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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 ...‖
© 2006 The CDI Institute The-CDI-Institute.com
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
CDI Alert™ bi-weekly newsletter
CDI Market Pulse™ monthly surveys
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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?
―Independent, Authoritative, & Relevant‖
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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?”
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
View Customer- Centric View
Universal Customer
View
CDI
360 º Customer
View
Master Customer Info File
Customer System
of Record
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
―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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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%
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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‖
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
Da
ta In
teg
ratio
n
EAI ETL
EII CDI Hub Application Server
RDBMS Server
Web Self- service VRU Telemarketing Call Center ATM Branch Kiosk Personal Banker
Deposits Consumer Credit Cards Wealth Management
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Banking CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
Reduce IT infrastructure costs
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
Business Drivers Technology Challenges
© 2006 The CDI Institute The-CDI-Institute.com
Credit Card Issuer CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
© 2006 The CDI Institute The-CDI-Institute.com
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‖
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
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
Reduce IT infrastructure costs
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
Business Drivers Technology Challenges
HIPAA - Health Insurance Portability & Accountability Act NHIN - National Health Identification Number
NPI - National Provider Identifier
© 2006 The CDI Institute The-CDI-Institute.com
Insurance CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges
© 2006 The CDI Institute The-CDI-Institute.com
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)
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
Top 5 Vendors‘ Mindshare within Financial Svcs
2%
3%
45%
82%
85%
0% 20% 40% 60% 80% 100%
% Responses
1
CD
I V
en
do
r M
ind
sh
are
Fin
an
cia
l S
erv
ice
sCDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
DWL Customer
Siebel Universal Customer Master
IBM Client Information IntegrationSolution
Sanchez CRM
ISI Synchronous
© 2006 The CDI Institute The-CDI-Institute.com
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
Business Drivers Technology Challenges
© 2006 The CDI Institute The-CDI-Institute.com
Top 5 CDI Vendors‘ Mindshare within Telco
2%
3%
5%
15%
16%
0% 5% 10% 15% 20%
% Responses
1
CD
I V
en
do
r M
ind
sh
are
Te
lec
om
mu
nic
ati
on
sCDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
DWL Customer
Oracle Customer Data Hub
Initiate Systems Identity Hub
Siebel Universal Customer Master
Ascential Enterprise Integration Suite
© 2006 The CDI Institute The-CDI-Institute.com
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‖
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
Source: CDI Institute 1H2005 Market Pulse™ Survey
of 12 North American CSP’s IT Organizations
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
© 2006 The CDI Institute The-CDI-Institute.com
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‖
Source: CDI Institute 1H2005 Market Pulse™ Survey
of 12 North American CSP’s IT Organizations
© 2006 The CDI Institute The-CDI-Institute.com
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
Contracted
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Legacy Pharma ―Info Supply Chain‖
ODS
DW
CARS
Siebel
IMS
Wholesaler Fed Govt
SMG SAP
Contracting AMA
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 Office ODS = operational data store
DW = data warehouse
CARS = xxxx
―Treading water …‖
© 2006 The CDI Institute The-CDI-Institute.com
Contemporary Pharma ―Info Supply Chain‖
CDI
Registry/
Hub
Active
Data
Warehouse
CARS
Siebel
IMS
Wholesaler Fed Govt
SMG SAP
Contracting AMA
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 …‖
© 2006 The CDI Institute The-CDI-Institute.com
Top 5 Mindshare within LifeSci/Pharma
3%
5%
18%
43%
65%
0% 10% 20% 30% 40% 50% 60% 70%
% Responses
1
CD
I V
en
do
r M
ind
sh
are
Ph
arm
a /
Lif
e-S
cie
nces
CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004)
Siperian Master Reference Manager
Siebel Universal Customer Master
Dendrite Nucleus
Ascential Enterprise Integration Suite
IBM DB2 Information Integrator
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Top 5 CDI Vendor‘s Mindshare within Public Sector
1%
3%
4%
5%
6%
0% 1% 2% 3% 4% 5% 6%
% Responses
1
CD
I V
en
do
r M
ind
sh
are
Pu
bli
c S
ec
tor
CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004)
Initiate Systems Identity Hub
Ascential Enterprise Integration Suite
Siebel Universal Customer Master
MetaMatrix Server
ObjectStar Enterprise CDI
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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.
Business Drivers Technology Challenges
HIPAA - Health Insurance Portability & Accountability Act NPI – national provider identifier
NHIN - national health identification number
© 2006 The CDI Institute The-CDI-Institute.com
Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Business Drivers
100%
92%
75%
0% 20% 40% 60% 80% 100%
% Responses
1
CD
I B
us
ine
ss
Dri
ve
rs
CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005)
Increase customer satisfaction andretention
Increase profitability
Create operational efficiencies
© 2006 The CDI Institute The-CDI-Institute.com
Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Technology Challenges
100%
100%
92%
88% 90% 92% 94% 96% 98% 100%
% Responses
1
CD
I T
ech
no
log
y C
hall
en
ges
CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005)
Increase flexibility to add newprocesses via service-orientedarchitecture
Integrate with legacy applications anddatabases
Provide extreme scalability in datavolumes
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
―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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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)
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
#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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
i2/Teradata Master Data Management
Strengths Full lifecycle Integrated customer,
product & vendor master data
Full SOA Retail & mfg expertise Data model flexibility Focus on MDM Teradata partnership
Weaknesses Lack of strong SI
channel Under invested in
marketing Lack of CDI references
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
Initiate Systems Identity Hub
Weaknesses Lack of strong SI
channel Under invested in
marketing Persistence story
unsubstantiated Lack of integrated
DQ
Strengths Fast time-to-value Public references
Countrywide, Hyatt, Intuit, Microsoft, US VA, …
Healthcare, hospitality & retail pharmacy expertise
Probabilistic matching Real-time match
scalability Fast growth curve via
new business
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
Kalido MDM
Strengths Public references
BP, InBev, Owens Corning, Shell, …
MDM methodology
Reference data support
Weaknesses Lack of strong SI
channel
Under invested in marketing
Enterprise DW positioning overlay
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
Oracle-Siebel Universal Customer Master
Weaknesses Public references
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
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
Purisma Customer Registry
Weaknesses Lack of strong SI
channel Under invested in
marketing Scarce references
Strengths Hierarchy
management B2B model Business Objects
integration partnership
Cross investments (Informatica, Hyperion, …)
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
SAP NetWeaver Master Data Management
Weaknesses Lack of strong SI channel Under invested in
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, …
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
Field Report:
Siperian Master Reference Manager
Strengths Public references
Allergan, DTCC, Genentech, Lexis Nexis, Pfizer, Roche, SanLam, State Street Bank, …
Pharma expertise
Data model flexibility
Hierarchy management
Weaknesses Lack of strong SI channel
Under invested in marketing
Focus on batch vs. just-in-time
―Pharma-centric‖
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
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‖
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
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
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
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
Business Issues Technology Solution
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
© 2006 The CDI Institute The-CDI-Institute.com
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
―Independent, Authoritative, & Relevant‖
© 2006 The CDI Institute The-CDI-Institute.com
Thanks
Bhawani Nandan Prasad
Bhawani.prasad@agreeya.net
+91 9717570222