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Why ‘Data Lineage’ should go beyond regulatory needs?

Thomas George, Chief Data Officer, Global Investment Banking, Societe Generale Global Solution Centre India. Thomas has around 20 years of experience in Data Quality Management Initiative, having helmed multiple leadership roles within technology functions. In this blog post, he discusses more about data lineage through a simple example.

Regulators under the supervision of the Basel Committee on Banking Supervision (BCBS) have been encouraging global banks to publish the legitimacy of data transformations to prevent financial fraud. While it’s important to follow the regulators’ guidelines, it’s equally important for us as a financial institution to turn the table to be trailblazers, to manage the data flow for the organisation’s needs and benefits. One such topic is data lineage.

Let’s understand more about data lineage through a simple example.

Think of a water distribution system – it has a centralized location from where the water points originates for each household. The map gives all the details of main water origin point, transfer locations, secondary storage points and water pumps, etc.

If someone wants a new connection, the map helps in giving a clear indication of a water point with required pressure. Now think of a scenario, if there are multiple origination points, storages and water pumps, it becomes complicated and the need for a map becomes even more critical.

This applies to the numerous data attributes that’s generated in an organisation. The ‘Data Lineage’ kind of works like a map to show where the data comes from (source), where is it flowing to (consumption points and storage) and what happens to it along the way (transformation).

There are two ways data lineages is mapped in any organisation:

Another term that gets confused with ‘Data Lineage’ is ‘Data Provenance’, which  is used in the context of business data lineage as well as for identifying the origin along with the process that affect the creation of data at source. This will be another discussion which we will keep it for later.

For now, let’s understand about ‘Technical Data Lineage’.

Many organisations especially banks have moved from technical lineage to business data lineage, as it’ easier to do and can be done using expert judgement. Technical lineage becomes complicated because of duplicate, legacy, proprietary, disparate systems and among others.

Technical lineage is still in nascent stage, and we are yet to see a successful implementation of this topic in any industry. Some solution providers who claim to have done successful implementations are Talend, Informatica Metadata Manager, MANTA, to name a few.

Some key benefits of technical lineage include:

Approach to data lineage

Steps involved in doing the technical lineage:

Ways of doing Technical data lineage:

With these above points, I would say that there is a need for technical data lineage. The implementation should be a combination of pattern based and manual solutions which would go above and beyond what regulators need and will give us control over data and hence its value. We are running helter-skelter to manage data, and this should change.

Above all, as go-green is the call out today for a better tomorrow, with data lineage you build your karma with gratitude for future generations to work on CRM, REG, CPLE, etc.

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