Boston Data, Technology & Analytics Blog by Mark Goloboy

MIT Information Quality Symposium Day 2

With Day 2 of the MIT IQIS complete, I thought it would be good to write up another summary. I was very impressed with the quality of speakers and their dedication to the field of Information Quality. The work shows a lot of innovative thinking and pride. (I’ll add in links and update later today)

Robert Grossman – Information Quality in the Cloud

Bob is part of the Open Cloud Consortium and passionate about the topic. He presented everything you need to know to understand where Cloud Computing is today, where it’s going next (based on open debate among dueling standards boards), and how it affects Information Quality discussions. He has a unique ability to take very complex topics and break them down into simple conversations.

The most interesting part for me was defining Public, Community and Private Clouds, which I couldn’t have described before this talk. I also appreciated his comment that Cloud is the only way to analyze 100TB of data, and that the alternative is to merely entomb it.

Delphine Clement - Cost of Non Quality Data

Delphine is from HP in France and discussed how they have approached their KQI – Key Quality Indicators. I like that KQIs mirror KPIs but that Information Quality is metadata reporting rather than business metrics so it’s separate. Delphine also presented a methodology for measuring direct vs. indirect cost savings from Data Quality initiatives. She has clearly spent a lot of time working on this approach and is doing a great job. I really enjoyed this presentation.

Lyn Robison - Diagnosing IT’s Impact on the Business

Lyn, from The Burton Group has a theory on how to measure data quality from an IT perspective, but I thought it was very pie in the sky. There were lots of questions about the politics of such an effort, and I don’t think the approach was practical. For instance, if your measured data quality metrics turn up as poor, the IT organization will blame the business. There’s no way this could work politically.

I liked that Lyn tried to compare the business people’s perception of Data Maturity vs. the IT perception, but how do you align IT perception and Business perception? Someone also asked, should IT be measured on poor data quality? The answer: Not if the Business owns the data.

Steve Sarsfield - Using Data Quality Scores to Sell IQ Value

Steve echoed others who encouraged Information Quality progress by “Leveraging a Crisis” to build momentum. He also asked us to present the “Do Nothing” approach, i.e. present to our management what would happen if they ignored the problem. Steve’s scoring method was based on the Trillium TS Insight product, but appeared to be a practical way to measure Data Quality. I think some of this can be done easily with or without Trillium, but I appreciated how the tool can manage the measurements over time.

Marillo Boccia – Data Quality in the Media Industry

Marillo is the Director of Database Marketing at Grupo Abril, the largest publisher in the Southern Hemisphere. He presented a project (done with the help of service provider Assesso) where his team personalized magazine ads for Banc Itau to 1.2 Million subscribers. Cool stuff. They merged their subscriber database with the bank’s and did a massive customer data cleanup to ensure very high data quality. They amazed their customers in the process.

Dan Defend and Aparna Vani - Data Quality Challenges for Yahoo’s Massive Data Environment

Dan and Aparna presented the Data Quality and Analytics sides respectively. They monitor website interaction and uncover trending and outage information by analyzing a constant flow of clickstream data. Their group deals iwth duplication challenges, security issues, and the need to report outage alerts instantly. Their work was also driven by past MIT IQIS conferences, and they presented their practical approach to establishing a central data quality process and framework.

MIT Information Quality Industry Symposium Day 1

I’m just settling in for Day 2 of the MIT IQIS 2009 and thought I’d throw out some thoughts for a couple of future posts I’m drafting. Here are the quick recaps from yesterday. 

Danette McGilvray - Ten Steps to Data and Trusted Information

A great primer on how to manage any Data  Quality project. Her 10 steps made a lot of sense. Not all of the methodology would be used for any given project, but still it worked for me. I also won her book, “Executing Data Quality Projects” in the drawing at the end of the class.

Bill Inmon - DW2.0 and Unstructured Data

After 10+ years in Data Warehousing I finally got to see Bill Inmon speak. Bill is the rockstar of the DW world. He’s regarded as the Father of Data Warehousing and treated as royalty at a conference like this. His new stuff was all about contextual ETL. Sounded interesting, but I believe there are others working on the same thing.

Keynote: Ronald Bechtold - Transforming the Army with High

Ronald is the Chief Data Officer at the Army. Cool title. Not what you’re picturing. He is a passionate CIO type who has a huge challenge. Definitely some words of wisdom in there. “Focus on solving problems,” rather than tools, technology or data. Good stuff!

Joe Bugajski - MDM Improves Information Quality to Deliver Value

Joe had some great examples where Data Quality actually led to increased revenue. Imagine that! Value from Data work. I think that’s what we’re all striving for. Joe is a big personality who speaks well, so this one was entertaining.

Mark Goloboy (that’s right, me) - CRM Data Quality for Sales and Marketing

After a bit of nerves, I found my groove and thought the presentation went really well. Some good questions about where my company started with Data Governance - it’s a very new ffocus or us. I also got to push back on some industry experts when asked why we weren’t focusing on MDM to start. Plus, Bill Inmon attended.

Martin Boyd - Product Data Quality Product from Silver Creek

More contextual analysis. Seemed to be done in a very smart way. The software was functional at big clients, and they had figured out how to solve some complex issues around improving poor product data. If they had the same thing for Customers, it would be a more interesting product. More development or a merger are needed here.

Demographic vs. Firmagraphic Appends

Note: This is a continuation of the B2B vs. B2C series. I will also be presenting some related material at the MIT Information Quality Symposium next week (MITIQS 7/15-7/17 2009). If you are attending, please introduce yourself.

Data Acquisition is an important part of any data driven Sales and Marketing program. I associate the append process with Marketing since that’s where these programs are generally funded, but the clear beneficiary of the work is the Sales organization. And of course, it takes a partnership between Technology, Sales and Marketing to make data acquisition programs successful. A data file on a shared drive or standalone table in a database has little or no value. The data has to be integrated with customer and prospect lists and loaded into the CRM and SFA systems and / or presented through your BI/DW tools to show ROI. Sorry… I got on a roll with the acronyms. They’re defined at the bottom. I’m in a Data Governance role now. Acronyms and definitions are my life (in a scary, scary way).

This raises the topics of Data Cleansing, Address Standardization, Merging & Matching, Deduplication, Archiving, etc. I’ll save those topics for future posts, but would encourage questions in the comments section. It’s fair to say that without a Data Quality focus you won’t achieve the optimal results for either Demographic or Firmagraphic Data Acquisition program.

Demographic Appends

Demographic data is generally used by Marketers and Analysts to determine the best way to target a consumer base. Starting with a universe of customers or prospects, a company can buy information on:

• Credit History
• Purchasing Patterns
• Housing Location and Situation, e.g. owner, renter
• Salary
• Lifestyle / Family

You can also buy data that segments customers based on the provider’s best information. Some is based on geographic of financial information. Others are based in buying patterns. Sometimes they even have cool segment titles like “Boomer Barons,” “True Blues,” and “Jumbo Families.” (All of those are from the Acxiom Personicx family of pre-defined segments). The goal of a demographic append is really bulk segmentation. How do I get enough information about my consumers to segment them for marketing and analysis. In most cases, the purchaser doesn’t care about any single individual or household, other than to get them into the correct program. The marketers are looking at sets of consumers, and then targeting from there.

In very high end consumer sales, e.g., luxury items, high net worth banking etc, you may find cases where sales people will use the appended data at the individual level. But generally it’s used for grouping customers into buckets, finding buying patterns and trends across like customers, and performing analyses such as next best product, lifetime value, and similar. Consumer sales is so transactional, that there isn’t time to research before any one conversation.

Firmagraphic Appends

B2B data, which I prefer to call “Firmagraphic” but have also seen called Firmographic or Firma-graphic, can provide value for not only segmentation, but also for pre-call research. B2B Sales is moving toward a more consultative approach where the sales rep becomes more of a partner with the purchaser. The best sales reps do this across all businesses. Rather than try to sell one product or service (transactional), the sales rep tries to understand the company’s need and deliver a suite of prodcuts & services and sometimes even the workers to use them (in an outsourcing arrangement). I’m sure if you’re reading this you’ve seen the varying styles of transactional and consultative sales reps.

To arm those consultative sales reps with the appropriate information, companies often purchase firmagraphic data and load it into their CRM systems. This data may be grouped into:

• Parent Child Relationships
• Locations of Related Companies
• Contact Information for Executives
• Industry Codes
• Number of Employees
• Revenue

This allows the rep to quickly look at the companie’s situation, and taylor their initial pitch accordingly. “I see you’re in a fast moving industry, with over 100 employees, and that you’re company has decentralized offices across the country. Have you heard of Product A that might meet your needs?” That conversation can only happen to a perspective customer if a firmagraphic append has happened previously. Which reminds me that another form of firmagraphic purchase is the ubiquitous, “Get 200 leads in your target industry,” but that’s not what I’m talking about here.

Segmentation of B2B customers is also sometimes based on Firmagraphic appends,  but as mentioned in the original B2B vs. B2C post, householding in B2B is focused on creating parent child relationships among your customers and prospects. You should also use all of your existing customer information including location, purchasing and servicing history, and past communication response to segment your customers. Once you have those relationships built, you can begin to analyze your coverage of headquarters and branches based on firmagraphic data.

Analytics then focuses on similar models for next best product, lifetime value, likelihood to purchase, likelihood to respond to certain campaigns and others. The tools to d

Acronym Glossary

CRM: Customer Relationship Management. Generally refers to the systems used by Sales and Marketing teams to store and organize customer contact information, purchasing, and servicing history. CRM systems also pump out lots of data used for operational reporting and as inputs to customer analysis and segmentation.

SFA: Sales Force Automation. Tools used by Sales Reps to manage their actitivities. This would include follow ups/reminders, appointments, leads, renewals, etc.  SFA systemsalso includes the operational reporting of those activities in some cases.

BI: Business Intelligence. The analytics and reporting tools built on top of the Data Warehouse. Business Intelligence can also be used to describe the practice of analyzing data to determine important insights and drive strategy. These tools look across CRM, SFA, manufacturing and financial systems.

B2B: Business to Business. Marketing and Sales activities along with associated products and services targeted at business customers.

B2C: Business to Consumer. Marketing and Sales activities along with associated products and services targeted at individuals or households of consumers.

ROI: Return on Investment. A simple calcualtion that takes the difference between the cost of a program and the returned value from it, and divides it by the cost of the program. So if I spend $100 and make $150, my ROI would be the $50 of benefit over the $100 of cost: .5 ROI. People often forget to subtract the cost from the numerator and inflate their ROIs.

Mixed Metaphors

I decided to go for a light post today. No Data Governance or Analytics allowed on the Friday of a long weekend! Enjoy, and add in others if you have them. Not all of these are original, but many are.

Hack of all trades (credit to my wife Lauren)
Green behind the ears (credit to Barack)
This isn’t rocket surgery
There’s no place like Rome
When in Rome, do as the Romanians do
I’m just talking out loud (also Lauren)
Walking on thin air
Skating on thin air
Treading on thin ice
Hit the wall running
Birds of a feather gather no moss
Burn that bridge when we come to it
Just water over the bridge
Death by a thousand paper clips
Up a tree without a paddle
Up a river without a leg to stand on
Wake up and smell the roses
Two’s a crowd and three’s company
Stop and smell the coffee
Don’t punch a gift horse in the mouth
Can’t lead a dead horse to water
It’s first and ten and we’re swinging for the fences
He took a shot in the dark and hit a grand slam
Give him enough rope to hang by a thread
They’re selling like hot potatoes
I don’t give a flying rat’s ass
A punter’s chance in hell

From therussler.tripod.com/
Pair up in threes, then line up in a circle, alphabetically by height.

From http://www.jimcarlton.com/
We could stand here and talk until the cows turn blue.
We have to get all our ducks on the same page.

DEBATE: How should data governance and data quality work together?

I added a comment to a fun debate on the Data Quality Pro site. The question was around the interaction between Data Governance and Data Quality. Most people agreed they were connected, but I think some people are living in the details of Data Governance. It has so much more potential than just fixing data models. My thoughts…

DEBATE: How should data governance and data quality work together?

I think people are on the right track linking Data Governance and Data Quality. No need to rehash above. My one input would be that Data Quality should be the measuring stick for the success of Data Governance programs.

I do feel that some people align Data Governance too closely with data modeling and data object definition. There are examples in the comments above. Sure clean data is the end goal, but Data Governance is the journey to get there. Data Governance is more of a cultural shift starting with 1) Aligning business strategy toward a common goal; 2) Building definitions, re-engineering processes & updating systems to represent those aligned business strategies; 3) Defining data objects to store the common definitions; and finally 4) Measuring success based on quantitative analysis of Data Quality. Without that, Data Governance becomes a theoretical data modeling exercise, and all of our work is minimized. I’m sure this is more of a top-down approach than the classical definition, but it’s where Data Governance will go next.