Governance beyond Master DataGary Allemann, Master Data Management@Gary_Allemann

What is Master Data Management?

“A business capability enabling an organization to first identify trusted master

data and then leverage master data to improve business processes and

decisions.”

Forrester

What is Master Data?

• Identifying features

• Product

• Brand

• Packaging

• Reusable features

• Ingredients

• Allergens

Why is governance critical for MDM?

• Customer?

• Debtor?

• Employee?

• Supplier?

Data that will be reused for multiple purposes brings unique challenges

•Politics• Accountability

•Data Quality• Consistency• Completeness

•Technology• Data integration• Data deployment

Data governance addresses these issues

An emerging discipline surrounding the

management of data in an organisations

• People• Process• Policy• Technology

Intuitive Data Governance

I can’t work with

this rubbish

The data is great

These figures

look suspicious

…

What am I doing here?

“Some one needs to fix my perceived problem!

Metrics driven governance

• Irrelevant metrics can overwhelm

• 10 million client records

• 140 attributes

• 1% quality issue per attribute

• >> 14 million issues

A value driven approach to governance

• Limit metrics based on

• Context

• Support of business goals

• Prioritise based on impact

• Improve efficiency

• Realise additional value

• Reduce risk

However, Master Data has no value!

• How much did it cost?

• What was the depreciation?

• What is the insurance risk?

• What was the profit margin?

• How big is the target market?

• How many did we sell?

The Data Excellence Framework

A framework developed to guide the data stream of a global ERP project

• 7 year project

• 207 countries brought into 1 view

• Data Management was a key streamFor just one ingredient, vanilla, its American operation was able to reduce the number of

specifications and use fewer suppliers, saving $30m a year. Overall, such operational

improvements save more than $1 billion annually.” Nestlé’s Chris Johnson

Strive for a value driven culture meansconnect your business, data and organization

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Secure very strong

alignment between

business and data

Get deep understanding of

value and business impact

of your data

Establish very clear

accountability and

responsibility for your

data

The implementation processthree steps to maximize the value of your enterprise data

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1. Align & Link 2. Measure & Visualize

3. Organize & Execute

Define Business Excellence

Requirements

Measure Data Compliance

Publish & Evaluate

Business ImpactFix Issue

Analyze RootCause

Contextual polarization

BusinessManagement

DataManagement

StewardsIT

Operations

Step 1 : Align and Linkalign data with business objectivesthrough business excellence requirements

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The Business Excellence Requirement

(BER) is the backbone of the Data

Excellence Framework

The business excellence requirement is a

� prerequisite

� business rule

� standard

� policy

� best practice

� to achieve business goals

Step 2 : Measure and Visualizemeasure the data and visualize its value and impact for each business context

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KVI - Key ValueIndicator

� An instrument to measure the degree of

compliance between the live data

records and current Business

Excellence Requirements (BER)

� An instrument to measure the business

value and business impact of the DEI

� A context driven visualization of the DEI

and KVI resultsContextualPolarization

DEI -Data Excellence

Index

Step 3 : Organize and Executeestablish accountability and responsibility at all levels

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Accountability Responsibility

The willingness and commitment of

business executives to be accountable for

the definition and management of the

business excellence requirements of their

area and related KVI targets.

The willingness and commitment of data

managers to be responsible for individual

data records assuring the compliance with

Business Excellence Requirement

1 - Define BER

Step 3 : Organize and Executeadopt a way of working through collaborative networks

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2- Configure, Develop and Refresh the Data

3- Measure Data Compliance (DEI – KVI’s)

6- Analyze Root Cause 5- Fix Issues4- Publish the Results and Evaluate Business Impact

Intranet

Repository

Data Steward / ITData Accountable Data Steward

Data ResponsibleData Steward Data Steward

BER

Data

DEI

KVI

Intranet

Conclusion

• Focus is critical to MDM success

• Governance by value is a pragmatic approach to identify focus areas

Business Case – Global 500 Distribution

Group DEI Results44 Business Rules included• 70% Compliant• 30% non compliant

Business Impact – Value (KVI)• Total value: 84% of total turnover (8 billion)• Total Impact: 16% of total turnover (1.6

billion)

Business Case – Global 500 Distribution

Business Case – Global 500 Distribution