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Trillium Software Building the Business Case for Data Quality

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Trillium Software Building the Business Case for Data Quality

  1. 1. TRILLIUM SOFTWARE 2013 CUSTOMER CONFERENCEProving your worthBuilding the business case for Data QualityPresented By:Nigel TurnerVP InformationManagement Strategy1
  2. 2. 2012/13 – a year of horrors
  3. 3. 2012 / 2013 – another yearof data quality horrors
  4. 4. 4
  5. 5. And it’s going to get worse… Big Data, Cloud Computing & Data Virtualization and other driversare causing the exponential growth of data: In total some 2.5 quintillion bytes of data are being created daily;equivalent to 57.5 billion 32 GB iPads Today more digital data is being created every day than the digitizedequivalent of all the words ever spoken by human beings throughouthuman history Data quality shortcomings are already badly hurtingorganizations…
  6. 6. Trillium Software EMEA poll –Sept 2012QUESTION:AS A DQ PROFESSIONAL WHAT KEEPS YOU UP AT NIGHT?
  7. 7. A paradox…“We learn fromhistory that wedo not learnfrom history”7Georg Wilhelm Friedrich HegelGerman Philosopher1770 – 1831
  8. 8. The barriers to improving DQ…MAKINGTHE INITIALCASE FORINVESTMENTOVERCOMINGINDIFFERENCE& IGNORANCEDEMONSTRATINGCONTINUEDBENEFITSWHY DQVERSUS…?
  9. 9. Overcoming barriersA BUSINESS JUSTIFICATION / CASE IS REQUIRED
  10. 10. What is a Business Case & why doone?A business case is an argument, usually documented,that is intended to convince a decision maker toapprove some kind of actionWHY MAKE A BUSINESS CASE TO IMPROVE DATAQUALITY?Cut wasted expenditure and improve businessperformanceEnsure compliance with law & regulationImprove business process efficiencyImprove employee satisfaction and productivityProtect & enhance brand and reputation
  11. 11. Different kinds of DQ businesscases11LOOKINGAHEADLOOKINGBACKLOOKINGBOTHWAYS
  12. 12. Seven steps to successSTEP 1STEP 2STEP 3STEP 5STEP 6STEP 7STEP 4
  13. 13. Step 1 - Identify the Issue Start with acknowledged issues Think about your company or department’skey strategic goals How does data quality impact on these? Talk to key people across the problem area All grades and types – producers & consumers ofdata Uncover and analyse / revisit DQ problem(s): Business problems & impact Potential or actual solutions Benefits – financial & other
  14. 14. Step 2 - Gather Evidence Stakeholder Workshops Various techniques - Systems thinking, Rapid etc. Must have a clear purpose, and attendees empowered to makedecisions Interviews Use a pre-prepared list of questions to ensure structured captureand analysis Always try to interview in pairs and ideally face to face Issue / opportunity logs These logs may already exist Can be added to or revisited Data profiling & analysis Useful to do before workshop or interview sessions Will drive the key question – “So what?”
  15. 15. Step 3 - Quantify the costs offailure, risks & potential benefits Successful business cases are always backed up withrelevant & provable facts Potential costs & benefits generally fall into 4 categories: Economic Customer Experience Legal & Regulatory Compliance Brand Awareness & Reputation Focus on current costs of failure and not on the ‘value’ ofgood dataSome potential useful tools and techniques include:FishboneDiagramsLean DQApproachesForce FieldAnalysisRoot CauseAnalysisBenefitsAnalysisNet PresentValue (NPV)
  16. 16. Example – Summarybenefit analysis (partial)16DATADOMAINBENEFIT TYPE DESCRIPTION EXPECTED REVENUE INCREASE / COST SAVINGYear 1 Year 2 Year 3CUSTOMER COSTREDUCTIONBONUS ABUSEREDUCTION£125,000 £125,000 £125,000COSTREDUCTIONEMAIL M/KCOST REDN£10,000 £10,000 £10,000COSTREDUCTIONREDUCTIONIN 3RD PARTYADDRESSCLEANSE£50,000 £50,000 £50,000SALES RISKAVOIDANCEAUTOMATEDREGULATORYREPORTS£20,000 £20,000 £20,000REVENUEINCREASECROSS-SELLING OPPS50,000 50,000 50,000TOTAL £255,000 £255,000 £255,000
  17. 17. Example – hotel chainenterprise DQ summary case17 STRATEGIC GOAL 1 - Increase revenues by 20% Our data will not identify our most profitable customers so limitstargeted marketing opportunities Poor DQ has caused us brand damage so will discourage new bookings Parking revenues are not been accurately recorded so losing revenues >$2.5 million pa STRATEGIC GOAL 2 - Cut operating costs by 15% Returned mailings & duplicates due to poor DQ in marketing systemscost us $420k pa (197,000 direct mailings returned in 2012) Emergency supply orders to hotels cost $21.7m pa (20% abovestandard orders), costing group $3.6m pa. Caused by poor ordering /inventory data management STRATEGIC GOAL 3 - Introduce customer loyalty scheme Our current customer data contains duplicates, inaccuracies & missingdata, e.g. 37% of customer records have no zip code Impact is that launch of scheme will be 31% more expensive if no actiontaken to improve the data
  18. 18. Step 4 – Identify Stakeholders Develop a stakeholder map Use this to: Identify a potential senior executive champion Identify other key stakeholders to be involved Start to gain cross-organizational support Engage stakeholders who represent all affectedareas – both managers and front line people Tap into existing organisations and structures inthe business and try to use them, e.g. processimprovement forums, programme boards etc.
  19. 19. Step 5 - Draft the Case Ensure you comply with your companystandards for business cases / case studies Where possible obtain copies of othersuccessful cases and emulate their style Use business language and avoid technicaljargon If DQ improvements have already been madeinstead produce internal case studies anddisseminate Use your stakeholders to review the draftbusiness case / case study
  20. 20. Step 6 – Socialise the Case Data quality improvement is a collaborativeprocess so socialisation of data quality businesscases is critical The best cases for Data Quality improvement areusually better driven “bottom up” Secure support from those who will implementimprovements BEFORE approaching senior managersand seeking their support Use these supporters to help socialise and sell the caseand break down potential barriers and blockers
  21. 21. Step 7 – Finalise and presentthe case / case study“If you cannot SELL your business case in seven PowerPointslides and in under 20 minutes or less you don’t have a case”(CEO of Global Manufacturing Company) Ensure that final cases are: Short, simple, visual and impactful Capable of delivery across the organization Focused on business benefits and not technical features Before presenting: Practise and memorise your key points Think about potential objections When presenting: Show personal passion, confidence & commitment If you don’t believe in it, they won’t!
  22. 22. The barriers to improving DQ…MAKINGTHE INITIALCASE FORINVESTMENTOVERCOMINGINDIFFERENCE& IGNORANCEDEMONSTRATINGCONTINUEDBENEFITSWHY DQVERSUS…?
  23. 23. Making the initial case –further tips23IncludeMarket/ CompetitorperspectiveGet experthelpInclude‘Do nothing’optionSeekIncrementalfunding
  24. 24. Proving continued value –further tips24(Re) engagewith businessbeneficiariesSpread thegood news…past, present& futureIdentifyfurtherDQ issuesUse theirwords,not yours
  25. 25. Overcoming indifference- further tips25DostakeholderanalysisDevelop2 / 10 / 30minutepitchesEducate& re-educateSee theworld asthey see it
  26. 26. Prioritising DQ over other cases- further tips26Be patientSeekquickwinsKeep itsimpleMust showRoI and / orunacceptablerisk
  27. 27. 27Proving your worth – keeping it simple“You have to workhard to get yourthinking clean tomake it simple. Butits worth it in theend because onceyou get there, youcan movemountains.” Steve Jobs1955 - 2011
  28. 28. QuestionsProving your worthMaking the business case for data quality28

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