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December 06, 2007

Start small with monitoring, but always think big to achieve data quality goals

Posted by Tom Golden in: Data Quality > Best Practices ; Data Quality ; Data Quality > Management ; Data Quality > Monitoring > Metrics ; Data Quality > Monitoring ; Data Quality > Monitoring > Scorecards

Tom Golden
I attended my first parent-teacher meeting the other day for my five-year old daughter. Another one of those “life stage” events done and dusted – I remember dreading the annual meeting when I was a kid. The notion of my parents and my teacher comparing notes on my behaviour was too much to bear – somebody was eventually going to put two and two together and find out I was up to no good.

It all got me thinking about a recent blog post by my esteemed colleague Garry Moroney. His post Mobilizing the Data Quality Army outlined the level of effort, thought and planning that the US Department of Education is putting into data quality.

As Garry points out dealing with data quality in a large, disconnected organization such as the US schools system is not a trivial exercise. But if you were to only read that one post you might be overwhelmed by the potential size of the data quality task in front of you.

Continue reading "Start small with monitoring, but always think big to achieve data quality goals" »

December 05, 2007

Business and IT Collaboration is Essential for Data Quality

Posted by Ivan Chong in: Data Quality > Best Practices ; Data Quality ; Data Quality > Management ; Data Quality > Technology

Ivan Chong
A recent InformationWeek article* described the growth in IT employment across the US as a result of a shift in skills. Rather than focusing on pure IT proficiency, organizations are looking for talent with “a more hybrid mix of technology skills, along with an understanding of the business and its customers.”

IT departments are highly motivated to increase the level of collaboration with their counterparts in the business. Nowhere is this more critical than in the area of data quality and the trend is causing a shift in the way companies are looking to solve their data quality issues. First generation data quality tools had a natural focus on technology, instead of business. Here are some of the differences between technology focused data quality solutions and business-focused data quality solutions.

Tools vs. Process
Technology focused data quality solutions provide tools that automate data processing. Evidence of this type of focus can be seen in the way that vendors will tout the sophistication and type of their algorithms over and above their ability to support ongoing data quality management processes. While technology is extremely important, its relevance cannot eclipse the overall data quality management process. Even if your data quality tool can automate the correction of 95 percent of the data, if the remaining five percent cannot be managed properly, you will continue to suffer from poor data quality.

Continue reading "Business and IT Collaboration is Essential for Data Quality" »

June 28, 2007

Information Quality & Management Transformation

Posted by Larry English in: Data Quality > Benefits ; Data Quality > Best Practices ; Data Quality ; Data Quality > Management ; Data Quality > Monitoring

Larry English
I recently received an email from one of my early clients. After having worked in four different companies in four different industries, she came to a sad conclusion, writing:

“The thing that they all have in common is a desire to cut corners and deal with quality later. It takes a lot of energy to be the information quality cheerleader, and I find it discouraging and overwhelming at times. Keep writing your articles and books to encourage all the people like me who are dealing with these issues every day.” P. G.

The discovery that P. G. has experienced is, unfortunately, the norm—not the exception. There are two critical elements in this experience.

Continue reading "Information Quality & Management Transformation" »

June 22, 2007

Alice in “Qualityland"

Posted by Neil Gow in: Data Quality > Best Practices ; Data Quality ; Data Quality > Governance / Stewardship ; Data Quality > Management

Alice: Would you tell me, please, which way I ought to go from here?
The Cheshire Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cheshire Cat: Then it doesn't much matter which way you go
– Lewis Carroll, Alice's Adventures in Wonderland

Chris McCauley

When confronted with the problem of how to address their data quality issues many organisations are faced with a similar dilemma to that which confronted Alice during her travels in Wonderland; “I know that I need to do something, but I don’t know where to start”. Knowing where to start and, equally importantly, the size of the problem as well as where an organisation needs to go are critical factors in ensuring that their data quality journey takes them where they need to be at the price they are prepared to pay.

When planning their “journey” organisations need to address the issue of data quality holistically by considering each of the three DQ pillars in turn; firstly “People”, then “Ideas” and finally “Technology”. Many DQ initiatives have failed as the primary focus has been on delivering a technical solution. However without the right framework in place and operated by the right people this approach will never deliver the results that organisations need. Time and time again within the IT industry it has been proved that the pure application of technology will never solve business issues, as technology in itself will never win the “war”, it is always the right people with the right ideas who use the technology in the right way.

Continue reading "Alice in “Qualityland"" »

June 05, 2007

Mobilizing the Data Quality Army

Posted by Garry Moroney in: Data Quality > Best Practices ; Data Quality ; Data Quality > Governance / Stewardship ; Data Quality > Management

I’ve just been reading a US Department of Education briefing document on improving data quality in education performance data. The report stresses the impact that low quality data can have on measuring the success of education programs. It discusses for example the numerous data quality problems identified in the “No child left behind” program established in 2001. The problems are typical – non-standardized data definitions, inconsistent data from different sources, data entry errors, lack of timeliness.

The briefing document outlines a broad set of data quality guidelines to be implemented right across the education system in the US – at State level, in Local Education Agencies (LEAs) and in schools themselves. The three foundation stones of the data quality framework outlined are:

• suitable technical infrastructure,
• a comprehensive dictionary of data definitions
• staff ownership, organization and training

Continue reading "Mobilizing the Data Quality Army" »

February 19, 2007

If all master data was like customer data . . .

Posted by Garry Moroney in: Data Quality ; Data Quality > Management ; Data Quality > Technology ; Data Quality > Vertical Solutions

Garry Moroney
Managing the quality of customer data has its challenges: It is typically collected from a wide range of sources and channels and very often those responsible for entering or capturing data have no incentive to do so accurately. Even if they do much of it, including contact data can go out-of-date rapidly. Despite this most customer data has one major advantage over many other types of data which is agreed and accepted standards and reference data. While these standards do vary from country to country, they are at least universally understood and have an enormous impact on the approach and the effort required for managing data quality.

Because of these global standards and references, there is general agreement on what a complete, valid and correctly formatted address should look like - likewise person or business name, telephone number, date of birth, email address etc. So this means that if I am sharing my customer data with my business partners at least we have a common view of what high quality data should look like and the checks we need to make to assess the quality levels.

Another huge benefit is that third party service providers and technology vendors also understand the requirements and standards by which to measure and improve customer data and they know that these requirements are largely the same for all vendors. As a result large numbers of service bureaux and technology vendors are able to offer well developed, generic, out-of-the-box products and services to tackle customer data quality issues. These can deliver a lot of value with minimal or no customization and the effort to acquire and implement these solutions is small.

Continue reading "If all master data was like customer data . . ." »

February 02, 2007

Valuing Data Quality

Posted by Garry Moroney in: Data Quality > Benefits ; Data Quality > Best Practices ; Data Quality ; Data Quality > Management

Garry Moroney
Determining the aggregated return on investment for a data quality management initiative is notoriously difficult. Typically a minimum or partial ROI can be estimated by reference to the impact of low quality data on one or two key projects or processes. For example in a CRM project data quality ROI can be tied to reductions in customer contact failures and increased sales due to high quality segmentation. But given that the same set of master data will be used more than once in most organizations (i.e. customer master data will also be used in the billing system, the supply chain system and so on) and will add value (or destroy value!) in all of these processes, basing your ROI calculations on a single system or process will always underestimate the true returns.

For an organization trying to estimate the total returns across the enterprise from a data quality initiative, there are two difficult questions that must be addressed:

• How valuable is this dataset to the enterprise - assuming 100% data quality?
• How does its value decrease as quality erodes?

While these questions might at first seem unanswerable, it is worth noting that these are not unusual questions for a business to ask. In fact businesses need to be able to answer questions of worth and depreciation for all their tangible assets - property, stock etc.

Unfortunately data is one of those intangible assets where normal valuation approaches like recorded cost or replacement value are ineffective. But there are other intangible assets such as IPR, work-in-progress, customer and partner relationships (good will) where significant research has been done to develop effective valuation methodologies. It just might be possible to leverage these methodologies to value your data. For example, the value of customer data is directly related to the value of the customers themselves and so "customer lifetime value" methodologies should be applicable in estimating the value of customer data and the extent to which this value varies with data quality.

Have any of you out there attempted to put a real value on your company data in this way? Perhaps you'd be willing to share your experiences with us.

For more information on building a business case for data quality and calculating potential return on investment see the Informatica white papers: Data Quality Profiling Calculating ROI for Data Migration and Data Integration Projects
and The Data Quality Business Case—Projecting Return on Investment.

December 19, 2006

Information Quality and Accountability

Posted by Larry English in: Data Quality ; Data Quality > Governance / Stewardship ; Data Quality > Management ; Data Quality > Technology

Larry English
All he wanted for Christmas was anything but what he got. Jeffrey Skilling, former Enron CEO moved to his new residence at the Federal Correctional Institution in Waseca, Minnesota, where his sentence calls for him to live for the next 24 years for his role in fraud, conspiracy, insider trading and other crimes leading to the collapse of Enron. These crimes led to the loss of thousands of jobs, more than $60 billion in company stock and more than $2 billion in employee pension plans.

But Mr. Skilling will have a new job as well. He will probably work as a food service helper, painter or plumber. While this is not the cush job he had as CEO at Enron where he earned $151.7 million over the three years during the time he perpetuated his fraud, he will get from 14 to 40 cents per hour. At the top pay, Skilling could earn $832 per year. At that rate it would take 74.5 million years to pay back the stock and pension losses he foisted on the stakeholders.

So what is the point here?

Continue reading "Information Quality and Accountability" »

December 08, 2006

Business-Focused Data Quality

Posted by Garry Moroney in: Data Quality ; Data Quality > Management

Garry Moroney
It’s coming up to the end of my first year as Head of Informatica’s Data Quality Division and what a year it’s been. Data Quality has long been an obsession of mine – long before Informatica acquired the data quality software company I headed up, Similarity Systems, and even before my colleagues and I founded Similarity six years earlier.

We set up Similarity Systems in 2000 because of our absolute belief that data quality was on the cusp of making a breakthrough as one of the critical performance drivers for large businesses and organizations everywhere.

Over the years since then we have seen data quality move rapidly up the agenda. Data was once the sole preserve of IT – but today boardroom executives already have found reason to talk about and care about data and data quality – Good data quality can be the foundation for success, while poor data quality is a root cause of failure in many of the key initiatives for today’s businesses and government organizations. These executives know customer service is a data quality issue, compliance is a data quality issue, supply chain automation is a data quality issue … I could go on, but there will lots of time for that later.

My goal in writing this blog is to share views and experience with others who are passionate about data quality. I see it as a forum for widening understanding of the enormous business value that can be generated through active, effective data quality management.

My days revolve around meeting with data quality customers, meeting with partners and working with our own product development and implementation specialists. Through this blog I hope to share some of the insights and experience garnered from this day-to-day interaction with these groups. And hopefully my conversations with these groups will be influenced by the feedback I receive from you through this blog.

I have set myself only two guidelines. I’ll be aiming to stick to unerringly to them:
• Keep it short (because I’m busy and you probably are too)
• Keep it business focused (because data quality is a business problem opportunity)

Until next time…