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Informatica DGIQW2023 Q32023 WP
5 Essential Business
Value Metrics to
Build a Robust
Case for Cloud Data
Governance
informatica.com
5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
Contents
Executive Summary 3
- Value Opportunity One: Improved Productivity
of Data Governance Team 5
- Value Opportunity Two: Reduced Effort by Data Consumers
Searching for and Interpreting Business Data 6
- Value Opportunity Three: Reduced Effort by Data Specialists
Responding to Routine Requests and Emergency Escalations 7
- Value Opportunity Four: Faster Time to Value for
Data-Intensive Acquisitions and Projects 8
- Value Opportunity Five: Reduced Expected Exposure
from Compliance or Breach Event 9
A Representative BVA 10
Cash Flow 13
Appendix 16
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
Executive Summary
Organizations everywhere generate business-critical data. This data
is a crucial asset that can help the organization achieve its objectives.
Sometimes — as with customer, supplier, partner and employee data
— it’s internally generated operational data. In other situations, it may be
data about the organization’s industry, competitors, regulators and financial
environment. The data may have been acquired at great cost and effort.
Regardless of its source and application, this data can provide critical insight
for driving successful business outcomes.
It’s a missed opportunity when the organization is not able to leverage its
data. This may happen for a number of reasons. Data may be lost, misused,
unknown or not perceived as valuable to data consumers. There are times
when the organization cannot trust the data because it is inaccurate
or incomplete. Not being able to leverage data is an ongoing drain on
operational efficiency and reduces productivity. It represents no less of a
waste than when any other assets might be lost, forgotten, poorly leveraged,
abused or stolen.
There is a way to empower organizations to get the most from their high-
value and hard-to-acquire data assets. Informatica Cloud Data Governance
and Catalog is a cloud-native solution designed to enable data consumers to
find, understand, trust and access their data. It helps create the foundation
of data intelligence that modern organizations need to make smarter, more
effective data-led decisions that drive successful business goals.
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
In the sections that follow, we will provide additional details regarding the
assumptions, data and calculations used to quantify the business value
for each category as depicted in the chart above. We’ll note here that we
use three scenarios — low, medium and high — to estimate the ranges of
potential outcomes.
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
The governance team manages and controls the organization’s data assets. They’re currently using a
variety of manual solutions to document and control data assets.
As these tools are not built to support data governance, they do not offer helpful capabilities such as:
Estimate by data
Avg. % of time engaged 90% governance leadership
management team
Benchmark based on
Expected reduction of level
40% 50% 60% past BVA
of effort
engagements
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
Reduced Effort by Data Consumers Searching for and Interpreting Business Data
For business users, the mere act of finding data may take an inordinate number of wasted cycles.
Enabling enterprise data discovery through a Google-like search function that discovers data assets
located on-premises or in the cloud — and providing self-service data provisioning functionality to avoid
bottlenecks — would address much of this opportunity cost.
Even once users find the data, they can find it challenging to understand the context of that data.
What does it mean? Can I trust the source of the data? Is the data considered relevant for my purposes?
Automated tools such as a collaborative business glossary would provide that context. A visualization
of data lineage would help users gain a complete understanding of what the data signifies through its
movement and transformation.
The chart below illustrates how these capabilities would allow users to spend less time finding and
interpreting the data assets, and more time acting upon relevant information to achieve their
business goals.
Number of affected
575 Calculation
personnel
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Annual associated value $1,293,750 $1,552,500 $1,811,250 Calculation
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
An automated, self-service solution should reduce the volume of requests for IT personnel.
For one, the business self-service capabilities can help diminish the frequency of tickets, including
routine requests to access data.
Second, improved data context and lineage insights will minimize user requests for interpretation,
explanation and clarification.
Third, improved data lineage and impact analysis should reduce the frequency of cases where changes
to the data have unexpected and undesired results that question its trustworthiness.
By reducing the volume of requests and support tickets, we expect that data specialists will be able to
focus more on value-added activities.
Per assessment of
Expected reduction in
30% 40% 50% historical IT
requests ticketing trends
Average hourly
compensation of $63.00 Per HR reports
affected personnel
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
We expect that the organization will continue to pursue its strategy of acquiring promising businesses
in related markets and engaging in other data-intensive initiatives. In previous initiatives, projects were
executed slower than desired and forecasted. These delays were largely due to difficulties with data-
related tasks, such as finding data assets across the enterprise, scanning associated metadata, profiling
assets, understanding their lineage and cleansing and standardizing data.
These delays in execution can be addressed with a single, integrated solution specifically designed for
efficiency with metadata connectivity that integrates across the industry’s widest range of data sources.
With this solution, the organization should expect a faster time to value in data-intensive projects,
realizing value in production when projects might otherwise still be in testing.
Expected reduction in
20% 30% 40% Projection by PRO
average project timeline
Additional months of
33.60 50.40 67.20 Calculation
business value created
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
With tools that enhance the organization’s ability to find critically sensitive
data, such as PII, IP, and more in official and unofficial sources, they would be
better equipped to control data assets for responsible use. This can
help avoid unauthorized internal and outside personnel from acquiring,
misusing and / or abusing the assets and mitigate the risk of a breach of
sensitive data.
As with other major insurance providers, there have been several successful attempts at acquiring
customer data. We expect that a further breach or other security-compromising incident would be
devastating to the company’s reputation and would likely be accompanied by a significant financial cost.
With a solution that provides automated data classification capabilities along with enterprise-scale
search, the organization can enhance their ability to find, inventory and tag sensitive data where it
resides. Additional controls and access rules to data would further limit the risk that access is granted to
unauthorized personnel.
This benefit estimates the value of reducing the risk of a data security breach event (and of the costs
associated with each event), thereby reducing expected damages to be assessed in a given year.
Average cost
Expected cost /
$300 experienced in
breached record
past events
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
A Representative BVA
Benefit calculations like the ones above may be leveraged in the construction
of a business value assessment (BVA). A business value assessment is
a financial model built by a project manager or analyst to help make an
informed decision as to whether a proposed investment in a more reliable,
automated solution for data management and governance is in the best
financial interest of the organization’s owners and other stakeholders.
A BVA often takes the form of a return on investment (ROI) analysis. It may
be also known as a business case or a cost-benefit analysis (CBA). So that
there’s no confusion: our practice is to use the terms BVA, business case,
CBA and ROI interchangeably.
BWIG has grown rapidly and has acquired several smaller competitors
throughout North America and Europe. In the most recent year, BWIG wrote
$2 billion in premiums.
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
As BWIG has grown, IT leadership has called attention to their belief that
access to, and control of, its data assets are significant pain points for
the organization. BWIG operates in an environment where customers
have coverage options from a range of local and national competitors.
And with tight margins across the industry, there isn’t much room to win
business through aggressive pricing. To acquire and retain customers,
the organization hopes to leverage its long history and awareness of the
competitive environment to deploy its resources to the greatest effect.
That insight requires business leaders and internal data consumers to have
access to a variety of trusted data sources. Company leadership expects
that data governance challenges are preventing the organization from
achieving its full potential.
• Long lead times to find and provision data, which often results in
access to data being granted long after the window has closed for the
business opportunity
Few at BWIG would argue that these represented real challenges to the
business, but it was unclear whether the costs of addressing these issues
would justify the cost of a solution. Isaac Schneiderman, the company’s
longstanding CIO, suspected that a solution like Informatica Data
Governance and Catalog would solve many of the issues challenging
the organization.
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
Cash Flow
Leveraging the five quantified benefits, Sophie built three projected cash
flows, one for each of the benefit scenarios (low, medium and high). For
the first year, she eliminated the realization of value during an expected
four-month deployment and adoption period. Sophie has not yet compiled
expected costs from internal resources and solution vendors. For now, she
has a benefit-only analysis. Results follow:
Low Scenario
Projected Benefits Year 1 Year 2 Year 3 Year 4 Year 5 Total
Value Opportunity #1:
Improved Productivity of $316,800 $475,200 $475,200 $475,200 $475,200 $2,217,600
Data Governance Team
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
Medium Scenario
Projected Benefits Year 1 Year 2 Year 3 Year 4 Year 5 Total
Value Opportunity #1:
Improved Productivity of $396,000 $594,000 $594,000 $594,000 $594,000 $2,772,000
Data Governance Team
High Scenario
Projected Benefits Year 1 Year 2 Year 3 Year 4 Year 5 Total
Value Opportunity #1:
Improved Productivity of $475,200 $712,800 $712,800 $712,800 $712,800 $3,326,400
Data Governance Team
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
$50
$40
Millions
$30
$20
$10
$60
Value Opportunity 5
Reduced Expected Exposure from
$50 Compliance or Breach Event
Value Opportunity 4
Faster Time to Value for Data-Intensive
$40
Acquistions and Projects
Millions
Value Opportunity 3
$30 Reduced Effort by Data Specialists
Responding to Requests and
Emergency Escalation
$20
Value Opportunity 2
Reduced Effort by Data Consumers
Searching for and Interpreting
$10 Business Data
Value Opportunity 1
Improved Productivity of Data
Governance Team
Low Medium High
Demonstrating Results
An initial review of the five expected benefits included in the BVA resulted
in a post-implementation annual value between $5.1 million (low) and $9.6
million (high). If the costs of adopting Informatica Cloud Data Governance
and Catalog, inclusive of software subscription, professional services,
training and related costs, are lower than those of projected benefits, then
the investment would likely be accretive.
Get In Touch
Appendix
A. BVA Best Practices
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
Even if you have perfect clarity about the current state, and even if you have
relevant post-implementation results that you can reference, it is rare that
you can predict the future with absolute precision. It is far more credible (and
honest) to admit that inherent uncertainty when projecting the future state
across a range of potential scenarios.
Our practice is to show a future state across three potential scenarios: low,
medium and high. It’s been our experience that reviewers of BVAs appreciate
the opportunity to review a complete perspective of potential outcomes.
The representative BVA that we depict in this paper describes the process of
building a business case for an insurance provider considering Cloud Data
Governance and Catalog.
The benefits we illustrated may or may not be consistent with the ones
that your organization might experience or that is of greatest value to
your organization. At Informatica, we have seen this diversity of value
opportunities across the BVAs we’ve conducted over the last ten years;
there is a very broad range of potential impacts resulting from better data
management practices.
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
The value grid below depicts selected benefits for organizations deploying
Informatica Cloud Data Governance and Catalog across a range of scale:
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5 Essential Business Value Metrics to Build a Robust Case for
Cloud Data Governance
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5 Essential Business Value Metrics to Build a Robust Case for Cloud Data Governance
D. Product Specifications
Among the capabilities of Cloud Data Governance and Catalog that enable
organizations to realize value are:
This white paper was jointly written by Informatica and Blue Mesa
Consulting, LLC, a third-party provider of analytical services for the
technology industry. It depicts anticipated future benefits for an imaginary
organization but does not guarantee specific results that may be realized
in a particular environment. Your actual costs and benefits may vary.
Informatica and Blue Mesa Consulting make no representations that
results of any magnitude will be achieved by an organization acquiring
Informatica products.
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