The Chief Data Office (CDO) and its Function

Santander Group’s Practical Experience

CDO – Chief Data Officer

2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

According to Gartner, 54% of the large global organization

had fully or partially deployed the CDO role by 2016, growing

from 25% on 2015

CDO FunctionOrigin

3

TECHNOLOGY

CDO FunctionOrigin

CDO

4

CDO FunctionWhere are we located in the organizational structure?

Technology Operations&

CDO

5

Technology¿Technology? Operations

CDO FunctionIdentity Handicap

www.tumblr.com “The IT Crowd” (2006)

&

6

Technology ¿Operations?Technology

CDO FunctionIdentity Handicap

www.tumblr.com “Ghostbusters” (1984)

&

7

Sometimes, we are invisible…

www.photobucket.com “The Invisible Man” (1933)

CDO FunctionIdentity Handicap – How does everybody see us?

8

www.tenor.co “Matrix Reloaded” (2003)

CDO FunctionIdentity Handicap – How does everybody see us?

Sometimes we are “the data guys”

9

…Alone against the world…

www.gifsoup.com “High Noon” (1952)

CDO FunctionIdentity Handicap – How do we see ourselves?

10

We are “The Night Watch”

http://img2.tvtome.com/ “Game of Thrones”

CDO FunctionIdentity Handicap – How do we see ourselves?

11

¿Operations?¿Technology?Technology Operations&

We are the nexus between Technology and Operations. We are the “&” in T&O:

• We are a bridge between the Technology world (new developments, IT architecture modifications, etc.) and the data quality world, managed by Operations

But being the “&” goes beyond that:

• We communicate the world of the data with the business and user areas (Risks, Finance, Management Information, Commercial Banking, etc.) with the T&O Division, on everything related with data governance and quality

CDO FunctionIdentity Handicap – What we really are…

12

The “Data Democracy”:

CDO FunctionHow are we becoming “&”?

The Chief Data Officer is the new leader in the “Data Democracy”and answers the call of many “data citizens” who have realized the

way data is being handled needs to change dramatically

Pieter De Leenheer, Collibra

&“ Chief Democratic Officer”

13

Looking for consensus, not imposition

• We must take into account all Group’s realities and necessities , in all areas and in all local units

• All the organization must participate in the data management and governance procedures, along all data’s lifecycle

• Santander Group’s CDO is “one more of the crowd” in the data governance, coordinating and agreeing the data management and governance strategies…

CDO FunctionHow are we becoming “&”?

“ Chief Democratic Officer”

Data Management is everybody’s task. It should not be assigned to a “data chief” alone

14

CDO FunctionHow are we becoming “&”? Relational structure

• Local CDOs exist in each one of the countries where the Group is present. Data management and governance mechanisms are agreed together between the local units and the Corporation

RELATIONS ACCROS GEOGRAPHICAL UNITS

• Global CDO defines the data management framework and policies , and watches over the global governance for all data in the Group

Evolved state

Completely decentralized

Federal – CDO as "facilitator"

Federal – CDO as “manager and

governor"Completely centralized

Description

Advantages / Drawbacks

Organizational unit

Data organization

CDO

Organizational units(risks, commercial banking, etc.).

• Divisions/ Functions define data governance independently

• No overall data strategy• Very limited coordination

Agility in changes and innovationPotential inefficiencies in data operationsSignificant danger of data inconsistencies

• Small CDO unit facilitating and coordinating

• Responsibility for data assets within individual Divisions/ Functions ("heavy" data owners units)

Keeps responsibility for data in businessPrioritizes for enterprise data needsDifficult to establish mandate

• CDO with larger team responsible at Group level for data operation and governance

• "Light" data owners units within Divisions/ Functions

Simplifies access to dataImproves data quality for enterprise dataDanger of overloading CDO organization

• CDO unit as official data owner of all data

• All data-related requests managed by enterprise team

• Highly prescriptive in definition and control

Easy to understand; efficientDifficult to implement in federated/ large org.Data and change management can become slow

-+

-

+

+- -

+

+

+-

-

SAN current state

RELATIONS ACCROS ORGANIZATIONAL UNITS

15

Transformational leaderBusiness enabler and

AnalyticsData-Driven organization

enabler

CDO role emerge to provide appropriate data management throughout the whole company

• Core functions performed include data controls and governance, quality and metadata

Regulation and compliance as a big lever of pressure to create the CDO role

• Role was given operational execution of BCBS

CDO role focused mainly on implementing foundational technologies

CDO role starts to take ownership of additional responsibilities

• Role starts to deliver tangible business value through advanced analytics, both by creating centers of expertise and addressing analytics problems

Well established data strategy focused on delivering prioritized use cases and supported by a multi-year roadmap

• Material progress in implementing a strategic data architecture based on golden sources, simplification and new technologies

• Enablement of process optimization

Fully implemented operating model and data controls across critical elements and reports

• Enabling transparency and increased data quality

Continued emphasis on the role as a strategic business enabler

Data becomes a valuable asset for the company and a source of competitive advantage and is treated like that at a company board level

• Enabling data monetization, full end-to-end process optimization and cost reduction

CDO role drives a data driven organization

• Data culture embedded across the board for all decision-making processes

• Use of advanced analytics to solve complex problems, as well as for the long tail of day-to-day problems

• Robust technological platform to effectively manage and exploit data

2014 - 2015 2016 The future

Santander As-Is situation

CDO AS DATA FACILITATOR CDO AS DATA MANAGER AND GOVERNOR

CDO FunctionNecessary evolution…

16

CDO

Data policies

Data lineage and

metadata

Data governance

DataprojectsData quality

Data certification

DataStrategy

Data Architecture

Data Analytics

Data reporting

Rel

atio

nshi

ps w

ith

othe

r sta

keho

lder

s

CIO

Str

ateg

y,A

rchi

tect

ure,

Pro

ject

s

Operations

Qua

lity,

Line

age

and

met

adat

a

Business Units

Dat

a O

wne

rshi

p,G

ov.,

Qua

lity,

Pro

ject

s, S

trat

egy,

Ana

lytic

s, R

epor

t.

Data Protection Officer

Qua

lity,

Line

age

and

met

adat

a,P

olic

ies

Cyber-security

Line

age

and

met

adat

a,P

olic

ies

Innovation

Dat

a A

naly

tics,

Dat

a st

rate

gy

CDO Function… to cover integral data management scope

17

• Definition of the Data ManagementFramework , as well as the Model ,Policies and Procedures derived from it

• Implementation and usage of DataGovernance Tools

• Launching an integral end effective DataQuality Program

• Development and application of a DataCertification Model

• Data Management systems’ strategydefinition to service all segments andgeographic locations

• Interact and coordinate with all otherareas in the organization (corporate andlocal)

CDO FunctionWhere are we starting from?

18

CDO 1.0(current state)

RD

A s

cope

CDO 2.0 CDO 3.0

Expansion in terms of functions

Ful

l sco

peof

dat

a

Consolidation around data scope covered by the CDO and then expansion in terms of functions

Roll out of the CDO function to cover all functions focusing first on RDA and RRF and then

include progressively more data under

scope

Santander approach

Incremental expansion in both axes, step by step,

based on expansion in one axis,

consolidation, expansion in the

other axis, consolidation, and so

until target state

Exp

ansi

on in

term

s of

sco

pe

CDO Function… and what is our strategy?

Ambition fortarget state

19

“Tragedy of the Common Goods”

CDO FunctionOur Challenges – The Information Era

DecisionMaking

Business

NEW TECHNOLOGIES REGULATION

- +

20

“Winter is coming”

http://redwire95.deviantart.com/ “Game of Thrones”

CDO FunctionOur Challenges

21

…Life is Beautiful

http://rebloggy.com/ “La Vita e’ Bella” (1997)

CDO FunctionBut….

22

CDO Function

Our purpose is to help people and businesses prosper.

Our culture is based on the belief that everything we do should be

Thank youThank you