Pre-Conference Workshop MDM & Data Governance Quick · PDF filePre-Conference Workshop MDM & Data Governance Quick Start 7 th ... Stibo, Teradata MDM, TIBCO ... Microsoft Master Data

Pre-Conference Workshop MDM & Data Governance

Quick Start

7th Annual

MDM & Data Governance Canada Summit June 27, 2012

“Everything You Always Wanted to Know About ‘MDM’ … But Were Afraid to Ask”

Aaron Zornes Chief Research Officer

The MDM Institute [email protected]

© 2012 The MDM Institute www.the-MDM-Institute.com

mailto:[email protected]

Objectives

What are MDM, CDI, PIM, RDM & data governance? What is driving business interest in these solutions?

What are the better architectures & vendors? How do these solutions differ from DW & CRM initiatives?

How will the market & technologies evolve? Who will be the leading vendors?

How does an IT organization get started? How do I optimize my professional development to leverage this trend on behalf of my management?

What are the most successful best practices for creating a single customer view?

What do these projects look like in the real world? What key challenges are companies encountering & how are they addressing them?


Boot Camp Working Agenda

MDM Strategic Planning Assumptions Business imperatives 2012-13 Technical challenges 2012-13 Deployment strategies, justification strategies & futures

Use cases

MDM Field Reports on Key Solutions Providers

Software – DataFlux, Heiler, IBI MD Center, IBM MDM Server, Informatica MDM (Siperian), Microsoft, Oracle Customer Hub (CDH, DRM, UCM), Orchestra Networks, SAP NetWeaver MDM/MDG, Software AG, Stibo, Teradata MDM, TIBCO, & VisionWare

MDM Evaluation Criteria & Case Studies Review of “top 10” evaluation criteria in use by large IT organizations


Details

Establishing key MDM solution strategic planning assumptions in a rapidly churning market Multi-domain, master data governance, hierarchy

management, identity resolution, & more Determining MDM evaluation criteria & weighting

Architectures, data models, SOA, semantic models, etc. Leveraging case studies as templates for "out of box"

MDM strategizing Financial services, pharma, government, telecoms, & more


Key MDM Strategic Planning Assumptions

How to kickstart the process & funding for data governance?

How to determine the ROI of phase 1 MDM programs for customer/party & product?

What are the better architectures & vendors? How do these solutions differ from data warehouse &customer relationship management initiatives?


Determining MDM Evaluation Criteria

Understanding the pros & cons of the dominant architectural models & evaluation criteria – e.g., proactive Data Governance, identity resolution, hierarchy management, scalability, etc.

Assessing the vendor landscape – e.g., registry, data hub, EAI/EII, portals, SOA-based web services, data service provider, etc.

Applying a rigorous methodology to MDM product evaluations & implementations for both mega vendor solutions (IBM MDM Server, Informatica MDM, Microsoft Master Data Services, Oracle MDM, SAP MDM) & pure play (DataFlux, Heiler, IBI MD Center, Orchestra, Stibo, Teradata, TIBCO)


Leveraging Case Studies as Templates

Case studies provide critical insights to help you plan, implement & govern a business-driven program for MDM & its variants – Customer Data Integration (CDI) Product Information Management (PIM) Reference Data Management (RDM) Master Data Governance (MDG)


How Many Analysts Does It Take To Change a Light Bulb?

Gartner analyst “We feel that a new bulb is necessary & that the bulb will be

replaced (0.99 probability) — we have a new service that addresses that issue”

Forrester/Giga analyst “In 5 years, the new illumination technologies will replace

what you currently have ... Wait”

Ovum/Aberdeen analyst “We’ll write about the old bulb for $25,000”

IDC analyst “There are 1,230,245 burnt-out bulbs in the world — for

$2,500, we will tell you where they are ...”

Big Three consultant “It’s time to re-engineer the sun ...”


MDM & Data Governance Summit™ Conference Series

MDM & Data Governance Summit Canada The Carlu – Toronto ▪ June 27-28

MDM & Data Governance Summit Americas Marriott Marquis NYC Times Square ▪ October 14-16

MDM & Data Governance Summit Singapore Marina Bay Sands Resort ▪ November 27-28

MDM & Data Governance Summit Shanghai Shanghai International Convention Center ▪ March 2013

MDM & Data Governance Summit Europe Radisson BLU – London ▪ April 13-15, 2013

MDM & Data Governance Summit Asia-Pacific Four Points Darling Harbour– Sydney ▪ May 20-21, 2013

MDM & Data Governance Tokyo Belle Salle Kanda– Tokyo ▪ June 14, 2013

MDM & Data Governance Summit San Francisco Hyatt Embarcadero – San Francisco ▪ June 2013

© 2012 The MDM Institute www.The-MDM-Institute.com

“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”

About the MDM Institute

Founded 2004 to focus on MDM business drivers & technology challenges

MDM Advisory Council™ of 150 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects

MDM Business Council™ website access & email support to 35,500+ members

MDM Road Map & Milestones™ annual strategic planning assumptions

MDM Alert™ newsletter

MDM Market Pulse™ monthly surveys

MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas

MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Shanghai, Singapore, Sydney, Toronto, & Tokyo

“Independent, Authoritative, & Relevant”

About Aaron Zornes Most quoted industry analyst authority on topics of MDM & CDI

Founder & Chief Research Officer of the MDM Institute Conference chairman for DM Review’s MDM SUMMIT conference series Founded & ran META Group’s largest research practice for 14 years M.S. in Management Information Systems from University of Arizona


MDM Institute Advisory Council

150 organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads

Representative Members 3M BCD Travel Bell Canada Caterpillar Cisco Systems Citizens Communications COUNTRY Financials Educational Testing Svcs EMC GE Healthcare Honeywell Information Handling Svcs Intuit Loblaw McKesson Medtronic Microsoft

Motorola National Australia Bank Nationwide Insurance Norwegian Cruise Lines Novartis PC Connection Polycom Roche Labs Scholastic Stryker SunTrust Sutter Health W.W. Grainger Wal-Mart Westpac Weyerhaeuser Woolworths


Prologue

Data governance (DG) is vital to success of MDM projects – both initially & ongoing

During 2011-12, Global 5000 enterprises will increasingly mandate that “no MDM program be funded without the pre-requisite DG framework”

“Proactive DG” that includes entire master data lifecycle will increasingly be mandated as a core phase zero or phase one deliverable of most large-scale MDM projects

Given substantial investment required for MDM programs, co-dependence/synergy of DG & MDM must be given close scrutiny – not only to contain costs, but also to insure success


MDM Working Definitions

Master Data Management (MDM)

Authoritative, reliable foundation for data used across many applications & constituencies with goal to provide single view of truth

no matter where it lies.

CDI is mandatory first step for most organizations on journey to MDM

Product Information Mgmt (PIM)

Processes & technologies for recognizing PRODUCT,

SUPPLIER, & PRICING master data

Customer Data Integration (CDI)

Processes & technologies for recognizing a customer & its

relationships at any touch-point while aggregating, managing &

harmonizing accurate, up-to-date knowledge about that customer to

deliver it ‘just in time’ in an actionable form to touch-points.


MDM Working Definitions - continued

Multi-Entity Master Data Management (MDM)

An MDM solution to concurrently manage multiple, diverse master data domains

(customers, accounts, products) across intra- and extra-enterprise business processes

Master Reference Data Management (RDM)

Non-volatile reference data shared across the enterprise in context within applications (&

possibly within the industry via “exchanges”); examples: units of measure; currency rates;

calendars; other look-up tables

Large enterprises assume MDM = multi-entity MDM when evaluating software; RDM remains a key variable among the

vendors as few vendors are enabled (yet) © 2012 The MDM Institute www.the-MDM-Institute.com

MDM Working Sub-Definitions (“Use” Cases)

For most G5000 enterprises, multiple (often all) variants will be needed to make MDM initiatives successful

Analytical MDM

Definition, creation, & analysis of master data to measure the

business; examples: counterparty risk mgmt apps &

financial reporting consolidation

Collaborative MDM

Definition, creation, & synchronization of master

reference data via workflow & check-in / check-out services;

examples: PIM data hubs & AML

Operational MDM

Definition, creation, & synchronization of master data

required for transactional systems & delivered via SOA to

run the business; examples: near R/T customer hubs &

securities masters


Data Governance Working Definitions

Data Governance (DG)

Formal orchestration of people, process, & technology to enable an organization to leverage data as an

enterprise asset across different lines-of-business and IT systems

Passive Data Governance

Data steward consoles & other reactive data management

capabilities focused on after-the-fact data compliance; often batch-

like & not integrated with MDM

Master Data Governance aligns IT-centric viewpoints & business-centric viewpoints regarding data quality; MDM & MDG are becoming

natural way of aligning data w ith business processes

Proactive Data Governance

Metrics-driven, crowd-sourced capability for business users & IT

to actively control their shared data across different lines of

business & IT systems

Active Data Governance

Metrics-enabled, upstream data policy enablement; replaces

manual data admin processes with role-based, real-time SME

empowerment


Prologue

Through 2011-12, major SIs & boutique consultancies will focus on productizing DG frameworks while MDM software providers struggle to link governance process with process hub technologies

Concurrently, Global 5000 size enterprises will struggle to evolve enterprise-strength DG both in cost-effective & practical ways that shift from “passive” to “active” to “proactive” DG modes

DG assistance from SIs will remain especially vital to success of MDM programs during 2011-12 as organizations deal with a shortage of DG experience, tools & tool expertise


Prologue

Understanding scope, diversity & limitations of current Data Governance solution offerings is tremendously challenging – even more so, given fast pace of M&A & complexities of integrating such diverse software portfolios

Nonetheless, business & IT leadership chartered with defining & executing MDM programs need help to understand & navigate through numerous Data Governance options

“Go governance, go early” is rallying cry of savvy enterprise &solution architects chartered with setting scope & direction of their enterprise’s data integration programs


Why Data Governance

Overly complex IT infrastructure Silo-driven, application area-

centric solutions Slow-to-market delivery of new

or enhanced application solutions

Inconsistent definitions of key corporate data assets such as customer, supplier, & pricing masters

Poor data accuracy within & across business areas

LOB-focused data with inefficient or nonexistent ability to leverage information assets across LOBs

Redundant IT initiatives to re-solve data accuracy problems for each individual LOB

Uniform communications with customers, suppliers, & channels due to veracity & accuracy of key master data

Common understanding of business policies & processes across LOBs & with business partners/channels

Rapid cross-LOB implementation of new apps requiring shared access to master data

Singular definition & location of master data & related policies to enable transparency & auditability essential to regulatory compliance

Continuous DQ improvement as DQ processes are embedded upstream rather than downstream

Increased synergy for cross-sell & upsell

Pre-Governance Post-Governance


Master Data Governance Challenges

Break down functional & organizational stovepipes Integrate processes across the enterprise – including

corporate technology, all LOBs, functional areas & geographic regions

Engage all levels of management & adjudicate between centralized vs. decentralized data stewardship

Evolve key stakeholders from “data ownership” to “data stewardship”

Overcome lack of process integration in current “data governance” offerings

Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing

opportunity to take more strategic view of data governance


Rosetta Stone of DG Maturity Models

Stage Name

I Anarchy

II Feudalism

III Monarchy

IV Federalism

The MDM Institute

Common inquiry is “How do I get from Level 2 to Level 4 or 5?”

IBM Data Governance Council

DataFlux/SAS Gartner Research

Stage Name

I Initial II Managed III Defined IV Quantitatively Managed V Optimizing

Stage Name

1 Undisciplined

2 Reactive

3 Proactive

4 Governed

Stage Name

0 Unaware

1 Aware

2 Reactive

3 Proactive

4 Managed

5 Effective


MDM Institute’s Data Governance Maturity Model

“Anarchy” (basic) – Application-centric approach; meets business needs only on project-specific basis

“Feudalism” (foundational) – IT policy-driven standardization on technology & methods; common usage of tools & procedures across projects

“Monarchy” (advanced) – business-driven, rationalized data with data & metadata actively shared in production across sources

“Federalism” (distinctive) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle

Fin Svc providers are leading the way – in spend & discipline; technology can only achieve so much as organization must be

prepared to continually adapt & treat data as enterprise asset above project level; data needs to be an asset not a liability.


Working Definitions

Data Governance (DG)

Formal orchestration of people, process, & technology to enable an organization to leverage data as an

enterprise asset across different lines-of-business and IT systems

Passive Data Governance

Data steward consoles & other reactive data management

capabilities focused on after-the-fact data compliance; often batch-

like & not integrated with MDM

DG aligns IT-centric viewpoints & business-centric viewpoints regarding data quality; MDM & DG are becoming

natural way of aligning data w ith business processes

Proactive Data Governance

Metrics-driven, crowd-sourced capability for business users & IT

to actively control their shared data across different lines of

business & IT systems

Active Data Governance

Metrics-enabled, upstream data policy enablement; replaces

manual data admin processes with role-based, real-time SME

empowerment


“Data Governance for MDM” Market – Chaos or Confusion?

Market-leading MDM vendors will come to market in late 2011-12 with proactive DG frameworks to take back the lucrative DG business currently defaulting to SIs

Corollary is few MDM vendors will be able to market their solutions without such proactive DG capability – one that embeds a workflow engine with metadata support for both structured & unstructured info

Where will that leave the SIs – as partners, competitors or both?

Given lack of DG solutions from MDM platform vendors, SIs have had market largely to themselves; 2011 operative word = “coop-etition”


Proactive Data Governance Framework “Top 10” Technical Evaluation Criteria

1. Methodology 2. Data exploration/profiling 3. Model management 4. Rules/policy management 5. Decision rights management 6. MDM hub integration 7. Enterprise application

integration 8. Multi-level, role-based security 9. Integrated metrics 10.E2E data lifecycle support

Understanding scope, diversity & limitations

of currently-marketed DG offerings is tremendously challenging


http://www.mattwardman.com/blog/wp-content/uploads/20070411-old-scrummage-2.jpg

Master Data Governance – Recent Market Offerings

Collibra (Consultancies/SaaS) –

BackOffice Associates, Blackwatch Data, Cognizant, Gaine Solutions, Utopia, et al

DataFlux Data Foundations Kalido Data Governance

Director IBM Blue Print Director IBM (Initiate Systems)

Workbench/Data Trust

Informatica Data Director (IDD for Siperian)

Microsoft MDS Model Console

MIKE 2.0 Oracle Data Governance

Framework/Manager Orchestra Networks Platon SAP Master Data

Governance Teradata MDM Studio

“Babushka effect” as app vendors embed MDM (& MDM embeds DG), how does one coordinate “governance of

multiple/diverse DG systems? semantic data integration & business semantics management


Overall Critique of Existing DG Capabilities

Mismatch of applying project-oriented methodology rather than asset-focused methodologies

Methodologies missing the asset aspect of data … cost, decaying value, ROI for cleansing data, etc.

Frameworks not addressing “community” aspect of shared asset development – e.g. wikis for global corporate business vocabulary, etc.

Current DG solutions do not provide systemic rigor nor E2E lifecycle support

Systemic rigor & organizational maturity are equally , if not more, important than software … but the market lags

demand for DG frameworks with consultancies filling void via custom-built DG workflows


MDM Institute MarketPulse™ Survey Overview

Objectives Determine top business justifications for DG programs Understand key technology challenges (failings) of current

DG offerings Provide evaluation framework for both current & soon-to-

market DG offerings Methodology = online surveys & interviews

Pre-qualified, pre-existing relationship C-level or next level below

Survey pool of 150+ Global 5000 size enterprises Oracle Data Governance Advisory Board IBM Data Governance Council MDM Institute Advisory Council

Take a survey & possibly w in 2 free MDM & Data Governance Summit tickets – London, NYC, SF, Singapore, Sydney , Tokyo

http:/ / tinyurl.com/ MDM-reality © 2012 The MDM Institute www.the-MDM-Institute.com

http://tinyurl.com/MDM-reality

Master Data Governance Bottom Line

Acknowledge that manual data governance is error prone, time-consuming & unable to ensure compliance or measure business impact

Don’t settle for “passive” / downstream data governance

Realize that “data steward consoles” are more than demo-ware for headless apps … but substantially less than integrated/proactive master data governance

Demand “proactive” / upstream data governance Don’t expect “data governance maturity assessments”

to provide road map out of anarchy Prepare to spend £250K- £ 500K for initial MDG solution MDM & MDG are codependent/interdependent … invest

upfront in data governance for MDM sustainability & ROI … “go early, go governance”


Prescient MDM Alerts

Oracle Data Hubs: “The Emperor Has No Clothes?” Subtitle: Considering Oracle’s Data Hubs? Then Consider This …

SAP Master Data Management “Extreme Make-Over” Subtitle: SAP MDM went under the architect’s knife – Is the

outcome attractive to Global 2000 enterprises?

IBM/DWL Customer Center: Strategy-Driven vs. Urgency-Driven M&A Subtitle: Who’s Minding the Metadata? (Does the “new” IBM

software business have a coherent strategy to integrate its treasure of acquisitions?)

Siebel CDI Assets to Help Oracle Battle IBM & SAP Subtitle: How Many More Software Firms Must Oracle Buy to Catch

Up with SAP?

“Independent, Authoritative, & Relevant” © 2012 The MDM Institute www.the-MDM-Institute.com

“The World Is Flat”

Data structures & business processes must be supremely flexible

Underlying IT infrastructure must enable new business models

Policies/process flows must integrate in ways previously problematic

EAI = enterprise application integration ETL = extract-transform-load MDM = master data management SOA = service-oriented architecture

Value of Integration Exceeds Value of Build/Buy

Val

ue

ETL EAI MDM

Monolithic Apps

Client/Server Apps

SOA/ Web Services

Time

Value of Integrating Applications

Value of Building

Applications

Global competition mandates a wide variety of new business styles


MDM Business Drivers 2012-13

Just-in-time 21st century business models mandate both agility & integration across enterprise to Provide higher profitability Reduce operational costs Increase accuracy of regulatory

compliance Emergence of “demand chains”

mandates synergetic approach across both “party” & “product” master systems via common business services

M&A as a business strategy

Contemporary business strategies mandate flexible infrastructure –propelling MDM into “Top 10” initiative

Agile Enterprise

Self-Directed Service

M&A “Ready”

Rapid NPI

Integrated Risk

Mgmt

Co-opetition

“Demand” Chains


MDM Technical Challenges 2012-13

High RAS (reliability, availability, scalability) infrastructure

Flexibility in mash-up of extreme data velocity & variety

Inline analytical MDM processes supporting operational MDM

Customer:product conundrum Lack of standards – BPM, rules

engines, metadata Adherence to evolving security &

privacy requirements Lifecycle approach to data assets

Market is hyper dynamic in available solutions; requirements vary by industry, scale & business complexity

Historical MDM Solutions

Synchronization

Enterprise Application Integration (EAI)

Extract Transform

Load (ETL)

Replication

Aggregation

Master Customer

Files/DBs

MDM


‘Top 5’ Business Drivers for MDM Initiatives

1. Synergies for cross-sell & up-sell

2. Compliance & regulatory reporting

3. “Once & done” economies & customer satisfaction

4. Legacy system integration & augmentation

5. Economies of scale for M&A


MDM Provides Synergies for Cross-Sell & Up-Sell

Accelerates revenue growth via more intelligent cross-sell & up-sell enabled by complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities

Increases understanding of large customers by grouping all buying organizations into corporate (B2B) or household (B2C) hierarchy

Enables integrated customer analytics – i.e., profitability analysis, & lifetime value

Enables “co-opetition” & electronic storefront models – e.g., B2B, B2C, & B2B2C

QUICK WIN = increase wallet share & provide innovative/ sticky bundles


MDM Enables Compliance & Regulatory Reporting

Centrally manages privacy preferences for consistent rules of visibility & entitlements

Enhances “evergreening” of customer data accuracy – e.g., continuous customer data improvement by providing self-directed customer care portals … which in turn integrate customer info across business units

Enables regulatory reporting compliance– i.e., large customers’ material events (SOX, BASEL II, SOLVENCY II)

Facilitates compliance with AML, OFAC, USA PATRIOT, KYC, KYS, et al

QUICK WIN = avoid regulatory fines & negative public relations/ publicity


MDM Significantly Increases “Once & Done” Economies & Customer Satisfaction

Drives fundamental operational savings & efficiencies – e.g., “once & done” enterprise-wide services for key processes –e.g., account changes (name, address)

Protects brand integrity by increasing customer satisfaction due to more focused marketing & service campaigns – e.g., “blended agent” capability to provide customer service across multiple touchpoints/channels

Actualizes “consistent customer treatment” by blending channels to deliver common customer interactions / experiences across all touchpoints

Drives costs of “dirty data” out of the info supply chain Enables self-directed customer experience for sales &

service QUICK WIN = reduced direct marketing costs (postage, outbound

telesales) & increase competitive quality-of-service © 2012 The MDM Institute www.the-MDM-Institute.com

MDM Provides Increased ROI by “Leveraging Existing Infrastructure”

Enables integration of new & old channels – e.g., collections, fraud, contact centers with kiosk, ATM, IVR and online self-service

Minimizes architectural complexity to simplify application solution design, deployment, & maintenance

Reduces number of interfaces between applications & increasing reuse factor to save substantial integration costs

Improves infrastructure flexibility & control to enhance overall system performance

Accelerates ROI of enterprise CRM solutions

QUICK WIN = increased sales force & call center productivity


MDM Provides Economies of Scale for M&A

Facilitates quick scales of economy in mergers & acquisitions (M&A) – e.g., shortening customer, desktop, & billing integration timeframes while providing scalability to support rapid assimilation of new block of customers

Accelerates revenue growth via more intelligent cross-sell & up-sell enabled by complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities

QUICK WIN = posit enterprise as M&A-ready & provide consolidation of customers , suppliers & products for economies of scale


Quick Wins Can Become Long Term Losses

Random acts of MDM create silos of master data Pervasive MDM will be the norm next 3+ years Master data governance requires commitment

MDM & master data governance interdependent … invest upfront in data governance for MDM sustainability & ROI

“Go Governance, Go Early” © 2012 The MDM Institute www.the-MDM-Institute.com

Master Data Governance Strategic Planning Assumption

Through 2012, most enterprises will struggle with enterprise MDG while they initially focus on customer, vendor, or product; integrated MDG that includes E2E data lifecycle will be mandated as phase 1 deliverable

During 2012-13, major SIs & MDM boutiques will focus on productizing MDG frameworks while MDM software providers struggle to link governance process with process hub technologies; concurrently enterprises will struggle to evolve enterprise MDG in cost-effective & practical ways from “passive” to “active” MDG modes

By 2014-15, vendor MDM solutions will finally move from “passive-aggressive MDG” mode to “proactive MDG”

MDM MILESTONE © 2012 The MDM Institute www.The-MDM-Institute.com

MDM is moving beyond simple stewardship to convergence of task management, workflow, policy

management & enforcement

Budgets/Skills Strategic Planning Assumption

During 2012, the number of IT professionals trained in a specific MDM solution will increase 200% Y2Y, however, IT orgs &consultancies will struggle to recruit & retain MDM veterans who have actually successfully had a major role in an MDM deployment

Through 2013-14, enterprises will continue to spend to 3X to 4X in “plan” & “build” services vs. MDM software

By 2014-15, supply of MDM-experienced consultants will catch up with demand & SIs will scramble to find new opptys for their expensively recruited & trained talent

MDM MILESTONE

Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to contain costs, but also

to insure success of this vital infrastructure investment


Why Data Governance? Why Now?

Businesses have been governing data for 20+ years, however, only a rare few are doing it well today

Many companies historically assigned DG to a data management group whose job is to integrate & manage data

Contemporary DG challenges are far greater Break down functional stovepipes Integrate processes across the enterprise –

including corporate technology, all LOBs, functional areas & geographic regions

Engage all levels of management

Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing

the opportunity to take a more strategic view of data governance © 2012 The MDM Institute www.the-MDM-Institute.com

Why Data Governance? Why Now? – cont’d

Once you know what data is worth, you need to calculate probability for risk in a business processes

When you understand value of data & probability of risk, you can evaluate how much to spend to protect it, manage it, and invest in adequate controls

This is basis of modern underwriting – assets, risk, controls Doing this systemically requires a combination of

organizational structures, business processes, & technology – a “data governance blueprint” for: Data quality Information integration Business intelligence

IT mgmt must work w ith business leadership to design & refine “future state” business processes associated w ith DG commitments


Data Governance Juggernaut

Data Customer Master Warehouse Data Integration Data Management (Batch) (On-Line) (Just-in-Time)

Data Governance

Must Become “De Facto”

Data Governance Will Become “De Jure”

Data Governance Becoming “De Rigueur”

Enterprise risk management is emerging as a major issue w ithin most financial institutions & is VERY data-centric


Data Governance Maturity Level

Overall, FSPs are leading the way for non-FSPs

BASIC (“anarchy”) – App-centric approach; meets business needs only on project-specific basis

FOUNDATIONAL (“IT feudalism”) – Policy-driven standardization on technology & methods; common usage of tools & procedures across projects

ADVANCED (“business monarchy”) – Rationalized data with data & metadata actively shared in production across sources

DISTINCTIVE (“federalism”) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle

Source: February 2006 CDI Institute survey of 50 Global 5000 IT organizations

0%

10%

20%

30%

40%

50%

Basic Foundational Advanced Distinctive

FSP

Non-FSP


Pervasive MDM Strategic Planning Assumption

During 2012, application providers will deploy en masse, the next generation of MDM-innate (as opposed to MDM-aware) applications; concurrently SaaS vendors will struggle to provide integrated/native MDM.

Through 2012-13, mega vendors Microsoft and Oracle will effectively give away departmental MDM –via MSFT MDS and Oracle DRM respectively.

By 2013, SaaS providers will have finessed this issue via strategic partnerships and investments in MDM. By 2014, market for MDM-enabled applications will exceed that for MDM software.

MDM MILESTONE

MDM-innate (e.g. Fusion MDM) will overwhelm MDM-enabled applications


Universal MDM Strategic Planning Assumption

Through 2012, corporate MDM platform evaluation teams will assume (& insist) that all MDM software platforms targeted for enterprise-level deployment or major role in mission-critical systems fully support both PARTY & THING entity types

During 2013-14, large enterprises will also mandate that REFERENCE data be part of MDM platform native entity types

By 2015, all operational CDI hub vendors will add PIM light capabilities, & all PIM vendors will add B2C PARTY entity

MDM MILESTONE

Most PIM are multi-domain, not just PIM … always include SUPPLIER or CUSTOMER; CDI always has entitlements


Reference Data Management (RDM) Strategic Planning Assumption

Through 2012-13, reference data will emerge as a key entry point for enterprises & in turn unduly influence their choice of MDM for Customer, Product & other domains

Concurrently, MDM vendors will rush to market RDM solutions to apply MDM approach for centralized governance, stewardship & control

WIT, Kingland & other SIs will move via OEMing of INFA & IBM MDM into "securities master" market under pricing umbrella of GoldenSource

By 2015, pervasive, low cost RDM will be commoditized via the efforts of MSFT & ORCL

MDM MILESTONE

Managing “simple” reference data will prove to be a key sales entry point for MDM vendors


PARTY:PRODUCT Conundrum

Different master entity types may require different MDM brands or architectures Product data shared across supply

chain Employee data captive within HR apps Customer data never leaves home

(outside the firewalls) Customer policy/ process hubs

ultimately require pricing masters, product masters, supplier masters, & so on …

Pricing Authorized Products

Bundles Cross-Reference

Hierarchies Geographical Variants

Regional Variants

PARTY

PRODUCT

SOA mandates “Party” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products


Most Common MDM Topologies

Composite/Hybrid is majority architectural preference; Registry/Virtual 2nd choice

IMPLEMENTATION STYLE DESCRIPTION External (Service Provider) • Database marketing providers

• Data service providers • Service bureaus

Persistent (Database) • Master customer information file/database • Operational data store/active data warehouse • Relational DBMS + Extract-Transform-Load

(ETL) + Data Quality (DQ) Registry (Virtual) • Metadata layer + distributed query (enterprise

information integration or EII) • Enterprise application integration (EAI) • Portal

Composite (Hybrid) • Ability to fine-tune performance & availability by altering amount of master data persisted

• XML, web services, service-oriented architecture (SOA)

“Chernobyl” • Encapsulate legacy applications


Why Organizational Hierarchy Management ?

Based on recognition of need to Grow beyond mature North American & Western European market

Support global customer service

G5000 businesses are now recognizing opportunity to take more strategic view of “global account management”

Market demand for “customer hierarchy mgmt” – esp. B2B – capability to augment mega vendor’s data hub strategies (IBM, ORCL, SAP) will greatly increase during 2012-13

MDM solutions which incorporate such capabilities will be key factor in successful deployment of globally-enabled MDM solutions

3rd party hierarchy data inadequate or non-existent for certain georaphies – e.g., Equifax/Austin-Tetra, D&B, …


Organizational Hierarchy Management

Key features Ability to model complex relationships – legal, organizational &

cultural Ability to handle overlapping hierarchies – multi-party model Visual hierarchy management tool Integration with data governance processes

Short list IBM/Initiate Systems; Informatica (Siperian); MSFT (Stratature);

(Oracle DRM; Oracle-Siebel; SAP Master Data Services (2H2013)

Use cases Global account management Risk management Basel II, USA PATRIOT, AML compliance M&A


Why “Multi-Entity MDM”? Why Now?

Future direction is to grow all reference masters into operational masters

Future MDM landscape Multiple data domains Multiple relationships Multiple usage styles –

analytical, operational & collaborative

Linkage between operational data domains using collaborative or analytical MDM

Enterprise MDM = multi-entity MDM – such epiphany

enables the enterprise to avoid “random acts of MDM”

Pricing Policy Hub Pricing Reference Master

CDI Hub Location Master

Customer Registry PIM Data Hub

Evolutionary Multi-Entity MDM

Entity-Specific MDM Data Marts

Myopic

Strategic


Solidified Requirements for 3rd Generation MDM Solutions

SOA/shared services architecture with evolution to “process hubs”

Sophisticated hierarchy management

High-performance identity management

Data governance-ready framework

Persisted, registry & hybrid architecture flexibility

MASTER DATA

SEARCH

MASTER DATA

MODELING

MASTER DATA

APPLICATIONS

MDM MASTER

DATA PREPAR-ATION

MASTER DATA

GOVERNANCE

MASTER DATA

MOVEMENT

MDM has morphed from “early adopter IT project” to “Global 5000 business strategy”; phase 2 MDM

deployments are already fusing party & product domains © 2012 The MDM Institute www.the-MDM-Institute.com

Evolving Requirements for 4th Generation MDM Solutions

Multi-entity MDM + reference data

Multiple master versions of customer – legal/geo boundaries effect

Process/policy hub architecture

Unstructured information support

Integrated proactive MDG Enterprise search

MASTER DATA

SEARCH

MASTER DATA

MODELING

MASTER DATA

APPLICATIONS

MDM MASTER

DATA PREPAR-ATION

MASTER DATA

GOVERNANCE

MASTER DATA

MOVEMENT

G5000 enterprises’ business strategies mandate long term, strategic “multi-entity MDM” – in turn enabled by policy-

driven MDG © 2012 The MDM Institute www.the-MDM-Institute.com

Business Value of Multi-Entity MDM

With 4th generation MDM platform, an enterprise will be better able to Identify & provide differentiated service to its most

valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers

Introduce new products & product bundles more quickly across more channels to reduce the cost of New Product Introduction (NPI)

Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes

Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years


Best Practices for MDM & Data Governance

• Customer data integration

• Product information management

• Multi-domain/entity

• Reference data management

• Data governance

MDM 2.0: convergence of MDM & data governance


CASE STUDIES Approach

Use cases Operational /

transactional Analytical Collaborative

Horizontal applications Customer Financial Location M&A Pricing Product Supplier

Vertical industries Communications Financial services Government Healthcare High tech mfg Hospitality Pharmaceutical

Architectural approach Federated query Registry Transactional Hub Hybrid hub

Master data is the heart of applications & architecture © 2012 The MDM Institute www.the-MDM-Institute.com

CDI Can’t Be Standard Solution – B2B vs. B2C

Large volumes Life cycle – acquire, maintain, grow,

retire

Household hierarchies Demographic data from trusted

sources *plus* social networks

Lesser volumes Complexity of contacts Corporate entity hierarchies Firmographic data from

trusted sources

B2C Consumer “Party” B2B Business “Party”

CDI or “party master” also encompasses: party of interest (“bad guys”), citizens, taxpayers, immigrants,

patients, members, physicians, etc. © 2012 The MDM Institute www.the-MDM-Institute.com

Banking MDM Requirements

Facilitate growth-by-M&A Comply with privacy mandates Improve compliance – e.g., AML, BXA,

CIP 326, OFAC, SOX, …

Increase sales productivity by modeling corporate hierarchies & structures of B2B customers

Improve real-time portfolio view for both wealth management & internal risk management

Increase customer satisfaction (retention/upsell) by streamlining routine customer maintenance

Reduce IT infrastructure costs

Increasingly complex business models (B2B2C) as “electronic storefronts”

Demand for “near real-time” data lineage

Rationalizing complex & dynamic business & individual hierarchies

Hacker-proof customer data protection

High-RAS (reliability, availability, scalability) nature of mission-critical infrastructure

Customer view must prevail over product view as higher margin customers dictate common set of products & services via rapid

adoption of MDM

Business Drivers Technology Challenges

BXA - Bureau of Export Administration CIP 326 – Customer ID Program of USA PATRIOT Act

OFAC - Office of Foreign Assets Control


Retail Banking – Business Objectives

Provide single view of customer Across all channels Across all products

Reduce operational costs Improve cross-selling Improve net credit loss Increase marketing lift Manage privacy centrally Provide operational view for Basel II/III compliance Provide improved customer service Streamline account opening process


Retail Banking – Technical Requirements

Proven performance & scalability Service-oriented architecture Ability to handle complex hierarchies Ability to integrate to existing infrastructure Open architecture – J2EE compliant Proven functionality for services layer Existing Customer Information File (CIF) co-existence

& eventual replacement strategy


Retail Banking – Key Drivers

Improve cross-selling & campaign lift “Operationalize” marketing data

Leverage service interactions into sales opptys by following up on current campaigns

Regulatory compliance Providing operational view of customer into existing data

warehouse for Basel II/III compliance

Ability to store privacy preferences at a true enterprise level


Retail Banking – Business Outcomes

Ability to act on customer knowledge Improved customer matching for customers with

multiple risk-bearing products & improved benefits obtained from risk management

Risk scoring improvements – better collections decisions

Able to reduce costs based on reducing maintenance costs of legacy CIFs

Improved accuracy & completeness of the customer data within MDM hub vs. existing CIFs (96% vs. 85%)

Administrative cost reduction


PIM Reqmnts Differ by Use Case/Industry

Time to market – new product introduction (NPI), product lifecycle management (PLM)

Physical hierarchies – bill-of-materials

Compliance – ePedigree, RFID, eCycle, origination certification (conflict / environmental), …

Exchanges / communities of interest

Time to market – new product introduction (NPI), product lifecycle management (PLM)

Virtual hierarchies Compliance – AML watch lists, …

Trans-border data sharing issues

Manufacturing Services (Banking, Government)

Product Information Management (PIM) or “thing master” is used by all supply chain participants & varies in volume/ complex ity;

globalized commerce, competitive pressures & complex trading relationships make product data quality key


TeleCommunications Services Provider Requirements

Consolidation (M&A) Deregulation/re-regulation Increasingly "portable"

customers Self-directed service to drive

down customer care costs Real-time marketing &

integrated campaign management using predictive analytics

Fraud detection Bill presentation

Legacy of 50-100 product catalogs

Ability to blend channels Complex supply chains Onerous regulatory mandates Extreme scalability in call

centers, provisioning, etc. Flood of data due to ‘data

services’ “Plan anywhere, build

anywhere” investment strategies in new technologies that enable quicker new product introduction (NPI) at lower cost without sacrificing quality Telco evolution will be radical as intense competition in wireless, LD,

Internet, & local service commoditizes products & slashes profits – not to mention VoIP

Business Drivers Technology Challenges


Business Value of Multi-Entity MDM

With 4th generation MDM platform, an enterprise will be better able to Identify & provide differentiated service to its most

valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers

Introduce new products & product bundles more quickly across more channels to reduce the cost of New Product Introduction (NPI)

Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes

Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years


CUSTOMER:PRODUCT Conundrum

Just-in-time, 21st century business models mandate both agility & integration across enterprise to provide higher profitability, reduce operations costs & increase accuracy of regulatory compliance

Contemporary supply chains mandate synergetic approach across both customer & product master systems via common business services

Key business drivers Increased agility to deliver new product

bundles/offers Simplified PLM by automating key business

policies to provide effective oversight & compliance

Reduced revenue leakage via consistent enforcement of offer policies re: provisioning & billing

Pricing Authorized Products

Bundles Cross-Reference

Hierarchies Geographical Variants

Regional Variants

CUSTOMER

PRODUCT

SOA mandates “Customer” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products


Why “Multi-Entity MDM”? Why Now?

Future direction is to grow all reference masters into operational masters

Future MDM landscape Multiple data domains Multiple relationships

including flex hierarchies Multiple usage styles –

analytical, operational & collaborative

Linkage between operational data domains using collaborative or analytical MDM

Enterprise MDM = multi-entity MDM – such epiphany enables the enterprise to avoid “random acts of MDM”

Pricing Policy Hub Pricing Reference Master

CDI Hub Location Master

Customer Registry PIM Data Hub

Evolutionary Multi-Entity MDM

Entity-Specific MDM Data Marts

Myopic

Strategic


CASE STUDIES Approach

Use cases Operational /

transactional Analytical Collaborative

Horizontal applications Customer Financial Location Mergers & acquisitions

(M&A) Pricing Product Supplier

Vertical industries Communications Financial services Government Healthcare High tech mfg Hospitality Pharmaceutical

Architectural approach Federated query Registry Transactional Hub Hybrid hub

Master data is the heart of applications & architecture © 2012 The MDM Institute www.The-MDM-Institute.com

CDI Case Study: Major North American Multi-Line Bank

Near term = cross-selling across product lines

Longer term = customer service & retention

Huge diversity of financial product lines

Scalability of complex business model 10M+ retail consumer accounts 3K+ bank branches; 1K+ mortgage centers 25K+ internal users

Custom-built MDM not keeping pace with market evolution

Delivered workflow-based employee portal to integrate SFA, DW, BI, customer profitability, & loan pricing/approval applications

Built on existing portal & message bus by incorporating new MDM technologies in R/T customer identification & data reconciliation plus cross-application process integration

Coordinated multi-channel campaign management, channel optimization, & advanced analytics Increased cross-sell revenue by US$700M across sales,

marketing, & portfolio mgmt — reducing underperforming assets by US$12B

Business Issues Solution


CDI & Data Governance Case Study: Major Govn’t Agency – Borough of Brent

Tracking & providing government services to very diverse & relatively transient urban population

Major service issues regarding Mistakes & fraud, i.e., £55M central

government state benefits paid to dead people

Customer satisfaction, i.e., a family had 44 contacts with Central Government over death of a relative which lasted 180 days

85% of government services are via local councils, i.e., 800+ services to residents & businesses

Core cross-council team of became “data stewards”

Newly created Senior Mgmt Business Board (non-IT) owns & manages IBM MDM Server Std Edition customer hub (Initiate)

Council Job Descriptions to include DQ & information governance as core skills

Data Stewards targeting duplicates & collection of phone number/emails

Link to CRM = Ability to provide cross -council service Provide citizen-centric services across rapidly permuting

citizenry via empowering of staff to having all info needed to do job (also key financial savings)



© 2012 The MDM Institute The-MDM-Institute.com

PIM / NPI Case Study: Regional Telco – Qwest (formerly Mountain Bell)

Multiple systems per business function = excessive average call handling time

Bill explanation difficult & lengthy Product/promotion information

difficult to access Bundled quotes manually

calculated Bill charges mismatch quoted

charges Multiple product catalogs –

industry average = 50-100 catalogs

Product catalog-based PIM MDM Configurable business rules Managed workflow Selected “Buy” over “Build” of

extensions via IBM MDM4PIM Extensible data model Support for complex hierarchies Faster time to market Lowest total cost of ownership

Consolidation of analytics licenses, sharing of PIM tools across the enterprise

Reduce IT development costs through reuse of common components (SOA)

“Go live” 3X faster & 4X cheaper for “Buy vs. Build” (US$50M over 5 years); 3X as many promos for roughly same cost



Supply Chain Case Study: Global Telco – Vodafone/Verizon

VENDORS – No clear ownership of data; no single point of entry/ maintenance; no automation of Vodafone’s governance model; no workflow collaboration btw departments; complex, manual compliance

MATERIALS – Same issues as VENDORS & also no ability to process locally at ERP & RETAIL level within geographies; no end-to-end monitoring

Manual collaboration from negotiation through to purchasing (Supplier through to OpCo Buyer)

Implementation of a single core operating model across all markets (Core Business Model) & global shared services org

Leveraging Vodafone’s global scale & scope in Purchasing through establishment of a Vodafone Procurement Company (VPC)

Single governance process for management of SCM, Finance & HR master data via SAP MDM Establishment of Data Review Board Transformation from free text

purchasing to catalogues

Transformation across Supply Chain, Finance & HR via “rationalized” ERP solutions running new Core Business Model



Reference Data Management Case Study: Mega Financial Svcs Provider - DnB NOR ASA

Need to manage reference data provided by external standard bodies

Reference data changes managed manually

No clear ownership of reference data across the business

Reference data must be entered, updated & managed in multiple places, yielding duplication & introducing errors

Manage & consolidate Reference Data for data warehouse load

Manage MDM code tables & map MDM codes to legacy systems codes

Publish reference data (changes) to consuming systems

Provide governance, process, security, audit control around reference data mastering

Apply commercial software (IBM RDM Hub Asset) rather than build

RDM is major step in longer term transformation of the bank to move from silo-driven business &IT culture to become “ONE – Group”



Cloud-Enabled MDM Case Study: Global Manufacturer/Distributor - Onduline

Production factories in 8 countries, subsidiaries in 40 countries & product distribution in 100 countries

Need to support its growing &global brand

Decentralized business organization which relies on multiple ERP &BI applications

Need to evolve from a decentralized group of local companies to a global group with global brands & global presence

Business users worldwide now sharing unique & fully localized product master, with rich data governance features such as workflow, hierarchy management & version control

Proactive master data governance for business users across 40 countries & cultures

Better monitoring of sales, physical flows & performance per product & per customer

Focused on Data Governance via Orchestra Networks EBX, then data integration

Economics of MDM in the Cloud is price-competitive against traditional software -- subscription-based & predictable pricing



Cloud-Integrated MDM Case Study: PLM Software Company - PTC

Difficult to analyze & report on customer information across enterprise

Salesforce.com users did not have access to complete enterprise-wide customer or contact view

No ability for PTC to govern or steward their data centrally

Lack of alignment between customers & appropriate sales territories

Establish single view of customers across data sources & lines of business, including on premise & cloud applications Salesforce.com, D&B, Eloqua in the

cloud Siebel, Clarity, Oracle EBS on-

premis Leverage registry architecture

of IBM MDM Server Std Edition (Initiate Systems) with Cloud & on-premise app integration via Cast Iron

Single point of data quality &de-duplication

Create &maintain sales & legal hierarchies for CRM & BI

Registry architecture enabled on-going migration from Siebel CRM to SFDC while providing SCV & increased governance


Collaborative MDM Case Study: Largest Food/Drug Retailer in North America

Company strategy to move from product-centric to customer-centric enterprise

Wanted to decouple data from throughout the enterprise databases, especially from legacy mainframe, to gain single view of master data

IT & business decision makers shared combined vision for MDM strategy

Mandate to effectively & efficiently collaborate internally & externally

Need to improve customer experience between channels (website & store)

Business strategy evolving from M&A-driven to high-end profitability (lifestyle marketing)

Delivering workflow-based collaborative MDM via PIM master integration with B2C cinsumer

Migrating off legacy enterprise data warehouse as customer master

Applying enterprise analytics stack for loyalty card data mining

Results t.b.d.

Business Issues Technology Solution


Action Plan for 2011-12

Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes

Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade

Begin MDM projects focused on either customer-centricity or product/service optimization

Plan for multi-entity MDM juggernaut evolving from “early adopter” into “competitive business strategy”

Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains Plan now to realize economic value & competitive

differentiation via multi-entity MDM during next 2-5 years © 2012 The MDM Institute www.the-MDM-Institute.com

Run, Grow & Transform the Business

• MDM is a major IT initiative underway at large # of market-leading Global 5000 enterprises

• Most enterprises & solutions vendors are finding near-term success with single-faceted approach inherent with 3rd generation MDM solutions

• Myopically focusing solely on single data domain & usage style is detrimental to longer term business strategy of integrating supply, demand, & info chains across both intra- & extra-enterprise boundaries

• Coming to market during 2011-12 are 4th generation multi-entity MDM solutions which address requirement for multiple domains & styles as well as roles of consumers

• Master Data Governance (MDG) remains the “X” factor Without single view of X (customer/supplier/product) your

organization cannot be fully effective, efficient or manage risk © 2012 The MDM Institute www.the-MDM-Institute.com

Master Data Management Applications

Data, process, & policy hubs CDI data hubs: Amdocs; DataFlux; IBM WCC; Initiate Systems; Nimaya;

Oracle CDH; Oracle UCM; Purisma; Siperian; Teradata MDM; VisionWare PIM data hubs: Comergent Technologies; Extol; FullTilt Solutions; GXS;

Hybris; i2 MDM; IBM WCC (formerly Trigo); Liaison Technologies; Oracle PIM Data Hub; Riversand; SAP NetWeaver MDM; TIBCO CIM

Financial integration data hubs: Hyperion Solutions MDM; MetaVante Hub; Teradata Integrated Risk Mgmt

Life sciences data hubs: Cegedim; Dendrite Others, e.g. citizen data hubs, privacy preference management hubs

Enterprise information management (EIM) frameworks Above All (Composite Application Platform); Attunity; BusinessObjects (Data

Integrator XI); Composite; Cordys; Data Foundations (OneData); DataLever; Denodo; Extraprise i2i Platform; Group/1 CDI Suite; Hewlett-Packard ZLE; Kalido; ObjectRiver MDM; Red Hat/MetaMatrix; TIBCO (Collaborative Information Manager)

Master reference data hubs AML reference masters ; Counterparty reference masters; Pricing masters;

Security reference masters; Vendors: Cicada, Data Foundations; Fidelity Compliance Hub; GoldenSource; Human Inference Blacklist Watch; Oracle Universal Pricing Master, TIBCO CIM

Off-the-shelf apps & accelerator frameworks that employ various master data technologies to create & maintain an

integrated set of master data entities such as party (customer/supplier/vendor) & product


Master Data Modeling/Data Governance

Data models Vendors: ADRM; GoldenSource Data Model; IBM

Information Framework; Oracle Trading Community Architecture; Teradata LDMs; Universal Data Models

Metadata management Vendors: ASG Rochade; CA Platinum Repository; IBM

Business Reference Directory; Sypherlink Harvester Methodology

Vendors: Deloitte/Informatica; IBM Data Governance Method1, TIBCO Accelerated Value Framework (AVF)

The various software tools used to model both reference & operational master data; the methodologies & lifecycle

tools to manage enterprise master data as an asset


Master Data Preparation

Data profiling Vendors: Data Quality First; IBM WebSphere ProfileStage;

Informatica Data Explorer (formerly Evoke); Netrics Data cleansing

Vendors: Business Objects Data Integrator: Cleansing; Human Inference HIquality; IBM WebSphere Quality Stage (formerly Vality); Informatica Data Quality Workbench (formerly Similarity); Innovative Systems ; Pitney Bowes/Group 1; Platon Address Doctor; Silver Creek Systems DataLens System; Sypherlink Learning Lexicon; Harte-Hanks Trillium Software

Identity Resolution/Identity Matching/Entity Matching Vendors: Acxiom AbiliTec; Austin Tetra; Dun & Bradstreet;

Experian TruVue; Identity Systems; Microsoft-Stratature +EDM; Netrics; Nimaya IdentitySync; Purisma; Initiate Systems Identity Hub; Netrics; Silver Creek Systems DataLens System

The various software & managed service provider solutions which enhance the quality & enrich the content of master data entities such as a “unified customer view”

or “unified physician view” © 2012 The MDM Institute www.the-MDM-Institute.com

Master Data Movement

Business process management (BPM) & rules engines Vendors: IBM jLog/Ilog; Fair Isaac Blaze; Experio; Oracle/BEA

AquaLogic Business Service Integration platform (formerly Fuego); TIBCO Staffware Process Suite

Data federation/distributed query; enterprise application integration (EAI); enterprise information integration (EII); extract, transform, load (ETL); global data synchronization (GDS)

Vendors: Ab Initio; BusinessObjects Data Integrator; Composite Software; Cross Z Solutions; Data Mirror; Denodo; Exeros; GoldenGate Software; IBM WebSphere DataStage (formerly Prism); IBM WebSphere Information Integrator; Informatica PowerCenter; Information Builders; Initiate Systems Data Federation; Ipedo; MetaMatrix; Oracle/BEA AquaLogic; Oracle WarehouseBuilder/Sunopsis; Pervasive Data Junction; SAS Warehouse Studio; Software AG (Enterprise Information Integrator); Sun SeeBeyond ICAN Suite; Sybase Data Integration Suite; Sypherlink; TIBCO BusinessWorks (EAI), TIBCO DataExchange (ETL) , TIBCO CIM (GDS); webMethods

The various middleware technologies used to perform the amalgamation of master data via aggregation,

propagation, replication, & synchronization technologies


MASTER DATA SEARCH

Vendors: Attensity; ClearForest; BrightPlanet Deep Query Manager;

Convera Technologies RetrievalWare; Endeca (Information Access Platform); IBM WebSphere Information Integration Search (Venetica); Insightful Corp. InFact; Microsoft Business Data Catalogue; SAP/BOBJ Inxight Software SmartDiscovery Analysis Server

Exploratory search & search engines incorporating both structured & unstructured information for a variety of applications such as catalog management, deep web

search & enterprise search © 2012 The MDM Institute www.the-MDM-Institute.com

MDM Consultants & Integrators

Systems integrators Vendors: Accenture; Alliance Consulting; Atos Origin; Attevo;

BearingPoint; Capgemini; Cognizant; Deloitte; EMC BusinessEdge Solutions; Fujitsu (formerly Born, DMR); Global IDs ; HighPoint Solutions; HCL Technologies Limited; HP/EDS/Knightsbridge Solutions; IBM GBS; Inforte; Infosys; Kanbay; Logica; Patni; Perficient; Perot Systems; PwC; Satyam; Sierra Atlantic; Tata Consultancy Services; Unisys; Wipro,

Consultants: Vendors: Baseline Consulting; Conversion Services International;

Diamond Management & Technology Consultants; Hired Brains, Information Frameworks; Hub Span; Information Impact, Industrial Wisdom, Pendrock Consulting LLC; Raab & Associates, Two Crows

System integrators & consultancies specializing in specific industries (e.g., Telco), MDM products (e.g., IBM MDM), & MDM processes (e.g., data governance, ROI justification)


Bottom Line Planning Assumptions

Acknowledge no single vendor does it all “well” Party vs. product B2B vs. B2C vs. B2B2C Batch vs. real-time

Recognize that industry expertise matters Test drive matching & consulting expertise Invest in data governance & MDM architecture

for long-term sustainability & ROI

MDM is critical to proactively & consistently manage customer

data to untangle quagmire of complex systems – e.g., streamline processes, enhance QoS, & govern compliance


“Top 10” MDM Evaluation Criteria

1. Data model 2. Business services 3. Identity resolution 4. Data governance 5. Architecture 6. Data management 7. Infrastructure 8. Analytics 9. Developer productivity 10.Vendor integrity

Infrastructure fracas will escalate as mega app vendors rush to

dominate business services/processes & data models as high ground


#1 Criteria = Data Model

Data model to support complex roles & relationships Party (customer, supplier, employee) & product Reference – including price, location Demographic profile – e.g., name, address, phone number, marital

status, etc. Roles & relationships between parties – including B2B company

hierarchies & B2C householding Additional related entities – e.g., entitlements, prices, & privacy

preferences Data heritage, change history & survivorship

Industry-specific (vertical) extensions Ability to import industry standard or custom-built

data models – e.g., IBM IAA, IBM BDW, OASIS CIQ, Siebel CIF, Hogan CIS, Dendrite

Ability to support 3rd party hierarchy structures – e.g., D&B, Austin-Tetra

Vendor roadmap to “link” party & product domains

Depth & breadth of data model – plus ability to adapt statically & on-the-fly – provide a solid MDM foundation


#2 Criteria = Business Services

External workflow engine & web services transaction support – e.g., business process management (BPM)

Rules engine E2E support with operational applications with accelerators for

complex transactions – e.g., new account origination & order to cash Business semantic-driven horizontal customer processes – e.g.

add party, change address, retire customers “Best practice” templates for both horizontal &

vertical customer – e.g., related processes Compatibility with existing infrastructure investments – e.g.,

Tibco, MQ-Series, etc. Standards – e.g., OMG’s Model-Driven Architecture (MDA), WS-

Coordination, WS-Transaction, & BPEL Vendor roadmap to process/policy hub solution via SOA

Functionality & extensibility of business services are critical evaluation criteria for MDM solutions – longer term “process hubs” are the goal


#3 Criteria = Identity Resolution

Very high performance matching/aggregation/search Ability to generate or incorporate “universal” master keys or

global IDs Cross-reference management – e.g., 1:M support, enforcement of

cross-referencing Support for all identity types – e.g., individual, household,

organization Change detection & event mgmt – e.g., propagation

& validation, in-doubt resolution Support for privacy regulations – e.g., California SB-168 for

remediation of SSN off public documents E2E data mgmt processes to enforce data quality Enable regulatory & privacy mandates Non-obvious/intrusive entity resolution

Smart matching plus effective human intervention – & automated actions – yield better identity management


#4 Criteria = Data Governance

Process design capture tools Accelerators for people, process & technology integration – e.g.,

DG steering committees, process councils, & corporate/LOB data stewards

Tactical data steward consoles Integrated metrics

Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing the opportunity to

take a more strategic view of data governance © 2012 The MDM Institute www.the-MDM-Institute.com

#5 Criteria = Architecture

Multi-modality architectures Virtual/registry Persistence Confederation

Multi-modal use cases Analytical MDM Operational MDM Collaborative MDM

Multi-modal security Profile access control Integration with security of DB, CRM & ERP Role-based user rights mgmt

Given the generational evolution of MDM styles, it is vital to select a MDM solution specifically tuned

for a given set of long term MDM requirements


#6 Criteria = Data Management

Consolidation & survivorship rules – e.g., intelligent merge/unmerge Application- & role-level authorization Data cleansing

Address cleansing & standardization Pre-built integration to leading DQ tools Closed loop-DQ Data profiling

Central enforcement & tracking of DQ Integration with Web-enabled aggregator data Complex, long running transaction Support for multiple master data types – e.g., reference,

transactions Comprehensive set of customer attributes for complete profile History & audit trails

Goal is to create end-to-end data mgmt processes that may be invoked by other major customer facing subsystems in addition to CRM package


#7 Criteria = Infrastructure

Scalability – e.g., in-memory or cache DBs; just-in-time aggregation Manageability - e.g., system management & monitoring tools Accessibility – e.g., ability to service wide-range of performance levels Availability – e.g., resilience to various failure situations such as

hardware & network outages; continuous data maintenance/ synchronization

Rigorous multi-model support for all integration modes Real-time

Tightly-coupled – e.g., COM, Java, CORBA) Loosely-coupled (IBM MQ Series, XML/HTTP, integration servers)

Near real-time Loosely-coupled (IBM MQ AMI, XML/HTTP, integration servers)

Batch EDI, RosettaNet

Pre-packaged integration processes & templates Intelligent routing – e.g., alerts, content-based routing & pub-sub

As “single point of failure” asset, MDM internal infrastructure has all the requirements of mission-critical applications & must be evaluated so


#8 Criteria = Analytics

Customer segmentation & targeting for cross-sell & up-sell

In-line analytics for closed-loop marketing

Data profiling to manage “degree of trust” associated with given master customer data source – e.g., completeness, uniqueness, accuracy, & lineage)

No longer are batch-oriented data marts or data warehouses sufficient to provide fundamental analytics necessary to drive customer profitability &

value assessments (to enable JIT & differentiated service)


#9 Criteria = Developer Productivity

Life-cycle approach

Systems management tools Change management

Software distribution

Testing

CMM compliance

Methodology

MDM ultimate goal is user-driven rules management, yet IT professionals (data stewards, et al) must set up & fine-tune this mission-

critical infrastructure © 2012 The MDM Institute www.the-MDM-Institute.com

#10 Criteria = Vendor Integrity

References vs. proof-of-concepts Professional services – work done by IT vendor to assist in the delivery of

solution via methodology, process, skills transfer, etc. Quality Breadth Customization

Corporate agility – Ability to respond, change direction, etc. in Responsiveness/Development Processes/Flexibility

Personnel – Mix of skills, expertise, experience, etc. Leadership/available skills Expertise/intellectual property

Financials – Combo of financial resources, liquidity, etc. Access to capital Profitability Growth rate

Vendor pricing models

MDM solutions have all the requirements of mission-critical applications – vendors must be evaluated so


Ancillary MDM Solutions

Actuate Acxiom Austin-Tetra (Equifax) Chordiant Composite Software D&B Denodo Endeca Enterworks Experian Gaine Solutions Golden Source Group 1 GXS

Human Inference InfoGlide InfoUSA/Donnelley

Marketing (InfoConnect) Liaison Technologies Loquate Omikron Pervasive Polk Progress Secerno Trillium Software Uniserve Varonis


“Top 10” MDM Evaluation Criteria

1. Data model 2. Business services 3. Identity resolution 4. Data governance 5. Architecture 6. Data management 7. Infrastructure 8. Analytics 9. Developer productivity 10.Vendor integrity

Infrastructure fracas will escalate as mega app vendors rush to

dominate business services/processes & data models as high ground




MDM Institute Field Reports – MDM**

DataFlux

Heiler

IBM MDS

IBM MDM Server

Informatica MDM

IBI MD Center

Kalido MDM

Microsoft MDS

Oracle MDM

Orchestra Networks

Riversand

SAP MDM & MDG

Software AG

Stibo

Talend

Teradata MDM

TIBCO MDM

Visionware

** Persisted customer or product data hubs


Field Report: DataFlux qMDM v3.0

Caveats Modest # of MDM references

– DSM, NMBS/Belgian Railways, PPL, The Travel Group, …

Modest support & references for product master data

Relatively small # of customers adding product master to customer master

No references for registry or high-volume transactional MDM implementations

Lack of SI channels Nascent BPM/workflow for

“policy hubs”

Strengths Graduated approach to MDM –

DQ->DG->MDM Quick time-to-value – no

per-record or per-domain charges Integrated DQ (incl entity

resolution) + quality knowledge DBs Flexible data model – domain-

neutral & multi-entity-based Commitment to active data

governance & related work flow SAS “deep pockets”, common data

mgmt, channel & stability Midmarket CDI references1

1 – Accident Compensation Corporation, Actelion BSN Medical, Carl Zeiss, CPP, Edwards Life Sciences, Hyundai, Invacare, Northern Virginia Electric Cooperative, West Midlands Police, …


Field Report: Heiler Software Product Manager 6

Caveats Focus on PIM – missing CDI, just

adding B2B supplier

Lack of inheritance/OO fundamentals in data model

Nascent SI channel strategy – Logica & Sapient best partners

Strengths Focus on multi-commerce MDM

– multi-channel + int’l multi-shop Expertise in aftermarket/MRO,

CPG & life sciences Rich workflow-oriented UI with

flexible data model – e.g., built-in data governance & dashboards

“PIM 360” – a.k.a. Prometheus methodology

App Suites – Catalog Mgr, Digital Media Mgr, Print Mgr, Business Catalog, Supplier Portal

Scalability & complexity1

International focus2

Momentum3

1 – High SKU count (25 000 products or more); complex products (250+ data elements, multi-level product / SKU);

2 – Multi-lingual; distributed data governance 3 – Baumark Direkt, General Motors, Harman, Otto, Мир Книги,

Music Group, Puma, Saks Fifth Avenue, Sartorius Werkzeuge, Tommy Hilfiger, Universal Music , …

Field Report: IBM InfoSphere MDM

Caveats Integration of MDM

technologies still in early stages

Industry/use case-specific solutions just emerging (outside of traditional strengths of HC/FSI)

Integration with other IBM products still emerging

Strengths Comprehensive – Integration of 3

best-of-breed technologies – MDM Server, Initiate MDS, MDM4PIM

Collaborative authoring – workflows for collaborative tasks

Strong solution for R/T processing with business services, MDM Application Toolkit & BPM Express

Real-time probabilistic search/match accuracy, scalability & performance

Strong emerging offerings in areas of Data Governance & RDM

Market share leader – strong in Fin Svcs, Public Sector, Healthcare & Retail

1 – MDM Server family 2012 nomenclature ^ Collaborative Edition = Collaboration Server

(formerly MDM Server for PIM) ^ Standard Edition = Initiate Master Data Service ^ Advanced Edition= Initiate MDS + MDM Server ^ Enterprise Edition = Collaboration Server +

Initiate MDS + MDM Server 1 – Financial Services - BofA, Barclays, Capital One 2 – Government – London Borough of Brent, State of

North Dakota, HMRC 3 – Healthcare – UPMC, Wellpoint, BCBS NC/KS/MN 4 – SIs = Kingland, dbMotion, Cognizant, Capgemini,

Perficient, Stream Integration, IBM GBS, …


Field Report: Informatica MDM 9.5

Strengths Extensible multi-entity/domain support1

Data governance console (IDD2) Multiple deployment – on-premise,

cloud, hybrid Multiple implementation

architectures/use cases – e.g., registry/transactional/coexistence

4th gen features: integrated BPM (Fujitsu), cloud integration, …

Strong integration with: data integration, identity resolution (IIR), metadata & DQ

Partnerships with ACN, CAP, CTSH, CSC, EMC, IBM GBS, TCS & WIT

Caveats Nascent active data

governance Nascent reference data

strategy Scalability concerns Registry-to-Hub

migration

1 - Products/Customers; B2B/B2C/B2B2C; Employee/Contractor/Clinical Protocol/Product

2 – Informatica Data Director (IDD) is data steward console application for entity lifecycle management

3 – 2012 momentum = 20th Century Fox, Aviva USA, BMC Software, Devon Energy, Global Hyatt, IP Australia, Logitech, Outback, Polycom, Printemps, …


Field Report: IBI Master Data Center (MD Center)

Caveats Under invested in marketing Nascent data governance

vision & roadmap

No reference data strategy

No BPM strategy

Lack of industry data models – data model agnostic mostly, just starting with healthcare data model

SI channel ramping up Modest # of references

Strengths Proven multi-entity MDM product

– via OEMing of Ataccama with addt’l upgraded deterministic matching & DQ Center

Real-time data integration1 – including process-level integration with Oracle & SAP

Integrated with iWay application & data adapters2

Integrated, separately marketed data profiling via DQ Center

New name customer momentum resulting from MDM as integral component of 2012 go-to-market BI strategy3

1 - B2B Suite (full E2E monitoring of B2B & B2B2Agent); BPA Suite; EIM Suite

2 - iWay Data Migrator iWay Service Mgr, iWay Search 3 – CNWL NHS, Ministry of Transportation (Ontario),

Mt. Sinai Hospital, SABRE Marketing, …


Field Report: Kalido MDM 9.0

Caveats Data governance needs

better integration (round-trip)

Lack of awareness for Kalido’s operational use cases

Lacks native customer/ address standardization

Lack of strong major SI channel

1 – Customer, product, financial, supplier, employee, location, KPI, etc.

2 – Recent European momentum in CPG, pharma, financial services, insurance, as well as established successes in Virgin Media, Visa Int'l, Imperial Tobacco, Post Office Limited, AB InBev, etc


Strengths Time-to-value/ROI Focus on active data governance

via data policy mgmt Multi-entity1 Reference data support Visual business modeler Process flows & workflow engine

for data governance/stewardship Model-driven user-specific

customized interfaces w/no coding

European momentum2

Field Report: Microsoft Master Data Services

Caveats No data governance

roadmap

No roadmap for integration with dynamic ERP & CRM

Lacks identity resolution

Not enterprise scalable

Lack of strong SI channel

Under invested in marketing

**Formerly Stratature +EDM (Enterprise Dimension Managemen


Strengths Hierarchy management

Customer, product, financial, supplier, employee, KPI, etc.

Pending RDM capabilities 2H2012

Integration with SharePoint & MS Office

(Eventual) integration with MS Data Quality Services (MS DQS)

Support for PSFT, SAP BW, R/3 hierarchy import

Low cost of ownership / SQL Server 2008 bundling

Field Report: Oracle Customer Data Hub v12.1.1

Caveats Minimal high-end

references

Fair-to-meek customer recognition capability

Best fit is B2B & mid-market

Lack of industry-specific data models

Strengths Multi-entity platform1

Trading Community Architecture

Mid-market references2

High-tech manufacturing expertise

Global ID generation, mgmt & x-ref

Integrated DQ & Analytics

Global reach3 1 - Parties, Products (PIM Hub), Locations (Site

Hub) 2 - Agrokor, Church Pension Group, Etat de

Geneve, GGB, Hanjin Shipping, Kangwon Land, LG Telecom, Network Appliance, Rand Merchant Bank, Symantec,, …

3 - Security blanket for government, high tech, & manufacturing industries


Field Report: Oracle Hyperion DRM 1,2 11.1.2.x

Strengths Analytical MDM for sharing

dimensions, hierarchies, & reporting Operational MDM (Ledger Hub) for

chart of accounts, cost centers, legal entities

Robust business rules engine (BPM) Active data governance – i.e., change

request/approval workflows, role-based access, granular security, model-driven

Integration with Oracle ERP/GLs, Hyperion EPM apps & others

Strength in both financials & Financial Services industry

Mature product, strategic technology3 Sold by HYSL & Oracle MDM sales

force overlays

Caveats Lack of CDI references Minimal marketing of the

solution

1 - Formerly Hyperion MDM 2 - DRM = data relationship management 3 - Potential to provide hierarchical

unification across CDH & UCM (as well as IBM, SAP, & others); frequent use as master reference data system


Field Report: Oracle Customer Hub1

Caveats Active data governance

strategy emerging – Oracle Data Governance Manager = DQ workflows

Delay of Fusion MDM Registry strategy still

evolving

Strengths Strong enterprise MDM & DG

vision & roadmap Enterprise-strength vertical Hub

applications OOTB integration w/ both Oracle

& non-Oracle apps Momentum & expertise in Telco &

Retail Banking High-end production sites2 Integrated DQ & identity

resolution (Datanomics) & analytics

Strong SI channel

1 - Formerly Siebel Universal Customer Master 8.2 a.k.a. “UCM”

2 – Areva T&D, Bank of Riyad, CSFB, Home Depot, KPN, Nokia, Qwest, Royal Caribbean Cruise Lines, Saudi Telecom, Toyota Financial Services, Westpac, Zebra Technologies, …


Field Report: Oracle Healthcare Master Person Index1

Strengths Open source (Mural, JCAPS) SeeBeyond heritage Primarily supporting registry-style

approach High scalability – albeit via toolkit

approach Party data – customer,

supplier, & citizen 100+ installations of SeeBeyond2

10+ of MDM Suite

Caveats Open source Under invested in

marketing Perceived as “healthcare-

& government-centric” Staff reductions

1 – Formerly Sun Microsystems MDM Suite R6 2 – Geisinger Health Systems, Harrods, Harrow Council,

Infonet, Los Angeles Department of Water & Power, Providence Health System, National Health Svc (UK)


Field Report: Orchestra Networks EBX 5

Strengths Integrated pro-active data

governance – data models, DQ rules, workflow config, role-based security, …

Native support for party & product + reference master

Strong multi-entity support via semantic modeling & OO layer (vs. relational orientation of others)

100% web-based UIs for business & IT

3-way versioning – “what if?”, “as of?”, “who did what?”

Standards-based, not 3rd party – Java, any RDBMS, any ETL

Cloud/SaaS offering, MDM Alliance

Caveats Modest marketing budget Lack of SI channel Lack of momentum

outside France1 Matching – new in EBX 5

Only modest references for high-end scalability2

1 – BNP Paribas; Bolloré Africa Logistics; Credit Agricole; Geodis; La Poste; L'Oreal; Michelin; National Bank of Canada; netSpend; Oseo; Technip; UBI Soft; United Technologies Corp; VUB Banka …

2 – BNP Paribas, Geodis

© 2012 The MDM Institute www.T, he-MDM-Institute.com

Field Report: Riversand PIM 6.1, MDM, & Plant MDM

Caveats Nascent operational MDM

for ‘customer/party’ Lags other vendors in

deployments Underinvested in marketing Current focus in NA but

expanding to EU (2012) & AP (India office 2011)

Ongoing channel conflict (minimal implementation partners)

New DQ partners as channel – CNET, D&B, Experian, LaCross, Loquate, Trillium

Strengths Built-in data quality & data governance Multi-entity MDM focus – product,

supplier, material, location, … Singular, modular, highly-integrated

solution = better process orchestration Deep comprehensive PIM functionality

– well-integrated, search, digital asset mgmt, workflow, print publishing

Deterministic matching Quantity of PIM references1 Retail, Petrochemical & Mfg expertise Hosted model available 1 – RETAIL: Fingerhut/Geddington, Overstock.com, PC Connection, VF Corp,;

MFG: Cytec Industries, Dresser-Rand; Ingersoll-Rand, Saint-Gobain, Siemens, DISTRIBUTION: ScanSource, Schneider Electric; ENERGY: ConocoPhillips, ExxonMobil, Spectra Energy, BP; PHARMA: Teva, GHX


Field Report: SAP NetWeaver MDM v7.1

Caveats Operational MDM for

‘customer/party’ not field proven Did not support “full data”

model until 7.13 Confusion/concern over long

term roadmap/viability SAP NW MDM = enterprise MDM

for heterogeneous environments SAP MDG – “embedded” w/ SAP

solutions, starting w/ BOBJ; domain-specific MDM apps

SAP MDF/MDS (master data svcs) – HANA-enabled MDM for real-time CDI

Registry strategy still maturing

Strengths Analytical MDM reporting for

customer/party Operational MDM for supplier

& product Quantity of MDM references1 Supply chain expertise Multi-entity MDM focus2 &

consistent product strategy Integration with BOBJ

data quality & integration (ETL) SAP underpinnings for sys mgmt

1 – CDI-related = Adidas, Intel, Nortel, Whirlpool, … 800+ sites for PIM 2 - Including full product information management (PIM) capability & support for material, vendor, etc. 3 –Very conservative ramp up; Previously lacking due to party model limitations

© 2012 The MDM I nstitute www.The-MDM-Institute.com

Field Report: Software AG webMethods OneData v8.2

Caveats Lack of market awareness of

MDM acquisition SI channel ramping up Under invested in marketing Modest number of CDI

references 3

Process-oriented MDM approach is new to market

Strengths Fully integrated multi domain1

Multiple architectural styles & use cases in one instance2

Data model flexibility Sophisticated hierarchy mgmt—

e.g., relationship charts, rules mgmt

Full lifecycle with DG framework Integrated DQ engine (Trillium) Full SOA Future integration of Software

AG’s BPM strengths to MDM Price & time to value via pre-

packaged templates

1 – Enterprise data model covering all domains, or a portion, generates the framework of the MDM solution which can be extended or configured

2 – Supports all architectural styles except Registry; supports operational MDM & analytical MDM use cases

3 – Avon, Cargill, GE, Novartis, Paraexel, Wellpoint, ...


Field Report: Stibo Systems STEP 5.2

Caveats Nascent operational MDM for

‘customer/party’ Active data governance

capabilities just emerging Registry strategy still

maturing BPM strategy evolving Reference data strategy

needed SI channel ramping up2 Underinvested in marketing Ongoing channel conflict

(minimal implementation partners)

Strengths Deep functionality for PIM –

comprehensive, well integrated (product, supplier, location)

PIM scalability Quantity of PIM references1 Retail, Travel & Hospitality

expertise Multi-entity MDM focus&

consistent product strategy Deep pockets/financial stability Global sales & support

1 – BlueLynx/GP, bol.com, Fairchild Semiconductor, General Motors, Hagemeyer, Home Depot, Mitchells & Butlers, Office Depot, Oriental Trading Company, Sears, Target, …

2– Acuity Group, ACN, Deloitte, EMC, Logica, Platon, Sapient, Steria 3 –STEP 5.3 is full-stream multi domain MDM with an all new entity model at the core © 2012 The MDM Institute www.The-MDM-Institute.com

Field Report: Talend Enterprise MDM v5.x

Caveats Lacking "active data

governance" (upstream)

Lacking identity resolution


Uncertain strategy re: software-as-a-service MDM capability

Strengths XML-based MDM with non-intrusive

SOA

Multi-entity MDM support – customers, suppliers, products, organization, employees, ...

Lower cost than proprietary MDM solutions

Proven commercial open source expertise & business model from recognized market leader in open source data integration

Integration with Talend open source DQ & data integration (ETL) capabilities; nascent BPM integration

Rapidly evolving “big data” alignment – e.g., Hortonworks © 2012 The MDM Institute www.The-MDM-Institute.com

1 – 80 projects worldwide using the 'free' version

2 – BBC; Berlingske; Boston College; Federal Reserve Board; Gendarmerie; Iron Mountain; RTE; SAB Miller; SourceMedia; St. Judes’s Research Hospital; Swisscom; The Weather Channel; Time-Warner Cable; Veolia; Vinco Group …

Field Report: Teradata|Aprimo MDM 3.1

Strengths Analytical & operational MDM

+ party & product & financial & RDM Full lifecycle & process flows for

multi-entity support Consolidated EDW & MDM platform +

focus on reference data mgmt for DW Integration with Teradata DB, Profiler,

Aprimo Relationship Manager, et al CDI & PIM accelerators DQ integration with Trillium, SAP DQM,

SAS DataFlux, Informatica Identity Resolution (matching)

Packaged CDI Solution planned for MDM 3.2 for release in June 2012

Caveats Modest # references1

Active data governance strategy evolving

SI support ramping up

1 – ANZ Bank; top 3 W/W CPG Co.; Electronic Arts; Hershey’s; Intel; large Indonesian mobile communications firm; MillerCoors; NAB; NCR; Pratt & Whitney; Telstra; Teradata; Vodafone Australia


Field Report: TIBCO MDM1

Strengths Well-suited for both operational &

collaborative MDM Full lifecycle & process flows for multi-

entity support + reference data Multi-hub, multi-application MDM

deployment Active data governance via integrated

BPM/workflow for collaborative authoring & orchestration

Integrated (Trillium) Data Discovery & Data Quality

Architecture fits well with real-time & distributed services nature of SOA + BPM

Import/export of hierarchical data from multiple sources simultaneously

Intelligent MDM-integrated search

Caveats Missing formal CDI

solution – i.e. packaged more as a “kit” ... vertical CDI solutions due 2H2012

BPM dominates MDM within TIBCO


Prof svcs org somewhat competitive vs. SIs

1 – formerly Collaborative Information Mgr (CIM) 8.x

2 – Covance, Digikey, GFI Group, Lafarge, Lion Nathan, Mahindra & Mahindra, RAC of WA, Rent-a-Center, Paul Hartmann AG, Sanofi Pasteur, State Compensation Insurance Fund, Vodafone…



Field Report: VisionWare MultiVue Identification Server

Strengths Analytical–capable +

operational–focused MDM Multi-entity – people, property &

assets Public sector expertise Sophisticated, yet well-packaged

core MDM functionality – e.g., DB partitioning, web services, BPM

Mid-market pricing Microsoft as channel Microsoft software stack

affinity Longevity – e.g., 100+ installations

Caveats Strategy beyond public sector

just beginning UK-centric Currently mid-market

scalability1 – e.g., millions vs. 10s of millions of master records

Matching algorithms for data custodianship evolving – not automated self-tuning level yet

Data governance strategy evolving

Registry-orientation more than persisted data hub

1 – Product tested up to 50 million records with no performance issues; additional future testing with Microsoft Scalability labs


MDM Institute Field Reports – MDG

ASG

BackOffice Associates

Black Watch Data

Cognizant + Collibra

DataFlux

EMC/RSA/Archer

IBM MDPH

IBI MD Center

Informatica IDD

Kalido DGD

Microsoft DG Console

Oracle DGF

Orchestra Networks

SAP MDG

Software AG

Utopia

Varonis

** Persisted customer or product data hubs

Master Data Governance “Top 10” Technical Evaluation Criteria

1. Methodology 2. Data exploration/profiling 3. Data model, policy model

& business glossary mgmt 4. Rules/policy mgmt 5. Decision rights mgmt 6. MDM hub integration 7. Enterprise application

integration 8. Integrated metrics 9. Multi-level, role-based security 10.E2E data lifecycle support


Understanding scope, diversity & limitations of currently-marketed MDG offerings is tremendously challenging




Field Report: IBM Master Data Policy Hub (MDPH)

Strengths Common DG layer across

Standard & Enterprise MDM Server editions

Ultimate integration with Guardium, Optim, et al

Ongoing integration w/BPM (BPMExpress a.k.a. Lombardi)

IBM BAO/GBS teams available w/w

Caveats Lack of integration w/

Reference Data asset Big IBM stack req’d Lack of integration with

Smart Governance Council assets


Field Report: Informatica Data Director (IDD)

Strengths Good for fundamental

MDM administration as data steward console

Task-oriented & business process-driven

Access to history & data lineage

Optimized around DQ anomalies

Flexible security model

Caveats Out-of-step with main

INFA MDM process flow Too easy for end users to

trash performance with ill-advised queries


1 – Formerly Siperian Business Data Director

2 – Informatica Data Director (IDD) is data steward console application for entity lifecycle management

Field Report: Kalido Data Governance Director (DGD)

Strengths Visionary leader UBM methodology Flexible decision rights via

mapping of roles & responsibilities

Export of policy compliance metrics

Policy-focused solution incl remediation processes

Proactive workflow for data & processes

Accenture heritage

Caveats Late-to-market

integration with Kalido MDM

One-way trip/export into Kalido MDM

Only supports Kalido BPM


Field Report: SAP Master Data Governance (MDG)

Strengths Ready-to-use governance

applications integrated w/SAP ERP

Predefined & extensible data model

Prebuilt & flexible workflows

Multi-mode data replication Integration with BOBJ

data quality/validation assets (cleansing, matching, & consolidation)

Verifiable audit trail

Caveats Late-to-market with B2C

customer Lacks flexible hierarchical

management of data Lacks master data within

transactions Lacks identification of

data pattern profiles Nascent cloud-

enablement & integration Nascent big data &

analytics support for social CRM data

© 2012 The MDM Institute www.The-MDM-Institute.com 1 – SAP MDG-F (finance), MDM-M (materials), MDG-S (suppliers), MDG-C

(customers)

Field Report: Utopia

Strengths Strong growth North America1, 2 SAP, Open Text & ACN

partnerships Utopia Lab/COEs, Uni Multiple entry points for sales in

migration, quality & governance Support (via Open Text) to

integrate unstructured Full E2E lifecycle methodology

(EDLM) – Assessment, Strategy, Roadmap

Cloud & HANA MENA3 depth

Caveats No longer sole preferred

partner for SAP MDM/MDG as of 2012


1 – 250% growth despite torpid economy 2 – Captaris, Coca Cola Enterprises, ConAgra,

CSL Behring, CVS/Caremark, Dubai Aluminum, DuPont, ExxonMobil, Grainger, Harley-Davidson, John Deere, Kellogs’s, Kennametal, Kimberly-Clark, Kraft, Malaysia Airlines, Neptune Orient Lines, Newmont Mining, Pertamina, RasGas, Saudi Arabian Airlines, Suncor Energy, Tyco Electronics, Wolters Kluwer

3 – MENA = Middle-East & North Africa


MDM Institute Field Reports – RDM

Aprimo LRDM (Teradata)

ASG ROCHADE (Metadata-driven RDM)

DataFlux qMDM

IBM MDM RDM Hub

Informatica RDM

Kalido

Microsoft RDM (to be announced)

Oracle Hyperion DRM

Orchestra Ebx

Profisee

SAP MDG-R

Software AG WebMethods OneData

** General-purpose or multi-domain RDM, not industry-specific solutions such as capital markets, pharma, e.g., AIM, Asset Control, Eagle, Golden Source , Kingland Systems 360 Data, and RSD

Reference Data Management “Top 10” Technical Evaluation Criteria

1. Ability to map reference data 2. Administration of reference

data types 3. Management of reference

data sets 4. Architecture 5. Hierarchy management over

sets of reference data 6. Connectivity 7. Import and export 8. Versioning support 9. Security & access control 10. E2E lifecycle management


Understanding scope, diversity & limitations of nascent RDM offerings is challenging


Field Report: IBM MDM Reference Data Mgmt Hub

Strengths Purpose-built,

commercially proven RDM Utilizes IBM MDM

foundation Full function with strong

taxonomy support & mappings

Ease of deployment, implementation, & use

Market momentum1

Caveats Lack of BPM integration &

workflow (needs configurable workflow)

Lacks Cloud architecture & SaaS offering

Perception of excessive software stack foundation

Missing adapters for other IBM software (Discovery, etc.) & other major apps such as Oracle & SAP


1 – Achmea, ANZ Bank, BCBS of North Carolina, Citi Mortgage, DnB NOR ASA, IBM Office of the CIO, LabCorp, Standard Bank of South Africa and The CIT Group

BOTTOM LINE

Acknowledge no single MDM vendor “does it all well”

Analytical vs. Operational vs. Collaborative MDM

B2B vs. B2C vs. B2B2C

Batch vs. real-time

Recognize that industry expertise matters

Test drive identity resolution/matching & consulting expertise

Invest in data governance for long-term sustainability & ROI


Managing the SI Relationship

Determining the evaluation criteria for selecting SI partners for MDM projects

Identifying which SIs are market leaders in your industry & your chosen software technologies

Managing the SI relationship – esp. avoiding “brain drain” & inflationary “blended rates”

Preparing for talent shortages now is the savvy way to avoid the MDM "money pit" later


Why Focus on “SI” Cost Component?

MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub

MDM Institute research finds G5000 enterprise spends average of $1.2 million for MDM software solutions - with addt’l investment of 4X in SI services

MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs)

Recent buzz around MDM is rivaled only by intensity with which systems integrators have "found MDM religion"

Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to

contain costs, but also to insure success of this vital infrastructure investment


MDM Phases

Phase 0 Scoping of Phase 1 Limited proof-of-

concept (POC) Requirements capture ROI projection Vendor & product

evaluation Phase 1

Limited deployment within single business division or department for single entity, e.g. customer or product

Phase 2 Going enterprise-wide

with single master entity, e.g. customer, product, supplier, etc.

Phase 2+ Going enterprise-wide

with more than one master entity, e.g. customer, product, &/or supplier, etc.

Phase 3 Extending master data

extra-enterprise-wide with more than one master entity, e.g. customer, product, &/or business partners, e.g. strategic sourcing supply chain, outsourced call centers, etc.


Other Post "Phase Zero" Tasks

Perform gap analysis to determine which software must be developed internally & which can be purchased

Identify a systems integrator (SI) consultancy partner Plan for IT organizational change management Work with the business leadership to design & refine

"future state" business processes associated with new MDM commitments

After determining/aligning business strategy …


Areas Where SIs May Provide Value

Identify & prioritize business functional requirements Recommend build vs. buy Provide a solution selection methodology that

balances business & technical requirements Develop detailed request for proposal (RFP) Evaluate & select the right MDM software solution

vendor(s)


Areas Where SI Provides Implementation Value

Pilot the MDM solution & application integration Develop IT & business user communications in

addition to training materials Define & establish user job roles – e.g., MDM project

leads, corporate/LOB data stewards Define metrics for ROI or other measurements Structure change management & system tuning

strategies


“Top 5” Technical Evaluation Criteria for MDM Systems Integrators

#1 – Extensible data governance methodology & accelerators

#2 – Industry-specific data model experience & ETL mappings

#3 – SOA architecture experience & accelerators

#4 – MDM product experience

#5 – MDM project experience (industry, geo, ego)

Partner's capabilities include their depth & available expertise


Understanding Your SI’s Business Model

Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche MDM software vendors with which to align

Each MDM vendor has Vertical industry – e.g., banking or

pharmaceutical Corporate horizontal functional

specialization – e.g., B2B hierarchy rationalization)

Mind share & brand recognition by virtue of early successes

Typical SI Team Drawn From Various Other Practice Teams • Enterprise architecture

planning, esp. SOA experts • Enterprise data modeling • Legacy app reengineering • Data conversion & application

migration • Data quality • EAI middleware & BPM

experts. • Analytics & ETL experts • Testing & QA • Systems infrastructure mgmt • Performance engineering • ROI & cost-model generation

(business value articulation)


Data Governance Will Become Major Investment

Defining master data governance IT processes Establishing & training the data stewardship function Designing future state business processes tied to

newly founded MDM commitments regarding customer data


How to Keep Staff from Being Shanghai’ed

Financial handcuffs Personal/corporate recognition Career tracks Contractual non-compete/”hands-off my people”


MDM & DG SI Round-Up

1. ABeam Consulting 2. Accenture 3. Adastra 4. Affecto 5. Attevo 6. Arhis 7. Atos 8. BackOffice Associates 9. Black Watch Data 10. Broad Street Data 11. Business & Decisions 12. Capgemini (formerly

Cap Gemini E&Y) 13. CGI-American Mgmt Sys 14. Cognizant Technology

Solutions 15. CSC (Computer Sciences

Corp.) 16. Deloitte Consulting 17. Detica 18. Datpro 19. Datum 20. EMC Consulting

21. eCentra 22. Edifixio 23. Evaxyx 24. eVerge Group 25. First San Francisco

Partners 26. Fujitsu (formerly DMR) 27. Global Soft 28. HCL Technologies 29. HighPoint Solutions 30. Hitachi/Sierra Atlantic 31. HP Information Svcs 32. IBM GBS/BAO & Lab

Services 33. Infogain 34. Infosys 35. InfoTrellis 36. ITC InfoTech 37. Jibes 38. Keane 39. L&T InfoTech 40. Logica


41. LumenData 42. Mahindra Satyam 43. Micopole 44. Northgate Info Svcs 45. iGATE Patni 46. Perficient 47. Platon 48. Project Performance

Corporation 49. PwC 50. SapientNitro 51. Serene 52. SITA 53. Sopra 54. Steria 55. Stream Integration 56. Synergic Partners 57. Tata Consultancy

Services 58. Unisys 59. Utopia 60. Wipro

Field Report: Major SIs

Accenture

BackOffice Associates

Capgemini

Cognizant

Deloitte

EMC

IBM BAO/GBS/ Lab Services

Informatica Pro Svcs

Infosys

Logica

Lumendata

Oracle Pro Svcs

SAP Pro Svcs

Stream Integration

Tata

Utopia

Wipro © 2012 The MDM Institute www.The-MDM-Institute.com

Field Report: MDM & DG Specialists Affecto Arhis Attevo Black Watch Data Broadstreet Data Business & Decisions Caritor Consology Datpro Detica Datum eCenta Edificio Entity Group Evaxyx First San Francisco Partners

GlobalSoft HighPoint Systems Hitachi/Sierra Atlantic InfoTrellis Jibes Myers-Holum Project Performance Corp. NorthGate Perficient Platon Serene SapientNitro SDM SITA Sogeti Steria


Field Report: Major SIs with Minor Practices

Atos

Avanade

BearingPoint CGI-American

Management Systems

CSC

Dell/Perot Systems

Fair Isaac / Braun Consulting

Fujitsu (Born, DMR)

Hitachi Consulting

HP/Knightsbridge/EDS

Lockheed Grumman Mahindra Satyam PwC SAIC

SBS (Siemens Business Services)

Unisys


Three Key Business Factors

Status of current incumbent relationships at the executive level

Status of current contracts, and pending contract negotiations (for other projects)

Business size, partnership direction, and ongoing viability of the SI/consultancy

Your organization’s weightings may vary …


Bottom Line: Avoiding the SI Money Pit

SIs are often necessary to sell C-level execs Without C-level support, BUs will find it difficult to

contribute funding & resources necessary to launch an MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)



SIs are needed to coordinate IT & Business Readiness & maturity Plan for IT organizational change management to

support MDM efforts Work with business leadership to design & refine the

“future state” business processes associated with new MDM commitments



SIs are needed to help transform IT organizations To a greater degree than traditional application

development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative



After initial development of a MDM system, SIs can help IT & Business by facilitating Ongoing participation in development of business

rules & resolution of master data match/merge issues Ongoing commitment to update both applications &

business processes to leverage core data stored in master data hub


Rx for SI Management Strategies

Acknowledge that SIs are essential to success of majority of MDM & Data governance projects

Recognize that incumbent SIs are no longer so

Identify which SIs are market leaders in your industry & your chosen software technologies

Proactively manage key IT positions

Leverage SIs for their “value add”

Given substantial investment businesses undertake with SI partners, this area must be given scrutiny – not only to contain costs, but to

insure success of this vital infrastructure investment


“Lessons Learned” 1H2012

Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes

Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade

Begin MDM projects focused on either customer-centricity or product/service optimization

Plan for multi-entity MDM solutions evolving from “early adopter” status into “competitive business strategy” during 2012-13


How to Leverage the MDM Institute

Kick start the “MDM evaluation process” Attend public workshop Bring workshop on-site

Fine tune in-process MDM strategies Due diligence on reference checking & contract details

Stay ahead of curve via MDM Business Council Re-qualify every 6 months via survey Receive MDM Alerts & access to Web-hosted research

Increase your knowledge & negotiating strengths via MDM Advisory Council Membership Participate in monthly email surveys & receive updated industry scorecard Receive monthly MDM consultation via telephone

“Independent, Authoritative, & Relevant” © 2012 The MDM Institute www.the-MDM-Institute.com

MDM & Data Governance Summit™ Conference Series

MDM & Data Governance Summit Canada The Carlu – Toronto ▪ June 27-28

MDM & Data Governance Summit Americas Marriott Marquis NYC Times Square ▪ October 14-16

MDM & Data Governance Summit Singapore Marina Bay Sands Resort ▪ November 27-28

MDM & Data Governance Summit Shanghai Shanghai International Convention Center ▪ March 2013

MDM & Data Governance Summit Europe Radisson BLU – London ▪ April 13-15, 2013

MDM & Data Governance Summit Asia-Pacific Four Points Darling Harbour– Sydney ▪ May 20-21, 2013

MDM & Data Governance Tokyo Belle Salle Kanda– Tokyo ▪ June 14, 2013

MDM & Data Governance Summit San Francisco Hyatt Embarcadero – San Francisco ▪ June 2013


“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”

Authoritative

Relevant

Independent

Aaron Zornes Founder & Chief Research Officer

The MDM Institute

The-MDM-Institute.com a.k.a. www.tcdii.com


http://www.tcdii.com/

Documents

Pre-Conference Workshop MDM & Data Governance Quick · PDF filePre-Conference Workshop MDM & Data Governance Quick Start 7 th ... Stibo, Teradata MDM, TIBCO ... Microsoft Master Data