Win in the flat world Best Practices for a Successful MDM Implementation White Paper Abstract With the ever-increasing demand for cost optimization, faster product launches, more efficient compliance with regulations and differentiated business competitiveness, one of the biggest pain areas for enterprises is achieving consistent quality data. Leading to sub-optimal decision making, data misalignment within various systems is putting the brakes on organizations looking to accelerate growth. This paper outlines the experiential best practices that can help organizations improve the odds and realize business value quickly and predictably while planning and implementing an MDM solution to solve their data issues. For more information, contact email@example.comSep 2010
The Data Problem revenue growth from the current customer base, cost optimization, and regulatory compliance have all heightenedQuality data is a strategic asset for any organization. It awareness of the risks of using poor quality data.provides a strong and secure foundation to drive businessexecution and differentiated services. Clean and These important business initiatives offer a compellingconsistent data leads to better decision making and business case for improving data quality by deliveringprovides agility in a competitive marketplace. Quality data access to a single reference that represents the goldenalso leads to improved stakeholder relationships - be it record or Best Version of Truth - which can be achievedcustomers, suppliers or channel partners. with an efficient Master Data Management (MDM) system. MDM offers a central repository to manage business-critical data on an ongoing basis. It ensures synchronization with business intelligence and operational systems by integrating data in real time and empowering data stewards with the capabilities to properly govern data across the enterprise. , this MDM enables the organization to gain critical enterprise-wide insight about customers, products, partners and so on, and facilitates more confident decision making, accurate reporting and nimble action. How Can MDM Help? MDM is a deliberate initiative comprising of a set of methodologies, strategies, disciplines and technologies that Customer is owned by everyone and no one! enable organizations to acquire, cleanse, enrich, consolidate,In a traditional organization, critical data about customers, federate, and govern data across many disparate systems.products and partners is fragmented across myriad systems From an analytics perspective, organizations can employ- each independently trying to own and manage the data. quality data for reporting and compliance purposes, andAs business-critical data passes through the complex to optimize and enhance partner and channel engagement.enterprise, it may get locked up, duplicated, or worse, From an operations standpoint, organizations can build amisrepresented and misinterpreted, obscuring the facts and centralized hub representing the best version of the truth,compromising performance. The increasing clamor for faster providing an accurate, consistent and secure copy oftime-to-market for product introductions, incremental • I dont know if or when my loyalty programs and campaigns have been effective • Im not sure if I am meeting my regulatory compliance requirements Sounds • I look across my systems and find duplicate customers and dead products familiar? • My reports are never consistent for the same question • My sales channels have outdated product information • My new product introductions take forever My business competitiveness is jeopardized!
Customer and Compliance Putting the Best Foot Forward Partner Management Requirements Improved effectiveness • Channel Optimization • Global Regulatory With organizations across industry verticals making • Route-To-Market Compliance significant investments in MDM solutions, it is necessary Analytics • Internal Regulations • 360-degree View of • Effective Risk to recognize and act upon the best practices that help Customer Management • Reduced Duplicate organizations manage their MDM engagements Customer effectively. Communications ACQ These best practices are: CH I UIR ENR E Rear-View Check Reduced Reduced Active Data Governance Keep checking the TCO MDM manual effort Policies and procedures must be formalized benefits from one phase to the next CON E NS LID Architectural Consistency Business Case Think Big, Start Small SO A ATE CLE Technology and tools that Quantifiable and Phased Approach but fit the IT ecosystem Measurable ROI make MDM a Program Increase in Mergers and Account Revenue Acquisitions Active Vendor Support Get insight into upcoming Eye-on-the-ball Avoid scope creep of the • Increased Cross-Sell • Ability to view features, avoiding Enhanced analytics MDM program customization Opportunities consolidated assets/ • Increased Up-Sell resources Opportunities • Ability to have Continuous Collaboration Business operations • Increased uniform rules stakeholders to be involved Predictability of Profit • Reduced costs of throughout Margins failuremaster data to all systems and business users across lines Give Wings to Your Visionof business (LOBs). Not only must an organizations master data vision alignSome of the key benefits that organizations can gain by with its business vision, but it must also acknowledgeusing MDM include: master data as a critical asset. The most crucial questions • Identifying new opportunities to interact with to answer at kick-off are the Whys of an MDM initiative - customers and channel partners functionally, technically and financially. Identification of • Realizing improved effeciency across business critical success factors along with clear achievable processes objectives goes a long way in establishing early success. • Enhancing business intelligence, reporting and The business case needs to outline the Whys, Hows and analytic capabilities Whos of the MDM exercise clearly. A quantifiable and • Optimizing the manual effort required to manage measurable return on investment (ROI) is the cornerstone and use data across the enterprise of a successful initiative. Business pain points and data Stage Program Program Overall Requirement Product Definition Socialization Strategy Assessment Evaluation • Defining Engagement • Calculating Program • MDM and Data • To-be Conceptual • Requirement Parameters ROI over 3 -5 years – Governance Structure Architecture Documentation and • Identifying Critical This is the most Formulation • MDM Style – RFP Creation Activities Success Factors critical for MDM • Drivers/ Levers Transactional, • Vendor Scenario • Identifying Program Governance Identification and Registry or Formulation and CRP Candidates and programs Timelines Operational Demo Sponsors • Sponsor Approvals of • Establishing Baseline • Roadmap Strategy • Vendor Negotiation • Organizational MDM Business Case Processes and Guiding Principles and Selection Objective Metrics High-level Release Planning Transition Architecture
issues must be identified and prioritized in the business establish confidence in the initiative. For example, aftercase. It is also important to gain the buy-in and approval of implementing the customer domain MDM, ROI needs to beall key stakeholders to endorse the business case. checked in terms of increase in cross-sell, up-sell and the benefits that have accrued due to the quality of reportingThe strategy must be solidified and plans drawn keeping in available. If the MDM initiative involved the phasing out ofmind the To-be conceptual architecture and the MDM style legacy systems, the cost of change management must alsothat best fits the organizations need. Data Governance be captured while calculating the ROI.policy discussions must be set in motion within theorganization to get an enterprise-wide consensus. While Dont Forget, Its a Collaborative Exercisedoing all this, it is essential to keep sufficient lead time forproduct evaluations and vendor negotiations. MDM is a data governance, quality-oriented and business- driven initiative for master data assets, which usuallyThink Big. Start Small. Keep Your Eye on the Ball involves the adoption of new technology. Hence, MDM initiatives usually span various units across theMaster Data Assets organization. The success of the initiative depends on the(such as Customer, level of collaboration among the units coming together toProduct/ Item, Partner, provide input and designing the end-solution. This alsoOrganization, Supplier, provides the stakeholders a sense of continuousetc.) do not exist in involvement with the MDM program. It is also a good ideaisolation within an to have a change management anchor identified for theorganization. Hence, MDM program who can socialize the developments andthe potential to use happenings of the program to the stakeholders andquality data for all master data assets is tempting for many champion the cause of data awareness within theorganizations. However, it is imperative to focus only on organization.one sub-set of master data asset at a time. Thus, an MDMinitiative works best if it adopts a multi-phase approachtackling 1-2 entities per phase with the design and modelbeing scalable for the next phases. If you ignore the Logistics & Sales &scalability and future design considerations while building Supply Chain MarketingMDM solutions for different entities, it can lead to isolatedmaster data silos - recreating the problem that the MDM Changeenvisioned to solve. When it comes to MDM, its important Management Championsto think ahead and think big, but take baby steps to achievequick wins and gain the buy in for next steps. HR & Admin FinanceCheck Your Rear-View MirrorThe business case must articulate broadly the parametersand metrics needed to measure progress in quantifiableterms. After each phase of the MDM program, the Look at Architectural Consistency andorganization needs to measure the ROI. Since MDM Product Fitstakeholders belong to multiple departments within the Organizations need to do thorough due diligence of theorganization having diverse objectives, it is essential to have target architecture and the MDM-enabling technology ora pre-defined and objective MDM success criterion to
package. The architecture style needs to be discussed and A Define Scope forfirmed up while working on the business case. Data QualityThe various styles of architecture are Registry, Transaction F BHub and Co-Existence. Each style has its own set of pros Execute Data Measure Data Quality Qualityand cons along with cost impact (both in terms of Improvement Planinvestment and performance). Most organizations tend Data Qualityto opt for Co-existence as it gives them the edge to meet Program E Call their business objectives at an optimal cost. The MDM Develop Plan to Assess Business Address Data Impacttechnology solution supports both analytical and Qualityoperational processes in real-time/ batch in both the Co- Dexistence and Transaction architecture style. Hence, it is Perform Root Cause Analysisimportant that the technology blends with theorganizations overall IT architecture and ecosystem. and parcel of the daily job responsibilities of the users, Small wins at definite phases help increase rather than a one-off initiative. For any MDM initiative to MDM adoption succeed, it is imperative that effective data governance is supported by senior management.One of the key architectural points to note is the ServiceOriented Architecture (SOA) support by the MDM package. Ensure Active MDM Vendor SupportWhile evaluating MDM products and technologies, it is MDM is a rapidly growing area in terms of technology.essential to pick one that closely supports the universe of There are numerous product vendors who offer best-inuse cases from all master data assets to avoid custom class MDM products with broad features such as Match,development in implementation. Merge, Trust, Survivorship, Front-End Data Governance Graphical User Interface (GUI) and Integration with third-Embrace Data Governance party information agencies such as Experian. Once yourMDM is not a one-time technology implementation or a organization selects an MDM product that fits your ITone-time data cleansing exercise. Its primary purpose isto enable a Be-Clean-and-Stay-Clean data asset across Continuous Improvement is the key to anthe organization. The business owners within various effective MDM implementationdepartments and units must own the data along with thebusiness processes. The data governance process needs architecture and ecosystem, it is important to involve theto identify, measure, capture, and rectify data quality product vendor throughout the MDM program in anissues in the source system itself. To keep the wheels of oversight role and have regular requirements discussionthe MDM initiative well-oiled and turning, a formal model sessions. Each business has its own nuances and a wayto manage data as a strategic resource - comprising of to optimally meet its requirements. A regular session withwell-defined business rules, data stewardship, and data the product vendor can lead to mutually beneficial actioncontrol and compliance mechanisms - needs to be in place. points or product enhancements, minimizing customThe technology provides the tools to manage master data development. Organizations benefit immensely fromassets. However, the data governance model must be built partnering with vendors who have demonstrated priorto support analytical and operational processes. The MDM expertise.governance aspects of data need to be treated as part
C CONCLUSION Organizations need to take a holistic data management perspective. The right data management model helps the business immensely across a range of activities - from reporting, cross-selling and up-selling to decision making and compliance. The chances of an MDM initiative being successful increase significantly if organizations: • Consider MDM as a program within their foundational structure rather than a one-time project • Focus on ROI right from business case formulation through to post implementation • Ensure the continuous involvement of senior management • Provide an organizational structure to address governance issues at regular intervals
The Infosys Informatica MDM AdvantageAre you looking for: • Effective partner relationship management? • Increasing account revenue? • Reducing operational cost? • Managing consolidated resources post mergers and acquisitions? • Reducing duplicate customer communications? • Complying with regulations?The Informatica MDM Competency Centre at Infosys has been incubated with a vision to deliver technology-enabled businesssolutions around the Informatica MDM suite of products. The scope includes business process streamlining, master datagovernance, MDM package service, data quality, and business process outsourcing amongst others.Our end-to-end service offerings for successful delivery of MDM initiatives MDM VISION AND STRATEGY • Support strategic business initiatives • Business case, roadmap and data governance strategy definition • Program effectiveness assessment and change management BUSINESS PROCESS DEFINITION AND ALIGNMENT Business • As-is and To-be business processes mapping and Implementation capabilities rodamap assessment definition • Customer value analysis and customer lifecycle Informatica Vendor/product process maps implementation evaluation of master data hub core MDM hub • Business process harmonization and process Service Offerings automation TECHNOLOGY SOLUTION AND IMPLEMENTATION Governance Technology policy architecture • Product configuration and custom development definition definition • User experience design and development Master data flows and • Integration with back-end and legacy systems data models • Solution testing (system, performance, user acceptance) • Continual support and business process outsourcing