Avoiding the MDM & Data Governance Consultancy Money Pit
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Transcript of Avoiding the MDM & Data Governance Consultancy Money Pit
BEST PRACTISES: Avoiding the MDM, RDM & MDG
Consultancy Money Pit
10th Annual MDM & Data Governance Summit Europe London
May 18-21, 2015
Aaron Zornes
Chief Research Officer
The MDM Institute
www.linkedin.com/in/aaronzornes
http://twitter.com/azornes
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 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 ...”
© 2015 The MDM Institute www.The-MDM-Institute.com
Managing the SI Relationship
Determining the evaluation criteria for selecting SI partners for MDM projects
Identifying which SIs are market leaders in your industry & your chosen software technologies
Managing the SI relationship – esp. avoiding “brain drain” & inflationary “blended rates”
Preparing for talent shortages now is the savvy way to avoid the MDM "money pit" later
© 2015 The MDM Institute www.The-MDM-Institute.com
Why Focus on “SI” Cost Component?
MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub
MDM Institute research finds G5000 enterprise spends average of €1.2 million for MDM software solutions -with addt’l investment of 3X-4X in SI services
MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs)
Recent buzz around MDM is rivaled only by intensity with which systems integrators have "found MDM religion"
Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to
contain costs, but also to insure success of this vital infrastructure investment
© 2015 The MDM Institute www.The-MDM-Institute.com
MDM Phases
Phase 0 Scoping of Phase 1 Limited proof-of-
concept (POC) Requirements capture ROI projection Vendor & product
evaluation
Phase 1 Limited deployment
within single business division or department for single entity, e.g. customer or product
Phase 2 Going enterprise-wide
with single master entity, e.g. customer, product, supplier, etc.
Phase 2+ Going enterprise-wide
with more than one master entity, e.g. customer, product, &/or supplier, etc.
Phase 3 Extending master data
extra-enterprise-wide with more than one master entity, e.g. customer, product, &/or business partners, e.g. strategic sourcing supply chain, outsourced call centers, etc.
© 2015 The MDM Institute www.The-MDM-Institute.com
Other Post "Phase Zero" Tasks
Perform gap analysis to determine which software must be developed internally & which can be purchased
Identify a systems integrator (SI) consultancy partner
Plan for IT organizational change management
Work with the business leadership to design & refine "future state" business processes associated with new MDM commitments
After determining/aligning business strategy …
© 2015 The MDM Institute www.The-MDM-Institute.com
Areas Where SIs May Provide Value
Identify & prioritize business functional requirements
Recommend build vs. buy
Provide a solution selection methodology that balances business & technical requirements
Develop detailed request for proposal (RFP)
Evaluate & select the right MDM software solution vendor(s)
© 2015 The MDM Institute www.The-MDM-Institute.com
Areas Where SI Provides Implementation Value
Pilot the MDM solution & application integration
Develop IT & business user communications in addition to training materials
Define & establish user job roles – e.g., MDM project leads, corporate/LOB data stewards
Define metrics for ROI or other measurements
Structure change management & system tuning strategies
© 2015 The MDM Institute www.The-MDM-Institute.com
“Top 5” Technical Evaluation Criteria for MDM Systems Integrators
#1 – Data governance methodology & accelerators
#2 – Industry-specific data model experience & ETL mappings
#3 – MDM product experience
#4 – MDM project experience (industry, geo, ego)
#5 – Next-generation MDM readiness architecture & design (big data, social MDM, mobile MDM, real-time info)
Partner's capabilities include their depth & available expertise
© 2015 The MDM Institute www.The-MDM-Institute.com
Understanding Your SI’s Business Model
Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche MDM software vendors with which to align
Each MDM vendor has
Vertical industry – e.g., banking or pharmaceutical
Corporate horizontal functional specialization – e.g., B2B hierarchy rationalization)
Mind share & brand recognition by virtue of early successes
Typical SI Team Drawn From Various Other Practice Teams
• Enterprise architecture
planning, esp. SOA experts
• Enterprise data modeling
• Legacy app reengineering
• Data conversion & application
migration
• Data quality
• EAI middleware & BPM
experts.
• Analytics & ETL experts
• Testing & QA
• Systems infrastructure mgmt
• Performance engineering
• ROI & cost-model generation
(business value articulation)
© 2015 The MDM Institute www.The-MDM-Institute.com
Data Governance Will Become Major Investment
Defining master data governance IT processes
Establishing & training the data stewardship function
Designing future state business processes tied to newly founded MDM commitments regarding customer data
© 2015 The MDM Institute www.The-MDM-Institute.com
How to Keep Staff from Being Shanghai’ed
Financial handcuffs
Personal/corporate recognition
Career tracks
Contractual non-compete/”hands-off my people”
© 2015 The MDM Institute www.The-MDM-Institute.com
MDM & DG SI Round-Up
1. ABeam Consulting2. Accenture3. Adastra4. Affecto5. AN Info Systems 6. Arhis7. Attevo8. Atos9. BackOffice Associates10. Broad Street Data11. BT12. Business & Decisions
(incl Inforte)13. Capgemini/iGATE Patni 14. CGI-American Mgmt Sys15. CODIFYD (formerly
Bytemanagers)16. Cognizant 17. CSC (Computer Sciences Corp.)
18. Deloitte Consulting19. Detica20. Datpro21. Datum22. eCentra23. Edifixio
23. Elevondata24. EMC Consulting25. Entity Group26. eVerge Group27. First San Francisco
Partners28. Fujitsu (formerly DMR)29. Global Soft30. HCL Technologies31. HighPoint Solutions32. Hitachi/Sierra Atlantic33. HP Information Svcs34. IBM GBS/BAO & Lab
Services35. IMT36. Infogain 37. Infosys38. InfoTrellis39. ITC InfoTech40. Jibes41. Keane42. L&T InfoTech43. Logica44. LumenData45. Mahindra Satyam
© 2015 The MDM Institute www.The-MDM-Institute.com
45. MDMHubs46. Micropole47. Myers-Holum48. Northgate Info Svcs49. Perficient50. Platon (Deloitte DK)51. Proj Performance Corp52. PwC53. SapientNitro54. Serene55. SITA56. SoftPath57. Sopra58. Steria59. Stream Integration60. Synergic Partners61. TaskData62. Tata Consultancy
Services63. TEKsystems64. Unisys65. Utopia66. VIRTUSA67. Wipro
Field Report: Major SIs
Accenture
BackOffice Associates
Capgemini/iGate Patni
Cognizant
Deloitte
IBM BAO/GBS/Lab Services
Informatica Pro Svcs
Infosys
Logica
Lumendata
Oracle Pro Svcs
Perficient
Serene
SAP Pro Svcs
Prolifics/Stream Integration
Tata
Utopia
Wipro
© 2015 The MDM Institute www.The-MDM-Institute.com
Field Report: MDM & DG Specialists
Affecto
AN Info Systems
Arhis
Business & Decisions
Caritor
Consology
Datpro
Detica
Datum
eCenta
Edificio
EMC Consulting
Entity Group
First San Francisco Partners
GlobalSoft
HighPoint Systems
Hitachi/Sierra Atlantic
IMT
InfoTrellis
Jibes
Knowledgent
MDMHubs
Myers-Holum
Project Performance Corp.
NorthGate
Perficient
Platon
SapientNitro
SITA
Sogeti
Steria
TaskData© 2015 The MDM Institute www.The-MDM-Institute.com
Field Report: Major SIs with Minor Practices
Atos (Origin, Siemens Bus Svcs)
Avanade
BearingPoint
CGI-American
Management Systems
CSC
Dell/Perot Systems
Fair Isaac / Braun
Consulting
Fujitsu (Born, DMR)
Hitachi Consulting
HP/Knightsbridge/EDS
Lockheed Grumman
Mahindra Satyam
PwC
SAIC
Unisys
© 2015 The MDM Institute www.The-MDM-Institute.com
Three Key Business Factors
Status of current incumbent relationships at the executive level
Status of current contracts, and pending contract negotiations (for other projects)
Business size, partnership direction, and ongoing viability of the SI/consultancy
Your organization’s weightings may vary …
© 2015 The MDM Institute www.The-MDM-Institute.com
Bottom Line: Avoiding the SI Money Pit
SIs are often necessary to sell C-level execs
Without C-level support, BUs will find it difficult to contribute funding & resources necessary to launch an MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)
© 2015 The MDM Institute www.The-MDM-Institute.com
Bottom Line: Avoiding the SI Money Pit
SIs are needed to coordinate IT & Business
Readiness & maturity
Plan for IT organizational change management to support MDM efforts
Work with business leadership to design & refine the “future state” business processes associated with new MDM commitments
© 2015 The MDM Institute www.The-MDM-Institute.com
Bottom Line: Avoiding the SI Money Pit
SIs are needed to help transform IT organizations
To a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative
© 2015 The MDM Institute www.The-MDM-Institute.com
Bottom Line: Avoiding the SI Money Pit
After initial development of a MDM system, SIs can help IT & Business by facilitating
Ongoing participation in development of business rules & resolution of master data match/merge issues
Ongoing commitment to update both applications & business processes to leverage core data stored in master data hub
© 2015 The MDM Institute www.The-MDM-Institute.com
Rx for SI Management Strategies
Acknowledge that SIs are essential to success of majority of MDM & Data governance projects
Recognize that incumbent SIs are no longer so
Identify which SIs are market leaders in your industry & your chosen software technologies
Proactively manage key IT positions
Leverage SIs for their “value add”
Given substantial investment businesses undertake with SI partners, this area must be given scrutiny – not only to contain costs, but to
insure success of this vital infrastructure investment
© 2015 The MDM Institute www.The-MDM-Institute.com
How to Leverage the MDM Institute
Kick start the “MDM evaluation process” Attend public workshop
Bring workshop on-site
Fine tune in-process MDM strategies Due diligence on reference checking & contract details
Stay ahead of curve via MDM Business Council Re-qualify every 6 months via survey
Receive MDM Alerts & access to Web-hosted research
Increase your knowledge & negotiatingstrengths via MDM Advisory Council Membership Participate in monthly email surveys & receive updated industry scorecard
Receive monthly MDM consultation via telephone
“Independent, Authoritative, & Relevant”
© 2015 The MDM Institute www.The-MDM-Institute.com
MDM & Data Governance Summit™Conference Series
“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”
MDM & Data Governance Summit Europe
London ▪ May 18-21, 2015
MDM & Data Governance Summit San Francisco
Hyatt Regency – July 22-23, 2015
MDM & Data Governance Summit Asia-Pacific
Doltone House, Darling Island Wharf – Sydney ▪ July 28-30, 2015
MDM & Data Governance Tokyo
Belle Salle Kanda– Tokyo ▪ August 2015
MDM & Data Governance Summit New York
Hilton New York▪ October 4-6, 2015
MDM & Data Governance Summit Canada
The Carlu – Toronto ▪ Fall 2015
MDM & Data Governance Summit Shanghai
Shanghai Int’l Convention Ctr ▪ Fall 2015
© 2015 The MDM Institute www.the-MDM-Institute.com
About the MDM Institute
Founded 2004 to focus on MDMbusiness drivers & technology challenges
MDM Advisory Council™of 150 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects
MDM Business Council™ website access & email support to 18,000+ members
MDM Road Map & Milestones™annual strategic planning assumptions
MDM Alert™ 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, Singapore, 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
© 2015 The MDM Institute www.The-MDM-Institute.com
MDM Institute Advisory Council
150 organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads
Representative Members 3M Autotrader Bell Canada Caterpillar Cisco Systems Citizens Communications COUNTRY Financials Educational Testing Svcs EMC GE Healthcare Honeywell Information Handling Svcs Intuit Loblaw McKesson Medtronic Microsoft
Motorola National Australia Bank Nationwide Insurance Norwegian Cruise Lines Novartis PC Connection Polycom Roche Labs Rogers Communications Scholastic Stryker SunTrust Sutter Health W.W. Grainger Westpac Weyerhaeuser Woolworths
© 2015 The MDM Institute www.The-MDM-Institute.com
Authoritative
Relevant
Independent
Aaron ZornesFounder & Chief Research Officer
The MDM Institute
The-MDM-Institute.com [email protected]
www.linkedin.com/in/aaronzorneshttp://twitter.com/azornes
© 2015 The MDM Institute www.The-MDM-Institute.com