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Session 2:
MDM Case Studies & Business Benefits
Value
must enable new business Integrating
Applications
models
• Policies/process flows must Value of
Building
integrate in ways previously Applications
problematic Monolithic Client/Server SOA/
Time
Apps Apps Web Services
• Improve cross
cross-selling
selling & campaign lift
– “Operationalize” marketing data
– Leverage service interactions into sales opportunities by following
up on current campaigns
• Regulatory compliance
– Providing operational view of customer into existing data
warehouse for Basel II compliance
– Abilityy to store p
privacy
yppreferences at a true enterprise
p level
Challenge is to move
mo e to portfolio-level
po tfolio le el integ
integration
ation despite the
politics & technology inertia
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 17
Credit Card Issuer MDM Scorecard:
“Top
Top 55” Business Drivers & Technology Challenges
Ins e s need to mo
Insurers move e to “high to
touch”
ch” se
service
ice model wherein
he ein
near real-time channel integration is critical
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 19
Insurance MDM Scorecard:
“Top
Top 5
5” Business Drivers & Technology Challenges
DWL Customer
82%
ncial Servic
Sanchez CRM
CDI Ven
Finan
3%
2% ISI Synchronous
% Responses
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 21
Communications Services Provider Requirements
DWL Customer
16%
dshare
15%
endor Mind
3%
Telec
% Responses
Corporate alignment
61%
Increase customer satisfaction and retention
75%
Increased operational efficiencies
92% M k dominance
Market d i
100%
Source: MDM Institute 1H2005 MarketPulse™ Survey
of 12 North American CSP’s IT Organizations
g
% Responses
For strategic M&A, “Market dominance” cited twice as often as next highest
ranked “Increased pprofitability”,
y , “Increased operational
p efficiencies” &
“Corporate alignment”
63%
Systematize analytics to enable LTV mktg
18%
Source: MDM Institute 1H2005 MarketPulse™ Survey
of 12 North American CSP’s IT Organizations
% Responses
50% D t b
Database/data
/d t model
d l iintegration
t ti
Scalability
42%
1
SOA for business services infrastructure
17%
15%
% Responses
Wholesalers /
Speciality
Distributors
CDI needed that not only provides excellent support for sales reps,
but also makes customer info available to marketing, R&D & supply
chain functions
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Increase Customer/Physician Acquisition, Retention
& Profitability via Closed Loop Marketing
• Enable creation of segment-specific drug detailing aids
• Deliver custom detailing to physicians thru field sales channel
• Collect responses to product messages at point of customer interaction
• Analyze responses to further refine marketing campaigns based on
real-time feedback
• Design & manage sophisticated campaigns, incl medical events &
mailings
• Leverage digital packaging (RFID, ECM) for compliance monitoring & supply chain
optimi ation
optimization
• Optimize consumer self-service
– Apply advanced technologies to expedite info sharing via guided search, co-browsing,
etc.
t
• Helps consumers benefit from full range of info about health issue they’re researching
• Enables pharma to deliver targeted info to customers at precise moment needed or requested
– Examples: medical education; disease mgmt; patient compliance; product awareness
• Drive & manage regulatory compliance across diverse legal domains
• Prepare for increased outsourcing of both commoditized & specialized functions
• Exploit strategic opportunities created by bioinformatics/ nanotechnology
• Leverage re-importation trends
SAP Sales
AMA SMG flow
Some sources Contracting Targets
to ODS & DW
DEA
STL
ODS CARS
Some sourcesOSPare
not integrated
IMS
Events
Siebel
Call
Center Web
DW
Some sources flow Dendrite
straight to the DW
Wh l
Wholesaler
l F d Govt
Fed G t
External Source
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 36
Contemporary Pharma “Info Supply Chain”
HIN
SAP Sales
AMA SMG
Contracting
g Targets
g
DEA
STL CARS
CDI
Registry/ OSP
IMS Hub
Siebel Events
Front Office
External Source
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 37
Top 5 Mindshare within LifeSci/Pharma
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
% Responses
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 38
Government MDM Requirements
3% MetaMatrix Server
0% 1% 2% 3% 4% 5% 6%
% Responses
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 42
Why are Healthcare Providers/Payers Adopting CDI?
75%
Business Drivers
Increase profitability
100%
%R
Responses
92% architecture
100%
Provide extreme scalability in data
1
volumes
CDI Tec
100%
% Responses
• F
Focus on in-the-trenches,
i th t h hands-on
h d project
j t execution
ti
• Avoided traditional
traditional, academic case study interviews
• Asked “What kinds of surprises & challenges did you face, and
how did you overcome them?”
Asked “What
What kinds of surprises & challenges did you face, and how did
you overcome them?” – in areas such as:
• Business Case
• Data Quality
• Data Governance
• SIs & consultants can add strong value even at this initial stage by
enhancing structure & credibility
• Trust,
ust, but verify,
e y, “trusted”
t usted tthird-party
d pa ty data sou
sources
ces
– Extensive data profiling is again warranted
– Ensure vendor’s definitions map to your definitions
• “Total employees” – by subsidiary or total hierarchy?
• “Total revenue” – by subsidiary or total hierarchy?
• But in general,
general the more complex the environment (# data siloes
siloes,
# LOB users) the more important to have formal Data Goverance
to resolve conflicts
• Sophisticated
p metadata management
g
– More than just “mapping fields in Excel”
– More than just a “web wrapper around Access”
– More Sr Mgmt is more often recognizing the value of modern
modern,
sophisticated metadata tools in the business case
Case Study:
A Major International Financial Institution
Background
• 2006 started CDI project with $7M budget
• 32 global customer data sources
• Encouraging results half-way through
• Realized opportunity to address other problems
• Decided
D id d tto “t
“take
k thi
this tto the
th nextt llevel”
l”
• Use full data governance and full data management
• Opportunity to save lots more money
Business case:
• Analyzed all 2007/08 data projects
• Determined cost of siloed approach of $22M
• Estimated could deliver for $14M over 2 years via CDI-MDM
• 1 “data champion” developed case in just 2 months
– Full
Full-time
time time job
– get the numbers, crunch them, validate them, get rates from vendors, create
ppts, etc.
– Had to press for numbers – used sponsor name for meeting leverage “X will
be facilitating the meeting for CIO…”
– Some people would panic at thought of their local data silo eventually going
away
“Oh
Oh God, let me give you an example of the kinds of things we were
finding:”
“So the process they were doing locally could have caused a major
impact to the tax group and nobody knew about it and the dollar
amount put on top of that could have been huge in fines.”
fines.
Steering committee
• One of the first things done
• Defined
D fi d the
h organization
i i as one off the
h fi
first kkey goals
l
• Started meeting even before program 100% formalized
• Established full escalation hierarchy
• Value in understanding:
– how good or how bad the data was
– how good or how bad the processes were around that data,
– how inconsistent people within different groups and different systems treat
customer data
• True top down type governance – exec sponsor(s) making sure that
peoplel understand
d t d th they’re
’ committed itt d
“We couldn’t do this from the bottom up, it would never work. There are too
many people in the organization over the last couple of years where the
culture has been:
‘I am a local business unit. I can dictate the way I run my business’”
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 63
Surprises & Lessons Learned
• End of month/qtr/yr – no longer top priority, but still had to keep moving
forward
• Can’t leave meetings without having some kind of a path for getting
results and accountability
accountability.
Case Study:
A (different) Major International Financial Institution
Background
• Replacing 2 old, legacy Customer Information Files (CIFs)
– Operational CIF - at the individual level
– Analytical CIF (Marketing) – at the household level
Business Case
• Strong Sr Mgmt support allowed faster, general business case –
detailed, long-term ROI wasn’t required
“Phase
Phase 1 only has one source system,
system the legacy CIF people are used to
using . . .”
• Still h
have h
had
d some struggles
t l on jjustt matching
t hi & merging
i
– Resolved with weekly all-day meetings over a couple months
• Executive
ecut e suppo
supportt iss critical
c t ca
– It’s not a 12-24 month project and then your done.
– It’s a 10-20 year investment
• Lay out strategy long before you start anything else (several people
over 3-4 months))
• Defering
D f i complexity
l it tto Ph
Phase 2 (householding,
(h h ldi augmentation,
t ti
analytical support, etc.)
– Greatly helped maintain focus & delivery deadlines
– “one of the best things we’ve done in hindsight”
• SIs may want to do things the quickest and easiest way which might
not be the best way for us long term
Case Study:
A (3rd) Major International Financial Institution
Background:
• Already had a centralized database
• Loading a lot of data making broadly avail to the org
• Originally only planned a simple “Data Steward” program
• But quickly realized that there was a lack of governance throughout
tthe
e organization
o ga at o o on data
Business Case:
• (some) Sr Mgmt realized need to transition from being just a “data
steward team” to providing data governance for the entire
organization
g
• Used “grass root” support of middle-mgmt peers to help convince
their bosses
• “We identified some major issues where the same field in the
database is being use for four or five purposes… “
• “if you really want quality data – it’s going to take years, it’s an
iterative process
process.
“The great thing is the way we’ve set up our governance structure
b
because it goes tto a single
i l person and d th
thatt person can make
k th
the
decision rather than trying to get together 40 bodies”
“You’re always at risk of losing that smart guy who knows how the
system works and what each one of those elements meant. As soon
as that guy walks out the door
door, you lose all of that history
history.”
DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc. 76
Case Study:
y
Case Study:
A Major Health Insurance Company
Background
• Started as a “Data Warehousing” project
• Evolved into an enterprise “Single Customer View” project
• Early results were disappointing & hurt credibility
• Uncovered need to resolve internal priority conflicts
• 350+ users depend
d d on results
lt every d
day
Business case:
• Fundamental issue of “same” reports from different departments
providing different numbers
• Informal business rules could change “on-the-fly” within departments, so
even reports from the same department may not agree month-to-month
• Started as a focused Marketing effort to prove value for taking the next
step at the enterprise level
• Driven by Director of Business Intelligence
• Implemented over a series of 3 project to incrementally achieve
integration via “transition hubs”
“Shoot
Shoot the Messenger
Messenger”
“Why
Why do you think there are problems when we’re
we re doing fine on the front
end?”
“When you have million dollar claims coming through, it just takes one
error to have a major impact”
impact
“Jane resolved 10 p
problems while the new g
guyy created 5 new ones”