Bhawani prasad mdm-cdi-methodology

Business Intelligence (BI) Capability
MDM - Customer Data Integration
Prepared By:
Bhawani Nandan Prasad

© 2006 The CDI Institute The-CDI-Institute.com
How Many Analysts Does It Take To
Change a Light Bulb?
 Gartner analyst
 ―We feel that a new bulb is necessary & that the bulb will be
replaced (0.99 probability) — we have a new service that
addresses that issue‖
 Forrester/Giga analyst
 ―In 5 years, the new illumination technologies will replace
what you currently have ... Wait‖
 Ovum/Aberdeen analyst
 ―We‘ll write about the old bulb for $25,000‖
 IDC analyst
 ―There are 1,230,245 burnt-out bulbs in the world — for
$2,500, we will tell you where they are ...‖
 Big Three consultant
 ―It‘s time to re-engineer the sun ...‖

About the CDI Institute
 Founded in 2004
 Focused on CDI-MDM business
drivers & technology challenges
 CDI Advisory Council™
of fifty G5000 IT organizations with
unlimited advice to key individuals,
e.g. CTOs, CIOs, data architects
 CDI Business Council™ website
access & email support to 3,000+
members
 CDI-MDM Road Map &
Milestones™ semi-annual strategic
planning assumptions
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 Budgets, success/failure rates,
mindshare of 250+ major in-flight CDI-
MDM projects
 Examples: evaluation process for CDI
SI, CDI ROI in Telco M&A, …
 CDI Fast Track™
 One-day public & onsite workshop
 Fee-based & rotating quarterly through
major North American, European, &
Asia-Pacific metro areas
 Semi-annual CDI-MDM SUMMIT™
―Independent, Authoritative, & Relevant‖
About Aaron Zones
Most quoted industry analyst authority on topics of CDI & MDM
Founder & Chief Research Officer of the CDI 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

CDI Institute Advisory Council
 Advisor agrees to provide Institute‘s
consultants with advice & insight regarding
the use of CDI software & related CDI
business processes at Advisor‘s convenience
 Advisor agrees to participate in at least one
fifteen (15) minute survey teleconference call
every sixty (60) days
 Optionally, Advisor may respond to the bi-
monthly survey request via email or Internet-
based survey fulfillment
 Results of such CDI market research surveys
shall be aggregated by the Institute & made
available to all Advisory Council members
 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
Fifty organizations who receive unlimited CDI advice to key
individuals, e.g. CTOs, CIOs, & CDI project leads
Representative
Members
• Bell Canada
• Canadian Tyre
• Caterpillar
• Citizens Communications
• COUNTRY Financials
• Educational Testing Services
• GE Healthcare
• Honeywell
• Intuit
• MCI
• McKesson
• Microsoft
• Motorola
• National Australia Bank
• Nationwide Insurance
• Novartis
• Roche Labs
• Rogers Communications
• Scholastic
• SunTrust
• Westpac
• Weyerhaeuser

Recent CDI Alerts
 Oracle Data Hubs: “The Emperor Has No Clothes?”
 Subtitle: Considering Oracle‘s Data Hubs? Then Consider This …
 SAP Master Data Management “Extreme Make-Over”
 Subtitle: SAP MDM went under the architect‘s knife – Is the
outcome attractive to Global 2013 enterprises?
 IBM/DWL Customer Center: Strategy-Driven vs.
Urgency-Driven M&A
 Subtitle: Who‘s Minding the Metadata? (Does the ―new‖ IBM
software business have a coherent strategy to integrate its treasure
of acquisitions?)
 Siebel CDI Assets to Help Oracle Battle IBM & SAP
 Subtitle: How Many More Software Firms Must Oracle Buy to Catch
Up with SAP?

Customer Data Integration (CDI) Definition
 Comprised of solutions
(processes & technologies)
 Recognizing a customer & its
relationships at any touch-point
 Aggregating, managing &
harmonizing accurate, up-to-
date knowledge about that
customer
 Delivering it in an actionable
form ―just in time‖ to touch-
points
CDI is mandatory first step for most organizations on
journey to enterprise master data management (MDM)
Historical CDI Solutions
Synchronization
Enterprise
Application
Integration
(EAI)
Extract
Transform
Load
(ETL)
Replication
Aggregation
Master
Customer
Files/DBs
CDI

CDI-MDM Milestones
 Market maturation
 Market momentum
 Market consolidation
 Budgets/skills
 Data governance
 MDM convergence
 Architecture
 Data models
 Customer identification
 Master data delivery
 Analytics
 Business services/workflow
―CDI/MDM Milestones‖ are strategic planning assumptions to
assist IT organizations & vendors in coping with flux & churn
of the emerging CDI-MDM vendor landscape
Roadmap of key areas to invest in CDI – i.e., “What are the key
differentiators of a next-generation CDI solution in 2006-07?”

Market Maturation
 During 2005-10, the CDI-MDM market shifted gears
from ―early adopter‖ to ―mainstream‖ as 95%+ of
financial services, communications services, and
pharmaceutical/life sciences enterprises actively look
to replace homegrown CDI solutions
 During 2011-13, CDI solutions will come to market
for the midsize enterprise from Microsoft and Oracle
plus the Data Quality vendors (Pitney Bowes,
SAS/Data Flux, Trillium)
 By 2013, the market for CDI-MDM solutions
(software and services) will exceed US$1B
CDI-MDM MILESTONE

Market Momentum
 During 2006-07, CDI software solutions such as I2,
IBM/DWL, ORCL/SEBL, & SAP will monopolize the
majority market share; concurrently, a niche market will
arise for hosted CDI-MDM solutions led by early to
market vendors Alliance Consulting and Unisys
 Through 2007-8, both mega & niche CDI-MDM vendors
will aggrandize the traditional master customer DB
business of data service providers such as ACXM, DNB,
& GUS/Experian
 By 2008-09, every major application & database vendor
will provide either native or OEMed CDI-MDM capability
– including DOX, MSFT, CRM, & NCR/Teradata
CDI-MDM MILESTONE

CDI Momentum
55% of G2000 are actively evaluating an enterprise CDI
solution; 42% ―in production‖ with custom-built solution,
& 3% ―in production‖ with vendor-based solution
It’s All About
―Relationships‖
Panoramic
Customer
ViewCustomer-
Centric
View
Universal
Customer
View
CDI
360 º
Customer
View
Master
Customer
Info File
Customer
System
of Record

Working Definitions
Data Governance (DG)
Customer Data Integration
(CDI)
Processes & technologies for
recognizing a customer & its
relationships at any touch-
point while aggregating,
managing & harmonizing
accurate, up-to-date
knowledge about that
customer to deliver it ‘just in
time’ in an actionable form to
touch-points.
Formal orchestration of people,
process, & technology to enable
an organization to leverage data
as an enterprise asset.
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.
―84% of businesses surveyed believe that poor DG can cause:
limited user acceptance, lower productivity, reduced business
decision accuracy, & higher TCO

―Think MDM, Act CDI‖
 Data Governance
 ―Data Governance‖ is usually a generic term for an enterprise-wide data
management initiative to manage how organizations permit & govern
appropriate access to master data
 This includes measuring operational risk & mitigating security
exposures associated with access to data
 For many companies, DG is part of an overall IT governance strategy &
will cover all aspects of enterprise data
 While much would be considered ―customer data‖, some is clearly not –
e.g., product data & inventory data
 ―Customer Data Governance‖ is usually considered a subset of the
overall Data Governance strategy for a company
 Data Stewardship
 Objective is to synchronize data collection processes, reduce data
redundancy, & increase data accessibility, availability, & flexibility in a
systematic manner
CDI projects will focus on ―customer data governance‖ &
not necessarily all DG for an enterprise – if a robust IT
governance or general DG strategy is in place, it will be easier
to be successful at CDG

Why Data Governance? Why Now?
 Businesses have been governing data for 20+ years,
however, only a rare few are doing it well today
 Many companies historically assigned DG to a data
management group whose job is to integrate &
manage data
 Contemporary DG challenges are far greater
 Break down functional stovepipes
 Integrate processes across the enterprise –
including corporate technology, all LOBs,
functional areas & geographic regions
 Engage all levels of management
Based on recognition of issues at hand, an improving economy, &
increasing regulatory requirements, businesses are now recognizing
the opportunity to take a more strategic view of data governance

Why Data Governance? Why Now? – cont’d
 Once you know what data is worth, you need to calculate
probability for risk in a business processes
 When you understand value of data & probability of risk, you
can evaluate how much to spend to protect it, manage it,
and invest in adequate controls
 This is basis of modern underwriting – assets, risk, controls
 Doing this systemically requires a combination of
organizational structures, business processes, & technology
– a ―data governance blueprint‖ for:
 Data quality
 Information integration
 Business intelligence
IT management must work with business leadership to design &
refine “future state” business processes associated with data
governance commitments

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

Demand for CDI-MDM Expertise Creates
Major Opptys for Corp Positions Next 3-5 Yrs
 Data Steward – Domain/business area expert responsible for quality of specific
data entities for subset of enterprise customer data model; in large corporations,
―data steward program manager‖ may exist who sets overall process & policy
standards to formalize business‘s overall data governance policy processes;
additionally, ―subject matter managers‖ may further divide responsibilities for
metadata & master reference data (topologies, semantics, business metadata
repository, etc.).
 CDI Project Lead – Classical project manager with full lifecycle experience;
experience with specific data model & SDK of specific CDI solution desirable; works
with central IT group‘s enterprise infrastructure team to define & implement
business services related to customer data that comprise initial SOA efforts
Data Warehouse  Customer Data Integration  Master Data Mgmt
Data
Steward
Enterprise
Architect
CDI
Project
Lead
Data
Quality
Analyst

Technical Maturity Level
Overall, FSPs are leading the way for non-FSPs
 BASIC (―anarchy‖) – App-centric approach; meets business needs only on project-specific basis
 FOUNDATIONAL (―IT monarchy‖) – Policy-driven standardization on technology & methods;
common usage of tools & procedures across projects
 ADVANCED (―business monarchy‖) – Rationalized data with data & metadata actively shared in
production across sources
 DISTINCTIVE (―Federalist‖) – SOA (modular components), integrated view of compliance
requirements, formalized organization with defined roles & responsibilities, clearly defined metrics,
iterative learning cycle
Source: February 2006 CDI Institute survey of 50 Global 5000 IT organizations
0%
10%
20%
30%
40%
50%
Basic Foundational Advanced Distinctive
FSP
Non-FSP

The CUSTOMER:PRODUCT Conundrum
 JIT, 21st century business models mandate
both agility & integration across enterprise to
provide higher profitability, reduce operations
costs & increase accuracy of regulatory
compliance
 Contemporary supply chains mandate
synergetic approach across both customer &
product master systems via common business
services
 Key business drivers
 Increased agility to deliver new product
bundles/offers
 Simplified PLM by automating key business
policies to provide effective oversight &
compliance
 Reduced revenue leakage via consistent
enforcement of offer policies re:
provisioning & billing
Pricing
Authorized Products
Bundles
Cross-Reference
Hierarchies
Geographical Variants
Regional Variants
CUSTOMER
PRODUCT
SOA mandates ―Customer‖ + ―Product‖ MDM – however,
―customer‖ cannot simply be added as object to PIM products

Architecture
 During 2006-07, Global 5000 enterprises will migrate en
masse from custom-built customer data hubs onto
commercial CDI-MDM solutions – primarily those of mega
vendors IBM, Oracle/Siebel, & SAP
 Through 2007-08, systems performance will remain
problematic as enterprise infrastructure teams hedge
between virtual, persisted & composite/hybrid hubs;
applying point solutions such as EII middleware will help
adjudicate both performance & political stalemates
 By 2008-09, both market-leading enterprises & CDI-MDM
vendors will have completed their transition from
client/server to service-oriented architecture (SOA) by
migrating from ―data hubs‖ to ―process/policy hubs‖;
concurrently, CDI-MDM requirements will drive vendors
into 4th generation, full spectrum hubs (support for
structured & unstructured info with extreme scalability)
CDI-MDM MILESTONE

Most Common CDI Topologies
IMPLEMENTATION STYLE DESCRIPTION
External (Service Provider) • Database marketing providers
• Data service providers / service bureaus
Persistent (Database) • Master customer information file/database
• Operational data store/active data warehouse
• Relational DBMS + Extract-Transform-Load (ETL) +
Data Quality (DQ)
Registry (Virtual) • Metadata layer + distributed query (enterprise
information integration or EII)
• Enterprise application integration (EAI)
• Portal
Composite (Hybrid) • Ability to fine-tune performance and availability by
altering amount of master data persisted
• XML, web services, service-oriented architecture
(SOA)
―Chernobyl‖ • Encapsulate legacy applications
―Composite (Hybrid Hub)‖ is architectural
preference for 40%

Industry-Specific CDI Requirements
 Financial services providers (FSPs)
 Communications services providers (CSPs)
 Life sciences / pharmaceutical
 Government
 Healthcare
 High-technology manufacturing (t.b.d)
 Manufacturing (discrete, process)
 Retail (t.b.d)
 Hospitality (t.b.d)
Early adopters of CDI solutions include: FSPs, CSPs, Pharma &
High-Tech Manufacturing

Why are Market-Leading FSPs Adopting CDI?
 Optimize customer
profitability
 Increase operational
efficiencies
 Enhance regulatory
compliance
 Improve overall BI
 Deliver ROI on CRM
initiatives
 Provide ―infrastructure
rationalization‖
 Facilitate growth-by-M&A
FSPs must transform from customer-hostile, batch
business model to give customers actionable 360º
view in ―near real time‖

Banking CDI Requirements
 Facilitate growth-by-M&A
 Comply with privacy mandates
 Improve compliance – e.g., AML, BXA,
CIP 326, OFAC, SOX, …
 Increase sales productivity by
modeling corporate hierarchies &
structures of B2B customers
 Improve real-time portfolio view
for both wealth management &
internal risk management
 Increase customer satisfaction
(retention/upsell) by streamlining
routine customer maintenance
 Reduce IT infrastructure costs
 Increasingly complex
business models (B2B2C) as
―electronic storefronts‖
 Demand for ―near real-time‖
data lineage
 Rationalizing complex &
dynamic business &
individual hierarchies
 Hacker-proof customer data
protection
 High-RAS (reliability, availability,
scalability) nature of mission-
critical infrastructure
Customer view must prevail over product view as higher margin
customers dictate common set of products & services via rapid
adoption of CDI
Business Drivers Technology Challenges
BXA - Bureau of Export Administration
CIP 326 – Customer ID Program of USA PATRIOT Act
OFAC - Office of Foreign Assets Control

Retail Banking – Business Objectives
 Provide single view of customer
 Across all channels
 Across all products
 Reduce operational costs
 Improve cross-selling
 Improve net credit loss
 Increase marketing lift
 Manage privacy centrally
 Provide operational view for Basel II compliance
 Provide improved customer service
 Streamline account opening process

Retail Banking – Technical Requirements
 Proven performance & scalability
 Service-oriented architecture
 Ability to handle complex hierarchies
 Ability to integrate to existing infrastructure
 Open architecture – J2EE compliant
 Proven functionality for services layer
 Existing CIF co-existence & eventual replacement
strategy

Retail Bank – CDI Solution Architecture
Customer Customer Customer Customer Customer Customer Customer Customer
Customer Customer Customer Customer
Customer
Recognition
Vendor
Data
Warehouse
Data
Marts
Data
Marts
Front Office
Back Office
DataIntegration
EAI ETL EII
CDI Hub
Application Server
RDBMS Server
Web Self- service VRU Telemarketing Call Center ATM Branch Kiosk Personal Banker
DepositsConsumer Credit Cards Wealth Management

Retail Banking – Key Drivers
 Improve cross-selling & campaign lift
 ―Operationalize‖ marketing data
 Leverage service interactions into sales opptys by following
up on current campaigns
 Regulatory compliance
 Providing operational view of customer into existing data
warehouse for Basel II compliance
 Ability to store privacy preferences at a true enterprise level

Retail Banking – Business Outcomes
 Ability to act on customer knowledge
 Improved customer matching for customers with
multiple risk-bearing products & improved benefits
obtained from risk management
 Risk scoring improvements – better collections
decisions
 Able to reduce costs based on reducing maintenance
costs of legacy CIFs
 Improved accuracy & completeness of the customer
data within CDI hub vs. existing CIFs (96% vs. 85%)
 Administrative cost reduction

Banking CDI Scorecard:
―Top 5‖ Business Drivers & Technology Challenges

Key Business Benefits for FSP
of ―Product Information Pipeline‖
 Enhanced client reporting
 Improved timeliness
 Improved depth of product information (consultant
support, consultant RFI responses, RFPs, fund fact sheets)
 Enhanced customer servicing via e-channel management
 Improved revenue generation opportunities
 Enhanced executive mgmt transparency into risk mgmt
(sales pipeline info)
 Increased efficiency within Global Distribution functions
(removing duplicated business processes, & improving
speed & accuracy of key activities)
 Improved business retention rates across global markets,
product segments & business channels
PIP is complement of CDI by employing same technologies centered
around ―product‖ – much more than CRM is required

Case Study: Major North American Bank
 Near term = cross-selling across
product lines
 Longer term = customer service
& retention
 Huge diversity of financial
product lines
 Scalability of complex business
model
 10M+ retail consumer accounts
 3K+ bank branches; 1K+ mortgage ctrs
 25K+ internal users
 Custom-built CDI not keeping
pace with market evolution
 Delivered workflow-based
employee portal to integrate SFA,
DW, BI, customer profitability, &
loan pricing/approval applications
 Built on existing portal & message
bus by incorporating new CDI
technologies in R/T customer
identification & data reconciliation
plus cross-application process
integration
 Coordinated multi-channel
campaign mgmt, channel
optimization, & advanced
analytics
Increased cross-sell revenue by US$700M across sales,
marketing, & portfolio mgmt —
reducing underperforming assets by US$12B
Business Issues Technology Solution

Credit Card Issuer CDI Requirements
 Aggregation within industry –
exacerbated by big commercial
banks emulating major monolines
 Heavy reliance upon direct mail
marketing – & inherent increased
fraud risk
 Improve compliance – e.g., AML, BXA,
CIP 326, OFAC, SOX, …
 Support future business objectives
– e.g., M&A
 Ensure consistent customer service
across all channels
 Private label cards needing lifestyle
event-based differentiation
 Integration of new & old
channels – e.g., collections, fraud,
contact centre with kiosk, ATM, IVR &
online self-service
 Contingency planning for future
technologies – e.g., biometrics,
smartcards, etc.
 Complex hierarchy mgmt – e.g.,
household-level risk mgmt
 Scalability – e.g, ability to integrate
new block of customers
 Infrastructure costs of
integrating new data sources &
channels
Challenge is to move to portfolio-level integration despite the
politics & technology inertia

Credit Card Issuer CDI Scorecard:

Case Study: Major U.S. Credit Card Issuer
 Reduce net credit loss
 Increase customer base
 Support M&A-based growth
strategy
 Centralize privacy preferences
management
 Reduce contact centre costs by
providing ―once and done‖
customer data management
 Ensure consistent customer
service across all channels
 Deployed hybrid CDI hub — vs.
front-end solution, data
warehouse, or customer info file
 Integrated marketing campaign
system to increase responses &
increase customer base
 Managed privacy contact
preferences in single location &
provided to all channels — e.g.,
telemarketing, direct marketing, call
centre, etc.
 Invested in strategic ―SOA
architecture‖ leveraged across
entire enterprise
Achieved competitive advantage in operational excellence over
nearest competitors — ―M&A ready‖

Insurance CDI Requirements
 Facilitate growth-by-M&A
 Comply with privacy mandates
 Increase deep understanding of
data quality & reliability issues
related to claims & fraud
 Embrace frequent regulation &
de-regulation cycles – e.g.,
HIPAA, NPI
 Accommodate growing
technical patchwork of
proposed legislation – e.g., NHIN
 Expand use of incumbent
application systems (e.g.,
CRM) via enterprise customer
identity service (universal
key) across all applications
 Increase flexibility to add
new channels, data sources,
touch points, etc. via SOA
 High-RAS (reliability, availability,
scalability) nature of mission-
critical infrastructure
 Hacker-proof customer data
protection
Insurers need to move to ―high touch‖ service model wherein
near real-time channel integration is critical
HIPAA - Health Insurance Portability & Accountability Act
NHIN - National Health Identification Number
NPI - National Provider Identifier

Insurance CDI Scorecard:

Case Study: Major North American Insurer
 Increase quality of service via
360° customer view to support
end-to-end, seamless business
processes for call centres, claims
processing, etc.
 Scalability of complex business
model
 5M+ policies
 2M+ ―customers‖
 3.5K+ agents
 10K+ internal users
 Custom-built CDI not keeping
pace with market evolution
 Selected ―Buy‖ over ―Build‖ of
CIS extensions
 High performance identity management
 Extensible data model
 Support for complex hierarchies
 Data steward capabilities
 Faster time to market
 Lowest total cost of ownership
 Pioneered ―chief customer
officer‖ & ―data steward‖
programs to drive design of
core processes to focus on
cross-enterprise customer view
―Go live‖ 3X faster & 4X cheaper for ―Buy vs. Build‖
(US$50M over 5 years)

Top 5 Vendors‘ Mindshare within Financial Svcs
2%
3%
45%
82%
85%
0% 20% 40% 60% 80% 100%
% Responses
1
CDIVendorMindshare
FinancialServices
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
DWL Customer
Siebel Universal Customer Master
IBM Client Information Integration
Solution
Sanchez CRM
ISI Synchronous

Communications Services Provider
Requirements
 Consolidation (M&A)
 Deregulation/re-regulation
 Increasingly "portable"
customers
 Self-directed service to drive
down customer care costs
 Real-time marketing &
integrated campaign
management using predictive
analytics
 Fraud detection
 Bill presentation
 Ability to blend channels
 Complex supply chains
 Onerous regulatory mandates
 Extreme scalability in call
centres, provisioning, etc.
 Flood of data due to ‗data
services‘
 ―Plan anywhere, build
anywhere‖ investment
strategies in new technologies
that enable quicker new
product introduction (NPI) at
lower cost without sacrificing
quality
Telco evolution will be radical as intense competition in wireless, LD,
Internet, & local service commoditizes products & slashes profits –
not to mention VoIP

Top 5 CDI Vendors‘ Mindshare within Telco
2%
3%
5%
15%
16%
0% 5% 10% 15% 20%
% Responses
1
CDIVendorMindshare
Telecommunications CDI Institute MarketPulse™ Survey
DWL Customer
Oracle Customer Data Hub
Initiate Systems Identity Hub
Ascential Enterprise Integration Suite

Survey Overview:
―ROI Strategies for CSP‘s M&A‖
 10+ North American CSPs – e.g.,
cable carriers moving into
telephony, CLECs, ILECs, LD
carriers, wireless, & conglomerates
 100% with > 1M subscribers
 50% > 5M subscribers
 >75% are investing in CDI in
support of stated corporate target
to reduce ―level of infrastructure
investment‖ with 49% stating CDI
to be either important or critical to
this outcome
 30% had COTS software for CDI
installed with the remainder
actively evaluating an enterprise-
wide solution
COTS = commercial, off-the-shelf software
M&A demands comprehensive & integrated profiles
Tactical ROI
• Saving substantial integration costs
• Improving flexibility & control to enhance
overall system performance
• Accelerating time-to-market of CRM,
SCM, & PIM solutions
• Reducing overall project risk
Strategic ROI
• Understanding & predicting customers‘
behaviors
• Identifying & deflecting competitors‘
moves
• Integrating supply chains with key
business partners
• Forecasting & acting on new
opportunities as a ―first mover‖

CDI Market Pulse™ Findings: ―Corporate Issues‖
How do you RANK your company's DESIRED STRATEGIC RESULTS resulting from M&A?
For strategic M&A, ―Market dominance‖ cited twice as often as next
highest ranked ―Increased profitability‖, ―Increased operational
efficiencies‖ & ―Corporate alignment‖
Source: CDI Institute 1H2005 Market Pulse™ Survey
of 12 North American CSP’s IT Organizations
100%
92%
75%
75%
61%
0% 20% 40% 60% 80% 100%
% Responses
1
Corporate alignment
Increase customer satisfaction and retention
Increased operational efficiencies
Increased profitability
Market dominance

CDI Market Pulse™ Findings: ―Marketing Issues‖
How do you RANK your company's DESIRED ―MARKETING‖ OUTCOMES resulting from M&A?
―Enable product bundling‖ 50% more important as
―Systematize analytics to determine customer, segment,
bundle, & product line profitability‖ – yet 60% expect CDI
solution to integrate with BI or enterprise DW during first year
18%
43%
57%
63%
71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
% Responses
1
Enable product bundling
Expedite time to mkt of new products
Systematize analytics to enable LTV mktg
Evolve to R/T mktg campaign mgmt
Enable solution selling

15%
17%
42%
50%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
% Responses
1
Legacy app ingtegration (CRIS, LEIS, LEIM,
USOCs)
Business process/workflow integration
Database/data model integration
Scalability
SOA for business services infrastructure
CDI Market Pulse™ Findings: ―Technology Issues‖
How do you RANK your company's MAJOR TECHNOLOGY CHALLENGES resulting from M&A?
―Legacy application integration (CRIS, LEIS, LEIM, USOCs)‖ rated
at least 33% more important than ―Business process/workflow
integration‖ & ―Database/data model integration‖

Pharma/Life Sciences Business Imperatives
 Improve productivity of pharma
sales reps
 Coordinate sales & operations
planning via common
infrastructure & goals/metrics
 Increase customer/physician
acquisition, retention &
profitability
 Reduce info management
overload/costs
 Prepare for uncertain future
Contracte
d
Accounts
Specialty
Physicians
Primary Care
Physicians
Health
Care
Professional
Group
Purchasin
g Orgs
Pharmacy
Directors &
Other
Influencers
Wholesalers /
Speciality
Distributors
360° View of Customer
Recent survey indicates physicians need info to make more informed
buying decisions – but only about 1/3 consider pharma sales reps
impt sources; 1/3 found sales visits helpful, addt’l 1/3 want more
current comparative or clinical data/analyses relevant to practices,
plus objective info on usage & side effects

Life Sciences / Pharma Technology Challenges
 CRM alone is not enough
 DW+CRM is not enough
 Importance of flexible workflow
 Dis-intermediated data sources
 Data service providers (IMS, NDC, AMA - cleansing, matching
issues)
 Industry standard identifiers (IMS, DEA, state licensing) not always
accurate
 Where does content mgmt system end & where
does the structured data mgmt start?
Market-leading Pharmas must unify physician/customer information
from multiple systems & business units in a robust data model
specific to pharmaceutical industry

Improve Productivity Of Pharma Sales Reps
 Enable sales reps to improve sales effectiveness by
leveraging client sales histories & profile info from diverse
sources
 Automatically capture physician info during sales meetings
 Spend more time in the field – serving physicians – rather
than in the office recording & analyzing meeting results
 Enable physicians to make more informed purchasing
decisions by offering customized product info, evidence
gathered thru clinical research, & comparative analyses of
medicines
 Ensure more effective territory mgmt to yield more
successfully market & sell products thru efficient call handling
& better cross-channel communication & coordination
Making sales reps more productive, requires a complete picture of
the physician profile, mktg activities, etc. – database-centric quasi
batch CDI is first step

Coordinate Sales & Operations Planning Via
Common Infrastructure & Goals/Metrics
 Monitor real-time performance of sales force to quickly
make strategic & tactical adjustments necessary to meet
sales goals & provide adequate product inventory
 Employ RFID technology & the EPC Network to improve
info mgmt in pharma supply chain
 Make M&A work via vital agglomeration of customer &
supplier master data
 Integrate IT infrastructure of diverse acquisitions
 Leverage info, insights & relationships to expedite &
enhance product intro & adoption
 Overcome cultural obstacles to creating better
collaboration between Clinical & Marketing organizations
 Insure supply chain integrity protection for producer &
patient (& everyone in between)
 Protect the pharma enterprise involved in ever more
complicated contracts with external partners
CDI needed that not only provides excellent support for sales reps,
but also makes customer info available to marketing, R&D & supply
chain functions

Increase Customer/Physician Acquisition,
Retention & Profitability via Closed Loop Mktg
 Enable creation of segment-specific drug detailing
aids
 Deliver custom detailing to physicians thru field sales
channel
 Collect responses to product messages at point of
customer interaction
 Analyse responses to further refine marketing
campaigns based on real-time feedback
 Design & manage sophisticated campaigns, incl
medical events & mailings
Closed-loop marketing capabilities align mktg & sales business
processes, enabling companies to target & segment customers,
design & execute mktg campaigns, & analyse customers' responses
to product messages

Reduce Information Mgmt Overload/Costs
 Manage exploding amount of data
produced in every part of pharma
enterprise
 CAPA, RFID & ECM data
 21 CFR Part 11
 HIPAA
 Share & store discovery &
development data in environment
with onerous legal requirements for
data retention & mgmt
 Generate structured analysis out of
unstructured content
 Manage outsourced clinical trials
 Complexity is that some tasks but
not all are outsourced for given trial
Both physician & consumer data are intricately related as part of
information asset programs which must keep regulatory risk &
validation costs to a minimum
Supply Chain & Mfg
Data: CAPA, RFID,
& ECM
Clinical &
Marketing
Data
Data Protection
& Privacy Initiatives:
21 CFR Part 11 & HIPAA
Very Large
Data Base(s)
Pharma Info Overload

Prepare for Uncertain Future
 Leverage digital packaging (RFID, ECM) for compliance monitoring &
supply chain optimization
 Optimize consumer self-service
 Apply advanced technologies to expedite info sharing via guided search, co-
browsing, etc.
 Helps consumers benefit from full range of info about health issue they‘re
researching
 Enables pharma to deliver targeted info to customers at precise moment
needed or requested
 Examples: medical education; disease mgmt; patient compliance; product
awareness
 Drive & manage regulatory compliance across diverse legal domains
 Prepare for increased outsourcing of both commoditized & specialized
functions
 Exploit strategic opportunities created by bioinformatics/ nanotechnology
 Leverage re-importation trends
CDI growth + Pharma growth = CDI 2

Legacy Pharma ―Info Supply Chain‖
ODS
DW
CARS
Siebel
IMS
Wholesaler Fed Govt
SMG
SAP
ContractingAMA
DEA
STL
Call
Centre Web
Dendrite
Sales
Targets
OSP
Events
Some sources flow
straight to the DW
Some sources flow
to ODS & DW
Some sources are
not integrated
Back Office
External Source
Front OfficeODS = operational data store
DW = data warehouse
CARS = xxxx ―Treading water …‖

Contemporary Pharma ―Info Supply Chain‖
CDI
Registry/
Hub
Active
Data
Warehouse
CARS
Siebel
IMS
Wholesaler Fed Govt
SMG
SAP
ContractingAMA
DEA
STL
Call Ctr Web
Dendrite
Sales
Targets
OSP
Events
HIN
All *reference* data
flows through CDI Registry/Hub
Back Office
External Source
Front Office
―Future-proofed …‖

Top 5 Mindshare within LifeSci/Pharma
3%
5%
18%
43%
65%
0% 10% 20% 30% 40% 50% 60% 70%
% Responses
1
CDIVendorMindshare
Pharma/Life-Sciences CDI Institute MarketPulse™ Survey
Siperian Master Reference Manager
Dendrite Nucleus
IBM DB2 Information Integrator

Government CDI Requirements
 Self-service to drive down customer
service costs
 Integration of transactional,
unstructured, geospatial, &
demographic data to optimize public
services (& national security)
 Imperative placed on most
government agencies to collaborate
& share info
 Newly-created enhanced knowledge
repositories, tools, & processes
critically needed for meeting new
public policy requirements
 Need to positively ID & track individuals
across languages & cultures
Government entities must apply citizen data integration best
practices from private industry – while using extreme caution
concerning privacy & security
Integrated
Analytics
Private
Data
Public
Data
Derivative
Data
CDI

Mission-Critical
Citizen Data Integration (CDI)
 Key technologies
 Anonymous entity resolution
(name classifier & hunter)
 Business intelligence
(perpetual analytics)
 Dynamic scoring
 Link analysis (° of separation)
 Grid scalability
 Data mining
 Text mining
 Real-time report streaming
 Voice/text analysis
 Key vendors
 Initiate Systems
 Language Analysis Systems
 MetaMatrix
 Salford Systems
 SAS
 SPSS
 Superstructure
 Systems Research &
Development
 The Distillery
Additional challenges for gov’t include: scalability (scale, # &
heterogeneity of DBs), ―very large scale‖ turf battles, lack of
national ID in US, supra-politics

Regulatory Juggernaut & U.S. Initiatives
 Klinger-Cohen Act
 Office of Foreign Assets
Control (OFAC)
 Bureau of Export
Administration (BXA) lists
of sanctioned
governments,
organizations, individuals
 USA PATRIOT Act
 In-Q-Tel venture capital
fund
 Digital collection system
1000 (FBI's ―Carnivore‖)
 CAPWIN project for the
metro District of Columbia
region emergency
response system
 Terrorist Threat
Integration Centre
During 2004-05, government will be stressed to analyse citizens’
behaviors to support national security initiatives – & will increasingly
turn to commercial IT sector for ―outside the box‖ thinking & best
practices

Top 5 CDI Vendor‘s Mindshare within Public Sector
1%
3%
4%
5%
6%
0% 1% 2% 3% 4% 5% 6%
% Responses
1
CDIVendorMindshare
PublicSector CDI Institute MarketPulse™ Survey
MetaMatrix Server
ObjectStar Enterprise CDI

Why are Healthcare Providers/Payers
Adopting CDI?
 Optimize customer profitability
 Increase operational
efficiencies
 Enhance regulatory compliance
 Improve overall BI
 Deliver ROI on CRM initiatives
 Provide ―infrastructure
rationalization‖
 Facilitate growth-by-M&A
Clearly, healthcare payers don’t know enough about their
―customers‖ — physicians, members, & employers – i.e., healthcare
payers have not been pushed on customer service issues because
they historically were near-monopoly in their geographies
“Most other economic
sectors have used IT to
become integrated &
more efficient.
Healthcare, too, can be
transformed.”
Leonard D. Schaeffer,
Chairman & CEO
WellPoint Health Networks
Keynote Address at 2004
Health Information
Technology Summit

Healthcare Payer/Provider CDI Requirements
 Ongoing consolidation straining
capacity of batch-centric processes
 Corporate boards & investors reluctant
to provide capital for major up-front
investments
 Frequent regulation & de-regulation
cycles – e.g., HIPAA & NPI, NHIN
 Shorter economic ‖product‖ lifecycles –
e.g., FSAs
 Increased competition -- e.g.,
offshore Rx fulfillment, NFPs becoming
―for profit‖
 Morphing member base demographics
– aging ―baby boomer bubble‖, ―Gen
X‖, etc.
 Ever increasing QoS expectations
 Need to react intelligently &
instantly to changing ―customer‖
information such as claims
processing & medical mgmt
 Requirement for deep
understanding of data quality &
reliability issues as it relates to
eligibility, claims, & fraud
 Necessity for a enterprise data
model across disparate sources &
applications to support complexity
of healthcare business model
Healthcare master customer data must be the most accurate, up-to-
the-minute source of customer information & must feed downstream
systems (e.g., claims processing) as well as external vendors.
HIPAA - Health Insurance Portability & Accountability Act
NPI – national provider identifier
NHIN - national health identification number

Healthcare Payer/Provider CDI Scorecard:
―Top 3‖ Business Drivers
100%
92%
75%
0% 20% 40% 60% 80% 100%
% Responses
1
CDIBusinessDrivers
12 Healthcare Payer IT Organizations (January 2005)
Increase customer satisfaction and
retention
Increase profitability
Create operational efficiencies

Healthcare Payer/Provider CDI Scorecard:
―Top 3‖ Technology Challenges
100%
100%
92%
88% 90% 92% 94% 96% 98% 100%
% Responses
1
CDITechnologyChallenges
12 Healthcare Payer IT Organizations (January 2005)
Increase flexibility to add new
processes via service-oriented
architecture
Integrate with legacy applications and
databases
Provide extreme scalability in data
volumes

HCP CDI Implementation Characteristics
CDI Dimension Healthcare Payer Specifics
Number of customers 3 million members; 1.6 million providers
Primary application vendors Siebel call centres
Home-grown membership and eligibility management
Databases sharing master customer
(member, provider) data
Member data management
Eligibility management
Claims case management
Disease management
Provider data management
Contract and credentialing
Pharmacy benefit management
External partners sharing customer
data
Service providers’ prescription benefits management
Provider data management
New or enhanced positions arising
from CDI
Enterprise data architect
Customer master data custodian
Data quality steward

―Top 10‖ CDI Evaluation Criteria
1. Customer data model
2. Business services
3. Identity management
4. Data management
5. Architecture
6. Infrastructure
7. Connectivity
8. Analytics
9. Developer productivity
10.Vendor integrity
Infrastructure fracas will escalate as mega app vendors rush to
dominate business services/processes & data models as high ground

#1 Criteria = Customer Data Model
 Multi-party model to support complex roles &
relationships
 Demographic profile (name, address, phone number, marital
status, etc.)
 Roles & relationships between parties (including company
hierarchies)
 Additional related entities (entitlements, products, preferences)
 Data heritage, change history & survivorship
 Regulatory & privacy rules
 Industry-specific (vertical) extensions
 Ability to import industry standard or custom-built
data models – e.g., IBM IAA, OASIS CIQ, Siebel CIF, Hogan CIS
Depth & breadth of data model – plus ability to adapt statically & on-the-
fly – provide a solid CDI foundation

#2 Criteria = Business Services
 External workflow engine & web services transaction
support – e.g., business process management (BPM)
 Rules engine
 End-to-end support with operational applications
 Business semantic-driven horizontal customer
processes – e.g. add party, change address, retire customers
 ―Best practice‖ templates for both horizontal &
vertical customer – e.g., related processes
 Compatibility with existing infrastructure investments
– e.g., Tibco, MQ-Series, etc.
 Standards – e.g., OMG‘s Model-Driven Architecture (MDA), WS-
Coordination, WS-Transaction, & BPEL
Functionality & extensibility of business services are critical evaluation
criteria for CDI solutions – longer term “process hubs” are the goal

#3 Criteria = Identity Management
 Very high performance matching/aggregation/search
 Ability to generate or incorporate ―universal‖ master
keys
 Cross-reference management – e.g., 1:M support,
enforcement of cross-referencing
 Support for all identity types – e.g., individual, household,
organization
 Change detection and event mgmt – e.g., propagation
& validation, in-doubt resolution
 Support for privacy regulations – e.g., SB-168 (remediation
of SSN off of any public document
 Non-obvious/intrusive entity resolution
Smart matching plus effective human intervention – & automated actions
– yield better identity mgmt; the bigger & more distributed the company,
the more complicated the hierarchy mgmt problem

#3.5 Criteria = Hierarchy Management
 Recognizing, investigating and maintaining complex
business relationships by identifying associated
individuals within the context of their corporate
structure or hierarchy
 Navigating complex hierarchies from individual to a
full hierarchy view
 Classifying current business customer relationships
according to a hierarchy maintained by externally
trusted sources of business information
 Searching, retrieving, viewing and modifying
hierarchical relationships and presenting this
information to external users and applications
New organizational hierarchy mgmt capabilities help solve this global
account mgmt problem by providing the most accurate, scalable & easily
deployed solution for enterprises that need to understand the true & total
value of each customer relationship

#4 Criteria = Data Management
 Consolidation & survivorship rules (intelligent merge/unmerge)
 Application- & role-level authorization
 End-to-end data mgmt processes to enforce data quality
 Data cleansing
 Address cleansing & standardization
 Pre-built integration to leading DQ tools
 Closed loop-DQ
 Data profiling
 Central enforcement & tracking of DQ
 Integration with Web-enabled aggregator data
 Complex, long running transaction
 Support for multiple master data types – e.g., reference, transactions
 Comprehensive set of customer attributes for complete profile
 History & audit trails
Goal is to create end-to-end data mgmt processes that may be
invoked by other major customer facing subsystems in addition to
CRM package

#5 Criteria = Architecture
 Multi-modality architectures
 Virtual/registry
 Persistence
 Confederation
 Multi-modal security
 Profile access control
 Integration with security of DB, CRM & ERP
 Role-based user rights mgmt
 Compliance with regulatory mandates
Given the generational evolution of CDI styles,
it is vital to select a CDI solution specifically tuned
for a given set of long term CDI requirements

#6 Criteria = Infrastructure
 Scalability – e.g., in-memory or cache DBs; just-in-
time aggregation
 Manageability - e.g., system management &
monitoring tools
 Accessibility – e.g., ability to service wide-range of
performance levels
 Availability – e.g., resilience to various failure
situations such as hardware & network outages;
continuous data maintenance/ synchronization
As ―single point of failure‖ asset, CDI internal infrastructure has all
the requirements of mission-critical applications
& must be evaluated so

#7 Criteria = Connectivity
 Rigorous multi-model support for all integration modes
 Real-time
 Tightly-coupled (COM, Java, CORBA)
 Loosely-coupled (IBM MQ Series, XML/HTTP, integration
servers)
 Near real-time
 Loosely-coupled (IBM MQ AMI, XML/HTTP, integration servers)
 Batch
 EDI, RosettaNet
 Pre-packaged integration processes & templates
 Intelligent routing – e.g., alerts, content-based routing & pub-
sub
CDI solutions should provide rigorous multi-model support for all
usage/integration modes

#8 Criteria = Analytics
 Customer segmentation & targeting for cross-sell &
up-sell
 In-line analytics for closed-loop marketing
 Data profiling to manage ―degree of trust‖ associated
with given master customer data source (e.g.,
completeness, uniqueness, accuracy, & lineage)
No longer are batch-oriented data marts or data warehouses
sufficient to provide fundamental analytics necessary to drive
customer profitability & value assessments (to enable JIT &
differentiated service)

#9 Criteria = Developer Productivity
 Life-cycle approach
 Systems management tools
 Change management
 Software distribution
 Testing
 CMM compliance
 Methodology
CDI ultimate goal is user-driven rules management, yet IT
professionals (data stewards, et al) must set up & fine-tune this
mission-critical infrastructure

#10 Criteria = Vendor Integrity
 References vs. proof-of-concepts
 Professional services – work done by IT vendor to assist in the
delivery of solution via methodology, process, skills transfer,
etc.
 Quality
 Breadth
 Customization
 Corporate agility – Ability to respond, change direction, etc. in
Responsiveness/Development Processes/Flexibility
 Personnel – Mix of skills, expertise, experience, etc.
 Leadership/available skills
 Expertise/intellectual property
 Financials – Combo of financial resources, liquidity, etc.
 Access to capital
 Profitability
 Growth rate
CDI solutions have all the requirements of mission-critical
applications – vendors must be evaluated so

Minor, Yet Relevant CDI, Players
 Actuate/Nimble Technology (Data
Lens, Nimble Integration Suite)
 Apama (Apama Engine)
 AptSoft (AptSoft Director)
 Blackrock Solutions
 Business Objects (Data
Integrator/Firstlogic)
 Celequest (Activity Suite)
 Choicepoint
 Chordiant (Chordiant 5 Enterprise
Platform)
 Contivo
 Data Foundations (OneData)
 DataMirror (Constellar Hub/
Transformation Server)
 Dun & Bradstreet
 E.Intelligence
 eConvergent (eMerge)
 Enkata (Enterprise Insight Suite)
 GoldenGate Software (Global Data
Synchronization)
 Group 1 (Sagent Data Flow)
 Harte-Hanks (AllLink, Trillium)
 InfoUSA/Donnelley Marketing
(InfoConnect)
 Intelligent Results
 MetaTomix (Real-Time Visibility
Suite)
 Modulant (Contextia™
Connection Server)
 Nimaya
 Novell (Customer OneView)
 Polk
 Sedona (Intarsia)
 SPL (CorDaptix)
 Sun (SeeBeyond Business
Integration Suite)
 Tibco/ObjectStar/Velosel
 Vitria (Businessware)
 Xoriant

Competitive Field Reports**
 Data Foundations OneData
 i2/Teradata MDM
 IBM Customer Center
 Initiate Systems Identity Hub
 Kalido MDM
 Oracle Customer Data Hub
 Oracle-Siebel UCM
 Purisma
 SAP MDM
 SAS/DataFlux
 Siperian MRM
** Persisted data hubs with minimum 5 installs

Field Report:
Data Foundations OneData
 Strengths
 Full lifecycle with DG
framework
 Integrated customer,
product & vendor master
data
 Data model flexibility
 Full SOA
 Focus on MDM & reference
data
 Sophisticated hierarchy
mgmt – relationship
charts, rules mgmt
 Price
 Weaknesses
 Lack of strong SI
channel
 Under invested in
marketing
 Lack of CDI references

Field Report:
i2/Teradata Master Data Management
 Strengths
 Full lifecycle
 Integrated customer,
product & vendor
master data
 Full SOA
 Retail & mfg expertise
 Focus on MDM
 Teradata partnership
 Weaknesses
channel
marketing
 Lack of CDI references

Field Report:
IBM WebSphere Customer Center (DWL)
 Weaknesses
 BPM story is weak
 Only deterministic
matching (until
QualityStage
integration)
 ―Forced fit‖ with
WebSphere family
(Product Center,
Integration Center)
 Strengths
 3rd gen supporting both
data & process hub models
 Financial services expertise
 Public references
 BellCanada, CitiBank, COUNTRY,
MetLife, Nationwide, SunTrust,
UnumProvident
 Momentum
 BankAmerica, Carlson, Staples, …
 Robust web services
solution; IBM software
stack sycophant
 IBM BCS channel

Field Report:
 Weaknesses
channel
marketing
 Persistence story
unsubstantiated
 Lack of integrated
DQ
 Strengths
 Fast time-to-value
 Countrywide, Hyatt, Intuit,
Microsoft, US VA, …
 Healthcare, hospitality
& retail pharmacy
expertise
 Probabilistic matching
 Real-time match
scalability
 Fast growth curve via
new business

Field Report:
Kalido MDM
 Strengths
 BP, InBev, Owens
Corning, Shell, …
 MDM methodology
 Reference data
support
 Weaknesses
channel
marketing
 Enterprise DW
positioning overlay

Field Report:
Oracle Customer Data Hub
 Weaknesses
 High-end references
 Only supports Oracle
workflow
 Fair-to-meek customer
recognition capability
 Limited ―read‖ security
 Best fit is mid-market
and B2B
 Lack of industry-specific
data models
 Strengths
 Mid-market references
 BBC-TV, Church Pension Group,
IHOP, Master Lock, Network
Appliances, The CIT Group, …
 High-tech mfg expertise
 Executive-level
commitment
 Trading community
architecture
 Integrated DQ & analytics
 Future integration with
Oracle DB

Field Report:
Oracle-Siebel Universal Customer Master
 Weaknesses
 Only ENI, MCI, SARS, …
 Loss of Siebel staff
due to M&A
 Perceived issues in
scaling
 Strengths
 Dedicated sales force
 Retail banking expertise
 Fast growth via add-on
business to SFA/CRM/UAN
 ―Nexus‖ next gen (SCA)
composite architecture
 Integrated DQ & analytics
 Future Oracle integration

Field Report:
Purisma Customer Registry
 Weaknesses
channel
marketing
 Scarce references
 Strengths
 Hierarchy
management
 B2B model
 Business Objects
integration
partnership
 Cross investments
(Informatica,
Hyperion, …)

Field Report:
SAP NetWeaver Master Data Management
 Weaknesses
 Lack of strong SI channel
marketing
 Overcommitted to
product/supplier theme
vs. customer/employee
(due summer 2006 with
MySAP CRM data model)
 Strengths
 ―Name‖ references
 McKesson, Nortel,
Rubbermaid, Whirlpool, …
 Supply chain expertise
 Product information
management focus
 Image management
(catalog publishing)
 New capabilities via
acquisition
 e.g., A2i (xCat System),
Callixa, …

Field Report:
SAS/DataFlux
 Weaknesses
 Minimal references
 Lack of SI channels
 Lack of BPM/workflow
for ―policy hubs‖
 Strengths
 Integrated DQ
 Multi-entity data model
 Data governance
 SAS ―deep pockets‖
 SAS channel
 SOA
 Scalability reference via
Amgen

Field Report:
Siperian Master Reference Manager
 Strengths
 Allergan, DTCC, Genentech,
Lexis Nexis, Pfizer, Roche,
SanLam, State Street Bank, …
 Pharma expertise
 Hierarchy management
 Weaknesses
 Lack of strong SI channel
marketing
 Focus on batch vs. just-
in-time
 ―Pharma-centric‖

Bottom Line
 Acknowledge that no one does it all ―well‖
 Customer vs. product
 B2B vs. B2C vs. B2B2C
 Batch vs. real-time
 Industry expertise matters
 Test drive matching & consulting expertise
 Apply data stewardship tools for business
users as vital for long-term data
sustainability

CDI Case Study: United Airlines‘
―Enterprise Customer Profile‖
 Major challenge in customer
knowledge & treatment
 Customer profile info
gathered through various
customer touch points, but
not synchronized nor
available to all channels
 Expand common PW across
channels — IVR & wireless
 Need to increase customer
satisfaction & loyalty by
making amends to
customers‘ disservice (e.g.,
lost bag or delayed flight)
 Highly available & scalable
architecture to support
required OLTP levels
 Integration among second-
generation CRM interactions
for key systems, including
reservations, frequent flyer,
call centre — across key
channels (Web, wireless, &
phone)
 Coordinated multi-channel
campaign mgmt, channel
optimization, & advanced
analytics
Became 1st airline to offer booking capabilities via wireless
Internet devices — available instantly via same customer PW &
personal info from Web site

Case Study: CitiCard‘s
―Enterprise Customer Hub‖ (ECH)
 Reduce net credit loss
 Increase customer base
 Support future business
objectives (e.g., M&A)
 Reduce operating expenses
 Gain competitive advantage
over closest competitors
 Ensure consistent customer
service across all channels
 Invest in strategic
―architecture‖ leveraged
across entire enterprise
 Deployed ECH — vs. front-
end solution, data
warehouse, or customer info
file
 Integrated marketing
campaign system to increase
responses & increase its
customer base
 Managed privacy contact
preferences in single location
& provided to all channels —
telemarketing, centre
marketing, call centre
Achieved competitive advantage in operational excellence over
nearest competitors — ―M&A ready‖

Case Study: Fleet Financial‘s
―Real-Time Customer Data Mgmt‖
 Need to integrate customer
data, processes, & views
across disparate CRM
applications
 Challenged by inter-app data
& process integration issues
requiring adoption of new
CDI technologies
 Need for employee portal as
single point of access to
multi-app customer views
 Leverage of existing
investments in Oracle, Sun,
Siebel, MicroStrategy plus
many in-house built apps
 Delivery of workflow-based
employee portal to integrate
SFA, DW, BI, cust.
profitability, loan pricing/
approval & document mgmt
apps
 Build on existing portal
infrastructure by
incorporating new CDI
technologies in R/T cust.
data reconciliation & inter-
app process integration
Increased cross-sell revenue by US$700M across sales,
marketing, & portfolio mgmt —
reducing underperforming assets by US$12B

CDI Case Study: Intuit‘s
Party Reference System
 Major challenge in customer
knowledge & treatment
 Tens of millions of customers,
thousands of which interact
with company every day via
multiple call centres, web
sites & service/support email
accounts
 Had to pull customer data
from six separate systems
into a single registry, & then
scrub & merge data while
maintaining already
recognized existing
relationships
 R/T identity mgmt capable of
scaling to 100 million
customers with sub-second
response times for customer-
facing applications
 “Federated” approach with
individual business lines
keeping ownership of master
customer data & subscribed to
data feeds from central system
 Core business services were
subsequently developed by
corporate IT to support
centralized DQ & identity mgmt
via SOA
Loosely-coupled architecture comprised of ―party reference
system‖ business services allowed for distributed autonomy
across LOBs while centrally maintaining ―trustworthy‖ data

Key Business Outcomes for Intuit
 Reduced software costs for data standardization because they
can now verify against one source instead of six
 Reduced direct mktg costs by due to elimination of duplicate &
redundant customer records
 Increased cross-sell & up-sell revenue by having a complete
picture of customer's account at various points of service
 Reduced customer churn by materializing more accurate records
―on demand‖ & ―just in time‖ to resolve more billing & support
issues faster
 Increased customer privacy compliance requests by applying
privacy wishes from two existing systems to four additional
systems
 Reduced hardware & software fees by reducing volume of
master customer records under management & thus all related
storage, maintenance & development costs
By customizing commercial CDI solution over a period of 6+
months, mfgr reengineered entire end-to-end customer
processes to enable it to better serve its customers & grow its
business

Intuit‘s CDI Implementation Characteristics
Dimension Description
Number of customers 50 million parties/customers
Primary Application Vendors Siebel call centre, Oracle financials
Number of business units sharing
master customer data
Six business lines
Peak match/merge rate 150 transactions per second against 150 million call centre records
3rd party data sources to aggregate D&B, Experian, marketing data providers
Business partner data sources to
integrate
D&B, Verisign, Wells Fargo
Unique fields kept in central customer
master
Customer privacy preferences, email and contact addresses,
housekeeping data
New or enhanced positions arising
from CDI
Data custodian, data quality steward
Next stage in CDI evolution More robust fail-over capabilities; increased administrative capabilities for
exception handling

Bottom Line: Active BU Participation in Data
Governance & Data Steward Functions is Vital
 Plan for IT organizational change mgmt to support CDI/MDM efforts
 Work with business leadership to design & refine the ―future state‖
business processes associated with new CDI/MDM commitments
 To a greater degree than traditional application development
initiatives, organizational readiness & acceptance has huge impact
on both success & sustainability of CDI/MDM initiative
 Without C-level support, BUs will find it difficult to contribute funding
& resources necessary to launch a CDI/MDM initiative – resulting in
status quo with each business unit continuing to address issue at
division-level (if at all)
 After initial development of a CDI/MDM system, continued support
by BUs is essential & must include:
 Ongoing participation in development of business rules and resolution of
master data match/merge issues
 Ongoing commitment to update both applications and business
processes to leverage core data stored in master data hub

How to Leverage the CDI Institute
 Kickstart the ―CDI evaluation process‖
 Attend public workshop
 Bring workshop on-site
 Finetune in-process CDI strategies
 Due diligence on reference checking & contract details
 Stay ahead of curve via CDI Business Council
 Re-qualify every 6 months via survey
 Receive CDI News Alerts and access to Web-hosted research
 Increase your CDI knowledge & negotiating
strengths via CDI Advisory Council Membership
 Participate in monthly email surveys & receive updated industry scorecard
 Receive unlimited CDI consultation via telephone

Thanks
Bhawani Nandan Prasad
Bhawani.prasad@agreeya.net
+91 9717570222

Bhawani prasad mdm-cdi-methodology

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