Water Presentation ICT

The Role of High Quality Data in Performance ManagementData driven decision making

FS 614929

1.IntroductionGood morning everybody. Im delighted to be talking to you about data quality and its role in the management of performance.We are going to see what things are needed, what new things you can do and what you IT can do to enable data quality in your organisation and why it can be a great opportunity for IT.

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Data is the oil of our generation20/11/2015ICT Water Conference2

The Challenge is not tapping it but refining it!?

2.Oil is the data of our generation. The challenge is not tapping it. It is refining it!How does that resonate with you? This is the challenge I will be addressing.We are going to look at this part with the question mark what is needed to get refined data and what actually is refined data?We are going to talk about data quality in terms of the 3 Rs: relevant, revealing and re-usable and that lead to better understanding and insight of business performance?This refining of data is very much a current day challenge that you cant ignoreThis is not just a business issue its very much an opportunity.Data gets into our organisation through.Data that is input into our source systems of record (Historical)Data from our environmental and operational systems including systems such as SCADAData for the future (budgets and forecasts and targets)

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Elements of Performance

InnovationCustomersWater managementSewerage managementPeopleSustainability20/11/2015ICT Water Conference3

3.Q. Is this the sort of landscape that you operate in?So much of what you do is about how you leverage data to create performance outcomes.This is from your annual reports.It shows how many, how much, how long. We see what we want to do in the future. We see how we are going to measure it.

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The business landscape20/11/2015ICT Water Conference4

4.Lets acknowledge some of the trends happening in your industryThere is going to be pressure on you, ITC, for solutions from your businessQ. How will you meet these pressures?Q. What pieces of the Jigsaw will you need to fit together to make it happen?How will you meet the pressures brought about by regulation, by open data policies, reports coming at you from the essential services commission, by the need for transparency especially of costs and data coming from a variety of oftentimes disparate systems?You may be thinking that this is a finance or business issue but for those of you who want to play in this space there is opportunity in creating platforms that lets business users across the organisation access and adapt the data reliably.

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20/11/2015ICT Water Conference5Report writingAd hoc query

Ad hoc queryAd hoc queryAd hoc queryAd hoc queryExcel DownloadExcel DownloadExcel DownloadExcel DownloadQuarterly reportingAccess DatabaseAccess DatabaseManual InputManual InputManual InputExcel Download

Billing SystemsCustomerCRMPlant OpsWaste OpsAssetSCADAFinanceProcureHRSelf Serve

5.Q. How many of you are familiar with the type of confusion seen in this white space?(Linger on this question)Im sure none of this is new to youWe see excel being used as independent sources of analytic structures by that I mean information is downloaded from the systems and structured to the individual needs of the userQ. This is not a great place to be?We see # Inaccurate picture of costs whose report is right?# mistaken belief that the report is accurate leading to potentially serious consequences# External regulatory reports being inaccurate.and differences to internal management reports (# Misalignment of internal mgt vs external regulatory reports often reporting the same data but disclosed in different ways.)

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Focus Areas

20/11/2015ICT Water Conference6to have high quality data and systems that give us an integrated view of customers and our environment performanceHow do we get there?

6.(This is the sedgeway slide)Q. If data isnt backed up or if a security breach occurs, who do people come to? Right you.Q. What about the management of data? Who is responsible for that?Some might see that as a business or finance issue.But with data now the oil our generation, data becomes a more and more valuable resource. The need for competitive advantage and to extract the maximum value from our data will only increase (or refine the oil).(Sedgeway) To get there, we need to focus on the right things. What are those things?

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7. The Three RsWhat are the three Rs of data Quality?It is data that is Relevant, Re-usable and Revealing. But our raw data needs to go through the Refinery to get this.We wil be looking at what is it that makes something relevant, how is something revealing and once we have discovered we need to incorporate and re-use these revealing structures.

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Decision Effectiveness

THE TURNING POINT

Decision MakingSystemsOfRecord Support Systems

Leveraging our core systems20/11/2015ICT Water Conference8

8.We really are at a turning point. In fact weve gone way past in most cases. There are many still labouring on managing the transaction and a transaction intensive environment when we should be up hereThis is the area of increasing insights through data management and putting in processes to improves the quality of our data; data which is the 3 Rs Relevant, Revealing and Re-usable.Im not suggesting you should all become data scientists or BI experts but understand the data yes. Provide platforms for the business to manage the data yes. Certainly.Having a lot of data is one thing and that continues to grow leveraging it is the challenge.

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BI Vendor Marketing.Business Discovery platform delivers true self-service BI that empowers business users by driving innovative decision-making..Exploring the associations in your data.Accessing, analyzing and capturing dataUncover hidden trends and make discoveries that drive innovative decisions...search box for instant, associative results that let you see new connections and relationships across your data20/11/2015ICT Water Conference9

9. Vendor marketingYoud think from the BI marketing speak that data refinement is covered. .uncover hidden trendsinnovative decisions.its like the Bondi beach version of BIgo on a data discovery missionBut the uptake of BI tools is notoriously low because discovering data is a niche areamost people want to be served up already well-structured data.or enable it themselves

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20/11/2015ICT Water Conference10CPMMDMBI/AnalyticsData Quality

10.Q. What are the jigsaw pieces that assist us in thisThe fundamental dimension is data quality.But what is good quality data?Data Quality: Q. Is it just about the accuracy and precision of the data?Q. Is it just about having it correct?These are important but do they give us the three Rs relevant, revealing and re-usable?Accountants have been known to forecast a result 12 months in advance as $125,327 and 37 cents. Relevant? No.And I could print out the balances on your COAs but would this be revealing? Its too granular and not matched to making a decision. It needs structuring and enriching.BI/AnalyticsThe first piece is BI/AnalyticsBI is more traditionally seen as the realm of IT.Weve already seen the marketing materialThere are two important things to recognise;Recognise that BI does not in itself give high quality data the three RsThe danger here is in not building the foundation layers necessary. It is frequently seen and treated as a technology and a silver bullet These next two pieces coming up are for those of you that want to accept the challenge to be an enabler to the business in this spaceCPMCPM is often seen as budgeting and forecasting and therefore finance. But this is a massive mistake and has a big role to play in the equation.Several things to note.CPM is far more supportive than just BI analytics of the data structures that are relevant to measuring performance.Its relevant because It links to business strategy - are we doing the right things not just measuring for the sake of itIts revealing because It enables business users to work with business drivers that can be tested outEven if we have a technology, are you running contemporary BPF processes that work because this is a major area of broken PM processes that is occurring in many organisations.MDMLets go up to the final step.It is a more complete approach to data qualityMaster data describes fundamental dimensions of the businessMDM takes the responsibility of managing master data away from the source ERPs and analytic systems. This does many things.Its relevant because it brings structure to raw dataIt is human-centric by allowing every day business users to create their own structures that work for them - RelevantIt allows data evolution data evolution allows structures to emerge as business users grapple with understanding their environment this points so much to relevance Many times, structures are built in from day 1 and cannot be easily changed. You can enable that evolution.

It gives the opportunity to test alternate views and reporting scenarios discard/keep/grow - RevealingSo heres a challenge for you in IT. Im not expecting you to be an expert in data science but if you want to accept the challenge, you can be an enabler in this space and create the platform for the business to securely access and adapt data structures to their own needs.

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20/11/2015ICT Water Conference11Is MDM a problem?

11.Is MDM a problem?Q. How many of you have three or four of the following?# 7 15 separate transactional and analytical systems# BUs with own report structures# COAs in play# Large scale dimensions in place with large number of attributes of the recordIf you do, maybe this could be an area of focus for you.Lets look at an Account structureEach BU is another copy of the data that needs to be managed.Each one has deep structures that exist in the chart of accounts. Structures which are difficult to maintain and very hard to hold alternate or parallel hierarchies in the ERP or your analytical solution, oftentimes they dont change in the systems from the day they were first implemented.Lets add the complex legal and business structures maybe amalgamations and mergers, maybe subsidiaries and Joint Ventures. All adding complexity to the structures and rules.These are issues that the business would love you to fix for them.If we did have an MDM policy, how might it look?

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SubscribeConsumeMDM Hub

12.Lets start with the data sourcesOLAP/CPM able to hold structures enriched but fairly staticERP generally poor at MDM so inflexibleCloud/SCADA you have this data raw data - little structure, might need to be enriched. Can you gain more insights from it?Excel independent analytical structures little governance can be inaccuracies Lets separate the management of MDM from the source systems.Benefits1. People based MDM Hub non-destructive of transactions alternate views versions test out2. Data evolution allows structures to emerge captures reporting structures from human intelligence3. Enriched master data which enables the 3 Rs and leads to decision focused reportsIf we look for instance at the impact on Consolidation.Consolidation is holding the structures that make up your reporting structuresConsolidation is a revealing process. The structures give meaning and definition from a business perspective from the top to the bottom of the organisation. It allows different and alternate perspectives to be seen. This needs to be part of your structures.

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Performance Management20/11/2015ICT Water Conference13

13.Let me ask a question here.Q. Who believes current budget processes are valuable and engaging process?Most surveys reveal great issues with budget process heavily politicised and negotiated it should be high value activity.You might again be thinking this is not an IT issue but is it something you could do with understanding? Yes in my opinion.The traditional annual budget process is highly flawed.It is extremely slow and labour intensiveIt goes out of date almost before its finishedIts way too detailed and preciseNot based on the drivers of value in the businessAnd the most important oneThe variances in management reports are meaningless. If the variances are meaningless and not acted upon, in my opinion we may as well not do it allClickThese are the sort of contemporary performance processes that are vastly improving the budgeting.They make the budget process much more relevant and revealing becauseContinuous therefore always current Look beyond the fixed annual timeframeLighter and more agileLinking to business drivers and therefore variances are meaningfulLet's look at performance management more closely.

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20/11/2015ICT Water Conference14StrategicTacticalData CollectionInsular AnalystSilo planningIvory Tower

Participation

14.Within a performance management framework, there are two dimensions strategic/tactical and participation enterprise/centralisedWe can view these as top down and bottom upBut too much top down risks no meaningful targets. Have any of you had that top down decree and been asked to just decrease costs by 5% across the board no relevance, no rationale. Is this a targeted exercise?Or too much bottom up and we risk over detailed and low insights not revealing - because we are measuring budget at the wrong level.ClickNow, performance management is IMO one of the worse performed processes in business but maybe we can talk about that later.Its good to recognise the different styles of budgeting in performance management.Financial we get low participation centralised we get poor integration to operationsSilo independent planning in spreadsheet models with financial outputs passed to finance at the endIvory Tower Top down approach on an arbitrary basis with very relevance e.g reduce by 5%Sedgeway Ive been involved in many such projects the number 1 pain is sheer time and resources taken to do budgeting.

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Used to take 2 days

Creating theNew YearNow takes 15mins

Uploading budgets in management reports3 days x 3 people

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Now takes30 mins

Preparation for budget input into Management reportsFrom 19 daysto

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15.This is a project for a logistics company that I worked with.As you can see from the existing statistics, the most surprising thing is the poor performance of the process itself let alone the effectiveness of budgeting.Linger days of time to do each major process changing to new year, updating forecast, generating the management reports typically these are all done in Excelthis shows you the depth of the problem by not providing data structures for the business.Efficiency was not the central driver for this project but it paid a huge dividend in terms of time and resource savings.

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Case Study 1Increased visibility of operations across the organisationSustainability of business long term planningFinancial oversight linking financial, capital and operational perspectivesLong term capital asset planningProject portfolio analysisTechnology which enabled the change NOT managing the change of technology.20/11/2015ICT Water Conference16

Looking for:

16.This shows the sort of business applications that can be created based on working with data that you can get. This technology and approach leverages data in the SORs but is separate and free from their constraints.Its long and short term horizons.Its delivers on issues of sustainability, cost and operational optimisation and,targeted allocation of resources

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Where are they now?Through centralised business drivers, they are able to share, update and collaborate on data across multiple divisions, nationwideLess finance focused, more business drivenAble to plan strategically over multiple year time horizonAble to pick up any anomalies, issues and respond quickly with business insightPlanning and forecasting for demand20/11/2015ICT Water Conference17

17.Where are they now?Not about finances needs. Able to make decisions more strategically.Plan for demand, plan for long term assets.Its about tying up the operational and financial outcomes which enables much better planning and understanding of decisions now.

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20/11/2015ICT Water Conference18Case Study 2 Operational MDM

18. Case study 2Lets look at MDMThis is a common scenario. A customer record is recorded in several different systems.Different components and attributes of the record are stored such as location, account details and agency specific details such as sewerage or water supply details.

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Department of Water (DoW) WA is integrating MDM with their public-facing web application..(customers) request or update water licenses and view usage. ..allows DoW to track persons, companies, and wells using addresses, land surveys, plats, and geo codes, merging all of the data into a Golden Record - Improve customer self-serviceposition for a Dynamics CRM upgradeMerge customer and well data from a variety of sources into a reliable, accurate Golden Record in spite of the poor quality and age of the source data- manage all points of water extraction from the aquifer; consolidate supporting systems onto Microsoft stack

20/11/2015ICT Water Conference19Operational MDM for DoW WA

10.This example shows how combining records across the organisation into a combined, merged single golden record has enabled digital, customer facing strategies. Some of you may for instance be looking at digital first customer engagement.By combining and merging customer data, it enabled greater customer self-service and management of disparate customer management systems it enabled customer service to be agency and system agnostic.

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Re-usable, relevant data and structures20/11/2015ICT Water Conference20

20.How do you making a start?Are you going to define a stand-alone MDM strategy?Could you make use of existing BI or CPM assets?Could you use of the Master Data Services (MDS) which comes with SQL enterprise? Or do you want to go towards an Enterprise MDM solution?This process here ensures reporting structures that emerge are closely aligned to the way you budgeting/forecasting and maintains structures which are relevant and aligned to decisions.If you improve the way you report, you improve the way you budget and forecast..because, the way you budget and measure performance is the same as the way you report.20

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21. Take away slideLets leave you with some takeaways of how you might implement high quality data practises in your organisation

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Start SmallBaseline current capability20/11/2015ICT Water Conference22

22. Start SmallBaseline your current capability decide on an area to pilotThen Prototype the approachBut Dont get too complicated too early theres too much data and too many people impactedReview if any existing technology like CPM or MDS can assist

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Observe20/11/2015ICT Water Conference23

23. ObserveSee where things are not working out maybe too much maintenance maybe too confusing and you need to change approachRefine, adapt, reiteration until you have a working model that you can replicate.

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Scale20/11/2015ICT Water Conference24

24. ScaleRoll out the model.You can be much more confident having trialled itYou will have a much clearer idea if and how technology can helpBUT still keep it current with further iterations

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Summary20/11/2015ICT Water Conference25

25. The final point I will leave you with is that information is an important enterprise asset and it needs to be managed and allowed to evolve.Well thank you for listening. I hope this has assisted you and you can go back and put some of these ideas into practice.

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