“ Milestones on the  MDM Road Map for 2008-2009” MDM SUMMIT Fall 2008 Keynote Aaron Zornes Chief Research Officer The MDM ...
Agenda  <ul><li>Key findings from MDM Institute’s research  “ Enterprise MDM: Market Review & Forecast for 2008-12 ” </li>...
Enterprise Master Data Management:   Market Review & Forecast for 2008-12 <ul><li>MDM Institute MarketPulse™  report avail...
<ul><li>The aggregate enterprise MDM market  (customer & product hubs, plus systems implementation services)  totaled US$7...
Enterprise MDM Market Price Points  2008-12 <ul><li>Market for enterprise MDM solutions continues to evolve  (& will short...
Geographic Growth of MDM Market  2008-12   <ul><li>Multiple factors as to why MDM went global so fast.  One of main cataly...
Enterprise Master Data Management:   Market Review & Forecast for 2008-12 <ul><li>Compliance & regulatory reporting </li><...
Enterprise Master Data Management:   Market Review & Forecast for 2008-12 <ul><li>Rapid growth of MDM market into mid-mark...
Solidified Requirements for  3 rd  Generation MDM Solutions  <ul><li>SOA/shared services architecture with evolution to “p...
Evolving Requirements for  4 th  Generation MDM Solutions  <ul><li>Multi-entity MDM </li></ul><ul><li>Process/policy hub a...
Business Value of Multi-Entity MDM <ul><li>With a 4 th  generation MDM platform, an enterprise will be better able to </li...
MDM Milestones www.tcdii.com/mdmresearch/assumptions.html   <ul><li>Market maturation </li></ul><ul><li>Market momentum </...
Market Maturation Strategic Planning Assumption   <ul><li>During 2008, the MDM market will continue to shift gears from “e...
Market Momentum Strategic Planning Assumption   <ul><li>During 2008, MDM solutions such as IBM, ORCL, SAP, & TDC will mono...
Market Consolidation & Diversification Strategic Planning Assumption <ul><li>During 2008, mega IT vendors  (IBM, ORCL, SAP...
Budgets & Skills Strategic Planning Assumption <ul><li>During 2008, G5000 size enterprises will spend US$1M for MDM softwa...
Career Tracks Strategic Planning Assumption <ul><li>Scarcity of “hands on” MDM  experience exists </li></ul><ul><li>During...
Data Governance Strategic Planning Assumption <ul><li>During 2008, most enterprises will struggle with cross-enterprise da...
MDM Convergence Strategic Planning Assumption <ul><li>During 2008, party & product data interdependencies will quickly bro...
PARTY:PRODUCT Conundrum <ul><li>Different master entity types may require different MDM brands or architectures </li></ul>...
Architecture & Data Models Strategic Planning Assumption <ul><li>During 2008, vendors will expose MDM capabilities as “alw...
Most Common MDM Topologies  Composite/Hybrid is majority architectural preference; Registry/Virtual 2 nd  choice <ul><li>E...
Identity Resolution  Strategic Planning Assumption <ul><li>During 2008, independent DQ vendors  (AddressDoctor, G1, HI, Tr...
Party Data Quality   Strategic Planning Assumption <ul><li>During 2008-09, enterprises will focus more on degree to which ...
Policy Hubs  Strategic Planning Assumption <ul><li>During 2008, MDM vendors will lag their BPM counterparts in providing w...
Enterprise Search Strategic Planning Assumption <ul><li>Through 2008, the unique properties & behavior of master reference...
Solidifying Requirements for  3 rd  Generation MDM Solutions  <ul><li>SOA/shared services architecture evolving to “proces...
What are the Necessary Features of  4 th  Generation MDM Solutions? <ul><li>Multi-entity MDM </li></ul><ul><li>Multiple “u...
Bottom Line Planning Assumptions <ul><li>Acknowledge no single vendor does it all “well”   </li></ul><ul><ul><li>Party vs....
MDM Convergence Strategic Planning Assumption <ul><li>During 2008, party & product data interdependencies will quickly bro...
PARTY:PRODUCT Conundrum <ul><li>Different master entity types & usage styles may require different MDM brands or architect...
Why “Multi-Entity MDM”?  Why Now? <ul><li>Future direction is to grow all reference masters into operational masters </li>...
Market Update for Product Master Data  <ul><li>Adoption of MDM for product is increasingly widespread across all industrie...
Findings <ul><li>The value of “enterprise MDM” can be intuitively recognized in a range of business initiatives – from sho...
Summary <ul><li>Enterprise MDM is major IT initiative underway at large  # of market-leading Global 5000 enterprises </li>...
Bottom Line <ul><li>Promote MDM as essential business strategy  with IT deliverables to leverage high-value info used repe...
MDM SUMMIT™ Conference Series  <ul><li>MDM SUMMIT Canada 2008   Toronto Holiday Inn on King Street | February 4 – 5, 2008 ...
Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com  ...
About the MDM Institute <ul><li>Founded in 2004 to focus on MDM  business drivers & technology challenges </li></ul><ul><l...
MDM Institute Advisory Council  <ul><li>Advisor agrees to provide Institute’s consultants with advice & insight regarding ...
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Key Trends & Planning Assumptions - Conference Keynote for MDM SUMMIT Fall 2008 in NYC

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Keynote from "MDM SUMMIT Fall 2008" held October 19-21, 2008 in New York City for 600 attendees

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

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  • All mega vendors will have an MDM story Therefore what is role of BOB vendors Role of mega vendors How does SAP shop address CUSTOMER data How does Oracle-Siebel shop handle PRODUCT data? Different entity type hubs, different brands will be the norm, not the exception … in G5000 enterprise
  • Key Trends & Planning Assumptions - Conference Keynote for MDM SUMMIT Fall 2008 in NYC

    1. 1. “ Milestones on the MDM Road Map for 2008-2009” MDM SUMMIT Fall 2008 Keynote Aaron Zornes Chief Research Officer The MDM Institute [email_address] +1 650.743.2278
    2. 2. Agenda <ul><li>Key findings from MDM Institute’s research “ Enterprise MDM: Market Review & Forecast for 2008-12 ” </li></ul><ul><li>Why multi-entity MDM? Why now? </li></ul><ul><li>What are the necessary features of a fourth-generation hub? </li></ul><ul><li>What is the market outlook for these hubs? </li></ul>
    3. 3. Enterprise Master Data Management: Market Review & Forecast for 2008-12 <ul><li>MDM Institute MarketPulse™ report available October 2008 </li></ul><ul><ul><li>Executive summary </li></ul></ul><ul><ul><li>Overview of enterprise MDM </li></ul></ul><ul><ul><li>Strategic planning assumptions for Global 5000 & SMBs </li></ul></ul><ul><ul><li>Enterprise MDM market forecast for 2008-12 </li></ul></ul><ul><ul><li>Leading MDM vendor profiles & field reports </li></ul></ul><ul><li>Gartner </li></ul><ul><ul><li>“ MDM for customer master will hit ~ $1B in S/W revenue by 2012” </li></ul></ul><ul><ul><li>“ With PIM & other domains, it could be over $2B” </li></ul></ul><ul><li>Forrester </li></ul><ul><ul><li>“ $344M total MDM S/W market size (not including services) in 2006” </li></ul></ul><ul><ul><li>“ MDM anticipated growth to over $2.2B by 2010” </li></ul></ul><ul><li>MDM Institute </li></ul><ul><ul><li>“ Overall MDM market (customer & product hubs, plus systems implementation services) to grow to $2 billion by 2012” </li></ul></ul>Clearly, enterprise MDM is a major IT initiative being undertaken by large number of market-leading Global 5000 size enterprises
    4. 4. <ul><li>The aggregate enterprise MDM market (customer & product hubs, plus systems implementation services) totaled US$730 million at YE2007 & will reach US$2 billion by the end of 2012. </li></ul><ul><li>Software sales are but one portion as MDM systems integration services reached US$510 million alone during 2007 & are projected to exceed US$1.3 billion per year by 2012. </li></ul>Aggregate MDM Software Market 2008-2012 (total $)
    5. 5. Enterprise MDM Market Price Points 2008-12 <ul><li>Market for enterprise MDM solutions continues to evolve (& will shortly include hosted MDM as well), largest market will consist of those deals with s/w licenses ranging between US$1-2M. </li></ul><ul><li>Even large # of SMBs which will take up Microsoft MDM & similar lower priced solutions, sheer number of global 5000 sized firms (yet to crystallize their enterprise MDM strategy) will provide steady pipeline of s/w licenses each in excess of US$1M during 2008-12. </li></ul>$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2008 2009 2010 2011 2012 $2M+ $1-2M $250K-$1M $100-$250K <$100K
    6. 6. Geographic Growth of MDM Market 2008-12 <ul><li>Multiple factors as to why MDM went global so fast. One of main catalysts was IBM’s acquisition of best-of-breed vendor DWL & in turn quick paced ramp up of IBM’s global services organization as well as its global sales & marketing teams. </li></ul><ul><li>Additionally reduction in price points experienced during 2006-07 plus currency fluctuations enabled second & third world countries’ large enterprises to take up this technology initiative. Additionally, markets within China, India, and the Middle East have yet to be truly explored. </li></ul>Americas, $103,800,000 Americas, $127,050,000 Americas, $165,137,500 Americas, $155,000,000 Europe, Mid-East, Africa, $51,900,000 Europe, Mid-East, Africa, $80,850,000 Europe, Mid-East, Africa, $105,087,500 Europe, Mid-East, Africa, $98,000,000 Asia-Pacific, $17,300,000 Asia-Pacific, $23,100,000 Americas, $359,400,000 Europe, Mid-East, Africa, $119,800,000 Asia-Pacific, $30,025,000 Asia-Pacific, $35,000,000 Asia-Pacific, $119,800,000 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 2008 2009 2010 2011 2012
    7. 7. Enterprise Master Data Management: Market Review & Forecast for 2008-12 <ul><li>Compliance & regulatory reporting </li></ul><ul><li>Economies of scale for M&A </li></ul><ul><li>Synergies for cross-sell & up-sell </li></ul><ul><li>Legacy system integration & augmentation </li></ul><ul><li>“Once & done” economies & customer satisfaction </li></ul>Enterprise MDM is increasingly mandated to manage master data (customers, accounts, products, etc.) that has significant impact on enterprises’ most important business processes “ Top Five” Business Drivers for MDM Initiatives
    8. 8. Enterprise Master Data Management: Market Review & Forecast for 2008-12 <ul><li>Rapid growth of MDM market into mid-market as well as across industries & geographies </li></ul><ul><li>Steady evolution away from data-centric hubs into application hubs </li></ul><ul><li>Elemental movement towards “enterprise MDM” in multiple phases </li></ul><ul><li>Futile dogmatic resistance is fading against the power of multiples </li></ul><ul><li>Inexorable shift to formal data governance structures </li></ul>The market for MDM solutions is significantly & quickly expanding – across geographies, industries, & price points “ Top Five” Report Findings
    9. 9. Solidified Requirements for 3 rd Generation MDM Solutions <ul><li>SOA/shared services architecture with evolution to “process hubs” </li></ul><ul><li>Sophisticated hierarchy management </li></ul><ul><li>High-performance identity management </li></ul><ul><li>Data governance-ready framework </li></ul><ul><li>Persisted, registry & hybrid architecture flexibility </li></ul>MDM has morphed from “early adopter IT project” to “Global 5000 business strategy”; phase 2 MDM deployments are already fusing party & product domains MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    10. 10. Evolving Requirements for 4 th Generation MDM Solutions <ul><li>Multi-entity MDM </li></ul><ul><li>Process/policy hub architecture </li></ul><ul><li>Unstructured information support </li></ul><ul><li>Integrated data governance </li></ul><ul><li>Enterprise search </li></ul>G5000 enterprises’ business strategies mandate long term, strategic “multi-entity MDM” – in turn enabled by policy-driven data governance MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    11. 11. Business Value of Multi-Entity MDM <ul><li>With a 4 th generation MDM platform, an enterprise will be better able to </li></ul><ul><ul><li>Identify & provide differentiated service to its most valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers </li></ul></ul><ul><ul><li>Introduce new products & product bundles more quickly across more channels to reduce the cost of New Product Introduction (NPI) </li></ul></ul><ul><ul><li>Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes </li></ul></ul>Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
    12. 12. MDM Milestones www.tcdii.com/mdmresearch/assumptions.html <ul><li>Market maturation </li></ul><ul><li>Market momentum </li></ul><ul><li>Market consolidation </li></ul><ul><li>Budgets/skills </li></ul><ul><li>Data governance </li></ul><ul><li>MDM convergence </li></ul><ul><li>Architecture & data models </li></ul><ul><li>Identity resolution </li></ul><ul><li>Party data quality </li></ul><ul><li>Analytics </li></ul><ul><li>Policy hubs </li></ul><ul><li>Enterprise search </li></ul>Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of evolving MDM vendor landscape
    13. 13. Market Maturation Strategic Planning Assumption <ul><li>During 2008, the MDM market will continue to shift gears from “early adopter” to “mainstream” as 95%+ of financial services, communications services, high tech, & pharma/life sciences enterprises actively explore to replace homegrown MDM solutions </li></ul><ul><li>Through 2009-10, verticalization/horizontalization of MDM solutions will expand beyond corporate financial reporting, EMPI healthcare, etc. into financial services & government especially </li></ul><ul><li>By 2012, the market for enterprise MDM solutions (software & services) as both strategic initiatives & to refresh aging legacy MDM capabilities will exceed US$3B </li></ul>MDM MILESTONE
    14. 14. Market Momentum Strategic Planning Assumption <ul><li>During 2008, MDM solutions such as IBM, ORCL, SAP, & TDC will monopolize majority market share in the G5000 enterprise; while mid-market solutions arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes/G1, SAS/DataFlux, Trillium) </li></ul><ul><li>Through 2009-10, both mega & best-of-breed MDM vendors will aggrandize the traditional master customer DB business of Data Service Providers (e.g., ACXM, DNB, & Experian) as these vendors sprint to deliver on-premise CDI hub solutions </li></ul><ul><li>By 2012, every major application & database vendor will provide either native or OEMed MDM capability – including DOX, MSFT, & CRM </li></ul>MDM MILESTONE
    15. 15. Market Consolidation & Diversification Strategic Planning Assumption <ul><li>During 2008, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDM-centric portfolio with ORCL & SAP challenged additionally in moving from silo’ed application architectures into SOA-based architectures (Fusion & NetWeaver) </li></ul><ul><li>By 2009-10, IBM (ASCL/CRSW/DMC/DWL/LAS/Princeton Softech/ SRD/Trigo/Unicorn) & ORCL (HYSL/iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most architectural/ BPM/ metadata/platform issues that confounded SAP earlier (A2i/BOBJ/Callixa) </li></ul><ul><li>Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors (DNB/Purisma, i2, Initiate Systems, Kalido, Siperian) thriving in specific industries & horizontal/corporate applications </li></ul>MDM MILESTONE
    16. 16. Budgets & Skills Strategic Planning Assumption <ul><li>During 2008, G5000 size enterprises will spend US$1M for MDM software, with add’l US$3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators </li></ul><ul><li>Throughout 2009-10, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & individuals with data governance experience outstrip market supply; concurrently, SIs will fill void in classic style by baiting & switching veterans for rookies </li></ul><ul><li>By 2012, market will stabilize as enterprises react by training & protecting their own MDM staff with specific product & project expertise; until then, enterprises will struggle with re-skilling same resources multiple times as emerging/evolving data management technologies mature (e.g., Fusion, Netweaver, …) </li></ul>MDM MILESTONE
    17. 17. Career Tracks Strategic Planning Assumption <ul><li>Scarcity of “hands on” MDM experience exists </li></ul><ul><li>During 2007-08, 1,500+ product-specific consultants albeit with little “real world” experience with mainstay MDM solutions were trained up </li></ul><ul><li>Current shortage lends itself to same scenario 5-10 years ago with SAP’s ABAP 4GL – i.e., inflated prices & resumes with many junior SI staff spinning up to speed at client’s expense (a.k.a. “Androids”) </li></ul>Market for expertise will create major demand for corporate MDM positions during next 3-5 years Data Steward , Enterprise Data Architect , Enterprise Data Modeler, Ctrs of Excellence, MDM Programmers Product-Neutral Product-Specific Off-Shore On-Site
    18. 18. Data Governance Strategic Planning Assumption <ul><li>During 2008, most enterprises will struggle with cross-enterprise data governance scope as they initially focus on customer, vendor, & product; enterprise-level data governance that includes entire master data lifecycle (creation, promotion, archiving, …) will be mandated as a core deliverable of large-scale MDM projects </li></ul><ul><li>Through 2009-10, major SIs & MDM boutiques will focus on productizing data governance frameworks while MDM software providers struggle to link governance process with process hub technologies & enterprises struggle to realize enterprise data governance in cost-effective way </li></ul><ul><li>By 2011-12, both corporate & LOB data stewards will be a common position as Global 5000 enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset </li></ul>MDM MILESTONE
    19. 19. MDM Convergence Strategic Planning Assumption <ul><li>During 2008, party & product data interdependencies will quickly broaden MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum </li></ul><ul><li>Through 2009-10, select best-of-breed vendors (DNB/Purisma, Kalido, Initiate Systems, Siperian) will provide multi-hub (entity, architecture & brand) connectivity via hierarchy management extensions </li></ul><ul><li>By 2012, enterprises without an overall, long-term MDM strategy run the ironic risk of building “MDM silos” </li></ul>MDM MILESTONE
    20. 20. PARTY:PRODUCT Conundrum <ul><li>Different master entity types may require different MDM brands or architectures </li></ul><ul><ul><li>Product data shared across supply chain </li></ul></ul><ul><ul><li>Employee data captive within HR apps </li></ul></ul><ul><ul><li>Customer data never leaves home (outside the firewalls) </li></ul></ul><ul><li>Customer policy/ process hubs ultimately require pricing masters, product masters, supplier masters, & so on … </li></ul>SOA mandates “Party” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products Pricing Authorized Products Bundles Cross-Reference Hierarchies Geographical Variants Regional Variants PARTY PRODUCT
    21. 21. Architecture & Data Models Strategic Planning Assumption <ul><li>During 2008, vendors will expose MDM capabilities as “always on” services in loosely-coupled architectures; enterprises will begin establishing a central, business-side led data mgmt team with embedded data quality & external data update services in flow of core business processes </li></ul><ul><li>During 2009-10, mega vendors (IBM, ORCL, SAP, TDC) will focus significant resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialization in B2B/B2B2C hierarchy management & distributed MDM </li></ul><ul><li>Not until 2011-12, will mega MDM vendors rewire foundational software to fully support strategic application infrastructure (Fusion, NetWeaver, …) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th gen full spectrum hubs that support structured & unstructured info </li></ul>MDM MILESTONE
    22. 22. Most Common MDM Topologies Composite/Hybrid is majority architectural preference; Registry/Virtual 2 nd choice <ul><li>Encapsulate legacy applications </li></ul>“ Chernobyl” <ul><li>Ability to fine-tune performance & availability by altering amount of master data persisted </li></ul><ul><li>XML, web services, service-oriented architecture (SOA) </li></ul>Composite (Hybrid) <ul><li>Metadata layer + distributed query (enterprise information integration or EII) </li></ul><ul><li>Enterprise application integration (EAI) </li></ul><ul><li>Portal </li></ul>Registry (Virtual) <ul><li>Master customer information file/database </li></ul><ul><li>Operational data store/active data warehouse </li></ul><ul><li>Relational DBMS + Extract-Transform-Load (ETL) + Data Quality (DQ) </li></ul>Persistent (Database) <ul><li>Database marketing providers </li></ul><ul><li>Data service providers </li></ul><ul><li>Service bureaus </li></ul>External (Service Provider) DESCRIPTION IMPLEMENTATION STYLE
    23. 23. Identity Resolution Strategic Planning Assumption <ul><li>During 2008, independent DQ vendors (AddressDoctor, G1, HI, Trillium) will focus on name & address cleansing as they struggle against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor MDM; ongoing challenge will be aggregation of customer data balanced against privacy dictates </li></ul><ul><li>During 2008-09, MDM capabilities for classifying, discovering & archiving party relationships while maintaining privacy will become major requirement; concurrently, users will be challenged to discern price/performance/scalability & accuracy of matching algorithms </li></ul><ul><li>By 2009-10, use of cross platform/cross brand customer keys will become core to enabling seamless loyalty programs & online services; sophisticated MDM hierarchy management capabilities will include “global IDs” as mainstay feature to link both legacy & newly-built hubs with DSP’s enrichment data </li></ul>MDM MILESTONE
    24. 24. Party Data Quality Strategic Planning Assumption <ul><li>During 2008-09, enterprises will focus more on degree to which “party data quality” (consumer, subscriber, owner, member, vendor, establishment, contact, …) is sufficient to meet requirements of diffuse business entities </li></ul><ul><li>By 2009, ”quality” metrics will increasingly be defined specific to purpose of particular business function (product development, mktg, sales, order admin, service, compliance, analytics, …) & in turn be driven by enterprise-wide data governance initiatives </li></ul><ul><li>Through 2010-11, wide deployment of loosely-coupled SOA architectures will catalyze consumption of highly-optimized data quality functions as made available via both mega DSP & enterprise application vendors </li></ul>MDM MILESTONE
    25. 25. Policy Hubs Strategic Planning Assumption <ul><li>During 2008, MDM vendors will lag their BPM counterparts in providing workflow orchestration to synchronize the trusted sources that comprise a federated master data store </li></ul><ul><li>Through 2009-10, the mega CDI-MDM vendors (IBM, ORCL, SAP) will struggle to provide BPEL-compatible workflows while specialist MDM solutions rush distributed Collaborative MDM capabilities to market </li></ul><ul><li>By 2012, without such flexible workflows, organizations will merely rebuild the same master data files they evolved the past 15-20 years with their ERP & CRM infrastructures </li></ul>MDM MILESTONE
    26. 26. Enterprise Search Strategic Planning Assumption <ul><li>Through 2008, the unique properties & behavior of master reference data will spawn a series of vertical applications & specialized features within MDM solutions </li></ul><ul><li>During 2009-10, semantically-enabled metadata will enable “search” for both structured & unstructured info across a variety of applications such as catalog management & deep web search, & enterprise search </li></ul><ul><li>By 2012, enterprise semantics & SOA-enabled data services will provide the technology foundation for policy hubs; concurrently, the 4th generation of hubs will innately support Analytical, Operational, & Collaborative & MDM business services </li></ul>MDM MILESTONE
    27. 27. Solidifying Requirements for 3 rd Generation MDM Solutions <ul><li>SOA/shared services architecture evolving to “process hubs” </li></ul><ul><li>Sophisticated hierarchy management </li></ul><ul><li>High availability identity management </li></ul><ul><li>Data governance-ready framework </li></ul><ul><li>Registry, persisted, & hybrid architecture flexibility </li></ul>Future direction is to also grow all reference masters into operational masters, e.g., pricing & location style masters into transactional support roles via operational, analytical, & collaborative MDM linkages MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS 3G MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    28. 28. What are the Necessary Features of 4 th Generation MDM Solutions? <ul><li>Multi-entity MDM </li></ul><ul><li>Multiple “use case” styles </li></ul><ul><li>Process/policy hub architecture </li></ul><ul><li>Integrated data governance </li></ul><ul><li>Enterprise search & support for unstructured info </li></ul>Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years Identify & provide differentiated service to most valuable customers 4G MDM Introduce new products & product bundles more quickly across more channels Provide improved enterprise-wide transparency
    29. 29. Bottom Line Planning Assumptions <ul><li>Acknowledge no single vendor does it all “well” </li></ul><ul><ul><li>Party vs. product </li></ul></ul><ul><ul><li>B2B vs. B2C vs. B2B2C </li></ul></ul><ul><ul><li>Batch vs. real-time </li></ul></ul><ul><li>Recognize that industry expertise matters </li></ul><ul><li>Test drive matching & consulting expertise </li></ul><ul><li>Invest in data governance & MDM architecture for long-term sustainability & ROI </li></ul>MDM is critical to proactively & consistently manage customer data to untangle quagmire of complex systems – e.g., streamline processes, enhance QoS, & govern compliance
    30. 30. MDM Convergence Strategic Planning Assumption <ul><li>During 2008, party & product data interdependencies will quickly broaden MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum </li></ul><ul><li>Through 2009-10, G5000 enterprises will broaden their MDM business initiatives from single use case, single entity to multi-style, multi-entity </li></ul><ul><li>By 2012, enterprises without long-term multi-entity MDM strategy run ironic risk of building “MDM silos” </li></ul>SOA-based multi-entity MDM manages master data domains (customers, accounts, products, etc.) with significant impact on most important business processes
    31. 31. PARTY:PRODUCT Conundrum <ul><li>Different master entity types & usage styles may require different MDM brands or architectures </li></ul><ul><ul><li>Product data shared across supply chain </li></ul></ul><ul><ul><li>Employee data captive within HR apps </li></ul></ul><ul><ul><li>Customer data never leaves home (outside the firewalls) </li></ul></ul><ul><li>Customer data hubs ultimately require pricing masters, product masters, supplier masters, … </li></ul>MDM is increasingly about “multiples” – data domains, relationships among them, & usage styles Pricing Authorized Products Bundles Cross-Reference Hierarchies Geographical Variants Regional Variants PARTY PRODUCT
    32. 32. Why “Multi-Entity MDM”? Why Now? <ul><li>Future direction is to grow all reference masters into operational masters </li></ul><ul><li>Future MDM landscape </li></ul><ul><ul><li>Multiple data domains </li></ul></ul><ul><ul><li>Multiple relationships </li></ul></ul><ul><ul><li>Multiple usage styles – analytical, operational & collaborative </li></ul></ul><ul><ul><li>Linkage between operational data domains using collaborative or analytical MDM </li></ul></ul>Enterprise MDM = multi-entity MDM – such epiphany enables the enterprise to avoid “random acts of MDM” Pricing Policy Hub Pricing Reference Master CDI Hub Location Master Customer Registry PIM Data Hub Evolutionary Multi-Entity MDM Entity-Specific MDM Data Marts Myopic Strategic
    33. 33. Market Update for Product Master Data <ul><li>Adoption of MDM for product is increasingly widespread across all industries </li></ul><ul><li>Like party master data, product master data spans multiple use cases & implementation styles </li></ul><ul><li>Diverse range of vendors is targeting the PIM market – enterprise application suite vendors, best-of-breed PIM vendors, best-of-breed procurement vendors, industry-specific product masters, analytical MDM vendors, … even CDI hub vendors </li></ul><ul><li>No vendor dominates </li></ul><ul><li>Enterprise application suite vendors will redouble R&D & marketing efforts during 2009-10 </li></ul>Broader & deeper PIM requirements are pushing vendors to develop more comprehensive solutions; the PIM hub market will continue to grow quickly & attract new entrants
    34. 34. Findings <ul><li>The value of “enterprise MDM” can be intuitively recognized in a range of business initiatives – from short-term fixes to a narrow set of problems such as capturing customer privacy preferences across product lines to long-term enterprise-wide initiatives delivering infrastructure agility by embracing SOA. </li></ul>MDM Institute Advisory Council Consensus July 2008 internal round table Even tactical MDM projects require facets of the “enterprise MDM” solution set; enterprises must plan now to realize economic value & competitive differentiation via 4th generation MDM during next 2-5 years
    35. 35. Summary <ul><li>Enterprise MDM is major IT initiative underway at large # of market-leading Global 5000 enterprises </li></ul><ul><li>Most enterprises & solutions vendors are finding near-term success with single-faceted approach inherent with 3 rd generation MDM solutions </li></ul><ul><li>Myopically focusing solely on single data domain & usage style is detrimental to longer term business strategy of integrating supply, demand, & info chains across both intra- & extra-enterprise boundaries </li></ul><ul><li>Coming to market during 2008-09 are 4 th generation multi-entity MDM solutions which address requirement for multiple domains & styles as well as roles of consumers </li></ul>Learn from MDM early adopters & prepare now for “Enterprise MDM” to increase business value & lower costs
    36. 36. Bottom Line <ul><li>Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes </li></ul><ul><li>Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade </li></ul><ul><li>Begin MDM projects focused on either customer-centricity or product/service optimization </li></ul><ul><li>Plan for multi-entity MDM juggernaut evolving from “early adopter” & into “competitive business strategy” </li></ul><ul><li>Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains </li></ul>Plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
    37. 37. MDM SUMMIT™ Conference Series <ul><li>MDM SUMMIT Canada 2008 Toronto Holiday Inn on King Street | February 4 – 5, 2008 </li></ul><ul><li>MDM SUMMIT – Spring 2008 Hilton San Francisco | March 30 – April 1, 2008 </li></ul><ul><li>MDM SUMMIT - Europe 2008 London Royal Garden Hotel | April 21 – 23, 2008 </li></ul><ul><li>MDM SUMMIT Asia-Pacific 2008 Sydney Sofitel Wentworth Hotel | April 28 – 30, 2008 </li></ul><ul><li>MDM SUMMIT - Fall 2008 New York Hilton | October 19 – 21, 2008 </li></ul><ul><li>MDM SUMMIT Iberia 2008 Madrid Mirrasierra Resort | November 4 – 5, 2008 </li></ul><ul><li> MDM & Data Governance Deutschland 2008 Frankfurt Steigenberger Hotel | October 6 – 7, 2008 </li></ul><ul><li>MDM SUMMIT - Europe 2009 London Royal Garden Hotel | April 20 – 22, 2008 </li></ul><ul><li>MDM SUMMIT Asia-Pacific 2009 Sydney Sofitel Wentworth Hotel | April 28 – 30, 2009 </li></ul>
    38. 38. Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com a.k.a. www.tcdii.com
    39. 39. 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>
    40. 40. 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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