WHITE PAPER
Data Governance in
the B2B2C World
Today’s empowered consumers and their demand for product data have
given rise to challenges in product data management. Manufacturers and
retailers more than ever need to ensure that the increasing amount of data
about their products is accurate, complete, and relevant to create a positive
consumer experience.
Consumer shopping behavior has
From a retailer’s perspective, any
traditionally been influenced by
inconsistencies in product data provided
manufacturers and retailers. However,
by manufacturers may result in multiple
that trend is changing significantly due
issues ranging from warehouse operations
to the multitude of virtual shopping
to shelf space utilization to consumer
options and information sources available
protection agencies. These issues are
to consumers. Today’s consumers are
distributed throughout the product data
increasingly leveraging information
chain, and if not addressed, may impact
provided through mobile devices and
business continuity and growth for
social networks to enrich their shopping
manufacturers and retailers.
experience. These empowered consumers
and their demand for product data have
given rise to challenges in product data
management. Manufacturers and retailers
more than ever need to ensure that the
increasing amount of data about their
products is accurate, complete, and
relevant to create a positive consumer
experience.
In this evolving environment of
increasing data complexity and volume,
organizations need to streamline their
existing processes while improving
decision making through market insights
about consumer behavior. They are also
realizing the need to treat product data
as a strategic asset to gain a competitive
advantage. However, few realize the
In addition to these challenges,
benefits of handling these
manufacturers have traditionally
assets through effective governance. This
experienced significant internal issues
article presents an approach for managing
related to the availability, collection, and
this new data world with sets of tools and
publication of finished product data to
controls through the implementation of a
downstream trading partners. These
data governance program.
are manifested, for example, in the new
item set-up process when manufacturers
may need to send basic attribute and
retailer-specific data in various formats.
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
1
B2B2C
B2B
MANUFACTURER
B2C
RETAILER/E-TAILER
RETAILER/E-TAILER
Price
Data of Availability
Product
Description
Seller
/ Manufactuer
Promotions
Images
Price
Data of Availability
Product
Description
Seller
/ Manufactuer
Promotions
Images
Dimensions
Weights
Nutritional
Seller
/ Manufactuer
Compliance
Images
CONSUMER
Reviews
Ratings
Social
Media
Seller
/ Manufactuer
Location
Images
Current Challenges – The
Case for Data Governance
EMERGING B2C In today’s age of
DATA EXPLOSION IN B2B2C The most
technology-savvy consumers, multiple
significant multiplier for the complexity and
TODAY’S B2B The challenges in product
online sources are being accessed to get
volume of product data is the set of touch
data management result from an
additional value-added content about a
points across the entire data chain. Ranging
increasing amount and variety of
product. For example, an e-tailer’s website
from the manufacturer to the retailer,
data required by data recipients. In
may display the weight, dimensions,
these interfaces transform the structured
other words, while manufacturers
and basic attributes that originate from
product data not only to highlight product
may focus primarily on data related to
the manufacturer. In addition, it may
features but also to meet specific trading
their internal operations, their trading
also be the source of attributes such as
partner requirements. In addition, the
partners are interested in a different
categories, features, promotions, ratings,
unstructured product data generated by
set of product data attributes. These
and price comparisons for that product.
e-tailers, IAPs, and consumers adds to
interests are continually broadened by
Further, the consumer may tap into
evolving regulations around material
internet application providers (IAPs),
handling, environmental sustainability,
mobile applications, and social networks
and consumer protection to name a few.
to obtain additional information and share
The accuracy and completeness of this
reviews about that product. This growing
larger data set is critical to the retailer’s
stream of structured and unstructured
compliance and merchandising efforts.
product data in the B2C space, which
Moreover, manufacturers may need to
is generated by both organizations and
meet certain requirements about the
individuals, is valuable to all parties.
format and timelines when providing
Consumers are using it increasingly to
data to retailers. The potential costs
enrich their shopping experience while
and risks associated with not satisfying
organizations are looking to draw insights
these requirements could be significant
not just about consumer behavior but
enough to affect the bottom line for all
also product performance.
participants in the data chain.
the ever-expanding volume of available
product data. The combination of these
sources is giving rise to a data explosion in
the product data management space. This
data explosion can strain organizational
capacity at all points in the product data
chain as it is increasingly leveraged for
competitive differentiation. According to
a survey, 38% of consumers would not
purchase the product if they did not trust
the product information displayed about
it on their smartphone.1 It is essential to
maintain the quality and reliability of the
product data that ultimately influences
the consumer’s shopping behavior. To
achieve this objective, a data governance
program has become an essential tool for
effective management of product data.
1. “B2C Consumer Survey,” GS1, March 2011
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
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Goals and
Objectives
Definition of Product
Data Governance
Structure
and Roles
Technology
Product data governance is a disciplined
Product
Data
Governance
approach for administering the product
data of an organization that ensures
a credible single source of truth while
maintaining data quality. The overall
Standards
structure and execution of product data
governance can vary among organizations
Data
Mangement
Processes
Data
Quality
but is commonly comprised of three
primary components:
·· Organizational alignment around
governing principles and program
objectives
·· Data lifecycle management for the entire
product data chain
·· Data ownership to drive accountability
and ensure product data quality
Manufacturer
Retailer/
E-tailer
Consumer
Strategic Focus Areas for
Product Data Governance
performance metrics are an essential
Data governance needs to be a
benefit to all levels of the organization.
collaborative program initiated across
As the organization’s business evolves,
multiple touch points to gain alignment
these goals, objectives, and metrics
throughout the entire organization. Each
must be periodically re-evaluated and
organization and its product data are
re-aligned with business priorities.
unique and the approach for building
a data governance strategy can differ
significantly. However, there are core
B2B
B2C
areas of strategic focus that organizations
need to address in their data governance
program.
B2B2C
1
Data Governance
PROGRAM GOALS
AND OBJECTIVES
step in communicating the program’s
2
GOVERNANCE STRUCTURE
AND ROLES
A data governance program requires an
organization to establish a governance
structure as well as define and
empower specific roles for product
data management. This structure and
roles can be organized by either a
A data governance program should
centralized, decentralized, or hybrid
be developed on a business case
model which includes oversight by a
that recognizes and supports
governing board. In addition, these roles
A study conducted by GS1 UK and
larger organizational goals. A clear
must fit the cultural and the practical
the Cranfield School of Management
organizational alignment about
realities of the organization. Specific
found that 91% of mobile barcode scans
the definition of data governance,
governance roles related to product data
identification of objectives, and
management tasks and responsibilities
returned incorrect product descriptions
establishing scope are critical in
should report either directly or indirectly
A sophisticated data governance program
determining priorities within the program.
into the governing board. In addition
can increase the possibility of improving
Furthermore, it is also important to
to the governance roles, the program
the completeness and quality of data
evaluate the program’s success through
must establish business roles and
in the entire B2B2C product data chain.
the development and publication
responsibilities as well as define broad
Handling these issues in an efficient and
of specific performance metrics
obligations of other stakeholders.
timely manner can provide a competitive
related to new product introduction
edge in exceeding customer satisfaction.
and ongoing maintenance. These
and 75% returned no product data at all.
2
2. “Mobile-savvy shopper report,” GS1 UK and Cranfield
School of Management, January 2011
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
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3
DATA MANAGEMENT PROCESSES
Establishing the right data management
processes is fundamental to governing
product data. These processes lie at
the critical intersection of governance
objectives and functional execution.
Optimizing these processes ensures
that ownership and accountability is
established. Usually, there are multiple
owners representing different areas of
the business coming together to create
a lot of organizations are reactive instead
of being proactive in addressing data
quality. Reactive organizations do not
recognize data quality issues in certain
areas due to the lack of focus and specific
measures. On the other hand, proactive
organizations ensure high quality data
through constant assessment and
monitoring of their product data.
5
TECHNOLOGY
6
STANDARDS
Product data must be standardized
for efficient and scalable information
exchange between trading partners
throughout the supply chain. Data
governance must take into full
consideration the adoption and usage
of standards into business process and
technology. A globally aligned product
identifier, such as the GTIN®, allows
a product to be uniquely identified
and maintain the entire product data
Technology does not provide governance
on a global scale. Product packaging
record. However, these areas may have
by itself. It enables the execution of
measurement standards provide
differing priorities. Experience with both
business functions and provides a
tremendous value in the fact that any
data sources and data recipients has
means to govern that execution. It also
party in the supply chain can correctly
shown that issues arise due to lack of
helps optimize governance functions
interpret critical logistical information
clear understanding about ownership
by connecting business processes to
about a product. Classification code
and accountability. In such cases, the
governance controls. The right levels of
sets, like Global Product Codes (GPC),
coordination and communication achieved
control, enabled through technology,
allow a single common classification
through governance are vital to resolving
can prevent governance from being an
scheme across for all consumer
these issues. It is this facilitation among
overwhelming task that impacts process
products, irrespective of the industry. To
different business areas that keeps the
efficiency. During multiple technology
successfully implement a data governance
data management processes flowing
implementations like data synchronization
practice, standards must be applied to
smoothly, thus contributing towards faster
solutions, data accuracy tools, and
ensure accuracy and consistency.
product setup and completeness of data.
product information management
systems, we have come across some
4
DATA QUALITY
The quality of product data is becoming
increasingly important for businesses
to enrich the consumer’s shopping
experience. Therefore, data quality is
essential to maintaining a competitive
advantage in today’s B2B2C world. 74%
of consumers using mobile applications
consider it important that product
information is trustworthy and 35%
common pitfalls that organizations tend to
overlook. These include using technology
capabilities to define business processes,
underutilizing control functionalities,
ineffective process design, and ignoring
product data quality. Developing and
implementing a well-defined data
governance strategy in parallel with the
technology implementation can help in
avoiding these issues.
Data Governance –
Success Factors
EMPOWERED LEADERSHIP The executive
sponsor of the program plays a
critical role in providing the necessary
organizational support for a product data
governance effort. This role facilitates key
executive-level connections across the
various business areas to gain alignment
on priorities. The executive sponsor is also
responsible for building a strong working
would never use an app again if it
committee of product data stakeholders
contained incorrect product information.2
from key business areas like product
Substandard data quality not only costs
management, manufacturing, supply
organizations by way of lost sales but also
chain, marketing, sales, logistics, finance,
can undermine its credibility and brand
IT, and customer service.
image. Based on our experience,
2. “Mobile-savvy shopper report,” GS1 UK and Cranfield
School of Management, January 2011
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
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The most significant
QUALITY MANAGEMENT Product data
REFERENCE DOCUMENTATION AND
multiplier for the complexity
quality issues can surface far removed
MAINTENANCE A comprehensive set of
from the initial source of the error.
documentation that specifies topics
Determining the root cause of quality
ranging from strategy to tactic is essential
issues along with having a process for
for overall clarity and accountability.
managing these issues helps ensure
Governance policies, product data
permanent resolution. It is important
workflows, and standard operating
that product data governance looks
procedures need to be updated as
beyond its organizational boundaries
changes occur. All documentation needs
to develop external feedback channels
to be reviewed at least annually with
about data usage and data quality with
participation from all key stakeholders. In
upstream suppliers and downstream
addition, the creation of ad hoc workflow
customers. Tools like the Global Data
documentation at the individual user level
Synchronization Network™ (GDSN )
must be discouraged. Deviations from the
and data accuracy scorecards are used
standard processes should be reviewed
by both manufacturers and retailers
and approved by all stakeholders.
and volume of product data
is the set of touch points
across the entire data chain.
®
to consistently measure their product
CHANGE MANAGEMENT It is a challenge
data quality, identify discrepancies, and
to coordinate numerous interwoven
actively collaborate on improvements.
product data processes and owners, with
PERFORMANCE MEASUREMENT
different priorities, to work towards the
Establishing metrics and KPIs within
common objectives. This may require
the data governance program is critical
participants to change their traditional
for evaluating the effectiveness of the
methods and adopt new ones as part of
program as well as communicating its
the data governance program. Seemingly
value to the organization. Some common
small changes to product data can have
KPIs include: product data quality for
wide reaching impacts across the data
weights and dimensions, number of
chain. Handling this complexity requires
changes to product data, invoicing
horizontal and vertical organizational
discrepancies, pricing errors, inconsistent
alignment, as well as excellent
product hierarchies, and incorrect
understanding of the end-to-end product
GTIN assignments.
data chain. This can be achieved by
METADATA MANAGEMENT Metadata
management of product data includes
development of clear functional and
technical definitions for data attributes.
This process can be initiated by focusing
on the data attributes that are shared
with trading partners and/or consumers.
This metadata can include code value
undertaking a change management
initiative across the organization. It needs
to take into account the organizational
culture and implement a methodology
to manage the rate and scope of change
required for the program. Communication
and training are helpful tools towards
preparing for this change.
sets, standards, technical specifications,
communication protocols, aliases,
validations, and delivery mechanisms.
CONNECTING TRUSTED PRODUCT DATA EVERYWHERE
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Conclusion
Today’s consumers are increasingly
leveraging information provided through
mobile devices and social networks to
enrich their shopping experience. This
experience is strongly dependent on the
completeness and accuracy of product
data. Brand owners and retailers are
coming to the realization of this trend and
have started treating product data as a
strategic asset. Data governance provides
a means to establish the essential controls
and strong focus on product data within
an organization to achieve the objective
1WorldSync Professional Services are
based on our diverse expertise in Product
Data Management implementations. Our
core strengths are in business process
optimization, data accuracy, data
governance, and strategy management.
Valued as a trusted partner enabling
organizations to meet current challenges
around Product Data Management on
both strategic and operational levels,
1WorldSync leverages over a decade of
experience in implementing suppliers,
distributors, operators, and retailers on
PDM solutions.
of providing complete and accurate data
An assessment evaluates the usage of
to the consumer.
standards, technology, and industry best
practices in current business processes
For more information,
contact:
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ALI MOOSANI
product data so that companies can
VP Professional Services
share trusted product information
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with each other and with consumers,
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driving business and convenience for
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everyone. As the industry leader in
NIKHIL PUJARI
global product data management and
Advisory Services Manager
data pool solutions certified for the
T +1 312 463 4321
Global Data Synchronization Network
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(GDSN), 1WorldSync can meet the needs
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of any trading partner in any industry.
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1WorldSync is part of GS1®, the developer
of the global standards for identifying,
to achieve operational efficiencies. It
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