Seven building blocks for MDM

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Seven building blocks for MDM

  1. 1. Gartner WebinarSeven Building Blocks for a SuccessfulMDM PlanPresenter: John Radcliffe, Research Vice President Upcoming Webinars: www.gartner.com/webinars Looking for On-Demand webinars? Check out our Replay Archives link on the left in www.gartner.com/webinarsThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved. 0
  2. 2. Welcome!Thank you for joining us on today’s Gartner webinar. 10,800 60,000 Client Clients Enterprises 100,000 5,500 IT End-User Benchmarks Inquiries 70% of 2.7 Million Fortune 1000 IT End-User 80% of Searches Global 500 750 Analysts 55 Serving Clients Conferences in 85 Countries 10,000 4,000 Media CIOs Inquiries 1
  3. 3. Seven Building Blocks for a Successful MDM Plan John Radcliffe 6th April 2011This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
  4. 4. Your MDM Program: Without a Good Plan, YouWill Probably Fail. What Do You Need to Do? STOP Questions You Need to Answer STOP in the First 100 Days Is there a What does the Does the business Can you measure clear vision? journey look like? see the value? success?Has governance What are the roles and Is it really just a Do we really want tobeen addressed? responsibilities? technology project? create a new silo?
  5. 5. Key Issues1. How will organizations create an MDM vision and strategy that enables the business vision and strategy?2. How will organizations address the governance, organizational and process challenges that are barriers to MDM success?3. How will organizations create the technology infrastructure necessary for MDM success?
  6. 6. The Seven Building Blocks of MDM:A Framework for Success Vision Strategy Metrics Information Governance Organization & Roles Information Life Cycle Enabling Infrastructure A Business-Driven, Holistic Approach to MDM
  7. 7. Create an MDM Vision That Enables YourOrganizations Business Vision Value Discipline Framework Questions to Answer: "Best Product" 1. What is the business Product Leadership vision of the organization? Product 2. Who owns that Differentiation business vision? Operational Customer 3. How would a focus on Competence Responsive MDM enable the business vision? 4. Who will provide Operational Customer executive-level Excellence Intimacy sponsorship? "Best Total Cost" "Best Total Solution"From "The Discipline of Market Leaders" by Treacy and WiersemaThe vision is the "what" and the "why." The strategy is the "how."
  8. 8. MDM Needs to Be Seen as Part ofEnterprise Information Management (EIM) Vision Strategy Metrics Information Governance Organization & Roles Information Life Cycle Enabling Infrastructure Master Analytic Other Social Content Data Data Data Data …? Master Data Management
  9. 9. What Will Shape Your MDM Strategy? Industry Data Domain Vectors of MDM Use Case Complexity Organization Implementation Styles
  10. 10. MDM Maturity Model: Helps You DetermineYour Current and "To Be" States Increasing Maturity of MDM Optimizing Managed MDM is the way we do things around Defined A unifying Developing vision here. No vision. OK, lets do emerges (with Initial Firefighting is Managing something (at high-level Non- the answer. master data the silo level). sponsorship). as an asset.existent No vision, but, yes, we Isolated, Silo-oriented Enterprise-Problem? do have a bottom-up Continuing to solutions. wide MDM What problem. initiatives. learn and program.problem? improve. 0 1 2 3 4 5 Level of MDM Maturity Note: MDM must be deep, as well as broad, to be mature.
  11. 11. What Is the "Current State" of Your MDMMaturity? What Is the "To Be" State? Level 1 Level 2 Level 3 Level 4 Level 5 Initial Developing Defined Managed OptimizingVision None Bottom-up Top down, but Unifying vision for Key enabler of initiatives only limited in vision cross-enterprise business MDM successStrategy None Reactive focus Proactive focus Consistent and Ongoing on firefighting on individual integrated investment and initiatives domains approach improvementMetrics No metrics Starting to Successful use of Using metrics to Basis of scheme for develop DQ metrics at the measure success management master data metrics domain level cross-domain and investmentGovernance No one has IT-led; lacking Domain-level Cross-enterprise Well-established responsibility business governance multidomain cross-enterprise involvement governance governanceOrganization No data Developing the Potentially strong Centralization or Well-established stewards culture of data team, but limited federation of data cross-enterprise stewardship in scope steward groups stewardshipProcesses Silo based — Starting to think Focus on data life Best practice Continue to applications or in terms of the cycle at domain shared across optimize the life functions data life cycle level the enterprise cycleTechnology Few or no data Data quality MDM solution Multidomain, but Integrated and quality tools tools, but no covering only one not integrated or consistent set of MDM solutions domain consistent capabilities Most Organizations Today
  12. 12. Creating the MDM Business Case: The Basis of Achieving Buy-In and Creating the Metrics Questions to Answer: Use Business Process Metrics to "Connect to the Business" 1. Do you have the business on board? Does it see value in the MDM program? Shareholders Bottom-Line Financial Results 2. How will MDM improve Metrics business processes and decision making? Feedback Executives Performance on Strategy Metrics 3. What business metrics are you linking the MDM Process Business Process Efficiency and program to? Owners Metrics Effectiveness Accuracy, 4. What is the current level Data Master Data Quality of those metrics, and whatStewards Timeliness Metrics does success look like? Stakeholder Level Focus
  13. 13. Understanding the MDM Process Life Cycle Is Key to Governance and Organization Author Store Pub/Sync Enrich Consume Archive B2B Collaborate Enrich Enrich Enrich Enrich Enrich Product Marketing Procurement Operations Logistics Sales ServiceDevelopment Sample Life Cycle for Product Master DataQuestions to Answer:1. What processes will you need to ensure the creation, management, publishing and leveraging of high-quality master data across your organization?2. What business processes will the master data life cycle processes support?
  14. 14. MDM Governance — Who Is Responsible,Accountable, Consulted and Informed? R&D CRM ERP and SCM Shared Services Order Fulfillment Transportation Manufacturing Contracting & Warehousing Procurement Management Product Life Functions Corporate Marketing Customer Sourcing Finance Service Pricing Cycle Sales HR Customer IT Common I R/A I C C I C C View Finance C I I I R/A C View Sales View C R/A I I I I C Fulfillment C I C I R/A I C View R = Responsible, A = Accountable, C = Consulted, I = InformedQuestions to Answer:1. How will you create and maintain an MDM governance organization that includes executive sponsorship, policymaking, decision arbitration and daily operational administration?2. How will the governance structure enforce its will?
  15. 15. MDM Organization: OrganizationalStructures, Roles and Responsibilities Organizational Structures, Roles and Questions to Answer: Responsibilities 1. Who creates and consumes master data? Executive-Level What are their roles? Sponsor Information Business 2. Do you have data Governance Board IT stewardship roles, and are they seen as a business MDM Team (Centralized or Distributed) responsibility? Data DataSteward StewardData StewardData MDM Infrastructure Team 3. What organizational Steward (Virtual) structure do you need to manage master data? Modeling/ App. System Security Metadata Dev./Integ. Mgmt. Privacy 4. How will you manage the Info. Architect Data Quality Monitoring Reporting change that comes with new ways of working?
  16. 16. MDM Infrastructure: What TechnologyInfrastructure Do You Need? A Tightly Integrated Set of Questions to Answer: Functional Capabilities 1. What technology infrastructure do you need to achieve your MDM goals? Information 2. How do you source this? Data Quality Model Integration and How does this fit into the Synchronization organizations overall MDM enterprise information architecture?Technology and Business Services 3. What architectural andArchitecture and Workflow implementation styles are appropriate for MDM? Manageability Performance, and Security Scalability and Availability
  17. 17. Gartner MDM Excellence Award Winner: Johnson & Johnson HCS More Better Faster Efficient Accurate Compliance Adaptation to Expected Fewer transaction with regulations market and OpCo Resources required processing: requiring controls changing to manage data and • Payments over data: requirements: fix errors: • Rebates • SOX • New OpCos & • Contracting • GxP Validated Companies • Finance • Disputes • New Products • Supply Chain • Rosters Mgmt. Customer • New Customers • IM • Customer Creation Service levels: • New Contracts Reliable reports and • Error • New Systems Fewer Write-Offs of performance metrics Prevention unresolved disputes Preventive data • Perfect Orders Identification and and deductions management: • Timely resolution of • Proactive Payments potential problems Problem Solving • End-to-End • Consistent Experience SourcingSource: Johnson & Johnson Health Care Systems OpCo = operating company
  18. 18. Recommendations  Vision: Create an MDM vision that enables the business vision.  Strategy: Define the scope, perform a maturity assessment and prioritize initiatives to create a road map.  Metrics*: Create an MDM metrics hierarchy during the business case development process.  Governance*: Create a business-led governance structure with agreed roles, responsibilities and decision rights.  Organization: Appoint data stewards for master data, build a multidisciplinary team and address change management issues.  Processes: Think in terms of the master data life cycle.  Technology Infrastructure: Buy or build the necessary capabilities. Choose the right implementation styles.* The most difficult
  19. 19. Related Gartner Research "The Seven Building Blocks of MDM: A Framework for Success" (G00168103) "Use the Gartner MDM Maturity Model to Create Your MDM Road Map" (G00169865) "Creating an MDM Vision, Strategy and Road Map" (G00165636) "Creating a Business Case for Master Data Management" (G00160270) "Governance of Master Data Starts With the Master Data Life Cycle" (G00160018)For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.
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  21. 21. Gartner Symposium/ITxpo: The worlds most importantgathering of CIOs and senior IT executives• Hundreds of analyst-led sessions, workshops, how-to clinics and more• Role-based tracks designed to address your key priorities and challenges• Immediately actionable take-aways—a clear action plan for the next 3, 6 and 12 months• Mastermind Interview Keynotes with industry leaders• ITxpo show floor with hundreds of top solution providers and exciting startupsAugust 22 – 24 Cape Town, South Africa November 7 – 10 Barcelona, SpainOctober 3 – 5 Tokyo, Japan November 14 – 17 Gold Coast, AustraliaOctober 16 – 20 Orlando, FL November 21 – 23 Mumbai, IndiaOctober 25 – 27 Sao Paulo, Brazil Visit gartner.com/symposium 20
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