Don't Establish Data Management Standards

A recent survey of Enterprise Architects showed a lack of standards for data management.* Best practices has always been about the creation of standards for IT, which would lead us to think that lack of standards for data management is a gap.

Not so fast.

Standards can help control cost. Standards can help reduce complexity. But, in an age when a data management architecture needs to flex and meet the business need for agility, standards are a barrier. The emphasis on standards is what keeps IT in a mode of constant foundation building, playing the role of deli counter, and focused on cost management.

In contrast, when companies throw off the straight jacket of data management standards the are no longer challenged by the foundation. These organizations are challenged by ceilings. Top performing organizations, those that have had annual growth above 15%, are working to keep the dam open and letting more data in and managing more variety. They are pushing the envelope on the technology that is available.

Think about this. Overall, organizations have made similar data management technology purchases. What has separated top performers from the rest of organizations is by not being constrained. Top performers maximize and master the technology they invest in. They are now better positioned to do more, expand their architecture, and ultimately grow data value. For big data, they have or are getting ready to step out of the sandbox. Other organizations have not seen enough value to invest more. They are in the sand trap.

Standards can help structure decisions and strategy, but they should never be barriers to innovation.

 

*203 Enterprise Architecture Professionals, State of Enterprise Architecture Global Survey Month,2012

**Top performer organization analysis based on data from Forrsights Strategy Spotlight BI And Big Data, Q4 2012

Don't Establish Data Management Standards

A recent survey of Enterprise Architects showed a lack of standards for data management.* Best practices has always been about the creation of standards for IT, which would lead us to think that lack of standards for data management is a gap.

Not so fast.

Standards can help control cost. Standards can help reduce complexity. But, in an age when a data management architecture needs to flex and meet the business need for agility, standards are a barrier. The emphasis on standards is what keeps IT in a mode of constant foundation building, playing the role of deli counter, and focused on cost management.

In contrast, when companies throw off the straight jacket of data management standards the are no longer challenged by the foundation. These organizations are challenged by ceilings. Top performing organizations, those that have had annual growth above 15%, are working to keep the dam open and letting more data in and managing more variety. They are pushing the envelope on the technology that is available.

Think about this. Overall, organizations have made similar data management technology purchases. What has separated top performers from the rest of organizations is by not being constrained. Top performers maximize and master the technology they invest in. They are now better positioned to do more, expand their architecture, and ultimately grow data value. For big data, they have or are getting ready to step out of the sandbox. Other organizations have not seen enough value to invest more. They are in the sand trap.

Standards can help structure decisions and strategy, but they should never be barriers to innovation.

 

*203 Enterprise Architecture Professionals, State of Enterprise Architecture Global Survey Month,2012

**Top performer organization analysis based on data from Forrsights Strategy Spotlight BI And Big Data, Q4 2012

What Master Data Management Metrics Matter?

I recently had a client ask about MDM measurement for their customer master.  In many cases, the discussions I have about measurement is how to show that MDM has "solved world hunger" for the organization.  In fact, a lot of the research and content out there focused on just that.  Great to create a business case for investment.  Not so good in helping with the daily management of master data and data governance.  This client question is more practical, touching upon:

  • what about the data do you measure?
  • how do you calculate?
  • how frequently do you report and show trends?
  • how do you link the calculation to something the business understands?
Read more

The Great Divide: MDM and Data Quality Solution Selection

I just came back from a Product Information Management (PIM) event this week had had a lot of discussions about how to evaluate vendors and their solutions.  I also get a lot of inquiries on vendor selection and while a lot of the questions center around the functionality itself, how to evaluate is also a key point of discussion.  What peaked my interest on this subject is that IT and the Business have very different objectives in selecting a solution for MDM, PIM, and data quality.  In fact, it can often get contentious when IT and the Business don't agree on the best solution. 

General steps to purchase a solution seem pretty consistent: create a short list based on the Forrester Wave and research, conduct an RFI, narrow down to 2-3 vendors for an RFP, make a decision.  But, the devil seems to be in the details.  

  • Is a proof of concept required?
  • How do you make a decision when vendors solutions appear the same? Are they really the same?
  • How do you put pricing into context? Is lowest really better?
  • What is required to know before engaging with vendors to identify fit and differentiation? 
  • When does meeting business objectives win out over fit in IT skills and platform consistency?
Read more

Judgement Day for Data Quality

Joining in on the spirit of all the 2013 predictions, it seems that we shouldn't leave data quality out of the mix.  Data quality may not be as sexy as big data has been this past year.  The technology is mature and reliable.  The concept easy to understand.  It is also one of the few areas in data management that has a recognized and adopted framework to measure success.  (Read Malcolm Chisholm's blog on data quality dimensions) However, maturity shouldn't create complancency. Data quality still matters, a lot.

Yet, judgement day is here and data quality is at a cross roads.  It's maturity in both technology and practice is steeped in an old way of thinking about and managing data.  Data quality technology is firmly seated in the world of data warehousing and ETL.  While still a significant portion of an enterprise data managment landscape, the adoption and use in business critical applications and processes of in-memory, Hadoop, data virtualization, streams, etc means that more and more data is bypassing the traditional platform.

The options to manage data quality are expanding, but not necessarily in a way that ensures that data can be trusted or complies with data policies.  Where data quality tools have provided value is in the ability to have a workbench to centrally monitor, create and manage data quality processes and rules.  They created sanity where ETL spaghetti created chaos and uncertainty.  Today, this value proposition has diminished as data virtualization, Hadoop processes, and data appliances create and persist new data quality silos.  To this, these data quality silos often do not have the monitoring and measurement to govern data.  In the end, do we have data quality?  Or, are we back where we started from?

Read more

Ethical Use: Do You Have A Data Policy for That?

Security and privacy have always been at the core of data governance.  Typically, company policies, processes, and procedures have been designed to comply with these regulations to avoid fines and in some cases jail time.  Very internally focused.  However, companies now operate in a more external and connected fashion then ever before.

Let's consider this.  Two stories in the news have recently exposed an aspect of data governance that muddies the water on our definition of data ownership and responsibility.  After the tragedy at Sandy Hook Elementary School, the Journal News combined gun owner data with a map and released it to the public causing speculation and outcry that it provided criminals information to get the guns and put owners at risk.  A more recent posting of a similar nature, an MIT graduate student creates an interactive map that lets you find individuals across the US and Canada to help people feel a part of something bigger.  My first reaction was to think this was a better stalker tool than social media.

Why is this game changing for data governance and why should you care?  It begs us to ask, even if a regulation is not hanging over our head, what is the ethical use of data and what is the responsibility of businesses to use this data?

Technology is moving faster than policy and laws can be created to keep up with this change.  The owners of data more often than not will sit outside your corporate walls.  Data governance has to take into account not only the interests of the company, but also the interests of the data owners.  Data stewards have to be the trusted custodians of the data.  Companies have to consider policies that not only benefit the corporate welfare but also the interests of customer and partners or face reputational risk and potential loss of business.

Read more

Categories:

The Kiss of Death for Data Strategy

The number one question I get from clients regarding their data strategy and data governance is, “How do I create a business case?” 

This question is the kiss of death and here is why.

You created an IT strategy that has placed emphasis on helping to optimize IT data management efforts, lower total cost of ownership and reduce cost, and focused on technical requirements to develop the platform.  There may be a nod toward helping the business by highlighting the improvement in data quality, consistency, and management of access and security in broad vague terms.  The data strategy ended up looking more like an IT plan to execute data management. 

This leaves the business asking, “So what? What is in it for me?”

Rethink your approach and think like the business:

·      Change your data strategy to a business strategy.  Recognize the strategy, objectives, and capabilities the business is looking for related to key initiatives.  Your strategy should create a vision for how data will make these business needs a reality.

·      Stop searching for the business case.  The business case should already exist based on project requests at a line of business and executive level. Use the input to identify a strategy and solution that supports these requests.

·      Avoid “shiny object syndrome”.  As you keep up with emerging technology and trends, keep these new solutions and tools in context.  There are more data integration, database, data governance, and storage options than ever before and one size does not fit all.  Leverage your research to identify the right technology for business capabilities.

Read more

Master Data Management Does Not Equal The Single Source Of Truth

The number one reason I hear from IT organizations for why they want to embark on MDM is for consolidation or integration of systems. Then, the first question I get, how do they get buy-in from the business to pay for it?

My first reaction is to cringe because the implication is that MDM is a data integration tool and the value is the matching capabilities. While matching is a significant capability, MDM is not about creating a golden record or a single source of truth.

My next reaction is that IT missed the point that the business wants data to support a system of engagement. The value of MDM is to be able to model and render a domain to fit a system of engagement. Until you understand and align to that, your MDM effort will not support the business and you won’t get the funding. If you somehow do get the funding, you won’t be able to appropriately select the MDM tool that is right for the business need, thus wasting time, money, and resources.

Here is why I am not a fan of the “single source of truth” mantra. A person is not one-dimensional; they can be a parent, a friend, or a colleague, and each has different motivations and requirements depending on the environment. A product is as much about the physical aspect as it is about the pricing, message, and sales channel it is sold through. Or, it is also faceted by the fact that it is put together from various products and parts from partners. In no way is a master entity unique or has a consistency depending on what is important about the entity in a given situation. What MDM provides are definitions and instructions on the right data to use in the right engagement. Context is a key value of MDM.

Read more

Data Quality Reboot Series For Big Data: Part 4 Big Data Governance

There was lots of feedback on the last blog (“Risk Data, Risky Business?”) that clearly indicates the divide between definitions in trust and quality. It is a great jumping off point for the next hot topic, data governance for big data.

The comment I hear most from clients, particularly when discussing big data, is, “Data governance inhibits agility.” Why be hindered by committees and bureaucracy when you want freedom to experiment and discover?

Current thinking: Data governance is freedom from risk.The stakes are high when it comes to data-intensive projects, and having the right alignment between IT and the business is crucial. Data governance has been the gold standard to establish the right roles, responsibilities, processes, and procedures to deliver trusted secure data. Success has been achieved through legislative means by enacting policies and procedures that reduce risk to the business from bad data and bad data management project implementation. Data governance was meant to keep bad things from happening.

Today’s data governance approach is important and certainly has a place in the new world of big data. When data enters the inner sanctum of an organization, management needs to be rigorous.

Yet, the challenge is that legislative data governance by nature is focused on risk avoidance. Often this model is still IT led. This holds progress back as the business may be at the table, but it isn’t bought in. This is evidenced by committee and project management style data governance programs focused on ownership, scope, and timelines. All this management and process takes time and stifles experimentation and growth.

Read more

Data Quality Reboot Series For Big Data: Part 3 Risky Data, Risky Business?

When you last pulled up a chair to this blog we talked about data quality persistence and disposability for big data. The other side of the coin is, should you even do big data quality at all?

So, this blog is dedicated to stepping outside the comfort zone once again and into the world of chaos. Not only may you not want to persist in your data quality transformations, but you may not want to cleanse the data.

Current thinking: Purge poor data from your environment. Put the word “risk” in the same sentence as data quality and watch the hackles go up on data quality professionals. It is like using salt in your coffee instead of sugar. However, the biggest challenge I see many data quality professionals face is getting lost in all the data due to the fact that they need to remove risk to the business caused by bad data. In the world of big data, clearly you are not going to be able to cleanse all that data. A best practice is to identify critical data elements that have the most impact on the business and focus efforts there. Problem solved.

Not so fast. Even scoping the data quality effort may not be the right way to go. The time and effort it takes as well as the accessibility of the data may not meet business needs to get information quickly. The business has decided to take the risk, focusing on direction rather than precision.

Read more