Data Privacy and Protection SUSTAINABILITY MANAGEMENT PLAN GOAL 100% of data objects identified for common definition in the Lockheed Martin data strategy (Tier 1 Data) and 100% of certified data sources have data stewards assigned by 2022. 2021 PROGRESS We achieved the following three major milestones in 2021: • Established the number of Tier 1 Data elements to include in our Lockheed Martin data strategy • Completed the definition of “program” Tier 1 Data • Established data steward committees for an additional three functions Tier 1 Data Lockheed Martin regards data as a strategic asset and is committed to its responsible governance and management. We are optimizing how we extract value from data by improving interoperability and data quality, while minimizing data sensitivity risk. Tier 1 Data, which are a set of common and agreed upon definitions for terms and their data equivalents, are a key aspect supporting our transition to a model-based enterprise 18 . Examples of such terms for Lockheed Martin include program, employee, customer and supplier. When we establish common, governing definitions for terms, it enables any employee creating an information technology system to align to the common definition. Once every system has adopted the definition, we can allow data to move through those systems while experiencing minimal translation issues. Additionally, Tier 1 Data is a significant enabler to digital responsibility since it improves our ability to identify, locate, govern, manage and protect sensitive data. Our new internal corporate policy on data governance includes our data governance standards and a data stewardship procedure. Our Chief Data & Analytics Officer and chair of our Enterprise Data Governance Board is responsible for creation of Tier 1 Data and their associated definitions. Our Enterprise Data Governance Board is comprised of the Chief Data & Analytics Officer from each business area, as well as senior leadership representatives from legal, cybersecurity and corporate security. This board, which meets once per month, is empowered to lead our data governance policy and drive decisions, and is a subset of our Data Governance Council that meets quarterly and guides our data strategy across the company. Aligning systems and adopting the standard, as well as empowering data stewards (individuals entrusted with effective control and use of data and information assets) will occur within all business areas. In 2021, we determined our Tier 1 Data by balancing commonality with the effort required for Tier 1 Data management. This included setting data quality requirements. We then focused on software and systems integration, policy and target approval and developing an operating model that will guide us from idea to implementation. Looking forward, we will identify data stewards and establish data steward committees, coach these stewards through our operating model and work towards Tier 1 Data definitions. “Tier 1 Data underpins the digital threads that traverse our business processes enabling the transformation to a model-based enterprise. Our success allows Lockheed Martin to simultaneously deliver more business value and improve our ability to protect sensitive data” — Mike Baylor, Vice President, Chief Data & Analytics Officer 18 As stated in our enterprise reference architecture, a model-based enterprise is an organizational approach that connects and consumes product data seamlessly, eliminating functional and system silos and limiting the usage of transactional systems by leveraging data rich models. About this Report Our Company Our Sustainability Approach Our Sustainability Priorities Beyond the SMP ESG Performance Index www.lockheedmartin.com 2021 Sustainability Report 29
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