The document discusses the concept of Master Data Management (MDM) and its significance during times of crisis, especially in enterprise environments. It outlines market trends, growth forecasts, and evolving strategies for effective data governance and MDM implementation among large organizations. Additionally, it addresses the technical challenges and future directions in MDM, highlighting the need for comprehensive solutions that integrate multiple data domains.

1. “ Capitalising on MDM in Times of Crisis” MDM SUMMIT Asia-Pacific 2009 Keynote Aaron Zornes Chief Research Officer The MDM Institute [email_address] +1 650.743.2278

2. Who Are You? Accenture Acxiom Alphapharm Altis Consulting AMP ANZ Banking Group ASIC Bendigo Bank Bluescope Steel BusinessMinds CIO Network Coates Cognizant Technology Solutions Commonwealth Bank CommSec Connect Pacific Crane Group Deloitte Department of Education, Employment & Workplace Relations Department of Environment & Climate Change NSW Department of Human Services (VIC) Doll Martin Associates Easy & Natural Australia Energy Australia Esprit Fairfax Media Fosters Group Gallagher Bassett GE GPT Group GS1 Harvey Norman Hurricane Media Hutchison 3G Hyundai Infowit ING Direct Initiate Systems Insight2Action Insurance Australia Group Lend Lease Medibank Private Metcash MicroStrategy MIP National Australia Bank Navitaire News Limited NRMA Insurance, SGIO & SGIC NSW Health NSW Treasury Corporation Oakton oOH! Media Oracle Origin Energy Patni Platon Qantas QBE Queensland Government Chief Information Office Queensland Rail Railcorp Rio Tinto SAS Institute Australia Satyam Servien St George Bank Stanwell Corporation Star Track Express Suncorp Sydney Airport Corporation Sydney Ports Sydney Water Corporation Telstra TIBCO Software TOGA Group Trillium Software UTelco Systems Virgin Blue Wave Business Wesfarmers Westpac Woolworths

3. About the MDM Institute Founded 2004 to focus on MDM business drivers & technology challenges MDM Advisory Council™ of 100 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects MDM Business Council™ website access & email support to 15,000+ members MDM Road Map & Milestones™ annual strategic planning assumptions MDM Alert™ bi-weekly newsletter MDM Market Pulse™ monthly surveys MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Madrid, Sydney, Toronto, & Tokyo “ Independent, Authoritative, & Relevant” About Aaron Zornes Most quoted industry analyst authority on topics of MDM & CDI Founder & Chief Research Officer of the MDM Institute Conference chairman for DM Review’s 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

4. MDM Institute Advisory Council 3M Autotrader Bell Canada Caterpillar Cisco Systems Citizens Communications COUNTRY Financials Educational Testing Svcs EMC GE Healthcare Honeywell Information Handling Services Intuit McKesson Medtronic 100 organisations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads Representative Members Microsoft Motorola National Australia Bank Nationwide Insurance Norwegian Cruise Lines Novartis Polycom Roche Labs Rogers Communications Scholastic Stryker SunTrust Westpac Weyerhaeuser Woolworths

5. Enterprise Master Data Management 1 Market Review & Forecast Forrester “ US$344M total MDM S/W market size (not including services) in 2006” “ MDM anticipated growth to over US$2.2B by 2010” Gartner “ MDM for customer master will hit ~ US$1B in S/W revenue by 2012” “ With PIM & other domains, it could be over US$2B” IDC “ Market for w/w MDM Software & Services to US$7.9 billion in 2009, with CAG of 16.6% over 2006-2011 forecast period” MDM Institute “ Overall MDM market (customer & product hubs, plus systems implementation services) to grow to US$2 billion by 2012” Clearly, enterprise MDM is a major IT initiative being undertaken by large number of market-leading Global 5000 size enterprises 1 – MDM Institute MarketPulse™ report (55 pages) Overview of enterprise MDM Strategic planning assumptions for Global 5000 & SMBs Enterprise MDM market forecast for 2008-12 Leading MDM vendor profiles & field reports

6. Recent Uptake of MDM Solutions Allianz/FFIC Avaya Belgacom Cadbury Schweppes Capital One Carrefour Cisco Clear Channel Cummins Daimler Dell DHL Dubai World FedEx Fidelity Genworth Global 5000 HBOS/LLTSB JC Penney Johnson Controls Marriott Network Rail Pepsi Americas Posten (Norway) Qwest Safeway TDK Telecom Egypt Volkswagen Walgreens Wendy’s Yellow Book

7. Working Definitions Data Governance (DG) Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset. CDI is mandatory first step for most organisations on journey to MDM Master Data Management (MDM) Authoritative, reliable foundation for data used across many applications & constituencies with goal to provide single view of truth no matter where it lies. Product Information Management (PIM) Processes & technologies for recognizing PRODUCT, SUPPLIER, & PRICING master data 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.

8. Working Sub-Definitions For most G5000 enterprises, multiple (often all) variants will be needed to make MDM initiatives successful Analytical MDM Definition, creation, & analysis of master data; examples: counterparty risk mgmt apps & financial reporting consolidation Collaborative MDM Definition, creation, & synchronization of master reference data via workflow & check-in / check-out services; examples: PIM data hubs & AML Operational MDM Definition, creation, & synchronization of master data required for transactional systems & delivered via SOA; examples: near R/T customer hubs & securities masters

9. Enterprise Master Data Management: Market Review & Forecast for 2008-12 Compliance & regulatory reporting Economies of scale for M&A Synergies for cross-sell & up-sell Legacy system integration & augmentation “Once & done” economies & customer satisfaction Enterprise MDM is increasingly mandated to manage master data (customers, accounts, products, etc.) that has significant impact on enterprises’ most important business processes “ Top Five” Business Drivers for MDM Initiatives

10. Enterprise Master Data Management: Market Review & Forecast for 2008-12 Rapid growth of MDM market into mid-market as well as across industries & geographies Steady evolution away from data-centric hubs into application hubs Elemental movement towards “enterprise MDM” in multiple phases Futile dogmatic resistance is fading against the power of multiples Inexorable shift to formal data governance structures The market for MDM solutions is significantly & quickly expanding – across geographies, industries, & price points “ Top Five” Report Findings

11. Solidified Requirements for 3 rd Generation MDM Solutions SOA/shared services architecture with evolution to “process hubs” Sophisticated hierarchy management High-performance identity management Data governance-ready framework Persisted, registry & hybrid architecture flexibility MDM has morphed from “early adopter IT project” to “Global 5000 business strategy”; phase 2 MDM deployments are already fusing party & product domains MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT

12. Evolving Requirements for 4 th Generation MDM Solutions Multi-entity MDM Process/policy hub architecture Unstructured information support Integrated data governance Enterprise search G5000 enterprises’ business strategies mandate long term, strategic “multi-entity MDM” – in turn enabled by policy-driven data governance MASTER DATA SEARCH MASTER DATA MODELING MASTER DATA APPLICATIONS MDM MASTER DATA PREPAR-ATION MASTER DATA GOVERNANCE MASTER DATA MOVEMENT

13. Business Value of Multi-Entity MDM With a 4 th generation MDM platform, an enterprise will be better able to Identify & provide differentiated service to its most valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers Introduce new products & product bundles more quickly across more channels to reduce the cost of New Product Introduction (NPI) Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years

14. MDM Technical Challenges 2009-10 High RAS (reliability, availability, scalability) infrastructure Flexibility in mash-up of extreme data velocity & variety Inline analytical MDM processes supporting operational MDM Customer:product conundrum Lack of standards – BPM, rules engines, metadata Adherence to evolving security & privacy requirements Lifecycle approach to data assets Market is hyper dynamic in available solutions; requirements vary by industry, scale & business complexity Historical MDM Solutions Synchronization Enterprise Application Integration (EAI) Extract Transform Load (ETL) Replication Aggregation Master Customer Files/DBs MDM

15. MDM Milestones www.tcdii.com/mdmresearch/assumptions.html Market maturation Market momentum Market consolidation Budgets/skills Data governance MDM convergence Architecture & data models Identity resolution Party data quality Analytics Policy hubs Enterprise search Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of evolving MDM vendor landscape

16. Market Maturation Strategic Planning Assumption During 2009, the MDM market will continue to shift gears from “early adopter” to “mainstream” as 95%+ of financial services, communications services, high tech, & pharma/life sciences enterprises actively explore to replace homegrown MDM solutions Through 2010-11, verticalization/horizontalization of MDM solutions will expand beyond corporate financial reporting, EMPI healthcare, etc. into financial services & government especially By 2012, the market for enterprise MDM solutions (software & services) as both strategic initiatives & to refresh aging legacy MDM capabilities will exceed US$3B MDM MILESTONE

17. Market Momentum Strategic Planning Assumption During 2009, MDM solutions such as IBM, ORCL, SAP, & TDC will monopolize majority market share in the G5000 enterprise; while mid-market solutions arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes/G1, SAS/DataFlux, Trillium) Through 2010, both mega & best-of-breed MDM vendors will aggrandize the traditional master customer DB business of Data Service Providers (e.g., ACXM, DNB, & Experian) as these vendors sprint to deliver on-premise data hub solutions By 2012, every major application & database vendor will provide either native or OEMed MDM capability – including DOX, MSFT, & CRM MDM MILESTONE

18. Market Consolidation & Diversification Strategic Planning Assumption During 2009, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDM-centric portfolio with ORCL & SAP challenged additionally in moving from silo’ed application architectures into SOA-based architectures (Fusion & NetWeaver) By 2010, IBM (ASCL/CRSW/DMC/DWL/LAS/Princeton Softech/ SRD/Trigo/Unicorn) & ORCL (HYSL/iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most architectural/ BPM/ metadata/platform issues that confounded SAP earlier (A2i/BOBJ/Callixa) Through 2011-12, mega IT vendors (IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors (DNB/Purisma, i2, Initiate Systems, Kalido, Siperian) thriving in specific industries & horizontal/corporate applications MDM MILESTONE

19. Budgets & Skills Strategic Planning Assumption During 2009, G5000 size enterprises will spend US$1M for MDM software, with addt’l US$3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators Throughout 2010, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & individuals with data governance experience outstrip market supply; concurrently, SIs will fill void in classic style by baiting & switching veterans for rookies By 2012, market will stabilize as enterprises react by training & protecting their own MDM staff with specific product & project expertise; until then, enterprises will struggle with re-skilling same resources multiple times as emerging/evolving data management technologies mature (e.g., Fusion, Netweaver, …) MDM MILESTONE

20. Career Tracks Strategic Planning Assumption Scarcity of “hands on” MDM experience exists During 2007-08, 1,500+ product-specific consultants albeit with little “real world” experience with mainstay MDM solutions were trained up Current shortage lends itself to same scenario 5-10 years ago with SAP’s ABAP 4GL – i.e., inflated prices & resumes with many junior SI staff spinning up to speed at client’s expense (a.k.a. “Androids”) Market for expertise will create major demand for corporate MDM positions during next 3-5 years Data Steward , Enterprise Data Architect , Enterprise Data Modeler, Ctrs of Excellence, MDM Programmers Product-Neutral Product-Specific Off-Shore On-Site

21. Data Governance Strategic Planning Assumption During 2009, most enterprises will struggle with cross-enterprise DG scope as they initially focus on customer, vendor, or product; enterprise-level DG that includes entire master data lifecycle will be mandated as core phase 0/1 deliverable of large-scale MDM projects Through 2010, major SIs & MDM boutiques will focus on productizing DG frameworks while MDM software providers struggle to link governance process with process hub technologies; concurrently G5000 enterprises struggle to evolve enterprise DG in cost-effective & practical way from “passive” to “active” DG modes By 2011-12, mega vendor MDM solutions will finally move from “passive-aggressive DG” mode to “active DG” MDM MILESTONE Data governance will remain problematic during 2009-10 for organisations attempting to scale into phase 2 MDM

22. MDM Convergence Strategic Planning Assumption During 2009, party & product data interdependencies will quickly broaden MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum Through 2010-11, G5000 enterprises will broaden their MDM business initiatives from single use case, single entity to multi-style, multi-entity By 2012, enterprises without long-term multi-entity MDM strategy run ironic risk of building “MDM silos” SOA-based multi-entity MDM manages master data domains (customers, accounts, products, etc.) with significant impact on most important business processes

23. Why “Multi-Entity MDM”? Why Now? Future direction is to grow all reference masters into operational masters Future MDM landscape Multiple data domains Multiple relationships Multiple usage styles – analytical, operational & collaborative Linkage between operational data domains using collaborative or analytical MDM Enterprise MDM = multi-entity MDM – such epiphany enables the enterprise to avoid “random acts of MDM” Pricing Policy Hub Pricing Reference Master CDI Hub Location Master Customer Registry PIM Data Hub Evolutionary Multi-Entity MDM Entity-Specific MDM Data Marts Myopic Strategic

24. Architecture & Data Models Strategic Planning Assumption During 2009, vendors will expose MDM capabilities as “always on” services in loosely-coupled architectures; enterprises will begin establishing a central, business-side led data mgmt team with embedded data quality & external data update services in flow of core business processes During 2010, mega vendors (IBM, ORCL, SAP, TDC) will focus significant resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialization in B2B/B2B2C hierarchy management & distributed MDM Not until 2011-12, will mega MDM vendors rewire foundational software to fully support strategic application infrastructure (Fusion, NetWeaver, …) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th gen full spectrum hubs that support structured & unstructured info MDM MILESTONE

25. Identity Resolution Strategic Planning Assumption During 2009, independent DQ vendors (AddressDoctor, G1, HI, Trillium) will focus on name & address cleansing as they struggle against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor MDM; ongoing challenge will be aggregation of customer data balanced against privacy dictates During 2009-10, MDM capabilities for classifying, discovering & archiving party relationships while maintaining privacy will become major requirement; concurrently, users will be challenged to discern price/performance/scalability & accuracy of matching algorithms; By 2011-12, use of cross platform/cross brand customer keys will become core to enabling seamless loyalty programs & online services; sophisticated MDM hierarchy management capabilities will include “global IDs” as mainstay feature to link both legacy & newly-built hubs with DSP’s enrichment data MDM MILESTONE

26. Market Update for Product Master Data Adoption of MDM for product is increasingly widespread across all industries Like party master data, product master data spans multiple use cases & implementation styles Diverse range of vendors is targeting the PIM market – enterprise application suite vendors, best-of-breed PIM vendors, best-of-breed procurement vendors, industry-specific product masters, analytical MDM vendors, … even CDI hub vendors No vendor dominates Enterprise application suite vendors will redouble R&D & marketing efforts during 2009-10 Broader & deeper PIM requirements are pushing vendors to develop more comprehensive solutions; the PIM hub market will continue to grow quickly & attract new entrants

27. Findings The value of “enterprise MDM” can be intuitively recognized in a range of business initiatives – from short-term fixes to a narrow set of problems such as capturing customer privacy preferences across product lines to long-term enterprise-wide initiatives delivering infrastructure agility by embracing SOA. MDM Institute Advisory Council Consensus December 2008 internal round table Even tactical MDM projects require facets of the “enterprise MDM” solution set; enterprises must plan now to realize economic value & competitive differentiation via 4th generation MDM during next 2-5 years

28. Summary Enterprise MDM is major IT initiative underway at large # of market-leading Global 5000 enterprises Most enterprises & solutions vendors are finding near-term success with single-faceted approach inherent with 3 rd generation MDM solutions Myopically focusing solely on single data domain & usage style is detrimental to longer term business strategy of integrating supply, demand, & info chains across both intra- & extra-enterprise boundaries Coming to market during 2009-10 are 4 th generation multi-entity MDM solutions which address requirement for multiple domains & styles as well as roles of consumers Learn from MDM early adopters & prepare now for “Enterprise MDM” to increase business value & lower costs

29. Bottom Line Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade Begin MDM projects focused on either customer-centricity or product/service optimization Plan for multi-entity MDM juggernaut evolving from “early adopter” into “competitive business strategy” Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains Plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years

30. MDM SUMMIT™ Conference Series MDM SUMMIT Canada 2008 Toronto Holiday Inn on King Street | February 4 – 5, 2008 MDM SUMMIT – Spring 2008 Hilton San Francisco | March 30 – April 1, 2008 MDM SUMMIT - Europe 2008 London Royal Garden Hotel | April 21 – 23, 2008 MDM SUMMIT Asia-Pacific 2008 Sydney Sofitel Wentworth Hotel | April 28 – 30, 2008 MDM SUMMIT – Fall 2008 New York Hilton | October 20 – 22, 2008 MDM SUMMIT Europe 2009 Park Plaza Victoria Hotel | April 20 – 22, 2009 MDM SUMMIT Asia-Pacific 2009 Four Points by Sheraton Sydney | April 28 – 29, 2009 MDM SUMMIT Canada 2009 Radisson Hotel Admiral Toronto-Harbourfront | June 25 – 26, 2009 MDM SUMMIT Southern Europe & Deutschland 2009 Madrid & Frankfurt | Late Summer 2009 / Virtual MDM SUMMIT Americas 2009 San Francisco Hyatt Regency | August 24 – 26, 2009

31. Authoritative Relevant Independent Aaron Zornes Founder & Chief Research Officer The MDM Institute The-MDM-Institute.com a.k.a. www.tcdii.com