Myth: MDM is Only About Data Quality
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While MDM certainly provides quality trusted data, stopping at that achievement severely impedes the realization of MDM’s full business value, and can prevent digital business transformation.
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Myth: MDM is Only About Data Quality
- 1. Bill O’Kane – VP & MDM Strategist THE MYTH THAT MDM IS ONLY ABOUT DATA QUALITY X.X.2020 1
- 2. 05_01_20 2Strictly Confidential © 2020 Profisee Group, Inc. MDM IS ABOUT THE ORCHESTRATION OF FOUR CAPABILITIES MDM is the concerted application of four broad capabilities: • Data Modeling • Data Governance • Data Quality • Data Integration
- 3. 05_01_20 3Strictly Confidential © 2020 Profisee Group, Inc. MASTER DATA INTEGRATION IS WHERE DIGITAL TRANSFORMATION HAPPENS • Data modeling, governance, and quality are certainly pre-requisites to MDM providing maximum business value. HOWEVER • Full realization of that value can only be achieved via increasing the availability and lowering the latency of the resultant trusted master data. • This is accomplished using the real-time integration capabilities of MDM.
- 4. 05_01_20 2 3 MDM INTEGRATION ENABLES DIGITAL TRANSFORMATION 4Strictly Confidential © 2020 Profisee Group, Inc. Real-time MDM integration enables increased currency of analytics Real-time MDM integration is the cornerstone of operational MDM Real-time MDM integration enables business benefits both above and below the line 1
- 5. 05_01_20 5Strictly Confidential © 2020 Profisee Group, Inc. TRANSLATING INCREASED AVAILABILITY AND LOWER LATENCY OF DATA TO THE BUSINESS Conversations such as the following are helpful • Moving from batch-centric to real-time integration reduces overall ongoing IT processing costs • Analytics will be more currently accurate • Business processes that are driven by reaction to reports or disconnected operations can be made more proactive (ex: pop-up windows) • New processes can be constructed more rapidly and confidently (ex: scripted cross-selling/upselling)
- 6. 05_01_20 6Strictly Confidential © 2018 Profisee Group, Inc. CATEGORIZATION OF BUSINESS BENEFITS How do you formulate, categorize, and prioritize business process and analytics changes? CurrentSuboptimalProcesses NetNewProcesses Cost Efficiency Revenue Enhancement Business / IT Collaboration IT-Driven Enhancements
- 7. 05_01_12 INTEGRATION AS A FUNCTION OF MDM IMPLEMENTATION STYLES Strictly Confidential © 2020 Profisee Group, Inc. • Source systems remain SOR • Easy to implement, but low control REGISTRY • MDM is SOR for consolidated data, but no synch back to source • Non-intrusive to implement, ideal for BI/DW CONSOLIDATED • MDM is SOR, but flexible data entry • More nuanced implementation, but synch back to source improves overall control and data quality COEXISTENCE • MDM is SOR and only database to accept updates • Very rigorous, but very hard to implement CENTRALIZED 7 Loose governance Batch integration System of reference Analytics focused Strict governance Real-time integration System of record Operations focused You will very likely need multiple styles across domains, and within domains over time.
- 8. 05_01_12 BI/DW SCMERP CRM Company: Crete Carrier Corp Contact: Deborah Varchie Email: deb@cretecarrier.com Credit Rating: CCC DUNS: Address: 800 Piedmont Ave Atlanta, GA 3030 Company: Creet Carrier Co Contact: Deborah Varchie Address: 12001 Buford Hwy Doraville, GA 30340 Company: Crete Carrier Corp Company: Creet Carrier Corp Company: Crete Carrier Co. Company: Crete Carrier Company: Creet Carrier Co Company: Creet Carrier Corp Contact: Deb Varchie Company: Crete Carrier Co. Contact:: Deborah Varchie Company: Crete Carrier Contact: Deborah Varchy MDM INTEGRATION SCENARIOS Company: Creet Carrier Corp Contact: Deborah Varchie Company: Creet Carrier Corp Contact: Deborah Varchie Email: deb@crete.com DUNS: 12-123-4567 Credit Rating: CCC Address: 800 Piedmont Ave Atlanta, GA 30308 Email: deb@crete.com DUNS: 12-123-4567 ERP CRM SCM BI/DWCRM ERP SCM Address: 800 Piedmont Ave Atlanta, GA 30308 BI/DW MDM Correct Enhance Connect Unify| | | Enterprise Service Bus (ESB)
- 9. 05_01_20 DATA QUALITY ≠ MDM 9Strictly Confidential © 2020 Profisee Group, Inc. MDM certainly requires modeling, governance, and quality management of master data MDM requires taking full advantage of data integration capabilities to provide maximum business value via increased availability and decreased latency of master data Using MDM to provide broad access to trusted master data is critical to digital business transformation
- 10. QUESTIONS? 10
Editor's Notes
- Here we have the Data Management Journey Quadrant. Every company or organization is in a different place in their Data Management journey. Let's look at what's different about the 10% of organizations that HAVE adopted a STRATEGIC approach to managing their data and the those that havaen't. One the left axis is MDM Viewpoint. Companies with a broad MDM Viewpoint understand that MDM can solve a wide array of data challenges. On the bottom is Business Engagement. Companies with high Business Engagement have business stakeholders who understand data management, the value it can deliver, and are bought in. The 10% of companies that have adopted MDM are mostly in the top right quadrant, called Strategic. Why is this, it's because they have been able to justify the traditional Massive Data Management projects, as well as, have both IT and the Business aligned on the business outcome of MDM. At the same time, every company we meet with would like to be able to do all of these things. Everyone would like better their data quality or to improve cross system integrations. What's stopping them? When faced with the prospect of a Massive Data Management project, which has traditionally been the only option imposed by MDM vendors, the smart ones, have done nothing. It's been too costly, too complex, and it takes too long to get the results needed for a fast moving, fast changing business. What does that mean for the rest of the 90%? Well, they're in a different phase on their data management journey. (THIS IS WHERE YOU CAN RELATE TO THE ROOM WITH SPECIFIC INFORMATION ABOUT THEIR STRATEGIC BUSINESS INITATIVE, OR PROJECT.) Some organizations have a broad vision for data management, but limited buy in for the business. They may have a CDO, CIO or other IT executive who sees numerous opportunities for data management to help the business, but are unable to get the business to buy-in. Other organizations have IT resources that see perhaps a single data management problem they'd like to quickly solve, but need an easy entry point so they can show some results. Organizations in the Searching quadrant have business users who are aware of data challenges, such as a CMO who know CRM is a mess, but aren't aware of data management as a solution to their problems. AGAIN, THIS IS AN OPPORTUNTY TO ENGAGE THE PROSPECT AND ASK WHERE THEY FEEL THEY ARE IN THEIR JOURNEY. Now let's take a look at how Profisee helps companies on this journey.
- For more detailed discussion and definitions, see “Accelerate Business Value by Using Gartner's Master Data Management Implementation Styles”, Gartner , 2018 Notes: SOR = System of Record No single style is ‘best’ – it depends on the use case and many other factors The coexistence style is often the ‘nirvana’ solution but it’s rare, and mostly inadvisable to jump straight to that style without some experience and organizational maturity. That is a style that is most often achieved after some period of evolution and gradual tightening Registry and Consolidated are ‘ANALYTIC’ styles (output is really only used for BI); Coexistence and Centralized are ‘OPERATIONAL’ styles
- DV Here is a picture of a typical enterprise. Let's look at Crete Carrier, one of their top customers. 1. Let's start with CRM. Here we find not one, but three different records for Crete Carrier. With MDM we can identify and Correct these duplicates, merging them together. 2. In our ERP, we're missing the DUNS number, and the address only has a 4 digit zip. With MDM, we can enrich this data, filling in the blank DUNS, and verifying the Address. 3. Next, in our Supply Chain system, the address is different from our ERP and incorrect. With MDM, we can Connect these systems, updating our SCM application with the new address from the ERP. Lastly, our BI/Data Warehouse. Since we are consolidating data across applications, it's a real mess, with all versions of Creet Carrier represented. With MDM now connecting these applications together, we can create a complete view of Crete Carrier, enabling more accurate and trusted analytics. With MDM, we are able to Correct, Enhance, and Connect data to support information driven initiatives. So why does this matter today? It seems obvious.