Product to Customer. through MDM. Presented by Luminita Vollmer, MBA, CDMP, CBIP
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1 Product to Customer A Fundamental Change through MDM Presented by Luminita Vollmer, MBA, CDMP, CBIP May 1, 2012 Atlanda, GA EDW 2012
2 Contents Introduction The Focus of the Presentation Disclaimer The story of Tex Red Closure
3 Introduction Speaker Bio: Data Architect for over 15 years, more recently IT Solutions Architect Undergrad studies in MIS/Business MBA College of St. Thomas in St. Paul CDMP, CBIP certified
4 Introduction Speaker Contact: Linkedin: Luminita Vollmer
5 Introduction The story: a manufacturing company with excellent products that wants to expand and grow by changing its focus from Product knows best to Customer barely knows.
6 Introduction The Impact: Fundamental, on many levels Cultural Processes Technology Engineering vs Customer facing Collaboration vs Cowboy/Lone Ranger Enterprise level lvs Silos Integration at the Data level MDM In memory reporting
7 Contents Introduction The Focus of the Presentation Disclaimer The story of Tex Red
8 The Focus of this Presentation Changing g from Product Customer focus requires fundamental changes in the business made possible by technology using Master Data concepts in the context of an enterprise initiative. Significantly contributing to the company s bottom line, the Customer and Product MDM use a holistic approach of best practices and technology to deliver an integrated view.
9 The Focus of this Presentation This Integrated view improves: 1 - operational efficiency 2 - allows for predictive analytics through standards, data quality and improved market expansion 3 positions the enterprise for growth. The story of a medium sized manufacturing company, The story of a medium sized manufacturing company, with a long history of product excellence and Customer service on a journey of CHANGE for the business units, products and markets served.
10 Contents Introduction The Focus of the Presentation Disclaimer The story of Tex Red
11 Disclaimer This presentation is not about any projects or programs at my current place of employment. This case is about a real company, fictitiously named TexRed. It is NOT an MDM-101 presentation but a story about an initiative recommended for implementation at TexRed to support the business directive of revenue growth.
12 Contents Introduction The Focus of the Presentation Disclaimer The story of Tex Red y Closure
13 The Story of TexRed A medium sized manufacturing company Long history in the community - over 100 years Same executive leadership for the last 30+ years Has grown through several acquisitions since 1904 Line of Business are silos in any conceivable way Employees are a strong community Some employees started right out of college Small IT shop about 124 EE to 3000 overall Vitria is the integration for submitted transactions
14 The Business Directive A 3-year initiative that would almost double the revenue from $1.7 to over $3B. Changes were believed would happen. Strategies were being talked about. Everyone was looking around, asking questions. More acquisitions speculated.
15 The Assessment Executive management Lead IT and Line of Business Consultants Slogans Build Master Data one project at a time MDM technology alone is not sufficient IT and Business need to partner Team building All marching to the same drum beat
16 The Assessment Led to the following strategies: Small and Specific Most time consuming issues Most important questions without answer Kaizen s Predict data needs by listening in planning meetings
17 The Findings Hierarchies Identity Parent to Child Headquarter to Branch Distributor to Dealer Large Scale Seller to Consumer Company X and Company Y are the same Company Z purchased product1, product2 Consumer XYZ purchased from us 7 yrs ago Product1 Data Segmentation By Region Type of Account Customer Business Domain Range of Revenue Product
18 The Findings MDM Heavy reuse of. well everything A series of practices and approaches to manage data as an asset including DG, DQ, Metadata Mgmt, Patterns and Technology Partnership between Business and IT
19 The Findings Definitions Wikipedia definition: In computing, master data management ( MDM) comprises a set of processes and tools that consistently defines and manages the non- transactional data entities of an organization ( also called reference data.) MDM has the objective of providing processes for collecting and distributing such data throughout an organization to ensure consistency and control in the ongoing maintenance and application use of this information.
20 The Findings Definitions Gartner definition Master Data Management ( MDM) is a discipline in which the business and the IT organizations work together to ensure uniformity, accuracy, semantic persistence, stewardship and accountability of the enterprise s official, shared master data. Organizations apply MDM to eliminate endless, time-consuming debates about who s data is right, which can lead to poor decision making and business performance.
21 A simple Vision Transformation Change Business Driven With help from IT MDM Domains Customer and Product Organizational Efficiency Lower Cost Enable Growth More Customers More Products to New and Repeat Customers
22 Execution of Vision Methodology 3 Pronged 3 Phases Approach Framework Start without an MDM packaged solution Lifecycles Performed analysis on the lifecycles of each domain Maturity Models Assessed each domain for maturity level
23 Execution of Vision (cont) Business Case for Value Built a matrix of Values for each LOB Timeline Was given as 3 yrs, but value started immediately the golf courses case Areas of deployment MDM, DQ, DG Metrics Reports produced in memory y( (QlickView) Issues resolved
24 Execution of Vision (cont) (1) Know the Customer High g quality, unified view of critical data (3) Get, Keep, Grow the Customer domains, Customer and Product Understand profitability Customers across TexRed divisions Identify upsell/cross-sell opportunities Consolidated View for better account planning Identify new markets and regions Understand the overlap in eventual acquisitions Improve customer service customer, product and markets Identify new prospects (2) Understand the Customer Issues customers are facing Issues TexRed is facing At risk business Unrealized opportunities (4) Current Strategies Develop customer intelligence capabilities that will allow better alignment with enterprise strategies Clearly understand our customers portfolio allowing for increased retention, cross-sell and up-sell accelerating growth and profitability Understand, consolidate and reconcile customer data sources to reduce operational inefficiencies and increase speed to market
25 MDM Technology Adoption Maturity Models
26 Methodology Hambrick and Frederickson Model
27 Methodology Coordinate key components Data sources+processes+uses All areas of MDM MDM, DG, DQ Start with a manual integration process Continue with automation using ETL Standup a packaged solution with services
28 Methodology - MDM New concepts very difficult Deliberate MDM relate and conform Declare Master Data Domains (MDD) Cust, Prod Design processes for integration of data sources Document business rules for the new process Identify Data Sources for master domains Make use of already in-house tools Build UID ( Universal ID Logic)
29 Methodology - DQ Data Quality is not an event but a process baked into the everyday tasks: detect, correct and prevent Make use of in-house tools Design DQ processes Identify Data Sources Identify priority thresholds ( what source gets to be saved ) Document business rules for Merge process ( consolidate) Start building the UID ( Universal ID Logic) xref
30 Methodology - DG The act of governing based on decision making, planning and communicating Make use of in-house tools Reference data in the DW SalesForce.com export of Cust + Type Dealer information DataFlux suite of tools and server Design DG processes What source has the highest threshold Document business rules changes Use UID ( Universal ID Logic)
31 The Challenge Data lifecycle with initiative lifecycle
32 Why MDM? Fundamental approach focuses on: Data standards Data governance Data quality Metadata management Purpose driven approach focuses on: Business targets beneficiaries Modular increments i.e. categories
33 Business Case for MDM Value Operational Value Core business entities Customer, Product Informational Value how many of the new customers are already my customers Do I retain customers that cost more than they generate When is a customer a national account how many customers do I have Where are potential areas for growth? Additional data geo, weather,
34 Business Case for MDM Value (cont) Understanding MDM s Organizational Challenges Horizontal coordination people issue Coordinated change process issue Consistency in meaning knowledge management issue Standard business rules technology issue Fundamental change to business as usual organizational issue Higher h upfront costs for necessary infrastructure t financial issue
35 MDM Business Value Consistent use of data Reporting Accuracy Data Sharing and usability Ability to explain variability Standardized data validation same ref data Complete and Consistent data Provide data to a real time environment ( SOA) One entry point, One Maintenance, One Source of use
36 Framework to Success Manage data as an asset put $ value on every customer record Drive business to adopt master data lunch time seminars, scheduled presentations, Cue cards Provide prescription for incremental growth show how the next step will increase value and how it fits Balance Bl opposites for best outcome Long vs short ent vs lob, top vs bottom, speed vs standards Reconcile enterprise and local data combine the data at the enterprise level, not just LOB Address data quality upfront as defined by the business ( Floridadealer dealer getting the trip if the NewYork dealer)
37 Timeline A 3-yr project initiative that would implement a Customer and product MDM, DG and DQ with a Packages solution that augmented already in house tools, systems and existing data warehouse.
38 Metrics in a Matrix Data Models Data Services Reference Data Data Related Business Rules Data Movement Processes Data Policies ( development and conformance)
39 MDM Myths MDM tells us why and how data needs to be managed MDM is a DataWarehouse project or a BI project We can reuse the data model and the ETL code MDM is another IT Integration project To implement MDM you need a packaged solution
40 MDM Capabilities Identity Matching Consolidation through Merge Traceability - MasterData Audit trail Source of Data MDM Administration RoleBased Security Versioning
41 Data Governance Capabilities Hierarchy management Same Definitions Improved Communications Common Enterprise Vocabulary Everyone on the same page
42 Data Quality Capabilities Data Profiling Data Cleansing Parsing and Standardization Data Matching and merging - UID Data Enrichment Address Name parsing Genderization Geocoding Identifiers SIC codes Verification Data Validation and Business Rules
43 Contents Introduction The Focus of the Presentation Disclaimer The story of Tex Red Closure
44 Closure Speaker Contact: Linkedin: Luminita Vollmer
45 Closure Situation First stage was well under way 2 nd stage was being designed and ETL jobs institutionalized. Business interaction and contribution was happening MDM package was evaluated and price estimation under way Architecture and Integration was also being looked at Business Architecture was being built, for future opportunities besides MDM
46 Q & A??? s All together now. Thank you
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