Building a comprehensive data governance program can be challenging without clear guidance. The Data Management Capability Assessment Model (DCAM) Framework enables organizations to establish robust data governance programs and transform data challenges into valuable opportunities.
As data sources and volumes continue to grow at an unprecedented rate, financial institutions must adopt a comprehensive and unified approach to data management if they are to address a range of challenges that can result in increased costs, poor decision making and security breaches.
When transforming data challenges into opportunities, a fresh approach to data governance is crucial. However, before designing and implementing new practices, organizations should evaluate their current data landscape – especially data maturity, data literacy, and data governance knowledge.
There are various frameworks and tools available for a comprehensive assessment, including the DCAM framework. DCAM enables organizations to understand and identify gaps and strengths in their data governance practices, as well as the roles and competencies of the data governance team.
DCAM was originally developed by the Enterprise Data Management (EDM) Council, a non-profit trade association established by the financial industry to define standards, policies, and processes. These elements ensure that organizations apply a structured approach when assessing their data management capabilities.
DCAM is organized into eight core components, including data quality, data governance, data architecture, and data operations. In addition, the DCAM framework contains a series of 38 capabilities with 136 sub-capabilities spanning objectives, questions, artifacts of evidence, and criteria for scoring.1
For instance, if an organization must assess its data security risks, the corresponding DCAM capability enables the organization to define roles, responsibilities, and dependencies for all data resources to identify and address those risks. Furthermore, sub-capabilities help establish a clear roadmap that further clarifies data functions and obligations.
Source: EDM Council
The DCAM framework includes a flexible numeric scoring system that enables organizations to categorize risks and gain a deeper understanding of their strengths and weaknesses. The scoring system ranges from 1 (Not Initiated) to 6 (Enhanced). Through multiple interviews, observations, and documentation reviews, a score is assigned to each of the eight key components to create a holistic composite score.
Numerical scoring yields several advantages. It minimizes subjectivity since each capability (and sub-capability) comes with precisely defined and consistent criteria. Moreover, numerical scoring promotes a shared understanding among all stakeholders. As an example, individuals who might not grasp the governance requirements from an information security standpoint can better understand the difference between a 'Not Initiated' program and an 'Enhanced' program by reviewing the business case for the capability.
In addition, DCAM is widely recognized as the industry standard for measuring data management capabilities so scores can be compared with peers and competitors. This enables organizations to understand the effectiveness of a data management program within the wider context of their respective industry.
Through the application of the DCAM framework, organizations can expect to see performance improvements in many areas including:
• Increased scalability and agility: The organization will be able to handle larger volumes of data due to efficient processes, standards, and guidelines. The organization’s data program will also be adaptable, so that it can introduce new data sources rapidly when needed.
• Enhanced data security and compliance: A sound data management program ensures compliance with data protection regulations, legal requirements, and industry standards. A commitment to data security and compliance can solidify trust between customers, partners, and the general public.
• Actionable business insights and analytics: Effective data management enables organizations to derive actionable insights from their data, perform advanced analytics, and gain a competitive advantage against their peers.
As a DCAM authorized partner, Capco has first-hand experience in how organizations can achieve many of these benefits. We recently worked with a bank that sought to improve its existing data management program, with an emphasis on data governance and protection practices. The client also wanted to ensure compliance with regulatory expectations across its Enterprise Chief Data Office (ECDO).
The organization undertook a DCAM assessment to build a risk diagnosis and gap analysis of its ECDO and current book of work. It then defined and validated data control functions with stakeholders to establish enterprise-wide alignment to DCAM best practices.
With Capco’s guidance, it used DCAM assessment results to define learning objectives for the data governance program and implement a solution that aligned with the goals, vision, and data strategy of the organization. Not only does the client now have a better understanding of its data governance and protection relative to peers, but they are also better positioned and prepared to strategize, protect, and navigate data regulations due to a comprehensive data roadmap.
In addition, DCAM principles – such as delegating decision-making to the correct parties and fostering collaboration – enabled the client’s department to become a self-organizing team ready to adapt to any regulatory changes in the future.
In conclusion, DCAM serves as a valuable tool for organizations seeking to enhance their data management proficiency and drive enhanced business outcomes. By leveraging DCAM’s principles and numerical scoring system, businesses can enhance their data capabilities, make well-informed decisions, and gain a competitive edge against industry peers in today’s data-centric world.
Embracing the DCAM framework not only fosters a data-driven culture within an organization, but also ensures compliance, security, and reliability when managing vast and diverse datasets that help drive growth in our data-driven era.
1 https://edmcouncil.org/frameworks/dcam/#about
