Rethinking the Essence of a Critically Lacking Business ... Peter Aiken TDJ - Toronto.pdf · Business process improvement Business intelligence applications Attracting and retaining

The Case for the Top Data Job

Rethinking the Essence of a Critically Lacking Business

Function

- datablueprint.com 6/18/2012 © Copyright this and previous years by Data Blueprint - all rights reserved!

Peter [email protected] +1 804 382 5957

1

Data


Peter Aiken• Full time in information technology since 1981• IT engineering research and project background• University teaching experience since 1979• Seven books and dozens of articles• Research Areas

– reengineering, data reverse engineering, software requirements engineering, information engineering, human-computer interaction, systems integration/systems engineering, strategic planning, and DSS/BI

• Director– George Mason University/Hypermedia Laboratory (1989-1993)

• DoD Computer Scientist– Reverse Engineering Program Manager/Office of the Chief Information Officer (1992-1997)

• Visiting Scientist– Software Engineering Institute/Carnegie Mellon University (2001-2002)

• Published Papers– Communications of the ACM, IBM Systems Journal, InformationWEEK, Information & Management, Information

Resources Management Journal, Hypermedia, Information Systems Management, Journal of Computer Information Systems and IEEE Computer & Software

• DAMA International President (http://dama.org)

– 2001 DAMA International Individual Achievement Award (with Dr. E. F. "Ted" Codd)– 2005 DAMA Community Award

• Founding Advisor/International Association for Information and Data Quality (http://iaidq.org)

• Founding Advisor/Meta-data Professionals Organization (http://metadataprofessional.org)

• Founding Director Data Blueprint 19992


Someone Notable Thinks DM is Important

3

excerpt from President Obama's 2012 State of the Union Address


Organizations Surveyed

4

• Results from more than 500 organizations

• 32% government

• Appropriate public company representation

• Enough data to demonstrate European organization DM practices are generally more mature

Local Government4%

State Government Agencies17%

Federal Government11%

Public Companies 58%

International Organizations10%

• Approximately, 10% percent of organizations achieve parity and (potential positive returns) on their DM investments.

• Only 30% of DM investments achieve tangible returns at all.• Seventy percent of organizations have very small or no tangible

return on their DM investments. - datablueprint.com 6/18/2012 © Copyright this and previous years by Data Blueprint - all rights reserved!

Largely Ineffective

Investments

5

Investment <= Return10%

Investment > Return20%

Return ≈ 070%


58 Commonly Used Chief Officer Titles

6

• 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


The "Chief Officer" Title

7

• 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]

- datablueprint.com 6/18/2012 © Copyright this and previous years by Data Blueprint - all rights reserved!8

• A new emphasis on the data • Data demand is increasing• The amount of data is

increasing year over year• Atmosphere of heightened

public and corporate sensitivity to security, privacy, and compliance

• New initiatives within the organization (BI, SOA, Dim Data marts)

• Maintain a competitive advantage and profitability by leveraging information as an asset

Driver: Information Overload


Data InflationUnit Size What it means

Bit (b) 1 or 0 Short for “binary digit”, after the binary code (1 or 0) computers use to store and process data

Byte (B) 8 bits Enough information to create an English letter or number in computer code. It is the basic unit of computing

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

Megabyte (MB)

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

Gigabyte (GB)

1,000MB; 230 bytes From “giant” in Greek. A two-hour film can be compressed into 1-2GB

Terabyte (TB) 1,000GB; 240 bytes From “monster” in Greek. All the catalogued books in America’s Library of Congress total 15TB

Petabyte (PB) 1,000TB; 250 bytes All letters delivered by America’s postal service this year will amount to around 5PB. Google processes around 1PB every hour

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

Zettabyte (ZB)

1,000EB; 270 bytes The total amount of information in existence this year is forecast to be around 1.2ZB

Yottabyte (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

9


5% Sales Increase Versus Data Volume

10

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

Sales Data Volume


A likely state of your data

Very

Silo

’ed or

conf

lictin

g data

sour

ces

Multiple Data Sources

Inconsistent data

definitions of

common terms

IT are data

owners Lots of

Data….Minimum

Informatio

n

Inconsistent Data Quality

Difficult to report and mine against

Redundancy

Multiple changes to source system


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 silos12


Payroll Application(3rd GL)

Payroll Data(database)

R& D Applications(researcher supported, no documentation)

R & DData(raw)

Mfg. Data(home grown

database) Mfg. Applications(contractor supported)

FinanceData

(indexed)

Finance Application(3rd GL, batch system, no source)

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

Marketing Data(external database)

Personnel Data(database)

Personnel App.(20 years old,

un-normalized data)

13

Typical System Evolution


Data Processing Manager

14


Chief Information Officer

15

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


CIO average tenure ...

17

... and reporting relationships have remained stable for five years


Qualifications

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

18

Data


Skills Desired of CIOs• Technical/business

competencies • Timely and effective

execution• Being collaborative• Business knowledge• Creating a strategic vision• Inspire/leadership

responsibilities• Politically astute• Business acumen• Know of funding flows and

critical levers • Human capital management

• Talent evaluation, development, goal-setting and performance management

• Strategic-value creation• Creating revenue-

generating opportunities • Leadership• Influence others through

consensus building, storytelling, communications, modeling

• Networking, self-promotion, negotiating, empathy

19

Data


CIO Roles

20

Data


CIO Business & Technology Priorities

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Gartner 2008 Business 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

Increasing the use of information/analytics Collaboration technologies

Targeting customers/markets more effectively Document management

Acquiring new companies/capabilities Service-oriented architecture SOA

Data


CIO Concerns 2007

1. People leadership2. Managing budgets3. Business alignment4. Infrastructure refresh5. Security6. Compliance7. Resource management8. Managing customers9. Managing change10. Board politics

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Data

1. Integrating systems and processes2. Strategic planning/aligning IT and organizational goals3. Project management improvements4. Security and privacy measures5. Lowering costs6. Line of business initiatives7. Staff development/retention/recruitment - datablueprint.com 6/18/2012 © Copyright this and previous years by Data Blueprint - all rights reserved!

Initiatives that will provide greatest value in FY 2008

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TechAmerica’s Nineteenth Annual Survey of Federal Chief Information Officers February 2009

Data

83.00%

76.00%

71.00%

68.00%

68.00%

66.00%

64.00%

64.00%

61.00%

60.00%

BI/Analytics

Virtualization

Governance/Risk/Compliance

Customer Collaboration

Mobility Solutions

Self-service Portals

Applications Harmonization

Business Process Management

Service-oriented Architecture

Unified Communications


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

24

Data


2010 Gartner Top 10 CIO Technology Priorities

1. Cloud computing2. Virtualization3. Mobile technologies4. IT management5. Business intelligence6. Networking7. Voice and data communications8. Enterprise applications9. Collaboration technologies10. Infrastructure, and Web 2.0

25

Data


Global CIO: The Top 10 Issues For 20111. Seeing And Shaping The Future: Analytics2. The Budget Trap Becomes The Competitive-

Performance Gap: Doing more with less3. The iPad Explosion: Mobile Strategies4. Digitizing The Enterprise5. Social Media: From Grudging Acceptance To Hair-On-

Fire Evangelism6. Customer Engagement Soars To Unprecedented Levels7. Enabling The Massively Adaptable Data Center8. The CIO As Chief Acceleration Officer9. The Importance Of Being Global10. Optimizing Opportunities With Optimized Systems

http://www.informationweek.com/news/global-cio/interviews/229000361?pgno=1

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Data


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

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Data

2005 2006 2007 2008 2009 2010 2011 0.000

0.200

0.400

0.600

0.800

IT/Infor

mation S

ecurity

/Privacy

Virtualiz

ation

Data ce

nter/IT

effici

encie

s/Clou

d

Social M

edia

Impro

ving p

eople

/leade

rship

BI/ana

lytics

Standa

rdizat

ion/co

nsolida

tion

IT workfor

ce de

velop

ment

IT gover

nance

Risk m

anag

emen

t

Mobile

applic

ations/

techn

ologie

s

Inform

ation S

harin

g

Imple

menting

plans/

initativ

es/ach

ieving

resul

ts

Acquisit

ion/pr

oject m

gt

Process

/syste

m integ

ration

Strateg

ic plan

ning


Top Five Concerns

28

Data


We ask much of our CIOs

29

It truly is a delicate balancing act!


CFO Necessary Prerequisites/Qualifications

• CPA• CMA• Masters of Accountancy• Other recognized degrees/certifications

• These are necessary but insufficient prerequisites/qualifications

30


With respect to CIOs• CIOs are not adopting data-centric

methods• Responsible for a great deal more

than just the organizational information

• Become expert in a vast array of skills in a rapidly changing environment

• A specific set of knowledge skills and abilities is required to manage organizational data as an asset

• These abilities are missing in most organizations.

31


Comment 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.

32


Data Data

Data

Information

Fact Meaning

Request

A Model Specifying Relationships Among Important Terms

[Built on definition by Dan Appleton 1983]

Intelligence

Use

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.

Wisdom & knowledge are often used synonymously

Data

Data

Data Data

33


StandardData

Interrelationships among data management processes

Data Program Coordination

OrganizationalData Integration

DataStewardship

Data SupportOperations

Data Asset Use

Organizational Strategies

Goals

IntegratedModels

BusinessData

Business Value

Application Models & Designs

Feedback

Implementation

Direction

DataDevelopment

Guidance

34

Assign responsibilities for data.


Manage data coherently.

Share data across boundaries.

Engineer data delivery systems.

Maintain data availability.

11


Organizational Data Integration

Data Stewardship

Data Development

Data Support Operations

Data Management

35


Our practices are ad hoc and dependent upon "heroes" and heroic efforts

Initial(1)

Repeatable(2) We have experience and have

the ability to implement disciplined processes

Capability Maturity Model Levels

Defined(3)

We have experience that we have standardized so that all in the organization

can follow it

Managed(4)

We manage our processes so that the whole organization can follow

our standard guidance

Optimizing(5)

We have a process for improving our

capabilities

One concept for process improvement, others include:

• Norton Stage Theory• TQM• TQdM• TDQM• ISO 9000

and focus on understanding current processes and determining where to make improvements.


Assessment Components

Data Management Practice AreasData Management Practice AreasData program coordination

DM is practiced as a coherent and coordinated set of activities

Organizational data integration

Delivery of data is support of organizational objectives – the currency of DM

Data stewardship Designating specific individuals caretakers for certain data

Data development

Efficient delivery of data via appropriate channels

Data support Ensuring reliable access to data

4

Capability Maturity Model Levels

Examples of practice maturity

1 – Initial Our DM practices are ad hoc and dependent upon "heroes" and heroic efforts

2 - Repeatable We have DM experience and have the ability to implement disciplined processes

3 - Documented We have standardized DM practices so that all in the organization can perform it with uniform quality

4 - Managed We manage our DM processes so that the whole organization can follow our standard DM guidance

5 - Optimizing We have a process for improving our DM capabilities

37


Development guidance

Data Adminstration

Support systems

Asset recovery capability

Development training

0 1 2 3 4 5Nokia Industry Competition All Respondents

Data Management Practices Assessment

Challenge

Challenge

Challenge

Client

Result 1

Result 2

Result 3

Result 4

Result 5

38


Organizational Data Integration

Data Stewardship

Data Development

Data Support Operations


Data Management Practices Measurement (DMPA)

39

Focus: Implementation

and Access

Focus: Guidance and

Facilitation

Optimizing (V)

Managed (IV)

Documented (III)

Repeatable (II)

Initial (I)

• CMU's Software Engineering Institute (SEI) Collaboration• Results from hundreds organizations in

various industries including:– Public Companies – State Government Agencies– Federal Government– International Organizations• Defined industry standard• Steps toward defining data

management "state of the practice"


Comparison of DM Maturity 2007-2012

40

0

1

2

3

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

2007 Maturity Levels 2012 Maturity Levels


Designing for Evolution is Different than Creating New Systems

41

Common Organizational Data (and corresponding data needs requirements)

New Organizational

Capabilities

Systems Development

Activities

Create

Evolve

Future State

(Version +1)

Data Architectures are Developed in Response to Organizational Needs

! ! ! !


Organizational Needs

become instantiated and integrated into an Data/Information

Architecture

Informa(on)System)Requirements

authorizes and articulates sa

tisfy

spe

cific

org

aniz

atio

nal n

eeds

Results

Increasing scope and depth of information architecture utility

Individual SDLC Effort


Individual SDLC efforts make increasing use from IA

• Over time the:– Number of requests increase– Utility of the results increase– Amount of metadata contributed by

new systems development increases

43

Requirements

Design

Implement

Requests Results


Requirements

Design

Implement

Requests

Results


Requirements

Design

Implement

Requests

Organized system

metadata

Organized system

metadata

Organized system

metadata


Arguments for not reporting to IT1. 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. 44


Arguments for reporting to the business1. 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.

45


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 distraction46


Enterprise Data Strategy Choices

47

Q1Keeping the doors open

(little or no proactive data management)

Q2Increasing

organizational efficiencies/

effectiveness

Q3Using data to

create strategic

opportunities

Q4Both

Improve Operations

Inno

vatio

n

The Top Job• Finance• Operations• Sale/Marketing• HR• Risk• 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– 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


Where does data go?

48... data

Information

Top Operations Job


TDJ Reporting

49

Top Job

Top Finance Job

Top Technology Job

Top Marketing Job

TopData Job

• There is enough work to justify the function• There is not much talent

Data Governance Organization


Reporting Particulars1. 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).

50

t

t

Strategy

Goals/Objectives

Systems/Applications

Network/Infrastructure

Data/Information


t

• In support of strategy, the organization develops specific goals/objectives

• The goals/objectives drive the development of specific systems/applications

• Development of systems/applications leads to network/infrastructure requirements

• Data/information are typically considered after the systems/applications and network/infrastructure have been articulated

• Problems with this approach:– This ensures that data is formed

around the application and not the organizational information requirements

– Process are narrowly formed around applications

– Very little data reuse is possible

Application-Centric Development Flow

Original articulation from Doug Bagley @ Walmart

t

t

Strategy

Goals/Objectives

Data/Information

Network/Infrastructure

Systems/Applications


t

• In support of strategy, the organization develops specific goals/objectives

• The goals/objectives drive the development of specific data/information assets with an eye to organization-wide usage

• Network/infrastructure components are developed to support organization-wide use of data

• Development of systems/applications is derived from the data/network architecture

• Advantages of this approach:– Data/information assets are

developed from an organization-wide perspective

– Systems support organizational data/information needs and compliment organizational process flows

– Data/information reuse is maximized

Data-Centric Development Flow

Original articulation from Doug Bagley @ Walmart

Advanced Data Practices• Cloud• MDM• Mining• Analytics• Warehousing• SOA


• 5 Data Management Practices Areas– Data Program

Management– Organizational Data

Integration– Data Stewardship– Data Development– Data Support

Operations• Are necessary but

insufficient prerequisites to organizational data leveraging applications including:

– Cloud– MDM– Data Quality– Warehousing– Services

Hierarchy of Data Management PracticesData Management: Basics & Self Actualizing (after Maslow)

Basic Data Management Practices– Data Program Management– Organizational Data Integration– Data Stewardship– Data Development– Data Support Operations


New division of labor

54

Business IT

Data Governance

Data Architecture Management

Data Quality Management

Document & Content Management

Data Warehousing/BI/Analytics

Reference & Master Data Management

Database Operations Management

Data Development

Metadata Management Metadata Operations Management

Data Security Specification Data Security Management


Proposition

1. A rather serious gap exists in most organizations

2. The TDJ should be a business function

3. Any time the TDJ is paying attention to anything other than data supportfor strategy, they are diluting their own effectiveness

4. The TDJ is be a business leader who is the CTO's primary customer; requiring new, not-widely available KSAs

55


Final Observation

• Fred Brooks Jr.'s argumentthat 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."

56


Experience PebblesContact Information:

Peter Aiken, Ph.D.

Department of Information Systems School of BusinessVirginia Commonwealth UniversitySnead Hall Room B4217301 West Main StreetRichmond, Virginia 23284-4000http://business.vcu.edu

Data Blueprint 10124C West Broad StreetGlen Allen VA 23060+1.804.521.4056http://datablueprint.com

office: +1.804.883.7594cell: +1.804.382.5957

e-mail: [email protected]: http://peteraiken.net

57

http

://tw

itter

.com

/pai

ken

Documents

Rethinking the Essence of a Critically Lacking Business ... Peter Aiken TDJ - Toronto.pdf · Business process improvement Business intelligence applications Attracting and retaining