Hot data

When John Bottega was named as Chief Data Officer of Citigroup in March 2006, he was taking a step into the unknown. Though the CDO role had been growing in popularity in other industries, Bottega’s appointment marked its first deployment in the financial sector. “While it is exciting to be the first person to hold this position, it remains an every-day challenge to define the role - and with it, to manage expectations,” he says  “The CDO is a change agent. Proper data management is a culture change. These are not easy things to implement.” But as befits someone who has achieved a Black Belt in karate in his spare time, Bottega is not the kind to shy away from a challenge.

“I am honoured to hold this position at Citi,” he continues. “As someone who has worked in the data management space for many years, this is an exciting career milestone for me. I am grateful to Citi’s senior management who, recognizing the importance of the data management discipline, took the innovative step to create this position.” Tasked with driving data management strategy, policy and function across the entire corporation, Botttega has to keep a lot of plates spinning. “My responsibilities span the breadth of data, from financial instrument repositories, to customer and account data, corporate actions, pricing, positions and transactions,” he explains. Bottega goes on to describe the role of CDO as that of a facilitator: “My job includes establishing a data governance structure, defining data ownership and stewardship, coordinating technology and organizing operations.” If all that sounds like an incredibly daunting set of responsibilities, at least it is focused on a clearly defined goal. “Best practices dictate that core enterprise data be managed in a federated manner,” says Bottega. “We leverage off the firm’s best subject matter experts across the various business units to create the ‘golden copy’ and make it available throughout the firm via standard distribution services.”

The value of information

The increasing prevalence of the CDO role is clear indication that business has woken up to the importance of effective data management. It’s a viewpoint that Bottega supports. “Realizing what this role can provide to a firm is becoming better understood,” he says.  “Since my appointment at Citi, several other financial firms have established their own CDO positions. Several others are still in discussion. The business justification is straightforward: data is critical to a financial institution.” And though Bottega speaks from a financial services perspective, it is clear that this focus on data is central to any modern enterprise. “Data is recognized as an important component of a firm’s effective and efficient operation,” he says. It falls to executives like Bottega to ensure that data is managed and recognized as a key asset to the firm. A delicate balance needs to be struck between on achieving short-term benefits while also building long-term solutions according to a well-defined strategic roadmap. No easy task, but one which Bottega is facing with characteristic fortitude.

As a new kid on the block, the CDO role is still evolving. In response to the challenges of our data-heavy world, more and more firms are waking up to its potential, so what does Bottega see as the defining element of the position? “It would be to assume the ‘ownership’ of the data management challenge,” he says without hesitation. “‘Who owns the data problem?’ is a question I have heard asked across the industry. Either there are too many people trying independently to solve a data problem, creating unconnected solutions, or there is no one, allowing problems to linger.” But the signs are there that a shift in the landscape is already underway, as demonstrated by the other firms following Citi’s lead in creating their own CDOs.

Asked about the importance of taking a coherent approach to the data issue, Bottega explains that it is no longer a choice, but a necessity. “When speaking about implementing a data management program, firms are realising it is not a matter of why it should be done – it is a matter of what will happen if it doesn’t get done,” he says. “Regulatory requirements, financial exposure and reputation risk are all critical aspects to a firm and all tightly linked to an efficient data management strategy.”

Challenging times

When questioned about the specific challenges he faces at Citi, Bottega is quick to point out that they are essentially the same ones facing any firm: duplicate repositories of data, the existence of legacy systems, internal changes and the after effects of external acquisitions all play their part. “Like every other firm on the street, lack of attention over the years and the ability to ‘patch’ solutions has created a complicated network of data creation, data maintenance and data movement.” In addition, Bottega points to the problem of recognized industry standards, too rare in some areas and too commonplace in others, which has created a large ‘entity symbiology’ challenge. “We as an industry don’t do a very good job of ‘bar-coding’ our products, customers and business entities,” he explains. “This has led to the creation of a disjointed pockets of information that are very difficult to holistically view.”

As to how Citi is responding to these challenges, Bottega outlines a four-point process based on the concepts of remediation, rationalisation, automation and governance. “First and foremost, we need to correct and cleanse our critical data repositories so we are best positioned to both address the many regulatory requirements and provide the flexibility that allows the business to pursue new markets and new opportunities.” Parallel to this effort, Citi are also rationalizing their existing stores of data and data operations: “We need to tap into the ‘best of our best’, while at the same time identifying and filling the gaps of missing or incorrect data.” explains Bottega. Automation requires clear documentation of business and maintenance processes, so that it is possible to reengineer them for maximum efficiency. The final step is a strong governance model that drives and supports the overall data program. Despite the complicated nature of the work and his comparatively short time in the job, Bottega is understandably pleased to report that the company is making progress in all areas.

But why is the task being faced by data professionals so immense? Can it be attributed to previous mistakes in the storing of data? Bottega identifies a different culprit: “I don’t believe you can say mistakes were made in ‘storing’ data,” he says. “More correctly stated, mistakes have been made over the years in the ‘process’ of storing data. He goes on to explain that, if you aren’t taking sufficient care of your data management processes, then even the best database in the world isn’t going to solve your problems. “Disjointed databases are not the root cause of the problem, but a result of the problem,” he continues. “Proper data management comes down to proper business process and process flow. How the information is obtained, stored, maintained and distributed has to be understood end-to-end. You cannot do one without the other and hope to achieve a complete data management solution.”

On the horizon

Finally, talk turns to the future. How will the CDO role continue to develop and grow? And what resources will be provided to assist in the struggle to effectively manage data? After all, this cannot be a one-man job. Bottega’s experiences at Citi point to one possible solution: “One of the key foundational elements of the data management strategy at Citi was the creation of the Office of Data Management (ODM). The ODM is now taking on the data management challenges, engaging the key stakeholders and driving new solutions for the business and the bank at large.”

Despite management’s increased interest in the data segment of their operations, ensuring continued support rest firmly in the hands of the CDO and ODM. “Success will drive scope and responsibility,” says Bottega. “Establishing credibility with its stakeholders will expand ODM responsibilities. A strong alliance with the business will empower the ODM to establish important data policy and enforce compliance.” Technology will be a critical tool in making this happen: “As the business assumes the driving force of the data solutions, technology can focus on implementation and technology best practices,” continues Bottega. “Better technology implementations lead to more efficient operations.” 

In his role as Chief Data Officer, John Bottega  is responsible for planning and  managing the Citigroup's data  strategy, policies, line functions and data  investments and  working closely with the Citi Global Infrastructure  Conversion  and Alignment Program (GICAP). He is also responsible for organizing and running the CIB Data Council and coordinating and running the newly formed Business Data Officers committee.  

Prior to joining Citi, Bottega held the position of Global Head of Product & Price Reference Data at Credit Suisse, responsible for the  acquisition, storage,  management and distribution of financial instrument  data. Before that, John was Product Manager at Merrill Lynch  for Merrill’s Product Master Environment.

From 1990 to 1999, Bottega worked at Lehman Brothers where he was responsible  for the  front-office Security Master Database Environment, implementing centralized processing of vendor feeds, data  quality validations, exception handing, workflow and data distribution.

Bottega is an  active industry participant,  presenting at various Data Management conferences globally for  over seven years. Additionally, John is a member of the Enterprise Data Council (EDM Council) Executive Committee, current  member  and former chairman of the Financial Information Services Division/Software and Information Industry Association (FISD)  Executive  Committee, and has been a member of the ISO WG10 and WG11 industry standards bodies.