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  • A Global Perspective Trusted by 3,300+ Enterprises Worldwide Our client base includes emerging and global IT end-user, vendor, and public-sector enterprises More than 250 Analysts/Consultants Average 13 of years IT experience Former CxOs who understand boardroom challenges Former Big X consultants who understand first-hand the ins and outs of large strategic IT projects Former IT executives who understand back- and front-office issues Former IT vendors who understand the markets Fun Facts 25% of META Group’s research staff have over 20 years of experience 40% were directors and above 10% were at the CxO level 20% come from the Fortune 500
  • Integrate with our business partners in complex extended supply chains Combination of Web 2.0 and CDI-MDM enables Holistic “single customer/product/supplier/risk views” by merging structured, unstructured & hidden web data from both internal & external sources Creating business advantage & rapid payback by using Web 2.0 / data mashup techniques
  • New 21 st business style requires flexibility Info-based economy & info-based supply chain Flexibility is key for the “adaptable 21 st century enterprise” Traditional mfg business models Produce anywhere, service anywhere Lowest cost of capital/labor As well as newer USA flagship corporations Outsource mfg, service … even sales
  • All mega vendors will have an MDM story TDAT is simply the most recent example 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
  • CDI-MDM 2007 Sydney ..

    1. 1. CDI-MDM Sydney Summit 2007 "Mastering Master Data" 28th & 29th May 160+ attendees 20+ speakers 8+ CDI-MDM vendors ONE EVENT Sofitel Wentworth Hotel, Sydney
    2. 2. “ Top 5” Reasons to Attend <ul><li>Accelerate your time-to-ROI re: CDI & MDM </li></ul><ul><li>Perform due diligence on all major components of an enterprise master data solution </li></ul><ul><li>Leverage your training budget by coming up to speed on one of the hottest IT topics </li></ul><ul><li>Fill critically short-staffed CDI & MDM positions </li></ul><ul><li>Expand your IT professional network & increase your personal market value </li></ul>
    3. 3. 2007 CDI-MDM SUMMITS <ul><li>March 25 - 27 San Francisco </li></ul><ul><li>April 30 - May 2 London </li></ul><ul><li>May 28 - 29 Sydney </li></ul><ul><li>October 24 - 25 Frankfurt </li></ul><ul><li>November 6 - 7 Madrid </li></ul><ul><li>November 14 - 16 New York City </li></ul>
    4. 4. March 1-2, 2006 in San Francisco 450+ Attendees **SOLD OUT 6 WEEKS PRIOR** Miyako Radison, San Francisco
    5. 5. October 15-17, 2006 in NYC 600+ Attendees **SOLD OUT 4 WEEKS PRIOR** Marriott Marquis Times Square, New York City
    6. 6. CDI-MDM SUMMIT SPRING 2007 650+ Attendees **SOLD OUT FOUR WEEKS PRIOR** Marriot Marquis, San Francisco
    7. 7. CDI-MDM SUMMIT London 2007 300+ Attendees Royal Garden Hotel, Kensington
    8. 8. Aaron Zornes Founder & Chief Research Officer The CDI-MDM Institute a.k.a. &quot;Milestones on the CDI-MDM Road Map for 2007-08&quot;
    9. 9. About the CDI-MDM Institute <ul><li>Founded in 2004 </li></ul><ul><li>Focused on CDI-MDM business drivers & technology challenges </li></ul><ul><li>CDI-MDM Advisory Council ™ of fifty G5000 IT organisations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects </li></ul><ul><li>CDI-MDM Business Council™ website access & email support to 2,500+ members </li></ul><ul><li>CDI-MDM Road Map & Milestones™ semi-annual strategic planning assumptions </li></ul><ul><li>CDI-MDM Alert™ bi-weekly newsletter </li></ul><ul><li>CDI-MDM Market Pulse™ monthly surveys </li></ul><ul><ul><li>Budgets, success/failure rates, mindshare of 250+ major in-flight CDI-MDM projects </li></ul></ul><ul><ul><li>Examples: evaluation process for CDI SI, CDI ROI in Telco M&A, … </li></ul></ul><ul><li>CDI-MDM Fast Track™ </li></ul><ul><ul><li>One-day public & onsite workshop </li></ul></ul><ul><ul><li>Fee-based & rotating quarterly through major North American, European, & Asia-Pacific metro areas </li></ul></ul><ul><li>Semi-annual CDI-MDM SUMMIT™ </li></ul>“ Independent, Authoritative, & Relevant” About Aaron Zornes Most quoted industry analyst authority on topics of CDI & MDM Founder & Chief Research Officer of the CDI-MDM 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
    10. 10. CDI-MDM Institute Advisory Council <ul><li>Advisor agrees to provide Institute’s consultants with advice & insight regarding the use of CDI-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 fulfilment </li></ul><ul><li>Results of such CDI 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 organisations who receive unlimited CDI-MDM advice to key individuals, e.g. CTOs, CIOs, & CDI project leads Representative Members <ul><li>3M </li></ul><ul><li>Bell Canada </li></ul><ul><li>Caterpillar </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>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>Novartis </li></ul><ul><li>Roche Labs </li></ul><ul><li>Rogers Communications </li></ul><ul><li>Scholastic </li></ul><ul><li>Skura </li></ul><ul><li>SunTrust </li></ul><ul><li>Westpac </li></ul>
    11. 11. “ The World Is Flat” <ul><li>Data structures & business processes must be supremely flexible </li></ul><ul><li>Underlying IT infrastructure must enable new business models </li></ul><ul><li>Policies/process flows must integrate in ways previously problematic </li></ul>EAI = enterprise application integration ETL = extract-transform-load MDI = master data integration SOA = service-oriented architecture Value of Integration Exceeds Value of Build/Buy Value ETL EAI MDI Monolithic Apps Client/Server Apps SOA/ Web Services Time Value of Integrating Applications Value of Building Applications Global competition mandates a wide variety of new business styles
    12. 12. Business Drivers 2007-08 <ul><li>Just-in-time 21 st century business models mandate both agility & integration across enterprise to </li></ul><ul><ul><li>Provide higher profitability </li></ul></ul><ul><ul><li>Reduce operations costs </li></ul></ul><ul><ul><li>Increase accuracy of regulatory compliance </li></ul></ul><ul><li>Emergence of “demand chains” mandates synergetic approach across both “party” & “product” master systems via common business services </li></ul><ul><li>M&A as a business strategy </li></ul>Contemporary business strategies mandate flexible infrastructure – propelling CDI-MDM into “Top 10” initiative Agile Enterprise Self-Directed Service M&A “ Ready” Rapid NPI Integrated Risk Mgmt Co-opetition “ Demand” Chains
    13. 13. Technical Challenges 2007-08 <ul><li>High RAS (reliability, availability, scalability) infrastructure </li></ul><ul><li>Flexibility in mash-up of extreme data velocity & variety </li></ul><ul><li>Inline analytical MDM processes supporting operational MDM </li></ul><ul><li>Customer:product conundrum </li></ul><ul><li>Lack of standards – BPM, rules engines, metadata </li></ul><ul><li>Adherence to evolving security & privacy requirements </li></ul><ul><li>Lifecycle approach to data assets </li></ul>Market is in flux with no dominant vendor or architecture; requirements vary by industry, scale & business complexity Historical MDM Solutions Synchronisation Enterprise Application Integration (EAI) Extract Transform Load (ETL) Replication Aggregation Master Customer Files/DBs MDM
    14. 14. Working Definitions Data Governance (DG) Formal orchestration of people, process, & technology to enable an organisation to leverage data as an enterprise asset. CDI is mandatory first step for most organisations on journey to MDM Customer Data Integration (CDI) Processes & technologies for recognising a customer & its relationships at any touch-point while aggregating, managing & harmonising accurate, up-to-date knowledge about that customer to deliver it ‘just in time’ in an actionable form to touch-points. 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.
    15. 15. Working Sub-Definitions For most G5000 enterprises, multiple (often all) variants will be needed to make MDM initiatives successful Analytical MDM Definition, creation, & analysis of master data; examples: counterparty risk mgmt apps & financial reporting consolidation Collaborative MDM Definition, creation, & synchronisation of master reference data via workflow & check-in / check-out services; examples: PIM data hubs & AML Operational MDM Definition, creation, & synchronisation of master data required for transactional systems & delivered via SOA; examples: near R/T customer hubs & securities masters
    16. 16. ‘ Top 5’ Justifications for CDI-MDM Initiatives <ul><li>Catalyzes market leadership & dominance </li></ul><ul><li>Provides increased ROI by “leveraging / rationalising existing infrastructure” </li></ul><ul><li>Significantly increases shareholder value </li></ul><ul><li>Provides a disruptive technology for new business models </li></ul><ul><li>Enables compliance & regulatory reporting </li></ul>
    17. 17. CDI-MDM Catalyzes Market Leadership & Dominance <ul><li>Maximises walletshare across product lines & BUs </li></ul><ul><ul><li>Upsell via sticky bundles </li></ul></ul><ul><ul><li>New markets via cross sell to existing customer base </li></ul></ul><ul><li>Increases understanding of large customers by grouping all buying orgs into B2B or B2C hierarchy </li></ul><ul><li>Enables integrated customer analytics – i.e., profitability analysis, lifetime value </li></ul><ul><li>Enables “co-opetition” & electronic storefront models – e.g., B2B2C by integrating partner data with internal data </li></ul><ul><li>Protects brand integrity by increasing customer satisfaction due to more focused marketing & service campaigns – e.g., “blended agent” capability </li></ul><ul><li>Actualises “consistent customer treatment” by blending channels to deliver common customer experiences </li></ul>
    18. 18. CDI-MDM Provides Increased ROI by “Leveraging Existing Infrastructure” <ul><li>Enables integration of new & old channels – e.g., collections, fraud, contact centres with kiosk, ATM, IVR & online self-service </li></ul><ul><li>Minimises architectural complexity to simplify application solution design, deployment, & maintenance </li></ul><ul><li>Reduces number of interfaces between applications & increasing reuse factor to save substantial integration costs </li></ul><ul><li>Improves infrastructure flexibility and control to enhance overall system performance </li></ul><ul><li>Accelerates ROI of enterprise CRM solutions </li></ul><ul><li>Reduces overall project risk through increased flexibility & centrally managed architecture </li></ul>
    19. 19. CDI-MDM Significantly Increases Shareholder Value <ul><li>Drives costs of “dirty data” out of the info supply chain </li></ul><ul><li>Accelerates revenue growth via more intelligent cross-sell & up-sell enabled by complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities </li></ul><ul><li>Facilitates quick scales of economy in mergers & acquisitions (M&A) – e.g., shortening customer, desktop, & billing integration timeframes while providing scalability to support rapid assimilation of new block of customers </li></ul><ul><li>Measures, manages & grows “customer information” as a key corporate asset </li></ul><ul><li>Drives fundamental operational savings & efficiencies – e.g., “once & done” enterprise-wide services for key customer processes such as account changes (name, address) </li></ul>
    20. 20. CDI-MDM Provides a Disruptive Technology for New Business Models <ul><li>Enables self-directed customer experience for sales & service </li></ul><ul><li>Provisions hyper-integrated 21st century supply chain – e.g., outsourced manufacturing, outsourced service (“he who owns master reference data, dominates supply chain”) </li></ul><ul><li>Automates customer transactions that flow across systems </li></ul><ul><li>Enables contingency planning for future technologies – e.g., biometrics, smartcards, etc. </li></ul><ul><li>Provides much more than “just another customer interface” </li></ul><ul><ul><li>21st century business application development platform </li></ul></ul><ul><ul><li>Service-oriented architecture – a.k.a, “first foray into SOA” </li></ul></ul><ul><ul><li>Web services </li></ul></ul><ul><ul><li>Integrated analytics </li></ul></ul><ul><ul><li>Near real-time materialisation </li></ul></ul>
    21. 21. CDI-MDM Enables Compliance & Regulatory Reporting <ul><li>Centrally manages privacy preferences for consistent rules of visibility & entitlements </li></ul><ul><li>Enhances “evergreening” of customer data accuracy – e.g., continuous customer data improvement by providing self-directed customer care portals … which in turn integrate customer info across business units </li></ul><ul><li>Enables regulatory reporting compliance– i.e., large customers’ material events (SOX, BASEL II) </li></ul><ul><li>Facilitates compliance with AML, OFAC, USA PATRIOT, et al </li></ul>
    22. 22. CDI-MDM Milestones <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>Customer identification </li></ul><ul><li>Master data delivery </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 organisations & vendors in coping with flux & churn of emerging CDI-MDM vendor landscape
    23. 23. Market Maturation Strategic Planning Assumption <ul><li>During 2007, the CDI-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 plan to replace homegrown CDI-MDM solutions </li></ul><ul><li>Through 2008-09, verticalisation/horizontalisation of CDI-MDM solutions will expand beyond financial reporting, EMPI healthcare, etc. into financial services & government especially </li></ul><ul><li>By 2010, the market for MDM solutions (software & services) will exceed € 2B** </li></ul>CDI-MDM MILESTONE ** Gartner Research projection
    24. 24. Market Momentum Strategic Planning Assumption <ul><li>During 2007-08, CDI-MDM solutions such as IBM, ORCL, SAP, & TDAT will monopolise majority market share in the G5000 enterprise; while mid-market solutions will arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes, SAS/DataFlux, Trillium) </li></ul><ul><li>Through 2008-09, both mega & best-of-breed CDI-MDM vendors will aggrandise the traditional master customer DB business of Data Service Providers such as ACXM, DNB, & GUS/Experian as these vendors struggle to deliver on-premise CDI hub solutions </li></ul><ul><li>By 2009-10, every major application & database vendor will provide either native or OEMed CDI-MDM capability – including DOX, MSFT, & CRM </li></ul>CDI-MDM MILESTONE
    25. 25. CDI-MDM Momentum <ul><li>October 2005 – IDC’s W/W Market Forecast stated MDM market to grow to US$10.4 billion by 2009 </li></ul><ul><li>March & October 2006 – CDI-MDM SUMMIT 2006 series launched as largest expo dedicated to CDI, MDM, & DG </li></ul><ul><li>June 2006 – Gartner recognised importance of CDI with its second Magic Quadrant™ for CDI Hubs </li></ul><ul><li>October 2006 – Forrester releases second Wave™ report on CDI </li></ul><ul><li>Summer 2007 – Gartner & Forrester release 2nd iterations of research </li></ul>CDI-MDM is critical to proactively & consistently manage customer data to untangle quagmire of complex systems – e.g., streamline processes, enhance QoS, & govern compliance It’s All About “ Relationships” Panoramic Customer View Customer- Centric View Universal Customer View CDI 360 º Customer View Master Customer Info File Customer System of Record
    26. 26. Market Consolidation & Diversification Strategic Planning Assumption <ul><li>During 2007, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDM-centric portfolio </li></ul><ul><li>By 2008-09, IBM (ASCL/CRSW/DWL/LAS/SRD/Trigo/ Unicorn) & ORCL (HYSL/iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most of the same architectural/BPM/metadata/platform issues that confounded SAP earlier (SAP MDM/A2i xCat/Callixa) </li></ul><ul><li>Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDAT) will dominate the CDI-MDM market with niche/best-of-breed vendors (i2, Initiate Systems, Kalido, Purisma, Siperian) thriving in specific industries & horizontal/corporate applications </li></ul>CDI-MDM MILESTONE
    27. 27. CDI-MDM Genealogy Pre-2001 2002 2003 2004 2006 2005 1 st gen CDI solutions arrive (IBM CIIS, Hogan CIF) Nascent EII vendors arrive & flop Data service providers (Acxiom, Experian) fail at software makeovers into CDI 2 nd gen CDI vendors merge to form 3rd gen CDI solutions (Initiate/Journee, Siperian/Delos) Oracle, SAP, Siebel introduce 3 rd gen/hybrid CDI Mega vendors digest acquisitions App vendors launch EAI infrastructure (SAP NetWeaver, Siebel UAN) ETL vendors add modest CDI extension & avow CDI capabilities Mega app vendors roll out CDI (Oracle OCO, SAP MDM, Siebel UCM) CDI early adopters drive requirements (Fin Svcs, High Tech Mfg, Pharma, Telco) ‘ EIM’ as yet another TLA 3rd generation CDI solutions are based on service-oriented architecture (SOA) to hybridise aggregation, replication & synchronisation to provide enterprise-wide CDI infrastructure ‘ Process Hubs’ trounce ‘Data Hubs’; 4th gen ‘Full Spectrum’ hubs support structured & unstructured 2007+
    28. 28. Budgets & Skills Strategic Planning Assumption <ul><li>During 2007, typical G5000 size enterprise will budget/spend € 1M for CDI-MDM software, with an additional € 3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customised, labour intensive frameworks & related accelerators </li></ul><ul><li>Throughout 2007-08, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & other individuals with strong affinity for data governance will outstrip the market for experienced individuals; concurrently, Systems Integrators will fill the void in their classic style by baiting & switching senior veterans for junior rookies </li></ul><ul><li>By 2008-09, the market will have stabilised as enterprises react by training & protecting their own CDI-MDM staff with specific software product & project expertise </li></ul>CDI-MDM MILESTONE
    29. 29. Career Tracks Strategic Planning Assumption <ul><li>Scarcity of “hands on” CDI experience exists </li></ul><ul><li>By 1H2007, 1,500+ product-specific consultants albeit with little “real world” experience with mainstay CDI solutions </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 CDI-MDM positions during next 3-5 years Data Steward , Enterprise Data Architect , Enterprise Data Modeler, Ctrs of Excellence, CDI-MDM Programmers Product-Neutral Product-Specific Off-Shore On-Site
    30. 30. Data Governance Strategic Planning Assumption <ul><li>During 2007, enterprise-level data governance will be mandated as a core deliverable of large-scale CDI-MDM projects delivered via RFPs </li></ul><ul><li>Through 2007-08, major systems integrators & CDI-MDM boutiques will focus on productising their data governance frameworks while most CDI-MDM solution providers will struggle to link business process design with process hub architecture </li></ul><ul><li>By 2008-09, both corporate & LOB data stewards will be a common position as Global 5000 enterprises formalise this function amidst increasing de facto & de jeure recognition of information as a corporate asset </li></ul>CDI-MDM MILESTONE
    31. 31. 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
    32. 32. Data Governance Maturity Level Overall, FSPs are leading the way for non-FSPs <ul><li>BASIC (“anarchy”) – App-centric approach; meets business needs only on project-specific basis </li></ul><ul><li>FOUNDATIONAL (“IT monarchy”) – Policy-driven standardisation on technology & methods; common usage of tools & procedures across projects </li></ul><ul><li>ADVANCED (“business monarchy”) – Rationalised data with data & metadata actively shared in production across sources </li></ul><ul><li>DISTINCTIVE (“Federalist”) – SOA (modular components), integrated view of compliance requirements, formalised organisation with defined roles & responsibilities, clearly defined metrics, iterative learning cycle </li></ul>Source: February 2006 CDI Institute survey of 50 Global 5000 IT organisations
    33. 33. MDM Convergence Strategic Planning Assumption <ul><li>During 2007, customer & product data interdependencies will quickly broaden CDI-MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as Collaborative MDM to assuage the multi-hub conundrum </li></ul><ul><li>Through 2007-08, select best-of-breed vendors (Kalido, Purisma, Siperian, Stratature) will provide multi-hub (entity, architecture & brand) connectivity via hierarchy management extensions </li></ul><ul><li>By 2008-09, enterprises without an overall, long-term MDM strategy run the ironic risk of building “MDM silos” </li></ul>CDI-MDM MILESTONE
    34. 34. CUSTOMER: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 “Customer” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products Pricing Authorised Products Bundles Cross-Reference Hierarchies Geographical Variants Regional Variants CUSTOMER PRODUCT
    35. 35. Architecture & Data Models Strategic Planning Assumption <ul><li>During 2007, market will further evolve as vendors specialise at Analytical MDM & Operational MDM </li></ul><ul><li>During 2008-09, mega vendors (IBM, ORCL, SAP, TDAT) will continue to focus significant R&D & mktg resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialisation in B2B/B2B2C hierarchy mgmt & distributed CDI-MDM </li></ul><ul><li>Not until 2009-10, will mega CDI-MDM vendors have rewired foundational software to fully support strategic application infrastructure (Oracle Fusion, SAP NetWeaver, et al) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th generation, full spectrum hubs that support both structured & unstructured information </li></ul>CDI-MDM MILESTONE
    36. 36. Most Common CDI 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
    37. 37. Customer Identification Strategic Planning Assumption <ul><li>During 2007, independent DQ vendors focus on name & address cleansing as their forte as they struggle to compete against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor CDI-MDM solutions </li></ul><ul><li>By 2008, sophisticated hierarchy mgmt capabilities will include “global IDs” as mainstay feature for all CDI-MDM vendors to link both legacy & newly-built hubs with Data Service Providers’ enrichment data; concurrently, support for metadata repositories to link mega vendors’ multitude of acquisitions will continue to significantly lag </li></ul><ul><li>Through 2009-10, high-speed probabilistic matching algorithms will dominate over deterministic models despite hybrid solutions providing the best results </li></ul>CDI-MDM MILESTONE
    38. 38. Why Organisational Hierarchy Management ? <ul><li>Based on recognition of need to </li></ul><ul><ul><li>Grow beyond mature North American & Western European market </li></ul></ul><ul><ul><li>Support global customer service </li></ul></ul><ul><li>G5000 businesses are now recognising opportunity to take more strategic view of “global account management” </li></ul><ul><li>Market demand for “customer hierarchy management” – esp. B2B – capability to augment mega vendor’s data hub strategies (IBM, ORCL, SAP) will explode during 2007-08 </li></ul><ul><li>CDI solutions which incorporate such capabilities will be key factor in successful deployment of globally-enabled MDM solutions </li></ul><ul><li>3 rd party hierarchy data inadequate (or non-existent for certain geos) – e.g., Equifax/Austin-Tetra, D&B, … </li></ul>
    39. 39. Organisational Hierarchy Management <ul><li>Key features </li></ul><ul><ul><li>Ability to model complex relationships – legal, organisational & cultural </li></ul></ul><ul><ul><li>Ability to handle overlapping hierarchies – multi-party model </li></ul></ul><ul><ul><li>Visual hierarchy management tool </li></ul></ul><ul><ul><li>Integration with data governance processes </li></ul></ul><ul><li>Short list </li></ul><ul><ul><li>Initiate Systems; Hyperion; IBM; Oracle-Siebel; Purisma; Siperian; Stratature </li></ul></ul><ul><li>Use cases </li></ul><ul><ul><li>Global account management </li></ul></ul><ul><ul><li>Risk management </li></ul></ul><ul><ul><li>Basel II, USA Patriot, AML compliance </li></ul></ul><ul><ul><li>M&A </li></ul></ul>
    40. 40. Master Data Delivery Strategic Planning Assumption <ul><li>During 2007, EAI/EII/ETL vendors will scurry to either add persistence to products or align with CDI-MDM vendors as a complimentary role by enabling hubs to interweave data from multiple diverse master sources with persisted master data </li></ul><ul><li>Through 2007-08, systems performance will remain problematic as enterprises hedge between virtual, persisted & composite/hybrid hubs; applying point solutions such as EII middleware will help adjudicate both performance & political stalemates </li></ul><ul><li>Through 2008, these M/W vendors will thrive (& be acquired) by providing increased throughput & additional repurposing/publishing capabilities to classical CDI-MDM solutions; by 2009, these vendors will be fully assimilated </li></ul>CDI-MDM MILESTONE
    41. 41. Analytics Strategic Planning Assumption <ul><li>During 2007, the convergence of CDI-MDM & business intelligence (BI) will accelerate as enterprises leverage CDI-MDM concepts in a BI context </li></ul><ul><li>Through 2008-09, ongoing evolution of Analytical MDM & Operational MDM increasingly benefit enterprises by blending such transactional hubs with master reference data repository </li></ul><ul><li>By 2010, inline & real-time analytics derived from MDM-enabled aggregation of both transactional & historical data will have become the major source of sustainable competitive differentiation for Global 5000 enterprises </li></ul>CDI-MDM MILESTONE
    42. 42. Policy Hubs Strategic Planning Assumption <ul><li>During 2006-07, CDI-MDM vendors will lag their BPM counterparts in providing workflow orchestration to synchronise the trusted sources that comprise a federated master data store </li></ul><ul><li>Through 2007-08, the mega CDI-MDM vendors (IBM, ORCL, SAP) will struggle to provide BPEL-compatible workflows while specialist CDI-MDM solutions rush distributed Collaborative MDM capabilities to market </li></ul><ul><li>By 2009-10, without such flexible workflows, organisations will merely rebuild the same master data files they evolved the past 15-20 years with their ERP & CRM infrastructures </li></ul>CDI-MDM MILESTONE
    43. 43. Data Governance Enables Business Process Mgmt -> Policy Hubs Methodology is needed to bind process steps, skills & software to produce Data Governance deliverables Privacy Preferences Pricing Bundles Compatibility Legacy Shipping Approvals Eligibility Upgrade/ Downgrade Next Best Offer Discount Policies Process / Policy Hub
    44. 44. Enterprise Search Strategic Planning Assumption <ul><li>Through 2007, the unique properties & behaviour of master reference data will spawn a series of vertical applications & specialised features within CDI-MDM solutions </li></ul><ul><li>During 2008-09, semantically-enabled metadata will enable “search” for both structured & unstructured info across a variety of applications such as catalogue management & deep web search, & enterprise search </li></ul><ul><li>By 2009-10, enterprise semantics & SOA-enabled data services will provide the technology foundation for policy hubs; concurrently, the 4 th generation of hubs will innately support Analytical, Operational, & Collaborative & MDM business services </li></ul>CDI-MDM MILESTONE
    45. 45. Solidifying Requirements for 3 rd Generation CDI-MDM Solutions <ul><li>Multi-entity hub capabilities </li></ul><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>Global 5000 enterprises’ “multi-hub” scenarios mandate architectural/infrastructure approach to CDI-MDM MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS CDI-MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT
    46. 46. Bottom Line Planning Assumptions <ul><li>Acknowledge no single vendor “does it all well” </li></ul><ul><ul><li>Analytical vs. Operational vs. Collaborative MDM </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>Recognise that industry expertise matters </li></ul><ul><li>Test drive matching & consulting expertise </li></ul><ul><li>Invest in data governance & CDI-MDM architecture for long-term sustainability & ROI </li></ul>CDI-MDM is critical to proactively & consistently manage customer data to untangle quagmire of complex systems – e.g., streamline processes, enhance QoS, & govern compliance
    47. 47. How to Leverage the CDI-MDM Institute <ul><li>Kick start the “CDI-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 CDI-MDM strategies </li></ul><ul><ul><li>Due diligence on reference checking & contract details </li></ul></ul><ul><li>Stay ahead of curve via CDI-MDM Business Council </li></ul><ul><ul><li>Re-qualify every 6 months via survey </li></ul></ul><ul><ul><li>Receive CD-MDM Alerts & access to Web-hosted research </li></ul></ul><ul><li>Increase your knowledge & negotiating strengths via CDI-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 CDI-MDM consultation via telephone </li></ul></ul>“ Independent, Authoritative, & Relevant”
    48. 48. Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The CDI-MDM Institute a.k.a.