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Adopting a Process-Driven Approach to Master Data Management
September 6, 2011   |  Software AG - Get There Faster  |    Jignesh Shah VP, Business Infrastructure Products & Solutions,...
The Traditional Approach: Data-Focused MDM September 6, 2011   |  Software AG - Get There Faster  |    Address data manage...
Challenges with Data-focused MDM September 6, 2011   |  Software AG - Get There Faster  |    Data-focused MDM Takes too lo...
September 6, 2011   |  Software AG - Get There Faster  |
Adopting A Process-Driven Approach To Master Data Management <ul><li>Rob Karel, Principal Analyst </li></ul><ul><li>March ...
Master Data Management defined: <ul><ul><li>A business capability enabling an organization to first identify trusted maste...
September 6, 2011   |  Software AG - Get There Faster  |    AUDIENCE  POLL
Master Data Management is not – and should never have been – about the data… … the vision for MDM is to improve the busine...
Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both ...
Minimal cooperation between MDM and business process efforts today <ul><li>67% report minimal or no interaction. </li></ul...
Source: November 22, 2010, “Avoid Process Data Headaches: Align Business Process And Data Governance Initiatives” Forreste...
…and present high risk for data-centric initiatives not connecting quality data to process context Fragile or weak data fo...
Root cause: business process and data management professionals play hard to get Data Pro “ All she ever thinks about is th...
Effective data management requires a focus on business process. Forrester calls this approach Process Data Management. The...
The Process Data Management truism: Process and data are two sides of the same coin
Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both ...
Business process optimization not on the radar for most data-centric initiatives February 2011  “Trends 2011: It’s Time Fo...
Yet alignment of data management and business process efforts is required to drive MDM success Data Process
Three flavors of dependent business processes must be scoped in all MDM efforts (1)  Upstream  business processes that cre...
Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both ...
Suggestion 1: Embrace your business analysts as stewards. They are the key to process data governance
You already employ a wide variety of business analyst expertise…
… and business analysts excel at bridging the intimidating process/data divide Process  Data  Language barrier
Suggestion 2: Establish a virtuous cycle of process data success Governance Is there accountability for process and data t...
Suggestion 3: Ensure your MDM strategies are Process-, and not Data-focused <ul><li>What business processes and decisions ...
Suggestion 4: Use business-driven KPIs to recruit business sponsors for MDM Today  IT Data Mgmt Pros Focus on… … business ...
Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both ...
Recommendations <ul><ul><li>Accept the fact that process improvement and data quality are intimately linked and must work ...
Thank you <ul><li>Rob Karel </li></ul><ul><li>+1 650.581.3821 </li></ul><ul><li>[email_address] </li></ul><ul><li>Twitter:...
How does Software AG enable Process-Driven MDM? September 6, 2011   |  Software AG - Get There Faster  |    Methodology & ...
Process-driven MDM Methodology Education &  Training MDM Program Management Operation Implementation Assessment &  Advisor...
MDM Audit - a holistic ARIS-based Review of all Dimensions of Master Data Management 09/06/11   |  Software AG - Get There...
webMethods OneData MDM Platform September 6, 2011   |  Software AG - Get There Faster  |    webMethods OneData Legacy Cust...
OneData Supports All Domains and Subject Areas Brand Group Brand SKU Category Sub-category Order Customer Customer Group C...
webMethods OneData September 6, 2011   |  Software AG - Get There Faster  |    Multi-domain platform Multiple styles, oper...
Successful Customers September 6, 2011   |  Software AG - Get There Faster  |    Financial Insurance Consumer Products Hea...
What you can do next Read Information Difference Report Available at:  softwareag.com/mdm View OneData Demo  Schedule Proc...
September 6, 2011   |  Software AG - Get There Faster  |    Q and A Jignesh Shah [email_address] Twitter: @jshah0209 Rob K...
What you can do next Read Information Difference Report Available at:  softwareag.com/mdm View OneData Demo  Schedule Proc...
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Adopting a Process-Driven Approach to Master Data Management

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What is a lasting solution to the sea of errors, headaches, and losses caused by inconsistent and inaccurate master data such as customer and product records? This is the data that your business counts on to operate business processes and make decisions. But this data is often incomplete or in conflict because it resides in multiple IT systems. Master Data Management (MDM)'s programs are the solution to this problem, but these programs can fail without the investment and involvement of business managers.

Listen to Rob Karel, Forrester analyst, and Jignesh Shah from Software AG to learn about a new, process-driven approach to MDM and why it is a win-win for both business and IT managers.

Visit us at http://www.softwareag.com Become part of our growing community: Facebook: http://www.facebook.com/softwareag Twitter: http://www.twitter.com/softwareag LinkedIn: http://www.linkedin.com/company/software-ag YouTube: http://www.youtube.com/softwareag

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Adopting a Process-Driven Approach to Master Data Management

  1. 1. Adopting a Process-Driven Approach to Master Data Management
  2. 2. September 6, 2011 | Software AG - Get There Faster | Jignesh Shah VP, Business Infrastructure Products & Solutions, Software AG Rob Karel Principal Analyst Forrester Research
  3. 3. The Traditional Approach: Data-Focused MDM September 6, 2011 | Software AG - Get There Faster | Address data management & quality challenges Objective Disjointed data in system silos Focus DM/DQ Metrics: duplicate reduction, errors ROI Almost always IT-driven, limited business involvement Owner
  4. 4. Challenges with Data-focused MDM September 6, 2011 | Software AG - Get There Faster | Data-focused MDM Takes too long, too little value IT stuck with a problem that requires business involvement Many scream for quality master data, few willing to pay for it
  5. 5. September 6, 2011 | Software AG - Get There Faster |
  6. 6. Adopting A Process-Driven Approach To Master Data Management <ul><li>Rob Karel, Principal Analyst </li></ul><ul><li>March 30, 2011 </li></ul>
  7. 7. Master Data Management defined: <ul><ul><li>A business capability enabling an organization to first identify trusted master data and then leverage master data to improve business processes and decisions . </li></ul></ul>
  8. 8. September 6, 2011 | Software AG - Get There Faster | AUDIENCE POLL
  9. 9. Master Data Management is not – and should never have been – about the data… … the vision for MDM is to improve the business processes and decisions master data enables!
  10. 10. Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both process and data initiatives deliver greater value. Suggestions to align existing data management and business process optimization efforts. Recommendations
  11. 11. Minimal cooperation between MDM and business process efforts today <ul><li>67% report minimal or no interaction. </li></ul><ul><li>17% say BPM and MDM are separate, but interact and coordinate regularly. </li></ul><ul><li>9% share the same cost center. </li></ul><ul><li>7% use a coordinated approach. </li></ul><ul><li>Base: 188 MDM-savvy IT professionals </li></ul>Source: November 2010 Global Master Data Management Online Survey.
  12. 12. Source: November 22, 2010, “Avoid Process Data Headaches: Align Business Process And Data Governance Initiatives” Forrester report. Underlying data quality issues grind BPM implementations to a halt…
  13. 13. …and present high risk for data-centric initiatives not connecting quality data to process context Fragile or weak data foundation Business processes without data considerations Predictive analytics Strong data management foundation Processes connected to master data Trusted predictive analytics Low-quality outcomes High-quality outcomes
  14. 14. Root cause: business process and data management professionals play hard to get Data Pro “ All she ever thinks about is the data.” “ Why do you keep ignoring me?” Resulting culture? BP Pro “ If I build it they will come” “ Data is an IT problem”
  15. 15. Effective data management requires a focus on business process. Forrester calls this approach Process Data Management. The solution?
  16. 16. The Process Data Management truism: Process and data are two sides of the same coin
  17. 17. Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both process and data initiatives deliver greater value. Suggestions to align existing data management and business process optimization efforts. Recommendations
  18. 18. Business process optimization not on the radar for most data-centric initiatives February 2011 “Trends 2011: It’s Time For The Business To Own Master Data Management Strategies”
  19. 19. Yet alignment of data management and business process efforts is required to drive MDM success Data Process
  20. 20. Three flavors of dependent business processes must be scoped in all MDM efforts (1) Upstream business processes that create, update, purchase or import data Capture (3) Operational and analytical processes that derive insight and value from data Consume (2) Stewardship processes that cleanse, repair, reconcile, escalate and approve data discrepancies Govern
  21. 21. Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both process and data initiatives deliver greater value. Suggestions to align existing data management and business process optimization efforts. Recommendations
  22. 22. Suggestion 1: Embrace your business analysts as stewards. They are the key to process data governance
  23. 23. You already employ a wide variety of business analyst expertise…
  24. 24. … and business analysts excel at bridging the intimidating process/data divide Process Data Language barrier
  25. 25. Suggestion 2: Establish a virtuous cycle of process data success Governance Is there accountability for process and data throughout the entire life cycle? Scoping and assessment Are we structuring and analyzing process data across internal silos? Have we identified the “critical few”? Requirements Do process models show relationships to existing master data? Do trusted data models show relationship to processes? Architecture and solution Do our business, data, and application architectures support all data capture, govern, and consume use cases? Monitoring Can we measure the business value process data management delivers? Iterative feedback
  26. 26. Suggestion 3: Ensure your MDM strategies are Process-, and not Data-focused <ul><li>What business processes and decisions are most important to the organization? </li></ul><ul><li>What information is used to support those processes and decisions? </li></ul><ul><li>What people, systems, and processes create, capture, and update that information? </li></ul><ul><li>What is your level of confidence when using that information? </li></ul>
  27. 27. Suggestion 4: Use business-driven KPIs to recruit business sponsors for MDM Today IT Data Mgmt Pros Focus on… … business leaders really care about: Eliminating duplicate/orphaned data Increasing revenue Standardizing and centralizing data/ metadata Decreasing costs Meeting operational SLAs Increasing operational efficiencies Data enrichment Reducing risks Data integration and synchronization Improving customer experiences Use business-value driven KPIs to evangelize MDM benefits Reduction in direct marketing postage costs Reduction in average handle time in call center Increase in customer self-service for order management, technical support and customer service Increase in campaign response rates Reduction in customer privacy compliance risk exposure Delivering a consistent cross-channel customer experience
  28. 28. Agenda Business process and data management efforts not aligned today. A focus on process data management can ensure both process and data initiatives deliver greater value. Suggestions to align existing data management and business process optimization efforts. Recommendations
  29. 29. Recommendations <ul><ul><li>Accept the fact that process improvement and data quality are intimately linked and must work hand in hand. </li></ul></ul><ul><ul><li>Review key tasks and roles that share common characteristics across process improvement and master data initiatives. </li></ul></ul><ul><ul><li>Hold joint process data governance session to develop initial road map for synchronizing key tasks and deliverables. </li></ul></ul><ul><ul><li>Document policies and governance standards for creating and maintaining a virtuous cycle of process data management. </li></ul></ul>
  30. 30. Thank you <ul><li>Rob Karel </li></ul><ul><li>+1 650.581.3821 </li></ul><ul><li>[email_address] </li></ul><ul><li>Twitter: @rbkarel </li></ul>
  31. 31. How does Software AG enable Process-Driven MDM? September 6, 2011 | Software AG - Get There Faster | Methodology & Expertise for Process-Driven MDM Technology for Process-Driven MDM
  32. 32. Process-driven MDM Methodology Education & Training MDM Program Management Operation Implementation Assessment & Advisory Industry Scenarios & Reference Processes MDM Audit MDM Optimization Customized Workshops Technical Product Trainings MDM Monitoring & Control MDM Conception & Process Design webMethods OneData Implementation
  33. 33. MDM Audit - a holistic ARIS-based Review of all Dimensions of Master Data Management 09/06/11 | Software AG - Get There Faster | Processes <ul><li>Data maintenance at the point of creation </li></ul><ul><li>Reasonable process sequence </li></ul><ul><li>Process performance mgmt. / controlling </li></ul><ul><li>Removal of paper based processes </li></ul><ul><li>Integrated in time-to-market process </li></ul><ul><li>Content selected + described </li></ul><ul><li>Unified master data structures </li></ul><ul><li>Current data + completed data </li></ul><ul><li>To avoid duplicates </li></ul>Data Organization <ul><li>To define master data responsibility </li></ul><ul><li>To set up MD organization </li></ul><ul><li>To control+ enhance process-+data quality </li></ul>Employee <ul><li>To establish process understanding </li></ul><ul><li>Awareness for importance of master data </li></ul><ul><li>Training </li></ul><ul><li>Authorization concept </li></ul>IT Architecture <ul><li>To avoid master data interfaces </li></ul><ul><li>To avoid redundancies </li></ul><ul><li>To define leading maintenance systems </li></ul><ul><li>International guideline system </li></ul><ul><li>Process automation by workflow </li></ul>Findings are kept and managed in an ARIS model that can be used as a basis for the implementation phase.
  34. 34. webMethods OneData MDM Platform September 6, 2011 | Software AG - Get There Faster | webMethods OneData Legacy Custom External Data Providers Reconcile Cleanse Organize Govern Sync Operational Use Analytical Use
  35. 35. OneData Supports All Domains and Subject Areas Brand Group Brand SKU Category Sub-category Order Customer Customer Group Customer Type Transactional Data Operational MDM Analytical MDM Customer Address Vendor Vendor Risk Rating Chart of Accounts Country Product Customer Vendor COA Geography
  36. 36. webMethods OneData September 6, 2011 | Software AG - Get There Faster | Multi-domain platform Multiple styles, operational & analytical Drop-in, extensible data model Highly configurable, no coding Business-user friendly data-governance Versatile Rapid implementations Leverage existing DM/DQ investments Comprehensive data interchange: direct, services, messaging Legacy Custom External Data Providers Operational Use Analytical Use Reconcile webMethods OneData Cleanse Organize Govern Sync
  37. 37. Successful Customers September 6, 2011 | Software AG - Get There Faster | Financial Insurance Consumer Products Healthcare/Pharmaceuticals Government Office of Personnel Management Federal Aviation Agency Environmental Protection Agency Telecommunications Management Consulting
  38. 38. What you can do next Read Information Difference Report Available at: softwareag.com/mdm View OneData Demo Schedule Process data quality workshop
  39. 39. September 6, 2011 | Software AG - Get There Faster | Q and A Jignesh Shah [email_address] Twitter: @jshah0209 Rob Karel +1 650.581.3821 [email_address] Twitter: @rbkarel
  40. 40. What you can do next Read Information Difference Report Available at: softwareag.com/mdm View OneData Demo Schedule Process data quality workshop

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