How to Avoid the SI ‘Money Pit’ · systems integration in first 12-24 months as businesses wire...

Aaron ZornesFounder & Chief Research Officer

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

www.tcdii.com

How to Avoid the SI ‘Money Pit’

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

Managing the SI Relationship

Determining the evaluation criteria for selecting SI partners for CDI-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 CDI-MDM "money pit" later


Why Focus on “SI” Cost Component?

CDI-MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hubCDI-MDM Institute research finds G5000 enterprise spends average of US$1.2 million for CDI-MDM software solutions - with addt’l investment of 4X in SI servicesCDI-MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs)Recent buzz around CDI-MDM is rivaled only by intensity with which systems integrators have "found CDI-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


Post "Phase Zero" Tasks

Determine the CDI-MDM product short listPerform gap analysis to determine which software must be developed internally & which can be purchasedIdentify a systems integrator (SI) consultancy partnerPlan for IT organizational change managementWork with the business leadership to design & refine "future state" business processes associated with new CDI-MDM commitments

After determining/aligning business strategy …


Areas Where SIs May Provide Value

Identify & prioritize business functional requirements Recommend build vs. buyProvide a solution selection methodology that balances business & technical requirements Develop detailed request for proposal (RFP) Evaluate & select the right CDI-MDM software solution vendor(s)


Areas Where SI Provides Implementation Value

Pilot the CDI-MDM solution & application integrationDevelop IT & business user communications in addition to training materialsDefine & establish user job roles – e.g., MDM project leads, corporate/LOB data stewardsDefine metrics for ROI or other measurements Structure change management & system tuning strategies


“Top 5” Technical Evaluation Criteria for CDI-MDM Systems Integrators

#1 – Extensible Data Governance Methodology & Accelerators

#2 – Industry-Specific Data Model Experience & ETL Mappings

#3 – SOA Architecture Experience & Accelerators

#4 – CDI-MDM Product Experience

#5 – CDI-MDM Project Experience (industry, geography)

Partner's capabilities include their depth & available expertise


Understanding Your SI’s Business Model

Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche CDI-MDM software vendors with which to alignEach CDI-MDM vendor has

Vertical industry – e.g., banking or pharmaceuticalCorporate 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)


Data Governance Will Become Major Investment

Defining master data governance IT processesEstablishing & training the data stewardship functionDesigning future state business processes tied to newly founded master data management (MDM) commitments regarding customer data


How to Keep Staff from Being Shanghai’ed

Financial handcuffsPersonal/corporate recognitionCareer tracksContractual non-compete/”hands-off my people”


CDI-MDM SI Round-Up1. Accenture2. Adjoined3. AIT Group4. Alliance Consulting5. Arhis6. ATG6. Atos Origin7. Avaya8. BearingPoint9. BristleCone10. BusinessEdge11. Cambridge Technology Partners (Novell/CTP)12. Camelot – IDPro AG13. Capgemeni14. Caritor14. CGI-American Management Systems15. Cignex16. Cognizant17. Conversion Services Int’l18. CSC19. Deloitte Consulting20. Diamond Cluster22. EDS (Electronic Data Systems)23. Evaxyx24. Fair Isaac / Braun Consulting25. Fujitsu (formerly DMR)

26. Global IDs 27. Harte Hanks Data Services28. Hitachi Consulting29. HP/Knightsbridge30. IBM Global Business Services31. Infogain32. Inforte33. Infosys34. Inquera35. Lockheed Grumman36. Marks Baughan & Co37. Merckle38. Ness Technologies39. Patni40. Perot Systems41. Project Performance Corporation42. SAIC 43. Satyam44. SBS (Siemens Business Services)45. Sierra Atlantic46. Synergic Partners47. Tata48. TechnoLogix49. Unisys50. Wipro

FIX NUMBERING 2x6, 2x14


Field Report: Major SIs

Accenture

Atos Origin

BearingPoint

Cognizant

Deloitte

HP/Knightsbridge

IBM GBS

Tata

Wipro


Field Report: CDI-MDM & DG Specialists

Alliance ConsultingArhisAttevoBusinessEdge SolutionsCaritorConversion Services Intl CSCDiamond Mgmt & Technology Consultants Global IDsHighPoint Systems

InforteInfosys KeaneProject Performance CorporationPwC Sierra AtlanticTechnologixTechnology Solutions Company Unisys


Field Report: Major SIs with Minor Practices

Capgemeni

CGI-American Management Systems

EDS (Electronic Data Systems)

Fair Isaac / Braun Consulting

Fujitsu (Born, DMR)

Hitachi Consulting

Lockheed Grumman

Perot Systems

SAIC

Satyam

SBS (Siemens Business Services)


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 organisation’s weightings may vary …


Bottom Line: Avoiding the CDI-MDM SI Money Pit

SIs are often necessary to sell C-level execsWithout 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)



SIs are needed to coordinate IT & BusinessReadiness & maturityPlan for IT organizational change management to support CDI-MDM effortsWork with business leadership to design & refine the “future state” business processes associated with new CDI/MDM commitments



SIs are needed to help transform IT organizationsTo a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of CDI-MDM initiative



After initial development of a CDI-MDM system, SIs can help IT & Bus by facilitating:

Ongoing participation in development of business rules & resolution of master data match/merge issuesOngoing commitment to update both applications & business processes to leverage core data stored in master data hub


Rx for SI Management Strategies

Acknowledge that SIs are essential to success of majority of CDI-MDM 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


How to Leverage the CDI-MDM Institute

Kick start the “CDI-MDM evaluation process”Attend public workshopBring workshop on-site

Fine tune in-process CDI-MDM strategiesDue diligence on reference checking & contract details

Stay ahead of curve via CDI-MDM Business CouncilRe-qualify every 6 months via surveyReceive CDI-MDM Alerts & access to Web-hosted research

Increase your knowledge & negotiatingstrengths via CDI-MDM Advisory Council Membership

Participate in monthly email surveys & receive updated industry scorecard Receive unlimited CDI, MDM, & data governance consultation via telephone

“Independent, Authoritative, & Relevant”

How to Avoid the SI ‘Money Pit’ · systems integration in first 12-24 months as businesses wire...

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