Oracle Mdm Business Case
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Transcript of Oracle Mdm Business Case
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MDM ROI Model and how Zebra Measures Implementation Payback
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Program Agenda
• Introduction
• Why Build A Business Case For MDM?
• How To Build The Business Case For MDM?
• How Can Oracle Help?
– Insight Overview
• Zebra Case Study
Why Do Our Customers Engage in MDM Projects?
Revenue Generation /
Customer RetentionBetter
OperationsRisk
Management Compliance
Cross-Sell / Up-Sell 1st Time Accurate Deliveries & IT Costs
Data Loss Prevention Law Enforcement / Privacy
Differentiated Service Delivery
Advertising & Promotion Spend
Fraud Prevention Homeland Security
Scenarios: MDM as
A Foundation of CRM Plans
An Add-on toCRM
Rationalization of ERP Envt
Part of a Middleware
Architecture PlayA Standalone Application
1 2 3 4 5
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MDM Delivers Value To Customers Across Four Domains
4
Growth Efficiency IT Agility Compliance
CUSTOMERS ON AVERAGE GENERATED 2%-5% INCREASED REVENUE FROM SALES WITH MDM
EFFICIENCY OF OPERATIONS INCREASE WITH IMPROVED PROCESSES AND DATA GOVERNANCE
EFFICIENCY OF IT OPERATIONS RESULTING IN GREATER AGILITY OF BUSINESS MODELS
EFFICIENCY OF IT OPERATIONS RESULTING IN GREATER AGILITY OF BUSINESS MODELS
Sources: Oracle Benchmarking, Oracle Insight analysis
Case Studies: Growth
Why:Why:Why:
What:What:What:
So what:So what:So what:
A single view of customer across the 100+ life and non-
life insurance policies, pension funds and employee pension schemes in Poland
Going live on Customer Hub with about 1.5 million customer
golden records
2 % increase in amount of insurance premium collected
12 % reduction in marketing reach costs
5% increase in cross-sell/up-sell*
Customer hub along with Siebel CRM
A large US Retail grocery chain
Enable loyalty program, drive up- sell and empower self service
Improved marketing response resulting in increased gift card
order sales by 5%Increased sales from loyalty
cards customers by 1%
* Expected benefits5
Case Studies: Efficiency
Why:Why:Why:
What:What:What:
So what:So what:So what:
Streamline GGB Global supply chain and provide an acquisition platform
Live on Oracle Customer and Product Hub integrated with
ERP systems with no disruption
Improved inventory levels by 5%Reduced order lead times by 2%Increased order returns by 15%
Support total customer satisfaction goals with single view of customer data for company’s mobile devices
division
Centralized B2B customer master in a single instance
Reduced sales cycle time (B2B) by 3%
Reduced sales order errors by 20%
A large telecom manufacturer
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Case Studies: IT Agility
Why:Why:Why:
What:What:What:
So what:So what:So what:
Support KPN’s business transformation from product
to customer centric enterprise
Live on Oracle MDM with Informatica Power Center &
DQFoundation to CRM & BRM
$1.8 million savings in IT project costs
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Streamline complex marketing & account management processes
Provide single view of its customers to every store
Oracle Customer Hub feeding to marketing application Dunnhumby,
SAP ERP & CRM
Improved marketing campaign response rate by 15%
Reduced maintenance costs by 10% by sun-setting legacy applications
Reduced sales order errors by 20%
A major big box retailer
Case Studies: Compliance
Why:Why:Why:
What:What:What:
So what:So what:So what:
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Customer Hub as a foundation to CRM , Supply Chain Mgmt
Improve relationships and service to its customers in an ever changing
organizational environment
2% reduction in credit risk costs75% reduction in annual
compliance costs
A leader in electricity transportation & distribution
CIS legacy inflexible and too expensive to maintain & evolve
Live on Customer Hub with 14,000 users and 400k tx /day
peak operations
Anti money laundering compliance
A large bank in Asia- Pacific region
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Program Agenda
• Introduction
• Why Build A Business Case For MDM?
• How To Build The Business Case For MDM?
• How Can Oracle Help?
– Insight Overview
• Zebra Case Study
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Companies Want IT to Deliver More Business Value Do More With Less
Source: Accenture IT Spending Survey
Today’s IT Desired IT
New Capability
Sustaining & Running Existing
Capability
New Capability
Existing Capability
30%
70%
55%
45%Increases Value Creation
Decreases Maintenance &
Delivery
$ $
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MDM Initiatives Deliver ROI By Reducing Spend And Enhancing Revenue
Income Statement
% of Rev
$1B Company
Reduce IT by 10%
Reduce Non-IT
SG&A by 10%
Increase Revenue by 10%
Revenue 100% $1,000M $1,000M $1,000M $1,100M
CGS 50% $500M $500M $500M $550M
Margin 50% $500M $500M $500M $550M
Non-IT SG&A 30% $300M $300M $270M $300M
IT 4% $40M $36M $40M $40M
R&D 5% $50M $50M $50M $50M
Subtotal 39% $390M $386M $360M $390M
EBITDA 11% $110M $114M $140M $160M
$ Change $4M $30M $50M% Change 4% 27% 45%
Source: Forrester Research and Oracle analysis
4.1%
IT SPENDING(% OF REVENUE)
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Program Agenda
• Introduction
• Why Build A Business Case For MDM?
• How To Build The Business Case For MDM?
• How Can Oracle Help?
– Insight Overview
• Zebra Case Study
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High Level Approach To Develop The Business Case Link The Value To Current Business Pains And Gaps
Assess Process
Performance & MDM Maturity
Identify Benefit Drivers, Costs &
Calculate ROI
Develop Solution
Footprint & Implementation
Plan
Step 1: Assess Process Performance & MDM Maturity
Analysis Framework Capability Maturity Models
Assess Process
Performance & BPM
Maturity
Identify Benefit
Drivers & Calculate
ROI
Develop Solution
Footprint & Implementation
Plan
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Step 2: Develop Solution Footprint & Implementation Plan
Assess Process
Performance & BPM
Maturity
Identify Benefit
Drivers & Calculate
ROI
Develop Solution
Footprint & Implementation
Plan
Impact on architecture Implementation Roadmap
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Step 3: Identify Benefit Drivers, Costs & Calculate ROI
Assess Process
Performance & BPM
Maturity
Identify Benefit
Drivers & Calculate
ROI
Develop Solution
Footprint & Implementation
Plan
Benefit Drivers and Costs ROI and Payback
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential 26
$8M$6M$4M4. Improved Customer Retention
$20M$15M$12M5. Reduced Data Management Costs
$16M$12M$8M6. Reduced Sales Order Errors
$10M$8M$4M7. Reduced Sales Cycle Time (B2B)
$8M$5M$2M8. Improved Campaign Response Rate
$11M$8M$6M9. Reduced Integration Costs
$8M$5M$3M10. Reduced Time to Take New Application/Project to Market
$27M$25M$22M13. Reduced Report Generation Costs
$166M$126M$88MTotal Annual Steady-State Benefits
$11M
$6M
$5M
$2M
$3M
CONSERVATIVE
$17M
$8M
$15M
$10M
$8M
AGGRESSIVE
$15M12. Reduced Non-Compliance Risk Costs
$7M11. Reduced Credit Risk Costs
$10M3. Reduced Marketing Mailing costs
$5M2. Improved Call Center Productivity
$5M1. Increased Cross-sell/Up-sell
PRAGMATICBENEFIT OPPORTUNITY
MDM Benefits
Source: Customer discussions and discoveryNotes: Numbers show undiscounted benefits. NPV of these benefits are shown elsewhere
SAMPLE
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential 27
$M$6M4. Implementation of New Software
$M$1M3. Implementation of Existing Software
Implementation*
Other Costs**
$0.1M$1M6. Training/Change Management
Software*
$0.2M$0.5M7. Other (travel, administrative, etc.)
$2.9M$20.5MTotal
$2M
$10M
ONE-TIME
$0.4M5. New Hardware/Infrastructure
Hardware/Infrastructure*
$2.2M2. Annual Maintenance
1. Application Licenses
ANNUALCATEGORY
Estimated MDM Associated Costs
Source Oracle & Customer Estimates
Notes:• * Costs are provided as estimates• ** Cost estimates are based on customer data• Does not factor in fixed costs of employees assigned to project• Implementation estimates are provided by customer
SAMPLECopyright ©2009, Oracle. All rights reserved.
Oracle Confidential 28
A 5-Year Analysis of Both MDM Costs & Benefits Shows a Strong Return for Company X
$28$10M$5M$5M$5M$3M-3. Reduced Marketing Mailing costs$20$6M$4M$4M$4M$2M-4. Improved Customer Retention$57$15M$12M$12M$12M$6M-5. Reduced Data Management Costs
$12M$8M$8M$8M$4M-…
Benefits
300%ROI$NPV
$$$$-$-$Net Benefits
$$2.2$2.2$2.2$2.2$5.2$14.4Total$$$$$0Other Costs (travel, admin., etc.)
$$$$$0Training/Change Management$$$$$0New Hardware/Infrastructure
$$$$$3M$2MImplementation of New Software
$$$$$0Implementation of Existing Software
$2.2M$2.2M$2.2M$2.2M$2.2M$2.2MSoftware: Annual Maintenance$$$$$$10MSoftware: Application Licenses
Costs$NPV of Benefits
$212$79$49$49$49$26$Total$16$5M$3M$3M$3M$2M-13. Reduced Report Generation Costs
$29$8M$6M$6M$6M$3M-12. Reduced Non-Compliance Costs$12$5M$2M$2M$2M$1M-11. Reduced Credit Risk Costs$22$8M$4M$4M$4M$2M-10. Reduced Time to Market
$12$5M$2M$2M$2M$1M-2. Improved Call Center Productivity
$16$5M$3M$3M$3M$2M-1. Increased Cross-sell/Up-sell
TOTALYEAR 5YEAR 4YEAR 3YEAR 2YEAR 1YEAR 0CATEGORY
SAMPLE
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential 29
Annual Cash Flows and Payback Analysis Demonstrate Clear Value to Company X Over the Life of the Project
Payback: ~24 mo.Payback: ~24 mo.
Note: Numbers in $ Millions; WACC =10%, as provided by Company X
$M 5-Year Total Benefits
INVESTMENT COSTS AND BENEFITS$ Millions
NPV: $M, ROI:300%
NET PRESENT VALUE$ Millions
-$1.5
-$1.0
-$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
-$1.0
-$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
BenefitsCosts
Payback: ~12 mo.
SAMPLE
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Program Agenda
• Introduction
• Why Build A Business Case For MDM?
• How To Build The Business Case For MDM?
• How Can Oracle Help?
– Insight Overview
• Zebra Case Study
Oracle InsightTM Helps Customers Realize Value Throughout The Technology Investment Lifecycle
PLAN
MEASURE
TRANSFORM
OPTIMIZE
Accelerate Business Transformation by Aligning
Project & Business Objectives
Align and Measure Business Initiatives Against Planned
Objectives
Establish the Business Case and Roadmap for Technology
Investment
Continuously Unlock More Value from Technology
Investments
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Leveraging Skilled Business Strategist Working Collaboratively With You To Enable Greater Business Value
A proven methodology leveraged by thousands of customers globally to:•Drive business impact by helping view technology as enablers of business value
•Help build a compelling value proposition
•Assist with alignment with executive team
Industry Experience
Solution Knowledge
Value Analysis
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We Understand That Achieving Business Objectives Means Addressing Different Challenges
Business Issues
“ Given global growth opportunities and acquisition strategy, how is the business positioned to leverage such opportunities?
“ How well can our business processes support these objectives?
“ What is the business value in transforming our processes?
“ How do we transform in alignment with our strategic vision?
“ How do we measure progress of such transformation with a few key metrics?
Oracle Insight is a methodology tailored to assist you in answering such business challenges
IT Issues
“ Does our IT strategy / roadmap align with the business priorities and objectives?
“ What are the new IT enablers for these best practices and how do they impact us?
“ How can we enable and sustain business value realization?
“ How do we enable business processes and the required capabilities while also
reducing business risk?
“ How do we enable the business with the right information to measure its progress?
http://www.oracle.com/insight
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Insight Offers Tools & Services Tailored To The Needs of The Customer
Insight TeamIndustry Strategy
Business Strategy
IT StrategySales Team Pillar Insight (Certified SC’s)
Pillar Analysis (SC’s & ASM’s)Partner Offering
Consultative
BenefitAnalyzer
Tool
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Program Agenda
• Introduction
• Why Build A Business Case For MDM?
• How To Build The Business Case For MDM?
• How Can Oracle Help?
– Insight Overview
• Zebra Case Study
The right asset. In the right place. At the right time.
Eva LarsonZebra Technologies CorporationData Quality/Data Management
10/14/2009
MDM = T + P + P
“Changing Zebra’s Stripes…”
The GoalIssues, and Solutions• Technology• People• Processes
The Benefits
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Zebra Technologies
o Zebra helps identify, locate and track assets, transactions and people with specialty printing and automatic identification solutions including barcodes, RFID and GPS technologies.
o Lincolnshire, Illinois HQ [Chicago Suburbs]
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The Goal
Simplify end to end business process integration and accelerate ROI through technology, people and processes.
Technology - The Issues
Technology• Hundreds of disparate applications
– 10 acquisitions– 140 applications (and counting)
• Resources– 90% of IT time spent on integration and maintenance
• Where to begin
• Time to implement
Page 7
Where’s our customer data today?
UCM – A single source of truth for customer data?
Before: Zebra’s 140+ “Islands-of-Automation”…
After: Zebra’s AIA Enabled Oracle Solutions
29
Technology – The Solutions
TechnologyUse a phased approachConsolidate all applications to a single global system.Increase data visibility and accuracyAvoid customization
Goal: Simplify end to end business process integration and accelerate ROI
RELEASE MANAGEMENT SCOPE
R1 R2 R3 R4
2007 [PRE‐RELEASE] 2008‐2009 2009‐2010 2010‐2011
ORACLE ‐
AGILE PLM ORACLE ‐
EBUSINESS
•
Product Collaboration • Global Financials •
Accounts Receivable / Collections • Service (back‐office)
• Web Portal [for CM] • Global Human Resources • Credit
• CM Enablement •
Procure‐to‐Pay [MRO] • Mfg
• Global HR • WMS
• Payroll •
Shipping
• ASCP • Data Collection [Zebra]
• Demantra • Remote Printing [Zebra]
• OBI
ORACLE CUSTOMER HUB
•
Accounts ‐
Contacts •
Expanded ‐
Sales
Attrbs •
Expanded ‐
Service
Attrbs
ORACLE / SIEBEL ‐
CUSTOMER RELATIONSHIP MANAGEMENT
• Partner Portal ‐
Registration • Partner Portal ‐
Shopping Cart • Service
• Campaign Management • Campaign Management • Partner Portal ‐
Service
• Lead Management • Lead Management •
Mobile Applications
• Customer Master • Order Capture
• OBI • Pricing & Concessions
•
Configuration
• Sales Hierarchy
• Warranty Contracts
•
Opportunity Management
• Install Base [Asset Mgt]
• Point of Sale Capture
Zebra’s Success Card
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Live Liv
e
Live
Live
Deployed in-house, on-time & under budget
Technology – The Solutions
TechnologyUse a phased approachConsolidate all applications to a single global system.Increase data visibility and accuracyAvoid customization
Goal: Simplify end to end business process integration and accelerate ROI
Technology – The Solutions
TechnologyUse a phased approachConsolidate all applications to a single global system.Increase data visibility and accuracyAvoid customization
Goal: Simplify end to end business process integration and accelerate ROI
Zebra – Staying Current
Siebel CRM 8.0.0.2 + => moving to 8.1.1 [2009]Oracle Customer Hub
Oracle eBusiness 12.0.5 => moving to 12.1 [2009]Oracle SOA 2.1 => moving to 2.5 [2009]Oracle AIA / PIP – Customer Party EBO – Live Nov 2008 - expandingOracle Demontra & Oracle Advanced Supply Chain Planning 7.2.0.2Oracle Agile 9.2.2 => expanding to Oracle Product HubOracle Business Intelligence [OBI]10.1.3.3Oracle 10g RAC => moving to 11g RAC [2009]
Supporting Tools:EDI: GenTran / Sterling Integrator 4.3.10 Data Profiling & Cleansing: Dataflux 8.1
Zebra CIO: “Time to Break the Cycle”…
Evolve IT staff…. from being primarily technologists to well-rounded business managers – assigned competency leads
Upgrade organizational capability … with experience in Oracle delivery
Develop higher contribution to the business… by leading strategic projects to conquer complex operating challenges that have presented themselves as a result of Zebra’s market place successes
ToNew Project
Effort
From…
Support
10%90%
90% 10%
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People – The Issues
People• Siloed/Independent
– Thinking– Communicating– Decision Making
• Change– Acceptance– Adaptation
• Ownership (vs Stewardship)• Resources
People – The Solutions
People“Herding Zebra’s”ConsumersContributorsData Governance and Data Stewardship
Goal: Simplify end to end business process integration and accelerate ROI
Processes – The Issues
Processes• Redundant• Customized• Uncontrolled
Zebra TechnologiesCorporationZbra Tehcnolgies CorpZEBRA TECHNOLOGIESZebra TechZebraZebra Technologies Corp dbaZebra Technologies Corp
Processes – The Solutions
ProcessesConsolidate master data“One stop shopping” for master data’s metadataCRUD and workflowsData cleansing and enhancementsQuality check-ups
Goal: Simplify end to end business process integration and accelerate ROI
Using Oracle’s Out-Of-Box Business Process Flows
Performance measures
n The solution should always allow customers to request changes to their details. nManual administration by Zebra employees should be minimized, but the integrity of customer data must be protected.nOnce Account is active the access to change is restricted to persons
responsible for Customer MaintenancenRules should determine what updates can be made to particular data fields by particular people and in particular systems.
nThe cost of executing a change in details (number of key strokes or man hours)nThe amount of time from the detail change request to completion
At any point in time, a customer may want to make a change to their details.
n Customer requests a change through a channel (portal, phone, email, post, call)
n Change details are captured in the system(address details, phone numbers, additions to Contacts Information)
n Change request is routed to proper individual
n Change is processed and records are updated in all systems
n Change not processed (due to incomplete or incorrect data) and customer contacted
n Account Namen Address detailsn Phone Numbersn Contact Email Addressesn Account Profile details
Key dataProcess activities
Parallel ProcessesParallel Processes
Best PracticesDefinition
Customer QueryCustomer Query
Query Check for Customer Query Check for Customer
Customer CreationCustomer Creation
Register New Customer Register New Customer
Customer AddressCustomer Address
Customer Address SetupCustomer Address Setup Customer UpdatesCustomer Updates
Sales/ Opportunity Processes
Sales/ Opportunity Processes
Credit Check/ Approval Credit Check/ Approval
Sales and M
arketing - Evolution of a
Customer
40
Canonical Model
Canonical Data Model
Initial Extract Records
Canonical Data Model
Cleansed, Standardized,
De-duped, Merged Records
ICDB Database
Data Trans / LOV Valid Step
SQL ScriptDataFlux Step 1 DataFlux Step n
PartnerFirst Data
BaaN NA
Siebel CRM
Siebel UCM
R2W2 CRM Integration & Conversion Approach using Canonical Model
Extract Transform Load
Data Cleansing / Matching StepsCon
vers
ion
Inte
rface
Zebra.com
Zebracard.com
Technology – The Benefits
2008• MDM solution/integrations purchased from Oracle - avoids 3 party connectors, new
proprietary skills to learn, compatibility issues = lowered costs• Estimated resource savings 60% - 2 resources, 2 months with small off-shore
augmentation vs 6-10 resources for 4-6 months
2009 phase• Same AIA/PIP reused in integrations and conversions = lowered costs• Upgraded Siebel, Oracle without integration rewrites
Future• All Oracle AIA/PIPs deployed for MDM• Zebra acquisition on-boarding becomes easier and faster• Compatibility of integration remains Oracle’s responsibility• MDM data remains protected, standardized, cleansed
Oracle MDM ROI Projections
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IT Agility Risk/Compliance
CRM Booster Operational Improvements
People – The Benefits
IT concentration moving toward business’s strategic projects vs maintenanceGlobal understanding about the reality of our inter-connected data-driven world.Data Governance/Stewardship which sets the rules of engagement, defines global standards and processes and global resolution of conflictsMore information available for use in reporting and decision making
Processes – The Benefits
Reusable data - master data entered once for all vs once per # of applications = estimated savings of 139 per fieldSingle set of processesGlobal documentation for all fields, rules, standards and processes which is housed on global intranet siteReal time and batch deduplication
Zebra’s Transformation… in the news…
Zebra AccomplishmentsOracle 2008 Excellence Award Winner [AIA]
2009 Press Releases [AIA] – Reduces Cost
2009 Oracle Press Releases [AIA] - Expanding
2009 Customer Snapshot for Zebra on Oracle [AIA]
2009 May Oracle Profit Magazine – Zebra Transformation Story
2009 Program Reviewed in AMR Research, Forrester and Gartner
Oracle User Groups Presentations on MDM, data governance, AIA
Zebra Technologies Exhibitor Information
Booth Locations2423 Moscone South and Motorola Enterprise Mobility Pavilion, 3109 Moscone West
Event ProfileZebra’s got the Oracle connections you need for easy bar code and RFID label printing. Designed to streamline the printing process, Zebra’s Enterprise Connector solution provides an easy-to-implement way to print bar code labels directly from Oracle e-Business Suite including any Oracle application that invokes Oracle SOA Suites.
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