cdi-mdm summit new york – fall 2007agenda • tips and re-usable approaches culled from a major...
TRANSCRIPT
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CDI-MDM SummitNew York – Fall 2007
A Proven Multi-Track Approach to Cross-Business MDM Justification
John Butler, Sr Director
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Agenda
• Tips and re-usable approaches culled from a major business transformation.
• Some technical references but most appropriate to individuals where a component of their job is aligning silos, winning buy-in or driving change.
• Reed Elsevier’s B2B information businesses face major challenges and change asin the move from print publishing to one of the largest digital media companies.
• Change on this scale requires action on multiple fronts. We’ll discuss proven techniques used by Reed and by best practice companies from various sectors.
• We’ll use a case study to bring to life the various approaches that work to reinforce each other including
• Rolling up requirements and building the ROI business case across departments or operating units using existing models
• The analytics dashboard vs mining transactional data• Benchmarking the business to acquire capabilities where critical gaps are found• Data auditing to validate assumptions before investing and measure impact • A way to keep executives connected to their market which in turn moves MDM up the
strategic priority list and sustains focus over the long-term on continuous improvement
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Reed Elsevier
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Reed Elsevier (pre-Harcourt sale)
• FTSE 100 company with 2006 revenues at £5.4 billion and 36,000 employees in more than 200 countries.
• Leading B2B digital media business that includes global market leaders: LexisNexis, Elsevier and Reed Business.
• Professional users in the legal, science, medical, business professional and education markets.
• More than 15,000 different magazines, books, CDs and online information solutions –40% online and accelerating.
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From the 2006 Annual Report . . .
Transformational Challenges
• Product Innovation
• Customer workflows
• From print to online
• From information to solutions
• From local to global
Strategic Priorities
• Delivering authoritative content through leading brands
• Driving online solutions
• Improving cost efficiency
• Selective portfolio development
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Change – how and how fast
Business process focusedProject / internally focusedProcess
Customer-centricProductCulture
Balanced measuresFinancialMeasures
Analytical (Summary)Transactional / OperationalInformation
FewerManyOrganization
Strategic MarketingSales-focusedCapabilities
Integrated / AnalyticsFragmented / missingInformation
Fix process & dataTechnologyInvestment
HorizontalCross-functional
VerticalCross-business
Change management
OpportunityWorks well where existentCommunications
CEOs & Customer ChampionsSalesLeadership
2007+2006200520042003
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2003 to 2007 laying the groundwork
Customer focus in a product culture
• Benchmarking & assessments – by the numbers
• Customer First program – customer champions
• Showcase best practice – workshops/intranet
• Customer Information Leadership Forum
• CEO briefings – Customer measure (NPS)
• Horizontal & vertical – Cross-bsns AND cross-function
• Leadership in LOB programs – an example
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Illustrative benchmark results
Return
Improving our capabilities
2003Today
Source: Stone and Starkey
80% ofthe payoff
1. Optimise customer journey2. Understand what drives
customer value3. Tackle major customer
issues
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Typical current state
Investment in managing customers
Value of customers
Where many firms are now
Key accounts
Source: Paul Weston, QCi, WPP
“Vanilla” proposition
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Target state – value-driven priorities
Retain &Develop
Investment in managing customers
Value of customers
Where many firms are now
Best-in-classCustomer Mgt
Revenue/profitOpportunitiesReduces costs
Efficiencies & cost reduction:
High cost-to-serve customers: drive online or send to competition, to drive up their costs.
Revenue/profit Opportunity:
Improve penetration, higher share of wallet
Key accounts
Rethink
Source: Adapted from Paul Weston
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Customer model
Subscribers
Advertisers
Intermediaries
Organizations
Individuals
C. Circ
Exhibitors
Buyers
Influencers
Users
Source: QCi CMAT
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Best Practice Center of Excellence
• Common language for sharing
• Framework for execution
• External best practice
• Assessments to inspire stretch, accelerate learning
• Action guide for making improvements
• Community of practice, eg info forum
• Contact list of expertise
• Exchange learnings & case studies
• Tackle common challenges
• Identify opportunities
• Standards & common definitions
• Networking via telemeetings & workshops
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Learning from the Information Masters
CompetenciesPeopleProcessOrganizationalCulturalLeadershipInformationTechnology
Typical Spend ($)2%2%2%1%1%10%82%
Optimum Spend ($)20%15%10%20%10%15%10%
Small, short term gains Short and long term gains
Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years
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Case Study – Analytics Program
Approach
1. Requirements against best practice checklist
2. Quantifiable cost/benefits using ROI model
3. Customer Information Plan – what’s needed
4. Organizational capability assessment
Outcome
• Execution plan for Customer Insight program
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Analytics Requirements
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Data Audit – De-risking assumptions
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Linking up the multi-track findings
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Customer Information Action Plan
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Info from across the customer journey
• Staple yourself to an order
• What we put our customers through
• Easier to do business with
• Challenge is to collect cross-dept info
• Best practices
• Customer journey mapping vs internal focus
• Cross-dept information forum
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Key Measures – the CEO dashboard
Analytics — the major dials
• Retention
• Acquisition
• Retention & Development
• Sales & Marketing Effectiveness
• Operational Efficiency
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ROI model includes interdependencies
Example inputs . . .
• No. of customers
• Retention rate
• Acquisition rate
• Marketing & Sales spend
• Operational costs
• Assumptions
• Project Costs
Source: Iain Henderson, Information Answers
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Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
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Virtuous cycle of customer data
Customer identifiersTransactionsProductMarketing activityInteractionsetc
ExistenceCompletenessAccuracyUser confidenceRecencyComplianceetc
2. Content
3. Quality1. Usage
Building knowledgeand understandingBusiness andmarket planningOrganizing forcustomer contactDriving efficientand effectivecustomer contactactivity
Source: Murray & Henderson, Information Answers
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Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
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Analytic info vs transactional data
Years of History
Number of data fields
Number ofOperational Systems
OPERATIONAL
EDWEDW
SYSTEMS0
1
2
3
4
5
Source: Murray & Henderson, Information Answers
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Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Sray & pray’ vs surgical strategic marketing
. . . so what do we do now?
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Targeting broadly vs surgically . . .
Company Competition
Customer Base Customer BaseTop 10% Top 10%
Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years
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Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
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. . . Keep going!
• Continue data quality improvements
• Deploy NPS as catalyst for change
• Identify opportunities for leverage and develop more rigorous governance framework
• Real-time analytics for a digital media business
• and much more!
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Net Promoter (NPS) as Lead Indicator
Q1: How likely to recommend?
Q2: What is the single most important reason for saying that?
• Actual score less important than the trend
• Net Promoter trend is predictive of future business performance*
ILLUSTRATIVE ONLYILLUSTRATIVE ONLY
*Source: Mulberry House Consulting, Bain
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Enterprise Opportunities for Leverage
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Customer-Product•Tasks•Leads•Opportunities•Products
Executives: ‘Do’ view• Transparent view – no chasing• Speed – real time & triggers• Directional – nimble
Drill down on•Retention rates•New customers•Penetration/SOW•Sales effectiveness
Sales: More effective faster• Clear priorities – no hiding• Useful tool – gets used• Customer-product views
Vision to RealityILLUSTRATIVE ONLY
ILLUSTRATIVE ONLY