Master Data Management: More than a single view of the enterprise? Tony Fisher President and CEO

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1 Master Data Management: More than a single view of the enterprise? Tony Fisher President and CEO

2 Agenda Why MDM? Why CDI? Business Drivers for MDM Are You Ready for MDM?

3

4 What is Master Data Management?

5 Business Drivers for MDM What to tell your CXOs Increased Revenue Regulatory Compliance Improved Customer Relationships Operational Efficiency Mergers and Acquisitions Product Innovation/Competitive Advantage Reduced Risk

6 A Robust MDM Solution Should Act as a single point of reference for domain data by managing an ID for all systems Be built on a data quality platform Support real-time operational data integrity and serve as the integration point between operational systems Provide integration of operational and business intelligence environments Incorporate a flexible domain data model Leverage the SOA environment

7 What is Customer Data Integration? CDI is a subset of MDM CDI is the automation of the integration, reconciliation, management, and certification of customer master data from enterprise systems to enterprise systems. - Jill Dyché

8 Customer Data Management Techniques Database Marketing CDI SFA CRM Data Warehouse ERP

9 Master Data Maturity Model HIGH Master Data Management CDI LOW CRM BPM Integration Reward Data Warehouse ERP PDM Risk SFA LOW Database Marketing UNDISCIPLINED REACTIVE PROACTIVE GOVERNED People, Process, Technology Adoption HIGH

10 MDM Landscape Operations Analytic Billing Integration Services Web Services Customer Data Warehouse Operational CRM Data Marts ERP System Marketing Data Mart Web Services Master Data Hub ETL Web Apps BI Apps Call Center

11 Master Data Technology Requirements Business Process Integration MDM Client Interfaces Data Quality Identity Management Merging and Clustering Business Rules Execution Verification, Normalization, Standardization, Transformation Source System Interface Master Data Hub Data Steward Interface Domain Data Models Administration and Configuration

12 Evolution of Master Data Management Undisciplined Data Quality Business Process Integration MDM Client Interfaces Identity Management Merging and Clustering Business Rules Execution Verification, Normalization, Standardization, Transformation Source System Interface Data Steward Interface Domain Data Models Administration and Configuration TECHNOLOGY PROCESS PEOPLE Data and processes are siloed and operate independently Data quality is sporadic Limited identity management Departmental focus/success Business analysts not involved Success dependent on a few skilled technical people No coordination across lines of business Individuals drive decisions

13 Business Issue Manufacturing plant fire alerted Kohler to the need for better customer data management. Mission Determine who Kohler s customers are and what Kohler s customers buy and how Kohler can help their customers. Results Better understanding of customers and the relationship of the customer to Kohler. Ability to better service the customer and optimize delivery issues.

14 Evolution of Master Data Management Reactive Data Quality Business Process Integration MDM Client Interfaces Identity Management Merging and Clustering Business Rules Execution Verification, Normalization, Standardization, Transformation Source System Interface Data Steward Interface TECHNOLOGY PROCESS PEOPLE Data is integrated for specific touch points Data quality is localized but still uncoordinated Data quality/identity management in batch Line of business success Business analysts provide limited input Group of skilled, technical individuals drive success Domain Data Models Applications drive decisions Administration and Configuration

15 Global Resort Operator Business Issue Single view of customers for better customer relations. Mission Track spending patterns and build a more useful, reliable view of the customer via Customer Data Integration (CDI). Results A single, unified view of each customer. The company can better serve its customers according to lifestyle, hobbies, preferences, etc. The organization can maximize their marketing campaign dollars by promoting the most appropriate offers to each customer.

16 Evolution of Master Data Management Proactive Data Quality Business Process Integration MDM Client Interfaces Identity Management Merging and Clustering Business Rules Execution Verification, Normalization, Standardization, Transformation Source System Interface Data Steward Interface Domain Data Models TECHNOLOGY PROCESS PEOPLE Integration of business and data quality rules The true value of integrated data is recognized Coordination across lines of business Preventative measures in place Business analysts participate in data management Executive sponsorship Data stewards drive cross functional consistency Data drives decisions Administration and Configuration

17 Evolution of Master Data Management Governed Business Process Integration Data Quality MDM Client Interfaces Identity Management Merging and Clustering Business Rules Execution Verification, Normalization, Standardization, Transformation Source System Interface Data Steward Interface TECHNOLOGY PROCESS PEOPLE Data and business processes are integrated Reuse of business logic and synchronized applications Business processes are automated Business analysts take leadership role in data strategy Management treats data as a corporate asset Domain Data Models Business processes drive decisions Administration and Configuration

18 Centura Business Issue Meet government regulations for watchlist compliance efforts and USA Patriot Act. Mission Match list of banking transactions against a reliable list of known or suspected terrorists, criminals or fraudsters. Reduce the number of false positives. Results Lowered flagged transactions per day by refining rules to match suspicious transactions. Compliance staff could focus more on helping the company meet regulatory requirements.

19 Lessons Learned Data Quality is the foundation of successful MDM (CDI) MDM (CDI) provides for the integration of operational and business intelligence environments Business drivers are more urgent Think globally, act locally MDM (CDI) starts with understanding the maturity of data management within your organization

20

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