How to Manage Systems Integrators for Your MDM Programs

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Keynote from MDM SUMMIT Fall 2008 in NYC that discusses why one needs an SI, how to evaluate an SI partner for your MDM project/program, and who the major SIs are

http://www.sourcemediaconferences.com/MDMFL08/agenda.html

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  • How to Manage Systems Integrators for Your MDM Programs

    1. 1. Aaron Zornes Chief Research Officer The MDM Institute [email_address] +1 650.743.2278 How to Avoid the SI ‘Money Pit’
    2. 2. Managing the SI Relationship <ul><li>Determining the evaluation criteria for selecting SI partners for MDM projects </li></ul><ul><li>Identifying which SIs are market leaders in your industry & your chosen software technologies </li></ul><ul><li>Managing the SI relationship – esp. avoiding “brain drain” & inflationary “blended rates” </li></ul>Preparing for talent shortages now is the savvy way to avoid the MDM &quot;money pit&quot; later
    3. 3. Why Focus on “SI” Cost Component? <ul><li>MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub </li></ul><ul><li>MDM Institute research finds G5000 enterprise spends average of US $ 1.2 million for MDM software solutions - with addt’l investment of 4X in SI services </li></ul><ul><li>MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs) </li></ul><ul><li>Recent buzz around MDM is rivaled only by intensity with which systems integrators have &quot;found MDM religion&quot; </li></ul>Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to contain costs, but also to insure success of this vital infrastructure investment
    4. 4. Post &quot;Phase Zero&quot; Tasks <ul><li>Determine the MDM product short list </li></ul><ul><li>Perform gap analysis to determine which software must be developed internally & which can be purchased </li></ul><ul><li>Identify a systems integrator (SI) consultancy partner </li></ul><ul><li>Plan for IT organizational change management </li></ul><ul><li>Work with the business leadership to design & refine &quot;future state&quot; business processes associated with new MDM commitments </li></ul>After determining/aligning business strategy …
    5. 5. Areas Where SIs May Provide Value <ul><li>Identify & prioritize business functional requirements </li></ul><ul><li>Recommend build vs. buy </li></ul><ul><li>Provide a solution selection methodology that balances business & technical requirements </li></ul><ul><li>Develop detailed request for proposal (RFP) </li></ul><ul><li>Evaluate & select the right MDM software solution vendor(s) </li></ul>
    6. 6. Areas Where SI Provides Implementation Value <ul><li>Pilot the MDM solution & application integration </li></ul><ul><li>Develop IT & business user communications in addition to training materials </li></ul><ul><li>Define & establish user job roles – e.g., MDM project leads, corporate/LOB data stewards </li></ul><ul><li>Define metrics for ROI or other measurements </li></ul><ul><li>Structure change management & system tuning strategies </li></ul>
    7. 7. “ Top 5” Technical Evaluation Criteria for MDM Systems Integrators <ul><li>#1 – Extensible Data Governance Methodology & Accelerators </li></ul><ul><li>#2 – Industry-Specific Data Model Experience & ETL Mappings </li></ul><ul><li>#3 – SOA Architecture Experience & Accelerators </li></ul><ul><li>#4 – MDM Product Experience </li></ul><ul><li>#5 – MDM Project Experience (industry, geography) </li></ul>Partner's capabilities include their depth & available expertise
    8. 8. Understanding Your SI’s Business Model <ul><li>Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche MDM software vendors with which to align </li></ul><ul><li>Each MDM vendor has </li></ul><ul><ul><li>Vertical industry – e.g., banking or pharmaceutical </li></ul></ul><ul><ul><li>Corporate horizontal functional specialization – e.g., B2B hierarchy rationalization) </li></ul></ul><ul><ul><li>Mind share & brand recognition by virtue of early successes </li></ul></ul>Typical SI Team Drawn From Various Other Practice Teams <ul><li>Enterprise architecture planning, esp. SOA experts </li></ul><ul><li>Enterprise data modeling </li></ul><ul><li>Legacy app reengineering </li></ul><ul><li>Data conversion & application migration </li></ul><ul><li>Data quality </li></ul><ul><li>EAI middleware & BPM experts. </li></ul><ul><li>Analytics & ETL experts </li></ul><ul><li>Testing & QA </li></ul><ul><li>Systems infrastructure mgmt </li></ul><ul><li>Performance engineering </li></ul><ul><li>ROI & cost-model generation (business value articulation) </li></ul>
    9. 9. Data Governance Will Become Major Investment <ul><li>Defining master data governance IT processes </li></ul><ul><li>Establishing & training the data stewardship function </li></ul><ul><li>Designing future state business processes tied to newly founded MDM commitments regarding customer data </li></ul>
    10. 10. How to Keep Staff from Being Shanghai’ed <ul><li>Financial handcuffs </li></ul><ul><li>Personal/corporate recognition </li></ul><ul><li>Career tracks </li></ul><ul><li>Contractual non-compete/”hands-off my people” </li></ul>
    11. 11. MDM SI Round-Up <ul><ul><li>Accenture </li></ul></ul><ul><ul><li>Adjoined </li></ul></ul><ul><ul><li>Alliance Consulting </li></ul></ul><ul><ul><li>Arhis </li></ul></ul><ul><ul><li>ATG </li></ul></ul><ul><ul><li>Atos Origin </li></ul></ul><ul><ul><li>Back Office Associates </li></ul></ul><ul><ul><li>BearingPoint </li></ul></ul><ul><ul><li>BristleCone </li></ul></ul><ul><ul><li>BusinessEdge Solutions </li></ul></ul><ul><ul><li>Cambridge Technology Partners (Novell/CTP) </li></ul></ul><ul><ul><li>Camelot – IDPro AG </li></ul></ul><ul><ul><li>Capgemeni </li></ul></ul><ul><ul><li>Caritor </li></ul></ul><ul><ul><li>CGI-American Management Systems </li></ul></ul><ul><ul><li>Cignex </li></ul></ul><ul><ul><li>Cognizant </li></ul></ul><ul><ul><li>Conversion Services Int’l </li></ul></ul><ul><ul><li>CSC </li></ul></ul><ul><ul><li>Deloitte Consulting </li></ul></ul><ul><ul><li>Diamond Cluster </li></ul></ul><ul><ul><li>EDS (Electronic Data Systems) </li></ul></ul><ul><ul><li>Evaxyx </li></ul></ul><ul><ul><li>Fair Isaac / Braun Consulting </li></ul></ul><ul><ul><li>Fujitsu (formerly DMR) </li></ul></ul><ul><ul><li>Harte-Hanks Data Services </li></ul></ul><ul><ul><li>Highpoint Solutions </li></ul></ul><ul><ul><li>Hitachi Consulting </li></ul></ul><ul><ul><li>HP/Knightsbridge </li></ul></ul><ul><ul><li>IBM Global Business Services </li></ul></ul><ul><ul><li>Infogain </li></ul></ul><ul><ul><li>Infosys </li></ul></ul><ul><ul><li>Lockheed Grumman </li></ul></ul><ul><ul><li>Marks Baughan & Co </li></ul></ul><ul><ul><li>Merckle </li></ul></ul><ul><ul><li>Ness Technologies </li></ul></ul><ul><ul><li>Patni </li></ul></ul><ul><ul><li>Perot Systems </li></ul></ul><ul><ul><li>Project Performance Corporation </li></ul></ul><ul><ul><li>SAIC </li></ul></ul><ul><ul><li>Satyam </li></ul></ul><ul><ul><li>SBS (Siemens Business Services) </li></ul></ul><ul><ul><li>Sierra Atlantic </li></ul></ul><ul><ul><li>Sogeti </li></ul></ul><ul><ul><li>Synergic Partners </li></ul></ul><ul><ul><li>Tata </li></ul></ul><ul><ul><li>TechnoLogix </li></ul></ul><ul><ul><li>Unisys </li></ul></ul><ul><ul><li>VIP Systems </li></ul></ul><ul><ul><li>Wipro </li></ul></ul>
    12. 12. Field Report: Major SIs <ul><li>Accenture AIMS </li></ul><ul><li>Atos Origin </li></ul><ul><li>Cognizant </li></ul><ul><li>CSC </li></ul><ul><li>Deloitte </li></ul><ul><li>EMC /BusinessEdge </li></ul><ul><li>HP /Knightsbridge /EDS </li></ul><ul><li>IBM GBS </li></ul><ul><li>Oracle Pro Svcs </li></ul><ul><li>Tata </li></ul><ul><li>Wipro </li></ul>
    13. 13. Field Report: CDI, MDM & DG Specialists <ul><li>Arhis </li></ul><ul><li>Attevo </li></ul><ul><li>Baseline Consulting </li></ul><ul><li>Back Office Associates </li></ul><ul><li>Caritor </li></ul><ul><li>Consology </li></ul><ul><li>Diamond Mgmt & Technology Consultants </li></ul><ul><li>Epsilon </li></ul><ul><li>HCL </li></ul><ul><li>HighPoint Systems </li></ul><ul><li>Infosys </li></ul><ul><li>LumenData </li></ul><ul><li>Project Performance Corporation </li></ul><ul><li>NorthGate </li></ul><ul><li>Sierra Atlantic </li></ul><ul><li>Sogeti </li></ul><ul><li>Technologix </li></ul><ul><li>Technology Solutions Company </li></ul><ul><li>Unisys </li></ul>
    14. 14. Field Report: Major SIs with Minor Practices <ul><li>BearingPoint </li></ul><ul><li>Capgemini </li></ul><ul><li>CGI-American Management Systems </li></ul><ul><li>Fair Isaac / Braun Consulting </li></ul><ul><li>Fujitsu (Born, DMR) </li></ul><ul><li>Hitachi Consulting </li></ul><ul><li>Lockheed Grumman </li></ul><ul><li>Perot Systems </li></ul><ul><li>PwC </li></ul><ul><li>SAIC </li></ul><ul><li>Satyam </li></ul><ul><li>SBS (Siemens Business Services) </li></ul>
    15. 15. Three Key Business Factors <ul><li>Status of current incumbent relationships at the executive level </li></ul><ul><li>Status of current contracts, and pending contract negotiations (for other projects) </li></ul><ul><li>Business size, partnership direction, and ongoing viability of the SI/consultancy </li></ul>Your organization’s weightings may vary …
    16. 16. Bottom Line: Avoiding the SI Money Pit <ul><li>SIs are often necessary to sell C-level execs </li></ul><ul><ul><li>Without C-level support, BUs will find it difficult to contribute funding & resources necessary to launch an MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all) </li></ul></ul>
    17. 17. Bottom Line: Avoiding the MDM SI Money Pit <ul><li>SIs are needed to coordinate IT & Business </li></ul><ul><ul><li>Readiness & maturity </li></ul></ul><ul><ul><li>Plan for IT organizational change management to support MDM efforts </li></ul></ul><ul><ul><li>Work with business leadership to design & refine the “future state” business processes associated with new MDM commitments </li></ul></ul>
    18. 18. Bottom Line: Avoiding the MDM SI Money Pit <ul><li>SIs are needed to help transform IT organizations </li></ul><ul><ul><li>To a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative </li></ul></ul>
    19. 19. Bottom Line: Avoiding the MDM SI Money Pit <ul><li>After initial development of a MDM system, SIs can help IT & Bus by facilitating: </li></ul><ul><ul><li>Ongoing participation in development of business rules & resolution of master data match/merge issues </li></ul></ul><ul><ul><li>Ongoing commitment to update both applications & business processes to leverage core data stored in master data hub </li></ul></ul>
    20. 20. R x for SI Management Strategies <ul><li>Acknowledge that SIs are essential to success of majority of MDM projects </li></ul><ul><li>Recognize that incumbent SIs are no longer so </li></ul><ul><li>Identify which SIs are market leaders in your industry & your chosen software technologies </li></ul><ul><li>Proactively manage key IT positions </li></ul><ul><li>Leverage SIs for their “value add” </li></ul>Given substantial investment businesses undertake with SI partners, this area must be given scrutiny – not only to contain costs, but to insure success of this vital infrastructure investment
    21. 21. How to Leverage the MDM Institute <ul><li>Kick start the “MDM evaluation process” </li></ul><ul><ul><li>Attend public workshop </li></ul></ul><ul><ul><li>Bring workshop on-site </li></ul></ul><ul><li>Fine tune in-process MDM strategies </li></ul><ul><ul><li>Due diligence on reference checking & contract details </li></ul></ul><ul><li>Stay ahead of curve via MDM Business Council </li></ul><ul><ul><li>Re-qualify every 6 months via survey </li></ul></ul><ul><ul><li>Receive MDM Alerts & access to Web-hosted research </li></ul></ul><ul><li>Increase your knowledge & negotiating strengths via MDM Advisory Council Membership </li></ul><ul><ul><li>Participate in monthly email surveys & receive updated industry scorecard </li></ul></ul><ul><ul><li>Receive unlimited MDM, CDI, & data governance consultation via telephone </li></ul></ul>“ Independent, Authoritative, & Relevant”
    22. 22. Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com a.k.a. www.tcdii.com
    23. 23. About the MDM Institute <ul><li>Founded in 2004 to focus on MDM business drivers & technology challenges </li></ul><ul><li>MDM Advisory Council™ of fifty Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects </li></ul><ul><li>MDM Business Council™ website access & email support to 8,500+ members </li></ul><ul><li>MDM Road Map & Milestones™ annual strategic planning assumptions </li></ul><ul><li>MDM Alert™ bi-weekly newsletter </li></ul><ul><li>MDM Market Pulse™ monthly surveys </li></ul><ul><li>MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas </li></ul><ul><li>MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Sydney, Madrid </li></ul>“ Independent, Authoritative, & Relevant” <ul><li>About Aaron Zornes </li></ul><ul><li>Most quoted industry analyst authority on topics of MDM & CDI </li></ul><ul><li>Founder & Chief Research Officer of the MDM Institute </li></ul><ul><li>Conference chairman for DM Review’s MDM SUMMIT conference series </li></ul><ul><li>Founded & ran META Group’s largest research practice for 14 years </li></ul><ul><li>M.S. in Management Information Systems from University of Arizona </li></ul>
    24. 24. MDM Institute Advisory Council <ul><li>Advisor agrees to provide Institute’s consultants with advice & insight regarding the use of MDM software & related business processes at Advisor’s convenience </li></ul><ul><li>Advisor agrees to participate in at least one fifteen (15) minute survey teleconference call every sixty (60) days </li></ul><ul><li>Optionally, Advisor may respond to the bi-monthly survey request via email or Internet-based survey fulfillment </li></ul><ul><li>Results of such MDM market research surveys shall be aggregated by the Institute & made available to all Advisory Council members </li></ul><ul><li>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 </li></ul>Fifty organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads Representative Members <ul><li>3M </li></ul><ul><li>Bell Canada </li></ul><ul><li>Caterpillar </li></ul><ul><li>Cisco Systems </li></ul><ul><li>Citizens Communications </li></ul><ul><li>COUNTRY Financials </li></ul><ul><li>Educational Testing Services </li></ul><ul><li>GE Healthcare </li></ul><ul><li>Honeywell </li></ul><ul><li>Information Handling Services </li></ul><ul><li>Intuit </li></ul><ul><li>MCI </li></ul><ul><li>McKesson </li></ul><ul><li>Medtronic </li></ul><ul><li>Microsoft </li></ul><ul><li>Motorola </li></ul><ul><li>National Australia Bank </li></ul><ul><li>Nationwide Insurance </li></ul><ul><li>Norwegian Cruise Lines </li></ul><ul><li>Novartis </li></ul><ul><li>Roche Labs </li></ul><ul><li>Rogers Communications </li></ul><ul><li>Scholastic </li></ul><ul><li>SunTrust </li></ul><ul><li>Sutter Health </li></ul><ul><li>Westpac </li></ul><ul><li>Weyerhaeuser </li></ul>

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