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Using Lean Principles to Manage
the Data Value Chain
Mario Faria
Twitter: @mariofaria
Head and Chief Data Officer
CDO, Inc.
http://www.cdo-inc.com/
Track: Data Quality, Data Governance
Industry:
Mario Faria
2
About Mario Faria
•  Mario was one of the first Chief Data Officers in the world
•  Acting as a CDO for the last 5 years in North America, South America,
Europe and Asia
•  Passion : Bring order to the chaos
•  Leader of teams working in Analytics, Data Monetization, Data Quality,
Data Governance, Operations and Business Architecture
•  Motto: “If you do not treat people, technology and data as economic
assets, they will become liabilities”
Mario Faria
Twitter: @mariofaria
Head and Chief Data Officer
CDO, Inc.
http://www.cdo-inc.com/
Managing your most
important asset to
drive business
performance
In	
  May	
  1915,	
  The	
  Boston	
  Red	
  Sox	
  Babe	
  Ruth	
  
pitching	
  debut	
  and	
  his	
  first	
  home	
  run,	
  but	
  …	
  
The	
  Rex	
  Sox	
  lost	
  to	
  the	
  NY	
  Yanks	
  	
  
Your	
  data	
  strategy	
  is	
  a	
  journey	
  
Mario Faria
9
The 3 Architectures a Company needs
to succeed
Business
Architecture
Technology
Architecture
Data
Architecture
Mario Faria
10
Data & Analytics Responsibilities
•  Data Strategy
•  Data Governance
•  Data Quality
•  Data Analytics
•  Data Insights
•  Data Architecture
•  Data Acquisitions
•  Data Operations
•  Data Policies
•  Data Security
•  Data Protection
A	
  data	
  &	
  analyGcs	
  team	
  is	
  
responsible	
  for	
  transforming	
  
data	
  assets	
  into	
  compeGGve	
  
insights,	
  that	
  will	
  drive	
  
business	
  decisions	
  and	
  acGons,	
  
using	
  people,	
  processes	
  and	
  
technologies	
  
Data	
  teams	
  build	
  the	
  
bridge	
  between	
  business	
  
and	
  IT	
  
Mario Faria
13
Mario Faria
14
Mario Faria
15
A data product allows an objective to
be achieved using data & analytics
Mario Faria
16
More and more, leaders are being hired to
think strategically about all the steps, from
getting raw data and making it useful to the
business users
Mario Faria
17
Chief	
  Data	
  Officer	
  
(focused	
  on	
  data	
  
management)	
  
Chief	
  Digital	
  Officer	
  
(focused	
  on	
  digital	
  
transforma8on)	
  
Chief	
  Analy8cs	
  Officer	
  
(focused	
  on	
  decision	
  
management	
  ini8a8ves)	
  
The	
  ul8mate	
  leader	
  who	
  
creates	
  and	
  executes	
  digital,	
  
data	
  and	
  analy8cs	
  strategies	
  
to	
  drive	
  business	
  value	
  	
  
Copyright:	
  Mario	
  Faria	
  2014	
  
The	
  Chief	
  Data	
  /	
  AnalyGcs	
  /	
  Digital	
  Officer	
  roles	
  
Mario Faria
18
A few lessons I have learned to
become a data and analytics expert
•  Many problems with streamlining a data strategy
•  Major concerns with data management
•  How you can overcome the issues
•  What I have learned from several data journeys
The
Data Life
Cycle
Mario Faria
20
The Data Value Chain
Mario Faria
21
A few problems in most organizations
•  Data is fragmented and scattered
•  Silos of information hanging around
•  Like the truth, data has many versions
•  The Data Lifecycle is a complex process
•  Data projects being managed by IT
•  A formal process to data management is
a requirement in order to do Analytics
Mario Faria
22
Data is an abstract concept
Using Supply Chain
Concepts and
Techniques to
manage your
data assets
Mario Faria
24
Data & Analytics as a Production System
Mario Faria
25
The Deming Model :
Production Viewed as a System
Mario Faria
26
What is Data Quality ?
•  Quality is a customer perception
•  A few dimensions: freshness, coverage,
completeness, accuracy
•  It is a never ending job
Mario Faria
27
A Few Quality Programs
TDQM
TIQM
Mario Faria
28
Source: Dan Myers, The Value of Using the Dimensions of Data
Quality, Information Management
Implementing
Lean Best Practices
that came from the
Toyota Manufacturing
Process
Mario Faria
30
Toyota Production System
Mario Faria
31
Lean Goals
•  Improve quality
•  Eliminate waste
•  Reduce lead time
•  Reduce total costs
It is about how behaviors, processes and
actions can be changed for improving the
overall system
Mario Faria
32
Mario Faria
33
Mario Faria
34
The 8-Basics of Kaizen
Based Lean Manufacturing,
by Bill Gaw
http://bbasicsllc.com/
Mario Faria
35
•  Specify the value desired by the customer
•  Map the data value stream
•  Reengineer your data processes to eliminate waste
•  Introduce “pull”
•  Strive for continuous improvement
Source : Meghann Wooster, Beyond Fire Drills: Applying Lean Principles to Information
Governance, http://www.cmswire.com/cms/information-management/beyond-fire-drills-applying-
lean-principles-to-information-governance-023705.php
Applying Lean Principles to Information
Governance
Mario Faria
36
•  Data & Analysis are becoming products
•  Quality is key to success
•  Data explosion in volume, variety and
velocity
•  The number and value of external data
sets are rising fast
•  Focus your team efforts is crucial
•  Leverage technology to implement a
distributed data value chain initiative
Why Building a Distributed Data Value
Chain is Critical
Mario Faria
37
Mario Faria
38
The Predictive Analytics
Factory Concept
Mario Faria
39
Data Value Chain Monitoring
Centers
Right	
  People	
  
Right	
  Data	
  
Right	
  Technology	
  
	
  
	
  
Without	
  proper	
  Data	
  Quality	
  
principles,	
  it	
  is	
  impossible	
  to	
  
achieve	
  the	
  goals	
  of	
  increasing	
  
revenue,	
  reducing	
  costs	
  or	
  gaining	
  
operaGonal	
  efficiency	
  in	
  the	
  
business	
  areas	
  
Mario Faria
42
Problems with Data Quality
•  Business people don’t understand it and don’t have time
or patience
•  IT people still have a technology mindset
•  Data & Analytics people make it more complex than it is
Mario Faria
43
Quality is about customer
perception
Mario Faria
44
What you can do : Establish a
customer oriented mentality within
your team
How	
  did	
  
some	
  	
  
organizaGons	
  
change	
  to	
  a	
  
data	
  driven	
  
culture	
  ?	
  
Make Everyone in
the organization
feel responsible for
Data Quality
How prepared is your
business to have
a lean data quality
program in place ?
Time
People
Technology
Some bonus tips
and
recommendations
Mario Faria
50
Start where it hurts the
most
Mario Faria
51
Learn from mistakes
Mario Faria
52
Be flexible and adapt to
changes fast
Mario Faria
53
Source : Leading Strategic Initiatives (www.leadingstrategicinitiatives.com)
Conclusions	
  
Mario Faria
55
Data, Information, Analytics, Business
Intelligence and Performance Management
“The Data Asset: How Smart Companies
Govern Their Data For Business Success” - by
Tony Fisher
Mario Faria
57
•  A good CDO can implement a data organization
with success
•  A great CDO has the ability to turn raw data into
new revenue streams for the business
•  Components such as technology and
methodologies are important, but they are just
enablers
•  The CDO focus is delivering enterprise value to the
business (not writing code or SQL scripts)
From good to great CDO
Mario Faria
58
How leaders can benefit from using Lean for
Data Quality programs
•  Increase of productivity
•  Increase throughput
•  Improve of quality
•  Reduce of cycle times
•  Less fire-fighting
•  Smooth operation
•  Reduce costs
Mario Faria
59
Golden Rules to Success in Data Quality
•  Find out the Why
•  Strategic vision and a plan in place
•  Strong Data Quality leader
•  Secure investments and budget
•  Always deliver results
Mario Faria
60
Future of Data Quality
Mario Faria
61
When was the last time ?
Mario Faria
62
“Continuous improvement is not about the things you
do well — that’s work. Continuous improvement is
about removing the things that get in the way of your
work. The headaches, the things that slow you down,
that’s what continuous improvement is all about.”
Bruce Hamilton , lean thought leader
Mario Faria
http://www.cdo-inc.com
www.slideshare.com/fariamario
Twitter : @mariofaria
mario.faria@cdo-inc.com
+1 (425) 628-3517
Using Lean Principles to Manage the Data Value Chain

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Using Lean Principles to Manage the Data Value Chain

  • 1. Using Lean Principles to Manage the Data Value Chain Mario Faria Twitter: @mariofaria Head and Chief Data Officer CDO, Inc. http://www.cdo-inc.com/ Track: Data Quality, Data Governance Industry:
  • 2. Mario Faria 2 About Mario Faria •  Mario was one of the first Chief Data Officers in the world •  Acting as a CDO for the last 5 years in North America, South America, Europe and Asia •  Passion : Bring order to the chaos •  Leader of teams working in Analytics, Data Monetization, Data Quality, Data Governance, Operations and Business Architecture •  Motto: “If you do not treat people, technology and data as economic assets, they will become liabilities” Mario Faria Twitter: @mariofaria Head and Chief Data Officer CDO, Inc. http://www.cdo-inc.com/
  • 3. Managing your most important asset to drive business performance
  • 4. In  May  1915,  The  Boston  Red  Sox  Babe  Ruth   pitching  debut  and  his  first  home  run,  but  …  
  • 5. The  Rex  Sox  lost  to  the  NY  Yanks    
  • 6. Your  data  strategy  is  a  journey  
  • 7.
  • 8.
  • 9. Mario Faria 9 The 3 Architectures a Company needs to succeed Business Architecture Technology Architecture Data Architecture
  • 10. Mario Faria 10 Data & Analytics Responsibilities •  Data Strategy •  Data Governance •  Data Quality •  Data Analytics •  Data Insights •  Data Architecture •  Data Acquisitions •  Data Operations •  Data Policies •  Data Security •  Data Protection
  • 11. A  data  &  analyGcs  team  is   responsible  for  transforming   data  assets  into  compeGGve   insights,  that  will  drive   business  decisions  and  acGons,   using  people,  processes  and   technologies  
  • 12. Data  teams  build  the   bridge  between  business   and  IT  
  • 15. Mario Faria 15 A data product allows an objective to be achieved using data & analytics
  • 16. Mario Faria 16 More and more, leaders are being hired to think strategically about all the steps, from getting raw data and making it useful to the business users
  • 17. Mario Faria 17 Chief  Data  Officer   (focused  on  data   management)   Chief  Digital  Officer   (focused  on  digital   transforma8on)   Chief  Analy8cs  Officer   (focused  on  decision   management  ini8a8ves)   The  ul8mate  leader  who   creates  and  executes  digital,   data  and  analy8cs  strategies   to  drive  business  value     Copyright:  Mario  Faria  2014   The  Chief  Data  /  AnalyGcs  /  Digital  Officer  roles  
  • 18. Mario Faria 18 A few lessons I have learned to become a data and analytics expert •  Many problems with streamlining a data strategy •  Major concerns with data management •  How you can overcome the issues •  What I have learned from several data journeys
  • 20. Mario Faria 20 The Data Value Chain
  • 21. Mario Faria 21 A few problems in most organizations •  Data is fragmented and scattered •  Silos of information hanging around •  Like the truth, data has many versions •  The Data Lifecycle is a complex process •  Data projects being managed by IT •  A formal process to data management is a requirement in order to do Analytics
  • 22. Mario Faria 22 Data is an abstract concept
  • 23. Using Supply Chain Concepts and Techniques to manage your data assets
  • 24. Mario Faria 24 Data & Analytics as a Production System
  • 25. Mario Faria 25 The Deming Model : Production Viewed as a System
  • 26. Mario Faria 26 What is Data Quality ? •  Quality is a customer perception •  A few dimensions: freshness, coverage, completeness, accuracy •  It is a never ending job
  • 27. Mario Faria 27 A Few Quality Programs TDQM TIQM
  • 28. Mario Faria 28 Source: Dan Myers, The Value of Using the Dimensions of Data Quality, Information Management
  • 29. Implementing Lean Best Practices that came from the Toyota Manufacturing Process
  • 31. Mario Faria 31 Lean Goals •  Improve quality •  Eliminate waste •  Reduce lead time •  Reduce total costs It is about how behaviors, processes and actions can be changed for improving the overall system
  • 34. Mario Faria 34 The 8-Basics of Kaizen Based Lean Manufacturing, by Bill Gaw http://bbasicsllc.com/
  • 35. Mario Faria 35 •  Specify the value desired by the customer •  Map the data value stream •  Reengineer your data processes to eliminate waste •  Introduce “pull” •  Strive for continuous improvement Source : Meghann Wooster, Beyond Fire Drills: Applying Lean Principles to Information Governance, http://www.cmswire.com/cms/information-management/beyond-fire-drills-applying- lean-principles-to-information-governance-023705.php Applying Lean Principles to Information Governance
  • 36. Mario Faria 36 •  Data & Analysis are becoming products •  Quality is key to success •  Data explosion in volume, variety and velocity •  The number and value of external data sets are rising fast •  Focus your team efforts is crucial •  Leverage technology to implement a distributed data value chain initiative Why Building a Distributed Data Value Chain is Critical
  • 38. Mario Faria 38 The Predictive Analytics Factory Concept
  • 39. Mario Faria 39 Data Value Chain Monitoring Centers
  • 40. Right  People   Right  Data   Right  Technology      
  • 41. Without  proper  Data  Quality   principles,  it  is  impossible  to   achieve  the  goals  of  increasing   revenue,  reducing  costs  or  gaining   operaGonal  efficiency  in  the   business  areas  
  • 42. Mario Faria 42 Problems with Data Quality •  Business people don’t understand it and don’t have time or patience •  IT people still have a technology mindset •  Data & Analytics people make it more complex than it is
  • 43. Mario Faria 43 Quality is about customer perception
  • 44. Mario Faria 44 What you can do : Establish a customer oriented mentality within your team
  • 45. How  did   some     organizaGons   change  to  a   data  driven   culture  ?  
  • 46. Make Everyone in the organization feel responsible for Data Quality
  • 47. How prepared is your business to have a lean data quality program in place ?
  • 50. Mario Faria 50 Start where it hurts the most
  • 52. Mario Faria 52 Be flexible and adapt to changes fast
  • 53. Mario Faria 53 Source : Leading Strategic Initiatives (www.leadingstrategicinitiatives.com)
  • 55. Mario Faria 55 Data, Information, Analytics, Business Intelligence and Performance Management
  • 56. “The Data Asset: How Smart Companies Govern Their Data For Business Success” - by Tony Fisher
  • 57. Mario Faria 57 •  A good CDO can implement a data organization with success •  A great CDO has the ability to turn raw data into new revenue streams for the business •  Components such as technology and methodologies are important, but they are just enablers •  The CDO focus is delivering enterprise value to the business (not writing code or SQL scripts) From good to great CDO
  • 58. Mario Faria 58 How leaders can benefit from using Lean for Data Quality programs •  Increase of productivity •  Increase throughput •  Improve of quality •  Reduce of cycle times •  Less fire-fighting •  Smooth operation •  Reduce costs
  • 59. Mario Faria 59 Golden Rules to Success in Data Quality •  Find out the Why •  Strategic vision and a plan in place •  Strong Data Quality leader •  Secure investments and budget •  Always deliver results
  • 60. Mario Faria 60 Future of Data Quality
  • 61. Mario Faria 61 When was the last time ?
  • 62. Mario Faria 62 “Continuous improvement is not about the things you do well — that’s work. Continuous improvement is about removing the things that get in the way of your work. The headaches, the things that slow you down, that’s what continuous improvement is all about.” Bruce Hamilton , lean thought leader
  • 63. Mario Faria http://www.cdo-inc.com www.slideshare.com/fariamario Twitter : @mariofaria mario.faria@cdo-inc.com +1 (425) 628-3517