Aaron Zornes
Chief Research Officer
The MDM Institute aaron.zornes@tcdii.com
+1 650.743.2278

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Accenture
Acxiom
Alphapharm
Altis Consulting
AMP
ANZ Banking Group
ASIC
Bendigo Bank
Bluescope Steel
BusinessMinds
CIO Network
Coates
Cognizant Technology Solutions
Commonwealth Bank
CommSec
Connect Pacific
Crane Group
Deloitte
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Relations
Department of Environment &
Climate Change NSW
Department of Human
Services (VIC)
Doll Martin Associates
Easy & Natural Australia
Energy Australia
Esprit
Fairfax Media
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Fosters Group
Gallagher Bassett
GE
GPT Group
GS1
Harvey Norman
Hurricane Media
Hutchison 3G
Hyundai
Infowit
ING Direct
Initiate Systems
Insight2Action
Insurance Australia Group
Lend Lease
Medibank Private
Metcash
MicroStrategy
MIP
National Australia Bank
Navitaire
News Limited
NRMA Insurance, SGIO & SGIC
NSW Health
NSW Treasury Corporation
Oakton oOH! Media
Oracle
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Origin Energy
Patni
Platon
Qantas
QBE
Queensland Government
Chief Information Office
Queensland Rail
Railcorp
Rio Tinto
SAS Institute Australia
Satyam
Servien
St George Bank
Stanwell Corporation
Star Track Express
Suncorp
Sydney Airport Corporation
Sydney Ports
Sydney Water Corporation
Telstra
TIBCO Software
TOGA Group
Trillium Software
UTelco Systems
Virgin Blue
Wave Business
Wesfarmers
Westpac
Woolworths
© 2009 The MDM Institute The-MDM-Institute.com

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Founded 2004 to focus on MDM business drivers & technology challenges
MDM Advisory Council™ of 100 Global 5000 IT organizations with unlimited advice to key individuals, e.g.
CTOs, CIOs, data architects
MDM Business Council™ website access & email support to 15,000+ members
MDM Road Map & Milestones™ annual strategic planning assumptions
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MDM Alert™ bi-weekly 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, Sydney,
Toronto, & Tokyo
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About Aaron Zornes
Most quoted industry analyst authority on topics of MDM & CDI
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Founder & Chief Research Officer of the MDM Institute
Conference chairman for DM Review’s MDM SUMMIT conference series
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Founded & ran META Group’s largest research practice for 14 years
M.S. in Management Information Systems from University of Arizona
“Independent, Authoritative, & Relevant”
© 2009 The MDM Institute The-MDM-Institute.com

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Representative Members
3M
Autotrader
Bell Canada
Caterpillar
Cisco Systems
Citizens Communications
COUNTRY Financials
Educational Testing Svcs
EMC
GE Healthcare
Honeywell
Information Handling
Services
Intuit
McKesson
Medtronic
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Microsoft
Motorola
National Australia Bank
Nationwide Insurance
Norwegian Cruise Lines
Novartis
Polycom
Roche Labs
Rogers Communications
Scholastic
Stryker
SunTrust
Westpac
Weyerhaeuser
Woolworths
100 organisations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads
© 2009 The MDM Institute The-MDM-Institute.com

1
Market Review & Forecast
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Forrester
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IDC
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“US$344M total MDM S/W market size (not including services) in 2006”
“MDM anticipated growth to over US$2.2B by 2010”
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“Market for w/w MDM
Software & Services to
US$7.9 billion in 2009, with
CAG of 16.6% over 2006-
2011 forecast period”
Gartner
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MDM Institute
“MDM for customer master will hit ~ US$1B in S/W revenue by 2012”
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“Overall MDM market
(customer & product hubs, plus systems implementation services) to grow to US$2 billion by 2012”
“With PIM & other domains, it could be over US$2B”
1 – MDM Institute MarketPulse™ report (55 pages)
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Overview of enterprise MDM
Strategic planning assumptions for Global 5000 & SMBs
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Enterprise MDM market forecast for 2008-12
Leading MDM vendor profiles & field reports
Clearly, enterprise MDM is a major IT initiative being undertaken by large number of market-leading Global 5000 size enterprises
© 2009 The MDM Institute The-MDM-Institute.com

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Allianz/FFIC
Avaya
Belgacom
Cadbury Schweppes
Capital One
Carrefour
Cisco
Clear Channel
Cummins
Daimler
Dell
DHL
Dubai World
FedEx
Fidelity
Genworth
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© 2009 The MDM Institute The-MDM-Institute.com
HBOS/LLTSB
JC Penney
Johnson Controls
Marriott
Network Rail
Pepsi Americas
Posten (Norway)
Qwest
Safeway
TDK
Telecom Egypt
Volkswagen
Walgreens
Wendy’s
Yellow Book

Data Governance (DG)
Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset.
Master Data Management (MDM)
Authoritative, reliable foundation for data used across many applications
& constituencies with goal to provide single view of truth no matter where it lies.
Customer Data Integration
(CDI)
Product Information
Management (PIM)
Processes & technologies for recognizing a customer & its relationships at any touch-point while aggregating, managing & harmonizing accurate, up-to-date knowledge about that customer to deliver it ‘just in time’ in an
Processes & technologies for recognizing PRODUCT,
SUPPLIER, & PRICING master data actionable form to touch-points.
© 2009 The MDM Institute The-MDM-Institute.com

Operational MDM
Definition, creation, & synchronization of master data required for transactional systems & delivered via SOA; examples: near R/T customer hubs & securities masters
Analytical MDM
Definition, creation, & analysis of master data; examples: counterparty risk mgmt apps & financial reporting consolidation
Collaborative MDM
Definition, creation, & synchronization of master reference data via workflow & check-in / check-out services; examples: PIM data hubs & AML
For most G5000 enterprises, multiple (often all) variants will be needed to make MDM initiatives successful
© 2009 The MDM Institute The-MDM-Institute.com

Market Review & Forecast for 2008-12
“Top Five” Business Drivers for MDM Initiatives
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Compliance & regulatory reporting
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Economies of scale for M&A
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Synergies for cross-sell & up-sell
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Legacy system integration & augmentation
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“Once & done” economies & customer satisfaction
Enterprise MDM is increasingly mandated to manage master data (customers, accounts, products, etc.) that has significant impact on enterprises’ most important business processes
© 2009 The MDM Institute The-MDM-Institute.com

Market Review & Forecast for 2008-12
“Top Five” Report Findings
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Rapid growth of MDM market into mid-market as well as across industries & geographies
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Steady evolution away from data-centric hubs into application hubs
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Elemental movement towards “enterprise MDM” in multiple phases
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Futile dogmatic resistance is fading against the power of multiples
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Inexorable shift to formal data governance structures
The market for MDM solutions is significantly & quickly expanding – across geographies, industries, & price points
© 2009 The MDM Institute The-MDM-Institute.com

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SOA/shared services architecture with evolution to “process hubs”
Sophisticated hierarchy management
High-performance identity management
Data governance-ready framework
Persisted, registry & hybrid architecture flexibility
MASTER
DATA
SEARCH
MASTER
DATA
PREPAR
-ATION
MASTER
DATA
APPLICATIONS
MDM
MASTER
DATA
MOVEMENT
MASTER
DATA
MODELING
MASTER
DATA
GOVERNANCE
MDM has morphed from “early adopter IT project” to
“Global 5000 business strategy”; phase 2 MDM deployments are already fusing party & product domains
© 2009 The MDM Institute The-MDM-Institute.com

th
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Multi-entity MDM
Process/policy hub architecture
Unstructured information support
Integrated data governance
Enterprise search
MASTER
DATA
SEARCH
MASTER
DATA
PREPAR
-ATION
MASTER
DATA
APPLICATIONS
MASTER
DATA
MODELING
MDM
MASTER
DATA
GOVERNANCE
MASTER
DATA
MOVEMENT
G5000 enterprises’ business strategies mandate long term, strategic “multi-entity MDM” – in turn enabled by policydriven data governance
© 2009 The MDM Institute The-MDM-Institute.com

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With a 4 th generation MDM platform, an enterprise will be better able to
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Identify & provide differentiated service to its most
valuable customers via their relationships (households, hierarchies); also cross-sell & up-sell additional products to these customers
Introduce new products & product bundles more
quickly across more channels to reduce the cost of New
Product Introduction (NPI)
Provide improved enterprise-wide transparency across customers, distributors, suppliers, and products to better support regulatory compliance processes
Enterprises must plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
© 2009 The MDM Institute The-MDM-Institute.com

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High RAS (reliability, availability, scalability) infrastructure
Flexibility in mash-up of extreme data velocity & variety
Inline analytical MDM processes supporting operational MDM
Customer:product conundrum
Lack of standards – BPM, rules engines, metadata
Adherence to evolving security & privacy requirements
Lifecycle approach to data assets
Historical MDM Solutions
Aggregation
Customer
Files/DBs
Load
(ETL)
MDM
Replication
Integration
(EAI)
Synchronization
Market is hyper dynamic in available solutions; requirements vary by industry, scale & business complexity
© 2009 The MDM Institute The-MDM-Institute.com

www.tcdii.com/mdmresearch/assumptions.html
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Market maturation
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Market momentum
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Market consolidation
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Budgets/skills
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Data governance
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MDM convergence
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Architecture & data models
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Identity resolution
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Party data quality
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Analytics
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Policy hubs
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Enterprise search
Strategic planning assumptions to assist
IT organizations & vendors in coping with flux & churn of evolving MDM vendor landscape
© 2009 The MDM Institute The-MDM-Institute.com

Strategic Planning Assumption
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During 2009, the MDM market will continue to shift gears from “early adopter” to “mainstream” as 95%+ of financial services, communications services, high tech, & pharma/life sciences enterprises actively explore to replace homegrown MDM solutions
Through 2010-11, verticalization/horizontalization of
MDM solutions will expand beyond corporate financial reporting, EMPI healthcare, etc. into financial services
& government especially
By 2012, the market for enterprise MDM solutions
(software & services) as both strategic initiatives & to refresh aging legacy MDM capabilities will exceed
US$3B
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

Strategic Planning Assumption
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During 2009, MDM solutions such as IBM, ORCL, SAP, &
TDC will monopolize majority market share in the G5000 enterprise; while mid-market solutions arrive from
MSFT, Nimaya, & ORCL plus Data Quality vendors
(Pitney Bowes/G1, SAS/DataFlux, Trillium)
Through 2010, both mega & best-of-breed MDM vendors will aggrandize the traditional master customer
DB business of Data Service Providers (e.g., ACXM,
DNB, & Experian) as these vendors sprint to deliver onpremise data hub solutions
By 2012, every major application & database vendor will provide either native or OEMed MDM capability – including DOX, MSFT, & CRM
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

Strategic Planning Assumption
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During 2009, mega IT vendors
(IBM, ORCL, SAP) will continue
M&A-driven R&D gyrations in moving to an enterprise
MDM-centric portfolio with ORCL & SAP challenged additionally in moving from silo’ed application architectures into SOA-based architectures
(Fusion & NetWeaver)
By 2010, IBM
(ASCL/CRSW/DMC/DWL/LAS/Princeton Softech/
SRD/Trigo/Unicorn)
& ORCL
(HYSL/iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most architectural/ BPM/ metadata/platform issues that confounded SAP earlier
(A2i/BOBJ/Callixa)
Through 2011-12, mega IT vendors
(IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors
(DNB/Purisma, i2, Initiate Systems, Kalido, Siperian) thriving in specific industries & horizontal/corporate applications
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

Strategic Planning Assumption
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During 2009, G5000 size enterprises will spend US$1M for
MDM software, with addt’l US$3-4M for SI services; Global
Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators
Throughout 2010, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & individuals with data governance experience outstrip market supply; concurrently, SIs will fill void in classic style by baiting & switching veterans for rookies
By 2012, market will stabilize as enterprises react by training & protecting their own MDM staff with specific product & project expertise; until then, enterprises will struggle with re-skilling same resources multiple times as emerging/evolving data management technologies mature
(e.g., Fusion, Netweaver, …)
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

Strategic Planning Assumption
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Scarcity of “hands on” MDM experience exists
During 2007-08, 1,500+ productspecific consultants albeit with little “real world” experience with mainstay MDM solutions were trained up
Current shortage lends itself to same scenario 5-10 years ago with SAP’s ABAP 4GL – i.e., inflated prices & resumes with many junior SI staff spinning up to speed at client’s expense
(a.k.a. “Androids”)
Product-Neutral On-Site
Data Steward,
Enterprise
Data Architect,
Enterprise Data
Modeler,
Ctrs of Excellence,
MDM
Programmers
Product-Specific
Off-
Shore
Market for expertise will create major demand for corporate MDM positions during next 3-5 years
© 2009 The MDM Institute The-MDM-Institute.com

Strategic Planning Assumption
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During 2009, most enterprises will struggle with crossenterprise DG scope as they initially focus on customer, vendor, or product; enterprise-level DG that includes entire master data lifecycle will be mandated as core phase 0/1 deliverable of large-scale MDM projects
Through 2010, major SIs & MDM boutiques will focus on productizing DG frameworks while MDM software providers struggle to link governance process with process hub technologies; concurrently G5000 enterprises struggle to evolve enterprise DG in cost-effective & practical way from “passive” to “active” DG modes
By 2011-12, mega vendor MDM solutions will finally move from “passive-aggressive DG” mode to “active DG”
Data governance will remain problematic during 2009-10 for organisations attempting to scale into phase 2 MDM
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

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During 2009, party & product data interdependencies will quickly broaden MDM requirements – i.e., from
“customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum
Through 2010-11, G5000 enterprises will broaden their MDM business initiatives from single use case, single entity to multi-style, multi-entity
By 2012, enterprises without long-term multi-entity
MDM strategy run ironic risk of building “MDM silos”
SOA-based multi-entity MDM manages master data domains
(customers, accounts, products, etc.) with significant impact on most important business processes
© 2009 The MDM Institute The-MDM-Institute.com

Strategic
Evolutionary
Multi-Entity MDM
Myopic
Pricing Policy Hub
Pricing Reference Master
CDI Hub
Location Master
Customer Registry
PIM Data Hub
Entity-Specific
MDM Data Marts
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Future direction is to grow all reference masters into operational masters
Future MDM landscape
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Multiple data domains
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Multiple relationships
Multiple usage styles – analytical, operational & collaborative
Linkage between operational data domains using collaborative or analytical
MDM
Enterprise MDM = multi-entity MDM – such epiphany enables the enterprise to avoid “random acts of MDM”
© 2009 The MDM Institute The-MDM-Institute.com

Strategic Planning Assumption
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During 2009, vendors will expose MDM capabilities as
“always on” services in loosely-coupled architectures; enterprises will begin establishing a central, business-side led data mgmt team with embedded data quality & external data update services in flow of core business processes
During 2010, mega vendors
(IBM, ORCL, SAP, TDC) will focus significant resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialization in B2B/B2B2C hierarchy management & distributed MDM
Not until 2011-12, will mega MDM vendors rewire foundational software to fully support strategic application infrastructure
(Fusion, NetWeaver, …)
& have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th gen full spectrum hubs that support structured & unstructured info
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

Strategic Planning Assumption
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During 2009, independent DQ vendors
(AddressDoctor, G1, HI,
Trillium) will focus on name & address cleansing as they struggle against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor MDM; ongoing challenge will be aggregation of customer data balanced against privacy dictates
During 2009-10, MDM capabilities for classifying, discovering
& archiving party relationships while maintaining privacy will become major requirement; concurrently, users will be challenged to discern price/performance/scalability & accuracy of matching algorithms;
By 2011-12, use of cross platform/cross brand customer keys will become core to enabling seamless loyalty programs & online services; sophisticated MDM hierarchy management capabilities will include “global IDs” as mainstay feature to link both legacy & newly-built hubs with DSP’s enrichment data
© 2009 The MDM Institute The-MDM-Institute.com
MDM MILESTONE

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Adoption of MDM for product is increasingly widespread across all industries
Like party master data, product master data spans multiple use cases & implementation styles
Diverse range of vendors is targeting the PIM market – enterprise application suite vendors, best-of-breed PIM vendors, best-of-breed procurement vendors, industry-specific product masters, analytical MDM vendors, … even CDI hub vendors
No vendor dominates
Enterprise application suite vendors will redouble R&D
& marketing efforts during 2009-10
Broader & deeper PIM requirements are pushing vendors to develop more comprehensive solutions; the PIM hub market will continue to grow quickly & attract new entrants
© 2009 The MDM Institute The-MDM-Institute.com

MDM Institute Advisory Council Consensus
December 2008 internal round table
Even tactical MDM projects require facets of the “enterprise MDM” solution set; enterprises must plan now to realize economic value & competitive differentiation via 4th generation MDM during next 2-5 years
© 2009 The MDM Institute The-MDM-Institute.com

• Enterprise MDM is major IT initiative underway at large
# of market-leading Global 5000 enterprises
• Most enterprises & solutions vendors are finding near-term success with single-faceted approach inherent with 3 rd generation MDM solutions
• Myopically focusing solely on single data domain & usage style is detrimental to longer term business strategy of integrating supply, demand, & info chains across both intra- & extra-enterprise boundaries
• Coming to market during 2009-10 are 4 th generation multientity MDM solutions which address requirement for multiple domains & styles as well as roles of consumers
Learn from MDM early adopters & prepare now for “Enterprise MDM” to increase business value & lower costs
© 2009 The MDM Institute The-MDM-Institute.com

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Promote MDM as essential business strategy with
IT deliverables to leverage high-value info used repeatedly across many business processes
Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade
Begin MDM projects focused on either customercentricity or product/service optimization
Plan for multi-entity MDM juggernaut evolving from
“early adopter” into “competitive business strategy”
Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains
Plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years
© 2009 The MDM Institute The-MDM-Institute.com

MDM SUMMIT Canada 2008
Toronto Holiday Inn on King Street | February 4 – 5, 2008
MDM SUMMIT – Spring 2008
Hilton San Francisco | March 30 – April 1, 2008
MDM SUMMIT - Europe 2008
London Royal Garden Hotel | April 21 – 23, 2008
MDM SUMMIT Asia-Pacific 2008
Sydney Sofitel Wentworth Hotel | April 28 – 30, 2008
MDM SUMMIT – Fall 2008
New York Hilton | October 20 – 22, 2008
MDM SUMMIT Europe 2009
Park Plaza Victoria Hotel | April 20 – 22, 2009
MDM SUMMIT Asia-Pacific 2009
Four Points by Sheraton Sydney | April 28 – 29, 2009
MDM SUMMIT Canada 2009
Radisson Hotel Admiral Toronto-Harbourfront | June 25 – 26, 2009
MDM SUMMIT Southern Europe & Deutschland 2009
Madrid & Frankfurt | Late Summer 2009 / Virtual
MDM SUMMIT Americas 2009
San Francisco Hyatt Regency | August 24 – 26, 2009
© 2009 The MDM Institute The-MDM-Institute.com

The-MDM-Institute.com a.k.a. www.tcdii.com
© 2009 The MDM Institute The-MDM-Institute.com