Learn how information governance can be applied to one project, or started with one data domain, and can then be extended to the entire enterprise. Ask the right questions to get your company in the right place with information governance, regardless of what system or solution you are using.
Key Concept
Information governance is a management process that provides oversight to ensure successful execution of your information initiatives. It involves the management of people, information assets, and processes to policies, standards, and objectives, including the ongoing oversight necessary to manage data risks.
Information governance is the process of domesticating your wild information. Right now, you have feral information hiding in spreadsheets on laptops. You have information that is not following the basic house rules. (You might not even have documented house rules.) The result of all this information in the wild is chaos and value leakage. Imagine your house with five wild dogs in it. Now imagine your house with five perfectly trained dogs in it — the situation would be much better. The difference is clear, but often the process of moving from point A to point B is unclear. Information governance is that process.
If you were dealing with a house, you might need dog whisperers to domesticate those wild dogs into well-trained ones. In the case of information, you need information whisperers. These information whisperers normally have titles such as business analyst, data analyst, data steward, master data specialist, or global data manager. They must understand how information behaves, which policies need to actively govern the information’s behavior, and how to understand if the information is, in fact, behaving.
In this article, we’ll discuss how information governance helps you move from point A to point B, relying on best practices gleaned from our ASUG Data Governance Special Interest Group, experience with companies using SAP systems, and industry experts. Best of all, the techniques and tools mentioned in the article apply to any information-heavy project, including SAP Customer Relationship Management (SAP CRM) implementations, business process engineering, predictive analytics, master data management implementations, data migrations, and more.
Business Processes Need Reliable Information
Do not underestimate how business processes absolutely rely on clean, consistent information. For example, in the case of airplane defects, if a model number was not stored according to a defined data standard, quick identification of a high-risk aircraft would not happen. The risk of not applying information governance principles is well known and unacceptably high — in this example, resulting in aircraft accidents and human tragedy.
Now think about your business. Which information elements are absolutely critical to your business? Which business processes depend on those information elements being of high quality? What does high quality mean to each individual business process? Which elements must be dealt with first? Who owns understanding the ramifications of poor governance and driving the information governance program forward? Do you have an accurate assessment of where you are now? Could you quickly use predictive analytic techniques to proactively avoid large problems?
Information Governance in Practice
In many cases, you can use business process failure to help jumpstart your information governance efforts. For example, one global material sciences company found, after a hurried ERP implementation, that it was unable to ship its product from certain plants. Only by tracking down the root cause of this business process failure was it able to determine that unfit-for-use data had compromised the business process. This acute issue — failure to ship product — inspired the company to initiate an information governance program, including support for on-going resource assignment and a data roadmap.
Of course, SAP tools and services, including SAP solutions for enterprise information management (EIM), SAP BusinessObjects Business Intelligence, and SAP NetWeaver Business Process Management, can help you with these tasks. SAP’s Business Transformation Services group also offers an Information Governance Maturity Assessment that helps you understand where you are now, and also establishes a roadmap for value-driven improvement in the future.
One Size Does Not Fit AllÂ
Because information governance is most successful when practiced on an individual project, there cannot be a single best practice that fits all organizations. Instead, you need to evaluate your company along these dimensions and develop a plan that works best for your needs in these areas:
- Culture
- Information management maturity
- Management sponsorship
- Data domains and processes
Now, let’s look at each of these areas in more detail. We’ll start by asking important questions, then discuss the impact to your company, and reference real company examples.
Culture
How much change can your organization tolerate? Do you have lines of business or divisions that are used to working independently?
The further your company falls to the left (toward independence) on the spectrum shown in Figure 1, the more you’ll need to focus on applying specific data standards to critical data elements. Corporate alignment on ambiguous data standards, such as defining an active customer across sales, marketing, and finance, takes much more time. (Do not immediately start a project to optimize information for order to cash, for instance. The kinds of sweeping change that information for business process optimization would require will be more than your organization can tolerate.)

Figure 1
Culture measurement
The further your company moves to the right (toward alignment), the more you can focus on fit-for-use standards — and cleansing — for effective business processes.
Information Governance in Practice
For example, one national insurance provider merged multiple regional franchises. Each regional franchise was accustomed to operating independently, as long as it adhered to the rules (e.g., what types of coverage could be sold where, federal compliance rules). In this case, a single regional office in Syracuse, NY, focused on selling value of a single data element that immediately helped a single business process. If that small group had focused on corporate alignment first, they would still be talking.
Information Management Maturity
Do you have any Centers of Excellence or Competency Centers in place that focus on information (e.g., business intelligence, data quality, and master data)? Do you operate in a shared-services model? Do you have enterprise information architects that guide individual project decisions? Do you have a strategic information plan?
The further your company falls to the left (toward individual projects) on the spectrum in Figure 2, the more you’ll need to focus on localized value first. (Do not immediately start a project to manage vendor information globally, for instance.)

Figure 2
Information management maturity measurement
The further your company moves to the right (toward information strategy), the more you can use executive sponsorship and more centralized decision-making in your initial information governance efforts.
Information Governance in Practice
That same regional insurance carrier pinpointed critical data elements that — if they were better quality — would drive immediate business benefit for them. With a small team of two people, that regional office applied information governance principles to address elements, and netted a quick ROI of more than US$134,000 on the Payer Remittance processing. By publishing its success to other groups that also benefit from governed address data, that small team of two now has executive support to expand its mission.
Management Sponsorship
Who owns the information: business or IT? Do you have a senior executive (one with organizational clout) who understands the power of information? Would an executive sponsor be able to align all the individual stakeholders to common goals and success metrics?
The further your company falls to the left (toward IT, ad hoc) on the spectrum in Figure 3, the more you’ll need to focus on easy-to-interpret information projects, such as automated cleansing of address information according to governmental standards. Although the business certainly needs to understand the kind of cleansing happening with their data, the extent of business/IT collaboration is limited because external bodies have already determined much of the fit-for-use decisions.

Figure 3
Management sponsorship measurement
The further your company moves to the right (toward business), the more you can use focus on projects where fit-for-use is very open to interpretation (for example, classifying and attaining a single view of vendor information).
Information Governance in Practice
A national optical retailer with an established Business Intelligence Competency Center (BICC) and a solid information management strategy applied the information governance efforts toward point-of-sale data movement and on-the-fly validation of that customer point-of-sale data. This wide-ranging project involves the business in the definition of what valid point-of-sale data is. The project also needs business process engineering experts to agree with the business on how this information should flow through the enterprise. Because these groups are already aligned and used to collaborating in the BICC, these decisions can happen in a timely manner.
Data Domains and Processes
Which business process or data domains are causing the most trouble in your organization? Which information is strategic? Which information is critical? Which information is shared across multiple business processes?
The further your company falls to the left (toward mystery information) on the spectrum in Figure 4, the more you’ll need to focus on finding, identifying, and tagging the information that has a high business value for your chosen project. Without this first step, your fledgling information governance team will have no way to prove value or impact. In addition, your group will not be able to accurately target their work for high value or estimate the amount of work necessary to complete the project.

Figure 4
Data domains and processes measurement
The further your company moves to the right (toward information inventory), the more you can use established baselines to set realistic, high-visibility metrics for your information stakeholders.
Information Governance in Practice
A global producer and marketer of food, agricultural, financial, and industrial products is undergoing a huge business transformation. As a part of this transformation, it is developing a comprehensive information management strategy and roadmap for the next 10+ years. A core piece of this strategy is gathering the key data elements and all associated metadata. With this information in place — and actively governed — this global company will be quick to find answers during the root cause analysis of business problems.
With answers to these questions in hand, your business leaders and IT leaders can collaborate on a working definition of information governance that is tailored to your specific company. SAP can also help you with this process via the Strategic Information Management group's Information Governance Maturity Assessment.Â
Note
SAP Services has a Strategic Information Management Group, which is part of Business Transformation Services. This group’s mission is to help companies discover their information management strategy, and tie that strategy to the corporate goals. To build a compelling roadmap for progress — both organizationally and technically — the group also needs to accurately assess a customer’s current state.
Resources to Have in Place
After you tailor your governance approach to your company’s quirks, you are ready to start talking resources. Although it may be tempting to start evaluating technology resources, the best first step is to figure out people resources. There are people in your company now who touch information, modify the information frequently, and decide when the information should be archived. One great way to discover these hidden assets is with surveys. Send a quick Web survey out that asks employees if they touch, enrich, or manage information. Then have them clarify which information they touch, and what general actions they perform on that information (e.g., create, read, update, and delete). The survey results will show you the breadth of your information governance problem.
Information Governance in Practice
One global food manufacturer was going through business process reengineering with an ERP solution. During that optimization process, it quickly discovered that it also needed to optimize the resources focusing on master data to gain the full business value of the ERP implementation. After conducting an extensive study, it uncovered that 98 people were maintaining master information as some portion of their duties. This surprising result helped the company realize that it could centralize master data maintenance functions down to 19 full-time employees. The benefits? Optimized business process, reduced risk, and trusted decision-making.
After you have the employees and your executive sponsor in place, you need to start working on documenting ownership and policies and standardizing important processes (for example, can Vendor Create use the same input form as Customer Create?).
These activities can be as light or as heavy as you defined in the Tailoring step. However, only after you have employees in place (including part-time employees) and have gained some experience actively managing the information can you begin to develop decent requirements for technology that will help you scale your efforts.
Process to Follow
Whew. You’ve defined a process and established both a rough organization and some basic tool requirements. To move up your governance maturity, follow these general steps:
- Define a data strategy that supports the business strategy and goals
- Identify the critical data elements that support those business goals
- Quantify how managing those data elements increases value
- Establish a current baseline for those critical elements
- Create an improvement plan
- Align business and IT behind enterprise data standards, policies, and processes
- Create data standards and processes supporting end-to-end business processes instead of ad hoc projects
- Achieve greater control and visibility over the data
- Understand and manage full data life cycle (creation to destruction)
- Quantify results
- Do it again
- Manage the change cycle
Keep in mind that any new critical projects can derail this project. Be prepared for these changes by using basic project management and tracking tools for your initial information governance project. Use these tools to document owners, policies that the groups decided on, criticality, metadata inventory, and more. If you document and track wisely, you’ll be able to pick up the project right where you left off. Also, you’ll be able to easily extend some of the decisions you made to the next information governance project.
Information Governance in Practice
Remember that regional insurance carrier? In the midst of its efforts to secure executive support for information governance, it faced several reorganizations. Just when the group had convinced a regional executive that information governance was important to business success, it would be reorganized. However, because it gathered metrics and kept refining its message for new leadership, it persevered. Now a specific group — the Quality Office — owns information governance and has on-going funding.
For most companies, the key is to start with a small, tactical project. Track a few simple metrics along the way. Then widely publicize the great results you attained (in terms of business value). Before long, your group will be in high demand!
Ina L. Mutschelknaus
Ina L. Mutschelknaus is a director of solution management for SAP solutions for EIM. She has been with SAP BusinessObjects since 1997. Ina currently works on information governance and end-to-end use scenarios. She has managed data cleansing, matching, profiling and assessment, and user experience. She has also focused on bringing these rich capabilities to master data management. You can follow her on Twitter @InaSAP, or check out her blog at https://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/u/251921993.
You may contact the author at ina.mutschelknaus@sap.com.
If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.
Mike Keilen
Mike Keilen is a senior director of solution management for SAP solutions for EIM. He has been with SAP BusinessObjects since 1991. Mike has provided leadership across EIM and enterprise content management (ECM) topics in various engineering, product, solution, and partner management roles. He is currently responsible for SAP’s information governance, migration, cloud/SaaS, and enterprise content management solutions. You can follow him on Twitter @MikeKeilen.
You may contact the author at mike.keilen@sap.com.
If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.