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  • 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
  • Primary Care Physicians / Account Based prescribers such as Emergency Room doctors … Primary Care Physicians prescribing our/competitor products Specialty Physicians prescribing our/competitor products Contracted Accounts (hospitals, nursing homes) Group Purchasing Organizations Pharmacy Directors / other Influencers Specialty Distributors Wholesalers Specialty Pharmacies
  • cGMP = current good manufacturing practice CAPA = corrective and preventative action programs 21 CFR Part 11 =The USA’s Food and Drug Administration's Electronic Records and Electronic Signatures Rule, published as 21 CFR Part 11, requires companies in the pharmaceutical, biotechnology, medical product, cosmetic, food, and fine chemical industries to meet strict requirements for maintaining electronic records and ensuring the validity of electronic signatures. Companies must implement a validated system in which electronic records and signatures are trustworthy, reliable, secure, and as legally binding as paper records and written signatures.
  • Recent studies report that the cost of serving customers through Web-based self-service is between 18 cents and $1.00, while the cost of a live operator is between $4 and $15.

Main_CDI_workshop_v6.. Presentation Transcript

  • 1. Produced by : In Association with : Customer Data Integration & Master Data Management Summit London 2006 13-14 July, London, UK
  • 2. Aaron Zornes Founder & Chief Research Officer The CDI Institute a.k.a. CUSTOMER DATA INTEGRATION Trends & Strategies for 2006-07
  • 3. How Many Analysts Does It Take To Change a Light Bulb?
    • Gartner analyst
      • “We feel that a new bulb is necessary & that the bulb will be replaced (0.99 probability) — we have a new service that addresses that issue”
    • Forrester/Giga analyst
      • “In 5 years, the new illumination technologies will replace what you currently have ... Wait”
    • Ovum/Aberdeen analyst
      • “We’ll write about the old bulb for $25,000”
    • IDC analyst
      • “There are 1,230,245 burnt-out bulbs in the world — for $2,500, we will tell you where they are ...”
    • Big Three consultant
      • “It’s time to re-engineer the sun ...”
  • 4. About the CDI Institute
    • Founded in 2004
    • Focused on CDI-MDM business drivers & technology challenges
    • CDI Advisory Council ™ of fifty G5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects
    • CDI Business Council ™ website access & email support to 3,000+ members
    • CDI-MDM Road Map & Milestones ™ semi-annual strategic planning assumptions
    • CDI Alert™ bi-weekly newsletter
    • CDI Market Pulse ™ monthly surveys
      • Budgets, success/failure rates, mindshare of 250+ major in-flight CDI-MDM projects
      • Examples: evaluation process for CDI SI, CDI ROI in Telco M&A, …
    • CDI Fast Track ™
      • One-day public & onsite workshop
      • Fee-based & rotating quarterly through major North American, European, & Asia-Pacific metro areas
    • Semi-annual CDI-MDM SUMMIT ™
    “ Independent, Authoritative, & Relevant” About Aaron Zornes Most quoted industry analyst authority on topics of CDI & MDM Founder & Chief Research Officer of the CDI Institute Conference chairman for DM Review’s CDI-MDM SUMMIT conference series Founded & ran META Group’s largest research practice for 14 years M.S. in Management Information Systems from University of Arizona
  • 5. CDI Institute Advisory Council
    • Advisor agrees to provide Institute’s consultants with advice & insight regarding the use of CDI software & related CDI business processes at Advisor’s convenience
    • Advisor agrees to participate in at least one fifteen (15) minute survey teleconference call every sixty (60) days
    • Optionally, Advisor may respond to the bi-monthly survey request via email or Internet-based survey fulfilment
    • Results of such CDI market research surveys shall be aggregated by the Institute & made available to all Advisory Council members
    • In no case, shall any Advisor-specific survey information be made available to other parties unless Advisor has specifically agreed to the release of such information in writing
    Fifty organizations who receive unlimited CDI advice to key individuals, e.g. CTOs, CIOs, & CDI project leads Representative Members
    • Bell Canada
    • Canadian Tyre
    • Caterpillar
    • Citizens Communications
    • COUNTRY Financials
    • Educational Testing Services
    • GE Healthcare
    • Honeywell
    • Intuit
    • MCI
    • McKesson
    • Microsoft
    • Motorola
    • National Australia Bank
    • Nationwide Insurance
    • Novartis
    • Roche Labs
    • Rogers Communications
    • Scholastic
    • SunTrust
    • Westpac
    • Weyerhaeuser
  • 6. Recent CDI Alerts
    • Oracle Data Hubs: “The Emperor Has No Clothes?”  
      • Subtitle: Considering Oracle’s Data Hubs? Then Consider This …
    • SAP Master Data Management “Extreme Make-Over”
      • Subtitle: SAP MDM went under the architect’s knife – Is the outcome attractive to Global 2000 enterprises?
    • IBM/DWL Customer Center: Strategy-Driven vs. Urgency-Driven M&A
      • Subtitle: Who’s Minding the Metadata? (Does the “new” IBM software business have a coherent strategy to integrate its treasure of acquisitions?)
    • Siebel CDI Assets to Help Oracle Battle IBM & SAP
      • Subtitle: How Many More Software Firms Must Oracle Buy to Catch Up with SAP?
    “ Independent, Authoritative, & Relevant”
  • 7. Customer Data Integration (CDI) Definition
    • Comprised of solutions (processes & technologies)
      • Recognizing a customer & its relationships at any touch-point
      • Aggregating, managing & harmonizing accurate, up-to-date knowledge about that customer
      • Delivering it in an actionable form “just in time” to touch-points
    CDI is mandatory first step for most organizations on journey to enterprise master data management (MDM) Historical CDI Solutions Synchronization Enterprise Application Integration (EAI) Extract Transform Load (ETL) Replication Aggregation Master Customer Files/DBs CDI
  • 8. CDI-MDM Milestones
    • Market maturation
    • Market momentum
    • Market consolidation
    • Budgets/skills
    • Data governance
    • MDM convergence
    • Architecture
    • Data models
    • Customer identification
    • Master data delivery
    • Analytics
    • Business services/workflow
    “ CDI/MDM Milestones” are strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of the emerging CDI-MDM vendor landscape Roadmap of key areas to invest in CDI – i.e., “ What are the key differentiators of a next-generation CDI solution in 2006-07? ”
  • 9. Market Maturation
    • During 2005-06, the CDI-MDM market shifted gears from “early adopter” to “mainstream” as 95%+ of financial services, communications services, and pharmaceutical/life sciences enterprises actively look to replace homegrown CDI solutions
    • During 2006-07, CDI solutions will come to market for the midsize enterprise from Microsoft and Oracle plus the Data Quality vendors (Pitney Bowes, SAS/DataFlux, Trillium)
    • By 2008, the market for CDI-MDM solutions (software and services) will exceed US$1B
  • 10. CDI Market to Reach $1B by 2008 Source: The CDI Institute’s 1Q2005 MarketPulse™ survey of fifty large-scale CDI initiatives Systems integrators (Accenture, Alliance, BearingPoint, Cognizant, CSC, Lockheed Grumman, IBM BCS, Infosys, Unisys) Mega vendor CDI (Oracle Customer Data Hub, SAP Master Data Management, Siebel Universal Customer Master) Best-of-breed CDI (DWL Customer, Initiate Systems Identity Hub, Siperian Reference Manager) ETL (extract-transform-load vendors IBM/Ascential, Informatica, SAS) EAI (enterprise application integration vendors BEA, IBM, Tibco) NOTE 1 = Data service providers (Acxiom, Dun & Bradstreet, Experian, Harte-Hanks, IMS International) revenues not factored in. NOTE 2 = Data quality vendor (Ascential, FirstLogic, Innovative Systems, Pitney Bowes/Group 1, SAS/DataFlux, Trillium) revenues not factored in.
  • 11. Market Momentum
    • During 2006-07, CDI software solutions such as I2, IBM/DWL, ORCL/SEBL, & SAP will monopolize the majority market share; concurrently, a niche market will arise for hosted CDI-MDM solutions led by early to market vendors Alliance Consulting and Unisys
    • Through 2007-8, both mega & niche CDI-MDM vendors will aggrandize the traditional master customer DB business of data service providers such as ACXM, DNB, & GUS/Experian
    • By 2008-09, every major application & database vendor will provide either native or OEMed CDI-MDM capability – including DOX, MSFT, CRM, & NCR/Teradata
  • 12. CDI Momentum
    • March 2005 – CDI Institute’s MarketPulse™ forecasts market for CDI S/W & services to reach US$1 billion by 2008
    • April 2005 – Gartner recognized importance of CDI with its first Magic Quadrant™ for CDI Hubs
    • June 2005 – Forrester released their Wave™ report on CDI
    • October 2005 – IDC’s W/W Market Forecast stated MDM market will grow to US$10.4 billion by 2009
    • January 2006 – DM Review & CDI Institute along with 25 leading vendors launched CDI-MDM SUMMIT 2006 as largest expo dedicated to CDI, MDM, & DG
    55% of G2000 are actively evaluating an enterprise CDI solution; 42% “in production” with custom-built solution, & 3% “in production” with vendor-based solution It’s All About “ Relationships” Panoramic Customer View Customer- Centric View Universal Customer View CDI 360 º Customer View Master Customer Info File Customer System of Record
  • 13. Market Consolidation & Diversification
    • During 2006-07, mega IT vendors (IBM, Oracle, SAP) will continue marketing gyrations in moving to an enterprise MDM strategy
    • IBM (ASCL/CRSW/DWL/SRD/Trigo) & ORCL (iFlex/JDE/PSFT/SEBL) will wrestle with many of the same architectural/BPM/metadata/platform issues that forced SAP to withdraw its product from the market (SAP MDM/A2i xCat)
    • While mega IT vendors IBM, ORCL, & SAP will dominate in the CDI/MDM hub market, niche/best-of-breed vendors (I2, Initiate Systems, Kalido, Siperian) will thrive in specific industries & horizontal/corporate applications
  • 14. CDI/MDM Genealogy Pre-2001 2002 2003 2004 2006 2005 1 st gen CDI solutions arrive (IBM CIIS, Hogan CIF) Nascent EII vendors arrive & flop Data service providers (Acxiom, Experian) fail at software makeovers into CDI 2 nd gen CDI vendors merge to form 3rd gen CDI solutions (Initiate/Journee, Siperian/Delos) Oracle, SAP, Siebel introduce 3 rd gen/hybrid CDI Mega vendors digest acquisitions App vendors launch EAI infrastructure (SAP NetWeaver, Siebel UAN) ETL vendors add modest CDI extension & avow CDI capabilities Mega app vendors roll out CDI (Oracle OCO, SAP MDM, Siebel UCM) CDI early adopters drive requirements (Fin Svcs, High Tech Mfg, Pharma, Telco) ‘ EIM’ as yet another TLA 3rd generation CDI solutions are based on service-oriented architecture (SOA) to hybridize aggregation, replication & synchronization to provide enterprise-wide CDI infrastructure ‘ Process Hubs’ trounce ‘Data Hubs’; 4th gen ‘Full Spectrum’ hubs support structured & unstructured
  • 15. Budgets & Skills
    • During 2006-07, the typical Global 2000 size enterprise will budget/spend US$1.2M for CDI/MDM software solutions, with an additional US$4M for systems integration services
    • During 2007-08, CDI/MDM skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & other individuals with strong affinity for data governance will outstrip the market for individuals with actual experience; concurrently, systems integrators will fill the void in their classic style by baiting & switching senior veterans for junior rookies
    • By 2008-09, the market will have stabilized as enterprises react by training & protecting their own data governance staff with specific software product expertise
  • 16. Career Tracks
    • Scarcity of “hands on” CDI experience exists
    • By 1H2006, 1,500+ product-specific consultants albeit with little “real world” experience with mainstay CDI solutions
    • Current shortage lends itself to same scenario of 5-10 years ago with SAP’s ABAP 4GL– i.e., inflated prices & resumes with many junior systems integrator (SI) staff spinning up to speed at client’s expense (a.k.a. “Androids”)
    Market for CDI- & MDM-related expertise will create major demand for corporate CDI positions during next 3-5 years Enterprise Data Architect , Enterprise Data Modeler Centres of Excellence, Data Steward , CDI Project Lead Product Neutral Product-Specific
  • 17. Data Governance
    • During 2006-07, data governance will become a mainstay of large scale CDI-MDM projects as RFPs increasingly mandate that component
    • Through 2007-08, major systems integrators & CDI/MDM boutiques will focus on productizing their data governance methodologies
    • By 2008-09, data stewards will be a common position both in IT organizations & businesses as enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset
  • 18. Working Definitions Data Governance (DG) Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset. “ 84% of businesses surveyed believe that poor DG can cause: limited user acceptance, lower productivity, reduced business decision accuracy, & higher TCO Customer Data Integration (CDI) Processes & technologies for recognizing a customer & its relationships at any touch-point while aggregating, managing & harmonizing accurate, up-to-date knowledge about that customer to deliver it ‘just in time’ in an actionable form to touch-points. Master Data Management (MDM) The authoritative, reliable foundation for data used across many applications & constituencies with the goal to provide a single view of the truth no matter where it lies.
  • 19. “ Think MDM, Act CDI”
    • Data Governance
      • “ Data Governance” is usually a generic term for an enterprise-wide data management initiative to manage how organizations permit & govern appropriate access to master data
      • This includes measuring operational risk & mitigating security exposures associated with access to data
      • For many companies, DG is part of an overall IT governance strategy & will cover all aspects of enterprise data
      • While much would be considered “customer data”, some is clearly not – e.g., product data & inventory data
      • “ Customer Data Governance” is usually considered a subset of the overall Data Governance strategy for a company
    • Data Stewardship
      • Objective is to synchronize data collection processes, reduce data redundancy, & increase data accessibility, availability, & flexibility in a systematic manner
    CDI projects will focus on “customer data governance” & not necessarily all DG for an enterprise – if a robust IT governance or general DG strategy is in place, it will be easier to be successful at CDG
  • 20. Why Data Governance? Why Now?
    • Businesses have been governing data for 20+ years, however, only a rare few are doing it well today
    • Many companies historically assigned DG to a data management group whose job is to integrate & manage data
    • Contemporary DG challenges are far greater
      • Break down functional stovepipes
      • Integrate processes across the enterprise – including corporate technology, all LOBs, functional areas & geographic regions
      • Engage all levels of management
    Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing the opportunity to take a more strategic view of data governance
  • 21. Why Data Governance? Why Now? – cont’d
    • Once you know what data is worth, you need to calculate probability for risk in a business processes
    • When you understand value of data & probability of risk, you can evaluate how much to spend to protect it, manage it, and invest in adequate controls
    • This is basis of modern underwriting – assets, risk, controls
    • Doing this systemically requires a combination of organizational structures, business processes, & technology – a “data governance blueprint” for:
      • Data quality
      • Information integration
      • Business intelligence
    IT management must work with business leadership to design & refine “future state” business processes associated with data governance commitments
  • 22. Data Governance Juggernaut Data Customer Master Warehouse  Data Integration  Data Management (Batch) (On-Line) (Just-in-Time) Data Governance Must Become “De Facto” Data Governance Will Become “ De Jure” Data Governance Becoming “De Rigueur” Enterprise risk management is emerging as a major issue within most financial institutions & is VERY data-centric
  • 23. Demand for CDI-MDM Expertise Creates Major Opptys for Corp Positions Next 3-5 Yrs
    • Data Steward – Domain/business area expert responsible for quality of specific data entities for subset of enterprise customer data model; in large corporations, “data steward program manager” may exist who sets overall process & policy standards to formalize business’s overall data governance policy processes; additionally, “subject matter managers” may further divide responsibilities for metadata & master reference data (topologies, semantics, business metadata repository, etc.).
    • CDI Project Lead – Classical project manager with full lifecycle experience; experience with specific data model & SDK of specific CDI solution desirable; works with central IT group’s enterprise infrastructure team to define & implement business services related to customer data that comprise initial SOA efforts
    Data Warehouse  Customer Data Integration  Master Data Mgmt Data Steward Enterprise Architect CDI Project Lead Data Quality Analyst
  • 24. Technical Maturity Level Overall, FSPs are leading the way for non-FSPs
    • BASIC (“anarchy”) – App-centric approach; meets business needs only on project-specific basis
    • FOUNDATIONAL (“IT monarchy”) – Policy-driven standardization on technology & methods; common usage of tools & procedures across projects
    • ADVANCED (“business monarchy”) – Rationalized data with data & metadata actively shared in production across sources
    • DISTINCTIVE (“Federalist”) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle
    Source: February 2006 CDI Institute survey of 50 Global 5000 IT organizations
  • 25. MDM Convergence
    • During 2006-07, customer & product data interdependencies will quickly broaden CDI requirements – i.e., from “customer” to “product” to “vendor”
    • During 2007-08, niche vendors will provide multi-hub connectivity (Kalido, Purisma, Siperian, Stratature) via hierarchical management extensions
    • By 2008-09, enterprises without an overall, long-term MDM strategy run the ironic risk of building “MDM silos”
  • 26. The CUSTOMER:PRODUCT Conundrum
    • JIT, 21 st century business models mandate both agility & integration across enterprise to provide higher profitability, reduce operations costs & increase accuracy of regulatory compliance
    • Contemporary supply chains mandate synergetic approach across both customer & product master systems via common business services
    • Key business drivers
      • Increased agility to deliver new product bundles/offers
      • Simplified PLM by automating key business policies to provide effective oversight & compliance
      • Reduced revenue leakage via consistent enforcement of offer policies re: provisioning & billing
    SOA mandates “Customer” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products Pricing Authorized Products Bundles Cross-Reference Hierarchies Geographical Variants Regional Variants CUSTOMER PRODUCT
  • 27. Architecture
    • During 2006-07, Global 5000 enterprises will migrate en masse from custom-built customer data hubs onto commercial CDI-MDM solutions – primarily those of mega vendors IBM, Oracle/Siebel, & SAP
    • Through 2007-08, systems performance will remain problematic as enterprise infrastructure teams hedge between virtual, persisted & composite/hybrid hubs; applying point solutions such as EII middleware will help adjudicate both performance & political stalemates
    • By 2008-09, both market-leading enterprises & CDI-MDM vendors will have completed their transition from client/server to service-oriented architecture (SOA) by migrating from “data hubs” to “process/policy hubs”; concurrently, CDI-MDM requirements will drive vendors into 4 th generation, full spectrum hubs (support for structured & unstructured info with extreme scalability)
  • 28. Most Common CDI Topologies “ Composite (Hybrid Hub)” is architectural preference for 40%
    • Encapsulate legacy applications
    “ Chernobyl”
    • Ability to fine-tune performance and availability by altering amount of master data persisted
    • XML, web services, service-oriented architecture (SOA)
    Composite (Hybrid)
    • Metadata layer + distributed query (enterprise information integration or EII)
    • Enterprise application integration (EAI)
    • Portal
    Registry (Virtual)
    • Master customer information file/database
    • Operational data store/active data warehouse
    • Relational DBMS + Extract-Transform-Load (ETL) + Data Quality (DQ)
    Persistent (Database)
    • Database marketing providers
    • Data service providers / service bureaus
  • 29. Data Models
    • During 2006-07, mega CDI-MDM vendors (IBM, Oracle/Siebel, SAP) will continue to focus significant resources (R&D & marketing) on “industry content” aspect of data models which will force specialist CDI-MDM vendors to stay “data model lite” via specializations such as B2B hierarchy management & distributed CDI-MDM
    • By 2007-08, sophisticated hierarchy management will become a mainstay feature of all CDI-MDM vendors, yet support for metadata repositories to link mega vendors’ multitude of acquisitions will continue to lag significantly
    • Not until 2008-09, will mega CDI-MDM vendors have rewired software to fully support their strategic application infrastructure (Oracle Fusion, SAP NetWeaver, et al); concurrently, CDI-MDM vendors will migrated from data model-centric architecture to process model centricity
  • 30. Customer Identification, Data Quality & Data Profiling
    • During 2006-07, independent data quality vendors will struggle to compete against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor CDI-MDM solutions (e.g., IBM Customer Center with WebSphere QualityStage, Oracle Customer Data Hub with Data Librarian)
    • By 2007-08, standalone data quality vendors will evolve into standalone CDI hubs focused on the mid-market while maintaining postal service address cleansing as their forte
    • Through 2008-09, high-speed probabilistic matching algorithms will dominate over deterministic models despite hybrid solutions providing the best results
  • 31. Master Data Delivery
    • During 2005-06, EAI / EII / ETL vendors scurried to either add persistence to their products or align themselves with CDI-MDM vendors as a complimentary role by enabling customer data hubs to interweave data from multiple diverse master sources with master data persisted in a central hub
    • Through 2006-07, these vendors will thrive by providing increased throughput and additional repurposing & publishing capabilities to classical CDI-MDM solutions
    • By 2007-08, EAI / EII / ETL middleware will have been fully assimilated into broader CDI-MDM vendor community via M&A
  • 32. Analytics
    • During 2006-07, data marts will continue to function as bridges across the void between operational, historical & analytical data to correlate customer information across multi-channels, LOBs, & internal trusted sources
    • Through 2007-08, ongoing evolution of enterprise data warehouse (EDW) & operational data store (ODS) to support trickle-feed update will increasingly blur the lines between real-time analytics & dynamic CDI-MDM style aggregation
    • By 2008-09, inline & real-time analytics derived from CDI-enabled aggregation of both transactional & historical data will have become major source of sustainable competitive differentiation for G5000
  • 33. Business Services/Workflow
    • During 2006-07, CDI-MDM vendors will lag their BPM counterparts in providing workflow orchestration to synchronize the trusted sources that comprise a federated master data store
    • Through 2007-08, the mega CDI-MDM vendors (IBM, Oracle/Siebel, SAP) will struggle to provide BPEL-compatible workflows while the specialist CDI-MDM solutions rush distributed CDI-MDM capabilities to market
    • Without such flexible workflows, organizations are merely rebuilding the same master data files they evolved the past 15-20 years with their ERP &x CRM infrastructures
  • 34. Industry-Specific CDI Requirements
    • Financial services providers (FSPs)
    • Communications services providers (CSPs)
    • Life sciences / pharmaceutical
    • Government
    • Healthcare
    • High-technology manufacturing (t.b.d)
    • Manufacturing (discrete, process)
    • Retail (t.b.d)
    • Hospitality (t.b.d)
    Early adopters of CDI solutions include: FSPs, CSPs, Pharma & High-Tech Manufacturing
  • 35. Why are Market-Leading FSPs Adopting CDI?
    • Optimize customer profitability
    • Increase operational efficiencies
    • Enhance regulatory compliance
    • Improve overall BI
    • Deliver ROI on CRM initiatives
    • Provide “infrastructure rationalization”
    • Facilitate growth-by-M&A
    FSPs must transform from customer-hostile, batch business model to give customers actionable 360º view in “near real time”
  • 36. Banking CDI Requirements
    • Facilitate growth-by-M&A
    • Comply with privacy mandates
    • Improve compliance – e.g., AML, BXA, CIP 326, OFAC, SOX, …
    • Increase sales productivity by modeling corporate hierarchies & structures of B2B customers
    • Improve real-time portfolio view for both wealth management & internal risk management
    • Increase customer satisfaction ( retention/upsell ) by streamlining routine customer maintenance
    • Reduce IT infrastructure costs
    • Increasingly complex business models ( B2B2C ) as “electronic storefronts”
    • Demand for “near real-time” data lineage
    • Rationalizing complex & dynamic business & individual hierarchies
    • Hacker-proof customer data protection
    • High-RAS ( reliability, availability, scalability ) nature of mission-critical infrastructure
    Customer view must prevail over product view as higher margin customers dictate common set of products & services via rapid adoption of CDI Business Drivers Technology Challenges BXA - Bureau of Export Administration CIP 326 – Customer ID Program of USA PATRIOT Act OFAC - Office of Foreign Assets Control
  • 37. Retail Banking – Business Objectives
    • Provide single view of customer
      • Across all channels
      • Across all products
    • Reduce operational costs
    • Improve cross-selling
    • Improve net credit loss
    • Increase marketing lift
    • Manage privacy centrally
    • Provide operational view for Basel II compliance
    • Provide improved customer service
    • Streamline account opening process
  • 38. Retail Banking – Technical Requirements
    • Proven performance & scalability
    • Service-oriented architecture
    • Ability to handle complex hierarchies
    • Ability to integrate to existing infrastructure
    • Open architecture – J2EE compliant
    • Proven functionality for services layer
    • Existing CIF co-existence & eventual replacement strategy
  • 39. Retail Bank – CDI Solution Architecture Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Recognition Vendor Data Warehouse Data Marts Data Marts Front Office Back Office Data Integration EAI ETL EII CDI Hub Application Server RDBMS Server Web Self- service VRU Telemarketing Call Center ATM Branch Kiosk Personal Banker Deposits Consumer Credit Cards Wealth Management
  • 40. Retail Banking – Key Drivers
    • Improve cross-selling & campaign lift
      • “ Operationalize” marketing data
      • Leverage service interactions into sales opptys by following up on current campaigns
    • Regulatory compliance
      • Providing operational view of customer into existing data warehouse for Basel II compliance
      • Ability to store privacy preferences at a true enterprise level
  • 41. Retail Banking – Business Outcomes
    • Ability to act on customer knowledge
    • Improved customer matching for customers with multiple risk-bearing products & improved benefits obtained from risk management
    • Risk scoring improvements – better collections decisions
    • Able to reduce costs based on reducing maintenance costs of legacy CIFs
    • Improved accuracy & completeness of the customer data within CDI hub vs. existing CIFs (96% vs. 85%)
    • Administrative cost reduction
  • 42. Banking CDI Scorecard: “Top 5” Business Drivers & Technology Challenges
  • 43. Key Business Benefits for FSP of “Product Information Pipeline”
    • Enhanced client reporting
    • Improved timeliness
    • Improved depth of product information (consultant support, consultant RFI responses, RFPs, fund fact sheets)
    • Enhanced customer servicing via e-channel management
    • Improved revenue generation opportunities
    • Enhanced executive mgmt transparency into risk mgmt (sales pipeline info)
    • Increased efficiency within Global Distribution functions (removing duplicated business processes, & improving speed & accuracy of key activities)
    • Improved business retention rates across global markets, product segments & business channels
    PIP is complement of CDI by employing same technologies centered around “product” – much more than CRM is required
  • 44. Case Study: Major North American Bank
    • Near term = cross-selling across product lines
    • Longer term = customer service & retention
    • Huge diversity of financial product lines
    • Scalability of complex business model
      • 10M+ retail consumer accounts
      • 3K+ bank branches; 1K+ mortgage ctrs
      • 25K+ internal users
    • Custom-built CDI not keeping pace with market evolution
    • Delivered workflow-based employee portal to integrate SFA, DW, BI, customer profitability, & loan pricing/approval applications
    • Built on existing portal & message bus by incorporating new CDI technologies in R/T customer identification & data reconciliation plus cross-application process integration
    • Coordinated multi-channel campaign mgmt, channel optimization, & advanced analytics
    Increased cross-sell revenue by US$700M across sales, marketing, & portfolio mgmt — reducing underperforming assets by US$12B Business Issues Technology Solution
  • 45. Credit Card Issuer CDI Requirements
    • Aggregation within industry – exacerbated by big commercial banks emulating major monolines
    • Heavy reliance upon direct mail marketing – & inherent increased fraud risk
    • Improve compliance – e.g., AML, BXA, CIP 326, OFAC, SOX, …
    • Support future business objectives – e.g., M&A
    • Ensure consistent customer service across all channels
    • Private label cards needing lifestyle event-based differentiation
    • Reduce IT infrastructure costs
    • Integration of new & old channels – e.g., collections, fraud, contact centre with kiosk, ATM, IVR & online self-service
    • Contingency planning for future technologies – e.g., biometrics, smartcards, etc.
    • Complex hierarchy mgmt – e.g., household-level risk mgmt
    • Scalability – e.g, ability to integrate new block of customers
    • Infrastructure costs of integrating new data sources & channels
    Challenge is to move to portfolio-level integration despite the politics & technology inertia Business Drivers Technology Challenges
  • 46. Credit Card Issuer CDI Scorecard: “Top 5” Business Drivers & Technology Challenges
  • 47. Case Study: Major U.S. Credit Card Issuer
    • Reduce net credit loss
    • Increase customer base
    • Support M&A-based growth strategy
    • Centralize privacy preferences management
    • Reduce contact centre costs by providing “once and done” customer data management
    • Ensure consistent customer service across all channels
    • Deployed hybrid CDI hub — vs. front-end solution, data warehouse, or customer info file
    • Integrated marketing campaign system to increase responses & increase customer base
    • Managed privacy contact preferences in single location & provided to all channels — e.g., telemarketing, direct marketing, call centre, etc.
    • Invested in strategic “SOA architecture” leveraged across entire enterprise
    Achieved competitive advantage in operational excellence over nearest competitors — “M&A ready” Business Issues Technology Solution
  • 48. Insurance CDI Requirements
    • Facilitate growth-by-M&A
    • Comply with privacy mandates
    • Increase deep understanding of data quality & reliability issues related to claims & fraud
    • Embrace frequent regulation & de-regulation cycles – e.g., HIPAA, NPI
    • Accommodate growing technical patchwork of proposed legislation – e.g., NHIN
    • Reduce IT infrastructure costs
    • Expand use of incumbent application systems ( e.g., CRM ) via enterprise customer identity service (universal key) across all applications
    • Increase flexibility to add new channels, data sources, touch points, etc. via SOA
    • High-RAS ( reliability, availability, scalability ) nature of mission-critical infrastructure
    • Hacker-proof customer data protection
    Insurers need to move to “high touch” service model wherein near real-time channel integration is critical Business Drivers Technology Challenges HIPAA - Health Insurance Portability & Accountability Act NHIN - National Health Identification Number NPI - National Provider Identifier
  • 49. Insurance CDI Scorecard: “Top 5” Business Drivers & Technology Challenges
  • 50. Case Study: Major North American Insurer
    • Increase quality of service via 360° customer view to support end-to-end, seamless business processes for call centres, claims processing, etc.
    • Scalability of complex business model
      • 5M+ policies
      • 2M+ “customers”
      • 3.5K+ agents
      • 10K+ internal users
    • Custom-built CDI not keeping pace with market evolution
    • Selected “Buy” over “Build” of CIS extensions
      • High performance identity management
      • Extensible data model
      • Support for complex hierarchies
      • Data steward capabilities
      • Faster time to market
      • Lowest total cost of ownership
    • Pioneered “chief customer officer” & “data steward” programs to drive design of core processes to focus on cross-enterprise customer view
    “ Go live” 3X faster & 4X cheaper for “Buy vs. Build” (US$50M over 5 years) Business Issues Technology Solution
  • 51. Top 5 Vendors’ Mindshare within Financial Svcs
  • 52. Communications Services Provider Requirements
    • Consolidation (M&A)
    • Deregulation/re-regulation
    • Increasingly "portable" customers
    • Self-directed service to drive down customer care costs
    • Real-time marketing & integrated campaign management using predictive analytics
    • Fraud detection
    • Bill presentation
    • Ability to blend channels
    • Complex supply chains
    • Onerous regulatory mandates
    • Extreme scalability in call centres, provisioning, etc.
    • Flood of data due to ‘data services’
    • “ Plan anywhere, build anywhere” investment strategies in new technologies that enable quicker new product introduction (NPI) at lower cost without sacrificing quality
    Telco evolution will be radical as intense competition in wireless, LD, Internet, & local service commoditizes products & slashes profits – not to mention VoIP Business Drivers Technology Challenges
  • 53. Top 5 CDI Vendors’ Mindshare within Telco
  • 54. Survey Overview: “ROI Strategies for CSP’s M&A”
    • 10+ North American CSPs – e.g., cable carriers moving into telephony, CLECs, ILECs, LD carriers, wireless, & conglomerates
      • 100% with > 1M subscribers
      • 50% > 5M subscribers
    • >75% are investing in CDI in support of stated corporate target to reduce “ level of infrastructure investment ” with 49% stating CDI to be either important or critical to this outcome
    • 30% had COTS software for CDI installed with the remainder actively evaluating an enterprise-wide solution
    COTS = commercial, off-the-shelf software M&A demands comprehensive & integrated profiles
      • Saving substantial integration costs
      • Improving flexibility & control to enhance overall system performance
      • Accelerating time-to-market of CRM, SCM, & PIM solutions
      • Reducing overall project risk
    Tactical ROI
      • Understanding & predicting customers’ behaviours
      • Identifying & deflecting competitors’ moves
      • Integrating supply chains with key business partners
      • Forecasting & acting on new opportunities as a “first mover”
    Strategic ROI
  • 55. CDI MarketPulse™ Findings: “Corporate Issues” How do you RANK your company's DESIRED STRATEGIC RESULTS resulting from M&A?
    • For strategic M&A, “Market dominance” cited twice as often as next highest ranked “Increased profitability”, “Increased operational efficiencies” & “Corporate alignment”
    Source: CDI Institute 1H2005 MarketPulse™ Survey of 12 North American CSP’s IT Organizations
  • 56. CDI MarketPulse™ Findings: “Marketing Issues” How do you RANK your company's DESIRED “MARKETING” OUTCOMES resulting from M&A?
    • “ Enable product bundling” 50% more important as “Systematize analytics to determine customer, segment, bundle, & product line profitability” – yet 60% expect CDI solution to integrate with BI or enterprise DW during first year
    Source: CDI Institute 1H2005 MarketPulse™ Survey of 12 North American CSP’s IT Organizations
  • 57. CDI MarketPulse™ Findings: “Technology Issues” How do you RANK your company's MAJOR TECHNOLOGY CHALLENGES resulting from M&A?
    • “ Legacy application integration (CRIS, LEIS, LEIM, USOCs)” rated at least 33% more important than “Business process/workflow integration” & “Database/data model integration”
    Source: CDI Institute 1H2005 MarketPulse™ Survey of 12 North American CSP’s IT Organizations
  • 58. CDI MarketPulse™ Survey Findings
    • CSPs must acknowledge state-of-IT-affairs resulting from continuous M&A
    • CDI provides proven means to insure ROI of M&A – especially in CSP industry with historically fragmented customer & product master DBs
    • Market-leading CSPs are planning to apply CDI as disruptive technology to “outmarket & outservice the competition”
    • “ Build vs. buy” has become “buy mega vendor” vs. “buy best of breed” as ITOs are mandated to move away from home-grown CDI solutions to COTS solution
    • During 2005-06, CSPs will focus on deploying data-centric CDI infrastructure to provide unified customer view across multiple channels & LOBs
    • During 2006-08, CSPs will move to process-centric CDI infrastructure to deliver increasingly accurate, complex & just-in-time unified customer views to enable bundle mktg & self-directed customer care
    CSP evolution will be radical as intense competition in wireless, LD, Internet, & local service commoditizes products & slashes profits – not to mention VoIP
  • 59. Pharma/Life Sciences Business Imperatives
    • Improve productivity of pharma sales reps
    • Coordinate sales & operations planning via common infrastructure & goals/metrics
    • Increase customer/physician acquisition, retention & profitability
    • Reduce info management overload/costs
    • Prepare for uncertain future
    360° View of Customer Recent survey indicates physicians need info to make more informed buying decisions – but only about 1/3 consider pharma sales reps impt sources; 1/3 found sales visits helpful, addt’l 1/3 want more current comparative or clinical data/analyses relevant to practices, plus objective info on usage & side effects Contracted Accounts Specialty Physicians Primary Care Physicians Health Care Professional Group Purchasing Orgs Pharmacy Directors & Other Influencers Wholesalers / Speciality Distributors
  • 60. Life Sciences / Pharma Technology Challenges
    • CRM alone is not enough
    • DW+CRM is not enough
    • Importance of flexible workflow
    • Dis-intermediated data sources
      • Data service providers (IMS, NDC, AMA - cleansing, matching issues)
      • Industry standard identifiers (IMS, DEA, state licensing) not always accurate
    • Where does content mgmt system end & where does the structured data mgmt start?
    Market-leading Pharmas must unify physician/customer information from multiple systems & business units in a robust data model specific to pharmaceutical industry
  • 61. Improve Productivity Of Pharma Sales Reps
    • Enable sales reps to improve sales effectiveness by leveraging client sales histories & profile info from diverse sources
    • Automatically capture physician info during sales meetings
    • Spend more time in the field – serving physicians – rather than in the office recording & analyzing meeting results
    • Enable physicians to make more informed purchasing decisions by offering customized product info, evidence gathered thru clinical research, & comparative analyses of medicines
    • Ensure more effective territory mgmt to yield more successfully market & sell products thru efficient call handling & better cross-channel communication & coordination
    Making sales reps more productive, requires a complete picture of the physician profile, mktg activities, etc. – database-centric quasi batch CDI is first step
  • 62. Coordinate Sales & Operations Planning Via Common Infrastructure & Goals/Metrics
    • Monitor real-time performance of sales force to quickly make strategic & tactical adjustments necessary to meet sales goals & provide adequate product inventory
    • Employ RFID technology & the EPC Network to improve info mgmt in pharma supply chain
    • Make M&A work via vital agglomeration of customer & supplier master data
    • Integrate IT infrastructure of diverse acquisitions
    • Leverage info, insights & relationships to expedite & enhance product intro & adoption
    • Overcome cultural obstacles to creating better collaboration between Clinical & Marketing organizations
    • Insure supply chain integrity protection for producer & patient (& everyone in between)
    • Protect the pharma enterprise involved in ever more complicated contracts with external partners
    CDI needed that not only provides excellent support for sales reps, but also makes customer info available to marketing, R&D & supply chain functions
  • 63. Increase Customer/Physician Acquisition, Retention & Profitability via Closed Loop Mktg
    • Enable creation of segment-specific drug detailing aids
    • Deliver custom detailing to physicians thru field sales channel
    • Collect responses to product messages at point of customer interaction
    • Analyse responses to further refine marketing campaigns based on real-time feedback
    • Design & manage sophisticated campaigns, incl medical events & mailings
    Closed-loop marketing capabilities align mktg & sales business processes, enabling companies to target & segment customers, design & execute mktg campaigns, & analyse customers' responses to product messages
  • 64. Reduce Information Mgmt Overload/Costs
    • Manage exploding amount of data produced in every part of pharma enterprise
      • CAPA, RFID & ECM data
      • 21 CFR Part 11
      • HIPAA
    • Share & store discovery & development data in environment with onerous legal requirements for data retention & mgmt
    • Generate structured analysis out of unstructured content
    • Manage outsourced clinical trials
      • Complexity is that some tasks but not all are outsourced for given trial
    Both physician & consumer data are intricately related as part of information asset programs which must keep regulatory risk & validation costs to a minimum Pharma Info Overload Supply Chain & Mfg Data: CAPA, RFID, & ECM Clinical & Marketing Data Data Protection & Privacy Initiatives: 21 CFR Part 11 & HIPAA Very Large Data Base(s)
  • 65. Prepare for Uncertain Future
    • Leverage digital packaging (RFID, ECM) for compliance monitoring & supply chain optimization
    • Optimize consumer self-service
      • Apply advanced technologies to expedite info sharing via guided search, co-browsing, etc.
        • Helps consumers benefit from full range of info about health issue they’re researching
        • Enables pharma to deliver targeted info to customers at precise moment needed or requested
      • Examples: medical education; disease mgmt; patient compliance; product awareness
    • Drive & manage regulatory compliance across diverse legal domains
    • Prepare for increased outsourcing of both commoditized & specialized functions
    • Exploit strategic opportunities created by bioinformatics/ nanotechnology
    • Leverage re-importation trends
    CDI growth + Pharma growth = CDI 2
  • 66. Legacy Pharma “Info Supply Chain” ODS DW CARS Siebel IMS Wholesaler Fed Govt SMG SAP Contracting AMA DEA STL Call Centre Web Dendrite Sales Targets OSP Events Some sources flow straight to the DW Some sources flow to ODS & DW Some sources are not integrated Back Office External Source Front Office ODS = operational data store DW = data warehouse CARS = xxxx “ Treading water …”
  • 67. Contemporary Pharma “Info Supply Chain” CDI Registry/ Hub Active Data Warehouse CARS Siebel IMS Wholesaler Fed Govt SMG SAP Contracting AMA DEA STL Call Ctr Web Dendrite Sales Targets OSP Events HIN All *reference* data flows through CDI Registry/Hub Back Office External Source Front Office “ Future-proofed …”
  • 68. Top 5 Mindshare within LifeSci/Pharma
  • 69. Government CDI Requirements
    • Self-service to drive down customer service costs
    • Integration of transactional, unstructured, geospatial, & demographic data to optimize public services (& national security)
    • Imperative placed on most government agencies to collaborate & share info
    • Newly-created enhanced knowledge repositories, tools, & processes critically needed for meeting new public policy requirements
    • Need to positively ID & track individuals across languages & cultures
    Government entities must apply citizen data integration best practices from private industry – while using extreme caution concerning privacy & security Integrated Analytics Private Data Public Data Derivative Data CDI
  • 70. Mission-Critical Citizen Data Integration (CDI)
    • Key technologies
      • Anonymous entity resolution (name classifier & hunter)
      • Business intelligence (perpetual analytics)
      • Dynamic scoring
      • Link analysis (° of separation)
      • Grid scalability
      • Data mining
      • Text mining
      • Real-time report streaming
      • Voice/text analysis
    • Key vendors
      • Initiate Systems
      • Language Analysis Systems
      • MetaMatrix
      • Salford Systems
      • SAS
      • SPSS
      • Superstructure
      • Systems Research & Development
      • The Distillery
    Additional challenges for gov’t include: scalability (scale, # & heterogeneity of DBs), “very large scale” turf battles, lack of national ID in US, supra-politics
  • 71. Regulatory Juggernaut & U.S. Initiatives
    • Klinger-Cohen Act
    • Office of Foreign Assets Control (OFAC)
    • Bureau of Export Administration (BXA) lists of sanctioned governments, organizations, individuals
    • In-Q-Tel venture capital fund
    • Digital collection system 1000 (FBI's “Carnivore”)
    • CAPWIN project for the metro District of Columbia region emergency response system
    • Terrorist Threat Integration Centre
    During 2004-05, government will be stressed to analyse citizens’ behaviours to support national security initiatives – & will increasingly turn to commercial IT sector for “outside the box” thinking & best practices
  • 72. Top 5 CDI Vendor’s Mindshare within Public Sector
  • 73. Why are Healthcare Providers/Payers Adopting CDI?
    • Optimize customer profitability
    • Increase operational efficiencies
    • Enhance regulatory compliance
    • Improve overall BI
    • Deliver ROI on CRM initiatives
    • Provide “infrastructure rationalization”
    • Facilitate growth-by-M&A
    Clearly, healthcare payers don’t know enough about their “customers” — physicians, members, & employers – i.e., healthcare payers have not been pushed on customer service issues because they historically were near-monopoly in their geographies “ Most other economic sectors have used IT to become integrated & more efficient. Healthcare, too, can be transformed.” Leonard D. Schaeffer, Chairman & CEO WellPoint Health Networks Keynote Address at 2004 Health Information Technology Summit
  • 74. Healthcare Payer/Provider CDI Requirements
    • Ongoing consolidation straining capacity of batch-centric processes
    • Corporate boards & investors reluctant to provide capital for major up-front investments
    • Frequent regulation & de-regulation cycles – e.g., HIPAA & NPI, NHIN
    • Shorter economic ”product” lifecycles – e.g., FSAs
    • Increased competition -- e.g., offshore Rx fulfillment, NFPs becoming “for profit”
    • Morphing member base demographics – aging “baby boomer bubble”, “Gen X”, etc.
    • Ever increasing QoS expectations
    • Need to react intelligently & instantly to changing “customer” information such as claims processing & medical mgmt
    • Requirement for deep understanding of data quality & reliability issues as it relates to eligibility, claims, & fraud
    • Necessity for a enterprise data model across disparate sources & applications to support complexity of healthcare business model
    Healthcare master customer data must be the most accurate, up-to-the-minute source of customer information & must feed downstream systems (e.g., claims processing) as well as external vendors. Business Drivers Technology Challenges HIPAA - Health Insurance Portability & Accountability Act NPI – national provider identifier NHIN - national health identification number
  • 75. Healthcare Payer/Provider CDI Scorecard: “Top 3” Business Drivers
  • 76. Healthcare Payer/Provider CDI Scorecard: “Top 3” Technology Challenges
  • 77. HCP CDI Implementation Characteristics
    • Enterprise data architect
    • Customer master data custodian
    • Data quality steward
    New or enhanced positions arising from CDI
    • Service providers’ prescription benefits management
    • Provider data management
    External partners sharing customer data
    • Member data management
    • Eligibility management
    • Claims case management
    • Disease management
    • Provider data management
    • Contract and credentialing
    • Pharmacy benefit management
    Databases sharing master customer (member, provider) data
    • Siebel call centres
    • Home-grown membership and eligibility management
    Primary application vendors
    • 3 million members; 1.6 million providers
    Number of customers Healthcare Payer Specifics CDI Dimension
  • 78. “Top 10” CDI Evaluation Criteria
      • Customer data model
      • Business services
      • Identity management
      • Data management
      • Architecture
      • Infrastructure
      • Connectivity
      • Analytics
      • Developer productivity
      • Vendor integrity
    Infrastructure fracas will escalate as mega app vendors rush to dominate business services/processes & data models as high ground
  • 79. Top 10 Evaluation Criteria within Global 2000
  • 80. #1 Criteria = Customer Data Model
    • Multi-party model to support complex roles & relationships
      • Demographic profile (name, address, phone number, marital status, etc.)
      • Roles & relationships between parties (including company hierarchies)
      • Additional related entities (entitlements, products, preferences)
      • Data heritage, change history & survivorship
      • Regulatory & privacy rules
    • Industry-specific (vertical) extensions
    • Ability to import industry standard or custom-built data models – e.g., IBM IAA, OASIS CIQ, Siebel CIF, Hogan CIS
    Depth & breadth of data model – plus ability to adapt statically & on-the-fly – provide a solid CDI foundation
  • 81. #2 Criteria = Business Services
    • External workflow engine & web services transaction support – e.g., business process management (BPM)
    • Rules engine
    • End-to-end support with operational applications
    • Business semantic-driven horizontal customer processes – e.g. add party, change address, retire customers
    • “ Best practice” templates for both horizontal & vertical customer – e.g., related processes
    • Compatibility with existing infrastructure investments – e.g., Tibco, MQ-Series, etc.
    • Standards – e.g., OMG’s Model-Driven Architecture (MDA), WS-Coordination, WS-Transaction, & BPEL
    Functionality & extensibility of business services are critical evaluation criteria for CDI solutions – longer term “process hubs” are the goal
  • 82. #3 Criteria = Identity Management
    • Very high performance matching/aggregation/search
    • Ability to generate or incorporate “universal” master keys
    • Cross-reference management – e.g., 1:M support, enforcement of cross-referencing
    • Support for all identity types – e.g., individual, household, organization
    • Change detection and event mgmt – e.g., propagation & validation, in-doubt resolution
    • Support for privacy regulations – e.g., SB-168 (remediation of SSN off of any public document
    • Non-obvious/intrusive entity resolution
    Smart matching plus effective human intervention – & automated actions – yield better identity mgmt; the bigger & more distributed the company, the more complicated the hierarchy mgmt problem
  • 83. #3.5 Criteria = Hierarchy Management
    • Recognizing, investigating and maintaining complex business relationships by identifying associated individuals within the context of their corporate structure or hierarchy
    • Navigating complex hierarchies from individual to a full hierarchy view
    • Classifying current business customer relationships according to a hierarchy maintained by externally trusted sources of business information
    • Searching, retrieving, viewing and modifying hierarchical relationships and presenting this information to external users and applications
    New organizational hierarchy mgmt capabilities help solve this global account mgmt problem by providing the most accurate, scalable & easily deployed solution for enterprises that need to understand the true & total value of each customer relationship
  • 84. #4 Criteria = Data Management
    • Consolidation & survivorship rules (intelligent merge/unmerge)
    • Application- & role-level authorization
    • End-to-end data mgmt processes to enforce data quality
    • Data cleansing
      • Address cleansing & standardization
      • Pre-built integration to leading DQ tools
      • Closed loop-DQ
      • Data profiling
    • Central enforcement & tracking of DQ
    • Integration with Web-enabled aggregator data
    • Complex, long running transaction
    • Support for multiple master data types – e.g., reference, transactions
    • Comprehensive set of customer attributes for complete profile
    • History & audit trails
    Goal is to create end-to-end data mgmt processes that may be invoked by other major customer facing subsystems in addition to CRM package
  • 85. #5 Criteria = Architecture
    • Multi-modality architectures
      • Virtual/registry
      • Persistence
      • Confederation
    • Multi-modal security
      • Profile access control
      • Integration with security of DB, CRM & ERP
      • Role-based user rights mgmt
    • Compliance with regulatory mandates
    Given the generational evolution of CDI styles, it is vital to select a CDI solution specifically tuned for a given set of long term CDI requirements
  • 86. #6 Criteria = Infrastructure
    • Scalability – e.g., in-memory or cache DBs; just-in-time aggregation
    • Manageability - e.g., system management & monitoring tools
    • Accessibility – e.g., ability to service wide-range of performance levels
    • Availability – e.g., resilience to various failure situations such as hardware & network outages; continuous data maintenance/ synchronization
    As “single point of failure” asset, CDI internal infrastructure has all the requirements of mission-critical applications & must be evaluated so
  • 87. #7 Criteria = Connectivity
    • Rigorous multi-model support for all integration modes
      • Real-time
        • Tightly-coupled (COM, Java, CORBA)
        • Loosely-coupled (IBM MQ Series, XML/HTTP, integration servers)
      • Near real-time
        • Loosely-coupled (IBM MQ AMI, XML/HTTP, integration servers)
      • Batch
        • EDI, RosettaNet
    • Pre-packaged integration processes & templates
    • Intelligent routing – e.g., alerts, content-based routing & pub-sub
    CDI solutions should provide rigorous multi-model support for all usage/integration modes
  • 88. #8 Criteria = Analytics
    • Customer segmentation & targeting for cross-sell & up-sell
    • In-line analytics for closed-loop marketing
    • Data profiling to manage “degree of trust” associated with given master customer data source (e.g., completeness, uniqueness, accuracy, & lineage)
    No longer are batch-oriented data marts or data warehouses sufficient to provide fundamental analytics necessary to drive customer profitability & value assessments (to enable JIT & differentiated service)
  • 89. #9 Criteria = Developer Productivity
    • Life-cycle approach
    • Systems management tools
      • Change management
      • Software distribution
      • Testing
    • CMM compliance
    • Methodology
    CDI ultimate goal is user-driven rules management, yet IT professionals (data stewards, et al) must set up & fine-tune this mission-critical infrastructure
  • 90. #10 Criteria = Vendor Integrity
    • References vs. proof-of-concepts
    • Professional services – work done by IT vendor to assist in the delivery of solution via methodology, process, skills transfer, etc.
      • Quality
      • Breadth
      • Customization
    • Corporate agility – Ability to respond, change direction, etc. in Responsiveness/Development Processes/Flexibility
    • Personnel – Mix of skills, expertise, experience, etc.
      • Leadership/available skills
      • Expertise/intellectual property
    • Financials – Combo of financial resources, liquidity, etc.
      • Access to capital
      • Profitability
      • Growth rate
    CDI solutions have all the requirements of mission-critical applications – vendors must be evaluated so
  • 91. Minor, Yet Relevant CDI, Players
      • Actuate/Nimble Technology (Data Lens, Nimble Integration Suite)
      • Apama (Apama Engine)
      • AptSoft (AptSoft Director)
      • Blackrock Solutions
      • Business Objects (Data Integrator/Firstlogic)
      • Celequest (Activity Suite)
      • Choicepoint
      • Chordiant (Chordiant 5 Enterprise Platform)
      • Contivo
      • Data Foundations (OneData)
      • DataMirror (Constellar Hub/ Transformation Server)
      • Dun & Bradstreet
      • E.Intelligence
      • eConvergent (eMerge)
      • Enkata (Enterprise Insight Suite)
      • GoldenGate Software (Global Data Synchronization)
      • Group 1 (Sagent Data Flow)
      • Harte-Hanks (AllLink, Trillium)
      • InfoUSA/Donnelley Marketing (InfoConnect)
      • Intelligent Results
      • MetaTomix (Real-Time Visibility Suite)
      • Modulant (Contextia™ Connection Server)
      • Nimaya
      • Novell (Customer OneView)
      • Polk
      • Sedona (Intarsia)
      • SPL (CorDaptix)
      • Sun (SeeBeyond Business Integration Suite)
      • Tibco/ObjectStar/Velosel
      • Vitria (Businessware)
      • Xoriant
  • 92. Competitive Field Reports**
    • Data Foundations OneData
    • i2/Teradata MDM
    • IBM Customer Center
    • Initiate Systems Identity Hub
    • Kalido MDM
    • Oracle Customer Data Hub
    • Oracle-Siebel UCM
    • Purisma
    • SAP MDM
    • SAS/DataFlux
    • Siperian MRM
    ** Persisted data hubs with minimum 5 installs
  • 93. Field Report: Data Foundations OneData
    • Strengths
      • Full lifecycle with DG framework
      • Integrated customer, product & vendor master data
      • Data model flexibility
      • Full SOA
      • Focus on MDM & reference data
      • Sophisticated hierarchy mgmt – relationship charts, rules mgmt
      • Price
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Lack of CDI references
  • 94. Field Report: i2/Teradata Master Data Management
    • Strengths
      • Full lifecycle
      • Integrated customer, product & vendor master data
      • Full SOA
      • Retail & mfg expertise
      • Data model flexibility
      • Focus on MDM
      • Teradata partnership
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Lack of CDI references
  • 95. Field Report: IBM WebSphere Customer Center (DWL)
    • Weaknesses
      • BPM story is weak
      • Only deterministic matching (until QualityStage integration 1Q2007)
      • “ Forced fit” with WebSphere family (Product Center, Integration Center)
    • Strengths
      • 3rd gen supporting both data & process hub models
      • Financial services expertise
      • Public references
        • BellCanada, CitiBank, COUNTRY, MetLife, Nationwide, SunTrust, UnumProvident
      • Momentum
        • BankAmerica, Carlson, Staples, …
      • Robust web services solution; IBM software stack sycophant
      • IBM BCS channel
  • 96. Field Report: Initiate Systems Identity Hub
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Persistence story unsubstantiated
      • Lack of integrated DQ
    • Strengths
      • Fast time-to-value
      • Public references
        • Countrywide, Hyatt, Intuit, Microsoft, US VA, …
      • Healthcare, hospitality & retail pharmacy expertise
      • Probabilistic matching
      • Real-time match scalability
      • Fast growth curve via new business
  • 97. Field Report: Kalido MDM
    • Strengths
      • Public references
        • BP, InBev, Owens Corning, Shell, …
      • MDM methodology
      • Reference data support
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Enterprise DW positioning overlay
  • 98. Field Report: Oracle Customer Data Hub
    • Weaknesses
      • High-end references
      • Only supports Oracle workflow
      • Fair-to-meek customer recognition capability
      • Limited “read” security
      • Best fit is mid-market and B2B
      • Lack of industry-specific data models
    • Strengths
      • Mid-market references
        • BBC-TV, Church Pension Group, IHOP, Master Lock, Network Appliances, The CIT Group, …
      • High-tech mfg expertise
      • Executive-level commitment
      • Trading community architecture
      • Integrated DQ & analytics
      • Future integration with Oracle DB
  • 99. Field Report: Oracle-Siebel Universal Customer Master
    • Weaknesses
      • Public references
        • Only ENI, MCI, SARS, …
      • Loss of Siebel staff due to M&A
      • Perceived issues in scaling
    • Strengths
      • Dedicated sales force
      • Retail banking expertise
      • Fast growth via add-on business to SFA/CRM/UAN
      • “ Nexus” next gen (SCA) composite architecture
      • Integrated DQ & analytics
      • Future Oracle integration
  • 100. Field Report: Purisma Customer Registry
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Scarce references
    • Strengths
      • Hierarchy management
      • B2B model
      • Business Objects integration partnership
      • Cross investments (Informatica, Hyperion, …)
  • 101. Field Report: SAP NetWeaver Master Data Management
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Overcommitted to product/supplier theme vs. customer/employee (due summer 2006 with MySAP CRM data model)
    • Strengths
      • “ Name” references
        • McKesson, Nortel, Rubbermaid, Whirlpool, …
      • Supply chain expertise
      • Product information management focus
      • Image management (catalog publishing)
      • New capabilities via acquisition
        • e.g., A2i (xCat System), Callixa, …
  • 102. Field Report: SAS/DataFlux
    • Weaknesses
      • Minimal references
      • Lack of SI channels
      • Lack of BPM/workflow for “policy hubs”
    • Strengths
      • Integrated DQ
      • Multi-entity data model
      • Data governance
      • SAS “deep pockets”
      • SAS channel
      • SOA
      • Scalability reference via Amgen
  • 103. Field Report: Siperian Master Reference Manager
    • Strengths
      • Public references
        • Allergan, DTCC, Genentech, Lexis Nexis, Pfizer, Roche, SanLam, State Street Bank, …
      • Pharma expertise
      • Data model flexibility
      • Hierarchy management
    • Weaknesses
      • Lack of strong SI channel
      • Under invested in marketing
      • Focus on batch vs. just-in-time
      • “ Pharma-centric”
  • 104. Bottom Line
    • Acknowledge that no one does it all “well”
      • Customer vs. product
      • B2B vs. B2C vs. B2B2C
      • Batch vs. real-time
    • Industry expertise matters
    • Test drive matching & consulting expertise
    • Apply data stewardship tools for business users as vital for long-term data sustainability
  • 105. CDI Case Study: United Airlines’ “Enterprise Customer Profile”
    • Major challenge in customer knowledge & treatment
    • Customer profile info gathered through various customer touch points, but not synchronized nor available to all channels
    • Expand common PW across channels — IVR & wireless
    • Need to increase customer satisfaction & loyalty by making amends to customers’ disservice (e.g., lost bag or delayed flight)
    • Highly available & scalable architecture to support required OLTP levels
    • Integration among second-generation CRM interactions for key systems, including reservations, frequent flyer, call centre — across key channels (Web, wireless, & phone)
    • Coordinated multi-channel campaign mgmt, channel optimization, & advanced analytics
    Became 1st airline to offer booking capabilities via wireless Internet devices — available instantly via same customer PW & personal info from Web site Business Issues Technology Solution
  • 106. Case Study: CitiCard’s “Enterprise Customer Hub” (ECH)
    • Reduce net credit loss
    • Increase customer base
    • Support future business objectives (e.g., M&A)
    • Reduce operating expenses
    • Gain competitive advantage over closest competitors
    • Ensure consistent customer service across all channels
    • Invest in strategic “architecture” leveraged across entire enterprise
    • Deployed ECH — vs. front-end solution, data warehouse, or customer info file
    • Integrated marketing campaign system to increase responses & increase its customer base
    • Managed privacy contact preferences in single location & provided to all channels — telemarketing, centre marketing, call centre
    Achieved competitive advantage in operational excellence over nearest competitors — “M&A ready” Business Issues Technology Solution
  • 107. Case Study: Fleet Financial’s “Real-Time Customer Data Mgmt”
    • Need to integrate customer data, processes, & views across disparate CRM applications
    • Challenged by inter-app data & process integration issues requiring adoption of new CDI technologies
    • Need for employee portal as single point of access to multi-app customer views
    • Leverage of existing investments in Oracle, Sun, Siebel, MicroStrategy plus many in-house built apps
    • Delivery of workflow-based employee portal to integrate SFA, DW, BI, cust. profitability, loan pricing/ approval & document mgmt apps
    • Build on existing portal infrastructure by incorporating new CDI technologies in R/T cust. data reconciliation & inter-app process integration
    Increased cross-sell revenue by US$700M across sales, marketing, & portfolio mgmt — reducing underperforming assets by US$12B Business Issues Technology Solution
  • 108. CDI Case Study: Intuit’s Party Reference System
    • Major challenge in customer knowledge & treatment
    • Tens of millions of customers, thousands of which interact with company every day via multiple call centres, web sites & service/support email accounts
    • Had to pull customer data from six separate systems into a single registry, & then scrub & merge data while maintaining already recognized existing relationships
    • R/T identity mgmt capable of scaling to 100 million customers with sub-second response times for customer-facing applications
    • “ Federated” approach with individual business lines keeping ownership of master customer data & subscribed to data feeds from central system
    • Core business services were subsequently developed by corporate IT to support centralized DQ & identity mgmt via SOA
    Loosely-coupled architecture comprised of “party reference system” business services allowed for distributed autonomy across LOBs while centrally maintaining “trustworthy” data Business Issues Technology Solution
  • 109. Key Business Outcomes for Intuit
    • Reduced software costs for data standardization because they can now verify against one source instead of six
    • Reduced direct mktg costs by due to elimination of duplicate & redundant customer records
    • Increased cross-sell & up-sell revenue by having a complete picture of customer's account at various points of service
    • Reduced customer churn by materializing more accurate records “on demand” & “just in time” to resolve more billing & support issues faster
    • Increased customer privacy compliance requests by applying privacy wishes from two existing systems to four additional systems
    • Reduced hardware & software fees by reducing volume of master customer records under management & thus all related storage, maintenance & development costs
    By customizing commercial CDI solution over a period of 6+ months, mfgr reengineered entire end-to-end customer processes to enable it to better serve its customers & grow its business
  • 110. Intuit’s CDI Implementation Characteristics More robust fail-over capabilities; increased administrative capabilities for exception handling Next stage in CDI evolution Data custodian, data quality steward New or enhanced positions arising from CDI Customer privacy preferences, email and contact addresses, housekeeping data Unique fields kept in central customer master D&B, Verisign, Wells Fargo Business partner data sources to integrate D&B, Experian, marketing data providers 3 rd party data sources to aggregate 150 transactions per second against 150 million call centre records Peak match/merge rate Six business lines Number of business units sharing master customer data Siebel call centre, Oracle financials Primary Application Vendors 50 million parties/customers Number of customers Description Dimension
  • 111. Bottom Line: Active BU Participation in Data Governance & Data Steward Functions is Vital
    • Plan for IT organizational change mgmt to support CDI/MDM efforts
    • Work with business leadership to design & refine the “future state” business processes associated with new CDI/MDM commitments
    • To a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of CDI/MDM initiative
    • Without C-level support, BUs will find it difficult to contribute funding & resources necessary to launch a CDI/MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)
    • After initial development of a CDI/MDM system, continued support by BUs is essential & must include:
      • Ongoing participation in development of business rules and resolution of master data match/merge issues
      • Ongoing commitment to update both applications and business processes to leverage core data stored in master data hub
  • 112. How to Leverage the CDI Institute
    • Kickstart the “CDI evaluation process”
      • Attend public workshop
      • Bring workshop on-site
    • Finetune in-process CDI strategies
      • Due diligence on reference checking & contract details
    • Stay ahead of curve via CDI Business Council
      • Re-qualify every 6 months via survey
      • Receive CDI News Alerts and access to Web-hosted research
    • Increase your CDI knowledge & negotiating strengths via CDI Advisory Council Membership
      • Participate in monthly email surveys & receive updated industry scorecard
      • Receive unlimited CDI consultation via telephone
    “ Independent, Authoritative, & Relevant”
  • 113. Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The CDI Institute a.k.a.