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Customer Data Integration & Master Data Management Summit London 2006 13-14 July, London, UK. Produced by :. In Association with :. CUSTOMER DATA INTEGRATION . Trends & Strategies for 2006-07. Aaron Zornes Founder & Chief Research Officer The CDI Institute

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Produced by

Customer Data Integration & Master Data Management Summit London 2006

13-14 July, London, UK

Produced by :

In Association with :


Aaron zornes founder chief research officer the cdi institute the cdi institute com a k a tcdii com

CUSTOMER DATA INTEGRATION

Trends & Strategies for 2006-07

Aaron Zornes

Founder & Chief Research Officer

The CDI Institute

The-CDI-Institute.com a.k.a. tcdii.com


How many analysts does it take to change a light bulb

How Many Analysts Does It Take To Change a Light Bulb?

  • Gartner analyst

    • “We feel that a new bulb is necessary & that the bulb will be replaced (0.99 probability) — we have a new service that addresses that issue”

  • Forrester/Giga analyst

    • “In 5 years, the new illumination technologies will replace what you currently have ... Wait”

  • Ovum/Aberdeen analyst

    • “We’ll write about the old bulb for $25,000”

  • IDC analyst

    • “There are 1,230,245 burnt-out bulbs in the world — for $2,500, we will tell you where they are ...”

  • Big Three consultant

    • “It’s time to re-engineer the sun ...”

© 2006 The CDI Institute The-CDI-Institute.com


About the cdi institute

About the CDI Institute

Founded in 2004

Focused on CDI-MDM business drivers & technology challenges

CDI Advisory Council™of fifty G5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects

CDI Business Council™ website access & email support to 3,000+ members

CDI-MDM Road Map & Milestones™ semi-annual strategic planning assumptions

CDI Alert™bi-weekly newsletter

CDI Market Pulse™ monthly surveys

Budgets, success/failure rates, mindshare of 250+ major in-flight CDI-MDM projects

Examples: evaluation process for CDI SI, CDI ROI in Telco M&A, …

CDI Fast Track™

One-day public & onsite workshop

Fee-based & rotating quarterly through major North American, European, & Asia-Pacific metro areas

Semi-annual CDI-MDM SUMMIT™

About Aaron Zornes

Most quoted industry analyst authority on topics of CDI & MDM

Founder & Chief Research Officer of the CDI Institute

Conference chairman for DM Review’s CDI-MDM SUMMIT conference series

Founded & ran META Group’s largest research practice for 14 years

M.S. in Management Information Systems from University of Arizona

“Independent, Authoritative, & Relevant”

© 2006 The CDI Institute The-CDI-Institute.com


Cdi institute advisory council

CDI Institute Advisory Council

Representative

Members

  • Advisor agrees to provide Institute’s consultants with advice & insight regarding the use of CDI software & related CDI business processes at Advisor’s convenience

  • Advisor agrees to participate in at least one fifteen (15) minute survey teleconference call every sixty (60) days

  • Optionally, Advisor may respond to the bi-monthly survey request via email or Internet-based survey fulfilment

  • Results of such CDI market research surveys shall be aggregated by the Institute & made available to all Advisory Council members

  • In no case, shall any Advisor-specific survey information be made available to other parties unless Advisor has specifically agreed to the release of such information in writing

  • Bell Canada

  • Canadian Tyre

  • Caterpillar

  • Citizens Communications

  • COUNTRY Financials

  • Educational Testing Services

  • GE Healthcare

  • Honeywell

  • Intuit

  • MCI

  • McKesson

  • Microsoft

  • Motorola

  • National Australia Bank

  • Nationwide Insurance

  • Novartis

  • Roche Labs

  • Rogers Communications

  • Scholastic

  • SunTrust

  • Westpac

  • Weyerhaeuser

Fifty organizations who receive unlimited CDI advice to key individuals, e.g. CTOs, CIOs, & CDI project leads

© 2006 The CDI Institute The-CDI-Institute.com


Recent cdi alerts

Recent CDI Alerts

  • Oracle Data Hubs: “The Emperor Has No Clothes?”

    • Subtitle: Considering Oracle’s Data Hubs? Then Consider This …

  • SAP Master Data Management “Extreme Make-Over”

    • Subtitle: SAP MDM went under the architect’s knife – Is the outcome attractive to Global 2000 enterprises?

  • IBM/DWL Customer Center: Strategy-Driven vs. Urgency-Driven M&A

    • Subtitle: Who’s Minding the Metadata? (Does the “new” IBM software business have a coherent strategy to integrate its treasure of acquisitions?)

  • Siebel CDI Assets to Help Oracle Battle IBM & SAP

    • Subtitle: How Many More Software Firms Must Oracle Buy to Catch Up with SAP?

“Independent, Authoritative, & Relevant”

© 2006 The CDI Institute The-CDI-Institute.com


Customer data integration cdi definition

Customer Data Integration (CDI) Definition

Aggregation

Customer

Master

Files/DBs

CDI

Extract

Enterprise

Transform

Application

Load

Integration

(ETL)

(EAI)

Replication

Synchronization

  • Comprised of solutions(processes & technologies)

    • Recognizing a customer & its relationships at any touch-point

    • Aggregating, managing & harmonizing accurate, up-to-date knowledge about that customer

    • Delivering it in an actionable form “just in time” to touch-points

Historical CDI Solutions

CDI is mandatory first step for most organizations on journey to enterprise master data management (MDM)

© 2006 The CDI Institute The-CDI-Institute.com


Cdi mdm milestones

CDI-MDM Milestones

Market maturation

Market momentum

Market consolidation

Budgets/skills

Data governance

MDM convergence

Architecture

Data models

Customer identification

Master data delivery

Analytics

Business services/workflow

Roadmap of key areas to invest in CDI – i.e., “What are the key

differentiators of a next-generation CDI solution in 2006-07?”

“CDI/MDM Milestones” are strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn

of the emerging CDI-MDM vendor landscape

© 2006 The CDI Institute The-CDI-Institute.com


Market maturation

Market Maturation

  • During 2005-06, the CDI-MDM market shifted gears from “early adopter” to “mainstream” as 95%+ of financial services, communications services, and pharmaceutical/life sciences enterprises actively look to replace homegrown CDI solutions

  • During 2006-07, CDI solutions will come to market for the midsize enterprise from Microsoft and Oracle plus the Data Quality vendors (Pitney Bowes, SAS/DataFlux, Trillium)

  • By 2008, the market for CDI-MDM solutions (software and services) will exceed US$1B

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Cdi market to reach 1b by 2008

CDI Market to Reach $1B by 2008

Source: The CDI Institute’s 1Q2005 MarketPulse™ survey of fifty large-scale CDI initiatives

Systems integrators (Accenture, Alliance, BearingPoint, Cognizant, CSC, Lockheed Grumman, IBM BCS, Infosys, Unisys)

Mega vendor CDI (Oracle Customer Data Hub, SAP Master Data Management, Siebel Universal Customer Master)

Best-of-breed CDI (DWL Customer, Initiate Systems Identity Hub, Siperian Reference Manager)

ETL (extract-transform-load vendors IBM/Ascential, Informatica, SAS)

EAI (enterprise application integration vendors BEA, IBM, Tibco)

NOTE 1 = Data service providers (Acxiom, Dun & Bradstreet, Experian, Harte-Hanks, IMS International) revenues not factored in.

NOTE 2 = Data quality vendor (Ascential, FirstLogic, Innovative Systems, Pitney Bowes/Group 1, SAS/DataFlux, Trillium) revenues not factored in.

© 2006 The CDI Institute The-CDI-Institute.com


Market momentum

Market Momentum

  • During 2006-07, CDI software solutions such as I2, IBM/DWL, ORCL/SEBL, & SAP will monopolize the majority market share; concurrently, a niche market will arise for hosted CDI-MDM solutions led by early to market vendors Alliance Consulting and Unisys

  • Through 2007-8, both mega & niche CDI-MDM vendors will aggrandize the traditional master customer DB business of data service providers such as ACXM, DNB, & GUS/Experian

  • By 2008-09, every major application & database vendor will provide either native or OEMed CDI-MDM capability – including DOX, MSFT, CRM, & NCR/Teradata

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Cdi momentum

CDI Momentum

It’s All About

“Relationships”

Panoramic

Customer

View

360 º

Customer

View

Customer-

Centric

View

CDI

Master

Customer

Info File

Universal

Customer

View

Customer

System

of Record

  • March 2005 – CDI Institute’s MarketPulse™ forecasts market for CDI S/W & services to reach US$1 billion by 2008

  • April 2005 – Gartner recognized importance of CDI with its first Magic Quadrant™ for CDI Hubs

  • June 2005 – Forrester released their Wave™ report on CDI

  • October 2005 – IDC’s W/W Market Forecast stated MDM market will grow to US$10.4 billion by 2009

  • January 2006 – DM Review & CDI Institute along with 25 leading vendors launched CDI-MDM SUMMIT 2006 as largest expo dedicated to CDI, MDM, & DG

55% of G2000 are actively evaluating an enterprise CDI solution; 42% “in production” with custom-built solution, & 3% “in production” with vendor-based solution

© 2006 The CDI Institute The-CDI-Institute.com


Market consolidation diversification

Market Consolidation & Diversification

  • During 2006-07, mega IT vendors (IBM, Oracle, SAP) will continue marketing gyrations in moving to an enterprise MDM strategy

  • IBM (ASCL/CRSW/DWL/SRD/Trigo) & ORCL (iFlex/JDE/PSFT/SEBL) will wrestle with many of the same architectural/BPM/metadata/platform issues that forced SAP to withdraw its product from the market (SAP MDM/A2i xCat)

  • While mega IT vendors IBM, ORCL, & SAP will dominate in the CDI/MDM hub market, niche/best-of-breed vendors (I2, Initiate Systems, Kalido, Siperian) will thrive in specific industries & horizontal/corporate applications

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Cdi mdm genealogy

CDI/MDM Genealogy

Data service providers (Acxiom, Experian) fail at software makeovers into CDI

Oracle, SAP, Siebel introduce 3rd gen/hybrid CDI

1st gen CDI solutions arrive (IBM CIIS, Hogan CIF)

2nd gen CDI vendors merge to form 3rd gen CDI solutions (Initiate/Journee, Siperian/Delos)

Mega vendors digest acquisitions

Nascent EII vendors arrive & flop

Pre-2001

2002

2003

2004

2005

2006

CDI early adopters drive requirements (Fin Svcs, High Tech Mfg, Pharma, Telco)

ETL vendors add modest CDI extension & avow CDI capabilities

App vendors launch EAI infrastructure (SAP NetWeaver, Siebel UAN)

‘Process Hubs’ trounce‘Data Hubs’; 4th gen ‘Full Spectrum’ hubs support structured & unstructured

Mega app vendors roll out CDI (Oracle OCO, SAP MDM, Siebel UCM)

‘EIM’ as yet another TLA

3rd generation CDI solutions are based on service-oriented architecture (SOA) to hybridize aggregation, replication & synchronization to provide enterprise-wide CDI infrastructure

© 2006 The CDI Institute The-CDI-Institute.com


Budgets skills

Budgets & Skills

  • During 2006-07, the typical Global 2000 size enterprise will budget/spend US$1.2M for CDI/MDM software solutions, with an additional US$4M for systems integration services

  • During 2007-08, CDI/MDM skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & other individuals with strong affinity for data governance will outstrip the market for individuals with actual experience; concurrently, systems integrators will fill the void in their classic style by baiting & switching senior veterans for junior rookies

  • By 2008-09, the market will have stabilized as enterprises react by training & protecting their own data governance staff with specific software product expertise

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Career tracks

Career Tracks

Product Neutral

Enterprise

Data Architect,

Enterprise Data

Modeler

Centres of Excellence,

Data Steward,

CDI Project Lead

Product-Specific

  • Scarcity of “hands on” CDI experience exists

  • By 1H2006, 1,500+ product-specific consultants albeit with little “real world” experience with mainstay CDI solutions

  • Current shortage lends itself to same scenario of 5-10 years ago with SAP’s ABAP 4GL– i.e., inflated prices & resumes with many junior systems integrator (SI) staff spinning up to speed at client’s expense (a.k.a. “Androids”)

Market for CDI- & MDM-related expertise will create major demand for corporate CDI positions during next 3-5 years

© 2006 The CDI Institute The-CDI-Institute.com


Data governance

Data Governance

  • During 2006-07, data governance will become a mainstay of large scale CDI-MDM projects as RFPs increasingly mandate that component

  • Through 2007-08, major systems integrators & CDI/MDM boutiques will focus on productizing their data governance methodologies

  • By 2008-09, data stewards will be a common position both in IT organizations & businesses as enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Working definitions

Working Definitions

Customer Data Integration (CDI)

Master Data Management (MDM)

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 actionable form to touch-points.

The authoritative, reliable foundation for data used across many applications & constituencies with the goal to provide a single view of the truth no matter where it lies.

Data Governance (DG)

Formal orchestration of people, process, & technology to enable an organization to leverage data as an enterprise asset.

“84% of businesses surveyed believe that poor DG can cause: limited user acceptance, lower productivity, reduced business decision accuracy, & higher TCO

© 2006 The CDI Institute The-CDI-Institute.com


Think mdm act cdi

“Think MDM, Act CDI”

  • Data Governance

    • “Data Governance” is usually a generic term for an enterprise-wide data management initiative to manage how organizations permit & govern appropriate access to master data

    • This includes measuring operational risk & mitigating security exposures associated with access to data

    • For many companies, DG is part of an overall IT governance strategy & will cover all aspects of enterprise data

    • While much would be considered “customer data”, some is clearly not – e.g., product data & inventory data

    • “Customer Data Governance” is usually considered a subset of the overall Data Governance strategy for a company

  • Data Stewardship

    • Objective is to synchronize data collection processes, reduce data redundancy, & increase data accessibility, availability, & flexibility in a systematic manner

CDI projects will focus on “customer data governance” &

not necessarily all DG for an enterprise – if a robust IT governance or general DG strategy is in place, it will be easier to be successful at CDG

© 2006 The CDI Institute The-CDI-Institute.com


Why data governance why now

Why Data Governance? Why Now?

  • Businesses have been governing data for 20+ years, however, only a rare few are doing it well today

  • Many companies historically assigned DG to a data management group whose job is to integrate & manage data

  • Contemporary DG challenges are far greater

    • Break down functional stovepipes

    • Integrate processes across the enterprise – including corporate technology, all LOBs, functional areas & geographic regions

    • Engage all levels of management

Based on recognition of issues at hand, an improving economy, & increasing regulatory requirements, businesses are now recognizing the opportunity to take a more strategic view of data governance

© 2006 The CDI Institute The-CDI-Institute.com


Why data governance why now cont d

Why Data Governance? Why Now? – cont’d

  • Once you know what data is worth, you need to calculate probability for risk in a business processes

  • When you understand value of data & probability of risk, you can evaluate how much to spend to protect it, manage it, and invest in adequate controls

  • This is basis of modern underwriting – assets, risk, controls

  • Doing this systemically requires a combination of organizational structures, business processes, & technology – a “data governance blueprint” for:

    • Data quality

    • Information integration

    • Business intelligence

IT management must work with business leadership to design & refine “future state” business processes associated with data governance commitments

© 2006 The CDI Institute The-CDI-Institute.com


Data governance juggernaut

Data Governance Juggernaut

Data Governance

Becoming“De Rigueur”

Data Governance

Must Become“De Facto”

Data

GovernanceWill Become

“De Jure”

Data Customer Master

Warehouse  Data Integration  Data Management

(Batch) (On-Line) (Just-in-Time)

Enterprise risk management is emerging as a major issue within most financial institutions & is VERY data-centric

© 2006 The CDI Institute The-CDI-Institute.com


Demand for cdi mdm expertise creates major opptys for corp positions next 3 5 yrs

Demand for CDI-MDM Expertise Creates Major Opptys for Corp Positions Next 3-5 Yrs

Data

Quality

Analyst

CDI

Project

Lead

Data

Steward

Enterprise

Architect

Data Warehouse  Customer Data Integration  Master Data Mgmt

  • Data Steward –Domain/business area expert responsible for quality of specific data entities for subset of enterprise customer data model; in large corporations, “data steward program manager” may exist who sets overall process & policy standards to formalize business’s overall data governance policy processes; additionally, “subject matter managers” may further divide responsibilities for metadata & master reference data (topologies, semantics, business metadata repository, etc.).

  • CDI Project Lead –Classical project manager with full lifecycle experience; experience with specific data model & SDK of specific CDI solution desirable; works with central IT group’s enterprise infrastructure team to define & implement business services related to customer data that comprise initial SOA efforts

© 2006 The CDI Institute The-CDI-Institute.com


Technical maturity level

Technical Maturity Level

Source: February 2006 CDI Institute survey of 50 Global 5000 IT organizations

  • BASIC (“anarchy”) – App-centric approach; meets business needs only on project-specific basis

  • FOUNDATIONAL (“IT monarchy”) – Policy-driven standardization on technology & methods; common usage of tools & procedures across projects

  • ADVANCED (“business monarchy”) – Rationalized data with data & metadata actively shared in production across sources

  • DISTINCTIVE (“Federalist”) – SOA (modular components), integrated view of compliance requirements, formalized organization with defined roles & responsibilities, clearly defined metrics, iterative learning cycle

Overall, FSPs are leading the way for non-FSPs

© 2006 The CDI Institute The-CDI-Institute.com


Mdm convergence

MDM Convergence

  • During 2006-07, customer & product data interdependencies will quickly broaden CDI requirements – i.e., from “customer” to “product” to “vendor”

  • During 2007-08, niche vendors will provide multi-hub connectivity (Kalido, Purisma, Siperian, Stratature) via hierarchical management extensions

  • By 2008-09, enterprises without an overall, long-term MDM strategy run the ironic risk of building “MDM silos”

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


The customer product conundrum

The CUSTOMER:PRODUCT Conundrum

CUSTOMER

Pricing

Authorized Products

Bundles

Cross-Reference Hierarchies

Geographical Variants

Regional Variants

PRODUCT

  • JIT, 21st century business models mandate both agility & integration across enterprise to provide higher profitability, reduce operations costs & increase accuracy of regulatory compliance

  • Contemporary supply chains mandate synergetic approach across both customer & product master systems via common business services

  • Key business drivers

    • Increased agility to deliver new product bundles/offers

    • Simplified PLM by automating key business policies to provide effective oversight & compliance

    • Reduced revenue leakage via consistent enforcement of offer policies re: provisioning & billing

SOA mandates “Customer” + “Product” MDM – however, “customer” cannot simply be added as object to PIM products

© 2006 The CDI Institute The-CDI-Institute.com


Architecture

Architecture

  • During 2006-07, Global 5000 enterprises will migrate en masse from custom-built customer data hubs onto commercial CDI-MDM solutions – primarily those of mega vendors IBM, Oracle/Siebel, & SAP

  • Through 2007-08, systems performance will remain problematic as enterprise infrastructure teams hedge between virtual, persisted & composite/hybrid hubs; applying point solutions such as EII middleware will help adjudicate both performance & political stalemates

  • By 2008-09, both market-leading enterprises & CDI-MDM vendors will have completed their transition from client/server to service-oriented architecture (SOA) by migrating from “data hubs” to “process/policy hubs”; concurrently, CDI-MDM requirements will drive vendors into 4th generation, full spectrum hubs (support for structured & unstructured info with extreme scalability)

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Most common cdi topologies

Most Common CDI Topologies

“Composite (Hybrid Hub)” is architectural preference for 40%

© 2006 The CDI Institute The-CDI-Institute.com


Data models

Data Models

  • During 2006-07, mega CDI-MDM vendors (IBM, Oracle/Siebel, SAP) will continue to focus significant resources (R&D & marketing) on “industry content” aspect of data models which will force specialist CDI-MDM vendors to stay “data model lite” via specializations such as B2B hierarchy management & distributed CDI-MDM

  • By 2007-08, sophisticated hierarchy management will become a mainstay feature of all CDI-MDM vendors, yet support for metadata repositories to link mega vendors’ multitude of acquisitions will continue to lag significantly

  • Not until 2008-09, will mega CDI-MDM vendors have rewired software to fully support their strategic application infrastructure (Oracle Fusion, SAP NetWeaver, et al); concurrently, CDI-MDM vendors will migrated from data model-centric architecture to process model centricity

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Master data delivery

Master Data Delivery

  • During 2005-06, EAI / EII / ETL vendors scurried to either add persistence to their products or align themselves with CDI-MDM vendors as a complimentary role by enabling customer data hubs to interweave data from multiple diverse master sources with master data persisted in a central hub

  • Through 2006-07, these vendors will thrive by providing increased throughput and additional repurposing & publishing capabilities to classical CDI-MDM solutions

  • By 2007-08, EAI / EII / ETL middleware will have been fully assimilated into broader CDI-MDM vendor community via M&A

© 2006 The CDI Institute The-CDI-Institute.com

CDI-MDM MILESTONE


Industry specific cdi requirements

Industry-Specific CDI Requirements

  • Financial services providers (FSPs)

  • Communications services providers (CSPs)

  • Life sciences / pharmaceutical

  • Government

  • Healthcare

  • High-technology manufacturing (t.b.d)

  • Manufacturing (discrete, process)

  • Retail (t.b.d)

  • Hospitality (t.b.d)

Early adopters of CDI solutions include: FSPs, CSPs, Pharma & High-Tech Manufacturing

© 2006 The CDI Institute The-CDI-Institute.com


Why are market leading fsps adopting cdi

Why are Market-Leading FSPs Adopting CDI?

  • Optimize customer profitability

  • Increase operational efficiencies

  • Enhance regulatory compliance

  • Improve overall BI

  • Deliver ROI on CRM initiatives

  • Provide “infrastructure rationalization”

  • Facilitate growth-by-M&A

FSPs must transform from customer-hostile, batch business model to give customers actionable 360º view in “near real time”

© 2006 The CDI Institute The-CDI-Institute.com


Banking cdi requirements

Banking CDI Requirements

Facilitate growth-by-M&A

Comply with privacy mandates

Improve compliance – e.g., AML, BXA, CIP 326, OFAC, SOX, …

Increase sales productivity by modeling corporate hierarchies & structures of B2B customers

Improve real-time portfolio view for both wealth management & internal risk management

Increase customer satisfaction (retention/upsell) by streamlining routine customer maintenance

Reduce IT infrastructure costs

Increasingly complex business models (B2B2C) as “electronic storefronts”

Demand for “near real-time” data lineage

Rationalizing complex & dynamic business & individual hierarchies

Hacker-proof customer data protection

High-RAS (reliability, availability, scalability) nature of mission-critical infrastructure

Business Drivers

Technology Challenges

BXA - Bureau of Export Administration

CIP 326 – Customer ID Program of USA PATRIOT Act

OFAC - Office of Foreign Assets Control

Customer view must prevail over product view as higher margin customers dictate common set of products & services via rapid adoption of CDI

© 2006 The CDI Institute The-CDI-Institute.com


Retail banking business objectives

Retail Banking – Business Objectives

  • Provide single view of customer

    • Across all channels

    • Across all products

  • Reduce operational costs

  • Improve cross-selling

  • Improve net credit loss

  • Increase marketing lift

  • Manage privacy centrally

  • Provide operational view for Basel II compliance

  • Provide improved customer service

  • Streamline account opening process

© 2006 The CDI Institute The-CDI-Institute.com


Retail banking technical requirements

Retail Banking – Technical Requirements

  • Proven performance & scalability

  • Service-oriented architecture

  • Ability to handle complex hierarchies

  • Ability to integrate to existing infrastructure

  • Open architecture – J2EE compliant

  • Proven functionality for services layer

  • Existing CIF co-existence & eventual replacement strategy

© 2006 The CDI Institute The-CDI-Institute.com


Retail bank cdi solution architecture

Retail Bank – CDI Solution Architecture

ATM

Web Self- service

VRU

Telemarketing

Call Center

Branch

Kiosk

Personal Banker

Front Office

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Application Server

CDI Hub

Data Integration

EAI

EII

ETL

RDBMS Server

Credit Cards

Wealth Management

Consumer

Deposits

Customer Recognition Vendor

Data Marts

Data Warehouse

Customer

Customer

Customer

Customer

Data Marts

Back Office

© 2006 The CDI Institute The-CDI-Institute.com


Retail banking key drivers

Retail Banking – Key Drivers

  • Improve cross-selling & campaign lift

    • “Operationalize” marketing data

    • Leverage service interactions into sales opptys by following up on current campaigns

  • Regulatory compliance

    • Providing operational view of customer into existing data warehouse for Basel II compliance

    • Ability to store privacy preferences at a true enterprise level

© 2006 The CDI Institute The-CDI-Institute.com


Retail banking business outcomes

Retail Banking – Business Outcomes

  • Ability to act on customer knowledge

  • Improved customer matching for customers with multiple risk-bearing products & improved benefits obtained from risk management

  • Risk scoring improvements – better collections decisions

  • Able to reduce costs based on reducing maintenance costs of legacy CIFs

  • Improved accuracy & completeness of the customer data within CDI hub vs. existing CIFs (96% vs. 85%)

  • Administrative cost reduction

© 2006 The CDI Institute The-CDI-Institute.com


Banking cdi scorecard top 5 business drivers technology challenges

Banking CDI Scorecard:“Top 5” Business Drivers & Technology Challenges

© 2006 The CDI Institute The-CDI-Institute.com


Key business benefits for fsp of product information pipeline

Key Business Benefits for FSP of “Product Information Pipeline”

  • Enhanced client reporting

  • Improved timeliness

  • Improved depth of product information (consultant support, consultant RFI responses, RFPs, fund fact sheets)

  • Enhanced customer servicing via e-channel management

  • Improved revenue generation opportunities

  • Enhanced executive mgmt transparency into risk mgmt (sales pipeline info)

  • Increased efficiency within Global Distribution functions (removing duplicated business processes, & improving speed & accuracy of key activities)

  • Improved business retention rates across global markets, product segments & business channels

PIP is complement of CDI by employing same technologies centered around “product” – much more than CRM is required

© 2006 The CDI Institute The-CDI-Institute.com


Case study major north american bank

Case Study: Major North American Bank

Near term = cross-selling across product lines

Longer term = customer service & retention

Huge diversity of financial product lines

Scalability of complex business model

10M+ retail consumer accounts

3K+ bank branches; 1K+ mortgage ctrs

25K+ internal users

Custom-built CDI not keeping pace with market evolution

Delivered workflow-based employee portal to integrate SFA, DW, BI, customer profitability, & loan pricing/approval applications

Built on existing portal & message bus by incorporating new CDI technologies in R/T customer identification & data reconciliation plus cross-application process integration

Coordinated multi-channel campaign mgmt, channel optimization, & advanced analytics

Business Issues

Technology Solution

Increased cross-sell revenue by US$700M across sales, marketing, & portfolio mgmt — reducing underperforming assets by US$12B

© 2006 The CDI Institute The-CDI-Institute.com


Credit card issuer cdi requirements

Credit Card Issuer CDI Requirements

Aggregation within industry – exacerbated by big commercial banks emulating major monolines

Heavy reliance upon direct mail marketing – & inherent increased fraud risk

Improve compliance – e.g., AML, BXA, CIP 326, OFAC, SOX, …

Support future business objectives – e.g., M&A

Ensure consistent customer service across all channels

Private label cards needing lifestyle event-based differentiation

Reduce IT infrastructure costs

Integration of new & old channels – e.g., collections, fraud, contact centre with kiosk, ATM, IVR & online self-service

Contingency planning for future technologies – e.g., biometrics, smartcards, etc.

Complex hierarchy mgmt – e.g., household-level risk mgmt

Scalability – e.g, ability to integrate new block of customers

Infrastructure costs of integrating new data sources & channels

Business Drivers

Technology Challenges

Challenge is to move to portfolio-level integration despite the politics & technology inertia

© 2006 The CDI Institute The-CDI-Institute.com


Credit card issuer cdi scorecard top 5 business drivers technology challenges

Credit Card Issuer CDI Scorecard: “Top 5” Business Drivers & Technology Challenges

© 2006 The CDI Institute The-CDI-Institute.com


Case study major u s credit card issuer

Case Study: Major U.S. Credit Card Issuer

Reduce net credit loss

Increase customer base

Support M&A-based growth strategy

Centralize privacy preferences management

Reduce contact centre costs by providing “once and done” customer data management

Ensure consistent customer service across all channels

Deployed hybrid CDI hub — vs. front-end solution, data warehouse, or customer info file

Integrated marketing campaign system to increase responses & increase customer base

Managed privacy contact preferences in single location & provided to all channels — e.g., telemarketing, direct marketing, call centre, etc.

Invested in strategic “SOA architecture” leveraged across entire enterprise

Business Issues

Technology Solution

Achieved competitive advantage in operational excellence over nearest competitors — “M&A ready”

© 2006 The CDI Institute The-CDI-Institute.com


Insurance cdi requirements

Insurance CDI Requirements

Facilitate growth-by-M&A

Comply with privacy mandates

Increase deep understanding of data quality & reliability issues related to claims & fraud

Embrace frequent regulation & de-regulation cycles – e.g., HIPAA, NPI

Accommodate growing technical patchwork of proposed legislation – e.g., NHIN

Reduce IT infrastructure costs

Expand use of incumbent application systems (e.g., CRM) via enterprise customer identity service (universal key) across all applications

Increase flexibility to add new channels, data sources, touch points, etc. via SOA

High-RAS (reliability, availability, scalability) nature of mission-critical infrastructure

Hacker-proof customer data protection

Business Drivers

Technology Challenges

HIPAA - Health Insurance Portability & Accountability Act

NHIN - National Health Identification Number

NPI - National Provider Identifier

Insurers need to move to “high touch” service model wherein near real-time channel integration is critical

© 2006 The CDI Institute The-CDI-Institute.com


Insurance cdi scorecard top 5 business drivers technology challenges

Insurance CDI Scorecard: “Top 5” Business Drivers & Technology Challenges

© 2006 The CDI Institute The-CDI-Institute.com


Case study major north american insurer

Case Study: Major North American Insurer

Increase quality of service via 360° customer view to support end-to-end, seamless business processes for call centres, claims processing, etc.

Scalability of complex business model

5M+ policies

2M+ “customers”

3.5K+ agents

10K+ internal users

Custom-built CDI not keeping pace with market evolution

Selected “Buy” over “Build” of CIS extensions

High performance identity management

Extensible data model

Support for complex hierarchies

Data steward capabilities

Faster time to market

Lowest total cost of ownership

Pioneered “chief customer officer” & “data steward” programs to drive design of core processes to focus on cross-enterprise customer view

Business Issues

Technology Solution

“Go live” 3X faster & 4X cheaper for “Buy vs. Build”(US$50M over 5 years)

© 2006 The CDI Institute The-CDI-Institute.com


Top 5 vendors mindshare within financial svcs

Top 5 Vendors’ Mindshare within Financial Svcs

© 2006 The CDI Institute The-CDI-Institute.com


Communications services provider requirements

Communications Services Provider Requirements

Consolidation (M&A)

Deregulation/re-regulation

Increasingly "portable" customers

Self-directed service to drive down customer care costs

Real-time marketing & integrated campaign management using predictive analytics

Fraud detection

Bill presentation

Ability to blend channels

Complex supply chains

Onerous regulatory mandates

Extreme scalability in call centres, provisioning, etc.

Flood of data due to ‘data services’

“Plan anywhere, build anywhere” investment strategies in new technologies that enable quicker new product introduction (NPI) at lower cost without sacrificing quality

Business Drivers

Technology Challenges

Telco evolution will be radical as intense competition in wireless, LD, Internet, & local service commoditizes products & slashes profits – not to mention VoIP

© 2006 The CDI Institute The-CDI-Institute.com


Top 5 cdi vendors mindshare within telco

Top 5 CDI Vendors’ Mindshare within Telco

© 2006 The CDI Institute The-CDI-Institute.com


Survey overview roi strategies for csp s m a

Survey Overview: “ROI Strategies for CSP’s M&A”

  • 10+ North American CSPs – e.g., cable carriers moving into telephony, CLECs, ILECs, LD carriers, wireless, & conglomerates

    • 100% with > 1M subscribers

    • 50% > 5M subscribers

  • >75% are investing in CDI in support of stated corporate target to reduce “level of infrastructure investment” with 49% stating CDI to be either important or critical to this outcome

  • 30% had COTS software for CDI installed with the remainder actively evaluating an enterprise-wide solution

COTS = commercial, off-the-shelf software

M&A demands comprehensive & integrated profiles

© 2006 The CDI Institute The-CDI-Institute.com


Produced by

CDI MarketPulse™ Findings: “Corporate Issues”How do you RANK your company's DESIRED STRATEGIC RESULTS resulting from M&A?

For strategic M&A, “Market dominance” cited twice as often as next highest ranked “Increased profitability”, “Increased operational efficiencies” & “Corporate alignment”

Source: CDI Institute 1H2005 MarketPulse™ Survey

of 12 North American CSP’s IT Organizations

© 2006 The CDI Institute The-CDI-Institute.com


Produced by

CDI MarketPulse™ Findings: “Marketing Issues”How do you RANK your company's DESIRED “MARKETING” OUTCOMES resulting from M&A?

“Enable product bundling” 50% more important as “Systematize analytics to determine customer, segment, bundle, & product line profitability” – yet 60% expect CDI solution to integrate with BI or enterprise DW during first year

Source: CDI Institute 1H2005 MarketPulse™ Survey

of 12 North American CSP’s IT Organizations

© 2006 The CDI Institute The-CDI-Institute.com


Produced by

CDI MarketPulse™ Findings: “Technology Issues”How do you RANK your company's MAJOR TECHNOLOGY CHALLENGES resulting from M&A?

“Legacy application integration (CRIS, LEIS, LEIM, USOCs)” rated at least 33% more important than “Business process/workflow integration” & “Database/data model integration”

Source: CDI Institute 1H2005 MarketPulse™ Survey

of 12 North American CSP’s IT Organizations

© 2006 The CDI Institute The-CDI-Institute.com


Cdi marketpulse survey findings

CDI MarketPulse™ Survey Findings

  • CSPs must acknowledge state-of-IT-affairs resulting from continuous M&A

  • CDI provides proven means to insure ROI of M&A – especially in CSP industry with historically fragmented customer & product master DBs

  • Market-leading CSPs are planning to apply CDI as disruptive technology to “outmarket & outservice the competition”

  • “Build vs. buy” has become “buy mega vendor” vs. “buy best of breed” as ITOs are mandated to move away from home-grown CDI solutions to COTS solution

  • During 2005-06, CSPs will focus on deploying data-centric CDI infrastructure to provide unified customer view across multiple channels & LOBs

  • During 2006-08, CSPs will move to process-centric CDI infrastructure to deliver increasingly accurate, complex & just-in-time unified customer views to enable bundle mktg & self-directed customer care

CSP evolution will be radical as intense competition in wireless, LD, Internet, & local service commoditizes products & slashes profits – not to mention VoIP

© 2006 The CDI Institute The-CDI-Institute.com


Pharma life sciences business imperatives

Pharma/Life Sciences Business Imperatives

360° View of Customer

  • Improve productivity of pharma sales reps

  • Coordinate sales & operations planning via common infrastructure & goals/metrics

  • Increase customer/physician acquisition, retention & profitability

  • Reduce info management overload/costs

  • Prepare for uncertain future

Recent survey indicates physicians need info to make more informed buying decisions – but only about 1/3 consider pharma sales reps impt sources; 1/3 found sales visits helpful, addt’l 1/3 want more current comparative or clinical data/analyses relevant to practices, plus objective info on usage & side effects

© 2006 The CDI Institute The-CDI-Institute.com


Life sciences pharma technology challenges

Life Sciences / Pharma Technology Challenges

  • CRM alone is not enough

  • DW+CRM is not enough

  • Importance of flexible workflow

  • Dis-intermediated data sources

    • Data service providers (IMS, NDC, AMA - cleansing, matching issues)

    • Industry standard identifiers (IMS, DEA, state licensing) not always accurate

  • Where does content mgmt system end & where does the structured data mgmt start?

Market-leading Pharmas must unify physician/customer information from multiple systems & business units in a robust data model specific to pharmaceutical industry

© 2006 The CDI Institute The-CDI-Institute.com


Improve productivity of pharma sales reps

Improve Productivity Of Pharma Sales Reps

  • Enable sales reps to improve sales effectiveness by leveraging client sales histories & profile info from diverse sources

  • Automatically capture physician info during sales meetings

  • Spend more time in the field – serving physicians – rather than in the office recording & analyzing meeting results

  • Enable physicians to make more informed purchasing decisions by offering customized product info, evidence gathered thru clinical research, & comparative analyses of medicines

  • Ensure more effective territory mgmt to yield more successfully market & sell products thru efficient call handling & better cross-channel communication & coordination

Making sales reps more productive, requires a complete picture of the physician profile, mktg activities, etc. – database-centric quasi batch CDI is first step

© 2006 The CDI Institute The-CDI-Institute.com


Coordinate sales operations planning via common infrastructure goals metrics

Coordinate Sales & Operations Planning Via Common Infrastructure & Goals/Metrics

  • Monitor real-time performance of sales force to quickly make strategic & tactical adjustments necessary to meet sales goals & provide adequate product inventory

  • Employ RFID technology & the EPC Network to improve info mgmt in pharma supply chain

  • Make M&A work via vital agglomeration of customer & supplier master data

  • Integrate IT infrastructure of diverse acquisitions

  • Leverage info, insights & relationships to expedite & enhance product intro & adoption

  • Overcome cultural obstacles to creating better collaboration between Clinical & Marketing organizations

  • Insure supply chain integrity protection for producer & patient (& everyone in between)

  • Protect the pharma enterprise involved in ever more complicated contracts with external partners

CDI needed that not only provides excellent support for sales reps, but also makes customer info available to marketing, R&D & supply chain functions

© 2006 The CDI Institute The-CDI-Institute.com


Increase customer physician acquisition retention profitability via closed loop mktg

Increase Customer/Physician Acquisition, Retention & Profitability via Closed Loop Mktg

  • Enable creation of segment-specific drug detailing aids

  • Deliver custom detailing to physicians thru field sales channel

  • Collect responses to product messages at point of customer interaction

  • Analyse responses to further refine marketing campaigns based on real-time feedback

  • Design & manage sophisticated campaigns, incl medical events & mailings

Closed-loop marketing capabilities align mktg & sales business processes, enabling companies to target & segment customers, design & execute mktg campaigns, & analyse customers' responses to product messages

© 2006 The CDI Institute The-CDI-Institute.com


Reduce information mgmt overload costs

Reduce Information Mgmt Overload/Costs

Pharma Info Overload

  • Manage exploding amount of data produced in every part of pharma enterprise

    • CAPA, RFID & ECM data

    • 21 CFR Part 11

    • HIPAA

  • Share & store discovery & development data in environment with onerous legal requirements for data retention & mgmt

  • Generate structured analysis out of unstructured content

  • Manage outsourced clinical trials

    • Complexity is that some tasks but not all are outsourced for given trial

Both physician & consumer data are intricately related as part of information asset programs which must keep regulatory risk & validation costs to a minimum

© 2006 The CDI Institute The-CDI-Institute.com


Prepare for uncertain future

Prepare for Uncertain Future

  • Leverage digital packaging (RFID, ECM) for compliance monitoring & supply chain optimization

  • Optimize consumer self-service

    • Apply advanced technologies to expedite info sharing via guided search, co-browsing, etc.

      • Helps consumers benefit from full range of info about health issue they’re researching

      • Enables pharma to deliver targeted info to customers at precise moment needed or requested

    • Examples: medical education; disease mgmt; patient compliance; product awareness

  • Drive & manage regulatory compliance across diverse legal domains

  • Prepare for increased outsourcing of both commoditized & specialized functions

  • Exploit strategic opportunities created by bioinformatics/ nanotechnology

  • Leverage re-importation trends

CDI growth + Pharma growth = CDI 2

© 2006 The CDI Institute The-CDI-Institute.com


Legacy pharma info supply chain

Legacy Pharma “Info Supply Chain”

SMG

SAP

Contracting

Sales

Targets

Some sources flow

to ODS & DW

AMA

DEA

STL

ODS

CARS

Some sources are

not integrated

OSP

IMS

Events

Siebel

Call

Centre

Web

DW

Dendrite

Some sources flow

straight to the DW

Wholesaler

Fed Govt

Front Office

ODS = operational data store

DW = data warehouse

CARS = xxxx

“Treading water …”

Back Office

External Source

© 2006 The CDI Institute The-CDI-Institute.com


Contemporary pharma info supply chain

Contemporary Pharma “Info Supply Chain”

HIN

SMG

SAP

Contracting

Sales

Targets

AMA

DEA

STL

CARS

CDI

Registry/

Hub

OSP

IMS

Events

Siebel

All *reference* data

flows through CDI Registry/Hub

Active

Data

Warehouse

Call Ctr

Web

Dendrite

Wholesaler

Fed Govt

Front Office

“Future-proofed …”

Back Office

External Source

© 2006 The CDI Institute The-CDI-Institute.com


Top 5 mindshare within lifesci pharma

Top 5 Mindshare within LifeSci/Pharma

© 2006 The CDI Institute The-CDI-Institute.com


Government cdi requirements

Government CDI Requirements

Integrated

Analytics

  • Self-service to drive down customer service costs

  • Integration of transactional, unstructured, geospatial, & demographic data to optimize public services (& national security)

  • Imperative placed on most government agencies to collaborate & share info

  • Newly-created enhanced knowledge repositories, tools, & processes critically needed for meeting new public policy requirements

  • Need to positively ID & track individuals across languages & cultures

Public

Data

PrivateData

CDI

Derivative

Data

Government entities must apply citizen data integration best practices from private industry – while using extreme caution concerning privacy & security

© 2006 The CDI Institute The-CDI-Institute.com


Mission critical citizen data integration cdi

Mission-CriticalCitizen Data Integration (CDI)

Key technologies

Anonymous entity resolution (name classifier & hunter)

Business intelligence (perpetual analytics)

Dynamic scoring

Link analysis (° of separation)

Grid scalability

Data mining

Text mining

Real-time report streaming

Voice/text analysis

Key vendors

Initiate Systems

Language Analysis Systems

MetaMatrix

Salford Systems

SAS

SPSS

Superstructure

Systems Research & Development

The Distillery

Additional challenges for gov’t include: scalability (scale, # & heterogeneity of DBs), “very large scale” turf battles, lack of national ID in US, supra-politics

© 2006 The CDI Institute The-CDI-Institute.com


Regulatory juggernaut u s initiatives

Regulatory Juggernaut & U.S. Initiatives

Klinger-Cohen Act

Office of Foreign Assets Control (OFAC)

Bureau of Export Administration (BXA) lists of sanctioned governments, organizations, individuals

USA PATRIOT Act

In-Q-Tel venture capital fund

Digital collection system 1000 (FBI's “Carnivore”)

CAPWIN project for the metro District of Columbia region emergency response system

Terrorist Threat Integration Centre

During 2004-05, government will be stressed to analyse citizens’ behaviours to support national security initiatives – & will increasingly turn to commercial IT sector for “outside the box” thinking & best practices

© 2006 The CDI Institute The-CDI-Institute.com


Top 5 cdi vendor s mindshare within public sector

Top 5 CDI Vendor’s Mindshare within Public Sector

© 2006 The CDI Institute The-CDI-Institute.com


Why are healthcare providers payers adopting cdi

Why are Healthcare Providers/Payers Adopting CDI?

“Most other economic sectors have used IT to become integrated & more efficient. Healthcare, too, can be transformed.”

Leonard D. Schaeffer, Chairman & CEO

WellPoint Health Networks

Keynote Address at 2004 Health Information Technology Summit

  • Optimize customer profitability

  • Increase operational efficiencies

  • Enhance regulatory compliance

  • Improve overall BI

  • Deliver ROI on CRM initiatives

  • Provide “infrastructure rationalization”

  • Facilitate growth-by-M&A

Clearly, healthcare payers don’t know enough about their “customers” — physicians, members, & employers – i.e., healthcare payers have not been pushed on customer service issues because they historically were near-monopoly in their geographies

© 2006 The CDI Institute The-CDI-Institute.com


Healthcare payer provider cdi requirements

Healthcare Payer/Provider CDI Requirements

Ongoing consolidation straining capacity of batch-centric processes

Corporate boards & investors reluctant to provide capital for major up-front investments

Frequent regulation & de-regulation cycles – e.g., HIPAA & NPI, NHIN

Shorter economic ”product” lifecycles – e.g., FSAs

Increased competition -- e.g., offshore Rx fulfillment, NFPs becoming “for profit”

Morphing member base demographics – aging “baby boomer bubble”, “Gen X”, etc.

Ever increasing QoS expectations

Need to react intelligently & instantly to changing “customer” information such as claims processing & medical mgmt

Requirement for deep understanding of data quality & reliability issues as it relates to eligibility, claims, & fraud

Necessity for a enterprise data model across disparate sources & applications to support complexity of healthcare business model

Business Drivers

Technology Challenges

HIPAA - Health Insurance Portability & Accountability Act

NPI – national provider identifier

NHIN - national health identification number

Healthcare master customer data must be the most accurate, up-to-the-minute source of customer information & must feed downstream systems (e.g., claims processing) as well as external vendors.

© 2006 The CDI Institute The-CDI-Institute.com


Healthcare payer provider cdi scorecard top 3 business drivers

Healthcare Payer/Provider CDI Scorecard:“Top 3” Business Drivers

© 2006 The CDI Institute The-CDI-Institute.com


Healthcare payer provider cdi scorecard top 3 technology challenges

Healthcare Payer/Provider CDI Scorecard:“Top 3” Technology Challenges

© 2006 The CDI Institute The-CDI-Institute.com


Hcp cdi implementation characteristics

HCP CDI Implementation Characteristics

© 2006 The CDI Institute The-CDI-Institute.com


Top 10 cdi evaluation criteria

“Top 10” CDI Evaluation Criteria

  • Customer data model

  • Business services

  • Identity management

  • Data management

  • Architecture

  • Infrastructure

  • Connectivity

  • Analytics

  • Developer productivity

  • Vendor integrity

Infrastructure fracas will escalate as mega app vendors rush to dominate business services/processes & data models as high ground

© 2006 The CDI Institute The-CDI-Institute.com


1 criteria customer data model

#1 Criteria = Customer Data Model

  • Multi-party model to support complex roles & relationships

    • Demographic profile (name, address, phone number, marital status, etc.)

    • Roles & relationships between parties (including company hierarchies)

    • Additional related entities (entitlements, products, preferences)

    • Data heritage, change history & survivorship

    • Regulatory & privacy rules

  • Industry-specific (vertical) extensions

  • Ability to import industry standard or custom-built data models – e.g., IBM IAA, OASIS CIQ, Siebel CIF, Hogan CIS

Depth & breadth of data model – plus ability to adapt statically & on-the-fly –provide a solid CDI foundation

© 2006 The CDI Institute The-CDI-Institute.com


2 criteria business services

#2 Criteria = Business Services

  • External workflow engine & web services transaction support – e.g.,business process management (BPM)

  • Rules engine

  • End-to-end support with operational applications

  • Business semantic-driven horizontal customer processes – e.g. add party, change address, retire customers

  • “Best practice” templates for both horizontal & vertical customer – e.g.,related processes

  • Compatibility with existing infrastructure investments – e.g., Tibco, MQ-Series, etc.

  • Standards – e.g., OMG’s Model-Driven Architecture (MDA), WS-Coordination, WS-Transaction, & BPEL

Functionality & extensibility of business services are critical evaluation criteria for CDI solutions – longer term “process hubs” are the goal

© 2006 The CDI Institute The-CDI-Institute.com


3 criteria identity management

#3 Criteria = Identity Management

  • Very high performance matching/aggregation/search

  • Ability to generate or incorporate “universal” master keys

  • Cross-reference management – e.g., 1:M support, enforcement of cross-referencing

  • Support for all identity types – e.g., individual, household, organization

  • Change detection and event mgmt – e.g., propagation & validation, in-doubt resolution

  • Support for privacy regulations – e.g., SB-168 (remediation of SSN off of any public document

  • Non-obvious/intrusive entity resolution

Smart matching plus effective human intervention – & automated actions – yield better identity mgmt; the bigger & more distributed the company, the more complicated the hierarchy mgmt problem

© 2006 The CDI Institute The-CDI-Institute.com


3 5 criteria hierarchy management

#3.5 Criteria = Hierarchy Management

  • Recognizing, investigating and maintaining complex business relationships by identifying associated individuals within the context of their corporate structure or hierarchy

  • Navigating complex hierarchies from individual to a full hierarchy view

  • Classifying current business customer relationships according to a hierarchy maintained by externally trusted sources of business information

  • Searching, retrieving, viewing and modifying hierarchical relationships and presenting this information to external users and applications

New organizational hierarchy mgmt capabilities help solve this global account mgmt problem by providing the most accurate, scalable & easily deployed solution for enterprises that need to understand the true & total value of each customer relationship

© 2006 The CDI Institute The-CDI-Institute.com


4 criteria data management

#4 Criteria = Data Management

  • Consolidation & survivorship rules (intelligent merge/unmerge)

  • Application- & role-level authorization

  • End-to-end data mgmt processes to enforce data quality

  • Data cleansing

    • Address cleansing & standardization

    • Pre-built integration to leading DQ tools

    • Closed loop-DQ

    • Data profiling

  • Central enforcement & tracking of DQ

  • Integration with Web-enabled aggregator data

  • Complex, long running transaction

  • Support for multiple master data types – e.g., reference, transactions

  • Comprehensive set of customer attributes for complete profile

  • History & audit trails

Goal is to create end-to-end data mgmt processes that may be invoked by other major customer facing subsystems in addition to CRM package

© 2006 The CDI Institute The-CDI-Institute.com


5 criteria architecture

#5 Criteria = Architecture

  • Multi-modality architectures

    • Virtual/registry

    • Persistence

    • Confederation

  • Multi-modal security

    • Profile access control

    • Integration with security of DB, CRM & ERP

    • Role-based user rights mgmt

  • Compliance with regulatory mandates

Given the generational evolution of CDI styles, it is vital to select a CDI solution specifically tuned for a given set of long term CDI requirements

© 2006 The CDI Institute The-CDI-Institute.com


6 criteria infrastructure

#6 Criteria = Infrastructure

  • Scalability – e.g., in-memory or cache DBs; just-in-time aggregation

  • Manageability - e.g., system management & monitoring tools

  • Accessibility – e.g., ability to service wide-range of performance levels

  • Availability – e.g., resilience to various failure situations such as hardware & network outages; continuous data maintenance/ synchronization

As “single point of failure” asset, CDI internal infrastructure has all the requirements of mission-critical applications & must be evaluated so

© 2006 The CDI Institute The-CDI-Institute.com


7 criteria connectivity

#7 Criteria = Connectivity

  • Rigorous multi-model support for all integration modes

    • Real-time

      • Tightly-coupled (COM, Java, CORBA)

      • Loosely-coupled (IBM MQ Series, XML/HTTP, integration servers)

    • Near real-time

      • Loosely-coupled (IBM MQ AMI, XML/HTTP, integration servers)

    • Batch

      • EDI, RosettaNet

  • Pre-packaged integration processes & templates

  • Intelligent routing – e.g., alerts, content-based routing & pub-sub

CDI solutions should provide rigorous multi-model support for all usage/integration modes

© 2006 The CDI Institute The-CDI-Institute.com


8 criteria analytics

#8 Criteria = Analytics

  • Customer segmentation & targeting for cross-sell & up-sell

  • In-line analytics for closed-loop marketing

  • Data profiling to manage “degree of trust” associated with given master customer data source (e.g., completeness, uniqueness, accuracy, & lineage)

No longer are batch-oriented data marts or data warehouses sufficient to provide fundamental analytics necessary to drive customer profitability & value assessments (to enable JIT & differentiated service)

© 2006 The CDI Institute The-CDI-Institute.com


9 criteria developer productivity

#9 Criteria = Developer Productivity

  • Life-cycle approach

  • Systems management tools

    • Change management

    • Software distribution

    • Testing

  • CMM compliance

  • Methodology

CDI ultimate goal is user-driven rules management, yet IT professionals (data stewards, et al) must set up & fine-tune this mission-critical infrastructure

© 2006 The CDI Institute The-CDI-Institute.com


10 criteria vendor integrity

#10 Criteria = Vendor Integrity

  • References vs. proof-of-concepts

  • Professional services – work done by IT vendor to assist in the delivery of solution via methodology, process, skills transfer, etc.

    • Quality

    • Breadth

    • Customization

  • Corporate agility – Ability to respond, change direction, etc. in Responsiveness/Development Processes/Flexibility

  • Personnel – Mix of skills, expertise, experience, etc.

    • Leadership/available skills

    • Expertise/intellectual property

  • Financials – Combo of financial resources, liquidity, etc.

    • Access to capital

    • Profitability

    • Growth rate

CDI solutions have all the requirements of mission-critical applications – vendors must be evaluated so

© 2006 The CDI Institute The-CDI-Institute.com


Minor yet relevant cdi players

Minor, Yet Relevant CDI, Players

Actuate/Nimble Technology (Data Lens, Nimble Integration Suite)

Apama (Apama Engine)

AptSoft (AptSoft Director)

Blackrock Solutions

Business Objects (Data Integrator/Firstlogic)

Celequest (Activity Suite)

Choicepoint

Chordiant (Chordiant 5 Enterprise Platform)

Contivo

Data Foundations (OneData)

DataMirror (Constellar Hub/ Transformation Server)

Dun & Bradstreet

E.Intelligence

eConvergent (eMerge)

Enkata (Enterprise Insight Suite)

GoldenGate Software (Global Data Synchronization)

Group 1 (Sagent Data Flow)

Harte-Hanks (AllLink, Trillium)

InfoUSA/Donnelley Marketing (InfoConnect)

Intelligent Results

MetaTomix (Real-Time Visibility Suite)

Modulant (Contextia™ Connection Server)

Nimaya

Novell (Customer OneView)

Polk

Sedona (Intarsia)

SPL (CorDaptix)

Sun (SeeBeyond Business Integration Suite)

Tibco/ObjectStar/Velosel

Vitria (Businessware)

Xoriant

© 2006 The CDI Institute The-CDI-Institute.com


Competitive field reports

Competitive Field Reports**

  • Data Foundations OneData

  • i2/Teradata MDM

  • IBM Customer Center

  • Initiate Systems Identity Hub

  • Kalido MDM

  • Oracle Customer Data Hub

  • Oracle-Siebel UCM

  • Purisma

  • SAP MDM

  • SAS/DataFlux

  • Siperian MRM

** Persisted data hubs with minimum 5 installs

© 2006 The CDI Institute The-CDI-Institute.com


Field report data foundations onedata

Field Report: Data FoundationsOneData

Strengths

Full lifecycle with DG framework

Integrated customer, product & vendor master data

Data model flexibility

Full SOA

Focus on MDM & reference data

Sophisticated hierarchy mgmt – relationship charts, rules mgmt

Price

Weaknesses

Lack of strong SI channel

Under invested in marketing

Lack of CDI references

© 2006 The CDI Institute The-CDI-Institute.com


Field report i2 teradata master data management

Field Report: i2/Teradata Master Data Management

Strengths

Full lifecycle

Integrated customer, product & vendor master data

Full SOA

Retail & mfg expertise

Data model flexibility

Focus on MDM

Teradata partnership

Weaknesses

Lack of strong SI channel

Under invested in marketing

Lack of CDI references

© 2006 The CDI Institute The-CDI-Institute.com


Field report ibm websphere customer center dwl

Field Report: IBM WebSphere Customer Center (DWL)

Weaknesses

BPM story is weak

Only deterministic matching (until QualityStage integration 1Q2007)

“Forced fit” with WebSphere family (Product Center, Integration Center)

  • Strengths

    • 3rd gen supporting both data & process hub models

    • Financial services expertise

    • Public references

      • BellCanada, CitiBank, COUNTRY, MetLife, Nationwide, SunTrust, UnumProvident

    • Momentum

      • BankAmerica, Carlson, Staples, …

    • Robust web services solution; IBM software stack sycophant

    • IBM BCS channel

© 2006 The CDI Institute The-CDI-Institute.com


Field report initiate systems identity hub

Field Report: Initiate Systems Identity Hub

Weaknesses

Lack of strong SI channel

Under invested in marketing

Persistence story unsubstantiated

Lack of integrated DQ

  • Strengths

    • Fast time-to-value

    • Public references

      • Countrywide, Hyatt, Intuit, Microsoft, US VA, …

    • Healthcare, hospitality & retail pharmacy expertise

    • Probabilistic matching

    • Real-time match scalability

    • Fast growth curve via new business

© 2006 The CDI Institute The-CDI-Institute.com


Field report kalido mdm

FieldReport:Kalido MDM

Strengths

Public references

BP, InBev, Owens Corning, Shell, …

MDM methodology

Reference data support

  • Weaknesses

    • Lack of strong SI channel

    • Under invested in marketing

    • Enterprise DW positioning overlay

© 2006 The CDI Institute The-CDI-Institute.com


Field report oracle customer data hub

Field Report: Oracle Customer Data Hub

Weaknesses

High-end references

Only supports Oracle workflow

Fair-to-meek customer recognition capability

Limited “read” security

Best fit is mid-market and B2B

Lack of industry-specific data models

  • Strengths

    • Mid-market references

      • BBC-TV, Church Pension Group, IHOP, Master Lock, Network Appliances, The CIT Group, …

    • High-tech mfg expertise

    • Executive-level commitment

    • Trading community architecture

    • Integrated DQ & analytics

    • Future integration with Oracle DB

© 2006 The CDI Institute The-CDI-Institute.com


Field report oracle siebel universal customer master

Field Report: Oracle-Siebel Universal Customer Master

Weaknesses

Public references

Only ENI, MCI, SARS, …

Loss of Siebel staff due to M&A

Perceived issues in scaling

  • Strengths

    • Dedicated sales force

    • Retail banking expertise

    • Fast growth via add-on business to SFA/CRM/UAN

    • “Nexus” next gen (SCA) composite architecture

    • Integrated DQ & analytics

    • Future Oracle integration

© 2006 The CDI Institute The-CDI-Institute.com


Field report purisma customer registry

Field Report: Purisma Customer Registry

Weaknesses

Lack of strong SI channel

Under invested in marketing

Scarce references

  • Strengths

    • Hierarchy management

    • B2B model

    • Business Objects integration partnership

    • Cross investments (Informatica, Hyperion, …)

© 2006 The CDI Institute The-CDI-Institute.com


Field report sap netweaver master data management

Field Report: SAP NetWeaver Master Data Management

Weaknesses

Lack of strong SI channel

Under invested in marketing

Overcommitted to product/supplier theme vs. customer/employee (due summer 2006 with MySAP CRM data model)

  • Strengths

    • “Name” references

      • McKesson, Nortel, Rubbermaid, Whirlpool, …

    • Supply chain expertise

    • Product information management focus

    • Image management (catalog publishing)

    • New capabilities via acquisition

      • e.g., A2i (xCat System), Callixa, …

© 2006 The CDI Institute The-CDI-Institute.com


Field report sas dataflux

Field Report: SAS/DataFlux

Weaknesses

Minimal references

Lack of SI channels

Lack of BPM/workflow for “policy hubs”

  • Strengths

    • Integrated DQ

    • Multi-entity data model

    • Data governance

    • SAS “deep pockets”

    • SAS channel

    • SOA

    • Scalability reference via Amgen

© 2006 The CDI Institute The-CDI-Institute.com


Field report siperian master reference manager

Field Report: Siperian Master Reference Manager

Strengths

Public references

Allergan, DTCC, Genentech, Lexis Nexis, Pfizer, Roche, SanLam, State Street Bank, …

Pharma expertise

Data model flexibility

Hierarchy management

Weaknesses

Lack of strong SI channel

Under invested in marketing

Focus on batch vs. just-in-time

“Pharma-centric”

© 2006 The CDI Institute The-CDI-Institute.com


Bottom line

Bottom Line

  • Acknowledge that no one does it all “well”

    • Customer vs. product

    • B2B vs. B2C vs. B2B2C

    • Batch vs. real-time

  • Industry expertise matters

  • Test drive matching & consulting expertise

  • Apply data stewardship tools for business users as vital for long-term data sustainability

© 2006 The CDI Institute The-CDI-Institute.com


Cdi case study united airlines enterprise customer profile

CDI Case Study: United Airlines’“Enterprise Customer Profile”

Major challenge in customer knowledge & treatment

Customer profile info gathered through various customer touch points, but not synchronized nor available to all channels

Expand common PW across channels — IVR & wireless

Need to increase customer satisfaction & loyalty by making amends to customers’ disservice (e.g., lost bag or delayed flight)

Highly available & scalable architecture to support required OLTP levels

Integration among second-generation CRM interactions for key systems, including reservations, frequent flyer, call centre — across key channels (Web, wireless, & phone)

Coordinated multi-channel campaign mgmt, channel optimization, & advanced analytics

Business Issues

Technology Solution

Became 1st airline to offer booking capabilities via wireless Internet devices — available instantly via same customer PW & personal info from Web site

© 2006 The CDI Institute The-CDI-Institute.com


Case study citicard s enterprise customer hub ech

Case Study: CitiCard’s“Enterprise Customer Hub” (ECH)

Reduce net credit loss

Increase customer base

Support future business objectives (e.g., M&A)

Reduce operating expenses

Gain competitive advantage over closest competitors

Ensure consistent customer service across all channels

Invest in strategic “architecture” leveraged across entire enterprise

Deployed ECH — vs. front-end solution, data warehouse, or customer info file

Integrated marketing campaign system to increase responses & increase its customer base

Managed privacy contact preferences in single location & provided to all channels — telemarketing, centre marketing, call centre

Business Issues

Technology Solution

Achieved competitive advantage in operational excellence over nearest competitors — “M&A ready”

© 2006 The CDI Institute The-CDI-Institute.com


Case study fleet financial s real time customer data mgmt

Case Study: Fleet Financial’s“Real-Time Customer Data Mgmt”

Need to integrate customer data, processes, & views across disparate CRM applications

Challenged by inter-app data & process integration issues requiring adoption of new CDI technologies

Need for employee portal as single point of access to multi-app customer views

Leverage of existing investments in Oracle, Sun, Siebel, MicroStrategy plus many in-house built apps

Delivery of workflow-based employee portal to integrate SFA, DW, BI, cust. profitability, loan pricing/ approval & document mgmt apps

Build on existing portal infrastructure by incorporating new CDI technologies in R/T cust. data reconciliation & inter-app process integration

Business Issues

Technology Solution

Increased cross-sell revenue by US$700M across sales, marketing, & portfolio mgmt — reducing underperforming assets by US$12B

© 2006 The CDI Institute The-CDI-Institute.com


Cdi case study intuit s party reference system

CDI Case Study: Intuit’sParty Reference System

Major challenge in customer knowledge & treatment

Tens of millions of customers, thousands of which interact with company every day via multiple call centres, web sites & service/support email accounts

Had to pull customer data from six separate systems into a single registry, & then scrub & merge data while maintaining already recognized existing relationships

R/T identity mgmt capable of scaling to 100 million customers with sub-second response times for customer-facing applications

“Federated” approach with individual business lines keeping ownership of master customer data & subscribed to data feeds from central system

Core business services were subsequently developed by corporate IT to support centralized DQ & identity mgmt via SOA

Business Issues

Technology Solution

Loosely-coupled architecture comprised of “party reference system” business services allowed for distributed autonomy across LOBs while centrally maintaining “trustworthy” data

© 2006 The CDI Institute The-CDI-Institute.com


Key business outcomes for intuit

Key Business Outcomes for Intuit

  • Reduced software costs for data standardization because they can now verify against one source instead of six

  • Reduced direct mktg costs by due to elimination of duplicate & redundant customer records

  • Increased cross-sell & up-sell revenue by having a complete picture of customer's account at various points of service

  • Reduced customer churn by materializing more accurate records “on demand” & “just in time” to resolve more billing & support issues faster

  • Increased customer privacy compliance requests by applying privacy wishes from two existing systems to four additional systems

  • Reduced hardware & software fees by reducing volume of master customer records under management & thus all related storage, maintenance & development costs

By customizing commercial CDI solution over a period of 6+ months, mfgr reengineered entire end-to-end customer processes to enable it to better serve its customers & grow its business

© 2006 The CDI Institute The-CDI-Institute.com


Intuit s cdi implementation characteristics

Intuit’s CDI Implementation Characteristics

© 2006 The CDI Institute The-CDI-Institute.com


Bottom line active bu participation in data governance data steward functions is vital

Bottom Line: Active BU Participation in Data Governance & Data Steward Functions is Vital

  • Plan for IT organizational change mgmt to support CDI/MDM efforts

  • Work with business leadership to design & refine the “future state” business processes associated with new CDI/MDM commitments

  • To a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of CDI/MDM initiative

  • Without C-level support, BUs will find it difficult to contribute funding & resources necessary to launch a CDI/MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)

  • After initial development of a CDI/MDM system, continued support by BUs is essential & must include:

    • Ongoing participation in development of business rules and resolution of master data match/merge issues

    • Ongoing commitment to update both applications and business processes to leverage core data stored in master data hub

© 2006 The CDI Institute The-CDI-Institute.com


How to leverage the cdi institute

How to Leverage the CDI Institute

  • Kickstart the “CDI evaluation process”

    • Attend public workshop

    • Bring workshop on-site

  • Finetune in-process CDI strategies

    • Due diligence on reference checking & contract details

  • Stay ahead of curve via CDI Business Council

    • Re-qualify every 6 months via survey

    • Receive CDI News Alerts and access to Web-hosted research

  • Increase your CDI knowledge & negotiatingstrengths via CDI Advisory Council Membership

    • Participate in monthly email surveys & receive updated industry scorecard

    • Receive unlimited CDI consultation via telephone

“Independent, Authoritative, & Relevant”

© 2006 The CDI Institute The-CDI-Institute.com


Produced by

Aaron Zornes

Founder & Chief Research Officer

The CDI Institute

The-CDI-Institute.com a.k.a. www.tcdii.com

Authoritative

Independent

Relevant

© 2006 The CDI Institute The-CDI-Institute.com


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