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How to Build & Sustain the
Operating Model for Data
Governance
www.datumstrategy.com
Your Business Intelligence &
Analytics are Only as Good as
Your Data
(Uh oh)
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
So, Why is Data Governance so Important?
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
…Because Master Data Challenges Materialize Across the Organization
Ineffective Business
Decisions
Lack of consistent information
needed to make critical decisions
supporting innovation and growth
Business decisions are corrupted
by data integrity challenges
Operational Planning
Customer Insight
Lack of consolidated 360 degree
view of customer data across all
channels
Territory alignment and analytics
Customer hierarchy and grouping
visibility/profitability analysis
IT Operational
Efficiencies
Reusable frameworks to
leverage best practices across all
data domains
Mitigating Risk for Application
roll out
Applying enabling technology
Gaining Procurement and
Supply Chain Efficiencies
Reduce procurement spend
Enable Strategic Sourcing
Optimize inventory levels
Increase visibility to historical and in-
flight spend
Extend sourcing reach and impact
through compliance
Enforcement of negotiated contracts
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Evolution of Information Value in ERP Landscape
InformationTrustworthiness
Time
ERP Data Readiness
Mobilization
Point
Organization
Data Gov.
Policy
Recognition
of Lost ROI
The Scramble How Could That Be? We Own It Let’s Start with Data!
Focus is on migrating
data to the ERP and
making it “fit” or
business-ready for
ERP processes.
Data regardless of
type, degrades at a
pace of between 2 and
7% per month because
of external factors,
poorly defined
processes and user
issues.
Business and IT begin
to recognize a need for
a working relationship
to resolve information
reliability beyond
“break-fix” and
address ownership,
organization,
processes and value
Data and Information
Management is
embedded in all process
improvement and
transformational
programs as a key
success factor with
committed ownership
and participation.
RISK
REDUCTION
VALUE
CREATION
Mobilize Earlier!
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Data & Analytical Insight Opportunities are Dependent on
EIM Success
Executive
Insight
Operational
Challenges
We Want:
• Trusted Information for Better Decisions
• Predictive Analytics to Drive Performance
• Holistic Enterprise View
• Real-Time Trusted Information
• “Sexy BI/Analytics”
• Operational Integrity
We Need:
• Quality Controls Aligned to Process Integrity
• Process & Policy Definitions
• Organizational Alignment
• Organizational Ownership
• Individual Data Discipline
• Stewardship Tools & Applications
• Sustain & Enforce the Basics
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
BUILDING A
BUSINESS CASE
13
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Business Case Challenge #1
Generic 'value’ statements are simply not
enough to initiate a Data Governance
“Program” in an environment where every
dollar spent is heavily scrutinized
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
The Data Steward Says…
“Poor data quality is a primary reason
40% of all business initiatives fail to
achieve their desired benefits”
“Data quality affects overall productivity
by as much as 20%”
“Customer data is estimated to be 25%
inaccurate on average”
”Master data quality degrades between
2%-7% per month”
The Executive Response…
Pro Tip: Avoid Generic Value Statements
“I guess that makes sense, but how does
that specifically relate to us and what our
challenges are here ?”
“OK, but how exactly does spending more
money on master data deliver this value ? I
just don’t see the connection.”
”We’ve tried this before and it never seems
to help … why is this different ?”
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Business Case Challenge #2
Models based purely on tactical savings generally don’t provide
enough value or benefit to justify any tool or headcount investments
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
The Data Steward Says…
“Almost 40% of my staff’s time is spent
chasing down and fixing data quality
issues …”
“Our current processes and tools simply
can’t address the complexity of
effectively managing our data – I know
that we can eliminate over 10 touch
points alone with new workflow
application”
“If we take on this acquisition, I
probably need to add 4-6 more people
just to handle the increased data
volumes.”
The Executive Response…
Pro Tip: Avoid Focusing Solely on Tactical Savings
“Isn’t ensuring data quality their job?”
“I never heard about this as a significant
issue before, using our current tools, why
is this suddenly an issue I need to
address now?”
“So if we implement this workflow tool,
how many people can we eliminate the
data management team?”
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Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Prioritizing Against Strategic Value Drivers
Strategic Insights
Information
Data
KPI’s / Measures
When building your business case, it’s important to prioritize and focus on the
data, information and metrics that actually provide key business insights
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Determining the Business Value of Data
Strategic - “Transform the Business”
Focused on the ‘top-line’ value drivers associated
with growth, innovation and scale.
Tactical – “Run the Business”
Focused on the execution-based
savings that can be realized based on
optimizing the data model and data
maintenance processes.
Operational - ”Grow the Business”
Focused on savings driven based on improving
data quality, deploying a sustainable
governance model and optimizing our data
(and related) processes.
MOQ Defined for MM
Cost to Maintain
Time to Complete
Number of Systems / Interfaces
Attributes & Hierarchy
(and related) Data Quality
Compliance to Rules & Standards
Single Version of Truth
Supply Chain Optimization and Planning
New Product Introduction
Reducing Days Sales Outstanding
Customer Profitablitiy Analysis
Mergers and Acquisitions
Value Drivers
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Governance Rules
Linking Value Drivers to Data
The Why, How, Where and Who of
managing and governing our data
KPI’s and Metrics
KPI Portfolio
“The information we need
to drive business growth”
Business Rules
“The steps to capture
the required data”
Governance Strategy
“How we govern the
underlying data to
drive trust”
Shareholder
Value
Commercial
Profit
Revenue
Growth Net Price
Commercial Margin
Std. Base Margin
Order Fill Rate
Overview of Planning Item and Finished Good Global Workflows
Version 1.1 – September 27, 2013
QuEST Activity
Brief Approved
Marketing
Request
Planning Item
0
days3
Material Master LDA
Create New
Planning Item/
ZREP
1
days2
Pricing LDA
Populate
Planning Price
4
days0
This Database
Waiting for IR
Approval
5
days0
Marketing
Update New
Finished Good
Request
0
days2
Sales & IT Services
Update
Classifications
1.1
days2
Demand Planning
Update
Classifications
1.2
days2
LDAs
Update FG Setup and
MOE & Classifications
2
days2
R&D QA
Populate Shelf
Life Data
4.2
days2
R&D SST
Populate
Dimensions and
Weights
4.1
days0
Workflow
Awaiting
Packaging
Specs to be
moved to
Pending
3
days2
LDAs
Create PKI and
PKI Det Rules and
Activate the FG
5
End of FG Global
WF
days2
R&D SST
Populate
Declared Weight
2.2
days2
Demand Planning
Populate
Classifications
2.3
Workflow triggers
Pricing Workflow to
circulate.
days2
Material Master LDA
Populate MOEs
and
Classifications
3
QuEST
Investment Reco
Approved
Approve Waiting
for IR Step
Marketing
End of Planning
WF
Planning Item
Workflow
Finished Good
Global Workflow
days2
Sales & IT Services
Populate
Classifications
2.4
days2
Ops Planners
Assign Production
Plant
2.1
Workflow sends email
notification to Sales
Planning, Demand
Planners, Ops Planners &
Replen
(only for non-seasonal)
Workflow sends email
notification to Sales
Planning, Demand
Planners, Ops Planners &
Replen
______________________________________________________________________________________
Process & Workflow
1
2
3
Calculation formulas and required
data to drive & support the metric
Linkedtogether
Solution
Deployment
Scorecards, Tools,
Dashboards, etc.
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
The Critical Components to Connect Data to Business Value
Clarity of Sight
C-Suite
Grow Revenue
Shareholders
Revenue Growth of
10% Year on Year
Sales
Increase Customer
Share of Wallet
Sales & Supply Chain
Improve Availability
of Product
Business Process
Improve Supply Chain
And Order Fulfillment
Integration
Process Metrics
Improve Order Fill
Rate by 8%
A
B
% Order Fill
Rate
NA | SAP ECC
EMEA | SAP
ECC
LATAM | SAP
ECC
NA | SAP ECC
EMEA | SAP
ECC
LATAM | SAP
ECC
VBUP |
LFSTA
VBUP |
LFSTA
VBUP |
LFSTA
VBEP |
BMENG
VBEP |
BMENG
VBEP |
BMENG
(A/B)*100
# Items delivered as ordered
# Items delivered
Information
Trust
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
A Real DATUM Customer…
0
5
10
15
20
25
30
35
40
Combined APV-ECC 5 PEP-ECC 6
%DuplicateRecords
System
Duplicate Name
Duplicate Address
• Duplicate vendor records cause multiple problems:
• Spend Analytics, Category Spend – cannot be realized
• Strategic Sourcing cannot be realized (typically 1-3% savings on total spend)
• Significant tax overpayment, or paying the same vendor 2X
• Fraud, Risk, Money Laundering
• Insight and decision making are compromised
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Details Matter, Governance is Crucial
• Accurate Tax Reporting is not achievable given the data integrity
• Risk of non-compliance with tax regulations
• Risk can be mitigated through proper Tax ID validation
93% of active Customer and
Vendor records have NO Tax ID
77,453
6618
Vendor Records
Without
Tax ID
With Tax
ID
178,830
7114
Customer Records
Without
Tax ID
With Tax
ID
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Improve Value and
Competitiveness
Innovation and Loyalty
Capital Optimization
Manage Risk
Employee Sat and Development
Rewards & Recognition
Strategy Plan Maturity
Program Status & Execution
Organization ReadinessOperational Efficiency
Value Delivery
Operating Margin
Asset Efficiency
Business Process Optimization
Shareholder Value
“Moving the needle” on Shareholder value requires decomposing business objectives
into a portfolio of cross-functional business initiatives and measures. The success of
these strategic initiatives requires a clearly defined target value, organization
readiness, process excellence and information trust of which metric and data
standards, governance rules and data quality provide the foundation.
Revenue Growth
Metric Approach -- Target Areas for Results
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Key Business Case Action Items
Looking beyond a simple ‘Business Justification’ and delivering a true ‘Business Case’ requires a
structured and disciplined approach
Developing an Effective Business Case
 Use tactical saving as a baseline, but also focus
on identifying ‘achievable’ value against the
strategic drivers that really matter to the
business
 Involve key stakeholders throughout the entire
process - ultimately they will stand behind the
recommendations and ‘own’ the numbers
 Use real data and real examples and clearly
articulate the ‘as-is’ versus ‘to-be’ visually
 Tie your program recommendations (‘what
you’re going to do’) to specific benefits (‘what
they will get’) … Remember: generic benefit
statements won’t be sufficient
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
ESTABLISHING
THE OPERATING
MODEL
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
50+
Pro tip: Find out how complex your material process is and use it in the business case!
How Many SAP Screens does it Typically Take to
Create a Manufactured Product?
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Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
13+
Cost Accounting QualitySales
Requestor Material Master
Coordinator
Engineering Marketing Purchasing
Finance Plant
Logistics
Production
Control
Manufacturing Warehouse
How many functional groups typically participate and who is the single, true owner?
How Many Functional Groups Participate in the Process?
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Requestor
MDM Coordinator
Engineering
Marketing
Finance
Plant Logistics
Prod. Control
Manufacturing
Cost Accounting
Sales
Prod. Control
Manufacturing
Cost Accounting
Who is Responsible for What, and When,
Creates COMPLEXITY… You Need an Operating Model
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Key Considerations for a Successful Operating Model
Delivering the Operating Model
(Prioritization, Designing Ownership, Process Improvement, Solution Readiness, Accelerated
Deployment)
People & Policies Process Design &
Methodology
Business Impact of
Data & Information
Information Value Management®
Information Design & Knowledge Management
Sustaining Governance
based on Business
Outcomes
Roles and Responsibilities
Design for Rules,
Standards, Metrics,
Maturity Readiness
Content and Accelerators
DATUM’s
Software
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Best in Class Organizations Utilize 3 Levels of Ownership
Data Management Support
IT, Data Center of Excellence, Business Support
Operational Data Governance
Data SME - Business
Data Governance
Program Leadership
Data SME - IT
Business Ownership
Business Data Owner
(Mgmt-Level Business Owner)
Operational Data Owner
(Sub-Process Leadership)
Who Should Own Data Governance?
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Operating Model Construction
We typically see three (3) methods of forming a Data Governance Organizations – each one has
benefits and risks, which need to be carefully considered
 Net-New: Formation of an entirely new
organizational entity focused on data and
information governance.
 Lift & Shift: Identify existing, data-centric
organizational constructs and repurpose them into
a formal governance operating model.
 Leverage Existing: Augment an existing
organziational governance model to include data
and information governance.
Data
Governance
Operating Model
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
DATUM’s Methodology for Creation of Operating Models
Business accountability and a
well defined Operating Model
for master data governance –
with ‘appropriate’ models for
tactical data maintenance and
effective governance
Data Standards and Business Rules
that are “operationalized” -
accessible by those providing it and
consistently applied and governed
across relevant business processes
Optimized and integrated
processes to ensure the
right data is captured at the
right time, by the right
person, with the proper data
quality checks
Integrated tools to capture, monitor
and enforce data standards and
business rules for master data and
‘orchestrate’ the end to end
business processes and enable
analytics and decision-making
Successful
Programs
To be successful, companies must address gaps across all of the core components of
successful programs.
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Compliance – use and leverage the standards, processes
and platforms we’re introducing together
What DATUM Expects from the Organization …
Participation – asisst us in identifying and defining data
standards that will drive the benefits we desire
Insight – what do you need from us to ensure your
business needs will be met ?
Information - who in your organization needs to be
informed and what data elements included ?
Communication - what are you hearing? are there
concerns that need to be addressed by EDM?
Participation in the Data Management efforts is critical to long term success
Ownership – regional through local governance
Click here for a free guide:
Getting Started with Data Governance
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
ENABLING
TECHNOLOGIES
Click here for a free guide:
Getting Started with Data Governance
“Rule Readiness” dictates
“Tool Readiness” … how well
the organization is positioned
to develop governance rules
will dictate solution and
initiative success.
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Existing docs
Tacit knowledge
System Config
Business Metrics
Representation of
Current Policy
29 Rules 75.9%
Rule Readiness
Rule Readiness to Support Objectives…
Or “RULES BEFORE TOOLS”
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
Read more exclusive
content on our blog
by clicking here
Let’s Stay Together!
Make sure you connect with us to get access to more great content
focused on helping you build a successful Data Governance
program
Click on an
icon to
follow
DATUM!
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Complexity. Simplified.
DATUM LLC simplifies information complexity to enable digital
transformation.
By empowering enterprises to simplify their processes,
systems, and data initiatives, DATUM delivers greater
competitive advantage and profitability.
Our unique methodology is built into the Information Value
Management® information governance platform that delivers
visibility to what data matters the most to your organization
About DATUM
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
ALL RIGHTS RESERVED
•This publication (in whole or in part) may not be reproduced or transmitted in any form or for any purpose without the express permission of [DATUM] LLC.
The information contained herein may be changed without prior notice.
•SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.
•Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects
products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United
States and in other countries. Business Objects is an SAP company.
•Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
•Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States
and/or other countries.
•Oracle is a registered trademark of Oracle Corporation.
•HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
•Java is a registered trademark of Sun Microsystems, Inc.
•JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
•All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational
purposes only. National product specifications may vary.
•These materials are subject to change without notice. These materials are provided by [DATUM] LLC (“DATUM") for informational purposes only, without
representation or warranty of any kind, and DATUM shall not be liable for errors or omissions with respect to the materials. The only warranties for DATUM
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should
be construed as constituting an additional warrant.
•[Information Value Management]®, [Value on Investment]® and [VoI]® are registered marks of [DATUM] LLC
•[DataOrg Value Chain]™, [Business Accelerator Matrix]™, [BAM]™, [DATUM] Dimensions™, [DATUM] Maturity Map™, [DATUM] Maturity Model™, [FACT
Engagement]℠ and [Longitudinal Data Strategy]℠ are trademarks of [DATUM] LLC
Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC
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How to Build & Sustain a Data Governance Operating Model

  • 1. How to Build & Sustain the Operating Model for Data Governance www.datumstrategy.com
  • 2. Your Business Intelligence & Analytics are Only as Good as Your Data (Uh oh)
  • 3. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC So, Why is Data Governance so Important? Click here for a free guide: Getting Started with Data Governance
  • 4. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC …Because Master Data Challenges Materialize Across the Organization Ineffective Business Decisions Lack of consistent information needed to make critical decisions supporting innovation and growth Business decisions are corrupted by data integrity challenges Operational Planning Customer Insight Lack of consolidated 360 degree view of customer data across all channels Territory alignment and analytics Customer hierarchy and grouping visibility/profitability analysis IT Operational Efficiencies Reusable frameworks to leverage best practices across all data domains Mitigating Risk for Application roll out Applying enabling technology Gaining Procurement and Supply Chain Efficiencies Reduce procurement spend Enable Strategic Sourcing Optimize inventory levels Increase visibility to historical and in- flight spend Extend sourcing reach and impact through compliance Enforcement of negotiated contracts
  • 5. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Evolution of Information Value in ERP Landscape InformationTrustworthiness Time ERP Data Readiness Mobilization Point Organization Data Gov. Policy Recognition of Lost ROI The Scramble How Could That Be? We Own It Let’s Start with Data! Focus is on migrating data to the ERP and making it “fit” or business-ready for ERP processes. Data regardless of type, degrades at a pace of between 2 and 7% per month because of external factors, poorly defined processes and user issues. Business and IT begin to recognize a need for a working relationship to resolve information reliability beyond “break-fix” and address ownership, organization, processes and value Data and Information Management is embedded in all process improvement and transformational programs as a key success factor with committed ownership and participation. RISK REDUCTION VALUE CREATION Mobilize Earlier!
  • 6. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Data & Analytical Insight Opportunities are Dependent on EIM Success Executive Insight Operational Challenges We Want: • Trusted Information for Better Decisions • Predictive Analytics to Drive Performance • Holistic Enterprise View • Real-Time Trusted Information • “Sexy BI/Analytics” • Operational Integrity We Need: • Quality Controls Aligned to Process Integrity • Process & Policy Definitions • Organizational Alignment • Organizational Ownership • Individual Data Discipline • Stewardship Tools & Applications • Sustain & Enforce the Basics Click here for a free guide: Getting Started with Data Governance
  • 7. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC BUILDING A BUSINESS CASE 13 Click here for a free guide: Getting Started with Data Governance
  • 8. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Business Case Challenge #1 Generic 'value’ statements are simply not enough to initiate a Data Governance “Program” in an environment where every dollar spent is heavily scrutinized
  • 9. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC The Data Steward Says… “Poor data quality is a primary reason 40% of all business initiatives fail to achieve their desired benefits” “Data quality affects overall productivity by as much as 20%” “Customer data is estimated to be 25% inaccurate on average” ”Master data quality degrades between 2%-7% per month” The Executive Response… Pro Tip: Avoid Generic Value Statements “I guess that makes sense, but how does that specifically relate to us and what our challenges are here ?” “OK, but how exactly does spending more money on master data deliver this value ? I just don’t see the connection.” ”We’ve tried this before and it never seems to help … why is this different ?” Click here for a free guide: Getting Started with Data Governance
  • 10. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Business Case Challenge #2 Models based purely on tactical savings generally don’t provide enough value or benefit to justify any tool or headcount investments Click here for a free guide: Getting Started with Data Governance
  • 11. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC The Data Steward Says… “Almost 40% of my staff’s time is spent chasing down and fixing data quality issues …” “Our current processes and tools simply can’t address the complexity of effectively managing our data – I know that we can eliminate over 10 touch points alone with new workflow application” “If we take on this acquisition, I probably need to add 4-6 more people just to handle the increased data volumes.” The Executive Response… Pro Tip: Avoid Focusing Solely on Tactical Savings “Isn’t ensuring data quality their job?” “I never heard about this as a significant issue before, using our current tools, why is this suddenly an issue I need to address now?” “So if we implement this workflow tool, how many people can we eliminate the data management team?” Click here for a free guide: Getting Started with Data Governance
  • 12. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Prioritizing Against Strategic Value Drivers Strategic Insights Information Data KPI’s / Measures When building your business case, it’s important to prioritize and focus on the data, information and metrics that actually provide key business insights Click here for a free guide: Getting Started with Data Governance
  • 13. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Determining the Business Value of Data Strategic - “Transform the Business” Focused on the ‘top-line’ value drivers associated with growth, innovation and scale. Tactical – “Run the Business” Focused on the execution-based savings that can be realized based on optimizing the data model and data maintenance processes. Operational - ”Grow the Business” Focused on savings driven based on improving data quality, deploying a sustainable governance model and optimizing our data (and related) processes. MOQ Defined for MM Cost to Maintain Time to Complete Number of Systems / Interfaces Attributes & Hierarchy (and related) Data Quality Compliance to Rules & Standards Single Version of Truth Supply Chain Optimization and Planning New Product Introduction Reducing Days Sales Outstanding Customer Profitablitiy Analysis Mergers and Acquisitions Value Drivers Click here for a free guide: Getting Started with Data Governance
  • 14. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Governance Rules Linking Value Drivers to Data The Why, How, Where and Who of managing and governing our data KPI’s and Metrics KPI Portfolio “The information we need to drive business growth” Business Rules “The steps to capture the required data” Governance Strategy “How we govern the underlying data to drive trust” Shareholder Value Commercial Profit Revenue Growth Net Price Commercial Margin Std. Base Margin Order Fill Rate Overview of Planning Item and Finished Good Global Workflows Version 1.1 – September 27, 2013 QuEST Activity Brief Approved Marketing Request Planning Item 0 days3 Material Master LDA Create New Planning Item/ ZREP 1 days2 Pricing LDA Populate Planning Price 4 days0 This Database Waiting for IR Approval 5 days0 Marketing Update New Finished Good Request 0 days2 Sales & IT Services Update Classifications 1.1 days2 Demand Planning Update Classifications 1.2 days2 LDAs Update FG Setup and MOE & Classifications 2 days2 R&D QA Populate Shelf Life Data 4.2 days2 R&D SST Populate Dimensions and Weights 4.1 days0 Workflow Awaiting Packaging Specs to be moved to Pending 3 days2 LDAs Create PKI and PKI Det Rules and Activate the FG 5 End of FG Global WF days2 R&D SST Populate Declared Weight 2.2 days2 Demand Planning Populate Classifications 2.3 Workflow triggers Pricing Workflow to circulate. days2 Material Master LDA Populate MOEs and Classifications 3 QuEST Investment Reco Approved Approve Waiting for IR Step Marketing End of Planning WF Planning Item Workflow Finished Good Global Workflow days2 Sales & IT Services Populate Classifications 2.4 days2 Ops Planners Assign Production Plant 2.1 Workflow sends email notification to Sales Planning, Demand Planners, Ops Planners & Replen (only for non-seasonal) Workflow sends email notification to Sales Planning, Demand Planners, Ops Planners & Replen ______________________________________________________________________________________ Process & Workflow 1 2 3 Calculation formulas and required data to drive & support the metric Linkedtogether Solution Deployment Scorecards, Tools, Dashboards, etc.
  • 15. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC The Critical Components to Connect Data to Business Value Clarity of Sight C-Suite Grow Revenue Shareholders Revenue Growth of 10% Year on Year Sales Increase Customer Share of Wallet Sales & Supply Chain Improve Availability of Product Business Process Improve Supply Chain And Order Fulfillment Integration Process Metrics Improve Order Fill Rate by 8% A B % Order Fill Rate NA | SAP ECC EMEA | SAP ECC LATAM | SAP ECC NA | SAP ECC EMEA | SAP ECC LATAM | SAP ECC VBUP | LFSTA VBUP | LFSTA VBUP | LFSTA VBEP | BMENG VBEP | BMENG VBEP | BMENG (A/B)*100 # Items delivered as ordered # Items delivered Information Trust
  • 16. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC A Real DATUM Customer… 0 5 10 15 20 25 30 35 40 Combined APV-ECC 5 PEP-ECC 6 %DuplicateRecords System Duplicate Name Duplicate Address • Duplicate vendor records cause multiple problems: • Spend Analytics, Category Spend – cannot be realized • Strategic Sourcing cannot be realized (typically 1-3% savings on total spend) • Significant tax overpayment, or paying the same vendor 2X • Fraud, Risk, Money Laundering • Insight and decision making are compromised
  • 17. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Details Matter, Governance is Crucial • Accurate Tax Reporting is not achievable given the data integrity • Risk of non-compliance with tax regulations • Risk can be mitigated through proper Tax ID validation 93% of active Customer and Vendor records have NO Tax ID 77,453 6618 Vendor Records Without Tax ID With Tax ID 178,830 7114 Customer Records Without Tax ID With Tax ID
  • 18. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Improve Value and Competitiveness Innovation and Loyalty Capital Optimization Manage Risk Employee Sat and Development Rewards & Recognition Strategy Plan Maturity Program Status & Execution Organization ReadinessOperational Efficiency Value Delivery Operating Margin Asset Efficiency Business Process Optimization Shareholder Value “Moving the needle” on Shareholder value requires decomposing business objectives into a portfolio of cross-functional business initiatives and measures. The success of these strategic initiatives requires a clearly defined target value, organization readiness, process excellence and information trust of which metric and data standards, governance rules and data quality provide the foundation. Revenue Growth Metric Approach -- Target Areas for Results
  • 19. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Key Business Case Action Items Looking beyond a simple ‘Business Justification’ and delivering a true ‘Business Case’ requires a structured and disciplined approach Developing an Effective Business Case  Use tactical saving as a baseline, but also focus on identifying ‘achievable’ value against the strategic drivers that really matter to the business  Involve key stakeholders throughout the entire process - ultimately they will stand behind the recommendations and ‘own’ the numbers  Use real data and real examples and clearly articulate the ‘as-is’ versus ‘to-be’ visually  Tie your program recommendations (‘what you’re going to do’) to specific benefits (‘what they will get’) … Remember: generic benefit statements won’t be sufficient Click here for a free guide: Getting Started with Data Governance
  • 20. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC ESTABLISHING THE OPERATING MODEL Click here for a free guide: Getting Started with Data Governance
  • 21. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC 50+ Pro tip: Find out how complex your material process is and use it in the business case! How Many SAP Screens does it Typically Take to Create a Manufactured Product? Click here for a free guide: Getting Started with Data Governance
  • 22. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC 13+ Cost Accounting QualitySales Requestor Material Master Coordinator Engineering Marketing Purchasing Finance Plant Logistics Production Control Manufacturing Warehouse How many functional groups typically participate and who is the single, true owner? How Many Functional Groups Participate in the Process? Click here for a free guide: Getting Started with Data Governance
  • 23. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Requestor MDM Coordinator Engineering Marketing Finance Plant Logistics Prod. Control Manufacturing Cost Accounting Sales Prod. Control Manufacturing Cost Accounting Who is Responsible for What, and When, Creates COMPLEXITY… You Need an Operating Model
  • 24. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Key Considerations for a Successful Operating Model Delivering the Operating Model (Prioritization, Designing Ownership, Process Improvement, Solution Readiness, Accelerated Deployment) People & Policies Process Design & Methodology Business Impact of Data & Information Information Value Management® Information Design & Knowledge Management Sustaining Governance based on Business Outcomes Roles and Responsibilities Design for Rules, Standards, Metrics, Maturity Readiness Content and Accelerators DATUM’s Software
  • 25. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Best in Class Organizations Utilize 3 Levels of Ownership Data Management Support IT, Data Center of Excellence, Business Support Operational Data Governance Data SME - Business Data Governance Program Leadership Data SME - IT Business Ownership Business Data Owner (Mgmt-Level Business Owner) Operational Data Owner (Sub-Process Leadership) Who Should Own Data Governance?
  • 26. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Operating Model Construction We typically see three (3) methods of forming a Data Governance Organizations – each one has benefits and risks, which need to be carefully considered  Net-New: Formation of an entirely new organizational entity focused on data and information governance.  Lift & Shift: Identify existing, data-centric organizational constructs and repurpose them into a formal governance operating model.  Leverage Existing: Augment an existing organziational governance model to include data and information governance. Data Governance Operating Model Click here for a free guide: Getting Started with Data Governance
  • 27. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC DATUM’s Methodology for Creation of Operating Models Business accountability and a well defined Operating Model for master data governance – with ‘appropriate’ models for tactical data maintenance and effective governance Data Standards and Business Rules that are “operationalized” - accessible by those providing it and consistently applied and governed across relevant business processes Optimized and integrated processes to ensure the right data is captured at the right time, by the right person, with the proper data quality checks Integrated tools to capture, monitor and enforce data standards and business rules for master data and ‘orchestrate’ the end to end business processes and enable analytics and decision-making Successful Programs To be successful, companies must address gaps across all of the core components of successful programs.
  • 28. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Compliance – use and leverage the standards, processes and platforms we’re introducing together What DATUM Expects from the Organization … Participation – asisst us in identifying and defining data standards that will drive the benefits we desire Insight – what do you need from us to ensure your business needs will be met ? Information - who in your organization needs to be informed and what data elements included ? Communication - what are you hearing? are there concerns that need to be addressed by EDM? Participation in the Data Management efforts is critical to long term success Ownership – regional through local governance Click here for a free guide: Getting Started with Data Governance
  • 29. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC ENABLING TECHNOLOGIES Click here for a free guide: Getting Started with Data Governance
  • 30. “Rule Readiness” dictates “Tool Readiness” … how well the organization is positioned to develop governance rules will dictate solution and initiative success.
  • 31. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Existing docs Tacit knowledge System Config Business Metrics Representation of Current Policy 29 Rules 75.9% Rule Readiness Rule Readiness to Support Objectives… Or “RULES BEFORE TOOLS”
  • 32. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Read more exclusive content on our blog by clicking here Let’s Stay Together! Make sure you connect with us to get access to more great content focused on helping you build a successful Data Governance program Click on an icon to follow DATUM! Click here for a free guide: Getting Started with Data Governance
  • 33. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Complexity. Simplified. DATUM LLC simplifies information complexity to enable digital transformation. By empowering enterprises to simplify their processes, systems, and data initiatives, DATUM delivers greater competitive advantage and profitability. Our unique methodology is built into the Information Value Management® information governance platform that delivers visibility to what data matters the most to your organization About DATUM
  • 34. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC ALL RIGHTS RESERVED •This publication (in whole or in part) may not be reproduced or transmitted in any form or for any purpose without the express permission of [DATUM] LLC. The information contained herein may be changed without prior notice. •SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. •Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. •Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. •Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. •Oracle is a registered trademark of Oracle Corporation. •HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. •Java is a registered trademark of Sun Microsystems, Inc. •JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. •All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. •These materials are subject to change without notice. These materials are provided by [DATUM] LLC (“DATUM") for informational purposes only, without representation or warranty of any kind, and DATUM shall not be liable for errors or omissions with respect to the materials. The only warranties for DATUM products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warrant. •[Information Value Management]®, [Value on Investment]® and [VoI]® are registered marks of [DATUM] LLC •[DataOrg Value Chain]™, [Business Accelerator Matrix]™, [BAM]™, [DATUM] Dimensions™, [DATUM] Maturity Map™, [DATUM] Maturity Model™, [FACT Engagement]℠ and [Longitudinal Data Strategy]℠ are trademarks of [DATUM] LLC
  • 35. Confidential and Proprietary. All rights reserved Copyright© 2014. DATUM LLC Click here for a free guide: Getting Started with Data Governance