Defining the Why: Justification, Prioritization and Rightsizing for MDM
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This document discusses defining the business justification or "why" for a master data management (MDM) program. It covers: 1. Defining the business perspective on why undertake an MDM program by focusing on problems to solve rather than technical details. This includes categorizing and prioritizing business benefits. 2. Prioritizing where to start the program by focusing efforts on solving business problems. 3. The next part will cover calculating the total cost of ownership and "rightsizing" the initial scope of the MDM program, including which data domains, functions, or organizations to include.
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Defining the Why: Justification, Prioritization and Rightsizing for MDM
- 1. 11 Part 2: Defining the ‘Why’ SELLING MDM TO LEADERSHIP 6 Part Live Panel Series
- 2. 2 Part 1: Organizational Readiness • What Does “Ready” Look Like? Part 2: Defining the Why • Justification – Prioritization - Rightsizing Part 3: TCO Calculation • Solution Complexity Drives TCO Part 4: Program Scope • Quick Wins – Where to Focus – Implementation Styles Part 5: Evaluation Pitfalls • Business Outcomes – Selection Criteria – What to Look for Part 6: Beyond the 1st Use-Case • MDM as a Way of Life – Operational vs. Analytical MDM PANEL TOPICS
- 3. 3 Bill O’Kane Former Gartner Analyst and Profisee VP & MDM Strategist; Bill served for eight years as Vice President of Data and Analytics and Magic Quadrant lead author at Gartner. FEATURED SPEAKERS Christopher Dwight VP of Customer Success at Profisee; Christopher has been in the enterprise information management and master data management (MDM) space for more than 20 years. Harbert Bernard Value Management Consultant at Profisee; Harbert utilizes his expertise around building business cases for investments in technology to develop BIRs (Business Impact Roadmaps) for a range of enterprises. Martin Boyd VP Product Marketing at Profisee; Martin has over ten years’ experience in MDM, governance and data quality.
- 4. 4 PART 2: DEFINING THE WHY
- 5. 5 1.Program Justification – why do anything? DEFINE THE WHY – THE BUSINESS PERSPECTIVE
- 6. 6 WHAT, HOW, WHY 6 Reduce the Sales Cycle Increase Customer Retention Increase Market Share Improve Cross-Sell/Up-Sell Improve Vendor Terms Refine Low Inventory Model Reduce Regulatory Exposure Why You should build your Impact Roadmap around the why Survivorship Cleansing Matching Business Rules Canonical Data Models Workflow Processes Integration How To evaluate technology based on the how Digital Transformation Better Marketing Data Consolidated Data Centralized information 360 degree view Customer Segmentation Improved Data Integration High Quality data What Most build an Impact Roadmap around the what
- 7. 7Strictly Confidential © 2020 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
- 8. 8 1.Program Justification – why do anything? 2.Prioritization – where to start? DEFINE THE WHY – THE BUSINESS PERSPECTIVE
- 9. 9 PROJECTED PROFISEE COST-BENEFIT ANALYSIS Probable Estimates Strictly Confidential © 2020 Profisee Group, Inc. Metric Impact Total 5-Year Benefit: $ 16,434,778 16,434,778 Total 5-Year Investment: $ x,xxx,xxx Total 5-Year Net Benefit: $ xx,xxx,xxx Net Present Value: $ 10,496,657 10,496,657 Return on Investment: 1,453% Internal Rate of Return 790% WACC 10.00% Payback Period: y Monthly Cost of Delay $ 273,913 The economic value of the Profisee MDM solution is persuasive… “ $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 Break Even Cumulative Investment Cumulative Benefit Cumm Ben Cons Cumm Ben Agg
- 10. OUR PROCESS The Value Map And 4 C’s Of Value 4 C’s of Value 0 Value Map Calculation Context Connection Commitment Benefit 1 Benefit 2 Benefit 3 Benefit 4 Benefit 5 Calculation Context Connection Commitment Benefit 1 Benefit 2 Benefit 4 Start End
- 11. 11 Satisfy Regulatory Compliance Detect Fraud Manage Credit Risk Accurate Financial Reporting Asset Impact Management Channel Conflict Prevention Disaster Response Mitigate Risk Reduce Market Spend Data Operations System Consolidation Merger/Acquisition Rationalization Vendor Management Reduce Manual Efforts to address Analytics Data Quality Information Architecture Reduce Mailing/Shipping Logistics Cost Asset Management Reduce Cost Strategic Account Management Cross Channel Upsell Customer Segmentation and Targeted Marketing Cross Channel Customer Experience Increase Average Sale Shorten Sales Cycle Increase Customer Retention Decrease Time to Market Business Planning Increase Revenue BUSINESS OUTCOMES Focus your efforts on solving a problem
- 12. 12 DELIVER BOARD-READY OUTPUT “Before it was just a number, now I understand the problem and I believe the improvement impact” CFO, Food Processor
- 13. 13 1.Program Justification – why do anything? 2. Prioritization – where to start? 3. Rightsizing – picking scope • data domains, functional, organization, etc. DEFINE THE WHY – THE BUSINESS PERSPECTIVE
- 14. 14 Up Next: Part 3: TCO Calculation QUESTIONS?
Editor's Notes
- Justification: You may be able to tell a story around why you need MDM, but do you really understand what's wrong. Should you do something or nothing? If nothing now, when will be the right time? Why do you think you need MDM? Prioritization You can't do it all and you certainly can't do it all at once, so where should you start? What order should you do this in? What are the best ways incrementalize your MDM projects with a focus on quick wins? Rightsizing Break into chunks and show quick wins Think big, start small Don't solve a $1M problem with a $10M solution. What solution do you actually need to solve the problem?
- 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.
- Justification: You may be able to tell a story around why you need MDM, but do you really understand what's wrong. Should you do something or nothing? If nothing now, when will be the right time? Why do you think you need MDM? Prioritization You can't do it all and you certainly can't do it all at once, so where should you start? What order should you do this in? What are the best ways incrementalize your MDM projects with a focus on quick wins? Rightsizing Break into chunks and show quick wins Think big, start small Don't solve a $1M problem with a $10M solution. What solution do you actually need to solve the problem?
- The final result is a board-ready analysis that generally gets rave reviews from our customers. Again – the reason we want to work with our customers on a BIR analysis is that we a re customer-focused and outcome-oriented. We want to help our customers deliver a business result and guide their future MDM journey. Without a roadmap to the business impact, our customers risk wandering in the dark and spending way too many cycles on trial-and-error approaches, and that's not good for anybody.
- Justification: You may be able to tell a story around why you need MDM, but do you really understand what's wrong. Should you do something or nothing? If nothing now, when will be the right time? Why do you think you need MDM? Prioritization You can't do it all and you certainly can't do it all at once, so where should you start? What order should you do this in? What are the best ways incrementalize your MDM projects with a focus on quick wins? Rightsizing Break into chunks and show quick wins Think big, start small Don't solve a $1M problem with a $10M solution. What solution do you actually need to solve the problem?