bhawani prasad mdm-cdi-methodology

Business Intelligence (BI) Capability MDM - Customer Data Integration Prepared By: Bhawani Nandan Prasad

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

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 ...‖


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

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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™

―Independent, Authoritative, & Relevant‖

About Aaron Zones 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


CDI Institute Advisory Council

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 fulfillment

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

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

Representative Members

• 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


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 2013 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?



Customer Data Integration (CDI) Definition

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

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

Historical CDI Solutions

Synchronization

Enterprise Application Integration (EAI)

Extract Transform

Load (ETL)

Replication

Aggregation

Master Customer

Files/DBs

CDI


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

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

of the emerging CDI-MDM vendor landscape

Roadmap of key areas to invest in CDI – i.e., “What are the key differentiators of a next-generation CDI solution in 2006-07?”


Market Maturation

During 2005-10, 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 2011-13, CDI solutions will come to market for the midsize enterprise from Microsoft and Oracle plus the Data Quality vendors (Pitney Bowes, SAS/Data Flux, Trillium)

By 2013, the market for CDI-MDM solutions (software and services) will exceed US$1B

CDI-MDM MILESTONE


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

CDI-MDM MILESTONE


CDI Momentum

55% of G2000 are actively evaluating an enterprise CDI solution; 42% ―in production‖ with custom-built solution,

& 3% ―in production‖ with vendor-based solution

It’s All About ―Relationships‖

Panoramic Customer

View Customer- Centric View

Universal Customer

View

CDI

360 º Customer

View

Master Customer Info File

Customer System

of Record


Working Definitions

Data Governance (DG)

Customer Data Integration

(CDI)

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.

Formal orchestration of people,

process, & technology to enable

an organization to leverage data

as an enterprise asset.

Master Data Management

(MDM)

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.

―84% of businesses surveyed believe that poor DG can cause: limited user acceptance, lower productivity, reduced business

decision accuracy, & higher TCO


―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


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


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


Data Governance Juggernaut

Data Customer Master Warehouse Data Integration Data Management (Batch) (On-Line) (Just-in-Time)

Data Governance

Must Become “De Facto”

Data Governance Will Become “De Jure”

Data Governance Becoming “De Rigueur”

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


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

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

Data Warehouse Customer Data Integration Master Data Mgmt

Data Steward

Enterprise Architect

CDI Project Lead

Data Quality Analyst


Technical Maturity Level

Overall, FSPs are leading the way for non-FSPs

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

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

0%

10%

20%

30%

40%

50%

Basic Foundational Advanced Distinctive

FSP

Non-FSP


The CUSTOMER:PRODUCT Conundrum

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

Pricing Authorized Products

Bundles Cross-Reference

Hierarchies Geographical Variants

Regional Variants

CUSTOMER

PRODUCT

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


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)

CDI-MDM MILESTONE


Most Common CDI Topologies

IMPLEMENTATION STYLE DESCRIPTION

External (Service Provider) • Database marketing providers

• Data service providers / service bureaus

Persistent (Database) • Master customer information file/database

• Operational data store/active data warehouse

• Relational DBMS + Extract-Transform-Load (ETL) + Data Quality (DQ)

Registry (Virtual) • Metadata layer + distributed query (enterprise information integration or EII)

• Enterprise application integration (EAI)

• Portal

Composite (Hybrid) • Ability to fine-tune performance and availability by altering amount of master data persisted

• XML, web services, service-oriented architecture (SOA)

―Chernobyl‖ • Encapsulate legacy applications

―Composite (Hybrid Hub)‖ is architectural preference for 40%


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


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‖


Banking CDI Requirements


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

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

adoption of CDI

Business Drivers Technology Challenges

BXA - Bureau of Export Administration CIP 326 – Customer ID Program of USA PATRIOT Act

OFAC - Office of Foreign Assets Control


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


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


Retail Bank – CDI Solution Architecture

Customer Customer Customer Customer Customer Customer Customer Customer

Customer Customer Customer Customer

Customer

Recognition

Vendor Data

Warehouse

Data

Marts

Data

Marts

Front Office

Back Office

Da

ta In

teg

ratio

n

EAI ETL

EII CDI Hub Application Server

RDBMS Server

Web Self- service VRU Telemarketing Call Center ATM Branch Kiosk Personal Banker

Deposits Consumer Credit Cards Wealth Management


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


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


Banking CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges


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


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

Increased cross-sell revenue by US$700M across sales,

marketing, & portfolio mgmt — reducing underperforming assets by US$12B

Business Issues Technology Solution


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


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

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



Credit Card Issuer CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges


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


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

Achieved competitive advantage in operational excellence over

nearest competitors — ―M&A ready‖



Insurance CDI Requirements


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


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

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


HIPAA - Health Insurance Portability & Accountability Act NHIN - National Health Identification Number

NPI - National Provider Identifier


Insurance CDI Scorecard: ―Top 5‖ Business Drivers & Technology Challenges


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

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



Top 5 Vendors‘ Mindshare within Financial Svcs

2%

3%

45%

82%

85%

0% 20% 40% 60% 80% 100%

% Responses

1

CD

I V

en

do

r M

ind

sh

are

Fin

an

cia

l S

erv

ice

sCDI Institute MarketPulse™ Survey

347 Global 2000 IT Organizations (November 2004)

DWL Customer

Siebel Universal Customer Master

IBM Client Information IntegrationSolution

Sanchez CRM

ISI Synchronous


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

Telco evolution will be radical as intense competition in wireless, LD, Internet, & local service commoditizes products & slashes profits –

not to mention VoIP



Top 5 CDI Vendors‘ Mindshare within Telco

2%

3%

5%

15%

16%

0% 5% 10% 15% 20%

% Responses

1

CD

I V

en

do

r M

ind

sh

are

Te

lec

om

mu

nic

ati

on

sCDI Institute MarketPulse™ Survey

347 Global 2000 IT Organizations (November 2004)

DWL Customer

Oracle Customer Data Hub

Initiate Systems Identity Hub


Ascential Enterprise Integration Suite


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

Tactical ROI

• Saving substantial integration costs

• Improving flexibility & control to enhance overall system performance

• Accelerating time-to-market of CRM, SCM, & PIM solutions

• Reducing overall project risk

Strategic ROI

• Understanding & predicting customers‘ behaviors

• Identifying & deflecting competitors‘ moves

• Integrating supply chains with key business partners

• Forecasting & acting on new opportunities as a ―first mover‖


CDI Market Pulse™ 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 Market Pulse™ Survey

of 12 North American CSP’s IT Organizations

100%

92%

75%

75%

61%

0% 20% 40% 60% 80% 100%

% Responses

1

Corporate alignment

Increase customer satisfaction and retention

Increased operational efficiencies

Increased profitability

Market dominance


CDI Market Pulse™ 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



18%

43%

57%

63%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

% Responses

1

Enable product bundling

Expedite time to mkt of new products

Systematize analytics to enable LTV mktg

Evolve to R/T mktg campaign mgmt

Enable solution selling


15%

17%

42%

50%

83%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

% Responses

1

Legacy app ingtegration (CRIS, LEIS, LEIM,

USOCs)

Business process/workflow integration

Database/data model integration

Scalability

SOA for business services infrastructure

CDI Market Pulse™ 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‖




Pharma/Life Sciences Business Imperatives

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

Contracted

Accounts

Specialty Physicians

Primary Care Physicians

Health Care

Professional

Group Purchasin

g Orgs

Pharmacy Directors &

Other Influencers

Wholesalers / Speciality

Distributors

360° View of Customer

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


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


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


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


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


Reduce Information Mgmt Overload/Costs

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

Supply Chain & Mfg Data: CAPA, RFID,

& ECM

Clinical & Marketing

Data

Data Protection & Privacy Initiatives:

21 CFR Part 11 & HIPAA

Very Large Data Base(s)

Pharma Info Overload


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


Legacy Pharma ―Info Supply Chain‖

ODS

DW

CARS

Siebel

IMS

Wholesaler Fed Govt

SMG SAP

Contracting AMA

DEA

STL

Call

Centre Web

Dendrite

Sales

Targets

OSP

Events

Some sources flow

straight to the DW

Some sources flow

to ODS & DW

Some sources are

not integrated

Back Office

External Source

Front Office ODS = operational data store

DW = data warehouse

CARS = xxxx

―Treading water …‖


Contemporary Pharma ―Info Supply Chain‖

CDI

Registry/

Hub

Active

Data

Warehouse

CARS

Siebel

IMS

Wholesaler Fed Govt

SMG SAP

Contracting AMA

DEA

STL

Call Ctr Web

Dendrite

Sales

Targets

OSP

Events

HIN

All *reference* data

flows through CDI Registry/Hub

Back Office

External Source

Front Office

―Future-proofed …‖


Top 5 Mindshare within LifeSci/Pharma

3%

5%

18%

43%

65%

0% 10% 20% 30% 40% 50% 60% 70%

% Responses

1

CD

I V

en

do

r M

ind

sh

are

Ph

arm

a /

Lif

e-S

cie

nces

CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004)

Siperian Master Reference Manager


Dendrite Nucleus


IBM DB2 Information Integrator


Government CDI Requirements

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

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

concerning privacy & security

Integrated Analytics

Private Data

Public Data

Derivative Data

CDI


Mission-Critical Citizen 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


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’ behaviors to support national security initiatives – & will increasingly

turn to commercial IT sector for ―outside the box‖ thinking & best practices


Top 5 CDI Vendor‘s Mindshare within Public Sector

1%

3%

4%

5%

6%

0% 1% 2% 3% 4% 5% 6%

% Responses

1

CD

I V

en

do

r M

ind

sh

are

Pu

bli

c S

ec

tor

CDI Institute MarketPulse™ Survey 347 Global 2000 IT Organizations (November 2004)




MetaMatrix Server

ObjectStar Enterprise CDI


Why are Healthcare Providers/Payers Adopting CDI?

Optimize customer profitability

Increase operational efficiencies

Enhance regulatory compliance

Improve overall BI

Deliver ROI on CRM initiatives

Provide ―infrastructure rationalization‖


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

“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


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

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.


HIPAA - Health Insurance Portability & Accountability Act NPI – national provider identifier

NHIN - national health identification number


Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Business Drivers

100%

92%

75%

0% 20% 40% 60% 80% 100%

% Responses

1

CD

I B

us

ine

ss

Dri

ve

rs

CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005)

Increase customer satisfaction andretention

Increase profitability

Create operational efficiencies


Healthcare Payer/Provider CDI Scorecard: ―Top 3‖ Technology Challenges

100%

100%

92%

88% 90% 92% 94% 96% 98% 100%

% Responses

1

CD

I T

ech

no

log

y C

hall

en

ges

CDI Institute MarketPulse™ Survey 12 Healthcare Payer IT Organizations (January 2005)

Increase flexibility to add newprocesses via service-orientedarchitecture

Integrate with legacy applications anddatabases

Provide extreme scalability in datavolumes


HCP CDI Implementation Characteristics

CDI Dimension Healthcare Payer Specifics

Number of customers 3 million members; 1.6 million providers

Primary application vendors Siebel call centres

Home-grown membership and eligibility management

Databases sharing master customer

(member, provider) data

Member data management

Eligibility management

Claims case management

Disease management

Provider data management

Contract and credentialing

Pharmacy benefit management

External partners sharing customer

data

Service providers’ prescription benefits management

Provider data management

New or enhanced positions arising

from CDI

Enterprise data architect

Customer master data custodian

Data quality steward


―Top 10‖ CDI Evaluation Criteria

1. Customer data model

2. Business services

3. Identity management

4. Data management

5. Architecture

6. Infrastructure

7. Connectivity

8. Analytics

9. Developer productivity

10.Vendor integrity

Infrastructure fracas will escalate as mega app vendors rush to

dominate business services/processes & data models as high ground


#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


#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


#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


#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


#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


#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


#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


#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


#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)


#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


#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


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


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


Field Report:

Data Foundations OneData

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


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



marketing Lack of CDI references


Field Report:

IBM WebSphere Customer Center (DWL)

Weaknesses BPM story is weak

Only deterministic matching (until QualityStage integration)

―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


Field Report:




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


Field Report:

Kalido MDM

Strengths Public references

BP, InBev, Owens Corning, Shell, …

MDM methodology

Reference data support


channel

Under invested in marketing

Enterprise DW positioning overlay


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


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


Field Report:

Purisma Customer Registry



marketing Scarce references

Strengths Hierarchy

management B2B model Business Objects

integration partnership

Cross investments (Informatica, Hyperion, …)


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, …


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


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‖


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


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

Became 1st airline to offer booking capabilities via wireless Internet devices — available instantly via same customer PW &

personal info from Web site



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


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

Achieved competitive advantage in operational excellence over nearest competitors — ―M&A ready‖


http://www.citi.com/domain/redirect/logo/citi.htm?BVE=http://web.da-us.citibank.com&BVP=/cgi-bin/citifi/scripts/&BV_UseBVCookie=no&US&_u=visitor


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

Increased cross-sell revenue by US$700M across sales, marketing, & portfolio mgmt —

reducing underperforming assets by US$12B



CDI Case Study: Intuit‘s Party 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

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


http://www.intuit.com/go2/header_logo/


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


Intuit‘s CDI Implementation Characteristics

Dimension Description

Number of customers 50 million parties/customers

Primary Application Vendors Siebel call centre, Oracle financials

Number of business units sharing

master customer data

Six business lines

Peak match/merge rate 150 transactions per second against 150 million call centre records

3rd party data sources to aggregate D&B, Experian, marketing data providers

Business partner data sources to

integrate

D&B, Verisign, Wells Fargo

Unique fields kept in central customer

master

Customer privacy preferences, email and contact addresses,

housekeeping data

New or enhanced positions arising

from CDI

Data custodian, data quality steward

Next stage in CDI evolution More robust fail-over capabilities; increased administrative capabilities for

exception handling


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


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 & negotiating strengths via CDI Advisory Council Membership Participate in monthly email surveys & receive updated industry scorecard

Receive unlimited CDI consultation via telephone



Thanks

Bhawani Nandan Prasad

[email protected]

+91 9717570222

mailto:[email protected]