The Case for the Chief Data O!cer Recasting the C-Suite to Leverage Your Most ValuableData Asset

Peter Aiken and Michael Gorman The Case for the

Recasting the C-Suite to Leverage your most Valuable Asset

10124 W. Broad Street, Suite C Presented by Peter Aiken, Ph.D. Glen Allen, Virginia 23060 804.521.4056

Peter Aiken, PhD • 25+ years of experience in data • Multiple international awards & recognition • Founder, Data Blueprint (datablueprint.com) • Associate Professor of IS, VCU (vcu.edu) • President, DAMA International (dama.org) • 8 books and dozens of articles • Experienced w/ 500+ data The Case for the management practices in 20 countries Chief Data O!cer Recasting the C-Suite to Leverage • Multi-year immersions with Your Most Valuable Asset organizations as diverse as the US DoD, Nokia, Deutsche Bank, Wells Fargo, and the Commonwealth Peter Aiken and of Virginia Michael Gorman

2 Copyright 2013 by Data Blueprint 2 CIOs

• Have accomplished astounding technological feats

• Have developed excellent organizational skill sets

• Have delivered phenomenal value

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4 Copyright 2013 by Data Blueprint Wordle.net

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The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

6 Copyright 2013 by Data Blueprint Motivation • Organizations: – $600 billion annually due to poor DM practices – Remain unaware of the root causes of their losses • IT Professionals/Data Managers must: – Gain executive-level approval for basic DM investments – Must monetize these lost opportunities and related costs • To avoid an unfortunate loop: – Management focused on fixing symptoms – Cannot address the underlying problems • Business performance will be positively influenced • IT projects will better support business missions • Top management is more likely to support DM • Practitioners can prioritize relative IS investments and adjust portfolios according to business needs • The bigger the organization, the more important data assets are to the organization • This is due to the increased leverage obtainable by larger organizations

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IT Project Failure Rates • Recent IT project failure rates statistics can be summarized as follows: – Carr 1994 • 16% of IT Projects completed on time, within budget, with full functionality – OASIG Study (1995) • 7 out of 10 IT projects "fail" in some respect – The Chaos Report (1995) • 75% blew their schedules by 30% or more • 31% of projects will be canceled before they ever get completed • 53% of projects will cost over 189% of their original estimates • 16% for projects are completed on-time and on-budget 1 in 3 IT projects suffers on – KPMG Canada Survey (1997) • Price • 61% of IT projects were deemed to have failed – Conference Board Survey (2001) • Schedule • Only 1 in 3 large IT project customers were very “satisfied" • Functionality – Robbins-Gioia Survey (2001) • 51% of respondents viewed their large IT implementation project as unsuccessful – MacDonalds Innovate (2002) • Automate fast food network from fry temperature to # of burgers sold-$180M USD write-off – Ford Everest (2004) • Replacing internal purchasing systems-$200 million over budget – FBI (2005)

• Blew $170M USD on suspected terrorist database-"start over from scratch" http://www.it-cortex.com/stat_failure_rate.htm (accessed 9/14/02) New York Times 1/22/05 pA31

8 Copyright 2013 by Data Blueprint IT Project Failure Rates (moving average) 60%

53% 53% 51% 49%

45% 46% 44%

40%

34% 33% 32% 30% 31% 29% 28% 28% 27% 26% 24% 23%

18% 15% 16% 15%

Failed Challenged Succeeded 0% 1994 1993 1998 2000 2002 2004 2009

9 Copyright 2013 by Data Blueprint Source: Standish Chaos Reports as reported at: http://www.galorath.com/wp/software-project-failure-costs-billions-better-estimation-planning-can-help.

"Most significant IT reform of the last decade" 1996 (passed) • Establish Agency CIOs – Link IT investments to accomplishments • Requires – CIO "Milestone Decision" assessment – Establish process to select, manage and control IT investments (CMM Level 2) • Responsible – "developing, maintaining, and facilitating the implementation of a sound and integrated information technology architecture"

10 Copyright 2013 by Data Blueprint The Clinger-Cohen Act: 10 Years Later

2006 (assessed) • Some guidance exists • Mixed results • Some experiences gained – Federal Enterprise • Some progress has been made Architecture – "The landscape of federal information technology is not a clearly defined plain of reference points that can be empirically studied in pure isolation" – Planned 5% decrease in IT costs – 9% increase instead

http://www.govexec.com/federal-news/2006/07/the-clinger-cohen-act-10-years-later/22227/

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£12bn NHS system is scrapped

• The biggest civilian IT project of its kind in the world, it has already squandered at least £12.7billion. Some estimates put the cost far higher. • Analysts say the sum would have paid the salaries of more than 60,000 nurses for a decade. • Following an official review, the ‘one size fits all’ IT project will be replaced by much cheaper regional initiatives, with hospitals and GPs choosing the IT system they need.

• Read more: http://www.dailymail.co.uk/news/article-2040259/NHS-IT-project-failure-Labours-12bn- scheme-scrapped.#ixzz2R1yb9F1i

12 Copyright 2013 by Data Blueprint Billion-Dollar Flop: Air Force Stumbles on Software Plan

• In policy circles, problems that are mind-bogglingly difficult or impossible to solve, like global warming, are formally termed “wicked.” • For the United States Air Force, installing a new software system has certainly proved to be a wicked problem. Last month, it canceled a six-year-old modernization effort that had eaten up more than $1 billion. When the Air Force realized that it would cost another $1 billion just to achieve one-quarter of the capabilities originally planned — and that even then the system would not be fully ready before 2020 — it decided to decamp.

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The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

14 Copyright 2013 by Data Blueprint A Digital Universe ... • Consists of two species of bits: – Differences in space – Differences in time – Logic can be done using zeros and ones [Leibniz 1679] • Structure bits – Vary in space but are invariant across time – These are memory (data) • Sequence bits – Vary across time but are invariant across space – These are code • While both are equally important to technology, more research and attention has been focused on the code than on the data [articulation from Dyson 2012]

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Observation

• Fred Brooks Jr.'s argument that data representation is the essence of programming. – "Show me your flowchart and conceal your tables, and I shall continue to be mystified. Show me your tables, and I won't usually need your flowchart; it'll be obvious."

16 Copyright 2013 by Data Blueprint Two Views of the Same Individual

Business are being bombarded offers for these services

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Organizations Surveyed • Results from International Organizations 10% more than 500 Local Government 4% organizations

State Government Agencies • 32% government 17% • Appropriate public company representation • Enough data to

Federal Government demonstrate 11% European organization DM practices are Public Companies generally more 58% mature

18 Copyright 2013 by Data Blueprint Not Enough Data Management Involvement

Data Warehousing

XML

Data Quality

Customer Relationship Management

Master Data Management

Customer Data Integration

Enterprise Resource Planning

Enterprise Application Integration

Initiative Leader Initiative Involvement Not Involved

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% of DM organizations labeled "successful"

0.45 1981 2007

0.36

0.27

0.18

0.09

Successful 0 Partial Success Don't know/too soon to tell • In 25 years: Unsuccessful – "Successful" DM organizations fell from 43% to 15% Does not exist – "Unsuccessful" increased from 5% to 21%.

20 Copyright 2013 by Data Blueprint CIOs are distancing themselves from DM

1981 2007

Percentage Reporting Directly 74% 43% to the CIO

Percentage reporting 3 or 26% 57% more levels below the CIO

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Why Data Projects Fail by Joseph R. Hudicka

$0 $125,000 $250,000 $375,000

• Assessed 1200 migration projects! Median Project Expense – Surveyed only experienced migration specialists who have done at least four migration projects Median Project Cost • The median project costs over 10 times the amount planned! • Biggest Challenges: Bad Data; Missing Data; Duplicate Data • The survey did not consider projects that were cancelled largely due to data migration difficulties • "… problems are encountered rather than discovered"

22 Copyright 2013 by Data Blueprint Joseph R. Hudicka "Why ETL and Data Migration Projects Fail" Oracle Developers Technical Users Group Journal June 2005 pp. 29-31 2/3rds have not formally established IA program

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4% have almost all they need from IA

Forrester information architecture research

24 Copyright 2013 by Data Blueprint Root Cause Analysis • Symptom of the problem – The weed – Above the surface – Obvious • The underlying Cause – The root – Below the surface – Not obvious • Poor Information Management Practices

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Ishikawa Fishbone Diagrams

• Why is infant mortality so high? • Why are so many organizational technology – Malnourished mothers experiences so poor? • Why are mothers malnourished? – Misunderstanding of data's role in IT – Substandard biology educations in high school • Why do so few understand data's role in IT? • Why do are biology programs substandard? – Little, if any, focus on enterprise-wide data – Poor education of high school biology teachers use in the educational system • Why do we have poor biology teacher education? • Why is the educational system not addressing – Biology profession unaware of consequences this gap? – Lack of recognition by the system • Why has the system not yet been made aware of this deficiency? – Lack of understanding at the C-level of these issues • Why do they not understand? – Little, if any, focus on enterprise-wide data use in the educational system

Asking "why" repeatedly!

26 Copyright 2013 by Data Blueprint Data Inflation

Unit Size What+it+means

Short+for+“binary+digit”,+a=er+the+binary+code+(1+or+0)+ Bit+(b) 1+or+0 +use+to+store+and+process+data Enough+informaCon+to+create+an+English+leEer+or+number+in+ Byte+(B) 8+bits computer+code.+It+is+the+basic+unit+of+compuCng

Kilobyte+(KB) 1,000,+or+210,+bytes From+“thousand”+in+Greek.+One+page+of+typed+text+is+2KB

From+“large”+in+Greek.+The+complete+works+of+Shakespeare+total+5MB.+A+typical+pop+song+is+ Megabyte+(MB) 1,000KB;+220+bytes about+4MB

Gigabyte+(GB) 1,000MB;+230+bytes From+“giant”+in+Greek.+A+twoWhour+film+can+be+compressed+into+1W2GB

From+“monster”+in+Greek.+All+the+catalogued+books+in+America’s+Library+of+Congress+total+ Terabyte+(TB) 1,000GB;+240+bytes 15TB All+leEers+delivered+by+America’s+postal+service+this+year+will+amount+to+around+5PB.+ Petabyte+(PB) 1,000TB;+250+bytes Google+processes+around+1PB+every+hour

Exabyte+(EB) 1,000PB;+260+bytes Equivalent+to+10+billion+copies+of+The+Economist

ZeEabyte+(ZB) 1,000EB;+270+bytes The+total+amount+of+informaCon+in+existence+this+year+is+forecast+to+be+around+1.2ZB

YoEabyte+(YB) 1,000ZB;+280+bytes Currently+too+big+to+imagine

The prefixes are set by an intergovernmental group, the International Bureau of Weights and Measures. Source: The Economist Yotta and Zetta were added in 1991; terms for larger amounts have yet to be established

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Driver: • Increasing demand • Increasing amount • Heightened public and corporate sensitivity to security, privacy, and compliance • Data dependent IT initiatives (BI, SOA, Analytics, Big Data ...) • New data emphasis • Leveraging data for competitive advantage and profitability

28 Copyright 2013 by Data Blueprint A likely state of your data

Redundancy

Multiple Data Sources Multiple changes

Very Silo’ed or conflicting data to source system sources Inconsistent Data Quality

Inconsistent data definitions of common terms IT are Difficult to report and mine against data owners Lots of Data….Minimum Information

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A likely state of your data management efforts

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Sales Data Volume

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

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The Situation

32 Copyright 2013 by Data Blueprint Aspirational Data in the Cloud

• This is a the approximate level of detail but let's next examine two extreme implementation examples 1) forklift 2) optimal 3) problems with above a) no basis for decisions made b) no inclusion of architecture/engineering concepts c) no idea that these concepts are missing from the process

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Getting into the Cloud

Less Cleaner Transform More shareable ... data

34 Copyright 2013 by Data Blueprint Strategic Motivation

"One day Alice came to a fork in the road and saw a Cheshire cat in a tree. Which road do I take? she asked. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter."

Lewis Carroll from Alice in Wonderland • "We want to move our data management program to the next level" – Question: What level are you now? • You are currently managing your data, – But, if you can't measure it, – How can you manage it effectively? • How do you know where to put time, money, and energy so that data management best supports the mission?

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Cruiser Collector

36 Copyright 2013 by Data Blueprint Cruiser Collector

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Organizational DM Practices Value-added Workproducts Data management processes and Organizational Strategies infrastructure Implementation Data Program Guidance Coordination Goals Organizational Combining multiple Integrated assets to produce Data Integration Models extra value Achieve sharing of data within a business area Organizational-entity subject area data integration Data Data Stewardship Standard Development Data

Application Models & Provide reliable Designs data access Direction Data Support Data Operations Business Asset Use Data Feedback

Leverage data in organizational activities Business Value

38 Copyright 2013 by Data Blueprint Five Integrated DM Practice Areas

Manage data coherently.

Data Program Coordination Share data across boundaries.

Organizational Data Integration

Data Stewardship Data Development

Assign responsibilities for data. Engineer data delivery systems.

Data Support Operations Maintain data availability.

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"The rumors of the demise of non-relational processing are greatly exaggerated" (Mark Twain)

5.4% • 68% using hierarchical (typically IMS or Adabase) • 20% reporting operational network DBMS • Virtually no textbook education 1.5%

Percentage of mission-critical, non-relational processing Percentage of non-relational processing (excluding mission-critical)

20.5% 0.5% Total % of non-relational processing

15.7% 1.0%

9.8% 0.3% 0.3% 8.6% 7.6% 0.4% 4.9% 4.9% 3.0% 0.4% 1.7% 1.3% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Copyright 2013 by Data Blueprint 40 Percentage of organizations relying on x amount of non-relational database processing Program: Where is the record for person 5 Basic Data Structures "Townsend?"

Program: Must start at the beginning and read each record when looking for person "Townsend?" Index

Index: Start looking here where the Flat File: Records are typically sorted "Ts" are stored according to some criteria and must be searched from the beginning for each access

Indexed Sequential File: Built-in index permits location of Network Database: Records are related to each records of persons with last names starting with "T" other using arranged master records associated with multiple detail records using linked lists and pointers Associative Concept-oriented Relational Database: Records are related to each other using relationships describable using relational Multi-dimensional algebra Star schema XML database

Hierarchical Database: Records are related to each other hierarchically using 'parent child' relationships

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Organizational DM Practices and their Inter-relationships

Defining,Organizational coordinating, Strategies resourcing, implementing, and monitoring organizational data program strategies, policies, plans, etc.Implementation as coherent set of activities.

Guidance Data Program Identifying, modeling, coordinating, organizing, distributing, and architecting Coordination data shared across business areas or organizational boundaries. Goals

Organizational Integrated Data Integration Models

Ensuring that specific individuals Data Data are assigned the responsibility Development for the maintenance of specific Stewardship Standard data as organizational assets, Data and that those individuals are Specifying and designing appropriately provided the requisite Application knowledge, skills, and abilities to architected data assets that areModels engineered & to accomplish these goals in be capable of supporting organizationalDesigns needs. conjunction with other data stewards inDirection the organization. Data Support Data Operations Business Asset Use Initiation, operation, tuning, maintenance, Data Feedbackbackup/recovery, archiving and disposal of data assets in support of organizational activities. Business Value

42 Copyright 2013 by Data Blueprint Organizational DM Practices Value-added Workproducts Data management processes and Organizational Strategies infrastructure Implementation Data Program Guidance Coordination Goals Organizational Combining multiple Integrated assets to produce Data Integration Models extra value Achieve sharing of data within a business area Organizational-entity subject area data integration Data Data Stewardship Standard Development Data

Application Models & Provide reliable Designs data access Direction Data Support Data Operations Business Asset Use Data Feedback

Leverage data in organizational activities Business Value

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Adapted from John Ladley Various Maturity Frameworks

How do Make it What Make it What do I What Make it Why did it What will we make it Usage basis Happen Happened happen by want to should we Happen happen? happen? happen Faster ? itself happen? do next? better?

Trans- Operation- Closed Collabor - Content basis Events Reporting Analyzing Predictive Foresight actions alize loop ative

Capability Initial Repeatable Defined Managed Optimized basis

Organization Operate: Consolidate Integrate Optimize Innovate Basis

Data is a lubricant! Data becomes a fuel!

44 Copyright 2013 by Data Blueprint Data Management Capability Maturity Model Levels Optimizing We have a process for improving our DM capabilities (5)

One concept for process We manage our DM processes so that the improvement, others whole organization can follow our standard Managed include: DM guidance (4) • Norton Stage Theory • TQM • TQdM We have experience that we • TDQM have standardized so that all in Defined • ISO 9000 and focus on the organization can follow it (3) understanding current processes and determining where to make improvements. Repeatable We have DM experience (2) and have the ability to implement disciplined processes Initial Our DM practices are ad hoc and dependent (1) upon "heroes" and heroic efforts

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Assessment Components

Data Management Practice Areas Capability Maturity Examples of practice maturity Model Levels DM is practiced as a Data program coherent and coordinated coordination set of activities Our DM practices are ad hoc and 1 – Initial dependent upon "heroes" and heroic efforts Delivery of data is support We have DM experience and have the Organizational data of organizational 2 - Repeatable ability to implement disciplined integration objectives – the currency processes of DM

We have standardized DM practices so Designating specific 3 - Documented that all in the organization can perform it Data stewardship individuals caretakers for with uniform quality certain data

We manage our DM processes so that Efficient delivery of data 4 - Managed the whole organization can follow our Data development via appropriate channels standard DM guidance

Ensuring reliable access to We have a process for improving our Data support 5 - Optimizing data DM capabilities

46 Copyright 2013 by Data Blueprint • CMU's Software Engineering Institute (SEI) Collaboration Data Management Practices • Results from hundreds organizations in various industries including: Measurement (DMPA)

✓ Public Companies Documented (III) Documented

State Government Agencies (II) Repeatable Optimizing (V) Optimizing

✓ (IV) Managed

✓ Federal Government (I) Initial ✓ International Organizations • Defined industry standard • Steps toward defining data management "state of the practice"

Data Program Coordination Focus: Guidance and Organizational Data Integration Facilitation

Data Stewardship

Data Development Focus: Implementation and Access Data Support Operations

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Data Management Practices Assessment

Development guidance Result 1 Challenge

Data Adminstration Result 2 Challenge

ResultSupport 3 systems

Result 4 Asset recovery capability

Result 5 Development training Challenge

0 1 2 3 4 5 Client Industry Competition All Respondents

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Comparison of DM Maturity 2007-2012

5

2007 Maturity Levels 2012 Maturity Levels

4

3

2

1 Data Stewardship Data Development Data Support Operations Data Support Data Program Coordination Data Program Organizational Data Integration Organizational

50 Copyright 2013 by Data Blueprint Conclusion must be?

1. CIOs are unaware of the strategic nature of data; or

2. CIOs are not concerned about how data management is accomplished in their organizations; or

3. CIOs think data management is being adequately accomplished in their organizations

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Largely Ineffective

Investment <= Return Investments 10% • Approximately, 10% percent of organizations achieve parity and (potential positive returns) on their DM investments Return ≈ 0 • Only 30% of DM 70% investments Investment > Return achieve tangible 20% returns at all • Seventy percent of organizations have very small or no tangible return on their DM investments

52 Copyright 2013 by Data Blueprint 2012 London Summer Games • 60 GB of data/second • 200,000 hours of big data will be generated testing systems • 2,000 hours media coverage/daily • 845 million Facebook users averaging 15 TB/day • 13,000 tweets/second • 4 billion watching • 8.5 billion devices connected

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"There’s now a blurring between the storage world and the memory world" • Faster processors outstripped not only the hard disk, but main memory – Hard disk too slow – Memory too small • Flash drives remove both bottlenecks – Combined Apple and Yahoo have spend more than $500 million to date • Make it look like traditional storage or more system memory – Minimum 10x improvements – Dragonstone server is 3.2 tb flash memory (Facebook) • Bottom line - new capabilities!

54 Copyright 2013 by Data Blueprint Non-von Neumann Processing/Efficiencies • von Neumann • Many "big data bottleneck architectures are (computer science) attempts to address – "An inefficiency inherent in this, but: the design of any von – Zero sum game Neumann machine that arises from the fact that – Trade characteristics most computer time is • Michael Stonebraker against each other spent in moving – Ingres (Berkeley/MIT) • Reliability information between storage and the central – Modern database • Predictability processing unit rather than processing is – Google/MapReduce/ operating on it" approximately 4% Bigtable [http://encyclopedia2.thefreedictionary.com/von+Neumann+bottleneck] efficient – Amazon/Dynamo – Netflix/Chaos Monkey – Hadoop – McDipper • Big data exploits non-von Neumann processing

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IBM's Data Baby

56 Copyright 2013 by Data Blueprint A likely state of your data

Redundancy

Multiple Data Sources Multiple changes

Very Silo’ed or conflicting data to source system sources Inconsistent Data Quality

Inconsistent data definitions of common terms IT are Difficult to report and mine against data owners Lots of Data….Minimum Information

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Hierarchy of Data Management Practices (after Maslow) • 5 Data management practices areas / data management basics ... • ... are necessary but insufficient Advanced Data prerequisites to Practices organizational data • Cloud leveraging • MDM • Mining applications that is • Big Data self actualizing data • Analytics • Warehousing or advanced data • SOA practices Basic Data Management Practices – Data Program Management – Organizational Data Integration – Data Stewardship – Data Development – Data Support Operations

http://3.bp.blogspot.com/-ptl-9mAieuQ/T-idBt1YFmI/AAAAAAAABgw/Ib-nVkMmMEQ/s1600/maslows_hierarchy_of_needs.png

Copyright 2013 by Data Blueprint The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

59 Copyright 2013 by Data Blueprint

Application-Centric Development • In support of strategy, the organization develops specific goals/objectives • The goals/objectives drive the Strategy development of specific systems/ applications • Development of systems/applications t leads to network/infrastructure Goals/Objectives requirements t • Data/information are typically considered after the systems/ Systems/Applications applications and network/ t infrastructure have been articulated • Problems with this approach: Network/Infrastructure – Ensures that data is formed around the application and not the information requirements – Process are narrowly Data/Information formed around applications – Very little data reuse is possible Original articulation from Doug Bagley @ Walmart

60 Copyright 2013 by Data Blueprint Finance Application Typical System Evolution (3rd GL, batch system, no source) Payroll Application Payroll Data (3rd GL) (database) Finance Data (indexed)

Marketing Data Marketing Application (external database) (4rd GL, query facilities, no reporting, very large)

Personnel Data (database) Personnel App. (20 years old, R & D un-normalized data) Data (raw) Mfg. Data (home grown Mfg. Applications database) R& D Applications (contractor supported) (researcher supported, no documentation)

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Silos

• Not an acronym for SIngle LOcation

62 Copyright 2013 by Data Blueprint History Lesson

• "In the first decades of computing, the programs in a corporation became an unruly mess, far removed from the orderliness one would normally associate with an engineering discipline." – James Martin 1981

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Comments from CIOs • What a Mess! • CIOs have demanding jobs as information systems in an organization are often taken for granted until something breaks down. • The CIO is responsible for explaining to executive management the complex nightmare this industry has gotten itself into over the past 40 years and why equipment must be constantly retrofitted or replaced.

64 Copyright 2013 by Data Blueprint Einstein Quote "The significant problems we face cannot be solved at the same level of thinking we were at when we created them." - Albert Einstein

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What does it mean to treat data as an organizational asset? • Assets are economic resources – Must own or control – Must use to produce value – Value can be converted into cash • An asset is a resource controlled by the organization as a result of past events or transactions and from which future economic benefits are expected to flow to the organization [Wikipedia] • With assets: – Formalize the care and feeding of data • Cash management - HR planning – Put data to work in unique and significant ways • Identify data the organization will need [Redman 2008]

66 Copyright 2013 by Data Blueprint Data-Centric Development Flow • In support of strategy, the organization develops specific goals/objectives • The goals/objectives drive the development of specific data/ Strategy information assets with an eye to organization-wide usage t Network/infrastructure components • Goals/Objectives are developed to support organization- wide use of data t • Development of systems/applications is derived from the Data/Information data/network architecture t • Advantages of this approach: – Data/information assets are Network/Infrastructure developed from an organization-wide perspective – Systems support organizational data needs and compliment Systems/Applications organizational process flows – Maximum data/information reuse Original articulation from Doug Bagley @ Walmart

67 Copyright 2013 by Data Blueprint

68 Copyright 2013 by Data Blueprint Data Centric Principles 1. Help organizations prepare for future change by implementing a flexible and adaptable organizational data architecture; 2. Focus data assets to efficiently and effectively support organizational strategy; 3. Increase the percentage of time available to accomplish this by a lower percentage of time on maintenance activities; 4. Reducing organizational data ROT; 5. Remaining data will receive more "attention" with respect to quality/security/reuse; 6. Reducing the amount and complexity of the organizational code-base; 7. Reducing the amount of time and efforts and risk associated with IT projects; 8. Engineer flexibility and adaptability into data architectures instead of attempting to retrofit them in after they are in production; 9. Produce more, reusable data-focused work products; 10.When faced with a choice between chaos versus understanding, organizations will gravitate towards a cheaper, more understandable solution; 11.Same comment when comparing complexity versus ease of implementation; 12.Decrease the time spend understanding versus time spent considering the data- focused portions of organizational strategy; 13.Uncertain benefits versus engineerable benefits.

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Data Centric Principles • Faster – Planning for data-focused aspects of IT will require less fact-finding/guesswork – Many data transformations can be "ironed out" of processing – Error correction is faster due to less data volume/more understandable data • Better – Quality of the remaining data can be more easily improved – Resulting data architecture will be more understandable/responsive – Strategy can be explicitly linked to KPIs (or whatever)

• Cheaper – Maintain only what is important – can experience 80% reduction in volume – Less data leads to fewer physical processing/governance requirements – Less diagnostic/planning time required to address challenges

70 Copyright 2013 by Data Blueprint This represents a gradual shift from application to data- centric Strategy Strategy

Goals/Objectives Goals/Objectives

Systems/Applications Data/Information

Network/Infrastructure Network/Infrastructure

Data/Information Systems/Applications

Original articulation from Doug Bagley @ Walmart 71 Copyright 2013 by Data Blueprint

The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

72 Copyright 2013 by Data Blueprint History (such as it is) • Automate existing manual processing • Data management was simple – Running millions of punched cards through banks of sorting, collating and tabulating machines – Results printed on paper or punched onto more cards – Data management meant physically storing and hauling around punched cards • Tasks (check signing, calculating, and machine control) were implemented to provide automated support for departmental- based processing • Creating information silos

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74 Copyright 2013 by Data Blueprint Data Processing Manager

• Fifty years ago, data management was simple. Data processing meant running millions of punched cards through banks of sorting, collating and tabulating machines, with the results being printed on paper or punched onto still more cards. And data management meant physically storing and hauling around all those punched cards (Hayes 2002).

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Chief Information Officer

76 Copyright 2013 by Data Blueprint CIO Responsibilities

• A job title commonly given to the most senior executive in an enterprise responsible for the information technology and computer systems that support enterprise goals

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CFO Necessary Prerequisites/Qualifications

• CPA

• CMA

• Masters of Accountancy

• Other recognized degrees/certifications

• These are necessary but insufficient prerequisites/ qualifications

78 Copyright 2013 by Data Blueprint CIO Qualifications • No specific qualifications • Typically technological fields: computer science, software engineering, or information systems • Many have Master of Business Administration or Master of Science in Management degrees • Recently CIOs' leadership capabilities, business acumen and strategic perspectives have taken precedence over technical skills. • It is now quite common for CIOs to be appointed from the business side of the organization, especially if they have project management skills.

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Qualifications

Leadership capabilities, business Data acumen and strategic perspectives have taken precedence over technical skills

80 Copyright 2013 by Data Blueprint What do we teach knowledge workers about data?

What percentage of the deal with it daily?

81 Copyright 2013 by Data Blueprint

What do we teach IT professionals about data?

• 1 course – How to build a new database – 80% if UT expenses are used to improve existing IT assets • What impressions do IT professionals get from this education? – Data is a technical skill that is used to develop new databases • This is not the best way to educate IT and business professionals - every organization's – Sole, non-depletable, non-degrading, durable, strategic asset

82 Copyright 2013 by Data Blueprint No clear connection exists between to business priorities and IT initiatives

Walmart Strategy Map

Leverage Growth Return

Grow expenses Grow operating Grow Produce Deliver greater Pass on Drive efficiency Leverage scale Leverage Deploy new Attract new Expand into Enter new Make Drive ROI slower than income faster productivity of significant free shareholder savings with technology globally expertise formats members new channels markets acquisitions performance sales than sales existing assets cash flow value CEO Perspective

Develop new, Integrate Develop new, Remain See more uniform brand and retail Open new Appeal to new Increase

e Attract more customers & have customer purchasing more innovative shopping innovative relevant to all experience stores demographics "Green" Image formats experience formats customers Customer Perspectiv

Increase Present Create Improve Improve use of Strengthen Making benefit from consistent Integrate Match staffing Increase sell

e competitive Associate information supply chain acquisitions our global view and channels to store needs through advantages productivity Internal expertise experience Perspectiv

Improve Human and Increased Reduce Inventory Manage new Sales and Revenue Return on

e Gross Margin Improvement Intell. Capital member-base Cash flow expenses Management facilities margin by growth Capital investment revenues

Financial facilities Perspectiv ( Alignment Gap ) Strategic Initiatives Data Associate Customer Supply Chain Merchant Tools Multi Channel Productivity Insights

Corporate Processes

Supply Chain Human Capital Corp. Reputation Acquisition Strategic Planning

Inventory Mgmt Real estate CRM Sales CRM Accting

Transactional Processing Retail Planning

Analytic and reporting processes

Corporate Reputation - Risk Management, Compliance, Marketing, IT and Data Governance Transformation Portfolio Transformation Corporate Data

Logistics Locations and Codes Associate

Item

Suppliers Customer

83 Adapted fromCopyright John 2013 by Data Ladley Blueprint

Comments from CIOs • On CIOs as strategic business partners • A small percentage of CIO’s have truly attained that status, despite many who claim they have. I would guess fewer than 10% of the CIO population achieves that goal. Perhaps we are expecting the CIO to wear too many hats. When they fail to effectively perform in all of those roles their time in position is limited, which might help explain why CIO longevity is so short (CIO = “Career Is Over”).

84 Copyright 2013 by Data Blueprint Enterprise Data Strategy Choices

Q3 Using data to create Q4 strategic opportunities Both (Cash Cow)

Only 1 is 10 organizations has a Innovation board approved data strategy! Q1 Q2 Keeping the doors open Increasing organizational (little or no proactive efficiencies/effectiveness data management)

Improve Operations

Copyright 2013 by Data Blueprint

Innovation • Innovation is the development of new customers value through solutions that meet new needs, inarticulate needs, or old customer and market needs in new ways. This is accomplished through different or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. • Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. • Innovation differs from improvement in that innovation refers to the notion of doing something different (Lat. innovare: "to change") rather than doing the same thing better.

86 Copyright 2013 by Data Blueprint Bills of Mortality by Captain John Graunt

87 Copyright 2013 by Data Blueprint

88 Bills of Mortality Copyright 2013 by Data Blueprint Where is it happening?

89 Mortality Geocoding Copyright 2013 by Data Blueprint

Plague Peak

("Whereas of the Plague")

When is it happening?

90 Copyright 2013 by Data Blueprint BlackBlack Rats Rats or orRattus Rattus Rattus Rattus

Why is it happening? Why is it happening?

91 Copyright 2013 by Data Blueprint

What will happen?

92 Copyright 2013 by Data Blueprint John Snow's 1854 Cholera Map of London

93 Copyright 2013 by Data Blueprint

International Chemical Company Engine Testing • $1billion (+) chemical company • Develops/manufactures additives enhancing the performance of oils and fuels ... • ... to enhance engine/ machine performance – Helps fuels burn cleaner – Engines run smoother – Machines last longer • Tens of thousands of tests annually – Test costs range up to $250,000!

94 Copyright 2013 by Data Blueprint Overview of Existing Data Management Process

1.Manual transfer of digital data 2.Manual file movement/duplication 3.Manual data manipulation 4.Disparate synonym reconciliation 5.Tribal knowledge requirements 6.Non-sustainable technology 95

Copyright 2013 by Data Blueprint

Data Integration Solution • Integrated the existing systems to easily search on and find similar or identical tests • Results: – Reduced expenses – Improved competitive edge and customer service – Time savings and improve operational capabilities • According to our client’s internal business case development, they expect to realize a $25 million gain each year thanks to this data integration

96 Copyright 2013 by Data Blueprint A Model Specifying Relationships Among Important Terms

Wisdom & knowledge are often used synonymously Intelligence Data

Information Use Data

Data Request Data Data

Fact Meaning Data Data

1. Each FACT combines with one or more MEANINGS. 2. Each specific FACT and MEANING combination is referred to as a DATUM. 3. An INFORMATION is one or more DATA that are returned in response to a specific REQUEST 4. INFORMATION REUSE is enabled when one FACT is combined with more than one MEANING. 5. INTELLIGENCE is INFORMATION associated with its USES. [Built on definition by Dan Appleton 1983]

97 Copyright 2013 by Data Blueprint

Process Less ROT Data Leverage

Technologies People • Permits organizations to better manage their sole non-depleteable, non- degrading, durable, strategic asset - data – within the organization, and – with organizational data exchange partners • Leverage – Obtained by implementation of data-centric technologies, processes, and human skill sets – Increased by elimination of data ROT (redundant, obsolete, or trivial) • The bigger the organization, the greater potential leverage exists • Treating data more asset-like simultaneously 1. lowers organizational IT costs and 2. increases organizational knowledge worker productivity

98 Copyright 2013 by Data Blueprint Niccolo Machiavelli (1469-1527)

He who doesn’t lay his foundations before hand, may by great abilities do so afterward ...... although with great trouble to the architect and danger to the building.

99 Copyright 2013 by Data Blueprint Machiavelli, Niccolo. The Prince. 19 Mar. 2004 http://pd.sparknotes.com/philosophy/prince

You cannot architect after implementation!

100 Copyright 2013 by Data Blueprint What is this?

• It is tall • It has a clutch • It was built in 1942 USS Midway • It is still in regular use! & Pancakes

101 Copyright 2013 by Data Blueprint

The Role of Engineering/Architecture in Rapid Development 360 hours or 15 days of continuous building

102 Copyright 2013 by Data Blueprint http://www.youtube.com/watch?v=Hdpf-MQM9vY&feature=player_embedded#! Data Architectures are Developed in Response to Organizational Needs

Organizational Needs

become instantiated and integrated into an Data/Information Architecture

authorizes and

! articulates specificsatisfy organizational needs ! !

! Informa(on)System) Requirements

103 Copyright 2013 by Data Blueprint

An organization's data architecture ... Software Software Software Package 1 Package 2 Package 3

Data Architecture

... maps between and across software packages Software Software Software Package 4 Package 5 Package 6

104 Copyright 2013 by Data Blueprint Comments from CIOs • Most CIO’s today are challenged with being “experts” on technology (infrastructure and application), business process, relationship management and data management). None are successful at all and most have a bent towards only one of those areas, depending upon where they began their career and the path they took to attain their CIO role.

105 Copyright 2013 by Data Blueprint

The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

106 Copyright 2013 by Data Blueprint Out of degree and intensity, grows the organizational "data challenge" Data 1. Complexity Challenge Trivial to complex

2. Intensity

Degree Intensity Complexity

107 Copyright 2013 by Data Blueprint

108 Copyright 2013 by Data Blueprint CIO's are generally unsuccessful at remaining data-focused • Question: – What is the hardest part of doing analysis? • Answer: – Not doing design! • Question: – What is the hardest part of a CIO's job? • Answer: – Remaining data focused! • Anything the CIO does that is not ... – ... applying organizational data assets to the implementation of organizational strategy ...... is a similar distraction

109 Copyright 2013 by Data Blueprint

Someone Notable Thinks DM is Important

110 excerpt from President Obama's 2012 State of the Union Address Copyright 2013 by Data Blueprint 58 Commonly Used Chief Officer Titles • Chief Accounting Officer, Chief Administrative Officer, , Chief Audit Officer, , , , , Chief Communications Officer, , , Chief Data Officer, , , Chief Human Resources Officer, Chief Information Officer, Chief Information Security Officer, , , Chief Immigration Officer, Chief Geospatial Information Officer, , Chief Leadership Officer, , Chief Legal Officer, , Chief Marketing Information Officer, , Chief Merchandising Officer, , , , Chief Procurement Officer, , Chief Research Information Officer, , Chief Science Officer, Chief Stores Officer, , , ,

111 Copyright 2013 by Data Blueprint

The "Chief Officer" Title • Chief – The head or leader of an organized body of people; the person highest in authority: the chief of police • Chief Financial Officer (CFO) – Individual possessing the knowledge, skills, and abilities to be both the final authority and decision-maker in organizational financial matters • Chief Risk Officer (CRO) – Individual possessing the knowledge, skills, and abilities makes decisions and implements risk management • Chief Medical Officer (CMO) – Responsible for organizational medical matters. The organization, and the public, has similar expectations for any of chief officer – especially after the Sarbanes-Oxley bill.

[dictionary.com]

112 Copyright 2013 by Data Blueprint Chief

113 Copyright 2013 by Data Blueprint

C-level

114 Copyright 2013 by Data Blueprint C OQRSPXE O

115 Copyright 2013 by Data Blueprint

58 Commonly Used Chief Officer Titles • Chief Accounting Officer, Chief Administrative Officer, Chief Analytics Officer, Chief Audit Officer, Chief Brand Officer, Chief Business Officer, Chief Channel Officer, Chief Commercial Officer, Chief Communications Officer, Chief Compliance Officer, Chief Creative Officer, Chief Data Officer, Chief Executive Officer, Chief Financial Officer, Chief Human Resources Officer, Chief Information Officer, Chief Information Security Officer, Chief Innovation Officer, Chief Investment Officer, Chief Immigration Officer, Chief Geospatial Information Officer, Chief Knowledge Officer, Chief Leadership Officer, Chief Learning Officer, Chief Legal Officer, Chief Marketing Officer, Chief Marketing Information Officer, Chief Medical Officer, Chief Merchandising Officer, Chief Networking Officer, Chief Operating Officer, Chief Process Officer, Chief Procurement Officer, Chief Product Officer, Chief Research Information Officer, Chief Risk Officer, Chief Science Officer, Chief Stores Officer, Chief Strategy Officer, Chief Technology Officer, Chief Visionary Officer, Chief Web Officer

116 Copyright 2013 by Data Blueprint The "Chief Officer" Title • Chief – The head or leader of an organized body of people; the person highest in authority: the chief of police • Chief Financial Officer (CFO) – Individual possessing the knowledge, skills, and abilities to be both the final authority and decision-maker in organizational financial matters • Chief Risk Officer (CRO) – Individual possessing the knowledge, skills, and abilities makes decisions and implements risk management • Chief Medical Officer (CMO) – Responsible for organizational medical matters. The organization, and the public, has similar expectations for any of chief officer – especially after the Sarbanes-Oxley bill.

[dictionary.com]

117 Copyright 2013 by Data Blueprint

Skills Desired of CIOs • Technical/business • Talent evaluation, competencies development, • Timely and effective goal-setting and execution performance management • Being collaborative Data • Strategic-value creation • Business knowledge • Creating revenue-generating • Creating a strategic vision opportunities • Inspire/leadership • Leadership responsibilities • Influence others through • Politically astute consensus building, • Business acumen storytelling, communications, • Know of funding flows and modeling critical levers • Networking, self-promotion, • Human capital management negotiating, empathy

118 Copyright 2013 by Data Blueprint CIO Concerns 2007

Data

1. People leadership 6. Compliance 2. Managing budgets 7. Resource management 3. Business alignment 8. Managing customers 4. Infrastructure refresh 9. Managing change 5. Security 10. Board politics

119 Copyright 2013 by Data Blueprint

Gartner 2008 CIO Business & Technology Priorities

Top 10 Business Priorities Top 10 Technology Priorities

Business process improvement Business intelligence applications

Attracting and retaining new customers Enterprise applications (ERP, CRM, etc.)

Creating innovative products and services Servers and storage technologies

Expanding into new markets or geographies Legacy modernization/enhancement

Reducing enterprise costs Technical infrastructure

Improving enterprise workforce effectiveness Security technologies Expanding current customer relationships Networking, voice and data Data Increasing the use of information/analytics Collaboration technologies

Targeting customers/markets more effectively Document management

Acquiring new companies/capabilities Service-oriented architecture SOA

120 Copyright 2013 by Data Blueprint Initiatives that will provide greatest value in FY 2008

1. Integrating systems and processes 2. Strategic planning/aligning IT and organizational goals 3. Project management improvements Data 4. Security and privacy measures

5. Lowering costs TechAmerica’s Nineteenth Annual Survey of Federal 6. Line of business initiatives Chief Information Officers February 2009 7. Staff development/retention/recruitment

121 Copyright 2013 by Data Blueprint

CIOs have visionary plans/CIO innovation is not limited to IT solutions

BI/Analytics 83.00%

Virtualization 76.00%

Governance/Risk/Compliance 71.00%

Customer Collaboration

68.00% Mobility Solutions

68.00% Self-service Portals

66.00% Applications Harmonization

64.00% Business Process Management

64.00% Service-oriented Architecture

61.00% Unified Communications 60.00% Data

122 Copyright 2013 by Data Blueprint 2010 Gartner Top 10 CIO Technology Priorities 1. Cloud computing 2. Virtualization 3. Mobile technologies 4. IT management 5. Business intelligence 6. Networking 7. Voice and data communications 8. Enterprise applications Data 9. Collaboration technologies 10.Infrastructure, and Web 2.0

123 Copyright 2013 by Data Blueprint

Global CIO: The Top 10 Issues For 2011 1. Seeing And Shaping The Future: Analytics 2. The Budget Trap Becomes The Competitive-Performance Gap: Doing more with less 3. The iPad Explosion: Mobile Strategies Data 4. Digitizing The Enterprise 5. Social Media: From Grudging Acceptance To Hair-On-Fire Evangelism 6. Customer Engagement Soars To Unprecedented Levels 7. Enabling The Massively Adaptable Data Center 8. The CIO As Chief Acceleration Officer 9. The Importance Of Being Global 10.Optimizing Opportunities With Optimized Systems http://www.informationweek.com/news/global-cio/interviews/229000361?pgno=1

124 Copyright 2013 by Data Blueprint CIO Roles

Data

125 Copyright 2013 by Data Blueprint

CIO's top 3 selection of business strategies in 2011 and projected for 2014

Data

126 Copyright 2013 by Data Blueprint CIO Infrastructure Focus

User Needs

Desktop Mobile Help Desk

Connectivity

Networking Telephony

Back End Sys.

Data Centers Cloud Support Virtualization

127 Copyright 2013 by Data Blueprint

Comments from CIOs • Gartner has been pontificating on the evolution of the CIO role towards CPO – Chief Process Officer. So now the CIO would own all technology, all processes and all data. No other organization is experiencing this evolution into other spheres of influence. The CHRO does HR work. The CFO does financial work. The COO does operations work. However, the CIO is expected to be the head of technology, the architect of all business processes and the intelligence behind leveraging data.

128 Copyright 2013 by Data Blueprint Top Five CIO Concerns 2005-2011

2005 2006 2007 2008 2009 2010 2011 Grant Thornton-State CIO Survey 1 1 1 1 1 1 6 Ameritech ITAA Annual CIO survey 1 1 1 1 1 1 6 CIO Magazine-State of the CIO 1 1 1 1 1 5 UK CIO Survey 1 1 Gartner Annual Priorities 1 1 1 1 1 1 1 7 Informationweek Global CIO top 10 issues 1 1 1 3 Accenture CIO Survey 1 1 KPMG & Harvey Nash 1 1 1 1 1 1 6 NASCIO Survey 1 1 1 1 1 1 1 7 Robert Half Technology 1 1 1 1 1 1 6 3 6 9 7 8 8 7 48

129 Copyright 2013 by Data Blueprint

Top Five CIO Concerns 2005-2011

0.800

0.600

0.400

0.200

2011 0.000 2010 2009 2008 2007 2006 Virtualization 2005 Social Media BI/analytics

IT governance Risk management IT/Information Security/Privacy Improving people/leadership Information Sharing Data center/IT efficiencies/Cloud IT workforce development Standardization/consolidation Strategic planning Acquisition/project mgt

Mobile applications/technologies Process/system integration

Implementing plans/initatives/achieving results

130 Copyright 2013 by Data Blueprint CIOs aren't ... • The ultimate authority on organizational informational assets • Able to devote the required time/attention to the management of organizational informational assets • Possessed of the requisite expertise to manage organizational informational assets • Situated to achieve success organizationally as long as they have a technology development perspective

131 Copyright 2013 by Data Blueprint

The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

132 Copyright 2013 by Data Blueprint Traditional Systems Life Cycle Challenges • Original business concept • As the consultant described it • As the customer explained it • How the project leader understood it • How the programmer wrote it • What the beta testers received • What operations installed • As accredited for operation • When it was delivered • How the project was documented • How the help desk supported it • How the customer was billed • After patches were applied • What the customer wanted

133 projectcartoon.comCopyright 2013 by Data Blueprint

System "Waterfall" model Requirements

Software Requirements

Preliminary Design

Detailed Design

Coding & De-Bugging

Integration & Testing

Operations & Maintenance

13446 Copyright 2013 by Data Blueprint the "real" problem Cumulative Effect of Errors in Systems Development Requirements Correct Erroneous specifications specifications

Erroneous Designs based on Design Correct designs designs erroneous specs

Implementations Implementations Correct Incorrect Implementation based on based on implementations implementations erroneous design erroneous specs

Testing Correct Correctable Uncorrectable Hidden functionality functionality errors errors

imperfect program products

135 (Adapted from [Mizuno 1983] as reproduced by Davis 1990.) Copyright 2013 by Data Blueprint

Relative Cost/Effort to Repair System in Relation to Development Stage

$20.00

$18.00 Nearly 50% of problems $16.00 are detected only after

$14.00 completion of

$12.00 acceptance tests $10.00

$8.00

$6.00 $4.00

$2.00

$0.00 Requirements Coding Unit Acceptance Test Test Design Maintenance

(Adapted from [Davis 1990.) 136 Copyright 2013 by Data Blueprint Evolving Data is Different than Creating New Systems Common Organizational Data Future State (and corresponding data needs requirements)

Evolve (Version +1)

Data evolution is separate from, external to, and precedes system development life cycle activities!

Systems Development Activities

Create

New Organizational Capabilities

137 Copyright 2013 by Data Blueprint

Individual SDLC efforts make increasing use of IA Increasing scope and depth of information architecture utility

Organized Organized Organized Results system metadata system metadata system metadata

Requests Requests Individual SDLC Effort

Requirements Requests Results Design Results

Implement

Individual SDLC Effort

Requirements

Design • Over time the: Implement – Number of requests increase Individual SDLC Effort – Utility of the results increase Requirements – Amount of metadata contributed by Design

new systems development increases Implement

138 Copyright 2013 by Data Blueprint Data is not a Project • Durable asset – An asset that has a usable life more than one year • Reasonable project deliverables – 90 day increments – Data evolution is measured in years • Data – Evolves - it is not created – Significantly more stable • Readymade data architectural components – Prerequisite to agile development • Only alternative is to create additional data siloes!

139 Copyright 2013 by Data Blueprint

The Case for the Chief Data Officer Recasting the C-Suite to Leverage your most Valuable Asset • A bit of history - Clinger Cohen Act - how's it going? • Motivations: - Poor data management performance to date ➡ (requires additional or different effort) - Recognition that data is not a project ➡ (requires a different approach) - Lack of domain expertise ➡ (requires different career preparation) • The role of a CDO - three necessary but insufficient prerequisites: 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting directly to the business

140 Copyright 2013 by Data Blueprint The Top Job • Finance • Operations • Sale/Marketing • HR • Risk Information • Technology/CIO – Align IT initiatives with business goals – Improving IT operations performance – Cultivating the IT/business partnership – Cost control/expense management – Implementing new systems – Leading change efforts Where does data go? – Driving business innovation – Redesigning business processes – Developing and refining business strategy – Negotiating with IT vendors – Managing IT crises – Developing market strategies & technologies – Security management – Studying trends to identify opportunities

141 ... data Copyright 2013 by Data Blueprint

Reporting Particulars 1. Report outside of IT and the current CIO altogether; 2. Report to the same organizational structure that the CFO and other "top" jobs report into; and 3. Focus on activities that are outside of (and more importantly) upstream from any system development lifecycle activities (SDLC).

142 Copyright 2013 by Data Blueprint CDO Reporting Top Job

Top Top Chief Top Finance Top InformationT Operations Data Job Marketing echnology Job Officer Job Job

Data Governance Organization

• There is enough work to justify the function • There is not much talent • The CDO provides significant input to the Top Information Technology Job

143 Copyright 2013 by Data Blueprint

Comments from CIOs • I think the need for a newly defined executive level role of data/information ownership is clear, and is distinct from the role of leading the IT function. However, if you propose changing the CIO’s title to something that is much more appropriate for the vast majority of CIO’s, like CTO, and reusing the CIO title for the new function you will meet with a firestorm of dissent. That dissent will not be in opposition to your core suggestion that each organization needs to establish this new function in the business. That need can be clearly articulated and proven. The dissent will be around moving today’s CIO in that direction, or, worse, stripping them of that “honorable” title. That will be a debate full of sound and fury but signifying nothing, other than distracting everyone from the core argument at hand - - the need for the creation of that role in the organization.

144 Copyright 2013 by Data Blueprint Reporting Particulars 1. Report outside of IT and the current CIO altogether; 2. Report to the same organizational structure that the CFO and other "top" jobs report into; and 3. Focus on activities that are outside of (and more importantly) upstream from any system development lifecycle activities (SDLC).

145 Copyright 2013 by Data Blueprint

Arguments for not reporting to IT 1. IT does not feel the true impact of poor DM practices – Data problems can and often do delay IT projects and this causes the organization to pay more for IT services than it should. However the impact to the business of unmanaged/unmanageable data is greater than on IT. The business is more likely to suffer publicly from data problems while the impact of IT-related data failures is less likely to become know outside of the organization. 2. IT does not that they do not know organizational business rules that govern data and its use. – IT's focus on technical knowledge leaves little resources and few cycles to devote to understanding how data is used by the business for various decisions. 3. IT does not own or control access to the subject matter expertise ultimately needed to implement business driven data centric data development practices. – Again, the focus on technical implementation details, keeps IT fully occupied with "how" concerns. There is very little time for understanding business oriented, "what" problems. 4. Only the business can competently assign values on various data uses. – Defining what “good enough” for data management practices cannot be done from an IT perspective. 5. Reporting to IT has been expected because IT owned the method. – Since IT specializes in methods, IT was assumed to be the function to also manage the data. Most non-IT folks have no idea that methods can be used to develop flexible, adaptable, and reusable data. 6. CIOs are already slammed. – Since CIOs are generally unsuccessful at remaining data-focused it is best to create a position solely dedicated to just that function.

146 Copyright 2013 by Data Blueprint Arguments for reporting to the business 1. Appropriate division of labor. • Since IT has its hand full with the how's of the systems, it is appropriate that the business take ownership of defining the organizational "what." 2. Reduction in organizational system requirements translations. • The current organizational cycle begins with the business defining system requirements to IT who codifies these and relates them back to the business for verification. 3. Encourages business to learn appropriate IT-derived methods. • Maintaining the requirements (the "whats") in the business will reduce translations and encourage broadly based, information systems- oriented thinking. 4. Better encourages data and architectural component reuse. • The longer-term focus of data is – at odds with IT development cycle – DM is a program not a project.

147 Copyright 2013 by Data Blueprint

New division of labor • Reporting to IT – Data Development – Database Operations Management • Shared with the business – Metadata Management – Data Security Management • Reporting to Business – Data Architecture Management – Reference & Master Data Management – Data Warehousing & BI Management – Document & Content Management – Data Quality Management – Data Governance

148 Copyright 2013 by Data Blueprint Separating the Wheat from the Chaff

149 Copyright 2013 by Data Blueprint

Separating the Wheat from the Chaff • Harvard Business School wisdom – 20% of your customers cause 80% of your problems – Eliminating those 20% (the problem customers) should increase profitability without any additional cost – The key question is how to identify the correct 20% – Very few try this strategy • Poor data management practices are costing organizations much money/time/effort • Data that is better organized increases in value • Pareto analysis dictates that 80% of organizational data is ROT – Redundant – Obsolete – Trivial • The question is the same - which data to eliminate?

150 Copyright 2013 by Data Blueprint What to do first? 1. Providing effective and efficient data management to the organization. • Understanding the current and future data needs of an enterprise and making that data effective and efficient in supporting business activities. 2. Separating the data into ROT and non-ROT. • 80% of organizational data is ROT: Redundant; Obsolete; or Trivial. Moving to reduce organizational data ROT significantly reduces the complexity of the organizational data management challenge. 3. Remaining data focused. • The TDJ maintains a sole focus on understanding, marshaling, and applying organizational data resources in support of business strategies. Laser like focus on data will help the organization to understand how data fuels various organizational processes and permits meaningful l enhancements to organizational data inventory. Any time the TDJ is paying attention to anything other than data support for strategy, they are diluting their own effectiveness. 4. Individuals possessing experience in this area will commend a premium as their specialized knowledge skills, and abilities will be in demand and experienced individuals will be in short supply

151 Copyright 2013 by Data Blueprint

CDO Survey: What key qualifications are necessary to be a successful CDO?

100.0%$

88.5% 83.2%

66.4% 62.8% 61.1% 59.3% 59.3% 55.8% 51.3% 50.0%$ 46.0% 44.3% 41.6% 38.9%

29.2%

0.0%$ Experience in Strong Expertise in Experience in Extensive Experience in Information Familiarity with Expertise in Familiarity with Familiarity in Familiarity with Expertise in End-to-end data operationalizing leadership and creating and defining industry leading major management Enterprise creating and process setting up and industry data business and IT warehousing Data C-suite/board deploying best business knowledge, information program life Metadata leading best of modeling, supporting models architecture, program Governance, communication practices and requirements for including management cycle experience Management class business semantic information including execution Data skills methodologies information expertise at the programs in key (business and and IT teams for modeling and analytics teams familiarity with knowledge and Stewardship and management intersection of business areas IT) and OMG information data modeling leading leadership Data Quality projects risk and other related to the standards management architectural domains industry standards such as TOGAF, FEA and/or Zachman

152 Copyright 2013 by Data Blueprint CDO Survey: What key traits are necessary to be a successful CDO?

100.0%$ 93.8% 100.0%$ 93.8% 85.8% 85.8% 82.3% 82.3% 82.3% 82.3% 74.3% 72.6% 74.3% 72.6% 66.4% 66.4% 54.9% 54.9% 50.0%$ 45.1% 50.0%$ 45.1% 38.9% 38.9% 29.2% 29.2%

0.0%$ 0.0%$ Possess a Outstanding Politically Leader and Team builder Understands Understand Can work with SME in Not too Entrepreneurial balancePossess ofa Outstandingrelationship Politicallysavvy Leadervisionary and Team builder Understandsprivacy, data Understandcore Canpure work IT and with requisiteSME in technicalNot too but Entrepreneurial technicalbalance skills, of buildingrelationship and savvy visionary security,privacy, dataand informationcore pureinformation IT and businessrequisite side nottechnical a technical but technicalbusiness skills, communicationbuilding and security,risk and informationdomains of managementinformation businessas well asside not anovice technical knowledgebusiness and communicationskills managementrisk risk,domains industry of managementspecialists to methodologiesas well as novice knowledgepeople skills and skills componentsmanagement of risk,knowledge, industry specialistsbridge the to methodologiesand practices people skills componentsdata of product/serviceknowledge, informationbridge the gap andneeded practices to data product/serviceand customer information gap neededeffectively to and customer effectivelyconnect businessconnect requirementsbusiness requirementsto IT to IT

153 Copyright 2013 by Data Blueprint

73% of CDO Functions Are Less that 1 Year Old

• Does your CDO have a staff?

• Does your CDO have a budget?

154 Copyright 2013 by Data Blueprint Chief Electrification Officer

Not all roles are needed always!

• Chief Electrification Officer – responsible for electrical generating and distribution systems. The title was used mainly in developed countries from the 1880s to 1940s during the electrification of industry, but is still used in some developing countries.

155 Copyright 2013 by Data Blueprint

Propositions • A rather serious gap exists in most organizations • The TDJ should be a business function • Any time the TDJ is paying attention to anything other than data support for strategy, they are diluting their own effectiveness • The TDJ is be a business leader who is the CTO's primary customer; requiring new, not-widely available KSAs • New titles are required for most existing CIOs • Most current CIOs should have their job titles changed to CTOs • The vast majority of organizations lack qualified personnel and/ or organizational focus on improving the process by which organizational strategy is informed by organizational data resources.

156 Copyright 2013 by Data Blueprint CDO Success 1. Dedicated solely to data asset leveraging 2. Unconstrained by an IT project mindset 3. Reporting to the business

157 Copyright 2013 by Data Blueprint

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