Data Governance & Data Quality Programs

Data Governance & Data Quality Programs
10/16/2013 Data Governance & Data Quality Programs After conducting an internal Cultural/Social survey, most folks identified that they have purchased something on the internet (software, hardware, travel tickets etc.). Today the processes of purchasing products online is making the leap to purchases via mobile devices (such as smartphones, tablets, smart TV’s etc.) Digital River is in the payment processing business and the markets are going Global and in the Mobile/Social direction today and in the future! I am here to present the Data Governance Practices at Digital River and how we are cleansing the Quality of Data getting into our systems at the source platform with a Data Quality Program (DQP). Bottom line, I’m here to talk about Data Governance and Data Quality programs: Better Outcomes, Worthwhile Change, for any Organization. Better Outcomes, Worthwhile change, for any organization by Deepak Bhaskar +

Agenda

Agenda DQP in ERP Implementation (Data Discover Profiling & DQ Tool)
Introduction Speaker Bio Company introduction Data issues for our Business: Challenge 1 Batch mode Data cleansing: Centralizing commerce data in an ERP DQP in ERP Implementation (Data Discover Profiling & DQ Tool) Challenge 2 Real Time Data cleansing: Cloud Commerce Billing/Shipping Address Errors DQP in Real Time Address Validation & Cleansing (DQ Tool & Postal dir.) Further Recommendations Conclusion: Digital River Data Governance best practices The Agenda includes: An Introduction to Digital River Review of 2 main challenges Digital River faces from a Data Management perspective How the challenges relates to People, Process and Technology. Review key Data Management programs solutions that we’ve put in place Conclusion of Digital Rivers DG best practices

Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Speaker BIO: DEEPAK BHASKAR Sr. Manager, Data Governance, Trillium Product. Governance and Compliance. At Digital River – 10+ years Other roles held: Manager, Enterprise Data Quality, ( ) Sr. Strategic Database Analyst, Strategic Marketing ( ) Sr. Software Test Engineer, Quality Assurance ( ) Roles held in prior to Digital River include: Lead Test Consultant, (Gelco Info. Network, now Concur Technologies) DBA, (Eschelon Telecom, now Integra Telecom) DBA, Software Developer , Sr. Test Engineer (techies.com) Education & Training: ACE Leadership Series; Minnesota High Tech Association Business Strategy: Competitive Advantage; Johnson School of Management, Cornell University MBA, International Business; Keller School of Management, DeVry University BSEE, Electrical Engineering: Microelectronics & Telecoms; Minnesota State University With Digital River – 10+ years, the past 5+ years in a Governance role.

Digital River Company overview Who is Digital River? What do we do?
At Digital River, we see opportunity around every corner. Our unique combination of global expertise and Innovative technology gives your business the freedom to realize its greatest potential We believe in Greater Possibilities. It was founded in 1994 and is headquartered in Minnetonka, Minnesota. It has been publically traded since August 1998 (NASDAQ:DRIV). As a US public company we adhere to SOX and SAS 70 standards. In the Nov 2011 Gartner Magic Quadrant for e-Commerce Digital River was placed in the Challenger’s quadrant. Digital River was also listed in the 2012 Q3 Forrester Wave B2C Commerce Suite as a Strong performer. Gartner and Forrester are a think tanks and they review companies annually in various industry segments. Gartner rates vendors upon two criteria: completeness of vision and ability to execute. Digital River’s continues to be recognized in the challengers quadrant. Position in 2011 is better because we are ‘higher’ in the ‘challengers’ quadrant, and fewer competitors are grouped near Digital River in the Magic Quadrant. Digital River Company overview

Digital river Managing Over $22 Billion in Annual Online Transactions
Who We Are Our Focus Our Passion Experience Innovation Digital river Managing Over $22 Billion in Annual Online Transactions 38 Patents Issued in Commerce, Marketing and Payments Generating Revenue in Virtually Every Country on the Planet Here are some Key Metrics of where we’ve achieved: For one we are now Global – We manage over $22 Billion in Annual Online Transactions There’s Growing complexity in doing business in global online markets. The Good news is – complexity has always been our friend 38 Patents have been issued that help solve the tricky issues of e-commerce. Something we do extremely well. Companies we work with, really value this Generating Revenue in Every Country. And to be successful in Going global, We have to Work local Invest 3 Million hours per year focused on Growing our clients revenue Other stats: We offer 168 display currencies Continually expanding our global capabilities to support our clients growing global businesses CS answers the phone and in 15 languages Customer care centers in: Manila, Philippines; Kingston, UK; Minnetonka, MN; and Shannon, Ireland Customer care 24X7 Offer more than 40 localized payment methods We can transact in 40 currencies, but sites can display in 185 currencies Sites display in more than 30 languages. We have a global footprint with offices in numerous cities around the world Invest 3 Million Hours Per Year Focused on Growing Our Clients Revenue Technology Pioneer, Founded in 1994 2012 FINANCIAL HIGHLIGHTS Revenue $386 MILLION R&D Investment $64 MILLION Strong Financial Balance Sheet NASDAQ: DRIV

Who We Are Our Focus Our Passion Experience Innovation simpilfy the complex We manage the complexity and risk on a global scale to enable a great user experience Store Front Shopping Cart Tax & Fraud Management Export Compliance Compliance (PCI, SOX, SAS, Export) API’s & Integrations Marketing and Demand Gen Global Capabilities Payments, Multi-lingual Advanced Business Models Subs, Rentals, Points, etc.

Unmatched global experience and reach
Who We Are Our Focus Our Passion Experience Innovation Unmatched global experience and reach localized payment methods transaction currencies site display languages offices across the globe languages in customer service 40 30 31 15 Key Metrics Unrivalled global footprint; offices across the U.S. as well as Austria, Brazil, China, England, Germany, Ireland, Japan, Luxembourg, Sweden and Taiwan. Globalocity is the Digital River Annual conference with 500 participants - we bring a wealth of knowledge and true payment expertise to your organization and network opportunities with our client base (Microsoft, SAP, VMware, Citrix, Adobe, EA, Trend Micro) Digital River is Invested in our clients’ Global success In 2010, 46% of revenue came from overseas. In 2012 we opened an office in India and in 2013 we opened one in Russia. We continue to expand our global footprint in order to meet our client needs of doing business in other countries. Minneapolis • Aliso Viejo • Pittsburgh • Portland • Provo • San Diego • Seattle • Cologne • London • Luxembourg • São Paulo • Shanghai • Shannon • Stockholm • Taipei • Tokyo • Vienna

Who We Are Our Focus Our Passion Experience Innovation Digital River Promise Why world class companies put their trust in Digital River 19 years of experience 3 million hours a year invested in our client success 1,400+ e-commerce experts worldwide Unmatched speed to market Over 100 third party relationships Deep understanding of consumer psychology and online behaviors Our Mission: (Who we are, What we do, How we plan to do it) We Drive Client Growth Through our Global Commerce Expertise Worldwide Commerce – Everything you need to build, manage and grow your business anywhere in the world. Worldwide Marketing – Best in class summer acquisition and retention solutions that maximize your ROI. Worldwide Payments – Stay local or go global with customizable payment services perfect for any size business. Our Vision: (What we aspire to be. Set’s the clarity to where we are, who we are, what we want to do) We set the Standard for Global Commerce Technology and Services What does this mean:- Global Reach. Global Solutions. Offering Worldwide Commerce Solutions. - We invest 3 million hours/year to ensure your e-commerce success We use Proven Tools and top Notch talent. Offering Worldwide marketing Solutions. - Our performance marketing solution and experts generate real results We Payments without Borders - Offer 170 currents across virtually every country, give you global reach, a local touch and hire close ratios Global Demand marketing experts Manage more than $22 billion in online transactions Most complete fraud detection tools in the industry “Digital River has been with us step-by-step as we’ve launched online stores. Their technology supports our online commerce capabilities in North America, Europe and Asia, and their marketing solutions help us acquire and retain new customers every day.” - Lance Binley, Logitech Vice President of Digital and E-Commerce

Services Your CUSTOM ECOSYSTEM WORLDWIDE PAYMENTS WORLDWIDE COMMERCE
Who We Are Our Focus Our Passion Experience Innovation Services WORLDWIDE PAYMENTS WORLDWIDE COMMERCE WORLDWIDE MARKETING Currency Pricing Local Fulfillment Site Optimization Global Processing Store Architecture Locale Merchandising Digital River partners with leading global brands and SMBs to help them maximize the revenue potential of the Internet. Technology. We offer a cloud-based e-commerce technology solution that serves as the foundational platform of your online business. Marketing. We offer a rich suite of e-marketing services to help you acquire and retain new customers. Payments and Operations. We relieve you of the burden of managing your online business through back-end online operations management services. Transaction Routing Store Content Marketing Fraud Screening Subscriptions Search Optimization Local/VAT Tax Support Reporting & Analytics Affiliate Marketing Your CUSTOM ECOSYSTEM Merchant Services Customer Service Brand Development A flexible, expandable e-commerce ecosystem perfectly suited to the needs of your business.

Performance marketing
Who We Are Our Focus Our Passion Experience Innovation Performance marketing Marketing expertise to acquire and retain customers. Search Engine Marketing services to help create a strategy that maximizes your pay-per-click ad spend Display Advertising to drive “eyeballs” to your sites and create the brand awareness needed to compete for market share Affiliate Programs and Networks to drive revenue through a community of pay-for- performance publishers Site Optimization to make sure customers find their way to your site Programs that match messages to your customers digital body language Advanced Analytics to provide the data points needed to manage key performance indicators Driving more value to our customers in our No. 1 priority Competencies: Digital River’s competencies include a multi-vendor unified approach for a well managed relationship that meets numerous criteria We provide end-to-end Global Cloud-commerce and marketing solutions and offers a range of services that enables its customers to establish an online sales channel. These services include: Design, development, and hosting of online stores and shopping carts; Store merchandising and optimization Order management Denied parties screening Export controls and management Tax compliance and management Fraud management Digital product delivery via download Physical product fulfillment Subscription management Online marketing, including marketing Management of affiliate programs Paid search programs Payment processing services Web site optimization, analytics, and reporting CD production and Delivery services The company also provides Marketing services such as: Paid search advertising Search engine optimization Affiliate marketing Store optimization Multi-variant testing Web analytics and optimization services In addition, it offers a range of Payment processing services, such as Multiple payment methods Tax management Cloud-based billing and Other payment optimization services Today, Digital River provides end-to-end Global Cloud-commerce and marketing solutions. The company offers a range of services that enables its customers to establish an online sales channel. We handle a lot of tricky issues in Global e-Commerce for our clients and companies. They like to work with us as a result of that. On this slide we identify some of the approaches taken to simplify complexity

World-class customers
Who We Are Our Focus Our Passion Experience Innovation World-class customers Consumer Electronics TRAVEL GAMES AND ENTERTAINMENT Digital River has helped some of the world’s leading brands build successful online businesses. We focus on global enterprises and SMBs in industries that include: SELLING PARTNER FOR LEADING GLOBAL COMPANIES 60 Clients identified here Digital River expanded our Expertise to New market segments: Consumer Electronics (Lenovo, Seagate, Logitech, Western Digital, etc.), Travel (Orbitz, Expedia, travelocity etc.), Games and Entertainment (EA, Wizards of the Coast, Capcom, etc.), E-tail (e-Bay, American Apparel, Euro Florist, etc.), Software (Microsoft, Autodesk, Trend Micro, Nuance, Sonic, VMware, etc.), Education (e-follett, Kaplan, University of Phoenix, etc.) Digital River sells its products and services through Internet and a direct sales force. It serves software, consumer electronics, computer/video game product manufacturers, and online channel partners, who including retailers and affiliates in the United States, Austria, Brazil, China, Germany, Korea, Ireland, Japan, Luxembourg, Mexico, Singapore, Sweden, Taiwan, and the United Kingdom. And expanded our client base - There‘s around 60 brands identified on this slide alone, some of them are big names in the future of technology E-TAIL SOFTWARE & SERVICES EDUCATION

Open. Modular. ecosystem
Who We Are Our Focus Our Passion Experience Innovation Open. Modular. ecosystem DG and DQ real time activities are focused on - Payments and Fraud - Fulfillment and Logistics - Security and Compliance

Business Challenge 1 Batch mode Data Cleansing: Centralizing commerce data

Early years (mid-90’s): Single e-commerce platform
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Early years (mid-90’s): Single e-commerce platform At the heart of the web hosting business: The order checkout workflow, which consists of: Digital River and subsidiaries were founded in 1994 We specialized in e-commerce outsourcing. At the heart of this business is - order checkout workflow. Typical e-commerce pages touch - Products/Catalogs/Categories/ - Ship-to/Bill-to Addresses - Payment Types etc. In the Shopping cart - Customer data becomes important. Orders taken are stored in Commerce platform. And that order info eventually flows to a Data Warehouse for reporting That was in the 90’s, more recently we’ve became Revenue Growth Experts in Global Cloud Commerce. Store homepage Product detail Page Shopping cart page Bill to page Ship to page Payment processing page Order confirmation page Thank you page Invoice page

Today: Many Cloud Commerce platforms (a result of acquisitions)
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Today: Many Cloud Commerce platforms (a result of acquisitions) E-Com1 E-Com4 Our Data challenges/issues Over the years, with globalization of commerce, Digital River acquired numerous smaller companies in the e-commerce space. Some prominent acquisitions are listed here: RegNow (1999), BlueHornet Networks (2004), Element 5 (2004), SWREG (2005), NetGiro System (2007) and LML Payment Systems (2013). Today we have Many commerce platforms. Our Core Business has a focus on Commerce Transaction Processing. Shopping cart order check-out work flow becomes critical (to avoid cart abandonment) However, this includes repetitive events of carts, postal validation, fraud checks, payment processing much of which are/will be served from the cloud(s) With Digital River’s acquisitions, the number of platforms we supported grew. The core business is transaction processing. For one we became Global. There’s a lot of complexity in managing e-Commerce globally. And the volume of transactions going through Digital River grew. And the order checkout workflow has become critical to all these platforms. In 2012 manages over $10 Billon in global online transaction sales for our clients. E-Com2 E-Com6 E-Com5 E-Com3 E-Com8 E-Com7

Batch mode Data Cleansing: Centralizing commerce data
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Batch mode Data Cleansing: Centralizing commerce data In 2008 Digital River was dealing with Multiple commerce platforms Challenges: Different source data capture points and multiple workflows Different payments methods and fraud rates Similar technology processes performed by different systems Similar business concepts that used many terminologies So lets look at the 1st Challenge and How it relates to Data Governance The challenges are that There are many workflows using similar processes with many terminologies The Cons include: - Inefficiencies - Confusion - Inaccuracies - And involve manual work efforts So the Solution we determined was:- To align all data to single source of truth with the aid of the Data Governance Program. But Data Governance was new to Digital River Cons: Inefficient use of Developers and Functional teams Confusion around definition of common terms Inaccurate data being propagated across the systems Longer times to close our books at the end of the month Many manual work efforts Digital River Solution: Align all of the platform transaction data, as a Business Imperative with the aid of a Data Governance Program, to support creating a single source of truth (ERP)

Data Management Association (DAMA)
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Management Association (DAMA) Data Management Body of Knowledge (DMBOK) Governance Framework Data Architecture: as an integral part of the enterprise architecture Data Modeling & Design: analysis, design, build, test, deployment and maintain Data Storage: structured physical data assets storage management Data Security– support ensuring privacy, confidentiality and appropriate access Data Integration & Interoperability – support data acquisition, transformation and movement (ETL), federation, or virtualization Documents and Content – store, protect, index, and enable access to data found in unstructured sources (electronic files and physical records), and make data available for integration and interoperability with structured (database) data. Reference & Master Data – manage gold versions and replicas Data Warehousing and Business Intelligence – support managing analytical data processing and enable access to decision support data for reporting and analysis Meta-data: integrate, control and deliver meta-data - Data Quality: define, monitor and improve data quality As is typical to the industry, we acquired and consolidated systems. Many of these platforms have similar and repetitive process, among them; the shopping cart, postal validation, fraud checks, payment processing, taxation, inventory and fulfillment etc. So getting back to our Business Challenge. We had a Decentralized Structure with many platforms. There were similar Business functions spread across each platform. So the challenge was to Create a Centralized True Source, for all of the data consumed by accounting, reporting, billing etc. © DAMA-DMBOK2 (Apr 2012)

Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Management Association (DAMA) Data Management Body of Knowledge (DMBOK) Governance Framework Data Governance: Involves planning, oversight, and control over data management and use of data As is typical to the industry, we acquired and consolidated systems. Many of these platforms have similar and repetitive process, among them; the shopping cart, postal validation, fraud checks, payment processing, taxation, inventory and fulfillment etc. So getting back to our Business Challenge. We had a Decentralized Structure with many platforms. There were similar Business functions spread across each platform. So the challenge was to Create a Centralized True Source, for all of the data consumed by accounting, reporting, billing etc. © DAMA-DMBOK2 (Apr 2012)

Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Management Association (DAMA) Data Management Functions Environmental Elements As is typical to the industry, we acquired and consolidated systems. Many of these platforms have similar and repetitive process, among them; the shopping cart, postal validation, fraud checks, payment processing, taxation, inventory and fulfillment etc. So getting back to our Business Challenge. We had a Decentralized Structure with many platforms. There were similar Business functions spread across each platform. So the challenge was to Create a Centralized True Source, for all of the data consumed by accounting, reporting, billing etc. © DAMA-DMBOK2 (Apr 2012)

What is Data Governance?
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion What is Data Governance? People Strategy Process Technology Assets Data Governance has all the characteristics of any Strategic governance process Programs Management Plan Governing body Business needs support Decision-making Data Governance attributes As is typical to the industry, we acquired and consolidated systems. Many of these platforms have similar and repetitive process, among them; the shopping cart, postal validation, fraud checks, payment processing, taxation, inventory and fulfillment etc. So getting back to our Business Challenge. We had a Decentralized Structure with many platforms. There were similar Business functions spread across each platform. So the challenge was to Create a Centralized True Source, for all of the data consumed by accounting, reporting, billing etc. Procedures Digital River’s definition of Data Governance:- A set of processes that treats Data as a Strategic Area within the enterprise (just like Sales, Finance, HR, Sourcing, etc…)

BUSINESS impact/benefits and return on objective
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion BUSINESS impact/benefits and return on objective A mechanism to convert raw Order/Transaction, Customer, Client, Vendor, Product and Other data collected from the shopper websites that we host for our clients, to 2 categories. Clean Data (passed on to the ERP) Dirty Data (requiring some clarification and remediation) Digital River’s definition of Data Governance:- A set of processes that treats Data as a Strategic Area within the enterprise Business impact/ benefits and return on ERP objective In 2007 an independent consulting firm conducted and presented an ROI study to Executive staff and Board. It became evident that the ERP batch mode cleansing effort was a Business Imperative the organization had to accomplish. The effort would have master and transactional data objects that would be migrated to the ERP. Some of these data objects would be required to be transformed in near real time through interface programs. Integrity was maintained of the data objects by cleansing the records outside of the ERP before load into the ERP. A mechanism would convert raw Order/Transaction, Customer, Client, Vendor, Product and Other data that Digital River collects from the tens of thousands of shopper websites that we host for our clients, to 2 categories. Clean Data and Dirty data. And a Data Quality program would be implemented to remediate the Dirty data. So what is Data Governance at Digital River? We’ve seen DG typically involves common attributes such as: People, Strategy, Assets, Programs, Process, Plan, Procedures, Management, Governing Body, Technology and Decision Making. These Commonalities have characteristics of any Strategic Governance process So Digital River came up with a definition of Data Governance: A set of processes that treats Data as a Strategic Area within the enterprise In mid-2008, full blown Technology request for proposals (RFP’s) were initiated for ETL, Data Quality, ERP and BI. 4 top vendors were selected for each tool. By mid-2008 the RFP winners were identified. Strategy blueprinting was underway and Business, Technology and Data Governance strategy was set in motion.

The Data Management wheel: Binary vs. Ternary
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion The Data Management wheel: Binary vs. Ternary In 2008 embraced DM which meant fundamentally changing the organizational structure of Digital River: DM Bus IT DM deployment Bus IT Length of time the ERP batch mode cleansing solution has been in place/program evolution Data cleansing of master/transactional data for the ERP has been in use since 2008 Cultural and Organization Change Historically data has fallen between the cracks. Business and Technology folks have predominantly focused on code related functionalities and requirements. This has typically been a Binary model One of the challenges was to convert the Digital River Business and IT/Dev. binary working groups by the introduction of a Data Management Wheel . This DM team would help interface between Business and IT/Dev. wheels from a data perspective. But, the volumes of data we deal with, identified that we need to change that. That meant A Fundamental change was needed in how things work . So, with the DM Deployment, a Ternary model is in play. The data Management wheel was owned by Data Stewards, who work with Business & IT Stewards. This DM wheel Required new roles and processes Binary model: No Data Mgmt IT and Business frictions Ternary model: Data Mgmt No IT and Business frictions The DM is a process “wheel” owned by the Data Stewards Data Stewards interface with Business and IT Stewards to carry out Data Management activities around remediating the Dirty Data

Enterprise Data Management Matrix Organization & Activities
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Enterprise Data Management Matrix Organization & Activities What Data Management function was set up for the ERP implementation? An Enterprise Data Management Team (EDM) was started in Jan of A Sr. Director for Data Management was hired to manage a team of 3 Data stewards, who were hired to assist with the data cleansing effort. A Data Management Charter was written up along with Data Management, Data Quality policies to provide oversight and controls on management and use of the data in support of the ERP. The idea was that cleansing solutions would eventually move upstream to source data on commerce platforms. It became evident that Data Management was a Process, which involved Stewardship of Programs, Data Governance, Data Quality, Master Data and Meta data To support Data Warehousing Data Management was a process supported by programs such as the DQP

Simplifying platforms doing similar things
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Simplifying platforms doing similar things Decentralized structure Business functions spread across each platform E-Com1 E-Com2 . E-Com8 As is typical to the industry, we acquired and consolidated systems. Many of these platforms have similar and repetitive process, among them; the shopping cart, postal validation, fraud checks, payment processing, taxation, inventory and fulfillment etc. So getting back to our Business Challenge. We had a Decentralized Structure with many platforms. There were similar Business functions spread across each platform. So the challenge was to Create a Centralized True Source, for all of the data consumed by accounting, reporting, billing etc. Accounting Reporting Billing Client Management Tax Compliance Accounting Reporting Billing Client Management Tax Compliance Accounting Reporting Billing Client Management Tax Compliance Challenge: How can we centralize all of our platforms, creating one true source for all Accounting, Reporting, Billing, etc?

Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Solution: ERP Implement an ERP system, sourced from each of the separate e-commerce platforms Commerce would continue to happen on platforms, and transmit to the ERP system in batches of data E-Com1 The solution involved implementing an ERP system which we did with SAP Where platforms would take the commerce and transmit the data in batches to the ERP Batches of data means the orders and other transactions such as settlement/fulfillment for a period of time SAP - ERP E-Com2 . E-Com8

Solution: ERP System fed by commerce platform data
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Solution: ERP System fed by commerce platform data Ancillary systems ETL ERP REPORTING ERP Integration ERP E-Com1 Stage BI DATA QUALITY ERP DW E-Com2 Scale of the solution (Enterprise wide) The scale of the ERP solution was Enterprise wide, and took 18 months to complete. For data to be managed as an asset, Data Stewards gathered business rules for terms that were critical to Accounting/Finance/Marketing teams. They would then use the Business rules to enhance, cleanse and remediate the data issues. Commerce would continue to occur on the e-Commerce platforms, and ETL would move it to the ERP in batches. Batches of data means the orders and other transactions such as settlement/fulfillment for a period of time. The decentralized structure of Digital River was to be eventually changed to a Single Source of Truth via the ERP, and the Data Quality Tool becomes an integral part of the effort. The strategy was: ETL would Extract transactions from the platforms, Transform the attributes to a Staging environment and call the Data Quality tool to fire Business Rules to cleanse the data before the Load to ERP. Data Quality would manage the Governance and certification of business rules of attributes and set up cleansed attributes that ETL would load to ERP. ERP provided Integrity of the data and included process controls to ensure productivity. BI Reporting would provide flexibility and scalability for accurate reports to be presented to the various groups at an efficient pace. The Data Quality tool was selected as a result of an RFP process that evaluated 4 industry vendors in the DG, DQP space (and as a reference we used Gartner Magic Quadrant vendors in this space) ETL drop zone ERP MDM E-Com3 TSS ® . Structure (ETL) Extract Transform Load Content (Data Quality Tool) Quality Rules Governance Certification Process (ERP) Integration Productivity Controls Reporting Accuracy Flexibility Scalability Commerce occurs on platforms, batches of data transmitted to ERP DQP RFP: DQP Tool became an integral Technology component of the ERP Implementation

DATA Governance HAS A FOCUS ON policies and processes
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion DATA Governance HAS A FOCUS ON policies and processes

DATA QUALITY HAS A FOCUS ON DATA PROFILING
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion DATA QUALITY HAS A FOCUS ON DATA PROFILING

DATA QUALITY MEASURES THE LEVEL OF QUALITY DQ COMPONENTS:
COMPLETENESS Is all the requisite information available? Are data values missing, or in an unusable state? Example: Product ID code not present; missing fee amount; etc. CONFORMITY Are there expectations that data values conform to specified formats? If so, do all the values conform to those formats? Examples: Phone numbers in different formats; numbers with different decimal precision; etc. CONSISTENTCY Do distinct data instances provide conflicting information about the same underlying data object? Are values consistent across data sets? Do interdependent attributes always appropriately reflect their expected consistency? Examples: different meanings for Authorization Date or Contract End Date; etc. ACCURACY Do data objects accurately represent the “real-world” values they are expected to model? Examples: misspelled names, addresses; wrong product id codes; etc. DUPLICATION Are there multiple, unnecessary representations of the same data objects within your data set? Examples: duplicate customer name, site id; address; etc. INTEGRITY What data is missing important relationship linkages? Examples: A sale event cannot be linked to a marketing campaign; etc.

The Data Quality Program (DQP): Process component
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion The Data Quality Program (DQP): Process component Objective: Improving the Quality of your Data through a strategic framework and a tactical methodology Identification: Top Data Areas of importance Top 5 issues/concerns in Data Areas Provide unfiltered dataset to EDM Impact assessment: EDM loads dataset to TSS for Profiling EDM writes up potential Business Rule EDM sets up a workshop Clarification & remediation Data Steward attends Business Rules workshop Data Steward clarifies and sign-off Business Rules EDM Implement Business Rules Monitoring EDM builds the Data Quality dashboard EDM conducts regular Data Quality compliance monitoring Identification Management Data A simple 4-step Data Quality Program (DQP) was incorporated to support the remediation and cleansing effort that was required around the Dirty Data. Data Stewards were to work with IT and Business Stewards to help clarify Business rules. The 4-step Data Quality program was the Process component, by which, Data Stewards would improve the Quality of the Data through a strategic framework and a tactical methodology using the steps above: - Identification of the issues, - Impact assessment of the issue, - Clarification & Remediation of the issue and finally - Monitoring for future potential issues The 4-step Data Quality program also has a People Component with the goal of Centralizing Management of Quality Rules for all Enterprise Data Elements. The greater roles and responsibilities included: Data management (the DG Director, DQ Program Manager, Data Stewards): They handle the implementation and regular review of the assigned rules (data quality meetings, business rules sign offs, Data Quality policy enforcement, monthly dashboards etc.) Business owners (leads in various departments e.g. Accounting, Marketing): They will own the determination of the business rules. Engage their Data Stewards when an update/new rule is required IT Subject Matter Experts (technical SME’s due to Digital River’s tribal knowledge culture): Build and maintain the interface between data consuming systems and DQP Tool Impact assessment Monitoring IT Bus. Clarification & remediation

Data Quality Program (DQP for ERP): People component
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Quality Program (DQP for ERP): People component Objective: Centralize the management of quality rules for all enterprise data elements Roles & responsibilities: Data Management (DQP Manager, Data Stewards) Handle the implementation and regular review of their assigned rules (monthly data quality meetings, rules sign off, Data Quality policy enforcement, etc…) Business Owners: Own the determination of Business rules. Engage their Data Stewards when an update/new rule is required. IT SMEs: Build and maintain the interfaces between data consuming systems and the DQP application Identification Impact assessment Clarification & remediation Monitoring Management Data IT Bus. So who would be responsible for the work? Various stewards were set up to be custodians for the department, Business/Technical area they represented. Business Owners were identified to help set up the business rules and definitions. A Business Rule Book identified the business terms and rules. If business owners couldn’t identify the rules, then technical SME’s would help provide coverage. The following matrix identified the roles typically responsible for various activities in the Data Quality Program. This was the DQP would be supported by a Resource component We needed people in the form of Data Managers/Data Stewards, Business Stewards and IT Stewards (even if they belonged to other Departments) The Resource Component included the Objective to:- - Centralize management of Quality Business Rules To make this work roles and responsibilities were set up or leveraged from the rest of the organization

DQP Roles Introduction Business Challenge 1 Business Challenge 2
Recommendations Conclusion DQP Roles

DQP: ERP Impact Assessment
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion DQP: ERP Impact Assessment DQ Workshop Document Attribute Unique Values Min Max Null Dist % Business Rules Platform Id 1 GAT Permissible values are GAT, TLA, or GNT. Nulls are not allowed. When the value is TLA, it must be recoded to TA. Customer Id 37216 742328 Nulls are not allowed. When a value is present, this field is a pass through. Bill To Address Id 39044 Ship To Address Id Site Id 216 bhaute zitvee No Nulls Allowed. Permissible Value set are determined within ERP (location of master list to be determined) Site Owner Id 151 Number and breadth of Business and Technical communities being served by the solution With the ERP implementation at Digital River, Data Governance became a strategic process by which data was treated as a strategic area within the Enterprise (as is the case with other strategic enterprise processes such as Sales, Finance, HR and Sourcing etc.) Here’s how successes were achieved in deploying Data Governance for ERP: Cultural barriers and a lack of senior-level sponsorship. In 2006, Gartner predicted that less than 10% of organizations will succeed at their first attempts at data governance. This was overcome by getting the Executive leadership and Board of Directors to understand that Data Governance and the Data Quality were necessary for the ERP initiative to be successful Lack of Data Management ownership. The concept of enterprise data governance is new to many organizations and key components of data management are not well established for immediate adoption. An organization structure where a Data management wheel (mentioned on slide 13) was established and managed by Data Stewards. Lack of Data Management knowledge. Data quality (including profiling analysis), master data management and metadata management skills are still hard to find (not the systems knowledge/management, but the underlying programs). A Data Quality Tool was selected as a result of the RFP. Data Stewards were trained to manage the tool and Professional Services contractors brought in during the implementation phase. Fear of required organizational structure changes. Assigning Data Governance responsibility to an independent executive “data governor” (who is NOT IT-dependent) requires significant changes to existing work flows and policies. Hiring a Sr. Director for Data Governance, a Data Quality Manager and Data Stewards helped with overcoming the fear. A Data Governance Steering committee made up of Senior Executives was also set up to help facilitate some of the work direction. Many internal Digital River teams and external Clients benefit from the centralization effort with the ERP, standardization and cleansing of the data. Our Accounting/ Finance/ Marketing month end close activities takes a few days. Client reports have limited reconciliation requirements (unlike the past). Many now understand the value of Data Governance and the Data Quality programs. The Impact assessment Phase involves Profiling the data using the Data Quality Tool to gather key pieces of information From which Business rules are derived in a Workshop with Bus. Stewards The Clarification and Remediation applies the business rule within the Data Quality Tool itself So lets take a look at an example of this DQP: ERP Clarification & Remediation DQ Tool Business Rules were recorded in a Business Rule Book Each rule was approved and signed off by a Business Steward

DQP: ERP Clarification & Remediation
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Identification DQP: ERP Clarification & Remediation Management Data Where do we implement the Business rules? Impact assessment Monitoring IT Bus. Staging Clarification & remediation E-Com1 DATA QUALITY ETL drop zone TSS ® payment_type varchar2 (32 byte) Visa ERP E-Com2 Innovative solutions and Problem solving Typically, Commerce platforms take orders and we need to load them into ERP We stage the attribute before loading the information in ERP. But where do we implement the Business rules? The Data Quality Tool is inserted in the process using an ETL drop zone – to manage the ‘Business rule’ For Example: you have 3 formats of the payment method coming through to the Staging area If the business rule is to recode it to VISA for these formats, then Data Quality Tool does that and sends it back to the staging environment for load to the ERP Now lets look at the Monitoring step Once a business rule is identified, ETL transforms records pertaining the column. In the staging environment, the ETL calls DQ to fire the business rule. This would standardize the data for load into the ERP based on a certified business rule. A Data Steward tracks an ERP Batch Error Queue on a daily basis. The Data Steward initiates Remediation paths for errors that are non-compliant to business rules. payment_id number (2) 1 payment_method VISA payment_method Visa 1 VS payment_method varchar2 (32 byte) VISA E-Com3 pay_method char (2 byte) VS . Each Business Rule is against a column: If the Payment method column value is: ‘Visa’ , ‘1’ , ‘VS’ Then recode the Payment Method column value to ‘VISA’

Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion DQP: ERP Monitoring Measures the level of data quality = rate of compliance with business rules (DQ Tool output) Data Quality is measured monthly, after updates in Business Rules from previous report Data Stewards responsible for acting on DQ Dashboard metrics Over 400+ attributes have business rules fired. Consistently achieving 15-20% increase in the quality of data as a result of data cleansing The Monitoring step is about measuring the rate of compliance to a business rule We’ve been historically been able to show Data Quality improvement as a metric (as shown here) You see a increase in Data Quality as a result in application of business rules to various ETL Processes for various platforms Hence Data Quality for the batches is measurable against the business rules that were signed off And Data Stewards are responsible for the monitoring ERP Data Quality Reporting and Monitoring Data Quality Dashboards for the ERP are gathered regularly: These Dashboard measure the level of data quality which is equal to the rate of compliance with business rules (Data Quality tool output). Data Quality is measured monthly, with updates in Business Rules. These are then compared from previous month’s report to see if there are any adverse trends and changes. Data Stewards are responsible for acting on the DQ Dashboard metrics which may require a re-validation of the business rule with the Business owner/Technical owner OR which may require changing the Business rule to a newly certified Business rule. Overall, on a monthly basis, we track and monitor Data Quality business rules for over 400+ attributes that are required for the ERP. The DQP increases the Data Quality level by approximately 15-20%. Both internal users and external Clients who use the Business Intelligence reports benefit from the Data Quality program. And thanks to the ERP, ETL, BI, the Data Governance and Data Quality efforts, Digital River is now able to close its Accounting/Financial/Marketing books shortly after a Month end, Quarter end or Year end!

BUSINESS Challenge 2 Real TIME ADDRESS VALIDATION for Commerce stores

The on-demand technology advantage
Who We Are Our Focus Our Passion Experience Innovation The on-demand technology advantage Industry Leading % Uptime Managed to < 40% Utilization 7 Triple Redundant Servers Worldwide An Average Day, We Support: 1.5+ billion API calls Serve 60 million pages Send 3+ million s Process 300,000 orders Create 5 authorizations/sec Host 6+ terabytes of digital content SaaS Advantage Challenge 2: Cloud Commerce Billing & Shipping Address Order Errors In 2010 Digital River was facing transaction challenges as we expanded physical shipments in the US and Globally for our Digital Software/Games and Physical Consumer Electronics segments. Digital River offers an on-demand Software as a Service (SaaS) technology advantage to our clients and customers. These include: Reduced upfront costs of operations Accelerated technology adoption Regular and Automatic feature updates The choice between remote control or fully manages services Commerce platforms SLA’s of % up time 30+ API’s and 300+ integrations PCI level 1 certification Triple-Redundant global data centers managing platforms operate at % uptime. Some of the Average Daily Stats include: 20 million client store pages served 30 million s sent as part of marketing campaigns 175,000 orders taken 5 terabytes of digital content 20,000 physical shipments and 2 second page loads Digital River’s solutions are constantly upgraded, tested and maintained to ensure client commerce is always up and running. We operate 24x7x365. Physical fulfillment throughout the world in consumer electronics Digital River’s worldwide physical fulfillment for the CE segment entails: 65+ warehouse locations 5 million+ shipments annually Reduced costs through automation and Continued Global expansion and Global fulfillment warehouse integrations

E-commerce tailored to your needs
Who We Are Our Focus Our Passion Experience Innovation E-commerce tailored to your needs Our partners complement existing systems, address specific technology requirements, and evolve with the market and your growing business over time. DG and DQ real time activities are focused on - Payments and Fraud - Fulfillment and Logistics - Security and Compliance

API First Methodology APIs Web Browser Desktop In Application Mobile
Who We Are Our Focus Our Passion Experience Innovation API First Methodology Web Browser Desktop In Application Mobile App-Store Hosted Services and Subscriptions APIs

Cloud Commerce Billing & Shipping Address Order Errors
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Cloud Commerce Billing & Shipping Address Order Errors Incorrect Cloud Commerce Billing and Shipping Address Order Errors Challenges: Increased Lost / Returned Package costs Incorrect taxation on orders Cons: Increased customer service costs Unsatisfied customers Loss of products and sales Potential for undetected fraud Many manual work efforts to go around the challenge Digital River Solution: Digital River implemented Real-Time Address validation (RTAV). A Data Quality Traffic Monitor/Router and a Data Quality Tool were selected for the RTAV. Enterprise Software licenses were acquired and Country Postal Templates and Country Postal Subscriptions were subscribed to. Data Management team was made responsible for the and Data Governance and Data Quality efforts pertain Addresses. And DQ efforts moved upstream from ERP batch to real-time. So with the Real Time Address Validation Challenge, the commerce billing/shipping address were resulting in error/correction challenges. This relates to Data Governance in that, if we don’t get the billing/shipping address correct we get Increased lost packages and incorrect taxation on orders The cons: Are Operating costs go up Customers are not satisfied There’s a potential for fraud And Manual efforts are required to resolve these. So the Digital River solution was to implement RTAV but for that we had to go through an ROI process to justify the business case

Business impact/ benefits and return on objective for RTAV
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Business impact/ benefits and return on objective for RTAV Business impact/ benefits and return on RTAV objective In Q an ROI study similar to the one above was conducted for the Real Time Address validation (RTAV) effort. We repeated using a 4-block template similar to the one conducted for the ERP DQ tool ROI effort. It summarizes Revenue retention, Shipping cost savings, a 3-5 year ROI analysis (Capital expenses vs. Operational expenses) and other soft benefits. Postal address formats/templates vary by country. If 5-7% of a country’s postal addresses change monthly as a result of People moving, New streets being built, Companies going bankrupt etc., it makes sense to purchase the postal directory regularly; monthly, quarterly, semi-annually, etc. depending on the country. We identified specific countries that were resulting in the most postal challenges for Digital River. US, Canada and Western European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom) were first targeted for Postal Directory subscription purchases. The Digital River executive staff and board reviewed the ROI for pros and cons of getting RTAV in place for our shopper stores and approved Data Management to proceed with a request for proposal (RFP).

Due diligence: ADDRESS DATA QUALITY Vendor Review
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Due diligence: ADDRESS DATA QUALITY Vendor Review 6 months later, in 2010 Q2, a full blown RFP was initiated and 4 vendors in the Real Time Address Validation and Postal Address subscription space were selected for review using a template similar to the one above. After vendor presentations and internal review, a Vendor score card was used to identify the winning vendor. The RTAV DQ tool procurement process was initiated and enterprise contracts for Product licenses and Country postal directory subscriptions acquired. Hardware was procured and set up in our multi datacenter redundant architecture. Vendor professional services contractors were brought in to assist with the software install and production deployment.

LENGTH of TIME RTAV has been in place/program Evaluation
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion LENGTH of TIME RTAV has been in place/program Evaluation Length of time the RTAV solution has been in place/program evolution The Goal was to have a single source of truth for all Country Postal Address information. The Data Quality Tool and Postal Directories were the ideal solution we had hoped for in an ideal enterprise license model. The Data Quality Shopper Store Real Time Address Validation Service (RTAV) was initiated at Digital River in Q It took a year to deploy to our production environments. It has been successfully used the past 3 years. And the client base using RTAV is expanding. Coming back to the Order Check out workflow at the source platform We tore up the order checkout process and inserted Data Quality Tool calls for RTAV checks The Data Quality Tool is integrated into the process to enhance the quality of the data about to be distributed and consumed across internal systems Data Cleansing at the source before consumption into Digital River’s ecosystem Jason manages the Postal Directory Updates, Software upgrades to the Servers, Involved in constant monitoring and notification of processing issues As the Business lead I manage the - Data Quality Tool Product business relationship - Purchases of any necessary Data Quality Tool software, Country Templates and Country Postal Directories and - Build internal relationships to expand the use of the DQP internally ` The checkout workflow starts when a product is place in a shopping cart and an order number gets assigned. At that point the shopper is invoked to supply their Billing/Shipping Address for verification (which is validated against the DQ tool address for the particular country). During the Address validation check with the country postal directories, the DQ tool provides a match level code to flag certain address text lines for further correction. These extend from match code 1 to 6: 0. Exact match: Input data successfully matched to directory 1. City/Province or postcode fail: No city/Postcode found/City misspelled 2. Street name failure: No street name on input, either misspelled/missing 3. House number range failure: Range doesn’t match the postal directory 4. Street components failure: Avg. score lower than the acceptable score 5. Multiple possible matches to directory: Input data incomplete 6. Ambiguous Match: a match exists, but too many corrections are required to make the match viable. e.g. Rural Record Failure. Once addresses have been corrected/ validated, the shopper proceeds to enter their payment information (credit card, wire transfer or other) and complete the order. DQP: How RTAV works

Scale of the RTAV Release Process solution (Enterprise)
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Scale of the RTAV Release Process solution (Enterprise) Scale of the solution (Enterprise wide) The RTAV is set up as a scalable Enterprise service to cover each of our Data Centers and client stores. The RTAV using the DQ Tool corrects a Postal Address when a postal address is sent to it for validation from the shopper store. Site level attributes and settings are used to control which client sites get to use the feature and allow for custom configurations of the shopper store. Our platform developers set up XML-over-HTTP as the protocol to transmit the API calls. Using some axioms, the Real Time Address Validation goal was to build an architecture that would have an average throughput of approximately 100 orders/sec. with an average address validation invocation latency of 10ms at percentile per page. Our Performance Engineering team tests have identified that we are at that Service Level Agreement (SLA) for the Platform-RTAV service. The RTAV data quality solution is on a 3 Data Center redundant and failover protected footprint. A release process has been put in place to help sustain new Data Quality tool code development for address parsing and matching and postal directory deployments. The Code releases are regularly scheduled. It allows enough time for Development, System testing, Integration testing, before production deployment. Implementation was against 3 Data Centers. The Data Quality Tool has a Traffic Resource Manager that interfaces with our application It is designed to keep pace with changing workloads, the Director regulates traffic between calling applications and the cleansing and matching servers (multi-threaded, server processes management, stats reporting etc.). It was load balance and set up in Active/Active configuration – this is where our cleansing and matching servers are in Production Data Quality Tool code deployment process was put in place, in concert with the production commerce platform release process

DQP: Real Time Address Validation (RTAV)
Identification Management Data Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Impact assessment Monitoring IT Bus. DQP: Real Time Address Validation (RTAV) Clarification & remediation E-Com Platform 1 Bad Addresses Data Quality & Traffic Monitoring Service 3 Data Center red. solution Load balanced Code Promotion (Dev, Sys).. Platform Release Cycle Real Time Cleansing E-Com Platform 2 Cleansed Addresses IT Owners, Code Owners, Tech. SME’s E-Com Platform 3 Number and breadth of Business and Technical communities being served by the RTAV solution Evolution of RTAV The evolution of the Enterprise Data Management program at Digital River was initially focused to the ERP Batch mode activities (between ). We used ETL to validate addresses against Country Postal directories in the Data Quality Tool, and passing it back to ETL to load into ERP. We started off with around 18 countries In 2010, we engaged to bring Real Time Address validation to our shopper stores. Then we decided to move upstream and do the cleansing in Real-Time on our commerce applications. The commerce platforms make a call directly to Data Quality Tool through Traffic Monitoring Service in a multi-data center redundant solution with a 99.95% availability SLA In the near future we plan to further expand on the available Country Postal Templates and Country Postal Directories that our Enterprise client stores can validated against Traffic Router Hourly Batch Cleansing Bad Addresses ETL Data Stewards DQP Tool Data Quality & Profiling Discovery Tool 1 Data Center solution with backup Load balanced Code Promotion, Dev, Sys, Int, Prod ERP Release Cycle Clean Addresses Global Postal Directories ERP System Countries covered N.America (2) W. Europe Bundle (16) LAM Bundle (1) APAC Bundle (2 Multi-byte, 1 single byte) Future Expansion E.Europe expansion APAC expansion LAM expansion Business Consumers/Owners

The Team Evolution: Data Management at Digital River (2008-13)
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion The Team Evolution: Data Management at Digital River ( ) 2008 2010 Innovative RTAV solutions and Problem solving RTAV is catering to multiple groups identified the Data Governance Steering committees. We continued to make progress even as corporate org-charts were changing over the years. We leveraged the same DQ Tool for batch mode cleansing and real-time cleansing. In 2012 we acquired the world wide Country template bundle after we realized it made financial sense to do that rather than continue buy only a few countries postal address templates as a time. We are going Global with the solution for our clients to benefit from it. We also acquired additional Postal Directory subscriptions for countries in Asia. We will acquire additional Postal Directory subscriptions as the business need arises. This RTAV service and Data quality solution is capable of managing various language and country combinations that we have to provide Real Time Address Validation coverage against. For some Asian countries we are still working out the details around double byte character Web Storefronts and RTAV formats. By providing Real Time Address Validation to our clients on their multi-lingual shopper stores we have added a highly scalable feature solution. It is a remarkable achievement that we can flag items as having been cleansed in real-time that we do NOT need to cleanse a second time as part of the ERP batch mode cleansing. As our clients expand their Global businesses to new countries, we’ll continue to support the shopper purchases via RTAV subscriptions to postal directories from new countries. Monthly dashboards and reporting have been set up to track clients benefiting from RTAV and the order volumes of addresses cleansed. We are also tracking the number of countries covered by our RTAV solution. In Dec 2012 alone, during our most busy quarter of the year, Digital River had approximately 200,000 orders go through RTAV, against around 20 Country postal directories, where we do a large volume of business, for approximately 20% of our clients. The evolution of the Data Management team, our Data Quality tools used, organizational reporting structure and dashboards created over the years show that we have consistently proved our successes in this topic. Our systematic approach and innovation culture allow us to deliver new Data Governance and Data Quality related capabilities 2013

OVERALL BENEFITS of the DATA QUALITY Program
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion OVERALL BENEFITS of the DATA QUALITY Program Data Quality provides - Single, independent environment manages all business rules that ensures data quality for ERP DQ Traffic Routing Tool and DQ Tool provides the ability to conduct Real Time Address validation for the Commerce platforms and other batch mode cleansing functionality for the ERP DQP Tool Advantage: When new e-commerce platforms are integrated to the ERP, existing business rules are reused, minimizing redundant development, and centralized management of Business rules DQP: A 4-step process that requires People, Process and Technology to support our Data Governance efforts 2010 Pitney Bowes Software survey - 2/3 of organizations (revenues > $1Billion), have Data Governance activities underway (including MDM projects) Scale of the solution (Enterprise wide) The RTAV is set up as a scalable Enterprise service to cover each of our Data Centers and client stores. The RTAV using the DQ Tool corrects a Postal Address when a postal address is sent to it for validation from the shopper store. Site level attributes and settings are used to control which client sites get to use the feature and allow for custom configurations of the shopper store. Our platform developers set up XML-over-HTTP as the protocol to transmit the API calls. Using some axioms, the Real Time Address Validation goal was to build an architecture that would have an average throughput of approximately 100 orders/sec. with an average address validation invocation latency of 10ms at percentile per page. Our Performance Engineering team tests have identified that we are at that Service Level Agreement (SLA) for the Platform-RTAV service. The RTAV data quality solution is on a 3 Data Center redundant and failover protected footprint. A release process has been put in place to help sustain new Data Quality tool code development for address parsing and matching and postal directory deployments. The Code releases are regularly scheduled. It allows enough time for Development, System testing, Integration testing, before production deployment. Implementation was against 3 Data Centers. The Data Quality Tool has a Traffic Resource Manager that interfaces with our application It is designed to keep pace with changing workloads, the Director regulates traffic between calling applications and the cleansing and matching servers (multi-threaded, server processes management, stats reporting etc.). It was load balance and set up in Active/Active configuration – this is where our cleansing and matching servers are in Production Data Quality Tool code deployment process was put in place, in concert with the production commerce platform release process

FURTHER RECOMMENDATIONS
What other changes could potentially work better?

People, Process, technology
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion People, Process, technology HR Governance Financial Governance Data Governance People HR associates Financial analysts; accountants Data Stewards Process Human Capital Management Finance & Accounting Data Management Technology HR systems Accounting systems (G/L; Tax; Treasury) Data Quality; MDM; MDR systems Functional Programs Skill set mgmt Recruiting Benefits mgmt Compensation framework Contractor mgmt Training Budget & forecasting Treasury Financial reporting Tax Investment Mgmt Data Quality Program MDM Program MDR Program Managed asset Labor force Financial assets & liabilities Data Policies & Regulations HR policies SOX, SAS 70, SEC, IFRS, etc… Privacy laws; HIPAA; SOX; DM Policies; etc… Functional leaders Training Mgr Recruitment Mgr Benefits Mgr Comptroller Tax Mgr Investment Mgr DQP Mgr MDM Mgr MDR Mgr Process owner VP of HR VP of Finance / CFO VP of Data Management / CDO (Chief Data Officer) Data Governance need not be invented from scratch: Some companies have Data Governance as part of their IT Governance Here you see an image from Baseline Consulting (a premier data governance consulting firm). They’ve broken it down to 2 sections Governance and Management With a Tactical approach being taken in the Data Quality end and things get more strategic on the Governance end Notice the scope of control gets larger on the strategic side

New Org. roles Chief Data Officer/VP of Data Mgmt.
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion New Org. roles Chief Data Officer/VP of Data Mgmt. IT / MIS Data Mgmt. Data Governance + IT Governance CIO / VP Technology CDO / VP Data Mgmt. Focus: Process Mgmt Focus: Data Mgmt Data Mgmt. Some companies have Data Governance as part of their IT Governance Here you see an image from Baseline Consulting (a premier data governance consulting firm). They’ve broken it down to 2 sections Governance and Management With a Tactical approach being taken in the Data Quality end and things get more strategic on the Governance end Notice the scope of control gets larger on the strategic side Manager / Director Cannot be governed Independently Not managed as a Strategic Asset Conflict of interests between Technology and Data Management Difficult to enforce Quality rules across the enterprise High cost and low returns Data becomes silo-driven (like IT…) Responsibility without authority Data Governed as an Independent Asset Centralized authority: CDO / VP Data Mgmt. Improved control over compliance and financial risks Clear accountability for all aspects of data Cost reductions from uniform DM processes Data scalable across the enterprise, and over time (growth, acquisitions…) Data Management no longer dependent on IT strategy

Expansion of the EDM Matrix Organization
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Expansion of the EDM Matrix Organization Senior DM Executives CDO* DM Council/ Steering Committee Program Managers DQ MDM MDR LDM . . . Ownership of such a Data Management team lies with a CDO (e.g Bank of America, Yahoo, Federal Communications Commission etc.) Who works closely with a Data Management Steering committee Program managers are identified for the DQP, MDM, MDR, LDM, DRDP etc. EDM Matrix Org. with Program leaders, Data Stewards and Data Management Areas (such as Accounting, MarketForce, Affiliate, BlueHornet, Payments or other) DMA** 1 DMA** 2 Data Stewards *** DMA** 3 DMA** 4 * Chief Data Officer (typically reports to CTO, CIO, CEO, CMO, CSO) ** Data Management Area: typically determined using a Data Consumption Matrix (regularly updated) *** Data Stewards can either belong to the EDMO, remain in their respective DMA, or both.

Data Governance Scope of Control
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Governance Scope of Control Some companies have Data Governance as part of their IT Governance Here you see an image from Baseline Consulting (a premier data governance consulting firm). They’ve broken it down to 2 sections Governance and Management With a Tactical approach being taken in the Data Quality end and things get more strategic on the Governance end Notice the scope of control gets larger on the strategic side © Copyright Baseline Consulting Group, Used with permission from SAS Institute.

Conclusion What are the lessons learned?

Data Governance at Digital River
Introduction Business Challenge 1 Business Challenge 2 Recommendations Conclusion Data Governance at Digital River Identification Data Governance and the DQP: Managed process oversight to ensure that data-related processes and controls are being followed Data Governance at Digital River Is a Strategic and Permanent investment to treat Data as a Strategic Asset It exists through a functional Enterprise Data Management program Data Quality Program (DQP) A 4-step process. Requires People, Process and Technology to support our Data Governance efforts Reduces Operational costs for order checkout and info. delivery processes Reduces Risk exposures (financial, regulatory, market and strategic) Both Require:- An organizational change to the Ternary model (Business / Data / IT) A “Data Governor Authority” (e.g. VP of Data Mgmt.) and a dedicated EDM team Effective use of Data Quality tools (for Profiling, Discovery, Cleansing etc.) Contrary to many beliefs the Data Quality Tool is NOT a Database It is a repository of business rules; Rules can be managed and reused. Management Data Impact assessment Monitoring IT Bus. Clarification & remediation Since 2008 the Data Governance, Data Quality programs and the Data Stewardship programs at Digital River have been rolled out and expanded. The Data Governance Steering Committee continues to allow the Data Management operations to operate independently even while being engaged to meet immediate Business needs that typically take multiple years to get in place e.g. the ERP project, RTAV activities. Thus far, the Data Management team has operated on a small footprint; however, as Global commerce expands in our hyper-connected world via Social Media, Cloud, and Mobile, we expect to continue to manage data quality in our enterprise systems via batch cleansing mode or real time cleansing mode. We also expect to be engaged in Big Data cleansing. As Digital River continues to re-organize and make adjustments to strategy, we expect Data Governance and Data Quality to be part of various Steering committees that the Executive team is setting up for collaborative engagement across the enterprise. Overall, we continue to treat data as a strategic and valued asset to Digital River even as we adapt to business/technological disruptions in the market, internal cultural changes and corporate re-orgs. These are the reasons for continued DG, DQ, EDM best practices, progress and change at Digital River.

DEEPAK BHASKAR Sr. Manager, Data Governance, Trillium Product Governance and Compliance Digital River, Inc. DB_2008 dbhaskar03 dbhaskar2008

Data Governance & Data Quality Programs

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