Business and Data Management Capabilities For The Digital Economy

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Business and Data Management Capabilities for the Digital Economy
Technical Report · June 2015

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Business and Data
Management Capabilities
for the Digital Economy
Rieke Bärenfänger, Prof. Dr. Boris Otto, Dr. Dimitrios Gizanis
White Paper
May 2015 – V 1.0
About the CC CDQ
The Competence Center Corporate Data Quality (CC CDQ)1 is a consortium research
program in the field of corporate data management with a special focus on data quality
management. The work of the CC CDQ is carried out in close collaboration with re-
nowned European enterprises from various industries. It is driven by the requirements
of innovative business models inspired by global market presence, technological inno-
vation, worldwide business process harmonization, industrialized services, and cus-
tomized operations. Success in these areas relies on consistent, accurate, complete,
highly available, secure, and timely corporate data resources.
The CC CDQ comprises researchers from the University of St. Gallen (Institute of In-
formation Management and Institute of Accounting, Control and Auditing) and the
Fraunhofer Gesellschaft (Institute for Material Flow and Logistics, Fraunhofer IML). It is
headed by Prof. Dr. Boris Otto (Fraunhofer IML and TU Dortmund) and operated by the
CDQ AG.
Based on latest scientific insights, the CC CDQ develops methods, architectures, ref-
erence models, and prototypes needed for efficient implementation of corporate data
(quality) management. The participating companies build critical know-how and ex-
change best practices with peers in quarterly consortium workshops and multiple bilat-
eral projects. The core objective of the CC CDQ is to transfer theoretical preliminary
work and scientific research results in the domain of data management to everyday
business practice.
Partner companies of the CC CDQ
Note: The overview comprises previous and current partner companies.
1
See www.cdq.ch
2 Capabilities in the Digital Economy

Content
About the CC CDQ ........................................................................................... 2

Management Summary .................................................................................... 5
1. Towards the digital economy.................................................................. 6
2. Drivers of digitization .............................................................................. 8
2.1 Social drivers ......................................................................................... 8
2.2 Business drivers .................................................................................. 10
2.3 Technological drivers ........................................................................... 12
3. Illustrative short case studies in the digital economy ........................ 16
4. New and extended requirements for data management ..................... 19
5. Business and data management capabilities in the digital
economy ................................................................................................. 22
5.1 Business capabilities: the business value chain .................................. 24
5.2 Information services: digital solution enablers ..................................... 26
5.3 Data management capabilities: the data value chain ........................... 26
6. High-level roadmap for digital transformation .................................... 28
7. Summary and outlook ........................................................................... 30
References ...................................................................................................... 31
Appendix ......................................................................................................... 35
Acknowledgement .......................................................................................... 41
Capabilities in the Digital Economy 3

Abbreviations
BI Business Intelligence
B2B Business-to-business
B2C Business-to-consumer
CC CDQ Competence Center Corporate Data Quality
DBMS Database Management System
DQM Data Quality Management
DWH Data Warehousing
e.g. example given
ESB Enterprise Service Bus
ICT Information and Communication Technology
i.e. id est, that is
IoT Internet of Things
IS Information Systems
IT Information Technology
MDM Master Data Management
mgmt. management
PaaS Platform as a Service
SaaS Software as a Service
SOA Service-Oriented Architecture

Management Summary
Buzzwords like big data, the Internet of Things, mobile computing, or Industry 4.0 all
build on the conviction that the importance of data and information will keep growing
both for businesses and for society as a whole. Data management departments need
to revise their existing architectures and processes to get ready for the new require-
ments, for example regarding data availability, data integration, and data credibility.
The report builds on insights collected from the CC CDQ workshops and bilateral pro-
jects taking place in 2014. It aims at providing data managers of medium and large
enterprises from all industries with useful background information and practical guid-
ance for their journey towards the digital economy.
More precisely, the report
 contributes to a common understanding of the major technological, economic

and social drivers behind the evolution of the "digital economy",
 specifies the implications the digital economy has on data management re-
quirements,
 shows how companies react to these new requirements in five short exemplary
cases,
 presents a business and data management capability framework for companies
operating in the digital economy, and
 describes a possible roadmap for data managers to follow on their company’s
journey towards digitization.

1. Towards the digital economy
A recent survey among 513 European executives shows a large awareness of the
transformational impact of digitization on European businesses across all industries
(Accenture 2014). As displayed in Figure 1, approximately two thirds of the managers
surveyed believe that digitization will strongly impact the business models in their in-
dustries within the next 12 months. The same proportion fears that their companies will
lose customers if they are unable to meet the requirements of digitization in decent
time. Regarding the perspective of the entire European market, a vast majority of the
respondents (96%) thinks that digital technologies will be important, or even critical, for
Europe’s competitiveness in the global market environment in the next three years.
To what extent do you expect the continued How concerned are you that your customers
evolution of digital technologies to impact business (businesses and/or consumers) may change providers
models in your industry over the next 12 months? if your company does not embrace the digital
transformation in the next 12 months?
62% 63%
38% 37%
62% = “complete transformation” or “major change”, top 2 categories 63% = “very concerned“ or “somewhat concerned“, top 2 categories
Where will your company primarily focus its How important will digital technologies be to boost
investments in digital in the next 3 years? Europe’s competitiveness in the next three years?
To make processes
more digital
60%
40%
96%
To make products
and services more digital
96% = “critical“ or “important“, top 2 categories
N = 513
Figure 1: Importance of digitization for European businesses: opinion of European C-

level executives (based on Accenture 2014)
A survey conducted during the CC CDQ workshop in Stockholm, Sweden, in June

2014 showed similar results. Of the 46 data management professionals surveyed, a
majority considers digitization a relevant issue for their respective organizations. Fur-
thermore, the CC CDQ steering committee, the competence center’s overseeing and
strategy-defining body, has defined digitization, big data management, and data-driven
decision making as top priorities of the 2015 CC CDQ research agenda. Just one year
earlier, in the 2014 agenda, these topics did not appear in the top ranks.
The underlying notion of digitization is that information technology is increasingly per-

meating all areas of life (Otto & Österle 2015), leading to a “hyper-connected”, “net-
worked” society and a “digital economy”. Data is the key resource at the heart of this

development, in the course of which individuals, organizations, and physical devices
leave more and more digital traces in the networked society. This trend is fueled by the
rise of new technologies and growing customer expectations regarding transparency
and convenience. Start-up companies develop new business models taking into ac-
count these developments, while incumbent market players often struggle to maintain
their position and to find the right approach to transform their business in view of digiti-
zation.
As a response to this development, responsible (data) managers face three main

tasks:
1. Understand the drivers and characteristics of digitization with its opportuni-

ties for business in general and its impact on different areas of data manage-
ment in particular.
2. Determine the strategic priorities for digital initiatives.
3. Plan concrete actions to implement digital initiatives and to prepare the or-
ganization for the requirements of the digital economy.
Regarding (1), the report identifies and describes the main drivers that constitute the
phenomenon called “digitization” (chapter 2). These drivers and their impact on data
management are then illustrated by means of brief case studies (chapter 3) and by a
structured list of data management requirements (chapter 4).
As for (2), the report presents a selection of relevant digital business capabilities man-
agers may choose to implement depending on their company’s needs. This selection is
presented in the top layer of the capability framework in Figure 5 (chapter 5).
Regarding (3), after managers have prioritized the business capabilities and identified
concrete use cases for digital initiatives, the capability framework also serves as a
high-level roadmap allowing managers to translate business requirements into actions
for business-IT alignment and data management (chapter 6).

2. Drivers of digitization
Digitization is a global trend that is driven by multiple factors. Three cornerstones are
social, business, and technological drivers. Taken together, they frame what can be
called “the digital economy”. Figure 2 shows the main drivers from these three areas.
Society Business Technology
 Individualization  Consumer centricity and multi-  Cyber-physical systems and

channel connectivity the Internet of Things
 Sustainability
 „Industry 4.0“  “Big Data” technology: In-
 „Shareconomy“
memory computing, Hadoop,
 Mobility  „Hybrid“ services and product
cloud, etc.
platforms
 Data privacy  3D printing
 New business models
 Social media and Web 2.0  Augmented and virtual reality
Digitization
(Digital Economy / Networked Economy)
Figure 2: Drivers of digitization
2.1 Social drivers
Individualization
For many people it has become a major desire to emphasize their individuality in many
areas of life. Companies aim at satisfying this demand by “mass customization” of their
products and services. Since this term came up in the 1990s (Pine 1993), technical
progress, globalization, and optimized supply chains have made customized products
affordable to large groups of consumers who would never have dreamed of a “classi-
cal” customized product like a tailored suit in the past. Almost any product (personal
computers, cars, running shoes, etc.) can be customized (or personalized) to reflect
individual style and preferences, personal affiliations, or social status. In the automotive
industry, for example, mass customization today means that only a single-digit per-
centage of all cars of a certain model is produced identically. Information technology
plays an important role as facilitator of the entire customized order fulfillment process.
In a wider sociological understanding besides the consumer world, individualization of
course also covers other long-term developments such as the one towards individual
fulfillment.
Sustainability
People become increasingly aware of environmental and social threats such as climate
change, the growing pollution of air, water, and soil, and the growing amounts of waste.
According to a Eurobarometer survey from 2013, about 50 percent of all Europeans
“have taken some form of action in the past six months to tackle climate change” (Eu-
ropean Commission 2013, p.42), including reducing and recycling waste, buying local

and seasonal products, buying more energy-efficient household appliances, choosing
environmentally-friendly forms of transportation, and improving home insulation. Cus-
tomers also expect environmentally responsible action from companies and have be-
gun to be interested in sustainability measures taken by them like the carbon footprint
of certain products.
Shareconomy
The term “shareconomy” describes a counter-trend to individual consumption and ex-
cessive private property. Especially in highly developed countries, a growing number of
individuals find they do not need to own expensive, yet often unused, goods. Instead,
they prefer borrowing (or renting out) such goods on demand. Examples of this trend
are increasingly popular services for car sharing like car2go and DriveNow or the pri-
vate lodging service Airbnb (Bubner et al. 2014, p.8). Using shareconomy services,
people no longer need to acquire an expensive good and incur the operating expenses
that are traditionally attached to it (as in the case of a car with its high up-front purchas-
ing costs and considerable follow-up costs like insurance fees). Instead, cost can be
refined to the pay-as-you-use principle. Vice versa, in the case of renting out own
property to others (Airbnb), it is even possible to generate additional income.
Shareconomy services use state-of-the art information and communication technology
(ICT) to efficiently connect buyers and sellers remote from one another, thereby scaling
the idea behind traditional sharing platforms such as bulletin boards or neighborly con-
nections. Besides the motivation to save money, environmental considerations inspire
shareconomy models as well. By relinquishing infrequently used goods, people hope to
reduce waste and contribute to a more sustainable society.
Mobility
Today’s societies are more mobile than ever before. It has become commonplace to
commute long distances to arrive at one’s workplace and long-distance flights connect
almost every region in the world. Liberalized public transportation markets (in Germa-
ny, for example), allow new competitors to enter the medium-distance transportation
market, reducing prices for this kind of mobility (BMVI 2014). The transformation of the
workspace is another area where mobility can be observed; one example is the in-
creasing number of knowledge workers, who can flexibly perform their work from multi-
ple locations like their home office or while traveling. This development towards remote
work has been enabled by today’s ICT devices (especially laptops, smartphones, and
tablets) and the exhaustive internet coverage.
Data privacy
The enthusiastic use of smartphones and the internet has raised personal data privacy
and data security concerns. Fueled by the PRISM scandal, a large-scale private com-
munications surveillance program by the American National Security Agency (NSA),
which was leaked in 2013, internet and telecommunication users all over the world had
to learn that any allegedly private communication via electronic networks of major
American internet technology companies is systematically recorded and analyzed by
this agency (Lee 2013). Besides data abuse by national agencies, collection and anal-
ysis of personal data by private companies like Google or Amazon is a growing con-

cern of privacy groups and regulators. Consequently, multinational companies must
comply with many different data privacy regulations in their global operating markets.
One important new directive in the European market will be the “General Data Protec-
tion Regulation” (GDPR), which regulates data protection and privacy not only for com-
panies situated in the EU, but also for any company outside the EU processing data of
EU residents (European Parliament 2014). The directive is still under development and
is expected to be adopted in 2015. Surprisingly, consumer awareness of data privacy
issues is not yet high enough to cause any noteworthy behavioral changes. In view of
recurring data security breaches and increasing data analytics abilities, it remains to be
seen whether consumers will demand more transparency and control over their private
data in the future.
Social media and Web 2.0

The terms “social media” and “Web 2.0” refer to the evolution of the internet towards a
collaboration platform that allows users to interact with each other and contribute own
web contents. The rise of social media and Web 2.0 has influenced the ways compa-
nies interact with their customers and stakeholders. Many companies thereby hope to
strengthen the bonds with customers and improve communications with suppliers and
external partners. Furthermore, Web 2.0 may encourage idea sharing and facilitate
access to expert knowledge, hence deepening companies’ knowledge pools (McKinsey
2009). While image-based and micro-video platforms such as Flickr or youtube have
gained importance in B2C marketing, business networking platforms such as LinkedIn
are increasingly also attracting B2B marketers (Forbes 2014).
2.2 Business drivers
Consumer centricity and multi-channel connectivity

Consumer centricity refers to the trend towards individualization from a business per-
spective. It means that more markets are becoming buyers’ markets, which are charac-
terized by increasing power of customers in general, and consumers in particular. Indi-
vidual consumers can be identified easily by tracking their digital traces on the web, via
their smartphone usage profiles, or – in rather conventional ways – through the use of
retail loyalty cards. Companies are expected to reach out to their customers via differ-
ent channels, not just the direct sales channel. A major data management challenge of
this trend is to keep track of one unique customer identity across all channels. Another
sign of the increased focus on the consumer is the direct integration of customers in
the value creation process, for example through crowdsourcing. Because of this chang-
ing relationship between companies and consumers, the consumer is now sometimes
also referred to as “prosumer” (a word assembled by combining “professional” and
“consumer” or, alternatively, “producer” and “consumer”) (EY 2011, p.6).

Industry 4.0
The term “Industry 4.0” is gaining popularity since it was coined in one of the German
Federal Government’s high-tech strategy projects in 2012 (BMBF 2014) 2. It describes
the “fourth industrial revolution”, which is currently transforming industrial production.
Industry 4.0 assumes state-of-the-art automation of production processes according to
the principle of subsidiarity, process virtualization by optimal information transparency,
batch size of one, and the interconnection of machines, workpieces, and workers (see
also cyber-phyiscal systems and IoT). Furthermore, entire production networks are
expected to become even more integrated over the value chain (Forschungsunion &
Acatech 2013, p.6). In the new “smart factories” enabled by Industry 4.0, workers will
require more ICT-related skills and larger responsibility for monitoring automated pro-
duction facilities.
Hybrid products and product platforms

In the digital economy, products are increasingly turning into “hybrid service offerings”.
This change has two elements: Firstly, it means that products are increasingly comput-
erized and electronically interconnected by the integration of ICT components. For ex-
ample, cars are today equipped with various ICT components besides the mechanical
engineering core. These components, for example, allow monitoring the vehicle status
including its surroundings (rain sensors, parking assistance systems) and offer new
ways of connection with the driver (bluetooth music placer connected to driver’s MP3
player) and even with the outer world (GPS, remote service). Another example are
“wearables”, i.e. clothes with integrated computer chips. As these complex products
often consist of multiple “layers” (device, network, content, service), with the software
or content being provided by one company and the basic physical product components
by another, products are increasingly turning into “product platforms” (Yoo et al. 2010).
Secondly, the servitization trend transforms product offerings in the digital economy.
Companies try to market the final performance (i.e. value for the customer) of a product
instead of merely selling the product itself, which is sometimes called “performance
contracting”. For example, companies can offer a vertical transportation service instead
of just selling elevators or an airplane propulsion service instead of aviation turbines.
This goes beyond just offering additional services alongside the core product, which
has almost become a necessity in both B2C and B2B markets.
New business models

The transformation of value propositions towards hybrid services can affect entire
business models. A business model describes the underlying business logic of a com-
pany (Teece 2010) including value offerings, customer segments, value creation activi-
ties and capabilities, and revenue models. A changing business model means that a
company’s entire underlying business logic is affected by either an important external
developments or an internal decision (e.g., an innovation regarding the value proposi-
tion, which requires substantial changes to the company’s mechanisms for creating
and capturing value). An example where a business model transformation can be ob-
served is the logistics industry, where some companies are evolving from providers of
2
Outside Germany, the terms “smart manufacturing“ or “industrial internet” are used for the same development.

logistics services to data providers, e.g. by offering location data for location based
services from third parties (Jeseke et al. 2013, p.13f.)3.
2.3 Technological drivers
Cyber-physical systems and the Internet of Things

The major technological driver behind “Industry 4.0” is the vision of the Internet of
Things (IoT). The IoT is based on the notion that every physical device and even hu-
man being will be electronically identifiable and connected to the internet in the future.
This will have a profound impact on the way supply chains and shop floor production
processes work and are represented in information systems. Whereas today carriers or
groups of items, like pallets or production batches, can be identified and then tracked
and traced through the supply chain, smaller and cheaper sensors and computer chips
make item-level tagging and tracing feasible. Depending on the “intelligence” of these
items and their production systems, new levels of factory automation beyond basic
“track and trace” are imaginable. For example, a product may tell the conveyor belt
how to proceed with the production process or initiate its delivery (Roland Berger 2014,
p.9). Necessary conditions for this scenario are real-time status monitoring capabilities
and bilateral information and control flows between the workpiece, its production pro-
cess, and the production system. Another term for such a network of physical objects
and their production systems is “cyber-physical system”.
“Big data” technology: in-memory computing, Hadoop, and cloud

“Big data” refers to “high volume, velocity and variety information assets that demand
cost- effective, innovative forms of information processing for enhanced insight and
decision making” (LeHong & Fenn 2013, p.48). The “3 Vs” (for volume, velocity and
variety) are by now relatively accepted to summarize the core characteristics of big
data, although the definition is occasionally complemented by other letters such as “C”
(for complexity), or additional “Vs” (for variability or veracity). Data variety means that
the range of data sources is extended from primarily internally generated data (e.g.
transaction data and master data) to externally-generated data such as Web data, lo-
cation data, or data from the IoT. Furthermore, companies try to use more of their data
that is “hidden” in documents or presentations. The greater source variety combined
with more sources and shorter data acquisition intervals inevitably lead to greater data
volumes. Data velocity, finally, refers to faster data acquisition, data transformation and
processing, and data delivery (or access).
It is commonly held that today’s ever-increasing amount of data is a) potentially valua-

ble for businesses if this data can be exploited, and b) that doing so is no trivial task4. A
3
Of course, a partial change (i.e. an adjustment) of a business model in only a few of the dimensions mentioned hap-
pens more often (and more easily) than a change of the entire business model. The adoption of eOrdering/eInvoicing for
more efficient transactions between business partners is one simple example of changing value creation activities in
core processes.
4
Therefore, the “big data” definitions often come with the addition that these are data volumes which cannot be handled
“by conventional information processing systems”.

recent survey on promising big data technologies by analyst company Gartner is
shown in Figure 3. A brief explanation of three core technologies is given in the next
paragraphs.
Key: DBMS – Database Management System; SaaS – Software as a Service; PaaS – Platform as a Service
Figure 3: Technologies used to derive value from big data (Kart et al. 2013, p. 20)
Cloud computing services are data processing-related capabilities offered for rent by
external service providers. Cloud strategies are considered as alternative to classical
hardware and software acquisition strategies to address big data-related challenges
like limited in-house data storage space or insufficient data processing power. Cloud
computing providers offer, for example, virtual data warehousing space, often extended
by data management services, which companies take advantage of to reduce the capi-
tal equipment risk attached to large server farms, and which releases them from the
obligation to have all skills available in-house. Furthermore, externally contracted stor-
age and data processing capacity theoretically is infinitely scalable. Although cost sav-
ings and reduced efforts for database operations management are strong arguments in
favor of cloud offerings, doubts can be raised regarding data security in both public and
private cloud environments (cf. data privacy).
In-memory database technology, also called in-memory data management or in-

memory computing (IMC), is another technology that has received considerable atten-
tion in recent years. In-memory databases store data in main memory instead on disk,
which enables faster data access than hard disk I/O (Gill 2007, p.61). Combined with
other database optimizations such as column storage and the associated data com-
pression potential, IMC allows very fast data processing even of large datasets.

Apache Hadoop is a Java-based software framework for distributed storage and pro-
cessing of very large data sets (Henschen 2011, p.20). Data storage is done by the
Hadoop Distributed File System (HDFS), while data processing is performed by the
MapReduce engine, which spreads a computing task across multiple nodes in a com-
puting cluster and later merges the results. Hadoop is easily scalable and relatively
inexpensive since storage and processing tasks are distributed across commodity
computer hardware clusters. The main application area for Hadoop-related solutions is
batch analytics of large datasets, e.g. of Web data (Leveling et al. 2014, p. 919). Ha-
doop is considered as an entire ecosystem because other software packages work on
top or alongside of it – which is facilitated by the fact that the framework is available
open source. With HBase it also features a type of NoSQL database. NoSQL (“not only
SQL”) databases are generally less strict with respect to data schemas in contrast to
conventional relational SQL databases.
3D printing
3D printing is a technology that seems to be reviving science fiction movie dreams with
its manufacturing process that creates physical multidimensional objects from a range
of basic materials. 3D printing allows creating 3D objects of almost any shape and size
from suitable design templates by a manufacturing principle called “additive manufac-
turing”. The technology offers two major benefits: it allows to produce complex internal
structures that are impossible to construct by means of traditional manufacturing tech-
niques, and it has huge potential for product mass customization, given that the printer
itself and the raw materials are affordable (Manyika et al. 2013, p.105). Therefore, 3D
printing can expected to impact the ways how products for both B2B and B2C markets
are designed, produced and distributed. For example, it is quite conceivable that spare
parts could be 3D printed at a customer site – reducing the need for large spare parts
inventories and delivery operations.
Augmented and virtual reality

Augmented reality (AR) is a variation of virtual reality (VR). While in virtual reality the
user completely immerses into a synthetic environment, augmented reality allows the
user to see the real world with virtual objects superimposed upon it (Azuma, 1997,
p.355f.). The technology has advanced quickly over the past few years, driven by
crowdfunded start-ups (e.g. “Meta”) and major tech companies such as Google
(“Google Glass”) or Microsoft (“Hololens”) alike. Another well-known example is the
Facebook-owned “Oculus VR”, which has already sold more than 100’000 of its Oculus
Rift headset’s developer kits (a prototype) in an effort to establish it as a computing
platform (The Guardian 2014). The scope of applications in which augmented reality
devices are or can be used is wide, including gaming, education, medical engineering,
commerce and logistics. For example, DHL, one of the world’s leading logistics com-
pany, is currently experimenting with the use of augmented reality and smart glasses
for warehousing (Augmented Reality Trends 2015). The majority of virtual reality prod-
ucts is still in the development phase, but can expected to reach consumer markets in
the near future.

In addition to the technological trends covered here, Gartner’s 2013 hype cycle for
emerging technologies provides a more comprehensive list of relevant technological
innovations in the digital economy. It is included in the Appendix.
Similar to the hype (or maturity) cycle for technologies, enterprises from different indus-
tries are at different stages of their journey towards the digital economy. Whereas
some industries, like retail (because of the exposure to e-commerce) or media (be-
cause of the rise of social media platforms and free information distributors such as
blogs and web news portals), were forced to respond to the digital transformation pro-
cess for several years already, other industries, like manufacturing or transportation,
are just about to react to digitization in their core business areas. “Industrie 4.0”, the
new buzzword in Germany, now helps to raise awareness of the need for change
among business managers and data managers alike. A clear need for a better under-
standing of the possible impact of digitization on business models and data manage-
ment practices can certainly be identified.

3. Illustrative short case studies in the digital economy
This chapter presents five short case study descriptions from the extended practitioner
and research network of the CC CDQ to illustrate how companies react to digitization
with data management-related initiatives. Each case refers to data management re-
quirements that are typical of the digital economy, which are later summarized and
explained in Table 1 in chapter 4.
Fraunhofer IML, Mars, Rewe, and CHEP: A cloud solution for real-time logistics
flow tracking – The smaRTI project
The smaRTI (smart reusable transport items) project is a collaborative applied research
project led by the Fraunhofer Institute of Material Flow and Logistics (Fraunhofer IML),
which developed a service for real-time tracking and tracing of transport structures like
pallets (LT-Manager 2013). In line with the concept of the Internet of Things, pallets
can be identified on a unit level and can be traced on their journey along the entire
supply chain. The solution uses RFID technology for pallet tagging and a cloud soft-
ware architecture for data integration and analysis, enabling the collaboration of differ-
ent business partners to optimize their jointly used pallet pool. The project implemented
a fully functional pilot application, which connected pallets used by the supply chain
partners Mars and Rewe and their pallet pool service provider CHEP, plus four other
pilot scenarios with other companies’ pallet pools. To satisfy all functional and non-
functional requirements, (e.g. regarding pallet traceability, inventory management
transparency, cycle time transparency, data shareability, and data security), the
smaRTI project partners decided to use a NoSQL architecture after thorough testing of
alternative architecture options. The solution addresses several data management re-
quirements of the digital economy such as transparency, collaboration, and scalabil-
ity. For further information on smaRTI please visit the project homepage5.
CC CDQ: The Corporate Data League – a collaborative data management plat-

form
The Corporate Data League (CDL) is a platform for collaborative master data and data
quality management of business partner data. The CDL is a pilot application which was
developed by the CC CDQ. It builds on the fact that large corporations often have iden-
tical (supplier) master data that need to be maintained in every company’s IT systems,
causing redundant data maintenance and DQM costs in each of the companies. In-
stead of each company maintaining these records on its own, the CDL offers a platform
for sharing those data maintenance activities for general, public attributes of business
partner data records (name, legal form, address, etc.). The pilot application is currently
being implemented as a functional web platform featuring anonymous cleansing of
business partner data, duplicate matching, shared data quality management, and a
semantic meta-data and reference data repository. The CDL addresses the data man-
agement requirement of more efficient data quality management. Furthermore, it
5
See http://www.smart-rti.de/

implements a novel data governance concept for shared master data. More infor-
mation can be found on the CDL homepage6.
Lanxess: Margin simulation with in-memory computing

Lanxess is a German specialty chemicals company. To address growing business in-
telligence (BI) requirements regarding flexibility and speed of its analytics services,
Lanxess migrated its business warehouse to the in-memory database SAP HANA. Two
new BI scenarios enabled by this new technology included a management dashboard
for an improved overview of key financial performance indicators and a powerful mar-
gin simulation tool (Schuster 2013). The former allows to create individualized reports
with short response times for insights as detailed as the individual record level. The
latter allows simulating the development of Lanxess’ profit margins depending on
changes of internal and external parameters such as raw material prices or inter-
company transfer prices. This is valuable because the specialty chemicals industry is
highly dependent on such external factors and because Lanxess operates many pro-
duction sites across the globe, which cover different steps in the value creation pro-
cess. The tool supports both business unit and central views. The new BI environment
addresses multiple modern data management requirements, especially higher con-
venience and self-service BI for business users, new data models, new technolo-
gies, and integration of internal and external data sources.
Bayer HealthCare: Advanced customer data integration

Bayer HealthCare, a German provider of pharmaceutical products and consumer
health care products, launched a project for integration of its customer data across
multiple source systems to gain a comprehensive customer profile across the entire
customer lifecycle (Maasz 2014). As it is typical of the health care business, customers
get in touch with Bayer HealthCare in different roles over their lifetime, for example as
medicine student, as physicist of their own doctor’s office, and finally as patient. All
these interactions take place across different channels. In the past, the data about
these interactions was traditionally stored across multiple Bayer IT systems, which im-
peded a unified view on the customer. With the new solution, data from various internal
source systems can be connected, cleansed, and will in the future be enhanced with
data from external sources, e.g. social media data. The project addresses multiple new
and extended data management requirements listed in Table 1, including cross-
channel and cross-system data integration for better customer centricity, develop-
ment of new data models, as well as the potential for offering new information ser-
vices for product development and/or marketing & sales by improved customer in-
sights.
Otto Group: Predictive analytics for supply chain management

Multichannel retailer Otto Group has been facing increasing challenges in making reli-
able demand forecasts. This is mainly due to the apparel industry facing volatile de-
mand patterns and shorter product life cycles, leaving Otto with the usual inventory
management risks of either underpurchasing (and risking lost sales and customer dis-
6
See https://www.corporate-data-league.ch/

satisfaction) or overpurchasing (and incurring additional inventory holding and capital
costs). As its traditional demand forecasting mechanisms no longer lived up to expec-
tations, Otto implemented a new predictive analytics software tool by the company blue
yonder which calculates demand forecasts based on 200 input variables as well as
historical data and whose algorithm also features self-learning (Stüben 2012). The pre-
dictive analytics tool was integrated with Otto’s inventory management and order sys-
tem and helped improve ordering and delivery performance in both offline and online
sales channels. The solution helps to achieve better customer centricity and mainly
addresses the data management requirements internal and external data integra-
tion, and prescriptive decision support.
The five short case studies give examples of valuable business use cases in the digital
economy and highlight the enabling role of data management7. Based on these cases
and extended research, the following chapter summarizes the new requirements posed
on data management in the digital economy.
7
More use cases involving “big data technology” are described in a recent BITKOM study (BITKOM 2015). Moreover,
the CC CDQ described case studies with a focus on in-memory computing technology in a research study report enti-
tled “Value Potential of In-Memory Data Management”. It is available for CDQ members on the CC CDQ website
(Bärenfänger 2014).

4. New and extended requirements for data management
In 2009, the international Data Management Association (DAMA) published their
“Guide to the Data Management Body of Knowledge” (DAMA-DMBOK) in order to
structure and characterize the most important areas (called “functions”) of corporate
data management (DAMA 2009)8. The CDQ framework (see Appendix) is a reference
framework that covers most of the DAMA functions in its six design areas. However,
since the DAMA list provides a more granular structure and includes Business Intelli-
gence (BI) and Data Warehousing (DWH) aspects, it was chosen here for the analysis
of new and extended data management requirements in light of digitization. Table 1
presents these requirements and also refers to the cases from chapter 3.
Data management New and extended data management requirements follow-

function ing from digitization
1. Data governance  Define ownership of digital innovation topics by estab-

lishing a central team or body overseeing these innova-
tion topics in the company (e.g. exploration of IoT sce-
narios, Industry 4.0 scenarios, or new technology pilots
(e.g. SAP HANA, Hadoop) to prevent duplicate efforts
and to pool experiences).
 Appoint an authority representing IT and data manage-
ment in digital business strategy.
 Design concepts for data governance of external and
shared data, for example in cloud projects (cf. project
smaRTI, Corporate Data League, Ch. 3).
 Develop “information services” for internal and external
customers, which make use of the available data in nov-
el, valuable ways.
2. Data architecture  Ensure the enterprise data model for external business
management objects and data objects is up to date; simultaneously
make sure the model is built for flexibility.
 Prepare the architecture for new requirements regarding
performance (higher speed), scalability (new storage
capacity), and integration (semantic unambiguity). Ap-
propriate measures may include, but are not limited to,
cloud architectures, new data modeling, new industry
standards, and paradigms like Service-Oriented Archi-
tecture (SOA) or other Enterprise Service Bus (ESB) so-
lutions.
 Ensure integrated management of customer-facing elec-
8
Please see Appendix 0for more information on the ten functions.

tronic touch points and digital channels to support cus-
tomer-centricity and the need for data ubiquity (e.g.
homepage, portals, mobile apps, social media, etc.).
3. Data develop-  Ensure integrity, usability, and maintainability not just of

ment internal and structured data assets, but also of external
and/or unstructured data assets (e.g. from web logs,
emails, sensors, social media), and adapt data models
accordingly.
4. Database opera-  Prepare for “big data requirements”: optimize scalability

tions management and speed (including real-time when necessary) by inte-
gration of adequate database technologies such NoSQL
and in-memory databases (cf. in-memory computing
cases, Ch. 3).
5. Data security  Develop and implement data security strategy for cloud
management services.
 Develop and implement data security policies for more
diverse devices and equipment, including not just desk-
top PCs and notebooks, but also smartphones and tab-
lets.
 Establish customer data privacy policies.
6. Reference &  Go beyond the “golden record”: provide not just an un-
master data ambiguous, but also a “semantically enriched” view of
management core business objects (e.g. customers) by integrating in-
formation from all relevant internal and external sources
(cf. project CDIS at Bayer HealthCare, Ch. 3).
7. Data warehous-  Prepare DWH & BI tools and skills for more complex
ing & Business analytics and decision-support requirements (predictive,
Intelligence (DWH prescriptive, and real-time analytics), including adequate
& BI) management visualization techniques (cf. Lanxess in-memory case,
Otto Group SCM analytics, Ch. 3).
 Provide BI information for increased convenience and
ubiquity requirements:
 Control multiple channels for both internal and external
customers (e.g. web portals, mobile apps, etc.).
 Offer BI self-service for business users and improved
ease of use as in consumer IT.
8. Document &  Manage not just internal documents and contents but al-
content manage- so those from outside the organization.

ment
9. Metadata  Enhance metadata for increased business process au-

management tomation / virtualization and security requirements (e.g.
for autonomous order processing or automatic data ac-
cess processes).
 Establish metadata concepts for unconventional and ex-
ternally sourced data (e.g. regarding data lineage and
data credibility).
10. Data quality  Ensure more efficient DQM in view of increasing data
management volumes and data variety:
(DQM)  Intensify use of business rules for preventive DQM.
 Check options for replacement of reactive data quality
measures by improved data analytics (e.g. improved
fuzzy search algorithms).
 Enrich your data with data from external sources (e.g.
Corporate Data League, Ch. 3; services like Factual).
Table 1: Data management functions and new or extended data management require-
ments in the digital economy
The table reveals a need for action in many areas of data management. Whereas it is
unlikely that every company will have to tackle all areas at the same time and with the
same intensity, most will have to face multiple of these requirements and will then be
forced to prioritize their efforts. This prioritization should depend on the company’s
business capabilities and high-priority use cases following from these capabilities.
The next two chapters explain this top-down approach.

5. Business and data management capabilities in the digital
economy
Based on the drivers of digitization described in chapter 2, the case studies from chap-
ter 3, and the collection of new and extended data management requirements in chap-
ter 4, the CC CDQ has developed a high-level framework of business and data
management capabilities for the digital economy9. A conceptual version of the
framework is shown in Figure 4, whereas Figure 5 shows the complete high-level
capability framework. The goal of the framework is to highlight important business and
data management capabilities for business models in the digital economy and to pro-
vide a high-level roadmap to translate business requirements into actions for data
management.
Digital business strategy
 Value proposition capabilities

Digital business capabilities  Value creation capabilities
for the business value chain  Value appropriation capabilities
 Data (-as-a-) service

Information service management  Information (-as-a-) service
for the business-IT alignment  Analytics (-as-a-) service
 Data management capabilities

 Data understanding &
Data management capabilities
transformation capabilities
for the data value chain
 Data delivery capabilities
Figure 4: Conceptual capability framework
Capabilities refer to a company’s abilities to acquire, utilize, and leverage its re-
sources and routines in order to achieve certain business objectives. They have also
been described as the “secret ingredient in explaining the development and mainte-
nance of competitive advantage” (Wu et al. 2010, p.722). Capabilities describe what a
company does (with a focus on what it should do) instead of describing how, why, or
where something is done. In doing so, capabilities describe the core functions of a
business. Of course, capabilities relate to other structural elements of the organization
like business processes, organizational roles, information, and other resources (see
Appendix for an illustration of this relationship).
9
The framework was developed throughout 2014 and early 2015 and was repeatedly discussed with the CDQ consorti-
um in the CDQ workshops. For example, preliminary versions of the model were presented and discussed in the CDQ
workshops and breakout sessions in Munich (April 2014), Stockholm (June 2014), Berlin (December 2014), and Interla-
ken (February 2015).

Furthermore, a more recent understanding views capabilities as being adaptive and
forward-looking. This implies that “dynamic” capabilities requires a “propensity to sense
opportunities and threats, to make timely and market-oriented decisions, and to change
[the] resource base” (Barreto 2009, p.271). Some of the capabilities in our capability
framework explicitly incorporate this dynamic aspect, but even those that do not should
not be seen as static in the light of today’s rapid technological progress and volatile
market environments. In the context of IS/IT and data management, capabilities are
understood as abilities related to IT infrastructure management, IT management, IT-
business partnerships, IT skill and experience management, etc. (Bharadwaj et al.
1999).
Capabilities can be a valuable approach for organizational planning as they span

departmental and functional boundaries and provide a more stable, implementation-
independent view of what the business should do than business processes usually do.
From a data management and IS/IT perspective, capabilities offer the opportunity to
highlight the contribution of individual projects to strategic business objectives and
therefore an approach for improved business-IT alignment.
Figure 5 shows the complete high-level capability framework:
 The upper layer of the figure lists the main high-level business capabilities
for the digital economy.
 The middle layer of the figure connects the business and data management
perspectives by a layer called “information service management”.
 The lower layer list critical data management capabilities from an information
processing perspective, a “data value chain”.
The three layers of the framework are described in the sections 5.1 to 5.3.

Digital business
Business capabilities
capability mapping for
for the
the business
business value
value chain
chain
Value proposition capabilities Value creation capabilities Value appropriation capabilities
Primary capabilities
 Smart hybrid product & service  Process digitization (advanced  Revenue model execution for smart
development automation & virtualization) hybrid products
 Product & service individualization  Multi-channel ecosystem connectivity
 Ecosystem control
 Business analytics & evidence-based
decision-making
Supp.
 Market sensing agility  Operational adjustment agility  Cost optimization and process &
cap.
 Data-oriented mindset & culture resource efficiency
Information service management

 Business capability specification and information service design
 Data (-as-a-) service;  Information (-as-a-) service;  Analytics (-as-a-) service
Data management
Data capabilities
value chain for the data value chain
execution
Data management capabilities Data understanding & transformation cap. Data delivery and exploitation cap.
operational cap.
Primary /
 Data collection and integration of  Ad-hoc, predictive, and prescriptive  Information service visualization
internal & external sources analytics processing  Self-service BI provisioning
 MDM and DQM across systems and
ecosystems
 Governance model and architecture  New databases and BI tools integration  Digital initiative ownership definition
Support
cap.
design for external and shared data  Analytics ability: relevant data
recognition and extraction
Figure 5: High-level capability framework for the digital economy
5.1 Business capabilities: the business value chain
The upper layer of the framework in Figure 5 summarizes essential business capabili-
ties for the digital economy. They are grouped along three common elements of busi-
ness models: value proposition, value creation, and value appropriation (cf. Timmers
1998; Al-Debei & Avison 2010). To be successful in the digital economy in the long run,
a company will possess multiple of these business capabilities. For companies at the
beginning of the digital journey, it will be necessary to prioritize these capabilities
based on their business strategy and to start with use cases from high-priority capabili-
ties. The “primary capabilities” are seen as being more closely related to the value-
creating aspects of a business and can thus lead to digital initiatives, whereas the
“support capabilities” assist in the efficient execution of the primary capabilities.
Primary business capabilities:

 Smart hybrid product and service development: Develop value propositions
featuring (a) a combination of services and products (“servitization”) and (b) the
integration of ICT into physical products (“smart” / “hybrid products”). This may
lead to a modular product structure.
 Product/service individualization: Customize product and service offerings
according to individual customer needs.
 Process digitization (advanced automation & virtualization): Establish
business process “digitization” by greatest possible level of automation and vir-
tualization throughout the entire organization (especially production processes,

cf. Industry 4.0). Technically, this requires concepts like cyber-physical systems
and the Internet of Things.
 Multi-channel connectivity to ecosystem: Be connected to all partners of the
company’s ecosystem (also beyond the traditional supply chain). Includes cus-
tomers (/ consumers), business partners (e.g. suppliers or co-creators of value),
and public stakeholders. This connectivity covers the capability for inbound and
outbound communication via multiple channels as well as a superior under-
standing of each partner based on all relevant internal and external information
sources.
 Ecosystem control: Translate ecosystem knowledge and connectivity into ac-
tual control over suppliers and other partners in order to achieve business
goals.
 Business analytics and evidence-based decision making: Achieve well-
informed decision making and problem solving based on an adequate and reli-
able data (analysis) base in all areas of the organization. This envisions ena-
blement of all organizational members to decide and act on the basis of high-
quality and timely information. It also requires that people are enabled to im-
plement decisions and act in a timely manner.
 Revenue creation models for hybrid modular products: Develop and oper-
ate sustainable revenue models (e.g. pricing schemes) for the new smart hybrid
product and service portfolio.
Supporting business capabilities:

 Innovation and market capitalizing agility: Develop an entrepreneurial organ-
izational mindset that is able to quickly spot trends in the market and to develop
innovative products and services.
 Operational adjustment agility: Enable flexible and fast implementation of op-
erational changes (e.g. supply chain agility) within the organization.
 Data-oriented mindset and culture: Understand the relevance of data-driven
problem solving and decision-making throughout the entire organization (among
IT and non-IT employees) and develop the respective mindset. Implies aware-
ness of the relevance of digitization for each employee’s area of work.
 Cost optimization & scalability of ordinary capabilities / resources: Be able
to utilize all internal resources and basic capabilities in a cost-efficient manner
and with adequate flexibility. This requires being able to rapidly scale up, down,
and/or out depending on competitive demands.

5.2 Information services: digital solution enablers
The middle layer of Figure 5 is the “information service management”, which deals
with transforming the requirements from the high-level business capabilities into actual
solutions (“information services”), which are to be delivered by data management. An
information service is a data-related solution developed by data management to sup-
port a specific business capability. It can be provided either to internal customers from
the business or even to external customers (e.g. for supporting a hybrid product).
There may be more than one information service for each business capability.
As a first step, the development of information services requires that the high-level ca-
pabilities from Figure 5 are broken down into concrete lower-level business capabili-
ties. Whereas the high-level business capabilities are generic and not industry specific,
the lower-level business capabilities represent major elements of digital use cases or
focus on the goals of major business processes. Each business capability has certain
data needs or information requirements, which are implemented by its information
service(s). These information requirements need to be analyzed along with several
other functional and non-functional requirements, e.g. regarding analytics abilities (if
any), delivery/access speed of a service, the automation degree of a service, and data
privacy and security. Possible categories of information services are:
 Data (-as-a-) service: Pure data element or object without special context (e.g.
a master data value or an invoice number).
 Information (-as-a-) service: Data which is enhanced with some context, a col-
lection of data objects in a certain context (e.g., a report), or an abstract repre-
sentation of a business context (like in an architecture diagram or process
model).
 Analytics (-as-a-) service: Data which is prepared for advanced decision-
support (e.g., as predictive or prescriptive analytics).
There may be, of course, other information services, which will be identified and speci-
fied by further research.
5.3 Data management capabilities: the data value chain
The bottom layer of Figure 5 summarizes a set of five primary and four supporting data
management capabilities that are necessary to implement digital business models.
They are enablers of the information services described above. Basically, these data
management capabilities summarize the table in chapter 4, which described the new
and extended data management requirements for big data and the digital economy.
The primary (operational) data management capabilities cover capabilities for all stag-
es of information processing from data capture and data management, over data trans-
formation, to data delivery (the “data value chain”). The supporting data management
capabilities cover governance capabilities.

Primary (operational) data management capabilities:
 Data collection and integration of internal & external sources: Ensure ef-
fective data integration from different internal and external sources in various
formats.
 MDM and DQM across systems and ecosystem: Ensure trustworthy master
data management (MDM) for the central business entities across all systems
and, if necessary, also spanning the ecosystem of the company. Data quality
management (DQM) and adequate data privacy and security management also
need to be in place for core data objects.
 Ad-hoc, predictive & prescriptive analytics processing: Ensure sophisticat-
ed data analytics modeling and execution, which is supported by adequate
software and hardware for relevant digital decision-support and problem-solving
scenarios.
 Information service visualization: Deliver data (analysis) results in appropri-
ate (i.e., easily understandable) formats across adequate platforms (e.g., on
laptops as well as on mobile devices).
 Self-service BI: Empower business users to perform desired analyses on their
own.
Supporting data management capabilities:

 Governance model and architecture design for external and shared data:
Design, implement and run new data governance concepts, which account for
more diverse data sources. Moreover, design adequate information and system
architectures in view of growing diversity of deployment methods and tools (e.g.
cloud services or open source software).
 New databases and BI tools integration: Evaluate, integrate, and run new
databases and tools (especially for analytics, speed, and scalability require-
ments) within the current IT architecture.
 Analytics ability: relevant data recognition and extraction: Develop em-
ployees or teams with the necessary technical and business knowledge and
skills to extract the relevant data out of the “big data lake” and to prepare it for
business decision making and problem solving.
 Digital initiative ownership definition: Define and assign clear roles and re-
sponsibilities for digital initiatives within the organization, bridging functional
boundaries.

6. High-level roadmap for digital transformation
Data managers in charge of supporting digital initiatives may use the capability frame-
work as a guideline for their work. A three-step roadmap applies the framework (see
Figure 6).
1
Business Prioritize & select digital business capabilities
capabilities for the business value chain
2
Information Analyze data requirements & design information services
services for the business-IT alignment
3
Data management Assess & develop data management capabilities
capabilities for the data value chain
Figure 6: Roadmap towards capability-driven digital transformation
Step 1: Prioritize and select digital business capabilities

Companies will usually have to prioritize the business capabilities mentioned in Fi-
gure 5 and select a limited number of them to start an initiative. Therefore, they need to
identify and select appropriate use cases or digital initiatives. A use case should
have a high expectable buy-in from the organizational departments or units affected.
Figure 7 presents possible use cases for the different business capabilities.
Value proposition Value creation Value appropriation

 Smart hybrid product & service  Process automation & digitization /  Revenue model execution for
development virtualization smart hybrid products
 Product/service individualization  Multi-channel ecosystem
connectivity
 Ecosystem control
 Business analytics & evidence-
based decision-making
Digital use case
 Route optimization
 Smart pill 
examples
On-shelf-availability
 Smart machine  Compliance mgmt.  Catalog pricing optimization
 Smart watch  Online marketing campaign  Individual discount models
  mass customization mgmt.
 Vendor-managed inventory
Figure 7: Use case examples for digital business capabilities

Step 2: Analyze data requirements and design information services
For one of the specific use cases determined in Step 1, one or more specific (lower-
level) business capabilities need(s) to be specified. Based on this specification, one
or more information service(s) meeting the essential information requirements of
the business capability should be designed. Figure 8 presents a set of requirements
and hints at metadata that should be considered in the process of information service
design.
Information service design
Data and information requirements
Delivery and Automation

Scalability Data privacy Data quality
access speed degree
Data lineage Data credibility Analytics /

Flexibility Data security
transparency transparency algorithms
Figure 8: Definition of requirements for information service design
Step 3: Assess and develop data management capabilities

Finally, the information service requirements from Step 2 should be mapped against
the data management capabilities currently available in the organization. It should be
determined which of the data management capabilities are most relevant for the speci-
fied information service(s). Subsequently, the as-is level of these capabilities can be
assessed to develop a project plan (e.g. to determine whether software, hardware, or
skills need to be acquired) in order to support the information service(s).
The capability model with its implementation roadmap presented will be tested and
revised in the course of practical projects.

7. Summary and outlook
Data may not really be “the new oil”10 since unlike oil, data does not vanish after con-
sumption, but instead increases its value upon multiple use, processing, and sharing.
However, data certainly fuels the digitization process that is currently underway. As the
drivers in the social, business, and technological environment and the short case stud-
ies have shown, data becomes increasingly important even for traditional “analog”,
non-IT companies. The growing importance of data as a resource implies a growing
significance of data management.
This report outlined today’s most relevant drivers of digitization and highlighted new
and extended requirements towards data management, which can be expected to be
relevant for the upcoming decade. It then presented a business and data management
capability framework for digital business models, which companies may use on their
journey towards the digital economy. Still, plenty of research remains to be done. Top-
ics on the CC CDQ research agenda in the upcoming years include:
 specifying the lower-level business and data management capabilities by

means of an application of the roadmap to real-life cases,
 exploring practical data-driven decision support, hybrid digital product, and big
data analytics scenarios in detail.
 developing a more detailed methodology for the translation of use cases to
concrete data management actions via information services,
 analyzing possible path dependence relationships among capabilities,
 conducting more case studies to identify differences and similarities across dif-
ferent industries, and
 observing the developments regarding database technologies, BI tools, and
other technological drivers and their implications for data management.
In the future, data management will take on an important role in supporting business
functions to implement digital initiatives. Data management capabilities will become
increasingly important for major business processes – and for the long-term success of
the business itself.
Digitization is already transforming entire industries. Ignoring this development and not
leveraging the potentials of improved knowledge of the customer, greater control over
supply chains, and innovative “smart” products and services will no longer be an alter-
native, as competitors and new players in the market definitely be aware of the new
opportunities.
10
See http://www.wired.com/2014/07/data-new-oil-digital-economy/ and
http://www.forbes.com/sites/perryrotella/2012/04/02/is-data-the-new-oil/ vs. https://hbr.org/2012/11/data-humans-and-
the-new-oil/

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Appendix
Hype cycle for emerging technologies
Figure 9: Hype cycle for emerging technologies (LeHong & Fenn 2013, p. 10)

Framework for Corporate Data Quality Management
Strategy
Strategy for CDQ
Organization
CDQ Controlling
Organization CDQ Processes and

for CDQ Methods
local global
Corporate Data Architecture
Applications for CDQ

Systems
11
Figure 10: CDQ Framework (Otto et al. 2011, p. 10)
DAMA data management functions

Background on the data management functions according to the DAMA “Guide to the
Data Management Body of Knowledge” (DAMA-DMBOK), (DAMA 2009).
Data manage- Definition and Goals

ment function
1. Data govern- Definition: The exercise of authority and control (planning, moni-
ance toring, and enforcement) over the management of data assets.
Goals:
 To define, approve, and communicate data strategies, pol-
icies, standards, architecture, procedures, and metrics.
 To track and enforce regulatory compliance and conform-
ance to data policies, standards, architecture, and proce-
dures.
11
For more information please also see EFQM 2011.

 To sponsor, track, and oversee the delivery of data man-
agement projects and services.
 To manage and resolve data related issues.
 To understand and promote the value of data assets.
2. Data architec- Definition: Defining the data needs of the enterprise and designing
ture mgmt. the master blueprints to meet those needs.
Goals:
 To plan with vision and foresight to provide high quality da-
ta.
 To identify and define common data requirements.
 To design conceptual structures and plans to meet the cur-
rent and long-term data requirements for the enterprise.
3. Data develop- Definition: Designing, implementing, and maintaining solutions to
ment meet the data needs of the enterprise.
Goals:
 Identify and define data requirements.
 Design data structures and other solutions to these re-
quirements.
 Implement and maintain solution components that meet
these requirements.
 Ensure solution conformance to data architecture and
standards as appropriate.
 Ensure the integrity, security, usability, and maintainability
of structured data assets.
4. Database op- Definition: Planning, control, and support for structured data as-
erations mgmt. sets across the data lifecycle form creation and acquisition
through archival and purge.
Goals:
 Protect and ensure the integrity of structured data assets.
 Manage availability of data throughout its lifecycle.
 Optimize performance of database transactions.
5. Data security Planning, development, and execution of security policies and
mgmt. procedures to provide proper authentication, authorization, ac-
cess, and auditing of data and information.
Goals:
 Enable appropriate, and prevent inappropriate, access and
change to data assets.
 Meet regulatory requirements for privacy and confidentiali-
ty.
 Ensure the privacy and confidentiality needs of all stake-
holders are met.
6. Reference & Definition: Planning, implementation, and control activities to en-
master data sure consistency with a “global version” of contextual data values.
mgmt.

Goals:
 Provide authoritative source of reconcile, high-quality mas-
ter and reference data.
 Lower cost and complexity through reuse and leverage of
standards.
 Support business intelligence and information integration
efforts.
7. Data ware- Definition: The planning, execution and oversight of policies, prac-
housing & Busi- tices and projects that acquire, control, protect, deliver, and en-
ness Intelligence hance the value of data and information assets.
(DWH & BI) Goals:
mgmt.  To understand the information needs of the enterprise and
all its stakeholders.
 To capture, store, protect, and ensure the integrity of data
assets.
 To continually improve the quality of data and information.
 To ensure privacy and confidentiality, and to prevent unau-
thorized or inappropriate use of data and information.
 To maximize effective use and value of data and infor-
mation assets.
8. Document & Definition: Planning, implementation, and control activities to
content mgmt. store, protect, and access data found within electronic files and
physical records (including text, graphics, images, audio, and vid-
eo).
Goals:
 To safeguard and ensure the availability of data assets
stored in less structured formats.
 To enable effective and efficient retrieval and use of data
and information in unstructured formats.
 To comply with legal obligations and customer expecta-
tions.
 To ensure business continuity through retention, recovery,
and conversion.
 To control document storage operation costs.
9. Metadata Definition: Planning, implementation, and control activities to ena-
mgmt. ble to high quality, integrated meta-data.
Goals:
 Provide organizational understanding of terms, and usage
 Integrate meta-data from diverse source
 Provide easy, integrated access to meta-data
 Ensure meta-data quality and security.
10. Data quality Definition: Planning, implementation, and control activities that
mgmt. (DQM) apply quality management techniques to measure, assess, im-
prove, and ensure the fitness of data for use.

Goals:
 To measurably improve the quality of data in relation to de-
fined business expectations.
 To define requirements and specifications for integrating
data quality control into the system development lifecycle.
 To provide defined processes for measuring, monitoring,
and reporting conformance to acceptable levels of data
quality.
Business capabilities
Organizational
performs role
where
has
implements implements
Process Capability Strategy
how what why
needs
used in Resource
(information,
IT system, …)
Figure 11: Simplified view on business capabilities and their relation to other organiza-
tional design areas
organization
Insurance
clerk Insurance
data analyst External
scoring agent
Line manager
processes
Search Insurance
customer premium
history determination
Insert data
into calcu-
information
lation tool
Customer
Handover to credit risk Insurance
resources Insurance
line manager score history product
systems
master data
CRM
BI
… frontend WWW
Figure 12: Illustrative example of a business capability and its relationships from the
insurance industry

Goals of digital initiatives
Figure 13: “What will be part of your digital strategy in the next 12 months?” (Healey
2014, p.22)
Figure 14: “Which business problems are addressed big data?” (Kart et al. 2013, p.8)

Acknowledgement
This White Paper is an outcome of the joint work carried out in the CC CDQ. Managers
from across Europe have contributed to the origination process of the document by
their active participation in the CC CDQ consortium workshops throughout 2014 and
early 2015 as well as through their constructive feedback. The authors would therefore
like to express their gratitude to the following people from the extended CC CDQ net-
work:
Company name Contributor name
ABB Ltd. Jan-Olav Boeriis
AstraZeneca PLC Adrian Barrass
Bayer AG Gerhard Gripp (Bayer CropScience)

Hubert Sion (Bayer CropScience)
Ben Hallez (Bayer Healthcare)
Philip Windmüller (Bayer Healthcare)
Beiersdorf AG Andreas Schierning
DB Netz AG Artur Jundt

Regina Klimmek
Drägerwerk AG & Co. KGaA Eva Schultze
eCl@ss e.V. Henning Uiterwyk
Ericsson AB Yun Ma
Festo AG & Co. KG Matthias Burger

Josef Huber
Andreas Lehmann
Merck KGaA Björn Ebeling

Johannes John
Jürgen Jost
Nestlé SA Karsten Muthreich
Novartis Pharma AG Alessio Keller

Osram GmbH Britte Lupp
Guillermo Spitzner
Robert Bosch GmbH Matthias Dod

Dr. Jürgen Kokemüller
Klaus Pfreundner
SAP AG Carsten Danner

Dr. Albrecht Ricken
Schaeffler AG Markus Rahm
Schweizerische Bundesbahnen SBB Dominic Moser

Dr. Alexander Schmidt
Swisscom (Schweiz) AG Roger Kipfer
ZF Friedrichshafen AG Dr. Henning Möller

Timo Neumann
Note: Company and contributor names are listed in alphabetical order.

Authors
Rieke Bärenfänger
Research Associate
rieke.baerenfaenger@unisg.ch University of St. Gallen
Tel.: +41 79 964 27 11 Institute of Information Management
CC Corporate Data Quality
http://cdq.iwi.unisg.ch/en/
Prof. Dr.-Ing. Boris Otto

Director Information Management & Fraunhofer-Institut für Materialfluss
Engineering und Logistik IML
Dr. Dimitrios Gizanis

Managing Director CDQ AG

Copyright
Title: © James Thew - Fotolia.com
ISBN: 978-3-033-05046-4
May 2015
CDQ AG | Lukasstrasse 4 | CH 9008 St. Gallen | +41 71 544 10 36 | www.cdq.ch
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Business and Data Management Capabilities for the Digital Economy

Technical Report · June 2015

FlexiNet View project

Digital Business Engineering View project

The user has requested enhancement of the downloaded file.

Partner companies of the CC CDQ

Note: The overview comprises previous and current partner companies.

2 Capabilities in the Digital Economy

About the CC CDQ ........................................................................................... 2

Capabilities in the Digital Economy 3

4 Capabilities in the Digital Economy

More precisely, the report

 contributes to a common understanding of the major technological, economic

Capabilities in the Digital Economy 5

Figure 1: Importance of digitization for European businesses: opinion of European C-

A survey conducted during the CC CDQ workshop in Stockholm, Sweden, in June

The underlying notion of digitization is that information technology is increasingly per-

6 Capabilities in the Digital Economy

As a response to this development, responsible (data) managers face three main

1. Understand the drivers and characteristics of digitization with its opportuni-

Capabilities in the Digital Economy 7

Society Business Technology

 Individualization  Consumer centricity and multi-  Cyber-physical systems and

Figure 2: Drivers of digitization

2.1 Social drivers

8 Capabilities in the Digital Economy

Capabilities in the Digital Economy 9

Social media and Web 2.0

2.2 Business drivers

Consumer centricity and multi-channel connectivity

10 Capabilities in the Digital Economy

Hybrid products and product platforms

New business models

Capabilities in the Digital Economy 11

2.3 Technological drivers

Cyber-physical systems and the Internet of Things

“Big data” technology: in-memory computing, Hadoop, and cloud

It is commonly held that today’s ever-increasing amount of data is a) potentially valua-

12 Capabilities in the Digital Economy

In-memory database technology, also called in-memory data management or in-

Capabilities in the Digital Economy 13

Augmented and virtual reality

14 Capabilities in the Digital Economy

Capabilities in the Digital Economy 15

CC CDQ: The Corporate Data League – a collaborative data management plat-

16 Capabilities in the Digital Economy

Lanxess: Margin simulation with in-memory computing

Bayer HealthCare: Advanced customer data integration

Otto Group: Predictive analytics for supply chain management

Capabilities in the Digital Economy 17

18 Capabilities in the Digital Economy

Data management New and extended data management requirements follow-

1. Data governance  Define ownership of digital innovation topics by estab-

Capabilities in the Digital Economy 19

3. Data develop-  Ensure integrity, usability, and maintainability not just of

4. Database opera-  Prepare for “big data requirements”: optimize scalability

20 Capabilities in the Digital Economy

9. Metadata  Enhance metadata for increased business process au-