Inconsistent data across different silos in an organisation impacts business results and increases costs, says SAP

THE VOLUME of data within enterprises is exploding and users have little understanding of the quality of available data. This leads to data inconsistencies, questionable reliability, low traceability of key figures, and redundancies.

This is according to , director of strategic initiatives for Africa, speaking at the Data Governance Executive Forum, hosted by ITWeb and SCT.

"In most cases, one finds that different departments in a business create and store their own data, which leads to departments processing data in silos," noted Carpenter. Inconsistent data across different silos in a business impacts the business results and leads to increased costs, he added.

According to Carpenter, despite the obvious need for data governance, it`s often poorly done. He referred to a recent survey of business and IT leaders conducted by Kalido. The survey shows 66% of businesses have no clear data governance programme, and no plans to implement one. In addition, 13% are unclear as to what data governance even is.

The research also revealed that nobody knows who is supposed to be responsible for maintaining the accuracy of data, Carpenter said. Some 31% of companies say the role is held by the IT department. "IT organisations typically don`t have much control over the business processes that led to poor data in the first place."

PRICE TO PAY

He cited a statement made by Economist Intelligence, which noted that poorly managed information leads to inefficiency and risk. It showed 90% of upper-level management feel they don`t have the necessary information for critical business decisions, while 50% of them are afraid they are making poor decisions because of it. He said this usually leads to higher costs for the business.

"According to Adaptive Growth, 50% to 70% of ERP implementations are reported as `challenged` in terms of data integrity or data accuracy problems, leading to low productivity." Carpenter added that 90% of all businesses still do not have sufficient policies in place to meet data governance regulations, resulting in compliance failures.

Carpenter said organisations should acknowledge that there are a number of challenges that need consideration. "Firstly, they should know that data is not an `IT problem` - it is a corporate asset and needs to be owned and managed as such." The responsibility for accurate data resides with the business people who both generate and consume that data, he explained.

"IT is merely a facilitator, albeit a crucial one. In many organisations, political barriers and organisational silos get in the way of a sound approach to data management. Either everyone wants to own the data or else no one wants to own it; the result is chaos and redundancy."

BEATING THE CHALLENGES

Carpenter challenged businesses to address issues to effectively manage information. He said companies should always ensure they have a single version of the truth that reflects reality. "By doing so, a company avoids inconsistencies which usually occur."

Companies should empower all users with the information they need to make better decisions: "They should also help people to work across enterprise boundaries, so the organisation can minimise redundancies and errors impacting the business."

Carpenter advised attendees to manage information as a strategic asset that reduces inefficiencies and delivers trusted information, which is readily understood and available. "There should be a formal information architecture, to identify, share and govern all data."

IT is struggling to address the rapidly changing business requirements, he said, and excessive time is spent on integration rather than innovation. Application silos can make it difficult for people to collaborate, he concluded.



Tags: Data  Governance  Executive  Forum