DataDelta Master Data Management (MDM) Workshop

Session 7:
MDM Business Case & Funding

Aaron Zornes Ed Allburn

Chief Research Officer President & CEO
The CDI-MDM Institute DataDelta, Inc.
aaron.zornes@tcdii.com allburn@datadelta.com

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“Carrot vs Stick” Business Case Strategies

The Carrot: “Common Business Drivers & Benefits”

1. Catalyzes market leadership & dominance
2. Provides increased ROI by “leveraging / rationalizing existing
infrastructure”
3. Significantly increases shareholder value
4. Provides a disruptive technology for new business models
5. Enables compliance & regulatory reporting

The Stick: “We are behind all our major competitors…”

„ MDM is frequently identified as being so important for an on-going
competitive advantage that project teams are routinely forbidden to
discuss publicly (e.g.
(e g very difficult to get speakers for conferences,
conferences etc).
etc)

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Business Case Development

1. MDM business cases take substantial time to develop because they

mustt span the
th enterprise
t i
„ “Fast” business cases still require months of effort
„ Many
Man companies spend o
over
er one year
ear de
developing
eloping b
business
siness cases

2 Business
2. B i cases often
ft require
i iinvolvement
l t off major
j SISIs ffor credibility
dibilit
„ “Familiarity breeds contempt…”
„ Even a fast,
fast inexpensive “peer
peer review”
review by a respected SI can help

3 Exploit your current vendor & SI relationships

3.
„ Vendors & SIs can often provide business case templates & guidance
„ But you still know your business the best and will need to do most work

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Find the Pain

1. It’s easy to get everyone to agree that MDM is “important”

2. “Important” projects don’t win funding, only “urgent” projects do

3. “Urgent” projects address immediate, critical pain in the business process

4. Funding
g success = Finding
g the Pain
„ Vendor & SI sales reps are trained to find pain – use them
„ “Follow the money” to find the pain
„ Remember that “time is money”

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Build vs Buy

• Data structures & business Value of Integration

Exceeds Value of Build/Buy
processes mustt be
b supremelyl
flexible ETL EAI MDI

• Underlying IT infrastructure Value

V l off

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

EAI = enterprise application integration

ETL = extract-transform-load
MDI = master data integration
SOA = service-oriented architecture

Global competition mandates

a wide variety of new business styles
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Business Drivers 2008-09

• Just-in-time 21st century business

models
d l mandate
d t b both
th agility
ilit & Agile Enterprise
integration across enterprise to
– Provide higher profitability
Self-Directed
– Reduce operations costs
Service
– Increase accuracy of regulatory
compliance M&A Integrated
“Ready” Risk
• Emergence of “demand chains”
Mgmt
mandates synergetic approach across
both “party”
party & “product”
product master systems Co-opetition
Co opetition Rapid
via common business services NPI
“Demand”
• M&A as a business strategy Chains

Contemporary business strategies mandate flexible

infrastructure –propelling CDI-MDM into “Top 10” initiative
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CDI-MDM Catalyzes Market Leadership & Dominance

• Maximizes walletshare across product lines & BUs

– Upsell via sticky bundles
– New markets via cross sell to existing customer base
• Increases understanding of large customers by grouping all buying
orgs into B2B or B2C hierarchy
• Enables integrated customer analytics – i.e., profitability analysis,
lifetime value
• Enables “co-opetition” & electronic storefront models – e.g., B2B2C by
integrating partner data with internal data
• Protects brand integrity by increasing customer satisfaction due to
more focused marketing & service campaigns – e.g., “blended agent”
capability
bilit
• Actualizes “consistent customer treatment” by blending channels to
deliver common customer experiences
p

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CDI-MDM Provides Increased ROI by
“Leveraging
Leveraging Existing Infrastructure
Infrastructure”
• Enables integration of new & old channels – e.g., collections,
f d contact
fraud, t t centers
t with
ith ki
kiosk,k ATM
ATM, IVR & online
li self-service
lf i
• Minimizes architectural complexity to simplify application
solution design,
g , deployment,
p y , & maintenance
• Reduces number of interfaces between applications &
increasing reuse factor to save substantial integration costs
• I
Improves infrastructure
i f t t flexibility
fl ibilit andd control
t l to
t enhance
h overallll
system performance
• Accelerates ROI of enterprise
p CRM solutions
• Reduces overall project risk through increased flexibility &
centrally managed architecture

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CDI-MDM Significantly Increases Shareholder Value

• Drives costs of “dirty data” out of the info supply chain

• Accelerates revenue growth via more intelligent cross-sell & up-sell
enabled by complete understanding of customer (profile, accounts
& interactions) to leverage bundling opportunities
• Facilitates quick scales of economy in mergers & acquisitions
(M&A) – e.g., shortening customer, desktop, & billing integration
timeframes
f while providing scalability to support rapid assimilation
of new block of customers
• Measures,, manages g & grows
g “customer information” as a key y
corporate asset
• Drives fundamental operational savings & efficiencies – e.g., “once
& done
done” enterprise-wide
enterprise wide services for key customer processes such
as account changes (name, address)

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CDI-MDM Provides a Disruptive Technology
for New Business Models
• Enables self-directed customer experience for sales & service
• P i i
Provisions h
hyper-integrated
i t t d 21st
21 t century
t supply
l chain
h i – e.g.,
outsourced manufacturing, outsourced service (“he who owns master
reference data, dominates supply chain”)
• Automates customer transactions that flow across systems
• Enables contingency planning for future technologies – e.g.,
biometrics smartcards,
biometrics, smartcards etc.
etc
• Provides much more than “just another customer interface”
– 21st century business application development platform
– Service-oriented architecture – a.k.a, “first foray into SOA”
– Web services
– Integrated analytics
– Near real-time materialization

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CDI-MDM Enables Compliance & Regulatory Reporting

• Centrally manages privacy preferences for consistent rules of visibility &

entitlements
titl t
• Enhances “evergreening” of customer data accuracy – e.g., continuous
customer data improvement
p by
ypproviding
g 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
(SOX, BASEL II)
• Facilitates compliance with AML, OFAC, USA PATRIOT, et al

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Industry-Specific CDI-MDM Requirements

• Financial services providers (FSPs)

• Communications services providers (CSPs)
• Life sciences / pharmaceutical
• Government
• Healthcare
• High-technology manufacturing (t.b.d)
• Manufacturing (discrete, process)
• Retail (t.b.d)
• Hospitality (t.b.d)

Early adopters of CDI-MDM solutions include: FSPs, CSPs,

Pharma & High-Tech Manufacturing
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Session End

Questions & Answers

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