DAMA Feb2015 Mastering Master Data
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Mastering Master Data Presented to DAMA GA Feb 2015 The content of these slides belong to Sierra Creek Consulting. Permission is required for use.
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DAMA Feb2015 Mastering Master Data
- 1. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Presented by Bill Wise, Enterprise Data Architect NCR Mary Levins, Principal Sierra Creek Consulting February 26, 2015
- 2. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Introduction Mary Levins, PMP Principal, Sierra Creek Consulting Value through Governed DataTM • 20 years experience in Process and Data Re-engineering • Proven success in bringing Sustainable Business Value and bridging the gap between the Business and IT • BS and MS in Industrial & Management Engineering, Project Management & 6 Sigma Certified • Highly accomplished Data Management expert across multiple industries including Healthcare, Finance, Manufacturing, Electronics, Automotive, Energy, and Retail
- 3. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting • Bill Wise, Enterprise Data Architect with NCR and lead for the Customer MDM • 25+ Years in Data Management • Instructor of Data Modeling, Encyclopedia Management and Methodology for KnowledgeWare • Heavily involved with development of B2B standard messages for RosettaNet and Open Applications Group • Implemented the Information Framework (IFW) at IBM for internal use - based on extension of Zachman Model called Evernden Model • Developed method for deployment of the canonical object for ‘Invoice’ at IBM – owner of US patent for method of deployment Introduction – Bill Wise, Enterprise Architect at NCR
- 4. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting ‘Everyday made easier.’
- 5. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Master Data Management Overview Value and Benefits of Master Data Best Practice Approach for Mastering Master Data Summary and Questions Mastering Master Data Agenda
- 6. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting MASTER DATA MANAGEMENT OVERVIEW
- 7. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Master Data is data that is a critical company asset used by multiple businesses, functions, and users across one or many systems. ‘Asset’ is an economic resource owned by an organization to produce value Master Data should be managed under the Data Governance Umbrella Mastering Master Data – What is Master Data? Master Data is an Asset and should be managed under the Data Governance Umbrella Metadata Reference Data Master Data Transaction Data PerValueData QualityImportance DataReuse VolumeofData ShorterLifespan
- 8. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Master Data Examples NCR Focused Across common subject areas Data Subject Area Core Master Data Reference Data Customer Channel Partner Customer Accounts Customer Classifications Customer Types NAICS, DUNS, Hierarchies, Status Codes Supplier Vendor Classifications, Vendor Types, DUNS, Hierarchies, Status Codes Product Product, Item, Service, SKUs, Raw Materials GS1, ISO, UOM, Taxonomies, Status Codes, Types Location Addresses Locations GEO Codes, Country Codes, URL Note: Master Data will depend on your business
- 9. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Data Governance and MDM go hand in hand Business Strategy People Process Data Strategy Data Technologies • Governance Organization • Data Stewardship • Policies and Procedures • Data Quality Assurance • Data Quality and Compliance • Change Management Capabilities • Metadata & Data Standards • Data Lifecycle Management • Compliance and Risk Management • Tools and Technologies • Data Architecture • Data Model and Architecture Mastering Master Data – Data Governance is Foundational Data Governance is the Framework to align the business vision, by supporting the Business Strategy and ensuring adaption through communication and change management.
- 10. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting • Advanced Data Management Practice • A set of processes and technologies used to federate key data assets to provide a single view across the enterprise Master Data Management (MDM) Definition
- 11. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Successful MDM initiative at NCR All 4 components Considered People Process Data Technologies 33% 34% 35% 39% 40% 55% Lack of MDM Experience or Skills Lack of Business Case Poor Data Quality Lack of Cross-Functional Cooperation Lack of Executive Sponsorship Lack of DG or Stewardship Challenges to MDM Success Source: TDWI Best Practices Report Q2 2012
- 12. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Master Data Management – High Level Processes used at NCR • All sources • All formats Acquire • Identical • Alike • Related Reconcile • Correct • Standardize Cleanse • Add external • “Golden” record Enhance • To source • Other Use Publish All MDM tools will do these activities to some degree. You need to understand what is important to your business.
- 13. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting VALUE AND BENEFITS
- 14. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Master Data Management Benefits Why Care about Data? Data Decays at a rate of 2% to 4% per month (industry estimates) which can impact mail deliverability, email campaigns, sales follow-up calls, record completeness “More than half of US companies work with unreliable contact data”, 2013 NetProspex Marketing Data Benchmark Report “The cost of bad data could be as much as 15 to 20% of corporate operating revenues”, D&B “A CRM with bad data is like a pair of glasses with an outdated prescription: they’re expensive, clunky, and keep you from seeing opportunities until it’s too late”. D&B Quality Data is critical for business success • Improves customer perception and customer experience • Decreases costs due to rework • Increases revenue by providing trustworthy data to make business decisions, complete transactions, leverage business opportunities, and drive improvements in lead generation
- 15. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Example Benefits / Business Drivers Customer Master Data Management Legal/ Compliance Regulatory Operational Sales/Marketing Financial Privacy Mandates SOX Efficiency Marketing and Sales Promotions Increased Revenue and Profitability per Customer Fraud Prevention Watch List Effectiveness Branding Audit Contracts Reporting Customer Support Customer retention Risk Management Data Breach Protection Organic Growth BIG Data Analytics Acquisitions
- 16. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Insight Knowledge Information Data • Data is the Foundation and must be managed to run, improve, and expand the business Transactional Data Why is Mastering Master Data important? Meaningful Information depends on Quality Data Discrete facts Definition Format Raw Growth Strategic Direction Business Value Community Impact Value Inference Predictive Decision-making Patterns Trends Relationships Assumptions Necessary for the Business = Key Business Asset Operational Intelligence to Run the business Analytical Intelligence to Improve the Business Strategic and Predictive Intelligence to Expand the Business Master and Reference Data Reporting Data Big Data
- 17. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Meaningful Information Depends on Quality Data • Who are our top customers by revenue? • Can we rollup accounts consistently across systems for revenue and costs? • Can we look at credit on an Enterprise Level? • Can we Understand customer satisfaction across all accounts? • Can we Easily Match Accounts from Acquisitions? NCR received many benefits from the Customer Master Data initiative …
- 18. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting BEST PRACTICE APPROACH FOR MASTERING DATA
- 19. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting To Ensure MDM Success • Use manageable steps • Show short term successes • Build towards a vision to support the Business • Ensure Business Readiness ValuetoOrganization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5 Mastering Master Data Best Practice Approach to Build toward a Vision Complexity/ Cultural Shift/ Level of Buy in Understand where you are now, Where you want to be, and the Business Readiness to get there (Cultural Shift)
- 20. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Best Practice Approach • Document current maturity to identify and prioritize all enterprise-level data needs Based on Business Benefit • Document Enterprise Stakeholder Model/Mapping • Identify Subject Area important to business • Define Types of Master data (data domains) • Use Repeatable Processes, Methodologies, Tools • Identify data sources and current System of Record • Document Data Lifecycle – Captured, Created, Maintained, Applied, Disposed • Organizational Design • Have Dedicated Data Stewards/ Team • Ongoing Improvements (Operations, Reporting, Metrics) Data Governance Organization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5
- 21. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting • Is there a glossary of terms, definitions, and rules defined and published? • Are the right tools and technologies in place to support the business and customer? • Are data processes aligned across the organization? • Are there processes to consistently manage the data across it’s lifecycle? • Is the Business and IT aligned in managing the Data? • Have Roles and Decision Rights been defined? PEOPLE PROCESS DATA TECHNO LOGY Assess Current State How well does your organization Manage Data as an Enterprise Asset? A Data Governance Maturity assessment can help to identify opportunities to drive Value! • Document current maturity to identify and prioritize all enterprise- level data needs • Document Stakeholder Model/ Mapping • Create a Roadmap based on Business Benefit
- 22. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Data Governance and MDM Maturity Aware Reactive Managed Proactive Governed Level – 1 Level – 2 Level – 3 Level – 4 Level - 5 • High level of dependency on "Tribal Knowledge" across the organization • Data is created on an as needed basis with no or few rules/standards • Multiple creators • Data quality issues are addressed after they occur (reactive) • Decision making dependent on consensus and/or multiple systems • Heroic culture (performance measured by "fixing" problems) • Leadership is aware of the importance of Data Governance and the impact on the performance of the organization • Enterprise Data Governance organizational structure defined and sponsored (including defined Data Stewards) • Data Standards and rules defined • Governance program has been implemented at an enterprise level • Meta-data management processes are in place across the enterprise • Proactive monitoring for data quality controls feeds into the governance program • Governance policies are used to set, communicate, and enforce business and IT management • Agility and responsiveness is greatly increased due to a single unified view of enterprise data • Enterprise data governance enables high- quality information sharing across the enterprise • Single unified view of the enterprise Focus on improving the maturity as your organization and amount of data grows Use the Level of Maturity across each Component and Sub-Component as an Improvement Metric
- 23. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting What are the Business Needs? • The business needs to… – Trust their data – Understand its meaning – Know where and what data is available – Know how it flows and is related across different departments – Know how it is secured – Know how well it is consolidated or integrated Business Needs drive... • The Data Governance Committee, Enterprise Data Stewards, and Business Data Stewards are advocates for business needs Information Needs, which drive... • The Data Governance Office serves as an advocate for information needs Technology and Tools • IT is responsible for implementing technology strategies to support business and information needs Business Driven, IT Enabled
- 24. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Before MDM Customer Data at NCR ... • Was not well defined • had decentralized method of data creation • had the least-defined governance and rules A - Had over 500,000 customer records, but business said there should only be 1,000 customers - 20,000 customer accounts were already marked as ‘inactive’ - 350,000 customer accounts had not been used for any transactions in the previous three years - 40,000 customer accounts had no revenue - 10,000 customer accounts could be grouped into 1,000 customers which represented 92% of our revenues A Consistent Definition of “Customer” is needed NCR Business Need: Understand Our Customer
- 25. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Parties to whom we cannot sell NCR products Parties who finance purchases of NCR products Parties who sell NCR products to others Parties who buy directly from NCR Parties who repair NCR products in the field Parties who use NCR products Parties who buy NCR products from others Parties who own non-NCR products that we service Parties who install NCR products Parties who advise others to buy NCR products Parties to whom we would like to sell NCR products Parties who customize NCR products for others NCR Business Need: Define Our Customer
- 26. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Best Practice Approach • Document current maturity to identify and prioritize all enterprise-level data needs Based on Business Benefit • Document Enterprise Stakeholder Model/Mapping • Identify Subject Area important to business • Define Types of Master data (data domains) • Use Repeatable Processes, Methodologies, Tools • Identify data sources and current System of Record • Document Data Lifecycle – Captured, Created, Maintained, Applied, Disposed • Organizational Design • Have Dedicated Data Stewards/ Team • Ongoing Improvements (Operations, Reporting, Metrics) Data Governance Organization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5
- 27. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Recognize Different Stakeholder Levels and their Concerns • Recognize Different Stakeholder Groups have different needs and expectations – Sponsors: “C” level or top sponsor who stands behind the initiative. • Benefit – Business Case • Budget – Compare to the ROI • Balance – Across other Priorities – Project Team/ Contributors: Primary implementers or contributors • Approval and Bandwidth • Support for their business/team/role – Operational Team: Users (creators or users of the solution) • Training & Support • Workload Create an Enterprise Stakeholder Model Develop an Enterprise Approach 2
- 28. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting When doing high level models, make sure the business can understand it Enterprise Entity Customer Entity Customer Account Customer Site Customer Location Customer Grouping Customer Relationship This is much easier to explain than this Data Models should be Simple for the Business
- 29. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Best Practice Approach • Document current maturity to identify and prioritize all enterprise-level data needs Based on Business Benefit • Document Enterprise Stakeholder Model/Mapping • Identify Subject Area important to business • Define Types of Master data (data domains) • Use Repeatable Processes, Methodologies, Tools • Identify data sources and current System of Record • Document Data Lifecycle – Captured, Created, Maintained, Applied, Disposed • Organizational Design • Have Dedicated Data Stewards/ Team • Ongoing Improvements (Operations, Reporting, Metrics) Data Governance Organization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5
- 30. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting A detailed dataflow of Master Data usage can be quite complex Data Flow Diagrams Help to see how data is created and used Execute on Tangible Projects 3
- 31. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting MDM Tools can provide value – if they meet your needs. • Understand Requirements and Use Cases • Consider Long Term needs (Multi vs Single or Silo Domains) • Complete a Relative Positioning Map (Vendor Solutions against Requirements) 400 420 440 460 480 500 520 540 560 580 600 2012 2013 MDM Software Revenue Market Growth in $M Customer MDM Product MDM Source: Gartner Magic Quadrant November 2014 12.2% 8.7%
- 32. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Technologies considered at NCR • Existing systems that create or update customer data. • New tools for the MDM needs – Data Acquisition – ETL tools like Informatica – Data Reconciliation, Cleansing – tools like Trillium or Oracle DQ – Enhancement – tools like D&B – Publishing – Web Services or ETL tools • A dedicated MDM Tool to orchestrate the other tools, house the data and provide a user interface to query and change the data.
- 33. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Best Practice Approach • Document current maturity to identify and prioritize all enterprise-level data needs Based on Business Benefit • Document Enterprise Stakeholder Model/Mapping • Identify Subject Area important to business • Define Types of Master data (data domains) • Use Repeatable Processes, Methodologies, Tools • Identify data sources and current System of Record • Document Data Lifecycle – Captured, Created, Maintained, Applied, Disposed • Organizational Design • Have Dedicated Data Stewards/ Team • Ongoing Improvements (Operations, Reporting, Metrics) Data Governance Organization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5
- 34. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Organizational Design Example Customer Data Stewardship Council (PT) • Takes strategies from Exec Committee • Communicates to Data Stewards • Data Stewardship is the execution of decision-making processes Customer Data Stewards (FT) • Central point of contact for in SOR • Aligned to support each Operational Data Steward Enterprise Level Subject Area Data Steward Operational/LOB Level Data Steward Executive Data Governance Committee (PT) • Sets strategic priorities and direction (Company wide) • Provides executive level support • Resolves escalated issues Data Governance Manager (FT): Aligns program with Executive Committee direction, communicates program components and value LOB Level Data Steward (PT) • Subject matter experts in LOB • Works with Customer Data Steward on business definitions, quality requirements, business rules for their area Develop as a Core Company Competency 4
- 35. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Mastering Master Data Best Practice Approach • Document current maturity to identify and prioritize all enterprise-level data needs Based on Business Benefit • Document Enterprise Stakeholder Model/Mapping • Identify Subject Area important to business • Define Types of Master data (data domains) • Use Repeatable Processes, Methodologies, Tools • Identify data sources and current System of Record • Document Data Lifecycle – Captured, Created, Maintained, Applied, Disposed • Organizational Design • Have Dedicated Data Stewards/ Team • Ongoing Improvements (Operations, Reporting, Metrics) Data Governance Organization Assess Needs & Current State Develop an Enterprise Approach Execute on Tangible Projects Develop as a Core Company Competency Enable Business 1 2 3 4 5
- 36. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Enable the Business through On-going Improvements Develop and track a set of Enterprise Metrics for Master Data Select What to Measure Plan the Metrics Develop the Metrics Test the Metrics Implement and Publish • Based on business goals related to Master Data • Determined key consistent metrics important across all LOBs • Use a formal Metrics planning process • Determine the data, process, people and technology for collecting, reporting, and acting on the metrics • Determine dimensions of quality to be tested • Test to ensure the metric can be collected and reported accurately • Set the baseline • Set goals and targets • Automate • Publish and communicate the metrics • Define RACI for clear responsibilities related to the metrics process “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” ― H. James Harrington
- 37. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting 0.0 1.0 2.0 3.0 4.0 5.0 1.1 Data Governance Organization 1.2 Stewardship 2.1 Policies and Procedures 2.2 Data Quality and Conformance 2.3 Data Quality Assurance (profiling, cleansing) 2.4 Information Lifecycle Management 2.5 Data Risk Management 2.6 Change Management 3.1 Technologies 3.2 Infrastructure/ Data Architecture 4.1 Data Classification 4.2 Metadata Management Current State Future State Scale: 0 - Unaware 1- Aware 2- Reactive 3- Proactive 4- Managed 5- Best in Class 1. Organization 2. Process and Procedures 4. Data 3. Technologies LEVEL 2.0: Reactive • Data quality issues are addressed after they occur (reactive) • Multiple versions of the truth • Multiple users have access to make changes without clear policies or standards • System Centric vs Data Centric Master Data Maturity (Example) Use as an Improvement Metric for Roadmap *Detailed Governance Maturity Model created and owned by Mary Levins
- 38. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting Summary • Master Data is an Asset and should be managed under the Data Governance Umbrella • Develop a Stakeholder Model and Ensure there is Business Sponsorship and Engagement • Understand where you are now, where you want to be, and the business readiness to get there (Cultural Shift) • Understand existing systems and sources when defining the future architecture • Successful MDM initiatives must consider all Data Governance components across People, Processes, Technologies, and Data • Use the Level of Maturity across each Component and Sub-Component as an Improvement Metric for your roadmap • Measure your master data across the enterprise so you can manage it. Manage it so you can continually improve it. People Process Data Technologies
- 39. SIERRA CREEK CONSULTINGValue Through Governed DataTM Copyright 2014 by Sierra Creek Consulting QUESTIONS? COMMENTS? • Mary Levins – [email protected] • Bill Wise – [email protected]