“The World Is Flat”€¦ · “The World Is Flat” Data structures & business processes must...

© 2007 The CDI-MDM Institute The-CDI-MDM-Institute.com

“The World Is Flat”

Data structures & business processes must be supremely flexible

Underlying IT infrastructure must enable new business models

Policies/process flows must integrate in ways previously problematic

EAI = enterprise application integrationETL = extract-transform-loadMDI = master data integrationSOA = service-oriented architecture

Value of Integration Exceeds Value of Build/Buy

Valu

e

Time

Value ofIntegrating Applications

Value ofBuilding

Applications

ETL EAI MDI

MonolithicApps

Client/ServerApps

SOA/Web Services

Global competition mandates a wide variety of new business styles


Business Drivers 2007-08

Just-in-time 21st century business models mandate both agility & integration across enterprise to

Provide higher profitabilityReduce operations costs Increase accuracy of regulatory compliance

Emergence of “demand chains”mandates synergetic approach across both “party” & “product”master systems via common business servicesM&A as a business strategy

Agile Enterprise

Contemporary business strategies mandate flexible infrastructure –propelling CDI-MDM into “Top 10” initiative

Self-DirectedService

M&A“Ready”

RapidNPI

Integrated Risk

Mgmt

Co-opetition

“Demand”Chains


Technical Challenges 2007-08

High RAS (reliability, availability, scalability) infrastructure Flexibility in mash-up of extreme data velocity & varietyInline analytical MDM processes supporting operational MDM Customer:product conundrumLack of standards – BPM, rules engines, metadataAdherence to evolving security & privacy requirementsLifecycle approach to data assets

Market is in flux with no dominant vendor or architecture; requirements vary by industry, scale & business complexity

Historical MDM Solutions

Synchronization

Enterprise Application Integration(EAI)

ExtractTransform

Load (ETL)

Replication

Aggregation

MasterCustomer

Files/DBs

MDM


Working Definitions

Data Governance (DG) Data Governance (DG)

Customer Data Integration (CDI)

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)

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.

CDI is mandatory first step for most organizations on journey to MDM


Working Sub-Definitions

For most G5000 enterprises, multiple (often all) variants will be needed to make MDM initiatives successful

Analytical MDM Analytical MDM Definition, creation, & analysis of

master data; examples: counterparty risk mgmt apps &

financial reporting consolidation

Collaborative MDM Collaborative MDM Definition, creation, &

synchronization of master reference data via workflow & check-in / check-out services;

examples: PIM data hubs & AML

Operational MDM Operational MDM

Definition, creation, & synchronization of master data

required for transactional systems & delivered via SOA; examples: near R/T customer

hubs & securities masters


CDI-MDM Milestones

Market maturation

Market momentum

Market consolidation

Budgets/skills

Data governance

MDM convergence

Architecture & Data Models

Customer identification

Master data delivery

Analytics

Policy hubs

Enterprise search

Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn

of emerging CDI-MDM vendor landscape


Market MaturationStrategic Planning Assumption

During 2007, the CDI-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 plan to replace homegrown CDI-MDM solutionsThrough 2008-09, verticalization/horizontalization of CDI-MDM solutions will expand beyond financial reporting, EMPI healthcare, etc. into financial services & government especiallyBy 2010, the market for MDM solutions (software & services) will exceed US$2B

CDI-MDM MILESTONE


Market MomentumStrategic Planning Assumption

During 2007-08, CDI-MDM solutions such as IBM, ORCL, SAP, & TDAT will monopolize majority market share in the G5000 enterprise; while mid-market solutions will arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes, SAS/DataFlux, Trillium)Through 2008-09, both mega & best-of-breed CDI-MDM vendors will aggrandize the traditional master customer DB business of Data Service Providers such as ACXM, DNB, & GUS/Experian as these vendors struggle to deliver on-premise CDI hub solutionsBy 2009-10, every major application & database vendor will provide either native or OEMed CDI-MDM capability – including DOX, MSFT, & CRM

CDI-MDM MILESTONE


Market Consolidation & DiversificationStrategic Planning Assumption

During 2007, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDM-centric portfolioBy 2008-09, IBM (ASCL/CRSW/DWL/LAS/SRD/Trigo/ Unicorn) & ORCL (iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most of the same architectural/BPM/metadata/platform issues that confounded SAP earlier (SAP MDM/A2i xCat/Callixa)Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDAT) will dominate the CDI-MDM market with niche/best-of-breed vendors (i2, Initiate Systems, Kalido, Purisma, Siperian) thriving in specific industries & horizontal/corporate applications

CDI-MDM MILESTONE


Budgets & SkillsStrategic Planning Assumption

During 2007, typical G5000 size enterprise will budget/spend US$1M for CDI-MDM software, with an additional US$3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related acceleratorsThroughout 2007-08, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & other individuals with strong affinity for data governance will outstrip the market for experienced individuals; concurrently, Systems Integrators will fill the void in their classic style by baiting & switching senior veterans for junior rookiesBy 2008-09, the market will have stabilized as enterprises react by training & protecting their own CDI-MDM staff with specific software product & project expertise

CDI-MDM MILESTONE


Data GovernanceStrategic Planning Assumption

During 2007, enterprise-level data governance will be mandated as a core deliverable of large-scale CDI-MDM projects delivered via RFPsThrough 2007-08, major systems integrators & CDI-MDM boutiques will focus on productizing their data governance frameworks while most CDI-MDM solution providers will struggle to link business process design with process hub architectureBy 2008-09, both corporate & LOB data stewards will be a common position as Global 5000 enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset.

CDI-MDM MILESTONE


MDM ConvergenceStrategic Planning Assumption

During 2007, customer & product data interdependencies will quickly broaden CDI-MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as Collaborative MDM to assuage the multi-hub conundrumThrough 2007-08, select best-of-breed vendors (Kalido, Purisma, Siperian, Stratature) will provide multi-hub (entity, architecture & brand) connectivity via hierarchy management extensionsBy 2008-09, enterprises without an overall, long-term MDM strategy run the ironic risk of building “MDM silos”

CDI-MDM MILESTONE


Architecture & Data ModelsStrategic Planning Assumption

During 2007, market will further evolve as vendors specialize at Analytical MDM & Operational MDMDuring 2008-09, mega vendors (IBM, ORCL, SAP, TDAT) will continue to focus significant R&D & mktg resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialization in B2B/B2B2C hierarchy mgmt & distributed CDI-MDMNot until 2009-10, will mega CDI-MDM vendors have rewired foundational software to fully support strategic application infrastructure (Oracle Fusion, SAP NetWeaver, et al) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th generation, full spectrum hubs that support both structured & unstructured information

CDI-MDM MILESTONE


Customer IdentificationStrategic Planning Assumption

During 2007, independent DQ vendors focus on name & address cleansing as their forte as they struggle to compete against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor CDI-MDM solutionsBy 2008, sophisticated hierarchy mgmt capabilities will include “global IDs” as mainstay feature for all CDI-MDM vendors to link both legacy & newly-built hubs with Data Service Providers’ enrichment data; concurrently, support for metadata repositories to link mega vendors’ multitude of acquisitions will continue to significantly lagThrough 2009-10, high-speed probabilistic matching algorithms will dominate over deterministic models despite hybrid solutions providing the best results

CDI-MDM MILESTONE


Master Data DeliveryStrategic Planning Assumption

During 2007, EAI/EII/ETL vendors will scurry to either add persistence to products or align with CDI-MDM vendors as a complimentary role by enabling hubs to interweave data from multiple diverse master sources with persisted master data Through 2007-08, systems performance will remain problematic as enterprises hedge between virtual, persisted & composite/hybrid hubs; applying point solutions such as EII middleware will help adjudicate both performance & political stalematesThrough 2008, these M/W vendors will thrive (& be acquired) by providing increased throughput & additional repurposing/publishing capabilities to classical CDI-MDM solutions; by 2009, these vendors will be fully assimilated

CDI-MDM MILESTONE


AnalyticsStrategic Planning Assumption

During 2007, the convergence of CDI-MDM & business intelligence (BI) will accelerate as enterprises leverage CDI-MDM concepts in a BI contextThrough 2008-09, ongoing evolution of Analytical MDM & Operational MDM increasingly benefit enterprises by blending such transactional hubs with master reference data repository By 2010, inline & real-time analytics derived from MDM-enabled aggregation of both transactional & historical data will have become the major source of sustainable competitive differentiation for Global 5000 enterprises

CDI-MDM MILESTONE


Policy HubsStrategic Planning Assumption

During 2006-07, CDI-MDM vendors will lag their BPM counterparts in providing workflow orchestration to synchronize the trusted sources that comprise a federated master data storeThrough 2007-08, the mega CDI-MDM vendors (IBM, ORCL, SAP) will struggle to provide BPEL-compatible workflows while specialist CDI-MDM solutions rush distributed Collaborative MDM capabilities to marketBy 2009-10, without such flexible workflows, organizations will merely rebuild the same master data files they evolved the past 15-20 years with their ERP & CRM infrastructures

CDI-MDM MILESTONE


Enterprise SearchStrategic Planning Assumption

Through 2007, the unique properties & behavior of master reference data will spawn a series of vertical applications & specialized features within CDI-MDM solutions.During 2008-09, semantically-enabled metadata will enable “search” for both structured & unstructured info across a variety of applications such as catalog management & deep web search, & enterprise search. By 2009-10, enterprise semantics & SOA-enabled data services will provide the technology foundation for policy hubs; concurrently, the 4th generation of hubs will innately support Analytical, Operational, & Collaborative & MDM business services.

CDI-MDM MILESTONE


Solidifying Requirements for 3rd Generation CDI-MDM Solutions

Multi-entity hub capabilities SOA/shared services architecture with evolution to “process hubs”Sophisticated hierarchy management High-performance identity managementData governance-ready framework

MASTER DATA

SEARCH

MASTER DATA

MODELING

MASTERDATA

APPLICATIONS

CDI-MDMMASTER

DATA PREPAR-

ATION

MASTERDATA

GOVERNANCE

MASTERDATA

MOVEMENT

Global 5000 enterprises’ “multi-hub” scenarios mandate architectural/infrastructure approach to CDI-MDM


Bottom Line Planning Assumptions

Acknowledge no single vendor “does it all well”Analytical vs. Operational vs. Collaborative MDMB2B vs. B2C vs. B2B2CBatch vs. real-time

Recognize that industry expertise matters Test drive matching & consulting expertiseInvest in data governance & CDI-MDM architecture for long-term sustainability & ROI

CDI-MDM is critical to proactively & consistently manage customer data to untangle quagmire of complex systems –

e.g., streamline processes, enhance QoS, & govern compliance


Authoritative

Relevant

Independent

Aaron ZornesFounder & Chief Research Officer

The CDI-MDM InstituteThe-CDI-MDM-Institute.com a.k.a.

www.tcdii.com


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“Independent, Authoritative, & Relevant”

“The World Is Flat”€¦ · “The World Is Flat” Data structures & business processes must...

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