Avoiding the
MDM SI “Money Pit”
Aaron Zornes
Chief Research Officer
The MDM Institute
aaron.zornes@tcdii.com +1 650.743.2278

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
© 2009 The MDM Institute The-MDM-Institute.com

Why Focus on “SI” Cost Component?
MDM projects typically incur substantial amt of
systems integration in first 12-24 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
© 2009 The MDM Institute The-MDM-Institute.com

MDM Phases
Phase 0 tasks Phase 2
Scoping of Phase 1 Going enterprise-wide
Limited proof-of- with single master entity,
concept (POC) e.g. customer, product, supplier,
etc.
Requirements capture Phase 2+
ROI projection
Going enterprise-wide
Vendor & product with more than one
evaluation master entity, e.g. customer,
Phase 1 product, &/or supplier, etc.
Limited deployment Phase 3
within single business Extending master data
division or department extra-enterprise-wide
for single entity, e.g. with more than one
customer or product master entity, e.g. customer,
product, &/or business partners,
e.g. strategic sourcing supply
chain, outsourced call centers,
etc.
© 2009 The MDM Institute The-MDM-Institute.com

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 …
© 2009 The MDM Institute The-MDM-Institute.com

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)
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

“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
© 2009 The MDM Institute The-MDM-Institute.com

Understanding Your SI’s Business Model
Typical SI Team
Significant challenge for SI is to Drawn From Various
determine mega vendor &/or Other Practice Teams
best-of-breed/vertical niche • Enterprise architecture
planning, esp. SOA experts
MDM software vendors with • Enterprise data modeling
which to align • Legacy app reengineering
• Data conversion & application
Each MDM vendor has migration
• Data quality
Vertical industry – e.g., banking or • EAI middleware & BPM
pharmaceutical experts.
• Analytics & ETL experts
Corporate horizontal functional • Testing & QA
specialization – e.g., B2B hierarchy • Systems infrastructure mgmt
rationalization) • Performance engineering
• ROI & cost-model generation
Mind share & brand recognition by (business value articulation)
virtue of early successes
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

How to Keep Staff from
Being Shanghai’ed
Financial handcuffs
Personal/corporate recognition
Career tracks
Contractual non-compete/”hands-off my people”
© 2009 The MDM Institute The-MDM-Institute.com

MDM & DG SI Round-Up
1. Accenture 26. Harte-Hanks Data Services
2. Adastra 27. Highpoint Solutions
3. Adjoined 28. Hitachi Consulting
4. Alliance Consulting 29. HP/EDS/Knightsbridge
5. Arhis 30. IBM Global Business Services
6. ATG 31. Infogain
7. Attevo 32. Infosys
8. Atos Origin 33. Logica
9. Avanade 34. Lockheed Grumman
10. Back Office Associates 35. Marks Baughan & Co
11. BearingPoint 36. Ness Technologies
12. Cambridge Technology Partners (Novell/CTP) 37. Northgate
13. Camelot – IDPro AG 38. Patni
14. Capgemini 39. Perot Systems
15. Caritor 40. Project Performance Corporation
16. CGI-American Management Systems 41. SAIC
17. Cignex 42. Satyam
18. Cognizant 43. SBS (Siemens Business Services)
19. CSC 44. Sierra Atlantic
20. Deloitte Consulting 45. Sogeti
21. Detica 46. Synergic Partners
22. Diamond Cluster 47. Tata
23. EMC BusinessEdge Solutions 48. Unisys
24. Evaxyx 49. VIP Systems
25. Fujitsu (formerly DMR) 50. Wipro
© 2009 The MDM Institute The-MDM-Institute.com

Field Report: Major SIs
Accenture AIMS HP/Knightsbridge /EDS
Atos Origin IBM GBS
Cognizant Infosys
CSC Oracle Pro Svcs
Deloitte Tata
EMC /BusinessEdge Wipro
© 2009 The MDM Institute The-MDM-Institute.com

Field Report: CDI, MDM & DG Specialists
Arhis Project Performance
Attevo Corporation
Back Office Associates NorthGate
Caritor Perficient
Consology Sierra Atlantic
Diamond Mgmt & Sogeti
Technology Consultants Technologix
Epsilon Technology Solutions
HCL Company
HighPoint Systems Unisys
LumenData
© 2009 The MDM Institute The-MDM-Institute.com

Field Report: Major SIs with Minor Practices
BearingPoint Lockheed Grumman
Capgemini Mahindra Satyam
CGI-American Patni
Management Systems Perot Systems
Fair Isaac / Braun PwC
Consulting
SAIC
Fujitsu (Born, DMR)
SBS (Siemens Business
Hitachi Consulting Services)
© 2009 The MDM Institute The-MDM-Institute.com

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 …
© 2009 The MDM Institute The-MDM-Institute.com

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 division-
level (if at all)
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

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
© 2009 The MDM Institute The-MDM-Institute.com

How to Leverage the MDM Institute
Kick start the “MDM evaluation process”
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Bring workshop on-site
Fine tune in-process MDM strategies
Due diligence on reference checking & contract details
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strengths via MDM Advisory Council Membership
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© 2009 The MDM Institute The-MDM-Institute.com

Q&A