edm as an innovation platform as an innovation platform mark cowan.pdfan innovation platform for new...

January 16, 2008

Building the EDM Roadmap An Innovation Platform for New Product Development & Regulatory Compliance

Mark Cowan – [email protected] 917 7531

Mark Cowan - [email protected] January 16, 2008 2

Outline

1. Mark Cowan – Quick Backgrounder2. Are new product innovation and regulatory compliance mutually

exclusive?3. The discovery process – finding and articulating needs4. Where to begin the process5. Types of discovery6. Interpreting the results7. Establishing metrics8. Enabling new business9. Framing the problem to solve10. Finding the leverage points


Outline

12. Mapping to the needs of the business13. Patterns and Anti-Patterns14. The roadmap15. Bringing in governance16. Process Definitions17. The key components of EDM18. Manual to automated EDM19. Why organizations reject and EDM fails …20. What’s next?21. What’s not covered22. Q&A


Mark Cowan – Background

• Today focused within RBC Dexia Investor Services concentrating on Enterprise Data Management and related change initiatives

• Keep in touch through LinkedIn or [email protected]

• RBC Dexia IS• Adobe• Realm• SAP • The Organicxchange• Quorum Funding Corp.• A number of third party relationships in the finance and technology arena

Revenue • $2.B+ in new and recurring product revenue

Products • 5 new products • 100+ overall product releases

M&A • 8 Acquisitions • 2 Divestitures

Projects • 3 Startups & New Businesses • 6 Project turn-around’s

• Product Development• Technology Leadership• Finance – M&A• Business Integration• Distressed Situations

OrganizationsActivitiesFocus Area


Who’s Here and what are you working on?

• Just a quick survey of who’s here today …• … a show of hands.

• Product Management• Project Management• IT• Support• Finance• Operations• Marketing• Architecture• Others … ???

• Reference data?• Master data• Reporting• BI • Enterprise wide or workgroup?


Today’s Focus

The Roadmap – Scope of Discussion

• Getting the big idea

• Developing the concept

• Making it real

• Bringing it to reality

• Mass Adoption

• Re-visit


The key components of EDM

• Organizational willingness

• Executive support – enterprise wide commitment

• Clear problem definition – categorization of pain points

• Understanding of data – how data is organized

• Process knowledge – how things work

• Organizational awareness (who is doing what – before and after)


What is Enterprise Data Management?

Enterprise Data Management (EDM) is a strategy that provides a structuredapproach and methodology to data governance at the enterprise level.

An EDM strategy should entail:

• Increasing the accessibility and usability of data

• Formalizing the global data management process

• Creating an integrated data framework to improve the effectiveness of data management processes

While the potential exists for Enterprise Data Management to include managing unstructured data such as documents and business process management the focus of this material is on structured data located within systems


Challenges

• Solving immediate challenges of business

• Supporting cost model for technology acquisition• Fixed cost over projects• One time charges

• Developing a phased implementation approach

• Matching needs of business with efficiencies of development teams• Smoothing of learning curve for business needs

• Understanding cost of current methodology


Types of Innovation

• A quick definition: The act of introducing something new

• Generally there are two types of innovation: sustaining and disruptive

• It is important to understand the difference between the two types as the path to success for each is very different –both can fail, both can succeed, both are hard

• Sustaining Innovation• For the most part innovation occurs along this vector • Keeping something going or enhancing a process, method, capability is sustain

• Well understood dimensions of the offering which inform its direction• Key attributes – new features, increased efficiencies, higher quality … etc

• Disruptive Innovation• A capability that answers a latent need which exposes a new opportunity or addresses an

underserved need• A new way of offering a product or a service that a sustaining innovation can not easily address• Key attributes – new pricing model, new delivery channel, new materials … etc


Are new product innovation and regulatory compliance mutually exclusive?

• Innovation vs. Invention – a couple of points to clarify• Innovation is typically the act of applying a method, practice or technology to an

existing process that enhances or disrupts it in some way

• Invention is something new and unique … which happens rarely – created or derived from pre-existing work but reveals itself as something original

• Regulatory compliance can be looked at as either a set of constraints – the most you’ll have to do keep the boat floating – or as a minimum set of requirements of a new framework

• Taken as a minimum anything derived from this would be considered “new” – E.g. new products that have a set of features which satisfy regulatory compliance and hence increase ease of adoption and deployment – it’s a built in safety feature like a seat belt. - enhance

• Taken as a maximum its is a set of constraints that it becomes the most that an offering will be viewed as - sustain


The Discovery Process

• What is discovery?• Essentially it is the uncovering of needs in form of universal truths• E.g. Real time access to data is required - translates into – data access is hard so I

want to do it faster with the truth being that the process of data provisioning is slower than needed

• It is possible to “program the approach” to discovery• It is multi-disciplinary in that the interpretation requires an ability to cross business,

markets, process, operations, technical, social and psychological lines

• Who does it?• The leader generally comes from the group that forward manages risk internally for

the business – architecture, product, marketing


Where to begin the process

• State the strategic objective clearly up front• E.g. Treating data as an asset

• Its’ an efficiency oriented• Risk mitigation• New product innovation• New service platform• Client enablement and adoption

• Identify all of the key players• Business, technology, products, clients

• Establish a relative view of the landscape• Know where you are

• Use it as guidepost to inform roadmap


Transition States of EDM – You Are Here

• Five macro states of EDM readiness – Asset Ignorance, Enablement, Use

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Types of discovery

• User driven• Process oriented• Business needs

• All are focused through a standardized set of interactions from which both hard and soft data emerges

• More often than not meaningful results will come from frontline users and client interactions than management

• The implication is that senior management will largely not tell you the direction – that’s not their role …

• It is the interpretation of data that enables the articulation of:• metrics (the measurements)• process (how its done)• patterns (building blocks)• segmentation (functional buckets)


Interpreting the results

• The result being sought is identification of hidden or otherwise un-recognized patterns

• These patterns exist because the processes in place permit them

• Break apart the results into meaningful sub-components – these will form the base for patterns to be codified

• Also allows for the recognition of anti-patterns in derivative work or candidate projects

• The result set will not be final – use it as a starting point for investigation and verification


Establishing metrics

• Many well known phrases around metrics and statistics• We all use them

• Metrics gathered through discovery are the only outcome that you can use to form and shape argument

• Surprisingly they do reveal interesting results

• Consider that they provide a measure ofwhat is being heard vs. what is needed in real terms.

• E.g. Real time vs. hard to access data vs. process clash

• Metrics will permit the set up for project/program measurements and inform business case 0

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Very high (on-line/realtime)

High (hourly) Medium (daily) Low


Framing the problem to solve

• Framing the problem to solve can actually be quite challenging• The rule of 8 W’s• Correct socialization

• One of the central challenges with any discovery based solution is that it will require a process change

• Overcoming process clash• The natural urge to reject (more on this later)

• Up level the problem set and the observations to a point where they logically connect

• Where: a point where it makes sense relative to the other initiatives of the organization and its experience set – the observations need to be associative

• Why? Its how people internalize information relative to their experience set• E.g. Data management is about the organization of data for better (simpler, faster,

competitive …)


Finding the leverage points

• What are leverage points?• Linked facts that can be used to articulate benefits

• Can be difficult to uncover as they are linked to inefficiencies or less optimal operating environments and are linked across multiple domains

• E.g. Project delivery times are slow because business analysts ramp up time is long due to process knowledge being embedded in applications …

• Each one of these facts has the ability to contribute to the business case definition in real terms

• Over time and with experience it becomes possible to “see” the linkages between silo organizations before they are apparent

• One of the central issues in many financial institutions is the silo view made worse by inheritance through organization succession

• The result is “lost” business knowledge resulting in institutionalized thinking – an anti-body – more on this later


Mapping to the needs of the business

• During the discovery process a number of incites will emerge: some that maybe in opposition to the current problem directive

• E.g. the directive is efficiency oriented but the discovery is new business capability• New product driven but current regulatory breaches are surfaced

• Three requirements• A clear understanding of the business you’re in• A even clearer understanding of the market that your business is in• The ability to position both long and short

• Articulate clearly how the subject (EDM) relates to the business• Express in terms of process• Express in terms of current problem set to solve for• Express in terms of enabling characteristics


EDM – Before and After

• Link it directly to the discovery results

• Can’t argue facts but can argue future• The social aspect comes to the

surface quickly – who is working for whom?

• An effective way to show the power of your EDM proposal is to draw the process flow before and after

Today Tomorrow


Patterns and Anti-Patterns

• Anti-pattern d: Some repeated pattern of action, process or structure that initially appears to be beneficial, but ultimately produces more bad consequences than beneficial results

• E.g. Stovepipe: A structure that supports mostly up-down flow of data but inhibits cross organizational communication

• Retro-Specification: To write the Technical/Functional specification after the project has already gone live

• Golden hammer: Assuming that a favorite solution is universally applicable

• A pattern d: is a recurring set of events or objects that repeat in a predictable fashion

• Understanding and being able to articulate design patterns in your work will reduce time to present clear understanding of enterprise wide issues

• Patterns that work link the enterprise architecture to the business and operational models – those are independent or unlinked are considered to be anti-patterns (relative to the current project)


The roadmap

• Everyone wants a roadmap that looks like this …

• The reality is that roadmap will probably be high order matrix … that looks like this …

• Know your audience

• Linked strategy to tactics

• The essential roadmap elements• Clear story• Compelling evidence• Prescribed direction• Comparative options• Permission to proceed

1 2 3 4

1 3 23

6 4

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11


Bringing in governance

• The function of governance is to enable the emergence of an operating model to support the organizations needs around data management

• Why governance? • Things needs to managed:

• Policies• Principles• Standards• Functions• Responsibilities

• Define group matrices that intersect the business, technology, operations and client will provide guidance to the related teams:

• Product• Technology• Project Management


Transition States of EDMFive macro states of EDM readiness – Asset Ignorance, Enablement, Use

1. Manual – General purpose, standard tools, no oversight2. Managed Elements – Reference elements, introduction of process normalization and

advanced technology3. Competency – Scalable processes, institutionalization, business enabler4. Insight – Predictable efficiencies, managed risk5. Optimization – Process automation and advanced analytics

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Why organizations reject and EDM fails …

• Misalignment of “sustaining or disruptive innovation” within organization• An organizations processes, its institutionalized behaviors, will work against or for an

innovation being introduced – the RPV works against initiative• Solution path: sustain within – disrupt without

• Contained within positioning the innovation:• Cost• Effort• Technology• Expertise

• Failure:• Scope definition• Lack of problem set understanding• Support


What’s next for EDM?

• Proliferation of branded data feeds?

• Cloud applications?• Federation

• Configuration driven product sets?

• Model driven business management?• Risk driven

• Linked problem solving?

• DRP … Data Resource Planning?


What we didn’t discuss

• Where do other strategies fit MDM, Ref Data …. Etc.

• Bridging the IT and Business groups

• The different management types and LOB owners

• Legal frameworks

• Governance mandates

• Organizational structures

• Technology

• Business cases


Q & A

Thank you

Mark Cowan416 917 7531

[email protected]

edm as an innovation platform as an innovation platform mark cowan.pdfan innovation platform for new...

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