the data steward function
• How does an organization organize and execute through the four stages of DG maturity: anarchy (basic), IT feudalism (foundational), business monarchy (advanced), and federalism (acme)

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  • Thanks for the presentation. Now embedded at UK Oracle Community for Oracle:

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  • All mega vendors will have an MDM story
    Therefore what is role of BOB vendors
    Role of mega vendors
    How does SAP shop address CUSTOMER data
    How does Oracle-Siebel shop handle PRODUCT data?
    Different entity type hubs, different brands will be the norm, not the exception … in G5000 enterprise
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  • 2009 10 Key Trends & Best Practices Enterprise Strength Data Governance & Mdm Aaron Zornes (Oow 2009) V2

    1. 1. 2009-10 Key Trends & Best Practices Enterprise-Strength Data Governance & MDM Oracle OpenWorld 2009 Aaron Zornes Chief Research Officer The MDM Institute aaron.zornes@tcdii.com +1 650.743.2278 David Butler Sr. Director MDM Marketing Oracle david.butler@oracle.com +1 858.391.2709
    2. 2. 2009 The MDM Institute The-MDM-Institute.com “Best Practices” Session Topics  What are the business drivers for enterprise-strength DG?  What are the technology challenges in implementing DG for enterprise magnitude business problems?  Why is “active” DG superior to “passive” or “passive-aggressive” DG?  How are large enterprises justifying and catalyzing their DG processes?  Which are the “desirable” vs. “essential” DG solution criteria – e.g. GUI sizzle for hierarchy management vs. end-to-end team-based governance for the data steward function  How does an organization organize and execute through the four stages of DG maturity: anarchy (basic), IT feudalism (foundational), business monarchy (advanced), and federalism (acme)
    3. 3. 2009 The MDM Institute The-MDM-Institute.com Prologue  Enterprise-level DG that includes entire master data lifecycle (creation, promotion, archiving, …) is extremely difficult to execute for a number of reasons – organizationally & technically. Yet increasingly this is being mandated as a core deliverable of large-scale MDM projects.  Through 2009-10, both major systems integrators & MDM boutique consultancies will focus on productizing their DG frameworks/methodologies while MDM software providers struggle to link upstream DG processes with downstream MDM hubs.  By 2011-12, all mega vendor MDM solutions will evolve from “passive aggressive DG” mode to “active DG” wherein they provide the capabilities to capture business rules which in turn are propagated into an MDM.
    4. 4. 2009 The MDM Institute The-MDM-Institute.com Key MDM Issues for 2009-2010 • Provisioning substantive amount of “MDM-specific data governance” • Partnering with a faithful service provider • Betting on odds-on favorite MDM solution (brand/architecture/platform) MDM 2.0 scenario: convergence of MDM & data governance
    5. 5. 2009 The MDM Institute The-MDM-Institute.com MDM Milestones www.tcdii.com/mdmresearch/assumptions.html  Architecture & models  Identity resolution  Party data quality  Analytics  Policy hubs  Enterprise search Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of evolving MDM vendor landscape  Market maturation  Market momentum  Market consolidation  Budgets/skills  Data governance  MDM convergence
    6. 6. 2009 The MDM Institute The-MDM-Institute.com Key MDM Issues for 2009-2010  Provisioning substantive “MDM-specific data governance”  Partnering with a faithful service provider  Betting on odds-on favorite MDM solution (brand/architecture/platform)
    7. 7. 2009 The MDM Institute The-MDM-Institute.com Enterprise Data Governance Challenges  Break down functional & organizational stovepipes  Integrate processes across the enterprise – including corporate technology, all LOBs, functional areas & geographic regions  Engage all levels of management & adjudicate between centralized vs. decentralized data stewardship  Evolve key stakeholders from “data ownership” to “data stewardship”  Overcome lack of process integration in current “DG for MDM” offerings Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing oppty to take more strategic view of enterprise data governance
    8. 8. 2009 The MDM Institute The-MDM-Institute.com Data Governance Strategic Planning Assumption  During 2009, most enterprises will struggle with cross- enterprise DG scope as they initially focus on customer, vendor, or product; enterprise-level DG that includes entire master data lifecycle will be mandated as core phase 0/1 deliverable of large-scale MDM projects  Through 2010, major SIs & MDM boutiques will focus on productizing DG frameworks while MDM software providers struggle to link governance process with process hub technologies; concurrently G5000 enterprises struggle to evolve enterprise DG in cost-effective & practical way from “passive” to “active” DG modes  By 2011-12, vendor MDM solutions will finally move from “passive-aggressive DG” mode to “active DG” MDM MILESTONE Data governance will remain problematic during 2009-10
    9. 9. 2009 The MDM Institute The-MDM-Institute.com “Data Governance for MDM” Market – Chaos or Confusion?  Data governance (DG) is vital to success of MDM projects – both initially & ongoing  During 2009-10, Global 5000 enterprises will increasingly mandate that 'no MDM program be funded without pre-requisite DG framework’  Moreover, market-leading vendors will come to market in late with own active DG frameworks to take back the lucrative DG business currently defaulting to SIs  Corollary is few MDM vendors will be able to market their solutions without integrated active DG capability – one that embeds a workflow engine with metadata support for both structured & unstructured info  Where will that leave the SIs – as partners, competitors or both? Given lack of DG solutions from MDM platform vendors, SIs have had market largely to themselves; 2010 operative word = “coop-etition”
    10. 10. 2009 The MDM Institute The-MDM-Institute.com
    11. 11. 2009 The MDM Institute The-MDM-Institute.com Predictions of IBM Data Governance Council 1. In some countries, DG will become regulatory requirement & companies will have to demonstrate DG practices to regulators as part of regular audits. This will likely affect Financial Services industries first, & will emerge as a growing trend worldwide. 2. Value of data will be treated as an asset on balance sheet & reported by the CFO while quality of data will become technical reporting metric & key IT performance indicator. New accounting & reporting practices will emerge for measuring & assessing value of data to help organizations demonstrate how DQ fuels business performance. 3. Calculating risk will become an IT function. Today in most organizations, risk calculation is done by a select group of individuals using complicated processes. In future, risk calculation will be automated allowing companies to more easily examine past exposure, forecast risk they face in future, & set aside capital to self- insure to cover risk.
    12. 12. 2009 The MDM Institute The-MDM-Institute.com Predictions of IBM Data Governance Council - continued 4. Role of CIO will change making this corporate officer responsible for reporting on DQ & risk to Board of Directors. CIO will have mandate to govern use of info & report on quality of info provided to shareholders. 5. Individuals will be required to take more responsibility for recognizing problems & participating in governance process to facilitate greater operational transparency & identification of risk. They will be aided by new categories of operational software that will demonstrate common DG problems & allow employees to self- govern; sponsor & vote on new policies; provide feedback on existing ones & participate in dynamic DG. IBM DG Council established right approach – assessing DG from a maturity perspective across 11 categories with "Entry Points" to enable organization to embrace more pressing needs while being able to tackle other aspects when ready
    13. 13. 2009 The MDM Institute The-MDM-Institute.com MDM Institute’s Data Governance Maturity Model  “Anarchy” (basic) – Application-centric approach; meets business needs only on project-specific basis  “Feudalism” (foundational) – IT policy-driven standardization on technology & methods; common usage of tools & procedures across projects  “Monarchy” (advanced) – business-driven, rationalized data with data & metadata actively shared in production across sources  “Federalism” (distinctive) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle 0% 10% 20% 30% 40% 50% Basic Foundational Advanced Distinctive FSP Non-FSP Source: MDM Institute survey of 100+ Global 5000 IT organizations Fin Svc providers are leading the way – in spend & discipline; technology can only achieve so much as organization must be prepared to continually adapt & treat data as enterprise asset above project level; data needs to be an asset not a liability.
    14. 14. 2009 The MDM Institute The-MDM-Institute.com Rosetta Stone of DG Maturity Models Stage Name I Anarchy II Feudalism III Monarchy IV Federalism The MDM Institute Common inquiry is “How do I get from Level 2 to Level 4 or 5?” IBM Data Governance Council DataFlux/SAS Gartner Research Stage Name I Initial II Managed III Defined IV Quantitatively Managed V Optimizing Stage Name 1 Undisciplined 2 Reactive 3 Proactive 4 Governed Stage Name 0 Unaware 1 Aware 2 Reactive 3 Proactive 4 Managed 5 Effective
    15. 15. 2009 The MDM Institute The-MDM-Institute.com Why Enterprise Data Governance  Overly complex IT infrastructure  Silo-driven, application area- centric solutions  Slow-to-market delivery of new or enhanced application solutions  Inconsistent definitions of key corporate data assets such as customer, supplier, & pricing masters  Poor data accuracy within & across business areas  LOB-focused data with inefficient or nonexistent ability to leverage information assets across LOBs  Redundant IT initiatives to re- solve data accuracy problems for each individual LOB  Uniform communications with customers, suppliers, & channels due to veracity & accuracy of key master data  Common understanding of business policies & processes across LOBs & with business partners/channels  Rapid cross-LOB implementation of new apps requiring shared access to master data  Singular definition & location of master data & related policies to enable transparency & auditability essential to regulatory compliance  Continuous DQ improvement as DQ processes are embedded upstream rather than downstream  Increased synergy for cross-sell & upsell Pre-Governance Post-Governance
    16. 16. 2009 The MDM Institute The-MDM-Institute.com MDM Institute MarketPulse™ Survey Overview  Objectives  Determine top business justifications for DG programs  Understand key technology challenges (failings) of current DG offerings  Provide evaluation framework for both current & soon-to- market DG offerings  Methodology = online surveys & interviews  Pre-qualified, pre-existing relationship  C-level or next level below  Survey pool of 100+ Global 5000 size enterprises  Oracle Data Governance Advisory Board  IBM Data Governance Council  MDM Institute Advisory Council
    17. 17. 2009 The MDM Institute The-MDM-Institute.com Current Data Governance Survey
    18. 18. 2009 The MDM Institute The-MDM-Institute.com Data Governance “Framework” “Top 10” Evaluation Criteria 1. Methodology 2. Data exploration/profiling 3. Model management 4. Rules management 5. Decision rights management 6. MDM hub integration 7. Enterprise application integration 8. E2E data lifecycle support 9. Integrated metrics 10. Vendor integrity/viability “Data Governance for MDM” fracas will escalate as MDM vendors rush to usurp SIs; during 2009-10, MDM vendors increasingly unable to sell MDM w/out integrated DG
    19. 19. 2009 The MDM Institute The-MDM-Institute.com Overall Critique of Existing DG Capabilities  Mismatch of applying project-oriented methodology rather than asset-focused methodologies  Methodologies missing the asset aspect of data … cost, decaying value, ROI for cleansing data, etc.  Frameworks not addressing “community” aspect of shared asset development – e.g. wikis for global corporate business vocabulary, etc.  Current DG solutions do not provide systemic rigor nor E2E lifecycle support “(Integrated) Data Governance for MDM” market is a vacuum … nature hates a vacuum
    20. 20. 2009 The MDM Institute The-MDM-Institute.com SUMMARY – Data Governance for MDM  Don’t settle for “passive” / downstream data governance  Demand “active” / upstream enterprise data governance  Don’t expect “data governance maturity assessments” to provide road map out of anarchy  Realize that “data steward consoles” are more than demo-ware for headless apps … but substantially less than enterprise data governance  Acknowledge that vendor viability matters  Prepare to spend $250-$500K for initial DG solution Enterprise data governance & MDM are codependent/interdependent … invest upfront in data governance for sustainability & ROI of MDM programs
    21. 21. 2009 The MDM Institute The-MDM-Institute.com BOTTOM LINE  Invest in DG for long-term sustainability & ROI of MDM  Acknowledge currently “DG for MDM” does not exist as integrated solution  Primarily processes with custom workflow  One-way export to MDM hub (if any)  Minimal support for “enterprise” decision rights  Plan for most MDM vendors to deliver DG workflow engine during next 6-12 months with metadata engine for both structured & unstructured  Recognize mega vendors (IBM, Oracle) focused to deliver capability in 2H2009 – with resultant SI partner chaos  Manage DG provider  To integration roadmap with MDM platform of choice  To avoid “brain drain”
    22. 22. 2009 The MDM Institute The-MDM-Institute.com MDM SUMMIT™ Conference Series MDM SUMMIT Europe 2009 Park Plaza Victoria Hotel | April 20 – 22, 2009 MDM SUMMIT Asia-Pacific 2009 Four Points by Sheraton Sydney | April 28 – 29, 2009 MDM SUMMIT Canada 2009 Hotel Admiral Toronto-Harbourfront | June 25 – 26, 2009 MDM SUMMIT Americas 2009 San Francisco Hyatt Regency August 24 – 26, 2009 MDM SUMMIT New York 2009 New York Hilton | December 1 – 2, 2009
    23. 23. 2009 The MDM Institute The-MDM-Institute.com About the MDM Institute  Founded 2004 to focus on MDM business drivers & technology challenges  MDM Advisory Council™ of 100 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects  MDM Business Council™ website access & email support to 15,000+ members  MDM Road Map & Milestones™ annual strategic planning assumptions  MDM Alert™ bi-weekly newsletter  MDM Market Pulse™ monthly surveys  MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas  MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Madrid, Sydney, Toronto, & Tokyo “Independent, Authoritative, & Relevant” About Aaron Zornes  Most quoted industry analyst authority on topics of MDM & CDI  Founder & Chief Research Officer of the MDM Institute  Conference chairman for DM Review’s MDM SUMMIT conference series  Founded & ran META Group’s largest research practice for 14 years  M.S. in Management Information Systems from University of Arizona
    24. 24. 2009 The MDM Institute The-MDM-Institute.com MDM Institute Advisory Council 100 organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads Representative Members  3M  Bell Canada  Caterpillar  Cisco Systems  Citizens Communications  COUNTRY Financials  Educational Testing Svcs  EMC  GE Healthcare  Honeywell  IHS  Intuit  Loblaw  McKesson  Medtronic  Microsoft  Motorola  National Australia Bank  Nationwide Insurance  Norwegian Cruise Lines  Novartis  Polycom  Roche Labs  Rogers Communications  Scholastic  Stryker  SunTrust  Sutter Health  Westpac  Weyerhaeuser  Woolworths
    25. 25. 2009 The MDM Institute The-MDM-Institute.com Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com a.k.a. www.tcdii.com

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