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August 6, 2009

Data governance: It's everybody's business

Governance is defined as the act, process or power of governing. Stated a different way, governance is the system or method of management. For without governance, there would be chaos. Do you think there was appropriate governance on Wall Street?

Corporate governance is a term that refers broadly to the rules, processes or laws by which businesses are operated, regulated and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients and government regulations.

Well-defined and enforced corporate governance provides a structure that, at least in theory, works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws. To that end, organizations have been formed at the regional, national, and global levels.

Similar to corporate governance, data governance is a term that refers broadly to rules, processes or practices by which data is collected, shared, utilized and updated across the enterprise. Similar to corporate governance, stakeholders and custodians for the data assets need to be identified along with well-defined policies around the integrity and up-keep of the data assets.

If every decision and every operation relies on good quality data, is it safe to assume that the quality of that data is the best it can be? Who manages that data? Who has ownership of ensuring the quality of the underlying data that corporate systems rely on and every employee relies on for analysis and operation? Is it the role of IT? Not in my opinion...

The integrity of the data (completeness, accuracy, validity, reliability, fit for use) needs to be clearly understood by all - and accountability needs to lie with every employee within the organization, not just the data stewards or the data custodians. This is where I differ from most of the industry analysts.

You see, just as it is up to every corporate citizen to uphold the corporation's ethical standards, best practices, and laws, it is up to every member of the corporation's data community - those who generate it, refine it, analyze it, and use it - to adhere to best practices and data governance rules.

Today, business practices across departments encourage poor data quality practices at the point of capture and entry. For example:

1. CSRs are measured on the speed and quantity of calls answered, but not the quality of the information captured.
2. Sales reps are measured on their quota achievement and there is no accountability in terms of what they enter into SFA systems that cause product shipment and billing invoice delays.
3. POS clerks, in retail or hospitality are incented to sign-up customers for royalty cards, regardless of whether they were an existing customer.

Such practices lie at the root of why many companies bleed cash and lose face with their customers and often are not even aware of such problems.

Data Governance and accountability needs to lie with every employee and business partner and not just one or two individuals who would otherwise end up fighting a losing battle and be set up for failure.

I believe data governance is everybody's business. How about you?

Cross-posted at http://ebs.pbbiblogs.com

Posted by PBBI at 1:15 PM | Comments (0)

August 5, 2009

Is data quality old news?

by Kit Hamilton

There's an old saying: "You know its time to get out of the market when the shoeshine guy is giving out stock tips." So, does all the chatter in the press and around the blogosphere about data quality mean that its issues have already been recognized and addressed by most businesses today?

The answer is a resounding "no". Data quality is still a substantial issue for businesses large and small; and, most businesses don't even have their arms around how big an issue it really is.

A new Information Difference Research Study, The State of Data Quality Today, released in July provides a stark picture of the data quality dilemma still faced today. This study, sponsored by Pitney Bowes Business Insight and Silver Creek Systems, found, in a survey of 193 businesses across Europe and North America, that:

- Fully one-third of respondents rate their data quality as "poor at best" - and only 4% indicated that it was "excellent"
- 42% have made no effort to measure or monitor the quality of their data
- 63% have no idea what poor data quality may be costing them

The study also includes insights into the types of data challenges companies face; the reasons they still struggle to get the funding and focus on data quality; and the types of initiatives companies do have underway to improve their data.

It's an illuminating read - and clearly data quality is not old news. Download the entire study today,

Posted by PBBI at 3:30 PM | Comments (4)