CDMP Chapter 1

Chapter 1: Data Management.

1. Introduction

Data is now universally acknowledged as a vital enterprise asset, providing insights

into customers, products, services, and operations. However, despite its recognition,
many organizations do not actively manage data as a valuable resource from which
continuous value can be derived. Managing data effectively requires careful planning,
coordination, and leadership, as well as technical and business processes to ensure
its lifecycle is managed from inception to disposal.

Data management, as defined in the DAMA-DMBOK, encompasses the policies,

procedures, and practices necessary to control, protect, deliver, and enhance the
value of data and information throughout its lifecycle. This involves technical roles
from IT as well as non-technical roles from business functions to ensure that data is
high-quality, secure, and used to meet organizational objectives. With data being
compared to assets such as currency or oil, organizations are recognizing that proper
management can lead to significant competitive advantages.

1.1 Business Drivers

Data and information have become essential business drivers, enabling organizations
to make informed decisions, improve processes, and create innovative products.
Organizations with well-managed, high-quality data are better positioned to make
accurate decisions. On the other hand, organizations that fail to manage their data
effectively face missed opportunities, inefficiencies, and regulatory risks.

With the rapid shift to a data-driven economy, organizations are increasingly relying
on data governance, big data, and analytics to deliver business value. These business
drivers mandate an approach that integrates data management into the strategic
goals of the organization, allowing for smarter decision-making and faster responses
to market changes.

1.2 Goals

Data management aims to ensure that data is effectively utilized for business
purposes while maintaining its integrity and security. Key goals include:

• Satisfying stakeholders’ information needs

• Ensuring data integrity, confidentiality, and quality
• Preventing unauthorized access or manipulation
• Maximizing data value through strategic initiatives and decision-making

By aligning data management with business goals, organizations can derive greater
value from their data assets and achieve operational efficiencies.

2. Essential Concepts

2.1 Data

Data refers to raw facts and figures that are gathered and stored for processing. It
can include anything from numbers and measurements to text and images. Data is
the foundation of organizational decision-making, forming the basis for analysis and
insights that lead to informed actions.

2.2 Data and Information

Data is raw, unprocessed information. When processed and organized, it becomes

information, which provides context and meaning to the raw data. Organizations rely
on both data and information to support decision-making processes, with data
forming the base and information providing insights into the context of that data.
2.3 Data as an Organizational Asset

Organizations are increasingly viewing data as a critical asset, comparable to financial

or physical resources. However, unlike physical assets, data is non-depletable,
meaning that it can be used by multiple individuals simultaneously without losing its
value. This unique characteristic makes it essential to properly govern and manage
data to ensure it provides ongoing value.

2.4 Data Management Principles

Several key principles guide effective data management:

• Data is an Asset: Organizations must recognize data as a valuable asset that needs to
be governed and protected.
• Economic Value of Data: Properly managed data has measurable economic value,
which can be harnessed through effective governance and management.
• Quality Assurance: Ensuring that data is accurate, consistent, and timely is critical to
effective decision-making.
• Cross-Functional Collaboration: Data management requires input and coordination
across multiple departments, including IT, legal, and business units.
• Enterprise Alignment: Data management practices should align with organizational
goals to deliver maximum value.

2.5 Data Management Challenges

Data management faces unique challenges compared to other forms of asset

management. Some of the key challenges include:
2.5.1 Data Differs from Other Assets

Unlike physical assets, data can be used repeatedly without being consumed. This
means that managing data requires different strategies and approaches to those
used in managing traditional resources.

2.5.2 Data Valuation

Assigning value to data is difficult, as its value can change depending on how it is
used, its quality, and the context in which it is analyzed. Emerging methods are being
developed to standardize data valuation, but it remains a complex task.

2.5.3 Data Quality

Ensuring that data is of high quality is essential for effective decision-making. Poor-
quality data can lead to operational inefficiencies, financial losses, and compliance
risks.

2.5.4 Planning for Better Data

Data management requires ongoing planning and the implementation of data

governance and architecture to ensure that data is well-organized and of high quality.

2.5.5 Metadata and Data Management

Metadata—data that describes other data—plays a critical role in organizing and

managing data. Metadata helps users understand the context, usage, and
relationships of data within an organization.
2.5.6 Data Management is Cross-Functional

Effective data management involves collaboration between multiple teams across an

organization, from business functions to IT, to ensure that data is effectively
governed and used.

2.5.7 Establishing an Enterprise Perspective

Data management must be aligned with the overall strategic goals of the
organization. Without this alignment, data management efforts can become
fragmented and fail to deliver value.

2.5.8 Accounting for Other Perspectives

When managing data, it is essential to account for both internal and external
perspectives, including customer needs, regulatory requirements, and industry
standards.

2.5.9 The Data Lifecycle

The data lifecycle consists of the stages data goes through from its creation to its
disposal. Each stage must be actively managed to ensure data remains useful, secure,
and compliant with regulations.

2.5.10 Different Types of Data

Data can be structured (organized in a defined format such as databases),

unstructured (text, emails, etc.), or semi-structured (XML, JSON). Each type requires
different management approaches.
2.5.11 Data and Risk

Managing data involves mitigating risks such as data breaches, unauthorized access,
and loss. Ensuring the security and privacy of data is a key aspect of data
management.

2.5.12 Data Management and Technology

Advances in technology have had a significant impact on data management, with new
tools and platforms emerging to help organizations manage data more effectively.

2.5.13 Effective Data Management Requires Leadership and Commitment

Strong leadership and commitment from top management are necessary for
establishing and maintaining effective data management practices.

2.6 Data Management Strategy

A comprehensive data management strategy is essential to align data management

practices with organizational goals. This strategy should define clear policies,
governance frameworks, and processes for managing data across its lifecycle. By
implementing a robust strategy, organizations can ensure their data management
efforts are focused and effective.

3. Data Management Frameworks

3.1 Strategic Alignment Model

The Strategic Alignment Model (SAM), developed by Henderson and Venkatraman in

1999, provides a comprehensive way to view the relationship between data and
business strategy. This model highlights how an organization’s information systems
strategy aligns with its overall business strategy. The core focus of SAM is on the
interaction between data and business processes.

The model includes four key domains:

• Business Strategy: Refers to the overall strategy of the business, including market
positioning, customer relationships, and value creation.
• IT Strategy: Relates to the technology infrastructure that supports business
operations and data management.
• Organizational Infrastructure and Processes: Focuses on how the business
organizes its activities, resources, and people to meet strategic goals.
• IT Infrastructure and Processes: Deals with the physical systems and technologies
that support data management and access.

SAM helps organizations understand how to optimize data usage in alignment with
business goals. For example, organizations with a focus on innovation may prioritize
data analytics and research capabilities, while those focused on customer service
may invest more in data quality and integration.

3.2 The Amsterdam Information Model

The Amsterdam Information Model (AIM), also known as the 9-cell model, provides a
strategic view of business and IT alignment. The model emphasizes a middle layer,
addressing planning and architecture to bridge the gap between business strategy
and operational execution. This model acknowledges the complexity of information
systems and recognizes the need for structured communication between business
and IT functions.

AIM identifies several pillars crucial for information governance and data quality,
ensuring that both tactical and strategic aspects of data management are accounted
for. The model encourages organizations to focus on information architecture,
planning, and business operations alignment.

3.3 The DAMA-DMBOK Framework

The DAMA-DMBOK Framework provides a comprehensive view of the functions

required for effective data management. At its core, this framework is represented
visually as the DAMA Wheel, which depicts the eleven knowledge areas of data
management:

• Data Governance
• Data Architecture
• Data Modeling and Design
• Data Storage and Operations
• Data Security
• Data Integration and Interoperability
• Document and Content Management
• Reference and Master Data
• Data Warehousing and Business Intelligence
• Metadata
• Data Quality

Each knowledge area within the DAMA Wheel is essential for mature data
management practices. The Environmental Factors Hexagon complements the
DAMA Wheel by illustrating the interaction between people, processes, and
technology, ensuring that data management goals align with organizational
objectives.
3.4 DMBOK Pyramid (Aiken)

Peter Aiken’s DMBOK Pyramid model emphasizes the hierarchy of data management
practices. At the base of the pyramid are foundational activities such as data
modeling, metadata management, and data quality assurance. These core functions
provide the structure necessary to advance to more complex tasks like business
intelligence and data analytics.

Aiken’s model encourages organizations to build strong foundational practices before

advancing into higher-level data management activities. It suggests that without a
strong foundation in core areas like data quality and governance, advanced analytics
and data science efforts will struggle to produce reliable results.

3.5 DAMA Data Management Framework Evolved

The evolved DAMA Data Management Framework reflects recent advances in data
management practices and technology. It integrates the core activities outlined in the
DAMA Wheel and places greater emphasis on modern data practices, such as data
science, big data, and predictive analytics.

The updated framework highlights how core functions like data governance,
architecture, and quality management support emerging practices in data
monetization, artificial intelligence (AI), and machine learning (ML). It also underscores
the importance of integrating these new technologies within the broader scope of
enterprise data management.

4. DAMA and the DMBOK

DAMA International created the DAMA-DMBOK as a structured framework for data

management professionals. The DMBOK is designed to:
 • Provide a functional framework for implementing enterprise data management
practices
• Establish a common vocabulary for discussing data management principles and best
practices
• Serve as a comprehensive reference for data management certifications, such as the
Certified Data Management Professional (CDMP)

The DMBOK is structured around the eleven knowledge areas discussed earlier, and
each chapter within the book focuses on a specific area. For example, Chapter 3
focuses on Data Governance, which provides oversight and guidance on how data is
managed across the enterprise. Other chapters address topics like data architecture,
data security, and metadata management.

This framework serves as the backbone for data management professionals, guiding
the implementation of best practices across various industries

Important Notes:

1. Data as an Organizational Asset: ISO Standard for Asset Management

• ISO 55000/55001 is the international standard concerned with asset management,

which applies to data as an asset.
• ISO 27001 covers information security management, while ISO 8000 and ISO 25000
focus on data quality and software quality, respectively.

2. Data Management Goals (DMBoK)

• A key goal of Data Management is to ensure that data can be used effectively to add
value to the enterprise.
 • Goals must focus on enabling data to drive business value and not merely on
legislative or technical constraints.

3. Data Management Disciplines

• The following are recognized disciplines of Data Management:

o Data Quality Management
o Document and Content Management
o Data Security Management
o Data Governance
• Data Virtualization is not listed as a discipline in the DAMA DMBoK.

4. DAMA Wheel Contents

• The DAMA Wheel contains Knowledge Areas that cover the entire spectrum of data
management practices.
• These knowledge areas are distinct from processes or specific initiatives and focus on
core competencies in data management.

5. SMART Objectives

• SMART stands for:

o Specific
o Measurable
o Achievable
 o Realistic
o Timely
• This acronym helps guide objective-setting in projects and programs, ensuring goals
are clear and actionable.

6. Data Management Goals (DMBoK)

• Data Management goals include ensuring data quality, security, and availability.
• Understanding process needs of the enterprise is not specifically listed as a data
management goal.

7. ROT Data (DMBoK)

• ROT stands for data that is:

o Redundant
o Obsolete
o Trivial
• The goal is to minimize ROT data to improve data quality and efficiency.

8. Definition of Information

• Information is defined as data in context. It gains value when it is organized and

processed to support decision-making.
9. Data as a Unique Asset

• Data differs from other assets because it can be used yet still retain value, meaning it
can be reused without depleting its utility.

10. Environmental Components of Data Management

• Practices & Techniques are valid environmental components in the context of data
management, guiding how data is handled and maintained.

11. DMBoK Knowledge Areas

• Big Data & Data Science is not a separate knowledge area in DMBoK v2.
• Core areas include Data Governance, Master & Reference Data Management, Data
Quality, and Data Security.

12. Producer of the DMBoK

• The Data Management Association (DAMA) is responsible for producing the DMBoK,
which provides a comprehensive guide to data management practices.

13. Components of a Data Management Strategy

• Identifying individuals for Data Management roles is not a component of a Data

Management strategy.
• Core components include a compelling vision, role descriptions, a business case, and
an implementation roadmap.
14. Maintaining Stakeholder Commitment

• Data Management professionals maintain stakeholder commitment through

continuous communication, education, and promotion of the value of data and
information assets.

15. Enterprise Data Standards

• Data standards should promote consistent results but must be reviewed and updated
periodically to remain relevant and effective.

16. Why Information Needs to Be Managed

• Information is an asset of the organization and needs to be managed to ensure it

delivers value and is protected.

17. Information Lifecycle

• The Information Lifecycle exists beyond the Systems Delivery Lifecycle and applies to
data management throughout the entire lifecycle, from creation to disposal.
18. Outsourcing Information Management

• When outsourcing information management, organizations can transfer control but

not accountability, ensuring they retain ultimate responsibility for data compliance
and security.

19. Causes of Data Redundancy or ROT

• Poor data management practices and various other issues, such as server errors or
human error, lead to data redundancy or "data rot."

20. Definition of the Data Lifecycle

• The data lifecycle represents the path along which data moves from its point of origin
to usage, storage, and disposal, encompassing the management of data through its
entire existence.

21. Components of the Strategic Alignment Model

• Stakeholder Management is not part of the Strategic Alignment Model.

• The model includes Business Strategy, IT Strategy, Information Systems, and
Organization and Process.

22. Common Stages in the Lifecycle of Information Assets (DMBoK)

• Common stages include Plan, Specify, Enable, Create and Acquire, Maintain & Use,
Archive & Retrieve, and Purge, representing the lifecycle management of data.
23. Advanced Data Practices (DMBoK)

• Advanced data practices include:

o Analytics
o Mining
o Big Data
o Warehousing
• Data Quality is not considered an advanced practice; it is foundational in data
management.

24. Parts of the Data Lifecycle in the SDLC (DMBoK)

• The parts of the Data Lifecycle integral to the Systems Development Lifecycle (SDLC)
include Plan, Specify, Enable, among others that focus on data creation, usage, and
disposal.