Defensible DisposalImprove Information Economics, Cut Costs and Risks.

Roger Johnston – ILG Strategy Leader Europe

Information Lifecycle Governance

Information has value. It has cost. It creates risk.

Do you know its cost? Its value? Its risk?

If not, how lucky is your organization?

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DISPOSE OF UNNECESSARY DATA

Hold & Collect Evidence

Archive for Value & Dispose

Enterprise Information

Has Business

Utility25%

Regulatory Record

Keeping

5%

69%

%s based on CGOC Summit 2012 Survey

Everything Else

Subject to Legal Hold 1% Cost & Risk

ReductionEnables Disposal

Cost ReductionNormalizes growth curve

Retain Records & Dispose

Very Simple Savings Proposition: Dispose of Unnecessary Data

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Information Economics: Value Realized Less Cost & Risk IncurredKey To Optimizing Value: Link Supply to Demand

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• Customer, product and market information that drive shareholder value

• Evidentiary obligation to keep as potential or actual evidence

• Privacy obligations to dispose of unnecessary data or protect with certain standards

• Application portfolio• Collaboration and office tools• Messaging• Storage• Back up and D/R

• Regulatory duty to retain information

• Laws for information in the countries we do business in

BUSINESS VALUE

DUTY & RISK

DUTY & RISK

INFORMATION ASSETS

DEMAND: what the organization says it needs SUPPLY: what IT supplies

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Most organizations struggle to align Supply to Demand:Information value declines over time, but cost and risk do not

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Cost

Risk

Value Cost-to-Value Gap

Risk-to-Value Gap

1 Source: Big data: The next frontier for innovation, competition, and productivity McKinsey & Company, 2011 Study2 CGOC 2012 Summit Survey3 Gartner e-discovery Report

• Information volume doubles every 18-24 months in most organizations• 90% of the world's

information was created in the last 2 years1

• It costs $18,000 to do e-discovery on 1 gigabyte3

• e-discovery consumes as much as half of litigation budget

• $4M to store 1PB and app cost materially adds to run rate• Data storage consumes

growing share of budget; sunsetting too slow

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Knows duties for information. How do I meet legal obligations more efficiently and reduce legal risk?

Knows value of information.How do we find information of value and use it to make better decisions?

Knows duties for information.How do I go from physical to digital records management?

Has the information, but no idea what duties and value it has.How do I deal with doubling data and shrinking budgets?

DUTY

DUTY

VALUE

EFFICIENCY

Mutually dependent stakeholders, low awareness of root cause issues

Antiquated or disconnected processes; stand-alone tools/markets for each stakeholder which treat symptoms

Places legal holds by name of individual employee involved. Stand-alone tracking. Fears improper disposal, struggling with legal cost but doesn't care about IT cost.

Uses it while needed, then forgets it. Asking for search and analytics and mobile.Frustrated by high chargeback reports. Wonders why IT can't go faster to get business apps on iPad and innovate for customers.

Defines retention by record “codes” in 150 page PDF schedule; wants repository for records (5%).Doesn't incorporate business need into schedule. Considers job done when schedule hits intranet.

Organizes data by system mnemonic.Guessing what legal wants, inventing retention policies, no way to tie 500 lawsuits and 6000 laws and business value to 8000 systems and servers.

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Demand Often Drives Costs to Exceed the Value of Information:Dependent but disconnected process are root cause

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2 Retention schedule limited to sub-set of information, defined by record code

Often doesn't reflect actual business team's perceived value; not stress tested by deletion

3 Data not managed by person or record code, so no ability to tie retention and holds to most data. Must assume all data of same value.

1 Holds defined by person (not data or record), legal has limited visibility to environment so holds are over-broad and difficult to enforce

Form/Function Mismatch Also Drives Additional Cost and Risk: Stakeholders Can't Figure Out What to Keep, So They Keep it All

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Recognize the Symptoms of Poor Information Economics

• Unable to find what they need

• Over-pay for legal and IT services

• Excess data floods ediscovery but doesn't reduce risk of sanctions

• Privacy duties impossible to meet as tide rises

• Can't dispose of any data or sunset apps effectively

• Guesses what business, legal and regulators really want

• Focused only on regulated information

• Duplicates data to comply, unable to provide IT and business with value

Can't get value

Over pays for duties

Hope it works out

Over supplies legal, under supplies business

No link from what we VALUE to what we DEMAND – leads to over SUPPLY Business under-served, legal flooded with data, and IT over-pays for infrastructure

• Data is held, retained, archived and stored in perpetuity because there is not real tie between duties, value and assets

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ILG Process

A Employees on Legal Holds

B Data on Legal Hold

C Hold publication

D Evidence Collection

E Evidence Analysis & Cost Controls

F Legal Record

G Master Retention Schedule & Taxonomy

H Departmental Information Practices

I Realize Information Value

J Secure Information of value

K Privacy & Data Protection

L Data Source Catalog & Stewardship

M System Provisioning

N Active Data Management

O Disposal & Decommissioning

P Legacy Data Management

Q Storage Alignment

R Audit

Capability, maturity and transparency are economically deterministic

Know the Specific Processes That Drive Information Economics

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No effective means for disposing of unnecessary data today – retention schedule tuned for paper, legal holds tuned for email. Neither is the source of high data growth or IT cost, so 33PB used today at $5m/PB will bloat to 310PB in just 5 years.

Risk not been reduced by keeping all data – it has increased materially. The exposure to cost to produce vintage data is over-taking the risks of sanctions and settlements.

0.05% of vintage data is $13B in ediscovery cost exposure – a material financial risk.

Retention schedule addresses paper; legal holds address email. Cost is elsewhere.

Poor Information Economics – The Tipping Point for CIOs, CDOs and GCs

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• Leverage information for better decisions• Don't waste budget on

unnecessary IT or legal services

• Meet e-discovery obligations cost effectively and efficiently for the enterprise• Manage conflicting privacy

and regulatory duties

• Minimize “run the shop” costs to increase investments to “grow the business”• Cut total costs even as total

volume rises

Quantity

Time

INFO VALUE

Disposal & Decom Inflection Point: Eliminate Cost When No Value

Archiving & Tiering Inflection Point: Align Cost as Value Declines

Analytics & Collaboration Inflection Point: Realize Value as Context Erodes

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Data Disposal Will Help Align Value with Cost & Risk Over TimeReduce artificial Demand driven by unnecessary data

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Thank you!Questions.......

05/03/2312 IBM Confidential