Customer Centricity: How the MDM
Journey Creates Business Success
Anne Ratcliffe
WW InfoSphere MDM
Sales Executive
Information Management
IBM Software Group
1
Agenda
•
•
•
•
The Information Supply Chain
Master Data Management Overview
The IBM® InfoSphere™ MDM Portfolio
Customer Success Stories
2
Data Explosion in a Smarter World!
Volume of Digital Data
• 57% CAGR for enterprise data through 2010
• Machine generated data : Sensors, RFID, GPS..
Variety of Information
• 80% of new data growth is unstructured content
• Emails, images, audio, video..
Velocity of Decision Making
• Rapidly changing business climate
• Need to get ahead of the curve : predict issues
and fix them
New Data
New Information!
3
But, How Do We Leverage Information
for Smarter Business Outcomes?
42% of managers use
wrong information at
least once a week
59% of managers
miss information
valuable to their
jobs because they
can't find it
Sources: Accenture Survey, January 2007, AIIM Survey, July/August 2007
47% of users
don’t have
confidence in their
information
4
Think Differently to Drive Smarter
Business Outcomes
Optimization
Automation
Call Center
Operations
Human Resource
Management
ERP &
Financials
Application
Agenda
5
Key Business Drivers for MDM
Revenue
Agility/Strategic Initiative
• Identify cross-sell, up-sell opportunities
• Customize product offerings
and bundles
• Introduce new products quickly
• Identify high value customers
• Improve customer retention
• Consolidate data from silos/integrate
new systems quickly (M&A)
• Meet demands of new
business channels
• Grow with the business
• Identify key relationships
and hierarchies
Cost
Compliance
•
•
•
•
•
• Reduce risk
• Control access to data
• Adhere to government and
corporate regulations
• Manage customer privacy
preferences
Automate manual business processes
Reduce data errors
Eliminate excess mailings
Identify risk (credit)
Supports system consolidation
initiatives
6
6
What is Master Data? Why is it important?
• Master data is a subset
of all enterprise data
• Master data is the highvalue, core information
used to support critical
business processes across
the enterprise
• Master Data is information
about customers,
suppliers, partners,
products, materials,
employees, accounts and
more
• Master Data is at the heart
of every business
transaction, application
and decision
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7
Master data
7
What is Master Data Management?
• Provides a consistent understanding and trust of master data entities
• Provides mechanisms for consistent use of master data across
the organization
• Is designed to accommodate and manage change
CRM
John Jones
112 Main Street
Customer Value – High
Risk Score – Low
Solicit – Do Not Call
ERP
Data Warehouse
John Jones
112 Main Street
Customer Value – High
Risk Score – Low
Solicit – Do Not Call
eBusiness Application
J. Jones
1500 Industrial
Customer Value – Low
Risk Score – High
Solicit – No data
MDM
John Jones
Customer Valiue High
Risk Score Low
Do Not Call
jjones@abcCo.com
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8
Current Business Automation…Since
the Beginning of Info Technology
Application
Agenda Era …
• IT Applications
built in silo to
solve specific
business problems
(Order, billing,
service,
compensation,
etc)
• Line-of-business
focused (by
product)
• Common data
(e.g Customer)
in disparate
systems resulting
in duplicates and
non-trusted data
Web
Phone
Call Center
Agent /
Sales
Headquarters
(e.g Risk Mgr,
Administrator)
Other Users
(e.g business
partners)
Business
Intelligent
(e.g. COGNOS)
IVR
Web
CRM/
Call Center
Process
Server
Sales
Force
Automation
Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.)
Product
Order
System
Customer
Product
Account
Others
Billing
System
Customer
Product
Account
Others
Comp.
System
& Others
Service
System
Customer
Product
Account
Others
New
Systems
(e.g. SOA
–based)
Customer
Product
Account
Others
External
Business
Partners
Security,
Mail, etc
Content
Management
(e.g. FileNet)
Batch Connectivity (e.g. ETL Tools)
9
Non-Trusted Data
Common Data in Disparate Systems Cause
Data Quality Problems…
System A
System B
Name:
Nancy Smith
Nancy Jones
Mark Jones
Nancy Jones
Gender:
Female
F
Male
Female
Birth Date: 1 Aug 1980
1/8/1980
9/2/1963
8/1/80
Marital
Status:
Single
Married
Married
M
ID:
Passport: BA26355
DLN:800801-2311711
DLN:630902-1212212
DLN: 800801-2311711
Address:
1 Main St, …
1 Main Street, …
No 1 Main St, …
2 Main Street, …
Sales
Compensation
System C
• Are they the same person?
• Are they related to other customers?
• Is the customer also an agent
• Which address is correct
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Leaders Investing to Optimize
Information Assets
Clients Tell Us What They Are Looking for…Trusted Data
Insightful
Derive meaning from
information changes
In Context
Real-time delivery of relevant
information when and where it’s
needed
Complete
Related information reconciled into a
single and holistic view
Accurate
Complex and disparate data transformed,
cleansed and delivered
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IBM® InfoSphere™ Solutions to Provide
Trusted Data to Drive Business Optimization…
IBM® InfoSphere™
Information Server
• Every capability
needed to
understand,
cleanse, integrate
& deliver
information across
heterogeneous
systems
Web
Phone
Call Center
• Unique metadatadriven design for
acceleration &
business-IT
alignment
Headquarters
(e.g Risk Mgr,
Administrator)
Other Users
(e.g. business
partner)
Business
Intelligent
(e.g. COGNOS)
IVR
Web
CRM/
Call Center
Process
Server
Sales
Force
Automation
Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.)
• Broad native
connectivity to any
data source
• Massive scalability
for integrating large
data volumes in
batch or real-time
Agent /
Sales
Product
Order
System
Customer
Product
Account
Others
Billing
System
Customer
Product
Account
Others
Service
System
Customer
Product
Account
Others
Comp.
System
& Others
New
Systems
(e.g. SOA
–based)
External
Business
Partners
Customer
Product
Account
Others
Security,
Mail, etc
Content
Management
(e.g. FileNet)
INFOSPHERE INFORMATION SERVER
Understand
Cleanse
Transform
COMMON META DATA
Deliver
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Non-Trusted Data
Common Data in Disparate Systems Cause
Data Quality Problems…
System A
System B
Name:
Nancy Smith
Nancy Jones
Mark Jones
Nancy Jones
Gender:
Female
F
Male
Female
Birth Date: 1 Aug 1980
1/8/1980
9/2/1963
8/1/80
Marital
Status:
Single
Married
Married
M
ID:
Passport: BA26355
DLN:800801-2311711
DLN:630902-1212212
DLN: 800801-2311711
Address:
1 Main St, …
1 Main Street, …
No 1 Main St, …
2 Main Street, …
• Are they the same person?
• Are they related to other customers?
• Is the customer also an agent
• Which address is correct
Sales
Compensation
System C
INFOSPHERE INFORMATION SERVER
Understand
Cleanse
Transform
Deliver
COMMON META DATA
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Master Data Management
The Path to Managing & Providing Trusted Data…
Master Data …
• Common
Data
• Directory
(X-ref) Data
• Summary
Data
NAME
PARTY
X-REF
PARTY
RELATIONSHIP
PARTY
HIERARCHY
DEMOGRAPHIC
(Gender, Birth Date,
Establish Date, etc)
PARTY
VALUE
PERSON or ORG
(Party)
CAMPAIGN
SUMMARY
ADDRESS &
CONTACT METHOD
(Phone, e-Mail, etc)
INTERACTION
HISTORY
IDENTITY
ACCOUNT/
POLICY X-REF
PRIVACY &
PREFERENCE
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Master Data Management
Centralized Management of Master Data via Services
to Provided Trusted Operational View of Business …
INTEGRITY
service
INTELLIGENCE
service
INTEGRATION
service
AUTHORIZATION
service
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IBM® InfoSphere™ Solutions to Provide Trusted
Data to Drive Business Optimization…
Web
Phone
Call Center
Agent /
Sales
Headquarters
(e.g Risk Mgr,
Administrator)
Other Users
(e.g. business
partner)
Business
Intelligent
INFOSPHERE MDM SERVER
(e.g. COGNOS)
IVR
Web
CRM/
Call Center
Process
Server
Sales
Force
Automation
Real-time
Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.)
Product
Order
System
Customer
Product
Account
Others
Billing
System
Customer
Product
Account
Others
Service
System
Customer
Product
Account
Others
Comp.
System
& Others
New
Systems
(e.g. SOA
–based)
External
Business
Partners
Customer
Product
Account
Others
Security,
Mail, etc
Content
Management
(e.g. FileNet)
INFOSPHERE
WAREHOUSE
INFOSPHERE INFORMATION SERVER
Batch Load
Understand
Cleanse
Transform
COMMON META DATA
Deliver
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Over 10 Years Experience & 600+ Customers
4 of top 6 US Insurance Companies
6 of top 10 US Financial Services
10 of top 12 US Retailers
5 of top 6 US HC Payers; EMPI & HIE leader
Leader for large national & local governments
http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/
17
Customers Across Industries are Addressing a
Broad Set of Business Challenges With MDM
Government
Healthcare
• Improve Case
management
• Reduce fraud
across benefit
Applicants
• Improve revenue
collection across
Taxpayers
• Improve Citizen
services
• Streamline Asset
management across
Locations
• Improve Patient care
and reduce medical
errors
• Encourage
Physician loyalty
• Improve Compliance
and Patient privacy
• Streamline Hospital
Asset management
or medical Products
across supply-chain
and Locations
Telco
• Improve Customer
service and billing
Contracts, and
reduce churn
• Support Regulatory
compliance for
Customers /
Organizations
• Grow Customer
wallet share through
tailored Product
offerings and bundles
Energy & Utilities
• Energy Price data
management
• Asset and Location
management (e.g.,
reservoir, oil field,
meter)
• Improve Customer
service
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Customers Across Industries are Addressing a
Broad Set of Business Challenges With MDM
Financial Services
Insurance
• Regulatory
compliance for
Customers
• Improve Customer
satisfaction
• Grow Customer wallet
share through tailored
Product offerings and
bundles
• Understand full
exposure and reduce
credit risk across
Accounts
• Streamline Member
enrolment
• Improve claims
processing for
Members
• Create custom
Product offerings
and bundles
• Optimize Policy
management
• Manage compliance
and privacy across
Members
Retail
• Superior
Customer multichannel
experience
• Improve
Customer loyalty
• Faster Product
launch across
Locations
• Improve Vendor /
Supplier onboarding
Manufacturing
• Streamlined Asset
management
• Improve Supplier /
Dealer financial
management
• Food Products
safety compliance
• Manage Customer
preferences and
lifecycle
• Faster Product
launch across
Locations
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IBM® InfoSphere™ Master Data Management
A broad set of capabilities to enable adaptive master data
management solutions
Adaptive MDM for diverse requirements
•
•
•
•
•
•
•
World’s largest MDM customers and
implementations
Rapid time to value with multiple deployment
options
Support for any data domain and industry
Strong master data stewardship capabilities
Pre-packaged capabilities speed time to market
Customizable and extensible foundation
Seamless scaling as data volumes grow
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Phased Implementation
Drive Business Optimization with Positive ROI
Reduce cost and improve customer satisfaction via
once-and-done processing … e.g. address change
Reduce risk exposure via holistic view customer
household and product holdings
COST
REDUCTION
IMPROVE
RISK
MANAGMENT
Improve up-sell and cross-sell with relevant offers
meeting customer requirements
IMPROVE
SALES
CAMPAIGN
Comply with government regulations…privacy act,
risk exposure reporting, etc
REGULATORY
COMPLIANCE
Forming a customer chassis to reduce M&A integration
points and improve integration speed and cost
ASSIST
MERGER &
ACQUISITION
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IBM MDM Customer Success Story
The Facts:
 Multiple customer information
systems from acquisitions
 Inability to identify value of
customer across mortgage, bank
account, sales, and life administration
systems
Bottom line:
 Removed 400,000 duplicate records
to date
 Greater ability for cross-sell and up-sell
 Led to increased revenue and
improved customer loyalty
"Now that we manage our
customer information as an asset,
the opportunities for innovation and
optimization are endless. We can
respond to the dynamics of our
business twice as fast."
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IBM MDM Customer Success Story
The Facts:
 Create and maintain product
information 10% faster
 Data entry errors reduced from 5% to
0.1%
Bottom line:
 Anticipated operational savings of €5
million annually
 Partners reduce costs by 25%
 Two additional weeks of sales for new
products leading to 3.5% increase in
revenue
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IBM MDM Customer Success Story
The Facts:
 Integrates over 52M customer records
within and across disparate systems
 Acts as the single point of management
for a global customer identifier
Bottom line:
 Reduced data standardization costs by
50% and marketing costs by 10%
 Decreased customer churn by 5% and
increased cross-sell, up-sell revenue by
10%
 Recognize a 300% increase in customer
privacy compliance across the entire
organization
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Q & A / Thank You
For More Information,
Please Contact:
Anne Ratcliffe
WW InfoSphere MDM
Sales Executive
Information Management
IBM Software Group
Ph: +1 415 867-0895
Email: aratclif@us.ibm.com
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Appendix
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Delivering Business Insight Requires
Mastering Your Information
Going Beyond Simply Managing… to Optimizing Business Results
Clients’ Information Supply Chain
Applications
& Processes
Analyze
Integrate
Reports &
Dashboards
Business
Intelligence
Applications
Master Data
Business
Applications
Database
Infrastructure
Content
Transactional
Streaming
Business
Data
Data
Warehouse
Applications
27
IBM MDM Product Portfolio
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IBM MDM Product Portfolio
IBM® Initiate® Master
Data Service®
IBM® InfoSphere™
MDM Server
Virtual master registry for
delivering single, trusted
versions of master data
and their relationships
Physical master repository
of customer, account and
product data for the
business to consume
as services
Governance
Single View
IBM® InfoSphere™
Identity Insight
Analytical capabilities to
discover where threat
and fraud exists to
enable immediate action.
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Common
Components
IBM® InfoSphere™
MDM Server (for PIM)
Capabilities to flexibly
manage products and other
entities across enterprise
29
IBM® Initiate® Master Data Service®:
Functional Overview
• Data Stewardship
– Inspect and resolve data quality issues
– Visualize and manage relationships
IBM® Initiate® Master Data Service®
Data Stewardship
• Master Data Engine
– Highly accurate and flexible matching and
searching across multiple data domains
– Load, match and link master data in hours
Master Data Engine
• Flexible & Extensible Data Model
– Model complex master domains and
relationships
– Employ data models that are built and optimized
specifically for master data management
Match & Link
Workbench
Relationships
Data Model
• MDM-Powered Solutions Framework
– Streamline creating MDM-powered
solutions for end users
Solutions Framework
Components
Blueprints
• Integration
– Integrate with multiple real-time and
batch options
– Deliver trusted master data to downstream data
warehouse, analytics and BI systems
– Message-based support (HL7, JMS, MQ Series)
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Integration
SOA
Java/.Net
Industry
30
IBM® InfoSphere™ MDM Server:
Functional Capabilities
• Business Services
– Enables business process to easily leverage
master data
– Speed time-to-value, reduce subsequent
phase investment
IBM® InfoSphere™ MDM Server
Data Stewardship
• Functionality
– Stewardship: Data Quality, Stewardship,
& User Interfaces
– Events: Event Management
& Business Rules
– Security & Entitlement: ROV
Business Services
Pre-built
MDM Domains
• Multi-domain
– Extensible data model supporting domains
including Party, Product, Account & Location
– Relationships between domains
• MDM Workbench
Customizable
Party
Account
Product
Custom
Integration
Content
Data
Analytics
– Tooling for easy extensions to data
and UI generation
• Robust Data Integration
– Pre-built Data Integration & Quality
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IBM® InfoSphere™ MDM Server (for PIM):
Functional Capabilities
• Collaborative Business Processes
– Workflows for Collaborative Tasks
• Extendable Authoring UI
IBM® InfoSphere™ MDM Server (for PIM)
– Business User Interface for Authoring
and Search
Collaborative Authoring
• Flexible Data Model
– Product Catalogs, Category
Hierarchies, Attributes, Relationships
Business Process workflow
• Data Synchronization
– Imports and Exports with Deltas
and Versioning
NPI
GDS
Multi-Commerce
MDM Custom-Built Domains
– Job Scheduler
• User and Role Security
Catalog Mgt
Product
Location
Supplier
Others
– Granular Access privileges to enforce
complete and accurate data
– User and Role Security
– Attribute Level Security
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