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Aaron Zornes Expert Testimony Avoiding The Si Money Pit

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The recent buzz around MDM is rivaled only by the intensity in which systems integrators have found MDM religion. MDM projects typically incur a substantial amount of systems integration in the first …

The recent buzz around MDM is rivaled only by the intensity in which systems integrators have found MDM religion. MDM projects typically incur a substantial amount of systems integration in the first 12-24 months as businesses wire up their data sources into the enterprise's customer data hub. Given the substantial investment businesses undertake with their SI partners, this is an area that must be given scrutiny - not only in an effort to contain costs, but to insure the success of this vital infrastructure investment. This presentation will discuss:
• Determining the evaluation criteria for selecting SI partners for your MDM projects
• Identifying which SIs are market leaders in your industry and your chosen software technologies
• Managing the SI relationship from phase zero and POCs all the way through to systems integration

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  • 1. Avoiding the MDM SI “Money Pit” Aaron Zornes Chief Research Officer The MDM Institute aaron.zornes@tcdii.com +1 650.743.2278
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. “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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. How to Leverage the MDM Institute Kick start the “MDM evaluation process” Attend public workshop Bring workshop on-site Fine tune in-process MDM strategies Due diligence on reference checking & contract details Stay ahead of curve via MDM Business Council Re-qualify every 6 months via survey Receive MDM Alerts & access to Web-hosted research Increase your knowledge & negotiating strengths via MDM Advisory Council Membership Participate in monthly email surveys & receive updated industry scorecard Receive unlimited MDM, CDI, & data governance consultation via telephone “Independent, Authoritative, & Relevant” © 2009 The MDM Institute The-MDM-Institute.com
  • 23. Q&A