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MDM 2009

Your Text here                                                                               Your Text here




                                 Einat Shimoni
                             EVP & Senior Analyst
                            Enterprise Applications,
                           Analytics & KM Strategies
                  www.einatstki.blogspot.com
  Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   1
MDM Definition

“The set of disciplines and methods to ensure the
currency, meaning and quality of a company’s reference
data within and across subject areas & systems.

MDM ensures that your systems leverage and reuse
common, accurate business data.”
Source: http://www.information-management.com

                                                                                                       Sound
                                                                                                      familiar?

                                                                                  Weren’t CRM/ERP/EDW/SOA projects
                                                                                      supposed to handle this…?
          Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   2
How did we try to solve this?
 Homegrown MDM solutions
 CRM as MDM for customer data
 Operational system as “master data” store
 DW acts as MDM (data model and type of data
  stored is not usually right for this)




      Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   3
The business problem

How is a customer defined across all business
 units and verticals?
How can we shorten time to realize benefits
 from M&As?
Is there a standard hierarchy of products or
 product catalog?




      Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   4
The Technological Problem
Legacy data sets are modeled with vertical
 applications in mind, which leads to the duplication
 of the same information across multiple data sets
Creating one “single version of the truth” (source
 of information) isn’t enough, you have to control
 the way end users extract and use it
Organizations with vertically structured IT
 organizations may not be "politically" ready for the
 move toward a centralized representation of
 customer information


       Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   5
Another MDM definition

 Master data refers to the data elements that describe the core business
  entities (customer, product, employee, organization, location).
 The management of master data is the practice of defining, standardizing,
  and maintaining the data elements for these core business entities. In
  other words, MDM is the management of the organization’s data assets.
 Any successful MDM implementation needs a set of disciplines, policies,
  procedures,Text here
          Your methods, and infrastructure, along with Your Text here who have
                                                        individuals
  authority over, are accountable for, and administer the data.



   Source: Cutter Consortium




              Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   6
IT and Business services


                                                                                      What’s in the product?
                                                                                      The actual MDM Hub
                                                                                       Specific data models
                                                                                      Data Integration tools
                                                                                        Data Quality tools
                                                                                           Enrichment
                                                                                        Data Governance




           Source: Adastra

MDM is a strategic business (and sometime political) toolset
                  for data ownership and governance
        Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 7
Many terms…



Decision rights and accountability for data


      Your Text here                                                                               Your Text here




      Source: The MDM Institute

        Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   8
Benefits of using MDM
 One common view of key business data
 Leverages existing infrastructure
 Increasing ROI from application projects
 Enforcing “Data Policies”
 Reduces duplicate data entry
 Cleaner information
 Ability to execute processes faster (e.g –
  marketing plans)
 Cases in which MDM is most important:
    M&A faster time to benefit
    Compliance reporting


       Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   9
MDM Hub “Styles”




   Your Text here                                                                              Your Text here




   Source: MDM Institute
    Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   10
MDM Maturity model




   Your Text here                                                                              Your Text here




    Source: baseline consulting, TDWI
    Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   11
MDM is a “SOA” way to look at data

                                                                          SOA Application Platform




                                                                         SOA Information Platform
                                                                          Business Data services




                                                                       SOA Infrastructure Platform




    Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   12
Trends in MDM market
Expected to exceed $3B by 2012 (MDM Institute)
Move to vertical/horizontal solutions: EMPI, CDI,
 PIM, Financial reporting
MDM “silos”/single entity (1st step) as opposed to
 enterprise MDM (2nd step for very large enterprises)
Wanted: MDM and Data governance specialists




       Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   13
STKI CIO Survey 2009:                                                                                       Data
                                                                                                                           Mng.
          Are you planning to enter MDM?                                                                                  Trends
                                                                                                                    60%



                                                                                      51%
                                                                                                                    50%




                                                                                                                    40%
                                                                                                 36%
                                                          35%



                  27%
                                               26%
                                                                                                                    30%
                                                                                                                           2008
                                                                                                                           2009
                                                                                                                    20%



       11%
                                                                                                                    10%




                                                                                                                    0%

Not familiar with term                         No plans                      Plans to enter MDM

   Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic      14
Data
                     MDM Reality in Israel                                                                                    Mng.
                                                                                                                             Trends


 Most Israeli organizations don’t have a business
  entity that is in charge of Data
 Organizations like the MDM model and concept
 Some are considering using their DW as MDM
  (some are starting to)… but wondering about
  the data model
 Drivers:
    Compliance and regulatory reporting
    Economies of scale for M&As
    Cross/Up-sell
    Legacy apps
      Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic      15
Data
                           Recommendations                                                                                    Mng.
                                                                                                                             Trends

 Establish a global design but take a low-risk
  phased implementation approach
 Data Governance program is a MUST
 Be aware of the politics involved (executive
  sponsorship is helpful)
 Who are the data stewards? (they will be
  managing the data)
 Top-down approach, start with the business
 Think of it as a “Way of life”, not a project
 Avoid heavy customizations, products are
  evolving quickly
      Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic      16
For more ideas and research go to:
   www.einatstki.blogspot.com
Thank you!

                               Einat Shimoni
                               EVP & Senior Analyst
                               Enterprise Applications,
                               Analytics & KM Strategies




  Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic   18

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Mdm 2009 trends

  • 1. MDM 2009 Your Text here Your Text here Einat Shimoni EVP & Senior Analyst Enterprise Applications, Analytics & KM Strategies www.einatstki.blogspot.com Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 1
  • 2. MDM Definition “The set of disciplines and methods to ensure the currency, meaning and quality of a company’s reference data within and across subject areas & systems. MDM ensures that your systems leverage and reuse common, accurate business data.” Source: http://www.information-management.com Sound familiar? Weren’t CRM/ERP/EDW/SOA projects supposed to handle this…? Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 2
  • 3. How did we try to solve this?  Homegrown MDM solutions  CRM as MDM for customer data  Operational system as “master data” store  DW acts as MDM (data model and type of data stored is not usually right for this) Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 3
  • 4. The business problem How is a customer defined across all business units and verticals? How can we shorten time to realize benefits from M&As? Is there a standard hierarchy of products or product catalog? Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 4
  • 5. The Technological Problem Legacy data sets are modeled with vertical applications in mind, which leads to the duplication of the same information across multiple data sets Creating one “single version of the truth” (source of information) isn’t enough, you have to control the way end users extract and use it Organizations with vertically structured IT organizations may not be "politically" ready for the move toward a centralized representation of customer information Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 5
  • 6. Another MDM definition  Master data refers to the data elements that describe the core business entities (customer, product, employee, organization, location).  The management of master data is the practice of defining, standardizing, and maintaining the data elements for these core business entities. In other words, MDM is the management of the organization’s data assets.  Any successful MDM implementation needs a set of disciplines, policies, procedures,Text here Your methods, and infrastructure, along with Your Text here who have individuals authority over, are accountable for, and administer the data. Source: Cutter Consortium Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 6
  • 7. IT and Business services What’s in the product? The actual MDM Hub Specific data models Data Integration tools Data Quality tools Enrichment Data Governance Source: Adastra MDM is a strategic business (and sometime political) toolset for data ownership and governance Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 7
  • 8. Many terms… Decision rights and accountability for data Your Text here Your Text here Source: The MDM Institute Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 8
  • 9. Benefits of using MDM  One common view of key business data  Leverages existing infrastructure  Increasing ROI from application projects  Enforcing “Data Policies”  Reduces duplicate data entry  Cleaner information  Ability to execute processes faster (e.g – marketing plans)  Cases in which MDM is most important:  M&A faster time to benefit  Compliance reporting Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 9
  • 10. MDM Hub “Styles” Your Text here Your Text here Source: MDM Institute Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 10
  • 11. MDM Maturity model Your Text here Your Text here Source: baseline consulting, TDWI Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 11
  • 12. MDM is a “SOA” way to look at data SOA Application Platform SOA Information Platform Business Data services SOA Infrastructure Platform Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 12
  • 13. Trends in MDM market Expected to exceed $3B by 2012 (MDM Institute) Move to vertical/horizontal solutions: EMPI, CDI, PIM, Financial reporting MDM “silos”/single entity (1st step) as opposed to enterprise MDM (2nd step for very large enterprises) Wanted: MDM and Data governance specialists Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 13
  • 14. STKI CIO Survey 2009: Data Mng. Are you planning to enter MDM? Trends 60% 51% 50% 40% 36% 35% 27% 26% 30% 2008 2009 20% 11% 10% 0% Not familiar with term No plans Plans to enter MDM Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 14
  • 15. Data MDM Reality in Israel Mng. Trends  Most Israeli organizations don’t have a business entity that is in charge of Data  Organizations like the MDM model and concept  Some are considering using their DW as MDM (some are starting to)… but wondering about the data model  Drivers:  Compliance and regulatory reporting  Economies of scale for M&As  Cross/Up-sell  Legacy apps Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 15
  • 16. Data Recommendations Mng. Trends  Establish a global design but take a low-risk phased implementation approach  Data Governance program is a MUST  Be aware of the politics involved (executive sponsorship is helpful)  Who are the data stewards? (they will be managing the data)  Top-down approach, start with the business  Think of it as a “Way of life”, not a project  Avoid heavy customizations, products are evolving quickly Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 16
  • 17. For more ideas and research go to: www.einatstki.blogspot.com
  • 18. Thank you! Einat Shimoni EVP & Senior Analyst Enterprise Applications, Analytics & KM Strategies Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 18