True Drivers of MDM webinar
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Transcript of True Drivers of MDM webinar
1 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
The True Drivers of MDMEmpowering Business Ownership of Data
Kalido Webcast, May 10, 2012
2 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Logistics
Attendees will be on mute for the call
Type your questions into the Questions box
Webcast is being recorded and will be available for replay
Request a copy of today’s slides by sending an email to: [email protected]
Join the conversation online by using the #Kalido hashtag. Follow us @kalido !
3 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Today’s Speakers
Darren PeirceCTO, Kalido
John EvansDirector of Product Marketing, Kalido
4 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Agenda
Best practices in amplifying the business ownership of the data
Emerging trends for the future of business-owned master data
The role of MDM technology and processes in driving the point of action to the business rather than IT
5 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Trends in Master Data Management
Manage every domain - ideally in a single technology
Include all parties in the stewardship process
Enforce governance and measure compliance
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The Problem
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Traditional Approach to MDM: Knowledge
IT
Low High
Master Data Knowledge
Business Application Users
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Traditional Approach to MDM: Effort
IT Business Application Users
High Low
Focus of EffortLow High
Master Data Knowledge
Systems Knowledge
9 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Resulting Knowledge Gap
IT
High Low
Focus of EffortLow High
Master Data Knowledge
Systems KnowledgeKnowledge Gap Business
Application Users
10 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Knowledge Gap
Data Stewards to Fill the Gap
IT
High Low
Focus of EffortLow High
Master Data Knowledge
Systems Knowledge
Data StewardsBusiness
Application Users
11 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Why is Business Involvement Critical?
Reasons for Active Business Involvement:
Knowledge
Timeliness
Challenges With NOT Involving Business Teams:
Sustained Adoption
Addressing Real Business Problems
Continuous Refinement
12 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Example Collaboration Needs
Semantic Consistency“This is what my other business user group thinks is meant by MSA Codes – do you agree?”
Business Rules“If the customer has not transacted with us for more than 12 months, do we consider him inactive?”
Business Processes“What’s the earliest touch-point we have within our company where we’d find out if our customer has changed jobs?”
13 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
In Summary
Knowledge– The Knowledge is in the business
Timeliness– Timely access fresh data is predicated on business involvement
Sustained Adoption– Can only be achieved if the business is actively involved
Address Real Business Problems– Otherwise it’s yet another database to synchronize
Continuous Refinement– Otherwise the business will develop their own tactical, silos
Collaboration Needs to Occur to Discuss:– Semantic Consistency– Business Rules– Business Processes
14 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
State of Collaboration Today
0% 10% 20% 30% 40% 50% 60%
Rigid boundary exists between business and IT with littlecollaboration.
Collaboration clearly exists. It is intense during a major initiativebut is ad hoc on a day-to-day basis.
Business-IT collaboration on data is institutionalized as aroutine activity even in the absence of a major initiative.
Business-IT collaboration related to data is pervasivethroughout the enterprise.
What is the level of data collaboration between bus iness and IT?
Source: Kalido Data Governance Maturity Assessment on Kalido Website (277 respondents)
82% of respondents don’t have effective collaboration between business & IT
15 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
State of MDM Adoption
Source: Kalido Data Governance Maturity Assessment on Kalido Website (277 respondents)
59%
32%
6%3%
How does your organization manage master data?
Master data resides in disparateapplications and is unmanaged.
Single or multi-domain MDM isimplemented but lacks governance.
MDM platforms work w/central datagovernance app to implement/executeenterprise master data policies.
Master data complies with enterprise datapolicies and rules at the points of origin.
Only 9% of respondents have effective enterprise MDM programs today
16 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
How To Amplify Business Ownership Of The Data?
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4 Things To Consider
Understand how the data is used– To identify consumers who will care about the data
Establish the impact of bad data– To establish business case
Identify champions – To embed adoption
Pick your battles– Understand that not all data is “created equal”
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Understand Data Consumption
Identify business processes that consume the data
Understand the processes– Specific data needs– Operating frequency
& timeliness requirements
Identify and foster key stakeholders
19 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Data Drives Business Performance
Business Process
Business Process
DataData
DataData
DataData
DataData
Data Quality Metrics
Data Quality Metrics
AccuracyAccuracy
CompletenessCompleteness
TimelinessTimeliness
Operational Metrics
Operational Metrics
ThroughputThroughput
Cycle TimeCycle Time
UtilizationUtilization
Enterprise KPIs
Enterprise KPIs
Days Sales OutstandingDays Sales
Outstanding
Business OutcomeBusiness Outcome
ApplicationApplication
ApplicationApplication
ApplicationApplication
ApplicationApplication
20 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Identify Key Champions
Data Governance CouncilData Governance Council
Data Organization
Data ExecData Exec
Data StewardsData Stewards
IT Organization
IT ExecIT Exec
System OwnersSystem Owners
Business Organization
Business ExecBusiness Exec
Process OwnersProcess Owners
OperatorsOperatorsData ConsumersData Consumers
Data AuthorData Author DevelopersDevelopers
21 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Not All Data Is Created Equal
Name Address City State ZIP Order AmountWawrinchuk, Troy E 7 29TH AVE E ATLANTA GA 30328 4.26$ Sankovic, Gregor G 19 ROAD AND ROUTE 38 COLORADO SPRINGS CO 80919 4.95$ Das, Grace Jhansi 176 ROSWELL RD NE SEATTLE WA 98109 6.52$ Laver, Brad Alan 2045 THOMAS LN LOS ANGELES CA 90048 3.52$ Easton, Craig L 407 RIDGE RD SAN ANGELO TX 76904 3.48$ Gaiao, Francisco L 3863 W CATAWBA AVE RANCHO CORDOVA CA 95670 6.66$ Hannah, Tristen Elle 10614 W TOWN ST OREM UT 84057 2.65$ Randell, Travis Rockwell 2320 BUFFALO SPEEDWAY DUBLIN OH 43017 3.23$ Manikowski, Eric P 1160 PEACHTREE DUNWOODY RD NE KONAWA OK 74849 6.97$ Hammerstrom, Eric R 7659 NICOLLET MALL OWINGS MILLS MD 21117 4.65$ Najbart, Greg Eric 102 BURNHAM AVE HENDERSON NV 89052 4.22$ Lapish, Brent S 74 CADILLAC DR LOS ANGELES CA 90067 5.86$ Laidvee, Erti Stewart 930 COLUMBIA RD LUVERNE AL 36049 3.37$
An incorrect address here does not have a material impact on the business
BUT:
An incorrect product specification that causes a ha lt to production for 2 days, or the address on an agent invoice for $12.5 millio n, is a different story!
If each data record has a low impact on the business it should be managed through rules (e.g. Customer Address in B to C)
If each data record or attribute has a high impact it should undergo individual stewardship review
22 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Emerging Trends for Business-Owned Master Data Governance
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Policies Enforce Behavioral Changes
Policies defined centrally but enforced at source
Rules and metrics used to enforce compliance
Manual compliance used where rules cant be applied to source
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Business Participation
Business Application Users– Provisioned with live access to published master data– Tasked with “proposing” edits or creation of new master data
records– Enabled to identify and report data issues directly in master
data solutions
Data Administrators– Transitioning from data entry to data steward functions
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Demands Of Agile Governed Enterprises
High
Low
Stable Dynamic
Need for Change in Data Models, Rules and Processes
Need for Governance
More agility even for historically stable domains
More governance even for new and emerging business initiatives
26 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Spreadsheets
SharePoint
New Class Master Data Application
Legacy Forms Apps
XML
Enterprise Applications
High
Low
Stable Dynamic
Master &
Reference
Data
Governance
Need for Change in Data Models, Rules and Processes
Need for Governance
27 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
The Role of Master Data Management Technology
28 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Knowledge Gap
Data Stewards to Fill the Gap
IT
High Low
Focus of EffortLow High
Master Data Knowledge
Systems Knowledge
Data StewardsBusiness
Application Users
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Enable Business Users to Bridge the Gap
IT
Low High
Master Data Knowledge AND Focus of Effort
Systems KnowledgeBusiness
Application Users
30 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Kalido’s Vision for Master Data Management
Model It for Every Domain– Rich modeling constructs supports real-world business environment– Domain-agnostic modeling, matching and mapping capabilities reduces manual
stewardship requirements– Integrated graphical model models both common and obscure domains without
costly customizations
Master It with Everyone– Audience-specific interfaces (for data stewards, business process operators,
information consumers) provide active, role-based involvement– Sophisticated workflow and model-driven API enables real-time collaboration– Policy-driven governance enables executive involvement
Govern It Everywhere– Flexible interfaces provide universal access from browsers, mobile devices,
analytical and operational applications– Change management capabilities support master data lifecycle requirements– Audit, validation and security requirements managed seamlessly
31 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Kalido Master Data Management Version 9.0 SP2
Kalido MDM Version 9.0 SP2 expands master data participation from data stewards to business application users, improving overall quality and timeliness.
Business-led approach delivers golden copy master data faster as existing assets are reused and business application users contribute more directly.
Kalido MDM V9 SP2 supports both “clean-up” and “operationalized” master data management through improved operational synchronization and a sustained, “stay-clean” environment.
32 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Kalido MDM Version 9 Release Benefits
Benefits for IT– Further expands control for master data to the hands of the business– More robust toolkit for serving operational master data needs– Advance from “clean-up” mindset to sustained “stay-clean” operational
environment
Benefits for Business– More accurate and consistent master data– Broader support for business-led operational use cases– Simplified ability to propose new master data
Kalido MDM version 9 SP2 extends the benefits of MD M for every domain, with everyone, everywhere.
The result is significantly more robust, model-driv en MDM applications that further engage the business data experts across the organization, to deliver the most accurate and consistent master data to you r business processes.
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Q&A
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Next Steps
Attendees will receive our whitepaper on “Kalido MDM Technical Overview”
Read our blog about Kalido Master Data Management http://http://blog.kalido.com/category/master-data-management/
Follow us on Twitter: @Kalido
Join the Kalido community: Kalido Connections
Contact us! +1.781.202.3200, press 1
35 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012
Thank you for attending!