How to Kick Start an MDM Program · 2012-07-03 · VAN SPALL INC. How to Kick Start an MDM Program...
Transcript of How to Kick Start an MDM Program · 2012-07-03 · VAN SPALL INC. How to Kick Start an MDM Program...
VAN SPALL INC.
How to Kick Start an MDM Program
Craig Van Spall Principal Consultant, Van Spall Inc.
[email protected] @CraigVanSpall
MDM & Data Governance Summit. Toronto. 28 June 2012
VAN SPALL INC.
About Us
• Founded 2003. Toronto-based. At First Canadian Place. • We are client centric “tailors”
• Master Data . Big Data . Open Data . Analytics .
• Marketing… Sales… Finance… Fraud…
• Incisive hands-on, bottom-up approach
• Quantifiable. Practical. Cost-effective.
• We are here to share our experiences and present V-Tips© based on our client engagements
VAN SPALL INC.
V-Tip 1: Record Painful Customer Experiences
• Betty Longshore (92 yrs). Notified of her death by her bank
• Weeks of red tape to prove she was alive In the News: http://abcnews.go.com/blogs/headlines/2012/03/woman-92-tells-bank-im-not-dead/ (March 17, 2012)
[Financial Services Case]
VAN SPALL INC.
• My internet bandwidth got capped
• How did this happen?
• “We don’t know how this contract got changed”
[Telecommunications Case]
Record Painful Organization Experiences
VAN SPALL INC.
• Reconciling takes days
• Analytics requires heroes
• Fraud investigations are painful
• Channel compensation fraught with dispute
• Active employees by location is challenging
• Call Center “Day One Productivity” - Really?
• Systems data sets - Who do you believe?
• Data hoarding
Record Painful Internal Experiences
VAN SPALL INC.
• Business has a mission. Its survival depends on managing its resources.
• Master Data Management is about managing resources.
People, places, things, etc. • If Inaccurate Repeated negative impact
• Large organization. Data duplication, inaccuracy. Buried in departments, ERP, HRIS, CRM...
V-Tip 2: Remember, it’s All About Business
VAN SPALL INC.
For example:
Customers. Employees. Vendors. Products. Locations. Chart of Accounts. Currencies. Languages... are all Master Data
Attribute Value
Customer Name* Craig Van Spall
Date of Sale 2012/02/14
Product Sold* Galaxy Nexus
SKU#* A1234
Shipping Address* 350 - 1 First Canadian Place, Toronto, M5X 1C1
Amount $599.99
People, Products, Locations, and Accounts
* = Master Data
VAN SPALL INC.
V-Tip 3: Watch both Data & Process
• Data: Structures. Versioning. Quality... • Master data is a foundation for other data
(Big Data, Analytics) and business process improvement
• Process: is different
• What data flows? To whom? When? Why?
• Both work in concert. Also in business case.
VAN SPALL INC.
V-Tip 4: Focus on Stakeholder Engagement
• Always, always, focus on business outcomes
• Get early executive commitment
• Attract diverse stakeholders (Speak their "language”)
• Record detailed requirements, but remember Job #1
• Start the conversation of change much in advance • “Co-develop” everything!
VAN SPALL INC.
V-Tip 5: Build a Strong Business Case
• Provide a compelling narrative • Record of Painful Experiences and the HL Requirements
• $(Gain) = $ (Savings) – $(MDM Program Cost) – $(Other) • $Other can be $(Loan Interest) for $(MDM Program Cost) • Pick duration: e.g. 5, 7 years
• %(ROI) = [$(Gain) - $(MDM Program Cost)]/$(MDM Program Cost)
• (NPV) = Time series of cash flow for duration of the MDM program
VAN SPALL INC.
$ (Savings) • Waste
• Via Lean Six Sigma approach
• Defects/Errors • Via Lean Six Sigma approach
• Regulatory Compliance • Via Audit & Compliance reports
• Satisfaction/Experience • Via lost/frustrated customers, channel staff, employees
$ (MDM Program Cost) • People • Process • Data • Technology (Infrastructure & Applications)
VAN SPALL INC.
V-Tip 6: Be a Good Risk Manager
• MDM programs are very risky
• Create a Risk Registry (probability vs. impact) • Items include: Change Management. Requirements. Budget $.
Data Quality. Skills. Timelines. Procurement. Infrastructure... • Items are interrelated
• Get Risk-centric
• Use Risk Registry for prioritizing and decision-making
VAN SPALL INC.
V-Tip 7: Agility Saves, Complexity Destroys
• Be careful of big excessive budgets
• Be practical. Avoid complexity. Push beyond high-level architecture.
• Do not get caught up in “Frameworks”. Pick and tailor practices, process, and technology to mitigate risk.
• Get good grasp of current data sources: • Excel spreadsheets. Access databases. HRIS. CRM. ERP. Financial Systems.
• Do not underestimate data interchange/integration efforts and costs
VAN SPALL INC.
Consolidation
MDM Hub
T2
T1
Co-existence
MDM Hub
T2
T1
Central Deployment Hub
T2
MDM Hub
T1
V-Tip 8: Have a Target Architecture
MDM Hub
Centralized
T1
T2
MDM Hub
Hybrid
T2
MDM Hub
T1
= single clean and enriched master data source = represents where data is authored
Registry
MDM Hub
T2
T1
Pointers
VAN SPALL INC.
V-Tip 9: Always Prototype - start small, Grow Big
• Prototyping is very important
• Client: Large Canadian telecommunications provider • Reasons for coming to us are on
the “Record Painful Internal Experiences…” (V-Tip 1)
• 2 MDM technology platforms prototyped: • A leading vendor • Another leading vendor: Software AG webMethods OneData
• Software AG OneData best “fit” the needs of the client. Differentiators in this single product are: • Multi-Domain: secure virtual MDM spaces • Data Governance: integrated in process flow • Data Quality: matching & cleansing algorithms
VAN SPALL INC.
OneData’s Architecture & Capabilities D
ata
Acqu
isit
ion
Dat
a M
odel
ing
Data Consolidation
Repository
Regulatory Compliance
Enterprise Integration
Business UI
Security Data Governance
Data Quality
Employee
BPM, SOA DW, Other Systems
External Services
Reporting
Deployment
VAN SPALL INC.
Product (“Thing”)
OneData’s Multi-Domain MDM: Secure Virtual MDM Spaces
Customer (“Party”)
Location
Supplier Account
Reference Data
Finance Improved billing / invoicing
Sales Improved Upselling
Marketing Improved segmentation
Customer Service Multi-Channel alignment
Asset
VAN SPALL INC.
• UI based wizards
• Data-driven workflow rules
• Trigger external events at any level
• Supports large workflow transactions
• Execute iHooks at approval/rejection event at any level
OneData’s Data Governance: Integrated in Process Flow
VAN SPALL INC.
V-Tip 10: The Technology Platform Matters
• Think of Master Data as a Service - Serving stakeholder data needs
• Flexible. Faster. Value for money. - Remember Risk Registry tip
• Working prototype (proof of concept) is mandatory
• User portal & ease of administration
• Complex Hierarchies: Balanced. Ragged. Data Modeling.
• Data governance. Dual schemas. Workflow. Approvals. Notifications.
VAN SPALL INC.
The Technology Platform Matters
• Reference data: internal & external
• Data quality. Acquisition. Cleansing. Matching.
• Versioning. History. Roll-Back.
• Audit: Who did What? When? Why?
• Data Security. CRUD. Error. Fraud prevention.
• Data interchange
VAN SPALL INC.
V-Tip 11: Domain Tips
• People • no universal ID.. • multi-role…
• Organization • collections of collections…
• Location • GPS Co-ordinates. Historical regions…
• Product • basic parts/products. Composite products…
See Appendix for details
VAN SPALL INC.
V-Tip 12: Have Flexible Development & Deployment
• Pick approach that the organization is most used to • Waterfall hybrid Agile • Better towards Agile
• Be aware of programming • Binary code scripts config. • Better towards config.
• Co-configure. Co-develop. • In person. Web conference.
• Create a dynamic clearing house for issues • Leverage: Risk Registry. People skills. Technology flexibility.
VAN SPALL INC.
V-Tip 13: Sustain Governance
• Awareness. Oversight
• Stewards • Process. Data.
• Performance
• Decision making
• Continual improvements/investments
• Risk Management. Issue tracking
VAN SPALL INC.
V-Tip 14: Unleash People. Have Fun!
• Understand stakeholder/people’s aspirations
• Find a way for it to thrive
• Create a environment of trust and growth
• Deal with issues respectfully, specifically, directly
• Get the job done
• Have fun and enable others to do so too
VAN SPALL INC.
Recap of V-Tips©
1. Record the Painful Experiences 2. Remember, it’s All About Business 3. Watch Both Data & Process 4. Focus on Stakeholder Engagement 5. Build a Strong Business Case 6. Be a Good Risk Manager 7. Agility Saves, Complexity Destroys 8. Have a Target Architecture 9. Always Prototype - start small, Grow Big 10. The Technology Platform Matters 11. Domain Tips 12. Have Flexible Development & Deployment 13. Sustain Governance 14. Unleash People. Have Fun!
VAN SPALL INC.
Good luck! We’d like to continue this conversation. Contact us: Craig Van Spall Principal Consultant, Van Spall Inc.
[email protected] @CraigVanSpall
www.vanspall.com
Pick up your FREE copy of “Process-Driven MDM For Dummies” written by Software AG on your way out!
VAN SPALL INC.
Characteristics of Master Data
Characteristic
Behavior Nouns, not verbs
Lifetime Several months or longer
Value Accuracy
Cardinality Hundreds or more
Volatility Not static. Not volatile.
Reuse Highly used and reused
Complexity Mid to high level
VAN SPALL INC.
Lean Six Sigma. Types of “Waste”.
• Defects • Overproduction of things not demanded by actual customers • Inventories awaiting further processing or consumption • Unnecessary over-processing (for example, relying on inspections rather than
designing the process to eliminate problems) • Unnecessary motion of employees • Unnecessary transport and handling of goods • Waiting for an upstream process to deliver, or for a machine to finish
processing, or for a supporting function to be completed, or for an interrupted worker to get back to work...
And a few more types of waste... • Confusion - missing or misinformation. Confusing goals & metrics. • Unsafe or unergonomic work conditions • Underutilized human potential - skills, talents, and creativity
VAN SPALL INC.
Domain Tips - People
• Use Surrogate keys. There is no universal ID’s for people e.g. SSN or SIN number.
• Do not model roles (customer, employee, share-holder, vendor contact, etc.). A person can be all of these.
VAN SPALL INC.
Domain Tips - Organization
• Like the person entity, the "organization" entity must map to specific organizations, and not their roles
• Unlike people, many organizations are collections of other organizations, and that is the way you want to manage hierarchies such as a department within a division
• Most important, the model needs to account for multiple and overlapping hierarchies
VAN SPALL INC.
Domain Tips - Location
• While it is tempting to view location as a set of GPS coordinates representing a particular point on our planet, this construct will not play well with the way location is defined in a business.
• The location definition is almost always an area, not a point.
• Like the organization entity, there are locations that are collections of other locations, and these collections often overlap.
• Some locations are fairly abstract; for example, financial instruments are sold with settlement terms that name a particular exchange as the "location" even though the exchange is electronic and lacks any physical boundaries.
VAN SPALL INC.
Domain Tips - Product
• Tie to the specific needs of the business
• Should include the raw ingredients (flour, sugar, butter, water), the consumables (gas, electricity), the services (mixing, baking, cleaning) and the result (cookies)
• Like people, the scope of products is far broader than any specific product nomenclature, whether it is ISIN (for securities) or UPC (for consumer goods)