Avoiding the MDM SI Money Pit Aaron Zornes Chief Research Officer The MDM Institute

Transcription

1 Avoiding the MDM SI Money Pit Aaron Zornes Chief Research Officer The MDM Institute

2 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

3 Why Focus on SI Cost Component? MDM projects typically incur substantial amt of systems integration in first months as businesses wire data sources into enterprise's data hub MDM Institute research finds G5000 enterprise spends average of US$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

4 MDM Phases Phase 0 tasks Scoping of Phase 1 Limited proof-ofconcept (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.

5 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

6 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)

7 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

8 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, geos, egos)) Partner's capabilities include their depth & available expertise

9 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)

10 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

11 How to Keep Staff from Being Shanghai ed Financial handcuffs Personal/corporate recognition Career tracks Contractual non-compete/ hands-off my people

12 MDM & DG SI Round-Up 1. Accenture 2. Adastra 3. Adjoined 4. Alliance Consulting 5. Arhis 6. ATG 7. Attevo 8. Atos Origin 9. Avanade 10. Back Office Associates 11. BearingPoint 12. Cambridge Technology Partners (Novell/CTP) 13. Camelot IDPro AG 14. Capgemini 15. Caritor 16. CGI-American Management Systems 17. Cignex 18. Cognizant 19. CSC 20. Deloitte Consulting 21. Detica 22. Diamond Cluster 23. EMC BusinessEdge Solutions 24. Evaxyx 25. Fujitsu (formerly DMR) 26. Harte-Hanks Data Services 27. Highpoint Solutions 28. Hitachi Consulting 29. HP/EDS/Knightsbridge 30. IBM Global Business Services 31. Infogain 32. Infosys 33. Logica 34. Lockheed Grumman 35. Marks Baughan & Co 36. Ness Technologies 37. Northgate 38. Patni 39. Perot Systems 40. Project Performance Corporation 41. SAIC 42. Satyam 43. SBS (Siemens Business Services) 44. Sierra Atlantic 45. Sogeti 46. Synergic Partners 47. Tata 48. Unisys 49. VIP Systems 50. Wipro

13 Field Report: Major SIs Accenture AIMS Atos Origin Cognizant CSC Deloitte EMC /BusinessEdge HP/Knightsbridge /EDS IBM GBS Infosys Oracle Pro Svcs Tata Wipro

14 Field Report: CDI, MDM & DG Specialists Arhis Attevo Back Office Associates Caritor Consology Diamond Mgmt & Technology Consultants Epsilon HCL HighPoint Systems LumenData Project Performance Corporation NorthGate Perficient Sierra Atlantic Sogeti Technologix Technology Solutions Company Unisys

15 Field Report: Major SIs with Minor Practices BearingPoint Capgemini CGI-American Management Systems Fair Isaac / Braun Consulting Fujitsu (Born, DMR) Hitachi Consulting Lockheed Grumman Mahindra Satyam Patni Perot Systems PwC SAIC SBS (Siemens Business Services)

16 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

17 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 divisionlevel (if at all)

18 Bottom Line: Avoiding the MDM SI Money Pit 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

19 Bottom Line: Avoiding the MDM SI Money Pit 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

20 Bottom Line: Avoiding the MDM SI Money Pit After initial development of a MDM system, SIs can help IT & Bus 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

21 Rx for SI Management Strategies Acknowledge that SIs are essential to success of majority of MDM 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

22 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 surveys & receive updated industry scorecard Receive unlimited MDM, CDI, & data governance consultation via telephone Independent, Authoritative, & Relevant

23 Q&A