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Making an Effective Business Case for Master Data Management
The document discusses the critical factors for successfully implementing master data management (MDM) initiatives, highlighting common mistakes that lead to failure, such as relying on logical but flawed justifications. It emphasizes the importance of structuring business cases around measurable outcomes rather than on MDM terminology to ensure stakeholder buy-in and success. The presentation also outlines techniques for categorizing and prioritizing business benefits to improve overall project effectiveness.
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Making an Effective Business Case for Master Data Management
- 1. 05_01_2005_01_20 MAKING AN EFFECTIVEBUSINESS CASE For Master Data Management Strictly Confidential © 2019 Profisee Group, Inc. 1 Bill O’Kane bill.okane@profisee.com
- 2. 05_01_20 TODAY’S SPEAKER 2Strictly Confidential© 2019 Profisee Group, Inc. Experience 20 yrs Experience in Data Governance and MDM 8 yrs as Vice President of Data and Analytics at Gartner Expertise Bill is a recognized thought leader and the world’s foremost authority on the topics of Information Governance and MDM program management, vendors and technologies, and MDM’s role within an overall enterprise information management strategy. Bill O’Kane Vice President & MDM Strategist
- 3. 05_01_20 WHAT YOU’LL LEARNTODAY 3Strictly Confidential © 2019 Profisee Group, Inc. Most common mistake organizations make (and the most common reason for program struggles and eventual failure) when formulating what seem like logical justifications for master data management initiatives How you can avoid it by bearing just a few non-intuitive principles in mind • Help you maximize delivery of business benefits • Safeguard your MDM program from internal and external events • Avoid expending unnecessary effort and expense • Ensure and prove program success! What Benefits
- 4. 05_01_12 BroadNarrowMDMViewpoint Low HighBusiness Engagement Knowndata gaps within the business SEARCHING Business is aware of data challenges, but not data management ASPIRING Broad vision, lacking business support TACTICAL Need an easy entry point for first solution. STRATEGIC These are the 10% that can justify Massive Data Management projects. What other vendors have imposed Everyone we meet would like to quickly: • Improve Data Quality • Identify Duplicates • Fill Gaps • Enrich Data • Connect Across Systems • Harmonize Information What’s stopping them? When their only choice was Massive Data Management… Smart organizations have done nothing. 4Strictly Confidential © 2018 Profisee Group, Inc. DATA MANAGEMENT JOURNEY QUADRANT Why are companies stuck?
- 5. 05_01_20 “85% OF CONVENTIONALLYJUSTIFIED MDM PROGRAMS FAIL DUE TO JUSTIFICATIONS THAT ARE LOGICAL AND CORRECT, BUT THAT HAVE A FATAL FLAW THAT HAS ONE OF TWO EFFECTS. 5Strictly Confidential © 2019 Profisee Group, Inc.
- 6. 05_01_20 WHAT 6Strictly Confidential ©2019 Profisee Group, Inc. Bad Worse Fails to obtain initial funding when competing with other, less valuable priorities Example: Buying a CRM application that the vendor says will increase revenue just by adopting it. Obtains initial funding - but seems to have provided no business value when subsequent funding round takes place. Example: What did we get for all this time, money, and effort? The idea is to have this discussion before any funding is allocated or expended: What will we get for all this time, money, and effort? This will help provide a buffer against disruption by both internal and external events.
- 7. 05_01_20 “Failure to usea structured framework that …fosters business ratification of the financial benefits …often leads to program failure.” 63% of MDM projects will fail to go beyond piloting and experimentation THE MDM BUSINESS CASE IS CRUCIAL Following a structured framework improves success Strictly Confidential © 2018 Profisee Group, Inc. #1 REASON FOR MDM FAILURE “
- 8. 05_01_20 WHY 8Strictly Confidential ©2019 Profisee Group, Inc. The “Usual Suspects” of dysfunctional business cases Better Decisions 2 Single Version of the Truth 3 Better Data Quality 1 360-Degree View of the Customer (Most Common) 4
- 9. 05_01_20 WHY 9Strictly Confidential ©2019 Profisee Group, Inc. “Dis-honorable Mention” to an up-and-comer “Monetize our data” • An excellent and forward-thinking concept which certainly requires robust Master Data Management • However, without specific use cases you will incur the same risks of failure as the “usual suspects” – or worse due to increased ambiguity if this is your only justification
- 10. 05_01_20 “MEANS TO ANEND” = END 10Strictly Confidential © 2019 Profisee Group, Inc.
- 11. 05_01_20 HOW Simple principles andtechniques which will prevent these situations 11Strictly Confidential © 2019 Profisee Group, Inc. Try to state your business case(s) without referring to “MDM” or even “data.” “Increase customer on-barding rate by XX% while reducing error rate to X%.” “Reduce slack in new product introduction cycle by XX%.” “Increase asset uptime by XX%.” If you can’t do this, we have a huge red flag.
- 12. 05_01_20 12Strictly 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
- 13. 05_01_20 USE OF SMARTGOALS TECHNIQUE FOR MDM Specific – target specific area(s) for improvement. Measurable – quantify or at least suggest an indicator of progress. Assignable – specify who will do it. Realistic – state what results can realistically be achieved, given available resources. Time-related – specify when the result(s) can be achieved. Are your business outcomes for your MDM program: Wikipedia contributors. (2019, September 4). SMART criteria. In Wikipedia, The Free Encyclopedia. Retrieved 17:30, September 5, 2019, from https://en.wikipedia.org/w/index.php?title=SMART_criteria&oldid=914043780
- 14. 05_01_20 HOW 14Strictly Confidential ©2019 Profisee Group, Inc. Operational vs. Analytical MDM: While analytical MDM has real benefits, they are often harder to quantify than operational MDM outcomes, though the latter are more difficult to implement. Attaching financial value to the above is the best scenario, but simple workflow metrics are also effective if dollars are a sensitive issue.
- 15. 05_01_20 NOW WHAT… Next Steps Identifya framework Use the framework to connect the benefits of MDM Validate the metrics and priorities with stakeholders Treat the completed framework as a living document • Candidates: Internal ROI methodologies/tools, consulting firms, software vendors • Examples: ERP or CRM implementation/replacement, “one customer,” “one enterprise” • Without broad-based ratification, the effectiveness of the framework is fundamentally compromised • Revisit the metrics and priorities on a regular basis
- 16. 05_01_20 QUESTIONS? 17Strictly Confidential ©2019 Profisee Group, Inc.
Editor's Notes
- #2 This is an introduction slide. Use the title for the title of your presentation. Use the subtitle for the presenter’s name, role, and/or title. Add a graphic pertinent to your presentation on the right side.
- #5 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.
- #6 This is a big impact quote slide. Use this for your most inspiring quote.
- #7 This is a standard content slide. Try not to use the slide for everything. Try one of the background slides, or move some of your content to a callout, especially if you have a lot of text. Your audience will thank you.
- #8 63% of projects don’t get past the funding approval – Profisee experience 80% of project management executives don’t know how their projects align with their company’s business strategy. (Source: Changepoint)
- #13 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.
- #18 This is an impact slide. Use this to exclaim a fundamental, overarching idea that you want to really drive home. Put a big image in the back of the slide for even more impact.