building success presentation to irmac may 27, 2004

Building Success

Presentation to IRMAC May 27, 2004

Denial, Anger, Acceptance, Resolution…

Business Perils of Ignoring Sound CDM

Principles

Simple Input Data

Name: Mr. John Smith Sr.Address: 10 Wolfe Crescent N.

RR#2Geography: Bolton ON L7E 5R8Telephone: (905) 880-1292Birth Date: 03/14/1963SIN: 478 827 905

Veritas Singularis™

We know with certainty only when we know little,with knowledge doubt increases.

J.W. von Goethe


Multitude of Components

Street dataHouse numberStreet titlePrimary street typeSecondary street typePrimary street directionSecondary street direction

Additional Street Line DataRoute name, number, typeBox name, number, typeDwelling1 name, number, typeDwelling2 name, number, typeComplex name, type

Geographic dataCountry nameNeighbourhood nameCity name, Postal CodeState/province/county name

Miscellaneous Personal DataSocial Insurance NumberBell/Cellular NumberDate of BirthEmail Address

Name DataNumber of namesName form (P, B, R)Prefix: titleFirst NameMiddle Name 1, 2, 3Last NameSuffix: secondary titleGeneration: Jr., Sr., III, etc.Gender: M, F, NConnector: and, or, etc.Relationship: Executor, BeneficiaryCandidate Codes: for each name


Average Customers

John Smith10 Wolf Cres.

Jane Smith10 Wolf Cres.

Chequing$1,000

Chequing$1,000

Savings (j)$1,000

Savings (j)$1,000

1. One Household2. Two Customers3. Three Legal Entities• John Single• Jane Single• John/Jane Joint4. Three Accounts


John SmithIndividual #1234

Jane SmithIndividual #1235

John Smith Jr.Individual #1236

Jack SmithIndividual #2345

Single--DDA

Single--MMA

Single--Gold CC

Single--RSP

Single--MutFund

Joint--Mortgage

Joint--LOC

Joint--DDA

Joint--Credit Cd

Contributor-RSP

I.T.F.--RESP

P.A.--DDA

P.A.--Savings

Single--DDA

Single--MMA

Single--RSP

Joint--Mortgage

Joint--LOC

Joint--DDA

Joint--Credit Cd

RSP--(Spousal)

Single--Mutfund

Single--SDB

Single--DDA

DDA (P.A.)

Savings (P.A.)

RESP (I.T.F.)

Best Customers = Highly Complex Matching


Business Imperatives

• Profitability• Segmentation• Direct Response

– Cross-Selling– Upselling– Retention– Activation– Bundling

• Service Quality• Internet Banking

• Propensity Models• Pricing• Fraud Detection• Compliance• Telemarketing• Event Triggers• GIS Applications• RFM Analysis• Product Penetration


Duplicate Customers?

Customer ID: 222John Smith10 Wolfe CrescentBolton ON L7E 5P5

Chequing: $1,700Savings: $2,000Mortgage: $55,000LOC: $10,000Credit Card: $1,200

Assets:$3,700Liabilities: $66,200

Customer ID: 333John Smith10 Wolf CrescentBolton ON L7E 5P5

Term RSP: $150,000Mutual Funds:$175,000

Assets:$325,000


Consolidate Duplicate Customers

Customer ID: 333John Smith10 Wolf CrescentBolton ON L7E 5P5

RSP: $150,000Mutual Funds: $175,000Chequing: $1,700Savings: $2,000Mortgage: $55,000LOC: $10,000Credit Card: $1,200

Assets: $328,700Liabilities: $66,200


Marketing Implications

• How is profit score now affected?• What is risk profile now? • What now represents best cross-sell

opportunity?• What is now the next best product to

upsell?• How should service strategy be tuned?• How does segmentation assignment

differ?

Customer ID: 333

John Smith

10 Wolf Crescent

Bolton ON L7E 5P5

RSP: $150,000

Mutual Funds: $175,000

Chequing: $1,700

Savings: $25,000

Mortgage: $55,000

LOC: $10,000

Credit Card: $1,200

Assets: $328,700

Liabilities: $66,200


Joint Account Treatment

John Smith10 Wolf Cres.

Jane Smith10 Wolf Cres.

Chequing$1,000

Chequing$1,000

Savings (j)$1,000

Savings (j)$1,000


Decision Point: Joint Account Processing

Ownership and balance assignment for marketing metrics:

1. Double Count Dollar Values for both Owners?2. Assign Dollar Value to First Name on the Account?3. Split Value 50/50 between Owners of Account?

IS RECONCILIATION IMPORTANT?


Decision Point: Joint Account Processing

Ownership and balance assignment for marketing metrics:

1. Double Count Assets and Liabilities?John: $2,000 Jane: $2,000

2. Assign Value to First Name on the Account?John: $2,000 Jane: $1,000

3. Split Value 50/50 between Owners of Account?John: $1,500 Jane: $1,500


The Players…

“…the data access issue, the query tool issue, the dataintegrity issue…

...given the universality of these issues, it is strange thatentire industries are being organized around the firsttwo issues but the third issue seems to be somethingthat we don’t want to talk about.”

Ralph Kimball, DBMS September 1996


Data Cleansing and Linking Software


http://www.harte-hanks.com/

http://www.dataflux.com/

http://www.acxiom.com/DisplayMain/FrontDoor

Core Software Capabilities

• Data Conversion• Data Profiling• Name and Address Parsing• Address Verification and Correction• Data Enrichment• Matching—Household; Individual;

Business


Trillium Software System

• Trillium Software: Division of Harte-Hanks Inc.

• Market Co-Leader • Launched 1994• Strongest Canadian Presence• Strengths—Parsing; Matching


Firstlogic: IQ Insight & Information Quality Suite

• Market Co-Leader • Founded in 1984 (Postal Soft;

idCentric)• Privately Held• Limited Canadian Presence• Strengths—Data Profiling; Name

Parsing; SERP II verification & correction


Ascential Software: QualityStage

• Acquired Vality’s Integrity Software 2002

• Public Company• Diminishing Canadian Presence• Strengths—Data Investigation;

Ascential DataStage bundle


CIFCIF

ProfitabilityProfitabilityCardsCardsEDWEDW ComplianceCompliance

MTG Cards MFD TD SDBINV DEP LOC Trust

Entity KeysOCV; MCV; BCV

HHLD

LNS

Scores/Promotion HistoryFeedback Loop to CIF

Data Cleansing &Linking Software

SMEConsumer

Data Cleansing &Linking Software Callable

Batch

Enterprise-Wide CDM Strategy


Steps to a successful implementation of a

customer centric database

Steps to Success

• Business Requirements• Best of Breed Software• Data Discovery & Investigation• Functional Specifications using a

proven methodology• Iterative Development• Quality Assurance• Ownership of Business Rules


Business Requirements

• Face-to-face working sessions• Gather specific requirements without getting into

solutions• Business Users may not know or be able to

articulate exactly what they want, but they will “know it when (they) see it..”– Provide guidance– Do research beforehand– Use Cases and Diagrams

• Comprehensive documentation… for the benefit of the clients supplemented with Use Cases

• High level overview of solution• Confirmation and sign-off• To be continued….


Best-of-Breed Software

• Do your research• Knowing the questions to ask

– Experience - get an expert– A compilation of issues and points gleaned from vendors

and integrators who operate in this space• Proof-of-concept using your own data• Canadian experience• Market leaders with the best software and a deep

heritage in this space also offer a proven methodology and “out-of-the-box” rules to fast track your implementation

• Don’t just ask “will it..” ask “how..”• References – make sure they are recent• “Poor man can’t afford to buy cheap”


Data Investigation

• Its worth it!• Discover the true contents and quality of

your data before you start on a full development cycle

• Give your developers a hands-on experience with software

• Refine the business requirements and provide meaningful project timelines

• Full file processing!• You’re now ready to do the Functional

Specifications…


Functional Specifications

• More than a necessary evil• It is a vital communication vehicle between the

Business Analyst and the Developers and Project Managers

• Helps the Business Users validate that their requirements have been correctly translated

• Supplement with Diagrams, Tables and robust Use Cases

• It is the documentation that will survive and be referenced by future users

• Must be subject to a rigorous review process that includes analysts, developers, business users and project managers

• Can be adapted to an Iterative Development approach


Iterative Development Approach

• What is it?• Why is it required if you have

comprehensive Functional Specifications?

• Why is effective?• When is it not appropriate?• Do you believe?


Quality Assurance

• Involve your QA team from the beginning• Involve expert users and analysts from the

Business in the testing• Be involved with your QA team• Experience counts – and subject matter

experience counts even more• Full file processing!• Predefined Control and Balancing with significant

input from the Business Analyst• End to end User Testing• If possible, do multiple cycle runs with real data in

parallel


CDMS Top 5 Keys Technical Success

Factors in building a Customer Centric

Information Database

1. Parsing Technology

• The Parsing technology is the single most important factor in creating cleansed standardized customer data for successfully Address verification and correction and superior Matching

• What to look for:– Robust out of the box rules– Significant Canadian content– Flexibility to add and modify rules specific to

your data


2. Addressing Technology

• The Name and Address is the cornerstone of a building a linked consolidated database

• The Address is entered in a myriad of ways and prone to error

• The Address Validation and Correction Technology (in conjunction with the Parsing Technology) will provide significantly superior matching results

• What to look for:– Canada Post Certification– Built by Vendor not a third part add-on– Tight integration for a total solution


3. Multiple Match Passes

• Using a single match (typically Name and Address) is insufficient to build a robust linked profile of your customers and household

• Leverage all information available to the organization:– Customer/Department/Subsidiary Id’s– Telephone Numbers– Identification Numbers– Payment Methods– Ownership Identifiers– Linked Accounts

• What to look for:– Provision for independent multiple matchers– Ready facility to reconcile and consolidate the results of

each matcherVeritas Singularis™

4. Control of Match Scores

• Must be able to explain precisely why records are matched

• Must be able to control and tune the rules at the token level

• Work with a baseline (from vendor) and enhance the rules to meet the needs of your firm

• Must have ability to create potential or suspect matches as part of the development cycle

• What to look for:– Ability for users to score data elements and build rules– Interface that is easy to add, delete and modify rules– Method to review and evaluate the results of each rule


5. Key Management

• The least understood and most underestimated module– Select convenience over true requirement

• Driven by customized organization needs that cannot often be met by a canned approach– Flat File or Database– Multiple inter-dependant hierarchy– Track changes over time– Survivorship rules– Business owners will have difficulty articulating their

requirements

• Requires professional guidance


Contact Information

• Jeff Mehlenbacher– Telephone: 905-880-1212– Cellular: 416-662-7092– Email Address: [email protected]

• Dan Bulsara– Telephone: 905-948-0755– Cellular: 416-738-1357– Email Address: [email protected]


mailto:[email protected]

mailto:[email protected]

building success presentation to irmac may 27, 2004

Documents

dda single

rsp single

savings single

dda joint

mma single

rsp joint

mutfund single

john smith individual