Information Management Strategy
from Business and IT Viewpoints
Mike Myhrom
Marina Kerbel
Director, Research, Analysis
and Consulting
Principal Architect / Director of
Information Architecture
Thrivent Financial
1
The Twin Cities Business Architecture Forum (TCBAF)
May 15, 2012
November 2011 “Integrated BA And IA Artifacts Are Valuable — And Hard To Find”
Most Organizations With Formal BA And IA Practices Link Their Architectures
2
Architecture for Business Results
Business Goal: Grow Membership thru Movie Viewers Satisfaction
Bus Arch:
Tech. Arch:
Define Movie
Watching
Capability &
Roadmap
Define tech.
components that
enable Wi-Fi TV
streaming
Info. Arch: Define Movie Catalog for Movie Subject Area and where
and how viewers can access it
Without a movie catalog a viewer who wanted to see 5-stars
Romantic Comedy may instead get 2-stars Horror Movie
3
About Thrivent Financial …
• Faith-based, not-for-profit financial services
• Nearly 2.5 million members strong
• Fortune 500 organization, >$73 billion in assets under management
• Largest fraternal benefit society in the U.S.
• Full complement of financial products and services
• Mission: strengthen Christian communities by helping members be
wise with money and inspiring them to live generously
4
Information Management Strategy
is focused on maturing key business capabilities
Example of
selecting
key
capabilities
Cross-sell to Existing Customers
Initiative/Campaign ROI Calculation
New Customer Acquisition
High-Value Customer Retention
Agent Recruiting
High-Value Agent Retention
Underwriting
Pricing
Etc.
5
Five Rules
guide our work
1. Business + IT partnership. (Early and throughout.)
2. Executive support based on ROI + expanded capabilities.
3. Constant focus on supporting key business strategies.
4. A framework that’s holistic, simple, iterative.
5. Common language.
partnership
6
support
focus
framework
language
Business, Technology, Data
growing complexity, diversity and volume
partnership
7
support
focus
framework
language
From Business to Data
bringing order to complexity
Can’t find data.
Don’t trust it.
Can’t access it.
Complex,
redundant,
costly.
Can’t
leverage
what’s
there.
partnership
8
Business
Strategy
Business
Capabilities
Enterprise
Information
Management
(EIM)
Keep making
more and not
sharing it.
support
Find data.
Trust it,
access it.
focus
Easier, more
efficient,
minimizing
cost.
Leverage
what’s there.
Connect,
share, draw
insights.
framework
language8
The EIM Strategy Building Blocks:
subject areas & capabilities
Building
Blocks
Subject Areas large groupings of data (such as
Customer, Contract, Employee)
Capabilities
EIM ensures
partnership
9
large groupings of functions (such
as Business Intelligence, Data
Warehouse, Data Services, Master
Data Management / Customer Data
Integration, ECM, Data Governance)
clean, secure, unified,
sharable data
support
focus
available for the right
people at the right time.
framework
language9
The EIM Building Blocks:
subject areas
Each subject
area consists
of one or more
sub-areas.
Used to:
• Provide common framework and language across business and IT.
• Establish clear boundary of data ownership and stewardship.
• Identify common data needs across projects.
• Provide basis for designing, managing and documenting data.
partnership
10
support
focus
framework
language10
The EIM Building Blocks:
capabilities
EIM ensures
available for the right
people at the right time.
clean, secure, unified,
sharable data
EIM Capabilities
Business Intelligence
Data Warehouse & Data Marts
IT
Data Integration / Data Services
Master Data Management (MDM) / Customer Data
Integration (CDI)
B
U
S
I
N
E
S
S
Enterprise Content Management (ECM)
Data Governance: Metadata ,Quality, Security
partnership
11
support
focus
framework
language11
EIM Principles
for subject areas and capabilities
 All data is classified into Subject Areas to logically divide it into manageable
pieces.
 Each subject area has Data Owner/Stewards assigned as a critical part of the
Data Governance program.
 Data is sourced from the System of Record or Certified Copy to ensure integrity
and known quality.
 Each system that maintains sharable data provides Standard Interface to this data
to support common data definitions and data reuse.
 Data Reusability Approach is used to identify common data needs across all
projects so optimal enterprise solutions can be developed.
 Information Management Strategy that defines and promotes key principles is
maintained and all projects adhere to it.
partnership
12
support
focus
framework
language
EIM Principles:
 Each subject area has Data Owner/Stewards assigned as a
critical part of the Data Governance program
partnership
13
support
focus
framework
language
EIM Principle:
 Data Reusability Approach is used to identify common data
needs across all projects
Goal: Implement data solutions that are most beneficial for enterprise rather
than a single project
Approach: look at data needs across programs (high priority business
capabilities) and develop common data solutions, prioritized by how many
programs need the same data
Data Requirement Matrix
partnership
14
support
focus
framework
language
Roadmaps for Reuse
(using EDW as Data Capability example)
ROI due to reuse:
•
•
Build sharable
data by subject
Cost to build for reuse = 2.5 X cost to build a silo
Positive return if 3+ consumers use the same solution
EDW R100 – Campaigns
areas
EDW R20 – Contract Term Life
EDW R1– Customer Groups
Compliance R1
2007
15
Compliance R2
CRM R1
2008
Fraternal R20
Marketing R30
Marketing R1
Fraternal R1
Self-Service R1
……..
Compliance R10
Marketing R40
CRM R100
Consume data
by Programs
(Business
Capabilities)
2012 +
Projects Implement Common Solutions
based on Reuse roadmap
Policy Admin
Systems
• Provide
sharable
Contract Data
Customer Data
Integration
(MDM)
• Provide sharable
Customer data
30+ major
initiatives
participated in
Data Reuse
16
• Integrate
sharable data
Many
Others…
CRM
• Leverage sharable
MDM Customer &
EDW Contract data
Enterprise
Data
Warehouse
(EDW)
Compliance
Marketing
Self Service
• Leverage
EDW
Customer,
Product,
Agent data
• Leverage
MDM Customer,
EDW Contracts
• Leverage
EDW
Customer,
Contract,
Agent data
EIM Story
bring order to data complexity, enable business results
1
Fraternal
Loyalty program rewards
Members for Fraternal product
ownership and engagement with
organization
2
Fraternal Tools
Self Service
Member logs on to company
website to review points earned
to date, updates personal
preferences
thrivent.com
Benefit Points
Preferences
3
DW & Marts
Policy Admin
Contracts
Compliance Package
5
Suitability
Compliance
Suitability analysis
completed on new
business contracts
17
Segmentation
Marketing
Marketing conducts
analysis on customer
information to identify
members and prospects
for offers and
communications
Sales
SalesForce.com
4
CRM
Financial representative responds
to lead sent to SalesForce, meets
with member, sells new contract
Business Use of Data:
Some Examples
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Five Rules
guided our work
1. Business + IT partnership. (Early and throughout.)
2. Executive support based on ROI + expanded capabilities.
3. Constant focus on supporting key business strategies.
4. A framework that’s holistic, simple, iterative.
5. Common language.
19
Information Management Strategy
is focused on maturing key business capabilities
Example of
selecting
key
capabilities
Cross-sell to Existing Customers
Initiative/Campaign ROI Calculation
New Customer Acquisition
High-Value Customer Retention
Agent Recruiting
High-Value Agent Retention
Underwriting
Pricing
Etc.
20
Cross-Sell Model
identifies each household’s likelihood to purchase each product
Each existing household
assigned a probability of
purchase
Households rank-ordered
based on probability of
purchase; placed in one
of twenty groups based
on rank
Lift for top group over 7x
average
21
Household Assigned a Number of Stars
for each product based on its model group
Top 10%
4 stars
Next 10%
Next 10%
Next 50%
Remaining 20%
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3 stars
2 stars
1 star
0 stars
Model Output Delivered to Agents
via salesforce for cross-sell success
Household – Bob Jones – HHID: 12345
Variable Annuity
Term Life
Cash Value Life
Mutual Fund
Health
23
Scorecard
automatically calculates and displays ROI of each campaign / event /
initiative
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New Member Acquisition Model and Pilot Campaign
in progress: an example of projected ROI
Data:
Model Development:
Printing and Mailing Costs:
Management and Agent Time:
$80,000
$70,000
$100,000
$200,000
Total Expense:
$450,000
Member Households Contacted:
100,000
X
Projected Response Rate Range:
0.3% to 1%
X
Average Value per Response:
$1,800
=
25
Total Revenue Range:
$540k to $1.8M
Net Return Range:
$90k to $1.35M
Five Rules
guided our work
1. Business+ IT partnership. (Early and throughout.)
2. Executive support based on ROI + expanded capabilities.
3. Constant focus on supporting key business strategies.
4. A framework that’s holistic, simple, iterative.
5. Common language.
26