Customer Data ManagementOverview of Current Challenges and ApproachesProf. Dr. Boris Otto, Assistant ProfessorMainz, June ...
Agenda    Business Rationale for Customer Data Management    Current Challenges    State-of-the-Art© BEI St. Gallen – M...
Why companies must move toward customer-centricity         Meeting customer expectations through a 360 degree view        ...
Innovative business models require thinking incustomer solutions                                        Production costs, ...
Endress+Hauser manages the entire customer process                                       Endress+Hauser                   ...
Customer-centricity presupposes a paradigm shift inthe way companies organize for success                        Business ...
Agenda    Business Rationale for Customer Data Management    Current Challenges    State-of-the-Art© BEI St. Gallen – M...
Are you ready?    Who is your customer?    Do you know the customer process?    Is there an unambiguous definition of t...
Customer data quality implications at Carl Zeiss Customer data quality issues      Missing data      Data not up-to-date...
Customer data management relates to a number ofdifferent business objects                                           Partne...
Different perceptions of the “customer” exists acrossthe companyDepartment                      Customer ViewMarketing    ...
Customer data typically is managed in a variety ofdifferent information systems along the value chain                  Acc...
Agenda    Business Rationale for Customer Data Management    Current Challenges    State-of-the-Art© BEI St. Gallen – M...
The internet service “Business Dictionary” proposes aset of business definitions                            A party that r...
Also, some not-so-frequently used definitions can befound on “Business Dictionary”                            An enterpris...
Different standards organizations define customer dataand related information                                 OASIS       ...
The TM Forum Shared Information/Data Model at aglance NB: See www.tmforum.org for more detailed information.© BEI St. Gall...
SAP provides definitions of core business objects usedin CRM 7.0Business Object                 DefinitionBusiness Partner...
Other vendors offer customer data models, tooVendor              Logo                  Solution/Approach           Conditi...
Customer data quality management instantiates theCDQ Framework                                     Strategy               ...
Contact Information                    Prof. Dr. Boris Otto                    Assistant Professor                    Univ...
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Customer Data Management

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This presentation gives an overview about the business rationale for customer data management, about current challenges and the state-of-the-art. It was given at the 9th CC CDQ3 workshop organized by the Institute of Information Management at the University of St. Gallen. The workshop took place on June 21, 2012, in Mainz, Germany.

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Customer Data Management

  1. 1. Customer Data ManagementOverview of Current Challenges and ApproachesProf. Dr. Boris Otto, Assistant ProfessorMainz, June 21, 2012
  2. 2. Agenda Business Rationale for Customer Data Management Current Challenges State-of-the-Art© BEI St. Gallen – Mainz, 2012-06-21, Otto / 2
  3. 3. Why companies must move toward customer-centricity Meeting customer expectations through a 360 degree view Achieving competitive advantage through understanding the customer process Engaging in customer community and communication activities (such as social media, consumerization etc.)  and not reacting to it Anticipating compliance and legal issues caused by customers Spending marketing budgets effectively and increasing sales© BEI St. Gallen – Mainz, 2012-06-21, Otto / 3
  4. 4. Innovative business models require thinking incustomer solutions Production costs, Value for the standard products customer Amount of Broken rock explosives Compressor Compressed air Individualized Overall package portfolio of standard services Value of music MP3 player, songs, ... experience© BEI St. Gallen – Mainz, 2012-06-21, Otto / 4
  5. 5. Endress+Hauser manages the entire customer process Endress+Hauser Customer Automation 370,000 downloads p.a. Spare Finder Solutions Endress+Hauser Download Area Tool Homepage Specification Applicator Configuration Common 2.5 mill. and Purchase equipment Equipment Record records Installation eCatalog Field Care Operations eShop Maintenance Order Status Installed Base Analyst Disposal, Replacement© BEI St. Gallen – Mainz, 2012-06-21, Otto / 5
  6. 6. Customer-centricity presupposes a paradigm shift inthe way companies organize for success Business Customer Processes Processes© BEI St. Gallen – Mainz, 2012-06-21, Otto / 6
  7. 7. Agenda Business Rationale for Customer Data Management Current Challenges State-of-the-Art© BEI St. Gallen – Mainz, 2012-06-21, Otto / 7
  8. 8. Are you ready? Who is your customer? Do you know the customer process? Is there an unambiguous definition of the business object “customer” in your organization? Do you know who owns and maintains customer data? Is there a conceptual model in your organization relating the business object “customer” to other objects such as “contact”, “employee”, “product”, “prospect”? Do you know where your customer data is stored? Do you know about the quality of your customer data? Do you know the value of your customer data?© BEI St. Gallen – Mainz, 2012-06-21, Otto / 8
  9. 9. Customer data quality implications at Carl Zeiss Customer data quality issues  Missing data  Data not up-to-date  Incorrect data  Meaning of data fields are interpreted differently  Misuse of data fields (not used as intended)  Obsolete data is not marked for deletion/ archiving  Duplicates Business impact of poor customer data quality  Introduction of CRM blocked  Inefficiencies in processes  No integrated reporting (no 360° view; all customer information at one glance)  Automation of processes not possible  High effort for data migration from Legacy to CRM system  High call back rate result in unnecessary efforts Source: Ilg, D.: Master Data Management at Carl Zeissi. In: Procesdings of the 4 th CC CDQ3 Workshop (Hamburg, 2011-06-09). University of St. Gallen, 2011.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 9
  10. 10. Customer data management relates to a number ofdifferent business objects Partner Roles Ship-to Party Sold-to Party Prospect B2B Customer Active Customer Customer B2C Customer Inactive Customer Business Segment Contact Customer Engagement Lifecycle Employee© BEI St. Gallen – Mainz, 2012-06-21, Otto / 10
  11. 11. Different perceptions of the “customer” exists acrossthe companyDepartment Customer ViewMarketing Customer is a prospectStrategic Sales Customer is a global entity composed of many buying organizationsTeamProduct Team Customer needs features and functionsIT Department Customer is a linked entity with a unique ID across all systems Source: Hitachi Consulting: Creating the Single Customer View. Hitachi, Ltd.: Tokyo, 2010.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 11
  12. 12. Customer data typically is managed in a variety ofdifferent information systems along the value chain Account Sales Accounts Service & Fulfillment Management (“Innendienst”) Receivables Support 4 0 0 0 0 4 4 0 0 4CRM 4 4 0 0 4ERP 0 4 4 4 4 Legende: 4 used to support process; 4 partially used; 0 not used.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 12
  13. 13. Agenda Business Rationale for Customer Data Management Current Challenges State-of-the-Art© BEI St. Gallen – Mainz, 2012-06-21, Otto / 13
  14. 14. The internet service “Business Dictionary” proposes aset of business definitions A party that receives or consumes products (goods or services) and has the ability to choose Customer between different products and suppliers. Active Customers who have bought a firms products at least once in a 12 month period. Active Customers customers are more likely (than the non-active or occasional customers) to buy again. Potential customer or client qualified on the basis or his or her buying authority, financial Prospect capacity, and willingness to buy. Also called sales lead. A place or location where a particular piece of information is stored, or where an entity can be Address communicated with. An individuals private or personal information by which another person, business, or entity Contact can use to reach the individual. Source: WebFinance, Inc.: Business Dictionary. © 2012. http://www.businessdictionary.com/. Requested on 2012-06-19.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 14
  15. 15. Also, some not-so-frequently used definitions can befound on “Business Dictionary” An enterprise controlled by another (called the parent) through the ownership of greater than Subsidiary 50 percent of its voting stock. Inquiry, referral, or other information, obtained through advertisements or other means, that Sales Lead identifies a potential customer (prospect). Source: WebFinance, Inc.: Business Dictionary. © 2012. http://www.businessdictionary.com/. Requested on 2012-06-19.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 15
  16. 16. Different standards organizations define customer dataand related information OASIS SID ebXML GS1 UPU Logo Specification OASIS CIQ TM Forum Shared Core Components n/a n/a (Customer Information/Data Technical Information Quality) Model V8 Specification V2.01 V3.0 Standards Body Non-profit, users Industry UN/CEFACT Industry Industry and technology association association association companies Industry Focus Cross-industry Telecom Cross-industry Retail, CPG, Postal services transportation Scope Names, names and Customer, Many business n/a Address formats in addresses, Customer Bill, information entities, different countries address, party Customer Order, most relevant Customer Service “address” Level Agreement etc. Status Most recent version Version 8 from Version 2.01 from Initiative just Wide adoption from 2008 2008 2003 started within industry Initial Assessment Technically sound, Widely-used, good Limited functional No results yet, but Limited focus on semantics structure, industry- coverage, low needs to be addresses addressed focused adoption watched Legend: n/a – not applicable.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 16
  17. 17. The TM Forum Shared Information/Data Model at aglance NB: See www.tmforum.org for more detailed information.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 17
  18. 18. SAP provides definitions of core business objects usedin CRM 7.0Business Object DefinitionBusiness Partner Business partners are any parties in which your company has a business interest. You can create and manage your business partners centrally for different business transactions, and reflect the different roles they play, such as sold-to party and ship-to party.Account An account is a company, individual, or group with which you have a business relationship. An account can be, for example, a customer, prospect, vendor, or competitor. Accounts are subdivided into the following types:  Corporate accounts (companies or organizations)  Individual accounts (private individuals)  Groups (any groupings, such as households)Contact A contact is a person with whom you have a business relationship, and is mostly assigned to a corporate account.Employees An employee is a member of your company, and involved in the interactions between your company and customers, prospects, vendors, and other parties.Account hierarchy The account hierarchy allows you to map complex organizational structures of a business partner (for example, buying group, co-operative or chain of retail outlets). Source: SAP AG: SAP Library - SAP Customer Relationship Management. © 2012. http://help.sap.com. Requested on 2012-06-19.© BEI St. Gallen – Mainz, 2012-06-21, Otto / 18
  19. 19. Other vendors offer customer data models, tooVendor Logo Solution/Approach Conditions of Use Brief AssessmentTeradata Logical Data Models Usage fee Wide range of data models for (LDM) various industries, fairly well adoptedIBM Industry Models Usage fee Wide range of information models for various industriesOracle Customer data model as Available through Sound data model, but linked part of Oracle Fusion software license to software Customer HubSAS Unified customer data Available through Sound data model, but linked model as part of Customer software license to software Intelligence solution© BEI St. Gallen – Mainz, 2012-06-21, Otto / 19
  20. 20. Customer data quality management instantiates theCDQ Framework Strategy Strategy for CDQ Organization CDQ Controlling Organization CDQ Processes and for CDQ Methods local global Corporate Data Architecture Applications for CDQ System© BEI St. Gallen – Mainz, 2012-06-21, Otto / 20
  21. 21. Contact Information Prof. Dr. Boris Otto Assistant Professor University of St. Gallen CC Corporate Data Quality boris.otto@unisg.ch© BEI St. Gallen – Mainz, 2012-06-21, Otto / 21

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