Bhawani prasad mdm-cdi-methodology


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Bhawani prasad mdm-cdi-methodology

  1. 1. Business Intelligence (BI) Capability MDM - Customer Data Integration Prepared By: Bhawani Nandan Prasad
  2. 2. © 2006 The CDI Institute 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 ...‖
  3. 3. © 2006 The CDI Institute 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 Zones 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
  4. 4. © 2006 The CDI Institute 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 fulfillment  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
  5. 5. © 2006 The CDI Institute 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 2013 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‖
  6. 6. © 2006 The CDI Institute 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
  7. 7. © 2006 The CDI Institute 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?”
  8. 8. © 2006 The CDI Institute Market Maturation  During 2005-10, 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 2011-13, CDI solutions will come to market for the midsize enterprise from Microsoft and Oracle plus the Data Quality vendors (Pitney Bowes, SAS/Data Flux, Trillium)  By 2013, the market for CDI-MDM solutions (software and services) will exceed US$1B CDI-MDM MILESTONE
  9. 9. © 2006 The CDI Institute 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 CDI-MDM MILESTONE
  10. 10. © 2006 The CDI Institute CDI Momentum 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 ViewCustomer- Centric View Universal Customer View CDI 360 º Customer View Master Customer Info File Customer System of Record
  11. 11. © 2006 The CDI Institute Working Definitions Data Governance (DG) 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. Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset. 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. ―84% of businesses surveyed believe that poor DG can cause: limited user acceptance, lower productivity, reduced business decision accuracy, & higher TCO
  12. 12. © 2006 The CDI Institute ―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
  13. 13. © 2006 The CDI Institute 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
  14. 14. © 2006 The CDI Institute 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
  15. 15. © 2006 The CDI Institute 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
  16. 16. © 2006 The CDI Institute 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
  17. 17. © 2006 The CDI Institute 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 0% 10% 20% 30% 40% 50% Basic Foundational Advanced Distinctive FSP Non-FSP
  18. 18. © 2006 The CDI Institute The CUSTOMER:PRODUCT Conundrum  JIT, 21st 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 Pricing Authorized Products Bundles Cross-Reference Hierarchies Geographical Variants Regional Variants CUSTOMER PRODUCT SOA mandates ―Customer‖ + ―Product‖ MDM – however, ―customer‖ cannot simply be added as object to PIM products
  19. 19. © 2006 The CDI Institute 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 4th generation, full spectrum hubs (support for structured & unstructured info with extreme scalability) CDI-MDM MILESTONE
  20. 20. © 2006 The CDI Institute Most Common CDI Topologies IMPLEMENTATION STYLE DESCRIPTION External (Service Provider) • Database marketing providers • Data service providers / service bureaus Persistent (Database) • Master customer information file/database • Operational data store/active data warehouse • Relational DBMS + Extract-Transform-Load (ETL) + Data Quality (DQ) Registry (Virtual) • Metadata layer + distributed query (enterprise information integration or EII) • Enterprise application integration (EAI) • Portal Composite (Hybrid) • Ability to fine-tune performance and availability by altering amount of master data persisted • XML, web services, service-oriented architecture (SOA) ―Chernobyl‖ • Encapsulate legacy applications ―Composite (Hybrid Hub)‖ is architectural preference for 40%
  21. 21. © 2006 The CDI Institute 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
  22. 22. © 2006 The CDI Institute 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‖
  23. 23. © 2006 The CDI Institute 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
  24. 24. © 2006 The CDI Institute 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
  25. 25. © 2006 The CDI Institute 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
  26. 26. © 2006 The CDI Institute 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 DataIntegration EAI ETL EII CDI Hub Application Server RDBMS Server Web Self- service VRU Telemarketing Call Center ATM Branch Kiosk Personal Banker DepositsConsumer Credit Cards Wealth Management
  27. 27. © 2006 The CDI Institute 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
  28. 28. © 2006 The CDI Institute 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
  29. 29. © 2006 The CDI Institute Banking CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
  30. 30. © 2006 The CDI Institute 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
  31. 31. © 2006 The CDI Institute 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
  32. 32. © 2006 The CDI Institute 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
  33. 33. © 2006 The CDI Institute Credit Card Issuer CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
  34. 34. © 2006 The CDI Institute 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
  35. 35. © 2006 The CDI Institute 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
  36. 36. © 2006 The CDI Institute Insurance CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
  37. 37. © 2006 The CDI Institute 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
  38. 38. © 2006 The CDI Institute Top 5 Vendors‘ Mindshare within Financial Svcs 2% 3% 45% 82% 85% 0% 20% 40% 60% 80% 100% % Responses 1 CDIVendorMindshare FinancialServices CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004) DWL Customer Siebel Universal Customer Master IBM Client Information Integration Solution Sanchez CRM ISI Synchronous
  39. 39. © 2006 The CDI Institute 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
  40. 40. © 2006 The CDI Institute Top 5 CDI Vendors‘ Mindshare within Telco 2% 3% 5% 15% 16% 0% 5% 10% 15% 20% % Responses 1 CDIVendorMindshare Telecommunications CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004) DWL Customer Oracle Customer Data Hub Initiate Systems Identity Hub Siebel Universal Customer Master Ascential Enterprise Integration Suite
  41. 41. © 2006 The CDI Institute 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 Tactical ROI • 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 Strategic ROI • Understanding & predicting customers‘ behaviors • Identifying & deflecting competitors‘ moves • Integrating supply chains with key business partners • Forecasting & acting on new opportunities as a ―first mover‖
  42. 42. © 2006 The CDI Institute CDI Market Pulse™ 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 Market Pulse™ Survey of 12 North American CSP’s IT Organizations 100% 92% 75% 75% 61% 0% 20% 40% 60% 80% 100% % Responses 1 Corporate alignment Increase customer satisfaction and retention Increased operational efficiencies Increased profitability Market dominance
  43. 43. © 2006 The CDI Institute CDI Market Pulse™ 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 Market Pulse™ Survey of 12 North American CSP’s IT Organizations 18% 43% 57% 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% % Responses 1 Enable product bundling Expedite time to mkt of new products Systematize analytics to enable LTV mktg Evolve to R/T mktg campaign mgmt Enable solution selling
  44. 44. © 2006 The CDI Institute 15% 17% 42% 50% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % Responses 1 Legacy app ingtegration (CRIS, LEIS, LEIM, USOCs) Business process/workflow integration Database/data model integration Scalability SOA for business services infrastructure CDI Market Pulse™ 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 Market Pulse™ Survey of 12 North American CSP’s IT Organizations
  45. 45. © 2006 The CDI Institute 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 Contracte d Accounts Specialty Physicians Primary Care Physicians Health Care Professional Group Purchasin g Orgs Pharmacy Directors & Other Influencers Wholesalers / Speciality Distributors 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
  46. 46. © 2006 The CDI Institute 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
  47. 47. © 2006 The CDI Institute 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
  48. 48. © 2006 The CDI Institute 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
  49. 49. © 2006 The CDI Institute 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
  50. 50. © 2006 The CDI Institute 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 Supply Chain & Mfg Data: CAPA, RFID, & ECM Clinical & Marketing Data Data Protection & Privacy Initiatives: 21 CFR Part 11 & HIPAA Very Large Data Base(s) Pharma Info Overload
  51. 51. © 2006 The CDI Institute 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
  52. 52. © 2006 The CDI Institute Legacy Pharma ―Info Supply Chain‖ ODS DW CARS Siebel IMS Wholesaler Fed Govt SMG SAP ContractingAMA 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 OfficeODS = operational data store DW = data warehouse CARS = xxxx ―Treading water …‖
  53. 53. © 2006 The CDI Institute Contemporary Pharma ―Info Supply Chain‖ CDI Registry/ Hub Active Data Warehouse CARS Siebel IMS Wholesaler Fed Govt SMG SAP ContractingAMA 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 …‖
  54. 54. © 2006 The CDI Institute Top 5 Mindshare within LifeSci/Pharma 3% 5% 18% 43% 65% 0% 10% 20% 30% 40% 50% 60% 70% % Responses 1 CDIVendorMindshare Pharma/Life-Sciences CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004) Siperian Master Reference Manager Siebel Universal Customer Master Dendrite Nucleus Ascential Enterprise Integration Suite IBM DB2 Information Integrator
  55. 55. © 2006 The CDI Institute 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
  56. 56. © 2006 The CDI Institute 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
  57. 57. © 2006 The CDI Institute 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  USA PATRIOT Act  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’ behaviors to support national security initiatives – & will increasingly turn to commercial IT sector for ―outside the box‖ thinking & best practices
  58. 58. © 2006 The CDI Institute Top 5 CDI Vendor‘s Mindshare within Public Sector 1% 3% 4% 5% 6% 0% 1% 2% 3% 4% 5% 6% % Responses 1 CDIVendorMindshare PublicSector CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004) Initiate Systems Identity Hub Ascential Enterprise Integration Suite Siebel Universal Customer Master MetaMatrix Server ObjectStar Enterprise CDI
  59. 59. © 2006 The CDI Institute 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
  60. 60. © 2006 The CDI Institute 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
  61. 61. © 2006 The CDI Institute Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Business Drivers 100% 92% 75% 0% 20% 40% 60% 80% 100% % Responses 1 CDIBusinessDrivers CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005) Increase customer satisfaction and retention Increase profitability Create operational efficiencies
  62. 62. © 2006 The CDI Institute Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Technology Challenges 100% 100% 92% 88% 90% 92% 94% 96% 98% 100% % Responses 1 CDITechnologyChallenges CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005) Increase flexibility to add new processes via service-oriented architecture Integrate with legacy applications and databases Provide extreme scalability in data volumes
  63. 63. © 2006 The CDI Institute HCP CDI Implementation Characteristics CDI Dimension Healthcare Payer Specifics Number of customers 3 million members; 1.6 million providers Primary application vendors Siebel call centres Home-grown membership and eligibility management Databases sharing master customer (member, provider) data Member data management Eligibility management Claims case management Disease management Provider data management Contract and credentialing Pharmacy benefit management External partners sharing customer data Service providers’ prescription benefits management Provider data management New or enhanced positions arising from CDI Enterprise data architect Customer master data custodian Data quality steward
  64. 64. © 2006 The CDI Institute ―Top 10‖ CDI Evaluation Criteria 1. Customer data model 2. Business services 3. Identity management 4. Data management 5. Architecture 6. Infrastructure 7. Connectivity 8. Analytics 9. Developer productivity 10.Vendor integrity Infrastructure fracas will escalate as mega app vendors rush to dominate business services/processes & data models as high ground
  65. 65. © 2006 The CDI Institute #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
  66. 66. © 2006 The CDI Institute #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
  67. 67. © 2006 The CDI Institute #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
  68. 68. © 2006 The CDI Institute #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
  69. 69. © 2006 The CDI Institute #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
  70. 70. © 2006 The CDI Institute #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
  71. 71. © 2006 The CDI Institute #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
  72. 72. © 2006 The CDI Institute #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
  73. 73. © 2006 The CDI Institute #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)
  74. 74. © 2006 The CDI Institute #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
  75. 75. © 2006 The CDI Institute #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
  76. 76. © 2006 The CDI Institute 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
  77. 77. © 2006 The CDI Institute 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
  78. 78. © 2006 The CDI Institute 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
  79. 79. © 2006 The CDI Institute 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
  80. 80. © 2006 The CDI Institute Field Report: IBM WebSphere Customer Center (DWL)  Weaknesses  BPM story is weak  Only deterministic matching (until QualityStage integration)  ―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
  81. 81. © 2006 The CDI Institute 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
  82. 82. © 2006 The CDI Institute 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
  83. 83. © 2006 The CDI Institute 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
  84. 84. © 2006 The CDI Institute 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
  85. 85. © 2006 The CDI Institute 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, …)
  86. 86. © 2006 The CDI Institute 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, …
  87. 87. © 2006 The CDI Institute 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
  88. 88. © 2006 The CDI Institute 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‖
  89. 89. © 2006 The CDI Institute 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
  90. 90. © 2006 The CDI Institute 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
  91. 91. © 2006 The CDI Institute 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
  92. 92. © 2006 The CDI Institute 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
  93. 93. © 2006 The CDI Institute 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
  94. 94. © 2006 The CDI Institute 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
  95. 95. © 2006 The CDI Institute Intuit‘s CDI Implementation Characteristics Dimension Description Number of customers 50 million parties/customers Primary Application Vendors Siebel call centre, Oracle financials Number of business units sharing master customer data Six business lines Peak match/merge rate 150 transactions per second against 150 million call centre records 3rd party data sources to aggregate D&B, Experian, marketing data providers Business partner data sources to integrate D&B, Verisign, Wells Fargo Unique fields kept in central customer master Customer privacy preferences, email and contact addresses, housekeeping data New or enhanced positions arising from CDI Data custodian, data quality steward Next stage in CDI evolution More robust fail-over capabilities; increased administrative capabilities for exception handling
  96. 96. © 2006 The CDI Institute 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
  97. 97. © 2006 The CDI Institute 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‖
  98. 98. © 2006 The CDI Institute Thanks Bhawani Nandan Prasad +91 9717570222