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MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
MDM Institute: Why is Reference data mission critical now?
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MDM Institute: Why is Reference data mission critical now?

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Learn why market-leading enterprises are focusing on RDM in this exclusive webinar from MDM research analyst Aaron Zornes …

Learn why market-leading enterprises are focusing on RDM in this exclusive webinar from MDM research analyst Aaron Zornes

More than 55% of large enterprises surveyed by the MDM Institute are planning on implementing reference data management (RDM) in the next 18 months.

Why is RDM mission critical today?
How does RDM differ from (how is it similar to) MDM?
What are the top business drivers for RDM?
What are the “top 10” technical evaluation criteria?
Where are most organizations focusing their RDM efforts?
Aaron Zornes, Chief Research Officer of the MDM Institute, answers these questions and more when he reveals findings from the first ever RDM market study based on a 1Q2014 survey of 75+ global 5000 size enterprises.

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  • 1. Why is Reference Data “Mission Critical” Now? Aaron Zornes Chief Research Officer The MDM Institute Conrad Chuang Director Product Marketing Orchestra Networks
  • 2. We help organizations manage their most important data Reference Data Things Parties Relationships Master & Reference Data
  • 3. Support over the entire life cycle of your master & reference data MeasureIntegrateManageControlDesignDefine Business Glossary Data and workflow modeling Data quality and validation Workflow -driven data & hierarchy management Integration and distribution DQ KPIs and dashboards + Full version control on models and data + Fine-grained role-based security
  • 4. Orchestra Networks has wide array of customers
  • 5. Agenda n  Why is RDM mission critical today? n  How does RDM differ from (how is it similar to) MDM? n  What are the top business drivers for RDM? n  What are the “top 10” technical evaluation criteria? n  Where are most organizations focusing their RDM efforts? n  Q&A © 2014 The MDM Institute The-MDM-Institute.com
  • 6. What is Reference Data? Reference data =“coded, semantically stable, relatively static data sets shared by multiple constituencies” (people, systems, & other master data domains) Customers Product Industry Sales Person Geo Cost / Revenue Acct Business Unit ID In the logical view, private & public forms of reference data connect domains & application; consistent values (& semantics) required for multi-domain views & hierarchies © 2014 The MDM Institute The-MDM-Institute.com
  • 7. n  Errors in reference data will ripple outwards affecting quality of master data in each domain, which in turn affects quality in all dependent transactional systems n  RDM needed in both operational & analytical MDM use cases where capability often used to provide attributes, hierarchies & KPIs Why Reference Data? Why Now? Central role of reference data means RDM becoming “starting point” for many organizations planning MDM & DG Systemic Failure Inconsistent Reporting Transaction Failure Regulatory Non-compliance © 2014 The MDM Institute The-MDM-Institute.com
  • 8. Social Data TXN Data Master Data Enterprise data relies upon clean & consistent reference data. Reference Data © 2014 The MDM Institute The-MDM-Institute.com Many analyst inquiries cite poor reference data a leading cause of errors in the organization
  • 9. Reference Data Categories Multi-Domain RDM Use Cases Real-Time / Transactional RDM Use Cases Public (External) Countries & Subdivisions (FIPS10) Currencies (ISO 4217) Time Zones (ISO 8601) Industry Classification (NAICS, ISIC) Security Prices SWIFT BIC Codes (Payments) ICD-9/10 Codes (Healthcare) ACORD/ISO Codes (Insurance) Private (Internal) Legal Entities Chart of Accounts Organizations Employees (i.e., much of HR & Finance Data) Reference data required for transaction processing Semi- Private? (Shared) Customized Public Reference Standards (e.g. customized D&B) Shared Private Data (Finance) © 2014 The MDM Institute The-MDM-Institute.com RDM programs need to support multiple domains (kinds) of reference data to avoid RDM silos.
  • 10. FIRST POLL © 2014 The MDM Institute The-MDM-Institute.com
  • 11. Multi-Domain MDM Multidomain RDM Vendor RDM Approach Indicates Level of Multi-Domain Ability Customers Product RDM RDM Two main approaches to RDM = Synchronization-driven (buy lots of ETL) vs. Multidomain (buy commercial RDM). Synchronization-driven requires $$$ for data integration & lacks semantic stability/governance of hub approach. Suppliers RDM Synchronization-Centric Private RD RDM ETL/ DI Private Public Customers Product Suppliers RDM Hub or Multi-Domain MDM Implementation © 2014 The MDM Institute The-MDM-Institute.com
  • 12. Critique of Current Approaches for Multidomain Reference Data RDM Solution Drawback Recommendation Custom-built, manual solutions Heavy TCO burden Avoid unless reference data demands are truly unique Spreadsheets Difficult to govern, secure, version, & audit; no modeling, poor hierarchy management Distribute data in spreadsheets; govern data in RDM solution Repurpose hierarchy management solution (MSFT MDS, ORCL DRM) Poor cross-domain support, no classification mapping, few enterprise integration options Seek out multi-domain RDM solution with hierarchy management Customize existing domain-specific MDM (Customer or Product) Rudimentary data modeling, lifecycle mgmt capabilities, & governance features (esp. authoring & workflow) Use multi-domain RDM solution to maintain connections & govern/update into CDI & PIM via data services ERP / Enterprise Application Limited governance, versioning, distribution; also reference data customized use in app may have limited appeal in other systems Master in external platform. RDM can be used to govern baseline set, versions and adaptations Real-time / industry- specific RDM Premium priced R/T RDM solutions do not represent good economic sense Leverage R/T RDM solutions for R/T use cases (trading, claims processing, payments) © 2014 The MDM Institute The-MDM-Institute.com
  • 13. “Top 10” RDM Technical Evaluation Criteria 1.  Administration of diverse reference data types 2.  Ability to map reference data 3.  Management of reference data sets 4.  Architecture/performance 5.  Hierarchy management over reference data sets 6.  Connectivity/integration 7.  Import & export 8.  Versioning support 9.  Security & access control 10.  E2E lifecycle management Coming to market are RDM solutions characterized by multiple, diverse levels of integration w/ market-dominant MDM hubs as well as repackagings of existing mid-market MDM solutions – HOW TO EVALUATE? © 2014 The MDM Institute The-MDM-Institute.com
  • 14. “Administration of Diverse Reference Data Types” From R. Thompson,/Credit Suisse, “Multidomain Enterprise Reference Data,” 7th Annual MDM & Data Governance Summit New York 2013 Private Ref Data Public Ref Data RDM solution should support a wide mix of data structures from name:value pairs to hierarchies (see criteria #5) RDM Top 10 Eval Criteria #1 © 2014 The MDM Institute The-MDM-Institute.com
  • 15. FINANCE LOCATIONS “Ability to Map Reference Data” – pt. 1 (cross-domain mapping) Issuing Country (ISO3166) Name ISO 4217 Code USA US Dollar USD CHN Yuan Renminbi CNY JPN Japanese Yen JPY Official Currency ISO3166 USD ASM USD IOT USD ECU USD SLV USD GUM USD HTI USD MHL USD FSM USD MNP USD PLW USD PAN USD PRI USD TLS USD TCA USD USA USD VIR CNY CHN JPY JPN ISO 3166 Code Name USA United States of America CHN People’s Republic of China JPN Japan ASM American Samoa IOT British India Ocean Terr. ECU Ecuador SLV El Salvador GUM Guam HTI Haiti MHL Marshall Islands FSM Micronesia MNP Northern Mariana Islands PLW Palau PAN Panama PRI Puerto Rico TLS East Timor TCA Turks and Caicos Islands VIR Virgin Islands RDM solutions need to preserve values & mappings between reference data sets – both in domain & across domains RDM Top 10 Eval Criteria #2 LOCATION&FINANCE © 2014 The MDM Institute The-MDM-Institute.com
  • 16. 2013 VERSION 2007 VERSION “Ability to Map Reference Data” – pt. 2 (temporal referential integrity) 2013 NAICS Description 311224 Soybean and Other Oilseed Processing 221114 Solar Electric Power Generation 221115 Wind Electric Power Generation 221116 Geothermal Electric Power Generation 221117 Biomass Electric Power Generation 221118 Other Electric Power Generation 2007 NAICS Description 311222 Soybean Processing 311223 Other Oilseed Processing 221119 Other Electric Power Generation - solar electric power generation RDM solution needs to maintain links between versions, creating a migration path between versions of reference data … “Crosswalks” are important for understanding how something changed MERGE SPLIT RDM Top 10 Eval Criteria #2 © 2014 The MDM Institute The-MDM-Institute.com
  • 17. RACI Tasks User R Update sales hierarchies Rogers R Change industry classifications Romanova A Approve hierarchies and effective dates Stark A Approve industry classifications Banner A Approve merge into effective dated Fury “Mgmt of Reference Data Sets” (Governance Workflows) RDM Top 10 Eval Criteria #3 An RDM solution needs to support governance workflows … includes defining: responsible & accountable parties (including systems), permissions & area of responsibility for each party (field, instance, container level), how parties interact/tasks & auditing/history… Sequence of Interactions Permissions Responsibilities © 2014 The MDM Institute The-MDM-Institute.com
  • 18. “Hierarchy Management Over Reference Data Sets” RDM solution should harness relationships between reference data sets & existing party or thing data to create hierarchies SIC Codes Customer & SIC Code Mapping ICD-10 Codes Active Ingredients & ICD-10 Mappin Active Ingredients & Product Mappi Viewing customers by industry classification Viewing drugs by Active Ingredient interactions & ICD-10 Codes RDM Top 10 Eval Criteria #5 © 2014 The MDM Institute The-MDM-Institute.com
  • 19. EMEA OPS DEU Cost Ctr FRA Cost Ctr APLA OPS TUR Cost Ctr JPN Cost Ctr MEX Cost Ctr NA OPS CAN Cost Ctr USA Cost Ctr “Versioning Support” (a.k.a. time travel) EMEA OPS TUR Cost Ctr DEU Cost Ctr FRA Cost Ctr APLA OPS JPN Cost Ctr MEX Cost Ctr NA OPS CAN Cost Ctr USA Cost Ctr Cost Centers (As-Of 2013 Q2) EMEA OPS DEU Cost Ctr FRA Cost Ctr AP OPS TUR Cost Ctr JPN Cost Ctr CALA OPS MEX Cost Ctr NA OPS CAN Cost Ctr USA Cost Ctr RDM solution needs versioning & “as of” / effective dating to support recall of reference data values, relationships or hierarchies (versioning has *major* implications for analytics/ BI!) Cost Centers (Current) Cost Centers (Effective 2013 Q1) RDM Top 10 Eval Criteria #8 © 2014 The MDM Institute The-MDM-Institute.com
  • 20. 2014 RDM Market Survey Results (Overview) Aaron Zornes Chief Research Officer The MDM Institute aaron.zornes@tcdii.com www.linkedin.com/in/aaronzornes @azornes +1 650.743.2278
  • 21. SECOND POLL © 2014 The MDM Institute The-MDM-Institute.com
  • 22. Agenda n  Survey methodology n  Attitudes about RDM & current plans n  Trending key features n  Vendor rankings © 2014 The MDM Institute The-MDM-Institute.com
  • 23. Partial List of Survey Respondents Amgen CIT Fireman’s Fund Insurance Sabre ANZ Bank Citi Mortgage Grant Thornton Spectrum Health Aspen Re Citibank Hellmann Worldwide Logistics Standard Bank South Africa Bank Audi Sal Citizens Financial Group IBM (CIO Office) State Farm Automobile Insurance Bank of Montreal COLT Technology Services Insurance Commission of British Columbia TD Ameritrade Barclays Credit Suisse Louis Dreyfus Commodities The Bank of New York Mellon Blue Cross Blue Shield Association Cummins Nippur Volvo AB BPI France Dept of Homeland Security/CBP NJ Office of Information Technology WellPoint British American Tobacco DNB ASA OP-Pohjola Group World Vision Cargill Electronic Arts Royal Mail Group Yorkshire Building Society Carolinas Healthcare Fidelity Investments Royal Melbourne Institute of Technology Zurich Insurance © 2014 The MDM Institute The-MDM-Institute.com RDM is a key business initiative in some of the world’s largest companies!
  • 24. >50% of Respondents Plan to Invest in RDM Within 2 Years MYTH: There’s no interest in RDM Attendees to summits have been requesting RDM sessions, Megavendors (and more) have RDM products … and now most of the responding organizations are planning on investing in RDM? © 2014 The MDM Institute The-MDM-Institute.com
  • 25. <50% of Respondents = Financial Services Organizations MYTH: RDM is only for financial services & finance departments Surveys & analyst inquiry load show increasing interest across the board © 2014 The MDM Institute The-MDM-Institute.com
  • 26. Accountability for Multi-Domain RDM Centers at the Enterprise Level MYTH: RDM projects LOB-centric or departmental projects RDM is gaining enterprise level relevance & are often directly coupled to business users © 2014 The MDM Institute The-MDM-Institute.com
  • 27. Multi-Domain RDM Projects Have Enterprise-Appropriate Budgets MYTH: RDM is small scale, small investment Multi-phase RDM programs are in multi-million USD range … Wide range in investment levels reflect where respondents are in RDM journey © 2014 The MDM Institute The-MDM-Institute.com
  • 28. Interest in RDM to Support Transactional & Operational Enterprise Applications MYTH: RDM is an isolated program Considerable interest in integrating enterprise applications with RDM … Analyst inquiry load shows interest in tying analytical enterprise applications (BI/Big Data) to RDM © 2014 The MDM Institute The-MDM-Institute.com
  • 29. Interest in RDM to Support Traditional CDI, PIM & Other MDM Programs MYTH: RDM is an isolated program, Part II Considerable interest in RDM to support traditional MDM initiatives in Customer & Product (Why maintain country codes everywhere?) © 2014 The MDM Institute The-MDM-Institute.com
  • 30. Categories of Data Managed by RDM Multi-Domain RDM Use Cases Real-Time / Transactional RDM Use Cases Public (External) Private (Internal) Semi-Private (Shared) 88% 59% 80% 12% 2% RDM programs are not only managing public forms of reference data, but are focused on public & private in equal measure … also interest in using RDM to syndicate data services internally © 2014 The MDM Institute The-MDM-Institute.com
  • 31. THIRD POLL © 2014 The MDM Institute The-MDM-Institute.com
  • 32. Top 5 RDM Business Drivers Reporting, Reconciliation & Regulatory Compliance = key business reasons for pursuing RDM (Bad reference data = bad reports) © 2014 The MDM Institute The-MDM-Institute.com
  • 33. Top 3 RDM IT Drivers n  Developing standard metadata management to support enterprise application integration— e.g., common, standard data domain definitions n  Providing common reporting dimensions to support analytics across departments/LOBs, application systems, data marts & data warehouses n  Providing common RDM support services to support transactional application integration Reporting & reconciliation are also top IT drivers for RDM … Goal for IT teams =providing source of consistent & accurate reference data to organization & applications © 2014 The MDM Institute The-MDM-Institute.com
  • 34. What are the Top Cost Drivers in RDM Projects? Plan to benchmark development time (screens, BPM/workflow, models) as part of PoC … high development time = high TCO! Also key cost factor = vendor licensing models © 2014 The MDM Institute The-MDM-Institute.com
  • 35. Top Evaluation Requirements for Commercial RDM Solutions (Ranked Order) Multi-domain requirements (cross-domain, inter-temporal), hierarchy management, governance & versioning = top requirements Rank   Table Data   1   Ability to map reference data — e.g., between multiple domains, between time periods or versions of reference data   2   Management of reference data sets — e.g., implementing governance workflows   3   Hierarchy management over sets of reference data   4   Administration of reference data types — e.g., handling public, semi-private & private   4   Versioning support — e.g., support for four main version types: as-of, effective, current, proposed/hypothetical   6   Connectivity & integration with other enterprise applications or MDM platforms   7   Architecture/performance — e.g., enterprise scalable, Cloud-based deployment/ licensing option   7   Import & export   9   E2E lifecycle management — e.g., onboarding, managing, retiring, redacting reference data   10   Security & access control — e.g., fine grained/field level permissioning for create, read, update, & delete of reference data   © 2014 The MDM Institute The-MDM-Institute.com
  • 36. Teams Using Commercial RDM Solutions = Most Satisfied Tools  vs.  Sa*sfac*on   Effec*ve   Program   Planning     Ineffec*ve   Program   Not   Planning   Commercial  RDM  solu0on   23%   6%   10%   0%   Exis0ng  MDM  pla<orm   3%   0%   3%   3%   Custom-­‐built  solu0ons  or   spreadsheets   0%   23%   13%   0%   ERP  or  other  Enterprise   Applica0on   0%   10%   0%   3%   Don't  know   0%   0%   0%   3%   Teams that are currently using a commercial RDM solution are the most satisfied, while teams using XLSs are planning on change © 2014 The MDM Institute The-MDM-Institute.com
  • 37. Which Vendors are Commonly Short Listed & Which are Being Implemented? Multiple vendors are shortlisted for RDM (megavendors, incumbents). Incumbent does not mean best fit. © 2014 The MDM Institute The-MDM-Institute.com
  • 38. MDM Vendors IBM & Orchestra Networks = Over 2/3 of Implementations Surveyed RDM focus/components (vs. generic CDI/PIM) seem to be cause, not correlation of implementations © 2014 The MDM Institute The-MDM-Institute.com
  • 39. BOTTOM LINE n  Impact of poor or non-existent RDM is profound n  RDM is vital for analytical, transactional & operational systems— reflected in investment levels within the organization n  Initial RDM investments are manageable— getting started won’t kill your budget like CRM, ERP, CDI or PIM n  50% of successful MDM implementations happen on non-mega vendor solutions … RDM is tracking to the same market dynamics n  RDM is independent from traditional MDM (CDI, PIM)— forward looking MDM providers have a distinct RDM strategy n  e.g., IBM, Oracle, Orchestra Networks © 2014 The MDM Institute The-MDM-Institute.com BUY DON’T BUILD RDM— seek out multi-domain MDM providers with an RDM solution
  • 40. Next Steps n  Web research, blogs, investigate social media SIGs, RDM field reports on slide share & MDM Institute website n  Read market studies, analyst reports, investigate academic resources, e.g., DAMA-DMBOK n  Attend industry conferences & network with veteran RDM practitioners © 2014 The MDM Institute The-MDM-Institute.com Contact vendors & explore their solution Unlike CDI & PIM, RDM can be tested with real business data & users with very little setup
  • 41. MDM & Data Governance Summit™ Conference Series “More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else” MDM & Data Governance Summit Europe London ▪ May 19-21, 2014 MDM & Data Governance Tokyo Belle Salle Kanda– Tokyo ▪ June 12-13, 2014 MDM & Data Governance Summit San Francisco Hyatt Fisherman’s Wharf – June 17-18, 2014 MDM & Data Governance Summit Canada The Carlu – Toronto ▪ July 8-9, 2014 MDM & Data Governance Summit Asia-Pacific Doltone House, Darling Harbour – Sydney ▪ July 29-31, 2014 MDM & Data Governance Summit New York Sheraton Times Square ▪ October 5-7, 2014 MDM & Data Governance Summit Shanghai Shanghai Int’l Convention Ctr ▪ Fall 2014 © 2014 The MDM Institute www.the-MDM-Institute.com

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