Rob Karel - Ensuring The Value Of Your Trusted Data - Data Quality Summit 2008
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- The document discusses building a business case for trusted data and master data management (MDM) initiatives through a bottom-up valuation approach. It recommends starting with an individual line-of-business process to identify and address data quality issues to quickly realize value. - Examples of target processes include reducing call center inefficiencies through better customer data, decreasing wasted marketing costs from improved targeting, and lowering supply chain breakdowns by ensuring data integrity. Metrics like data freshness, accuracy, and completeness should be used to ensure initiatives are on track. - A multi-phase, long-term view of data governance as a "trusted data program" is advocated over viewing MDM as the goal in itself. Buy-
!["It took me three years and millions of dollars to recognize that data management is an enabler supporting the business, but [it] does not in and of itself reduce costs or deliver revenue." VP of data management for large global technology firm Welcome to the trusted data business case crossroads](https://image.slidesharecdn.com/rob-karel-ensuring-the-value-of-your-trusted-data-v2-1226607754904311-9/85/Rob-Karel-Ensuring-The-Value-Of-Your-Trusted-Data-Data-Quality-Summit-2008-17-320.jpg)
![Thank you Rob Karel +1 650/581-3821 [email_address] www.forrester.com](https://image.slidesharecdn.com/rob-karel-ensuring-the-value-of-your-trusted-data-v2-1226607754904311-9/85/Rob-Karel-Ensuring-The-Value-Of-Your-Trusted-Data-Data-Quality-Summit-2008-31-320.jpg)
Rob Karel - Ensuring The Value Of Your Trusted Data - Data Quality Summit 2008
- 2. Ensuring The Value Of Your Trusted Data Rob Karel Principal Analyst Forrester Research November 14, 2008
- 3. Agenda Setting the stage Business drivers must set the foundation for your business case A bottom-up valuation approach Recommendations
- 4. What is “Trusted Data”? Data used by business stakeholders to support their processes, decisions, or regulatory requirements with no reservations as to the data's relevance, accuracy, integrity, and other previously agreed upon definitions of quality.
- 5. Master Data Management (MDM) defined Forrester defines MDM as a business capability enabling an organization to: Identify trusted master data. MDM defines and/or derives the most trusted and unique “version” of important enterprise data (e.g., vendor, customer, product, employee, asset, material, location, etc.). Leverage master data to improve business processes and decisions. MDM incorporates this master version of the data within functional business processes (sales, marketing, finance, support, etc.) that will provide direct – contextual - benefit to employees, customers, partners, or other relevant stakeholders within an organization. MDM is not a technology space; it is a business capability enabled through the integration of multiple technologies and business processes. Source: Forrester Research, Inc.
- 6. MDM emerges as a key technology initiative January 2008 “The State Of Enterprise Software Adoption: 2007 To 2008”
- 7. An MDM Ecosystem requires an effective delivery system – with DQ at its core April 2008 “How To Make MDM And SOA Better Together”
- 8. Consider the complete Information Supply Chain when assessing data quality May 2008 “Trends 2008: Master Data Management”
- 9. Use the MDM maturity model to gauge your readiness May 2008 “Trends 2008: Master Data Management”
- 10. Data governance is critical path to ensure success of your trusted data initiative Data governance is the process by which an organization formalizes the fiduciary duty for the management of data assets critical to its success.
- 11. Adopt an enterprise data governance framework that best matches your corporate culture September 2007 “Data Governance: What Works And What Doesn’t”
- 12. Agenda Setting the stage Business drivers must set the foundation for your business case A bottom-up valuation approach Recommendations
- 13. Data quality and MDM initiatives offer compelling drivers Source: Upcoming “The ROI Of Master Data Management” Forrester report
- 14. Four categories of business drivers for trusted data May 2008 “Building The Business Case For Master Data Management”
- 15. Without a business case, MDM and DQ will deliver below expectations Common contributors to failed implementations include: Failure to create business/IT alignment. Underestimating the sponsorship commitment required for success. Viewing poor data quality as the disease, but not the symptom, of broken processes.
- 16. Focus by building a Trusted Data Business Technology Value Plan May 2008 “Building The Business Case For Master Data Management”
- 17. "It took me three years and millions of dollars to recognize that data management is an enabler supporting the business, but [it] does not in and of itself reduce costs or deliver revenue." VP of data management for large global technology firm Welcome to the trusted data business case crossroads
- 18. Welcome to the trusted data business case crossroads Problem: There’s no funding without a business case. It’s too hard to build a top-down business case for the whole enterprise. Solution: Define your business case from the bottom up; start with an LOB or function-specific need and evolve to cross-enterprise deployment.
- 19. Agenda Setting the stage Business drivers must set the foundation for your business case A bottom-up valuation approach Recommendations
- 20. Bottom-up valuation is the key to gaining momentum Focus first on data quality concerns within individual applications, functions, or processes to: Return value more quickly. Secure less-expensive solutions. Evangelize subsequent data quality or MDM efforts more quickly. Scoping and prioritization based on business processes most critically affected by poor data quality is the key to defining your business case for trusted data.
- 21. Four questions for business stakeholders to identify target processes July 2008 “A Truism For Trusted Data: Think Big, Start Small”
- 22. When justifying trusted data, the squeaky wheel should get the grease Examples of common processes to target include: Reducing inefficiencies in the call center Reducing wasted direct marketing costs Reducing breakdowns in supply chain Increasing revenue through improved targeted marketing Reducing risk of privacy noncompliance Supporting corporate Net Promoter strategies
- 23. Call Center cost savings calculation (Example) July 2008 “A Truism For Trusted Data: Think Big, Start Small”
- 24. Direct Marketing cost savings calculation (Example) July 2008 “A Truism For Trusted Data: Think Big, Start Small”
- 25. What to measure to ensure business confidence Freshness Hierarchical relationships Third-party enrichment and insights Timeliness Uniqueness (not duplicated) Integrity Consistency and standardization Accuracy Completeness
- 26. Case Studies - Premier
- 27. Case Studies – Consumer Electronics Giant
- 28. Agenda Setting the stage Business drivers must set the foundation for your business case A bottom-up valuation approach Recommendations
- 29. Confusion reigns supreme in the MDM marketplace Have you considered your requirements around:
- 30. Recommendations Self-assess and identify your appropriate level of MDM maturity to target… … it may not begin with MDM-branded technology Consider “Trusted Data” a multi-phase, multi-year program Partner with business stakeholders that “get it” Identify influencers to fast-track adoption Hone your business case development skills
- 31. Thank you Rob Karel +1 650/581-3821 [email_address] www.forrester.com
- 32. Selected Forrester research Upcoming “The ROI Of Master Data Management” October 2, 2008, “It’s Time To Invest In Upstream Data Quality” July 28, 2008, “A Truism For Trusted Data: Think Big, Start Small” May 30, 2008, “Building The Business Case For Master Data Management” April 24, 2008, “How To Make MDM And SOA Better Together” January 3, 2008, “Information Managers: Deliver Trusted Data With A Focus On Data Quality” September 10, 2007, “Data Governance: What Works And What Doesn’t”