Tag: data analysis

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A Guide to CCPA Compliance and How the California Consumer Privacy Act Compares to GDPR

California Consumer Privacy Act (CCPA) compliance shares many of the same requirements in the European Unions’ General Data Protection Regulation (GDPR).

While the CCPA has been signed into law, organizations have until Jan. 1, 2020, to enact its mandates. Luckily, many organizations have already laid the regulatory groundwork for it because of their efforts to comply with GDPR.

However, there are some key differences that we’ll explore in the Q&A below.

Data governance, thankfully, provides a framework for compliance with either or both – in addition to other regulatory mandates your organization may be subject to.

CCPA Compliance Requirements vs. GDPR FAQ

Does CCPA apply to not-for-profit organizations? 

No, CCPA compliance only applies to for-profit organizations. GDPR compliance is required for any organization, public or private (including not-for-profit).

What for-profit businesses does CCPA apply to?

The mandate for CCPA compliance only applies if a for-profit organization:

  • Has an annual gross revenue exceeding $25 million
  • Collects, sells or shares the personal data of 50,000 or more consumers, households or devices
  • Earns 50% of more of its annual revenue by selling consumers’ personal information

Does the CCPA apply outside of California?

As the name suggests, the legislation is designed to protect the personal data of consumers who reside in the state of California.

But like GDPR, CCPA compliance has impacts outside the area of origin. This means businesses located outside of California, but selling to (or collecting the data of) California residents must also comply.

Does the CCPA exclude anything that GDPR doesn’t? 

GDPR encompasses all categories of “personal data,” with no distinctions.

CCPA does make distinctions, particularly when other regulations may overlap. These include:

  • Medical information covered by the Confidentiality of Medical Information Act (CMIA) and the Health Insurance Portability and Accountability Act (HIPAA)
  • Personal information covered by the Gramm-Leach-Bliley Act (GLBA)
  • Personal information covered by the Driver’s Privacy Protection Act (DPPA)
  • Clinical trial data
  • Information sold to or by consumer reporting agencies
  • Publicly available personal information (federal, state and local government records)

What about access requests? 

Under the GDPR, organizations must make any personal data collected from an EU citizen available upon request.

CCPA compliance only requires data collected within the last 12 months to be shared upon request.

Does the CCPA include the right to opt out?

CCPA, like GDPR, empowers gives consumers/citizens the right to opt out in regard to the processing of their personal data.

However, CCPA compliance only requires an organization to observe an opt-out request when it comes to the sale of personal data. GDPR does not make any distinctions between “selling” personal data and any other kind of data processing.

To meet CCPA compliance opt-out standards, organizations must provide a “Do Not Sell My Personal Information” link on their home pages.

Does the CCPA require individuals to willingly opt in?

No. Whereas the GDPR requires informed consent before an organization sells an individual’s information, organizations under the scope of the CCPA can still assume consent. The only exception involves the personal information of children (under 16). Children over 13 can consent themselves, but if the consumer is a child under 13, a parent or guardian must authorize the sale of said child’s personal data.

What about fines for CCPA non-compliance? 

In theory, fines for CCPA non-compliance are potentially more far reaching than those of GDPR because there is no ceiling for CCPA penalties. Under GDPR, penalties have a ceiling of 4% of global annual revenue or €20 million, whichever is greater. GDPR recently resulted in a record fine for Google.

Organizations outside of CCPA compliance can only be fined up to $7,500 per violation, but there is no upper ceiling.

CCPA compliance is a data governance issue

Data Governance for Regulatory Compliance

While CCPA has a more narrow geography and focus than GDPR, compliance is still a serious effort for organizations under its scope. And as data-driven business continues to expand, so too will the pressure on lawmakers to regulate how organizations process data. Remember the Facebook hearings and now inquiries into Google and Twitter, for example?

Regulatory compliance remains a key driver for data governance. After all, to understand how to meet data regulations, an organization must first understand its data.

An effective data governance initiative should enable just that, by giving an organization the tools to:

  • Discover data: Identify and interrogate metadata from various data management silos
  • Harvest data: Automate the collection of metadata from various data management silos and consolidate it into a single source
  • Structure data: Connect physical metadata to specific business terms and definitions and reusable design standards
  • Analyze data: Understand how data relates to the business and what attributes it has
  • Map data flows: Identify where to integrate data and track how it moves and transforms
  • Govern data: Develop a governance model to manage standards and policies and set best practices
  • Socialize data: Enable all stakeholders to see data in one place in their own context

A Regulatory EDGE

The erwin EDGE software platform creates an “enterprise data governance experience” to transform how all stakeholders discover, understand, govern and socialize data assets. It includes enterprise modeling, data cataloging and data literacy capabilities, giving organizations visibility and control over their disparate architectures and all the supporting data.

Both IT and business stakeholders have role-based, self-service access to the information they need to collaborate in making strategic decisions. And because many of the associated processes can be automated, you reduce errors and increase the speed and quality of your data pipeline. This data intelligence unlocks knowledge and value.

The erwin EDGE provides the most agile, efficient and cost-effective means of launching and sustaining a strategic and comprehensive data governance initiative, whether you wish to deploy on premise or in the cloud. But you don’t have to implement every component of the erwin EDGE all at once to see strategic value.

Because of the platform’s federated design, you can address your organization’s most urgent needs, such as regulatory compliance, first. Then you can proactively address other organization objectives, such as operational efficiency, revenue growth, increasing customer satisfaction and improving overall decision-making.

You can learn more about leveraging data governance to navigate the changing tide of data regulations here.

Are you compliant with data regulations?

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Digital Transformation in Municipal Government: The Hidden Force Powering Smart Cities

Smart cities are changing the world.

When you think of real-time, data-driven experiences and modern applications to accomplish tasks faster and easier, your local town or city government probably doesn’t come to mind. But municipal government is starting to embrace digital transformation and therefore data governance.

Municipal government has never been an area in which to look for tech innovation. Perpetually strapped for resources and budget, often relying on legacy applications and infrastructure, and perfectly happy being available during regular business hours (save for emergency responders), most municipal governments lacked the ability and motivation to (as they say in the private sector) digitally transform. Then an odd thing happened – the rest of the world started transforming.

If you shop at a retailer that doesn’t deliver a modern, personalized experience, thousands more retailers are just a click away. But people rarely pick up and move to a new city because the new city offers a better website or mobile app. The motivation for municipal governments to transform simply isn’t there in the same way it is for the private sector.

But there are some things many city residents care about deeply: public safety, quality of life, how their tax dollars are spent, and the ability to do business with their local government when they want, not when it’s convenient for the municipality. And much like the private sector, better decisions around all of these concerns can be made when accurate, timely data is available to help inform them.

Digital transformation in municipal government is taking place in two main areas today: constituent services and the “smart cities” movement.

Digital Transformation in Municipal Government: Being “Smart” About It

The ability to serve constituents easily and efficiently is of increasing importance and a key objective of digital transformation in municipal government. It’s a direct result of the data-driven customer experiences that are increasingly the norm in the private sector.

Residents want the ability to pay their taxes online, report a pothole from their phone, and generally make it easier to interact with their local officials and services. This can be accomplished with dashboards and constituent portals.

The smart cities movement refers to the broad effort of municipal governments to incorporate sensors, data collection and analysis to improve responses to everything from rush-hour traffic to air quality to crime prevention. When the McKinsey Global Institute examined smart technologies that could be deployed by cities, it found that the public sector would be the natural owner of 70 percent of the applications it reviewed.

“Cities are getting in on the data game,” says Danny Sandwell, product marketing director at erwin, Inc. And with information serving as the lifeblood of many of these projects, the effectiveness of the services offered, the return on the investments in hardware and software, and the happiness of the users all depend on timely, accurate and effective data.

These initiatives present a pretty radical departure from the way cities have traditionally been managed.

A constituent portal, for example, requires that users can be identified, authenticated and then have access to information that resides in various departments, such as the tax collector to view and pay taxes, the building department to view a building permit, and the parking authority to manage public parking permits.

For many municipalities, this is uncharted territory.

Smart Cities

Data Governance: The Force Powering Smart Cities

The efficiencies offered by smart city technologies only exist if the data leads to a proper allocation of resources.

If you can identify an increase in crime in a certain neighborhood, for example, you can increase police patrols in response. But if the data is inaccurate, those patrols are wasted while other neighborhoods experience a rise in crime.

Now that they’re in the data game, it’s time for municipal governments to understand data governance – the driving force behind any successful data-driven operation. When you have the ability to understand all of the information related to a piece of data, you have more confidence in how it is analyzed, used and protected.

Data governance doesn’t take place at a single application or in the data warehouse. It needs to be woven into the enterprise architecture and processes of the municipality to ensure data is accurate, timely and accessible to those who need it (and inaccessible to everyone else).

When this all comes together – good data, solid analytics and improved services for residents – the results can be quite striking. New efficiencies will make municipal governments better stewards of tax dollars. An improved quality of life can lift tax revenue by making the city more appealing to citizens and developers.

There’s a lot for cities to gain if they get in the data game. And truly smart cities will make sure they play the game right with effective data governance.

Benefits of Data Governance

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Healthy Co-Dependency: Data Management and Data Governance

Data management and data governance are now more important than ever before. The hyper competitive nature of data-driven business means organizations need to get more out of their data than ever before – and fast.

A few data-driven exemplars have led the way, turning data into actionable insights that influence everything from corporate structure to new products and pricing. “Few” being the operative word.

It’s true, data-driven business is big business. Huge actually. But it’s dominated by a handful of organizations that realized early on what a powerful and disruptive force data can be.

The benefits of such data-driven strategies speak for themselves: Netflix has replaced Blockbuster, and Uber continues to shake up the taxi business. Organizations indiscriminate of industry are following suit, fighting to become the next big, disruptive players.

But in many cases, these attempts have failed or are on the verge of doing so.

Now with the General Data Protection Regulation (GDPR) in effect, data that is unaccounted for is a potential data disaster waiting to happen.

So organizations need to understand that getting more out of their data isn’t necessarily about collecting more data. It’s about unlocking the value of the data they already have.

Data Management and Data Governance Co-Dependency

The Enterprise Data Dilemma

However, most organizations don’t know exactly what data they have or even where some of it is. And some of the data they can account for is going to waste because they don’t have the means to process it. This is especially true of unstructured data types, which organizations are collecting more frequently.

Considering that 73 percent of company data goes unused, it’s safe to assume your organization is dealing with some if not all of these issues.

Big picture, this means your enterprise is missing out on thousands, perhaps millions in revenue.

The smaller picture? You’re struggling to establish a single source of data truth, which contributes to a host of problems:

  • Inaccurate analysis and discrepancies in departmental reporting
  • Inability to manage the amount and variety of data your organization collects
  • Duplications and redundancies in processes
  • Issues determining data ownership, lineage and access
  • Achieving and sustaining compliance

To avoid such circumstances and get more value out of data, organizations need to harmonize their approach to data management and data governance, using a platform of established tools that work in tandem while also enabling collaboration across the enterprise.

Data management drives the design, deployment and operation of systems that deliver operational data assets for analytics purposes.

Data governance delivers these data assets within a business context, tracking their physical existence and lineage, and maximizing their security, quality and value.

Although these two disciplines approach data from different perspectives (IT-driven and business-oriented), they depend on each other. And this co-dependency helps an organization make the most of its data.

The P-M-G Hub

Together, data management and data governance form a critical hub for data preparation, modeling and data governance. How?

It starts with a real-time, accurate picture of the data landscape, including “data at rest” in databases, data warehouses and data lakes and “data in motion” as it is integrated with and used by key applications. That landscape also must be controlled to facilitate collaboration and limit risk.

But knowing what data you have and where it lives is complicated, so you need to create and sustain an enterprise-wide view of and easy access to underlying metadata. That’s a tall order with numerous data types and data sources that were never designed to work together and data infrastructures that have been cobbled together over time with disparate technologies, poor documentation and little thought for downstream integration. So the applications and initiatives that depend on a solid data infrastructure may be compromised, and data analysis based on faulty insights.

However, these issues can be addressed with a strong data management strategy and technology to enable the data quality required by the business, which encompasses data cataloging (integration of data sets from various sources), mapping, versioning, business rules and glossaries maintenance and metadata management (associations and lineage).

Being able to pinpoint what data exists and where must be accompanied by an agreed-upon business understanding of what it all means in common terms that are adopted across the enterprise. Having that consistency is the only way to assure that insights generated by analyses are useful and actionable, regardless of business department or user exploring a question. Additionally, policies, processes and tools that define and control access to data by roles and across workflows are critical for security purposes.

These issues can be addressed with a comprehensive data governance strategy and technology to determine master data sets, discover the impact of potential glossary changes across the enterprise, audit and score adherence to rules, discover risks, and appropriately and cost-effectively apply security to data flows, as well as publish data to people/roles in ways that are meaningful to them.

Data Management and Data Governance: Play Together, Stay Together

When data management and data governance work in concert empowered by the right technology, they inform, guide and optimize each other. The result for an organization that takes such a harmonized approach is automated, real-time, high-quality data pipeline.

Then all stakeholders — data scientists, data stewards, ETL developers, enterprise architects, business analysts, compliance officers, CDOs and CEOs – can access the data they’re authorized to use and base strategic decisions on what is now a full inventory of reliable information.

The erwin EDGE creates an “enterprise data governance experience” through integrated data mapping, business process modeling, enterprise architecture modeling, data modeling and data governance. No other software platform on the market touches every aspect of the data management and data governance lifecycle to automate and accelerate the speed to actionable business insights.

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Data Governance Helps Build a Solid Foundation for Analytics

If your business is like many, it’s heavily invested in analytics. We’re living in a data-driven world. Data drives the recommendations we get from retailers, the coupons we get from grocers, and the decisions behind the products and services we’ll build and support at work.

None of the insights we draw from data are possible without analytics. We routinely slice, dice, measure and (try to) predict almost everything today because data is available to be analyzed. In theory, all this analysis should be helping the business. It should ensure we’re creating the right products and services, marketing them to the right people, and charging the right price. It should build a loyal base of customers who become brand ambassadors, amplifying existing marketing efforts to fuel more sales.

We hope all these things happen because all this analysis is expensive. It’s not just the cost of software licenses for the analytics software, but it’s also the people. Estimates for the average salary of data scientists, for example, can be upwards of $118,000 (Glassdoor) to $131,000 (Indeed). Many businesses also are exploring or already use next-generation analytics technology like predictive analytics or analytics supported by artificial intelligence or machine learning, which require even more investment.

If the underlying data your business is analyzing is bad, you’re throwing all this investment away. There’s a saying that scares everyone involved in analytics today: “Garbage in, garbage out.” When bad data is used to drive your strategic and operational decisions, your bad data suddenly becomes a huge problem for the business.

The goal, when it comes to the data you feed your analytics platforms, is what’s often referred to as the “single source of truth,” otherwise known as the data you can trust to analyze and create conclusions that drive your business forward.

“One source of truth means serving up consistent, high-quality data,” says Danny Sandwell, director of product marketing at erwin, Inc.

Despite all of the talk in the industry about data and analytics in recent years, many businesses still fail to reap the rewards of their analytics investments. In fact, Gartner reports that more than 60 percent of data and analytics projects fail. As with any software deployment, there are a number of reasons these projects don’t turn out the way they were planned. Among analytics, however, bad data can turn even a smooth deployment on the technology side into a disaster for the business.

What is bad data? It’s data that isn’t helping your business make the right decisions because it is:

  • Poor quality
  • Misunderstood
  • Incomplete
  • Misused

How Data Governance Helps Organizations Improve Their Analytics

More than one-quarter of the respondents to a November 2017 survey by erwin Inc. and UBM said analytics was one of the factors driving their data governance initiatives.

Reputation Management - What's Driving Data Governance

Data governance helps businesses understand what data they have, how good it is, where it is, and how it’s used. A lot of people are talking about data governance today, and some are putting that talk into action. The erwin-UBM survey found that 52 percent of respondents say data is critically important to their organization and they have a formal data governance strategy in place. But almost as many respondents (46 percent) say they recognize the value of data to their organizations but don’t have a formal governance strategy.

Data-driven Analytics: How Important is Data Governance

When data governance helps your organization develop high-quality data with demonstrated value, your IT organizations can build better analytics platforms for the business. Data governance helps enable self-service, which is an important part of analytics for many businesses today because it puts the power of data and analysis into the hands of the people who use the data on a daily basis. A well-functioning data governance program creates that single version of the truth by helping IT organizations identify and present the right data to users and eliminate confusion about the source or quality of the data.

Data governance also enables a system of best practices, subject matter experts, and collaboration that are the hallmarks of today’s analytics-driven businesses.

Like analytics, many early attempts at instituting data governance failed to deliver the expected results. They were narrowly focused, and their advocates often had difficulty articulating the value of data governance to the organization, which made it difficult to secure budget. Some organizations even viewed data governance as part of data security, securing their data to the point where the people who wanted to use it had trouble getting access.

Issues of ownership also hurt early data governance efforts, as IT and the business couldn’t agree on which side was responsible for a process that affects both on a regular basis. Today, organizations are better equipped to resolve these issues of ownership because many are adopting a new corporate structure that recognizes how important data is to modern businesses. Roles like chief data officer (CDO), which increasingly sits on the business side, and the data protection officer (DPO), are more common than they were a few years ago.

A modern data governance strategy weaves itself into the business and its infrastructure. It is present in the enterprise architecture, the business processes, and it helps organizations better understand the relationships between data assets using techniques like visualization. Perhaps most important, a modern approach to data governance is ongoing because organizations and their data are constantly changing and transforming, so their approach to data governance needs to adjust as they go.

When it comes to analytics, data governance is the best way to ensure you’re using the right data to drive your strategic and operational decisions. It’s easier said than done, especially when you consider all the data that’s flowing into a modern organization and how you’re going to sort through it all to find the good, the bad, and the ugly. But once you do, you’re on the way to using analytics to draw conclusions you can trust.

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