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Why Your Data Management Strategy Isn't Working (and How to Fix It)

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Despite good intentions, data management strategy and practices are coming up short in the majority of organizations. This is often due to many factors that are attributable to low data maturity and misalignment with business objectives. IDERA’s Ron Huizenga will discuss a number of misconceptions and behaviors that limit effectiveness, as well as how to overcome them. This will enable you to identify and implement the necessary changes to achieve business alignment and derive maximum value from your data management strategy and practices.

Published in: Data & Analytics
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Why Your Data Management Strategy Isn't Working (and How to Fix It)

  1. 1. 1© 2019 IDERA, Inc. All rights reserved. WHY YOUR DATA MANAGEMENT STRATEGY ISN'T WORKING (AND HOW TO FIX IT) MAY 7, 2019 Ron Huizenga Senior Product Manager, Enterprise Architecture & Modeling @DataAviator
  2. 2. 2© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 2© 2019 IDERA, Inc. All rights reserved. PRE-FLIGHT BRIEFING ▪ Information capability • Industry studies • Data maturity ▪ Data management misconceptions ▪ Implementing lasting change • The people problem • Strategic alignment • Architecture and governance ▪ Post Flight De-brief
  3. 3. 3© 2019 IDERA, Inc. All rights reserved. ▪INFORMATION CAPABILITY
  4. 4. 4© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 4© 2019 IDERA, Inc. All rights reserved. COMPANIES ARE FAILING IN THEIR EFFORTS TO BECOME DATA DRIVEN ▪ The percentage of firms identifying themselves as being data-driven has declined in each of the past 3 years • 37.1% in 2017, 32.4% in 2018, 31.0% this year • in spite of increasing investment in big data and AI initiatives • Source: Harvard Business Review, Feb 5, 2019 (Randy Bean and Thomas Davenport) ▪ Survey of industry leading, large corporations • 72% of survey participants report that they have yet to forge a data culture • 69% report that they have not created a data-driven organization • 53% state that they are not yet treating data as a business asset • 52% admit that they are not competing on data and analytics • 93% of respondents identify people and process issues as the obstacle • The difficulty of cultural change has been dramatically underestimated − 40.3% identify lack of organization alignment − 24% cite cultural resistance as the leading factors contributing to this lack of business adoption. • Firms must become much more serious and creative about addressing the human side of data if they truly expect to derive meaningful business benefits • Source: 2019 Big Data and AI Executive Survey (NewVantage Partners)
  5. 5. 5© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 5© 2019 IDERA, Inc. All rights reserved. INFORMATION CAPABILITY STUDY – HOW ARE WE DOING? ▪ Very few organizations utilize information to its full potential ▪ Deficiencies in technical capability, skills, lacking data culture ▪ Lack of investment in value-driven information strategies ▪ Very few understand how to derive maximum value from information • This will erode corporate value if not corrected * Based on 2015 PwC/Iron Mountain study: Seizing the Information Advantage
  6. 6. 6© 2019 IDERA, Inc. All rights reserved. INFORMATION MANAGEMENT DISPARITY ▪ Misguided Majority – 76% • Informed but constrained • Uninformed and ill-equipped ▪ Data seen as a byproduct, or taken for granted • Low comprehension of commercial benefits that can be gained ▪ Constrained by legacy approaches, regulations ▪ Weak analytic capability, or • strong analytic capability, lacking value focus • Low analytical capacity ▪ Can be overwhelmed by data volume ▪ Data is domain of data architects ▪ IT led rather than business led ▪ “Spreadsheet hell” ▪ Information Elite – 4% ▪ Proactive Action • Diversify business models • Improve operating efficiency • Identify / implement new market opportunities ▪ Tangible data value • Linked to organizational KPIs ▪ Exploit data for competitive advantage ▪ Balanced approach between security and value extraction ▪ Holistic approach • Governance is part of normal business ▪ Well defined information strategy • Reflects business objectives
  7. 7. 7© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 7© 2019 IDERA, Inc. All rights reserved. Technology & Infrastructure Information & Strategic Business Enablement HIGH LOW LOW HIGHValue Generation Primary IT Focus Risk Level 0 1 2 3 4 5 Description None Initial Managed Standardized Advanced Optimized Data Governance None Project Level Program Level Division Level Cross Divisional Enterprise Wide Master Data Management no formal master data clasification Non-integrated master data Integrated, shared master data repository Data Management Services Master data stewards established Data stewardship council Data Integration ad-hoc, point to point Reactive, point-to- point interfaces, some common tools, lack of standards common integration platform, design patterns Middleware utilization: service bus, canonical model, business rules, repository Data Excellence Centre (education and training) Data Excellence embedded in corporate culture Data Quality Silos, scattered data, inconsistencies accepted Recognition of inconsistecies but no management plan to address Data cleansing at consumption in order to attempt data quality improvement Data Quality KPI's and conformance visibility, some cleansing at source. Prevention approach to data quality Full data quality management practice Behaviour Unaware / Denial Chaotic Reactive Stable Proactive Predictive Data Maturity Introduction Expansion Transformation
  8. 8. 8© 2019 IDERA, Inc. All rights reserved. ▪MISCONCEPTIONS ▪ That can sabotage your Data Management Strategy
  9. 9. 9© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 9© 2019 IDERA, Inc. All rights reserved. DATA GOVERNANCE ▪ Don’t try to buy it. You can’t! ▪ So stop trying to! ▪ Governance requires lots of hard work and commitment throughout the organization • People • Process • Technology • Culture Data Governance Solution A - Z
  10. 10. 10© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 10© 2019 IDERA, Inc. All rights reserved. CLOUDED JUDGEMENT ▪ “The cloud” is not magic • “Cloud” just means it's running on someone else's computer(s) • AND it's exposed to the internet! • YOU are still responsible for managing it. ▪ Cloud deployments are on the rise • So is mismanagement of those deployments ▪ In fact, just last week * • Cloud Database Deleted After 80 Million Accounts Details Leaked • The 80 million households impacted make up over half of all households in the US • The online cloud database required no password to access. • “Put simply, many organizations don’t have the expertise to secure the data they keep on internet-connected servers. This lapse creates opportunities for exposure of sensitive data.” * https://www.cloudwedge.com/news/cloud-database-deleted-after-80-million-accounts-details-leaked/
  11. 11. 11© 2019 IDERA, Inc. All rights reserved. DATA MODELING AND DATA SCIENCE ARE NOT THE SAME ▪ Data Modeling • Metadata • Entity-Relationship modeling • Conceptual • Logical • Physical • Data Flow and Lineage ▪ Data Science • Data Content • Statistical modeling & analysis • Correlation, regression, patterns • Trends and algorithms • Data Visualization • Major focus on data cleansing
  12. 12. 12© 2019 IDERA, Inc. All rights reserved. MACHINE LEARNING IS NOT A SUBSTITUTE FOR DATA MANAGEMENT ▪ Definition: • Machine learning, a branch of artificial intelligence, can be described as systems that learn from data • in order to make predictions, or • to act autonomously (or semi- autonomously) in response to what it has learned. • Can eliminate the need for someone to continuously code or analyze data themselves to solve a problem ▪ “If your data is bad, machine learning tools are useless.” • Thomas Redman (Harvard Business Review) ▪ “If your data is bad, machine learning accelerates garbage-in, garbage-out (GIGO). You simply achieve disaster faster.” • Ron Huizenga
  13. 13. 13© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 13© 2019 IDERA, Inc. All rights reserved. DON’T TAKE “EXPERT” REPORTS & OPINIONS AT FACE VALUE ▪ Industry analyst reports are opinions, not industry wide consensus • They may be biased • Be aware that many “industry rankings” are “pay to play” • Don’t bet your company’s future on them • Read critically for informative purposes only • Just because it is expensive, that doesn’t make it valuable • Do your own homework! • Make your own decisions based on requirements and fit for your organization ▪ “Expert” demystified (Urban Dictionary) • “Ex” = has been, “spurt” = drip under pressure • Someone with a blog • A contract liar Industry Analysis Report & Ranking
  14. 14. 14© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 14© 2019 IDERA, Inc. All rights reserved. JUST … DON’T ▪ Just because someone else is doing it, that doesn’t mean that you need to • Make decisions based upon business strategy and requirements ▪ The new technology or trend is NOT the solution to everything • Beware of anything touted as a replacement for all of your existing technology • Silver bullets apply only to werewolves ▪ And stop using the meaningless buzzwords: • Big Data • Digital Transformation An ineffective strategy known as: “Management by in- flight magazine”
  15. 15. 15© 2019 IDERA, Inc. All rights reserved. ▪OVERCOMING THE MISCONCEPTIONS ▪ Changing Behavior
  16. 16. 16© 2019 IDERA, Inc. All rights reserved. FIRST AND FOREMOST, IT’S A PEOPLE PROBLEM ▪ We need to overcome human nature • 92% of the 17 million people that try to quit smoking each year fail. • 95% of people who lose weight fail to keep it off long term. • 88% of people who set New Year’s resolutions fail at their attempt. • Only 10% of the population has specific, well-defined goals, but even then, • seven out of the ten of those people reach their goals only 50% of the time ▪ Two forces that motivate people: • Avoid pain • Gain pleasure ▪ This causes the ‘yo-yo’ pattern in some people • they go back and forth between taking action to create change and losing their drive to take any action at all. ▪ Change is never a matter of ability, it’s a matter of motivation. ▪ Change can not be a “should”, it is a “MUST” Organizational change management is critical! Some wisdom from Tony Robbins:
  17. 17. 17© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 17© 2019 IDERA, Inc. All rights reserved. HOW DO WE IMPLEMENT LASTING CHANGE? ▪ Have a defined target • Break down into small, sustainable changes • Plan, then execute • Incorporate contingencies • Without a plan, the chance of success is virtually ZERO • “Hope is not a strategy” ▪ Concrete ▪ Measurable ▪ Continuous improvement approach • Evaluate, measure, adjust • Rinse & repeat • Add additional changes in small increments
  18. 18. 18© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 18© 2019 IDERA, Inc. All rights reserved. DATA STRATEGY & BUSINESS ALIGNMENT Vision Statement •How will you change the world? •Compelling, exciting •Some day … Mission Statement •What to do to accomplish the dream? •Every day Business Strategy •Specific goals and objectives •Implement the mission Data Strategy •Align data management practices to achieve the business strategy Data Management •Deliver, control, protect and enhance data value •Plans, policies, programs, practices
  19. 19. 19© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 19© 2019 IDERA, Inc. All rights reserved. VISION VS. MISSION ▪ Vision Statement • The dream: how does your organization wish to change the world? • “Some day …” • Should be big, exciting, compelling ▪ Mission Statement • What are you going to do to accomplish the dream? • WHAT you do! • WHO benefits from it? • HOW you do it! • “Every Day!” • Should NOT be stated in financial terms ▪ Business Strategy • Supporting Goals & Objectives • Quantifiable • Measurable “Mission statements that express the purpose of the enterprise in financial terms fail inevitably to create the cohesion, the dedication, the vision of the people who have to do the work so as to realize the enterprise’s goal.” “The mission statement has to express the contribution the enterprise plans to make to society, to economy, to the customer.” Peter Drucker
  20. 20. 20© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 20© 2019 IDERA, Inc. All rights reserved. Actionable: easy to understand. It is clear when chart your performance over time which direction is good and which direction is bad, so that one knows when to take action. Measurable: Need to be able to collect data that is accurate and complete. Specific: Metrics must be specific and target the area that is being measured. Relevant: There is a common trap of trying to measure everything. Only measure what is relevant. Ignore the noise from irrelevant data. Timely: Need to be able to get data when it is needed (as near to real time as possible). If data is received too late, it may no longer be actionable.
  21. 21. 21© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 21© 2019 IDERA, Inc. All rights reserved. DATA STRATEGY OBJECTIVES ▪ Information governance oversight body comprised of all key functional areas • Supported by senior leadership • Owned by the business – NOT owned by IT ▪ Culture of evidence based decision making • Information is a valuable asset ▪ Protect sensitive and valuable information • Secure access to those who need it ▪ Fit for purpose data analysis, interpretation, visualization ▪ Sound data architecture & enterprise architecture • Data modeling – understanding the data • Business process modeling – how data is created and used
  22. 22. 22© 2019 IDERA, Inc. All rights reserved. ▪DATA & ENTERPRISE ARCHITECTURE ▪ The foundation for data management & governance
  23. 23. 23© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 23© 2019 IDERA, Inc. All rights reserved. DATA MANAGEMENT & GOVERNANCE STRUCTURE
  24. 24. 24© 2019 IDERA, Inc. All rights reserved. STANDALONE METADATA REPOSITORIES DON’T MAKE THE CUT! ▪ Metadata Repository only • Metadata import • Metadata Catalog (without visual models) • Text search & lookup • Like the “Flat Earth Society” ▪ Fully integrated governance library (ER/Studio) • Visual models and linked metadata: • Data Models, Process Models • Visual Data Lineage • Metadata • Glossaries, Policies, Reference Data
  25. 25. 25© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 25© 2019 IDERA, Inc. All rights reserved. DATA ECOSYSTEM COMPLEXITY ▪ Data Models • Conceptual • Logical • Physical • Dimensional • Enterprise/Canonical ▪ Visual Data Lineage ▪ Enterprise Data Dictionaries • Naming Standards • Attachments ▪ Metadata Repository • Business Glossaries
  26. 26. 26© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 26© 2019 IDERA, Inc. All rights reserved. SOME QUESTIONS MODELING CAN ANSWER ▪ To understand organizational data • What’s important? • Where is it? (can be may places) • Where did it come from? • How is it used (business processes)? • What is the chain of custody? • What are the business rules? ▪ Governance • How do I identify private information? • How long should I keep the information? • Master Data Management classification • Data quality • Is it fit for purpose? • What changed and why?
  27. 27. 27© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 27© 2019 IDERA, Inc. All rights reserved. DATA MODEL: GOVERNANCE METADATA
  28. 28. 28© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 28© 2019 IDERA, Inc. All rights reserved. DATA MODEL UTILIZATION Documentation and/or Physical Database Generation (project focused) Conceptual, Logical, Physical (Design) Enterprise including canonical, lineage, governance metadata Full governance metadata, business glossary integration, lifecycle, value- chain Fully integrated modeling, glossaries, metadata, self serve analytics DataMaturity Evolution
  29. 29. 29© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 29© 2019 IDERA, Inc. All rights reserved. PROCESS MODELING PROVIDES CONTEXT
  30. 30. 30© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 30© 2019 IDERA, Inc. All rights reserved. Corporate Accounting Customer Service Human Resources Marketing Sales Supply Chain Governance policies GDPR HIPAA PCI PIPEDA SOX MDM catalog Reference Data Master Data DATA GOVERNANCE LIBRARY
  31. 31. 31© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 31© 2019 IDERA, Inc. All rights reserved. GLOSSARIES & TERMS
  32. 32. 32© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 32© 2019 IDERA, Inc. All rights reserved. GOVERNANCE POLICY CATALOG
  33. 33. 33© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 33© 2019 IDERA, Inc. All rights reserved. REFERENCE DATA SET CATALOG
  34. 34. 34© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 34© 2019 IDERA, Inc. All rights reserved. FINAL APPROACH ▪ Information capability in organizations is poor (and declining!) • despite investment in AI, big data initiatives (shiny ball) ▪ We must address the human side of the equation, rather than chasing technology • Address people and process issues • Organizational change management ▪ Overcome the misconceptions and face the realities • Data governance is hard work • Cloud deployment doesn't push the management responsibility to someone else • Don't confuse data architecture & modeling with data science • Machine learning is not a substitute for data management • Don't take the "expert" rankings and recommendations at face value • Don't follow the crowd • Stop chasing the shiny ball of technology • Eliminate the ambiguous buzzwords
  35. 35. 35© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 35© 2019 IDERA, Inc. All rights reserved. POST FLIGHT DE-BRIEF ▪ Implement lasting change • Align data strategy with corporate vision, mission, goals • Quantifiable metrics to measure success ▪ Data architecture/enterprise architecture foundation • Data governance library • Integrated models/metadata/glossaries, policies ▪ Roll up your sleeves, but don’t take on too much at once • Be realistic and honest about your starting point • Start small and grow - pilot project(s) to demonstrate value • Focus on business areas with the best returns • Grow from there • Celebrate success! • Rinse & repeat.
  36. 36. 36© 2016 IDERA, Inc. All rights reserved. Proprietary and confidential. 36© 2019 IDERA, Inc. All rights reserved. THANKS! Any questions? You can find me at: ron.huizenga@idera.com @DataAviator

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