2013 data governance professionals organization (dgpo) digital river webinar
DESCRIPTION
Hosted by the Data Governance Professionals Organzation (DGPO) for webinar attendees. Successful Data Governance at Digital River. 2013 DGIQ Data Governance Best Practice Award: FinalistTRANSCRIPT
SUCCESSFUL DATA GOVERNANCE AT
DIGITAL RIVER2008-132013 DGIQ BEST PRACTICE AWARD: FINALIST
11/6/2013
+
by Deepak Bhaskar
2
AGENDA Introduction
Speaker Bio: Deepak Bhaskar
Company introduction: Digital River
Data Governance
Data Management Functions & Environmental Elements
Organizational change & Data Management programs
People, Process, Technology
Integrating Programs: Data Quality and Master Data Management
Digital River Business Challenges
Batch mode for ERP Finance & Accounting Domain
Real time for Postal Address & Geocode Domain
Connecting the Dots
Making Business Cases and Vendor Tool selections for programs
SLA’s, KPI, Dashboards and Org Charts
Recommendations
Future roles and organizational structure
Conclusion: Digital River Data Governance best practices
3
SPEAKER BIO:
Introduction Data Governance Business Challenges Connecting the Dots Recommendations
At Digital River – 10 years
Other roles held: Manager, Enterprise Data Quality, (2008-12) Sr. Strategic Database Analyst, Strategic Marketing (2005-08) Sr. Software Test Engineer, Quality Assurance (2003-05)
Roles held in prior to Digital River include: Lead Test Consultant, (Gelco Info. Network, now Concur Technologies) DBA, (Eschelon Telecom, now Integra Telecom) DBA, Software Developer , Sr. Test Engineer (techies.com) Retail Marketing Associate (Barnes and Noble Booksellers)
Education & Training: ACE Leadership Series; Minnesota High Tech Association Business Strategy: Competitive Advantage; Johnson school of management, Cornell University MBA, International Business; Keller school of management, DeVry University BSEE, Electrical Engineering: Microelectronics & Telecoms; Minnesota State University
DEEPAK BHASKARSr. Manager, Data Governance, Trillium Product. Governance and Compliance.
Conclusion
COMPANY OVERVIEW
DIGITAL RIVER
5
$386M in 2012 revenue
$27B annual online transactions (ttm)
19 years of experience
30 offices around the world
50% revenue outside the Americas in 2012
1,400+ commerce experts
100+ countries where we do business
180 payment methods
DIGITAL RIVER AT A GLANCE
5
UNMATCHED GLOBAL EXPERIENCE AND REACH40 transaction currencies30 site display languages15 languages in customer serviceTechnology Pioneer, Founded in 1994Generates Revenue in Virtually Every Country on the Planet
Introduction Data Governance Business Challenges Connecting the Dots Recommendations Conclusion
6
LEVERAGE AN END-TO-END SUITE OF COMMERCE SOLUTIONSWITH OUR COMMERCE-AS-A SERVICE OFFERING
Marketing Services
SITE OPTIMIZATIONSEARCH EMAIL AFFILIATE DISPLAY ANALYTICS
Commerce Experience
Commerce Business
Infrastructure
Payments
SHOPPING CARTCATALOGWCMS
SEARCHAN-DIZING
MERCHANDISING& PROMOTION
LOCALI-ZATION
RECOMMENDATION & PERSONALIZATION A/B TESTINGPRICING
ADMIN TOOLS
COMPLIANCEORDER
MANAGEMENTFRAUDLOCAL
ENTITIES
MERCHANT & SELLER OF
RECORDINTEGRATION
SERVICESBUSINESS
INTELLIGENCETAXCLOUD
ENABLEMENTCUSTOMER
SERVICE
SINGLE CONNECTION TO PAYMENTS GRID
PSP SERVICES
GATEWAY SERVICES
IN-COUNTRY MERCHANT
FULL-SERVICE ACQUIRING
Introduction Data Governance Business Challenges Connecting the Dots Recommendations Conclusion
7
SOFTWARE & SERVICES
GAMES AND ENTERTAINMENT
WORLD-CLASS CLIENTS
TRAVEL
E-TAIL
Consumer Electronics
Introduction Data Governance Business Challenges Connecting the Dots Recommendations Conclusion
WHAT ISDATA GOVERNANCE?
DATA MANAGEMENT ASSOCIATION (DAMA)
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations
© DAMA-DMBOK2 (Apr 2012)
Data Management Functions Environmental Elements
9
Conclusion
WHAT IS DATA GOVERNANCE?
Data Governance has all the characteristics of any Strategic
governance process
Process
People
Technology
Programs Management
Governing body
Procedures
Plan
Decision-making
Business needs
support
Strategy
Assets
Digital River’s definition of Data Governance:-
A set of processes that treats Data as a Strategic Area within the enterprise
(just like Sales, Finance, HR, Sourcing, etc…)
10
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
THE DATA MANAGEMENT WHEEL: BINARY VS. TERNARY
In 2008 embraced DM which meant fundamentally changing the organizational structure of Digital River:
ITBusITBus
DM
Binary model:No Data Mgmt
IT and Business frictions
Ternary model:Data Mgmt
No IT and Business frictions
DM deployment
The DM is a process “wheel” owned by the Data Stewards
Data Stewards interface with Business and IT Stewards to carry out Data Management activities around remediating the Dirty Data
11
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
ENTERPRISE DATA MANAGEMENT MATRIX ORGANIZATION & ACTIVITIES
12
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
13
PEOPLE, PROCESS, TECHNOLOGY
13
>Data Governance need not be invented from scratch:HR Governance Financial Governance Data Governance
People HR associatesFinancial analysts;
accountantsData Stewards
ProcessHuman Capital Management
Finance & Accounting Data Management
Technology HR systemsAccounting systems(G/L; Tax; Treasury)
Data Quality; MDM; MDR systems
Functional Programs
Skill set mgmtRecruiting
Benefits mgmtCompensation framework
Contractor mgmtTraining
Budget & forecastingTreasury
Financial reportingTax
Investment Mgmt
Data Quality ProgramMDM ProgramMDR Program
Managed asset Labor forceFinancial assets &
liabilitiesData
Policies & Regulations HR policiesSOX, SAS 70, SEC, IFRS,
etc…Privacy laws; HIPAA; SOX; DM
Policies; etc…
Functional leadersTraining Mgr
Recruitment MgrBenefits Mgr
ComptrollerTax Mgr
Investment Mgr
DQP MgrMDM MgrMDR Mgr
Process owner VP of HR VP of Finance / CFOVP of Data Management / CDO
(Chief Data Officer)
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
BUSINESSCHALLENGES
15
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
E-COMMERCE PLATFORM
At the heart of the business: The order checkout workflow:
Store homepage Product detail Page Shopping cart page Bill to page Ship to page Payment processing page Order confirmation page Thank you page Invoice page
A way to convert raw data to Clean Data Dirty Data
Definition of Data Governance A set of processes that treats
Data as a Strategic Area within the enterprise
16
ERP USE OF DATA GOVERNANCE PROGRAMS
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations
ERPETL
E-Com1
E-Com2
E-Com3
DATA QUALITYERP
ERPIntegration
Structure (ETL)• Extract• Transform• Load
Content (Data Quality Tool)• Quality Rules• Governance• Certification
ERPDW
BI
REPORTING
Process (ERP)• Integration• Productivity• Controls
Reporting• Accuracy• Flexibility• Scalability
Ancillary systems
ERPMDM
ETL drop zone
TSS ®
Stage
.
.
.
> Commerce occurs on platforms, batches of data transmitted to ERP
> DQP and MDM became Technology components of the ERP Implementation
Conclusion
17
REAL TIME ADDRESS VALIDATION (RTAV) USE OF DQP
Business ChallengesData GovernanceIntroduction Connecting the Dots Recommendations
COMMERCE PLATFORM-RTAV CALLS
Conclusion
CONNECTING THEDOTS
1919
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations
DATA GOVERNANCE HAS A FOCUS ON POLICIES AND PROCESSES
Conclusion
2020
DATA GOVERNANCE FOCUS: POLICIES & PROGRAMS
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
2121
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
BUSINESS CASE STUDY AND ROI FOR DATA GOVERNANCE PROGRAM’S
22
VENDOR DUE DILIGENCE FOR DATA GOVERNANCE PROGRAMS
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
DASHBOARDS
Measures the level of data quality = rate of compliance with business rules (DQ Tool output)
Measured monthly, after updates in Business Rules from previous report
Data Stewards responsible for acting on Dashboard metrics
Over 400+ attributes have business rules fired.
Consistently achieving 15-20% increase in the quality of data as a result of data cleansing
23
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
24
THE TEAM EVOLUTION: DATA MANAGEMENT AT DIGITAL RIVER (2008-13)
Business Challenge 2Business Challenge 1Introduction Recommendations Conclusion
Vice PresidentOperations
Vice PresidentStrategic
Technologies
Sr. Director EDM
Data Steward
Data Steward
Data Steward
Enterprise Data Management Data Governance Steering Committee
Vice PresidentOperations
Vice PresidentFinance
Sr. DirectorEDM
Vice PresidentStrategic
Technologies
Vice PresidentStrategic
Marketing
Vice PresidentTax
Vice PresidentEnterprise Systems
and Data Management
Vice PresidentEnterprise Systems
and Data Management
CFO
Vice PresidentStrategic
Technologies
Data Steward
Manager Data Quality
Data Steward
Enterprise Data Management Data Governance Steering Committee
Vice PresidentFinance
Vice PresidentStrategic
Technologies
Vice PresidentTax
Vice PresidentInternal Systems
CFO
Vice PresidentInternal Systems
Vice PresidentProduct
Manager Data Quality
CIO
Vice PresidentGovernance &
Compliance
Sr. Software Engineer
Sr. Manager Data Governance, DQ Tool Product
Manager
Data StewardERP
Enterprise Data Management Data Governance Steering Committee
Vice PresidentFinance
Vice PresidentTax
Vice PresidentInternal Systems
CFO
Vice PresidentInternal Systems
CIO
Vice PresidentGovernance &
Compliance
Vice PresidentProduct
Vice PresidentDevelopment
CMO
Sr. Manager Data Governance, DQ Tool Product Manager
COO
2008
2010
2013
RECOMMENDATIONS
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
NEW ORG. ROLES CHIEF DATA OFFICER/VP OF DATA MGMT.
25
CIO / VP Technology
Manager / Director
CDO / VP Data Mgmt.Data
Governance+IT
Governance
Focus: Process Mgmt Focus: Data Mgmt
Data Governed as an Independent Asset
Centralized authority: CDO / VP Data Mgmt.
Improved control over compliance and financial risks
Clear accountability for all aspects of data
Cost reductions from uniform DM processes
Data scalable across the enterprise, and over time (growth, acquisitions…)
Data Management no longer dependent on IT strategy
Cannot be governed Independently
Not managed as a Strategic Asset
Conflict of interests between Technology and Data Management
Difficult to enforce Quality rules across the enterprise
High cost and low returns
Data becomes silo-driven (like IT…)
Responsibility without authority
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
EXPANSION OF THE EDM MATRIX ORGANIZATION
26
* Chief Data Officer (typically reports to CTO, CIO, CEO, CMO, CSO) http://en.wikipedia.org/wiki/Chief_data_officer** Data Management Area: typically determined using a Data Consumption Matrix (regularly updated)*** Data Stewards can either belong to the EDMO, remain in their respective DMA, or both.
CDO*
DQ MDRMDM LDM . . .Program Managers
Senior DM Executives
Data
Ste
ward
s **
* DMA** 1
DMA** 2
DMA** 4
DMA** 3
DM Council/Steering Committee
Data GovernanceIntroduction Business Challenges Connecting the Dots Recommendations Conclusion
DATA GOVERNANCE SCOPE OF CONTROL
© Copyright Baseline Consulting Group, 2013. Used with permission from SAS Institute.
28
THE TEAM EVOLUTION: DATA MANAGEMENT AT DIGITAL RIVER (2008-13)
Business Challenge 2Business Challenge 1Introduction Recommendations Conclusion
Vice PresidentOperations
Vice PresidentStrategic
Technologies
Sr. Director EDM
Data Steward
Data Steward
Data Steward
Enterprise Data Management Data Governance Steering Committee
Vice PresidentOperations
Vice PresidentFinance
Sr. DirectorEDM
Vice PresidentStrategic
Technologies
Vice PresidentStrategic
Marketing
Vice PresidentTax
Vice PresidentEnterprise Systems
and Data Management
Vice PresidentEnterprise Systems
and Data Management
CFO
Vice PresidentStrategic
Technologies
Data Steward
Manager Data Quality
Data Steward
Enterprise Data Management Data Governance Steering Committee
Vice PresidentFinance
Vice PresidentStrategic
Technologies
Vice PresidentTax
Vice PresidentInternal Systems
CFO
Vice PresidentInternal Systems
Vice PresidentProduct
Manager Data Quality
CIO
Vice PresidentGovernance &
Compliance
Sr. Software Engineer
Sr. Manager Data Governance, DQ Tool Product
Manager
Data StewardERP
Enterprise Data Management Data Governance Steering Committee
Vice PresidentFinance
Vice PresidentTax
Vice PresidentInternal Systems
CFO
Vice PresidentInternal Systems
CIO
Vice PresidentGovernance &
Compliance
Vice PresidentProduct
Vice PresidentDevelopment
CMO
Sr. Manager Data Governance, DQ Tool Product Manager
COO
2008
2010
2013
CONCLUSION
29
Data GovernanceIntroduction Business Challenges Connecting the Dots
Data Governance and the DQP: Managed process oversight to
ensure that data-related processes and controls are being followed
Data Governance at Digital River
Is a Strategic and Permanent investment to treat Data as a Strategic Asset
It exists through a functional Enterprise Data Management program
Data Management Programs (DM)
Requires People, Process and Technology to support our Data Governance efforts
Reduces Operational costs for order checkout and info. delivery processes
Reduces Risk exposures (financial, regulatory, market and strategic)
Both Require:-
An organizational change to the Ternary model (Business / Data / IT)
A “Data Governor Authority” (e.g. VP of Data Mgmt.) and a dedicated EDM team
Effective use of Data Quality tools (for Profiling, Discovery, Cleansing etc.)
Contrary to many beliefs the Data Quality Tool is NOT a Database
It is a repository of business rules; Rules can be managed and reused.
DATA GOVERNANCE AT DIGITAL RIVER
29
Impact assessment
Identification
IT Bus.
Clarification & remediation
Monitoring
30
DEEPAK BHASKARSr. Manager, Data Governance, Trillium Product Governance and ComplianceDigital River, Inc.
http://www.linkedin.com/in/dbhaskar1
DB_2008
dbhaskar03
dbhaskar2008