Conference keynote aaron zornes (san francisco 2010) v1 print

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Overview of key trends for MDM and Data Governance for 2010 and beyond

Care to see who has attended #MDM SUMMITs the past 2 years? http://tcdii.com/mondo_attendees.html

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  • All mega vendors will have an MDM story Therefore what is role of BOB vendors Role of mega vendors How does SAP shop address CUSTOMER data How does Oracle-Siebel shop handle PRODUCT data? Different entity type hubs, different brands will be the norm, not the exception … in G5000 enterprise
  • All mega vendors will have an MDM story TDAT is simply the most recent example Therefore what is role of BOB vendors Role of mega vendors How does SAP shop address CUSTOMER data How does Oracle-Siebel shop handle PRODUCT data? Different entity type hubs, different brands will be the norm, not the exception … in G5000 enterprise
  • A Global Perspective Trusted by 3,300+ Enterprises Worldwide Our client base includes emerging and global IT end-user, vendor, and public-sector enterprises More than 250 Analysts/Consultants Average 13 of years IT experience Former CxOs who understand boardroom challenges Former Big X consultants who understand first-hand the ins and outs of large strategic IT projects Former IT executives who understand back- and front-office issues Former IT vendors who understand the markets Fun Facts 25% of META Group’s research staff have over 20 years of experience 40% were directors and above 10% were at the CxO level 20% come from the Fortune 500
  • Conference keynote aaron zornes (san francisco 2010) v1 print

    1. 1. MDM 2.0 Scenario: The Convergence of MDM & Data Governance 5 th Annual MDM SUMMIT San Francisco 2010 Chairman’s Keynote Aaron Zornes Chief Research Officer The MDM Institute [email_address] +1 650.743.2278
    2. 2. Who Are You? © 2010 The MDM Institute The-MDM-Institute.com <ul><li>Bio-Rad Laboratories </li></ul><ul><li>Blue Shield of California </li></ul><ul><li>Computer Associates </li></ul><ul><li>Capital One Financial Services </li></ul><ul><li>Charles Schwab </li></ul><ul><li>Cisco Systems </li></ul><ul><li>City National Bank </li></ul><ul><li>CVE </li></ul><ul><li>Dawn Food Products </li></ul><ul><li>Erie Insurance </li></ul><ul><li>Federal Reserve Bank of San Francisco </li></ul><ul><li>Fireman’s Fund </li></ul><ul><li>Polycom </li></ul><ul><li>Qwest </li></ul><ul><li>Radiant Logic </li></ul><ul><li>Safeway </li></ul><ul><li>Symantec </li></ul><ul><li>Synechron </li></ul><ul><li>Sysiphus </li></ul><ul><li>Toyota Financial Services </li></ul><ul><li>U.S. Foodservices </li></ul><ul><li>Unilever </li></ul><ul><li>Universal Technical Institute </li></ul><ul><li>Visa </li></ul><ul><li>VMWare </li></ul><ul><li>VSP Vision Care </li></ul><ul><li>Warner Home Video </li></ul><ul><li>Wells Fargo </li></ul><ul><li>Fiserv </li></ul><ul><li>Franklin Templeton Investments </li></ul><ul><li>Gap Inc. </li></ul><ul><li>GE Energy </li></ul><ul><li>Hill Physicians </li></ul><ul><li>Juniper Networks </li></ul><ul><li>Kaiser Permanente </li></ul><ul><li>Kimpton </li></ul><ul><li>Macys </li></ul><ul><li>macys.com </li></ul><ul><li>MassMutual Financial Group </li></ul><ul><li>NetApp </li></ul><ul><li>Novation </li></ul><ul><li>openwave systems </li></ul><ul><li>AAA NorCal, NV & UT </li></ul><ul><li>Abbott Labs </li></ul><ul><li>Ace Insurance Group </li></ul><ul><li>Actelion Pharmaceutical </li></ul><ul><li>Adobe Systems </li></ul><ul><li>Agilent Technologies </li></ul><ul><li>Allianz of America IT </li></ul><ul><li>American Family Insurance </li></ul><ul><li>Applied Materials </li></ul><ul><li>Autodesk </li></ul><ul><li>Bank of the West </li></ul><ul><li>Bare Escentuals </li></ul><ul><li>Bell Helicopter Textron </li></ul>
    3. 3. “ Thank You” to Our Sponsors © 2010 The MDM Institute The-MDM-Institute.com
    4. 4. Enterprise Master Data Management 1 Market Review & Forecast <ul><li>Forrester </li></ul><ul><ul><li>“ MDM anticipated growth to over US$2.2B by 2010” </li></ul></ul><ul><li>Gartner </li></ul><ul><ul><li>“ MDM for customer master will hit ~ US$1B in S/W revenue by 2012” </li></ul></ul><ul><ul><li>“ With PIM & other domains, it could be over US$2B” </li></ul></ul><ul><li>IDC </li></ul><ul><ul><li>“ Market for w/w MDM Software & Services to US$7.9 billion in 2009, with CAG of 16.6% over 2006-2011 forecast period” </li></ul></ul><ul><li>MDM Institute </li></ul><ul><ul><li>“ Overall MDM market (customer & product hubs, plus systems implementation services) to grow to US$2 billion by 2012” </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com Clearly, enterprise MDM is a major IT initiative being undertaken by large number of market-leading Global 5000 size enterprises
    5. 5. Recent Uptake of MDM Solutions © 2010 The MDM Institute The-MDM-Institute.com Global 5000 <ul><ul><li>Shanghai GM </li></ul></ul><ul><ul><li>Savings Bank (Sperbank) </li></ul></ul><ul><ul><li>Shoppers Drug Mart </li></ul></ul><ul><ul><li>State Bank of India </li></ul></ul><ul><ul><li>State of Illinois </li></ul></ul><ul><ul><li>TDK </li></ul></ul><ul><ul><li>Telecom Egypt </li></ul></ul><ul><ul><li>Telstra </li></ul></ul><ul><ul><li>VISA </li></ul></ul><ul><ul><li>Volkswagen </li></ul></ul><ul><ul><li>Walgreens </li></ul></ul><ul><ul><li>Wendy’s </li></ul></ul><ul><ul><li>Yellow Book </li></ul></ul><ul><ul><li>United Airlines </li></ul></ul><ul><ul><li>800-FLOWERS </li></ul></ul><ul><ul><li>Bank Central Asia </li></ul></ul><ul><ul><li>Bank Negara Indonesia </li></ul></ul><ul><ul><li>Bank of Commerce </li></ul></ul><ul><ul><li>Bank Tenaga Negara </li></ul></ul><ul><ul><li>Barclays </li></ul></ul><ul><ul><li>Belgacom </li></ul></ul><ul><ul><li>BONY Mellon </li></ul></ul><ul><ul><li>Cadbury </li></ul></ul><ul><ul><li>Carrefour </li></ul></ul><ul><ul><li>Clear Channel </li></ul></ul><ul><ul><li>Cummins </li></ul></ul><ul><ul><li>Daimler </li></ul></ul><ul><ul><li>DHL </li></ul></ul><ul><ul><li>Dubai World </li></ul></ul><ul><ul><li>FedEx </li></ul></ul><ul><ul><li>Fidelity </li></ul></ul><ul><ul><li>Ford Motor Co. </li></ul></ul><ul><ul><li>Genworth </li></ul></ul><ul><ul><li>HBOS/LLTSB </li></ul></ul><ul><ul><li>JC Penney </li></ul></ul><ul><ul><li>Johnson Controls </li></ul></ul><ul><ul><li>Marriott </li></ul></ul><ul><ul><li>MD Anderson Cancer Center </li></ul></ul><ul><ul><li>Millennium Pharmaceuticals </li></ul></ul><ul><ul><li>Mt. Sinai Hospital </li></ul></ul><ul><ul><li>National Bank of Canada </li></ul></ul><ul><ul><li>Network Rail </li></ul></ul><ul><ul><li>Norway Post </li></ul></ul><ul><ul><li>Pepsi Americas </li></ul></ul><ul><ul><li>SaskTel </li></ul></ul>
    6. 6. Key MDM Issues for 2010-11 <ul><li>Provisioning substantive amount of “master data governance” </li></ul><ul><li>Partnering with a faithful service provider </li></ul><ul><li>Betting on odds-on favorite MDM solution (brand/architecture/platform) </li></ul>© 2010 The MDM Institute The-MDM-Institute.com MDM 2.0 scenario: convergence of MDM & data governance
    7. 7. MDM Milestones <ul><li>Market maturation </li></ul><ul><li>Market momentum </li></ul><ul><li>Market consolidation </li></ul><ul><li>Budgets/skills </li></ul><ul><li>Data governance </li></ul><ul><li>MDM convergence </li></ul><ul><li>Architecture & data models </li></ul><ul><li>Identity resolution </li></ul><ul><li>Party data quality </li></ul><ul><li>Enterprise search/semantics </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of emerging MDM vendor landscape
    8. 8. Key MDM Issues for 2010-11 <ul><li>Provisioning substantive “master data governance” </li></ul><ul><li>Partnering with a faithful service provider </li></ul><ul><li>Betting on odds-on favorite MDM solution (brand/architecture/platform) </li></ul>© 2010 The MDM Institute The-MDM-Institute.com
    9. 9. Master Data Governance Challenges <ul><li>Break down functional & organizational stovepipes </li></ul><ul><li>Integrate processes across the enterprise – including corporate technology, all LOBs, functional areas & geographic regions </li></ul><ul><li>Engage all levels of management & adjudicate between centralized vs. decentralized data stewardship </li></ul><ul><li>Evolve key stakeholders from “data ownership” to “data stewardship” </li></ul><ul><li>Overcome lack of process integration in current “DG for MDM” offerings </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing oppty to take more strategic view of enterprise data governance
    10. 10. Data Governance Strategic Planning Assumption <ul><li>During 2010, most enterprises will struggle with cross-enterprise DG scope as they initially focus on customer, vendor, or product; enterprise-level DG that includes entire master data lifecycle will be mandated as core phase 0/1 deliverable of large-scale MDM projects </li></ul><ul><li>Through 2011, major SIs & MDM boutiques will focus on productizing DG frameworks while MDM software providers struggle to link governance process with process hub technologies; concurrently G5000 enterprises struggle to evolve enterprise DG in cost-effective & practical way from “passive” to “active” DG modes </li></ul><ul><li>By 2012-13, vendor MDM solutions will finally move from “passive-aggressive DG” mode to “active DG” </li></ul>© 2010 The MDM Institute The-MDM-Institute.com MDM MILESTONE Data governance will remain problematic during 2010-11
    11. 11. “ Master Data Governance” Market – Chaos or Confusion? <ul><li>Data governance (DG) is vital to success of MDM projects – both initially & ongoing </li></ul><ul><li>During 2010-11, Global 5000 enterprises will increasingly mandate that 'no MDM program be funded without pre-requisite DG framework’ </li></ul><ul><li>Moreover, in late 2010 market-leading vendors will launch own active DG frameworks to take back lucrative DG business currently defaulting to SIs </li></ul><ul><li>Corollary is few MDM vendors will be able to market their solutions without integrated active DG capability – one that embeds a workflow engine with metadata support for both structured & unstructured info </li></ul><ul><li>Where will that leave the SIs – as partners, competitors or both? </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Given lack of DG solutions from MDM platform vendors, SIs have had market largely to themselves; 2010 operative word = “coop-etition”
    12. 12. © 2010 The MDM Institute The-MDM-Institute.com
    13. 13. MDM Institute’s Data Governance Maturity Model <ul><li>“ Anarchy” (basic) – Application-centric approach; meets business needs only on project-specific basis </li></ul><ul><li>“ Feudalism” (foundational) – IT policy-driven standardization on technology & methods; common usage of tools & procedures across projects </li></ul><ul><li>“ Monarchy” (advanced) – business-driven, rationalized data with data & metadata actively shared in production across sources </li></ul><ul><li>“ Federalism” (distinctive) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Source: MDM Institute survey of 100+ Global 5000 IT organizations Fin Svc providers are leading the way – in spend & discipline; technology can only achieve so much as organization must be prepared to continually adapt & treat data as enterprise asset above project level; data needs to be an asset not a liability.
    14. 14. Rosetta Stone of DG Maturity Models © 2010 The MDM Institute The-MDM-Institute.com The MDM Institute Common inquiry is “How do I get from Level 2 to Level 4 or 5?” IBM Data Governance Council DataFlux/SAS Gartner Research Stage Name I Anarchy II Feudalism III Monarchy IV Federalism Stage Name I Initial II Managed III Defined IV Quantitatively Managed V Optimizing Stage Name 1 Undisciplined 2 Reactive 3 Proactive 4 Governed Stage Name 0 Unaware 1 Aware 2 Reactive 3 Proactive 4 Managed 5 Effective
    15. 15. MDM Institute’s Master Data Governance Survey © 2010 The MDM Institute The-MDM-Institute.com 50% enterprise-level perspective; 25% LOB/divisional; Survey Participants – CISOs, CIOs, CTOs, Enterprise Architects, VPs & Directors of IT = pre-qualified senior IT executives – not random IT personnel or “Starbucks card collectors”
    16. 16. Master Data Governance “Top 10” Evaluation Criteria <ul><ul><li>Methodology </li></ul></ul><ul><ul><li>Data exploration/profiling </li></ul></ul><ul><ul><li>Model management </li></ul></ul><ul><ul><li>Rules management </li></ul></ul><ul><ul><li>Decision rights management </li></ul></ul><ul><ul><li>MDM hub integration </li></ul></ul><ul><ul><li>Enterprise application integration </li></ul></ul><ul><ul><li>E2E data lifecycle support </li></ul></ul><ul><ul><li>Integrated metrics </li></ul></ul><ul><ul><li>Vendor integrity/viability </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com “ Master Data Governance” fracas will escalate as MDM vendors rush to usurp SIs; during 2010-11, MDM vendors increasingly unable to sell MDM w/out integrated DG
    17. 17. Overall Critique of Existing DG Capabilities <ul><li>Mismatch of applying project-oriented methodology rather than asset-focused methodology </li></ul><ul><li>Methodologies missing the asset aspect of data … cost, decaying value, ROI for cleansing data, etc. </li></ul><ul><li>Frameworks not addressing “community” aspect of shared asset development – e.g. wikis for global corporate business vocabulary, etc. </li></ul><ul><li>Current DG solutions do not provide systemic rigor nor E2E lifecycle support </li></ul>© 2010 The MDM Institute The-MDM-Institute.com “ (Integrated) Master Data Governance” market is a vacuum … nature hates a vacuum
    18. 18. Master Data Governance Bottom Line <ul><li>Don’t settle for “passive” / downstream data governance </li></ul><ul><li>Demand “active” / upstream enterprise data governance </li></ul><ul><li>Don’t expect “data governance maturity assessments” to provide road map out of anarchy </li></ul><ul><li>Realize that “data steward consoles” are more than demo-ware for headless apps … but substantially less than enterprise data governance </li></ul><ul><li>Acknowledge that vendor viability matters </li></ul><ul><li>Prepare to spend US$ 250-500K for initial DG solution </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Enterprise data governance & MDM are codependent/interdependent … invest upfront in data governance for sustainability & ROI of MDM programs … “go early, go governance”
    19. 19. Key MDM Issues for 2010-11 <ul><li>Provisioning substantive “master data governance” </li></ul><ul><li>Partnering with a faithful service provider </li></ul><ul><li>Betting on odds-on favorite MDM solution (brand/architecture/platform) </li></ul>© 2010 The MDM Institute The-MDM-Institute.com
    20. 20. Budgets & Skills Strategic Planning Assumption <ul><li>During 2010, G5000 size enterprises will spend US$ 1M for MDM software, with addt’l US$ 3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators </li></ul><ul><li>Throughout 2011, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & individuals with data governance experience outstrip market supply; concurrently, SIs will fill void in classic style by baiting & switching veterans for rookies </li></ul><ul><li>By 2012-13, market will stabilize as enterprises react by training & protecting their own MDM staff with specific product & project expertise; until then, enterprises will struggle with re-skilling same resources multiple times as emerging/evolving data management technologies mature (e.g., Fusion, NetWeaver, …) </li></ul>© 2010 The MDM Institute The-MDM-Institute.com MDM MILESTONE
    21. 21. Why Focus on SI Cost Component? <ul><li>MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub & stage their DG processes </li></ul><ul><li>MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs) </li></ul><ul><li>Recent buzz around MDM is rivaled only by intensity with which systems integrators have &quot;found MDM religion&quot; </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only to contain costs, but also to insure success of this vital investment
    22. 22. Understanding SI Phases of MDM Lifecycle <ul><li>Phase 0 </li></ul><ul><ul><li>Scoping of Phase 1 </li></ul></ul><ul><ul><li>Limited proof-of-concept (POC) </li></ul></ul><ul><ul><li>Requirements capture </li></ul></ul><ul><ul><li>ROI projection </li></ul></ul><ul><ul><li>Vendor & product evaluation </li></ul></ul><ul><li>Phase 1 </li></ul><ul><ul><li>Limited deployment within single business division or department for single entity, e.g. customer or product </li></ul></ul><ul><li>Phase 2 </li></ul><ul><ul><li>Going enterprise-wide with single master entity, e.g. customer, product, supplier, etc. </li></ul></ul><ul><li>Phase 2+ </li></ul><ul><ul><li>Going enterprise-wide with >1 master entity, e.g. customer, product, &/or supplier, etc. </li></ul></ul><ul><li>Phase 3 </li></ul><ul><ul><li>Extending master data extra-enterprise-wide with >1 master entity, e.g. customer, product, &/or business partners, e.g. strategic sourcing supply chain, outsourced call centers, etc. </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com Typically more than one SI partner is used for the E2E lifecycle of an MDM program … not just as primes & subs but also due to change out mid-phase due to failure to deliver
    23. 23. “ Top 5” Technical Evaluation Criteria for MDM Services Provider <ul><li>#1 – Extensible data governance methodology & accelerators </li></ul><ul><li>#2 – Industry-specific data model experience & ETL mappings </li></ul><ul><li>#3 – SOA architecture experience & accelerators </li></ul><ul><li>#4 – MDM product experience </li></ul><ul><li>#5 – MDM project experience (industry, geo, ego) </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Partner's capabilities *must* include their data governance depth & available expertise
    24. 24. MDM “Value Add” of SIs <ul><li>SIs are often necessary to sell C-level execs </li></ul><ul><ul><li>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) </li></ul></ul><ul><li>SIs are needed to coordinate IT & Business </li></ul><ul><ul><li>Readiness & maturity </li></ul></ul><ul><ul><li>Plan for IT organizational change mgmt to support MDM efforts </li></ul></ul><ul><ul><li>Work with business leadership to design & refine the “future state” business processes associated with new MDM commitments </li></ul></ul><ul><li>SIs are needed to help transform IT organizations </li></ul><ul><ul><li>To a greater degree than traditional app dev initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative </li></ul></ul><ul><li>After initial MDM program development, SIs can help IT & Business by facilitating </li></ul><ul><ul><li>Ongoing participation in development of business rules & resolution of master data match/merge issues </li></ul></ul><ul><ul><li>Ongoing commitment to update both apps & business processes to leverage core data stored in MDM hub </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com Multiple potential DG areas to leverage SI assistance
    25. 25. MDM & DG Readiness Assessment of Sis Summary Findings <ul><li>For MDM life cycle during previous 18 months, average of 2.8 consultancy firms were engaged; for DG life cycle an average of 1.2 consultancies; this shows frequency which enterprises need to “change out” SIs when program falters due to lack of experience, leadership, etc. on part of consultancies </li></ul><ul><li>95% of IT execs strongly believe “ Systems integrators are essential to success of majority of MDM projects &quot; & 72% strongly agree that “ Systems integrators are often necessary to sell C-level executives ” </li></ul>© 2010 The MDM Institute The-MDM-Institute.com
    26. 26. “ Top 5” Areas Enterprises Look to SIs for Assistance © 2010 The MDM Institute The-MDM-Institute.com 75 Global 5000 Size Enterprises (Oct-Nov 2009)
    27. 27. BOTTOM LINE: Service Providers <ul><li>Acknowledge that SIs are essential to success of majority of DG-driven MDM programs </li></ul><ul><li>Recognize that incumbent SIs are no longer so </li></ul><ul><li>Identify which SIs are market leaders in your industry & your chosen software technologies </li></ul><ul><li>Proactively manage key IT positions </li></ul><ul><li>Leverage SIs for their “value add” </li></ul>© 2010 The MDM Institute The-MDM-Institute.com 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
    28. 28. Key MDM Issues for 2010-11 <ul><li>Provisioning substantive “master data governance” </li></ul><ul><li>Partnering with a faithful service provider </li></ul><ul><li>Betting on odds-on favorite MDM solution (brand/architecture/platform) </li></ul><ul><ul><li>Deciding between “tactical/registry short term ROI” vs. “strategic/operational MDM long term ROI” </li></ul></ul><ul><ul><li>Opting for PIM-flavored MDM or MDM-flavored PIM </li></ul></ul><ul><ul><li>Rationalizing between 3 rd gen MDM hub investments vs. more advanced, in-the-works semantic/MDM hybrid infrastructure </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com
    29. 29. MDM Convergence Strategic Planning Assumption © 2010 The MDM Institute The-MDM-Institute.com <ul><li>During 2010, party & product data interdependencies will quickly broaden MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum </li></ul><ul><li>Through 2011, G5000 enterprises will broaden their MDM business initiatives from single use case, single entity to multi-style, multi-entity </li></ul><ul><li>By 2012-13, enterprises without long-term multi-entity MDM strategy run ironic risk of building “MDM silos” </li></ul>SOA-based multi-entity MDM manages master data domains (customers, accounts, products, etc.) with significant impact on most important business processes
    30. 30. Why “Multi-Entity MDM”? Why Now? <ul><li>Future direction is to grow all reference masters into operational masters </li></ul><ul><li>Future MDM landscape </li></ul><ul><ul><li>Multiple data domains </li></ul></ul><ul><ul><li>Multiple relationships </li></ul></ul><ul><ul><li>Multiple usage styles – analytical, operational & collaborative </li></ul></ul><ul><ul><li>Linkage between operational data domains using collaborative or analytical MDM </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com Enterprise MDM = multi-entity MDM – such epiphany enables the enterprise to avoid “random acts of MDM” Pricing Policy Hub Pricing Reference Master CDI Hub Location Master Customer Registry PIM Data Hub Evolutionary Multi-Entity MDM Entity-Specific MDM Data Marts Myopic Strategic
    31. 31. Enterprise Master Data Management: Market Review & Forecast for 2009-12 <ul><li>Rapid growth of MDM market into mid-market as well as across industries & geographies </li></ul><ul><li>Steady evolution away from data-centric hubs into application hubs </li></ul><ul><li>Elemental movement towards “enterprise MDM” in multiple phases </li></ul><ul><li>Futile dogmatic resistance is fading against the power of multiples </li></ul><ul><li>Inexorable shift to formal data governance structures </li></ul>© 2010 The MDM Institute The-MDM-Institute.com The market for MDM solutions is significantly & quickly expanding – across geographies, industries, & price points “ Top Five” Report Findings by the MDM Institute
    32. 32. Solidified Requirements for 3 rd Generation MDM Solutions <ul><li>SOA/shared services architecture with evolution to “process hubs” </li></ul><ul><li>Sophisticated hierarchy management </li></ul><ul><li>High-performance identity management </li></ul><ul><li>Data governance-ready framework </li></ul><ul><li>Persisted, registry & hybrid architecture flexibility </li></ul>© 2010 The MDM Institute The-MDM-Institute.com MDM has morphed from “early adopter IT project” to “Global 5000 business strategy”; phase 2 MDM deployments are already fusing party & product domains MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    33. 33. Evolving Requirements for 4 th Generation MDM Solutions <ul><li>Multi-entity MDM </li></ul><ul><li>Multiple master versions of customer – legal/geo boundaries effect </li></ul><ul><li>Process/policy hub architecture </li></ul><ul><li>Unstructured information support </li></ul><ul><li>Integrated data governance </li></ul><ul><li>Enterprise search </li></ul>© 2010 The MDM Institute The-MDM-Institute.com G5000 enterprises’ business strategies mandate long term, strategic “multi-entity MDM” – in turn enabled by policy-driven data governance MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    34. 34. Business Value of Multi-Entity MDM <ul><li>With 4 th generation MDM platform, an enterprise will be better able to </li></ul><ul><ul><li>Identify & provide differentiated service to its most valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers </li></ul></ul><ul><ul><li>Introduce new products & product bundles more quickly across more channels to reduce the cost of New Product Introduction (NPI) </li></ul></ul><ul><ul><li>Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes </li></ul></ul>© 2010 The MDM Institute The-MDM-Institute.com Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
    35. 35. MDM Solution (brand/architecture/platform) Bottom Line <ul><li>Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes </li></ul><ul><li>Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade </li></ul><ul><li>Begin MDM projects focused on either customer-centricity or product/service optimization </li></ul><ul><li>Plan for multi-entity MDM juggernaut evolving from “early adopter” into “competitive business strategy” </li></ul><ul><li>Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
    36. 36. Editorial <ul><li>Enterprise MDM is a major IT initiative underway at large # of market-leading Global 5000 enterprises </li></ul><ul><li>Most enterprises & solutions vendors are finding near-term success with single-faceted approach inherent with 3 rd generation MDM solutions </li></ul><ul><li>Myopically focusing solely on single data domain & usage style is detrimental to longer term business strategy of integrating supply, demand, & info chains across both intra- & extra-enterprise boundaries </li></ul><ul><li>Coming to market during 2010 are 4 th generation multi-entity MDM solutions which address requirement for multiple domains & styles as well as roles of consumers </li></ul><ul><li>“ Data governance for MDM” remains the “X” factor </li></ul>© 2010 The MDM Institute The-MDM-Institute.com Learn from MDM early adopters & prepare now for “Enterprise MDM” to increase business value & lower costs
    37. 37. MDM 2.0 BOTTOM LINE <ul><li>Invest in DG for long-term sustainability & ROI of MDM </li></ul><ul><li>Acknowledge currently “master data governance” does not exist as integrated solution </li></ul><ul><ul><li>Primarily processes with custom workflow </li></ul></ul><ul><ul><li>One-way export to MDM hub (if any) </li></ul></ul><ul><ul><li>Minimal support for “enterprise” decision rights </li></ul></ul><ul><li>Plan for most MDM vendors to deliver DG workflow engine during next 6-12 months with metadata engine for both structured & unstructured </li></ul><ul><li>Recognize mega vendors (IBM, Oracle) focused to deliver capability in 2H2010 – with resultant SI partner chaos </li></ul><ul><li>Manage SI partner to integration roadmap with MDM platform of choice & to avoid “brain drain” </li></ul>© 2010 The MDM Institute The-MDM-Institute.com
    38. 38. MDM SUMMIT™ Conference Series <ul><li>MDM SUMMIT San Francisco 2010 San Francisco Hyatt Regency | June 2-3 </li></ul><ul><li>MDM SUMMIT Canada 2010 Hyatt Regency Toronto | June 13-14, 2010 </li></ul><ul><li>MDM SUMMIT Americas 2010 Crowne Plaza Times Square | October 3-5, 2010 </li></ul><ul><li>MDM SUMMIT Singapore2010 Stamford Resort | October 14-15, 2010 </li></ul><ul><li>MDM SUMMIT Iberia 2010 Madrid| October 2010 </li></ul><ul><li>MDM SUMMIT Europe 2011 London | March 21-23, 2011 </li></ul><ul><li>MDM SUMMIT Asia-Pacific 2011 Sydney | March 28-30, 2011 </li></ul><ul><li>MDM SUMMIT Tokyo 2011 Tokyo| May 2011 </li></ul>© 2010 The MDM Institute The-MDM-Institute.com
    39. 39. About the MDM Institute <ul><li>Founded 2004 to focus on MDM business drivers & technology challenges </li></ul><ul><li>MDM Advisory Council™ of 100 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects </li></ul><ul><li>MDM Business Council™ website access & email support to 18,000+ members </li></ul><ul><li>MDM Road Map & Milestones™ annual strategic planning assumptions </li></ul><ul><li>MDM Alert™ bi-weekly newsletter </li></ul><ul><li>MDM Market Pulse™ monthly surveys </li></ul><ul><li>MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas </li></ul><ul><li>MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Madrid, Singapore, Sydney, Toronto, & Tokyo </li></ul>© 2010 The MDM Institute The-MDM-Institute.com “ Independent, Authoritative, & Relevant” <ul><li>About Aaron Zornes </li></ul><ul><li>Most quoted industry analyst authority on topics of MDM & CDI </li></ul><ul><li>Founder & Chief Research Officer of the MDM Institute </li></ul><ul><li>Conference chairman for DM Review’s MDM SUMMIT conference series </li></ul><ul><li>Founded & ran META Group’s largest research practice for 14 years </li></ul><ul><li>M.S. in Management Information Systems from University of Arizona </li></ul>
    40. 40. MDM Institute Advisory Council <ul><li>3M </li></ul><ul><li>Autotrader </li></ul><ul><li>Bell Canada </li></ul><ul><li>Caterpillar </li></ul><ul><li>Cisco Systems </li></ul><ul><li>Citizens Communications </li></ul><ul><li>COUNTRY Financials </li></ul><ul><li>Educational Testing Svcs </li></ul><ul><li>EMC </li></ul><ul><li>GE Healthcare </li></ul><ul><li>Honeywell </li></ul><ul><li>Information Handling Services </li></ul><ul><li>Intuit </li></ul><ul><li>Loblaw </li></ul><ul><li>McKesson </li></ul><ul><li>Medtronic </li></ul>© 2010 The MDM Institute The-MDM-Institute.com 100 organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads Representative Members <ul><li>Microsoft </li></ul><ul><li>Motorola </li></ul><ul><li>National Australia Bank </li></ul><ul><li>Nationwide Insurance </li></ul><ul><li>Norwegian Cruise Lines </li></ul><ul><li>Novartis </li></ul><ul><li>Polycom </li></ul><ul><li>Roche Labs </li></ul><ul><li>Rogers Communications </li></ul><ul><li>Scholastic </li></ul><ul><li>Stryker </li></ul><ul><li>SunTrust </li></ul><ul><li>Sutter Health </li></ul><ul><li>Westpac </li></ul><ul><li>Weyerhaeuser </li></ul><ul><li>Woolworths </li></ul>
    41. 41. © 2010 The MDM Institute The-MDM-Institute.com Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com a.k.a. www.tcdii.com

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