Transcript Slide 1

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
The-CDI-Institute.com a.k.a. tcdii.com
How Many Analysts Does It Take To
Change a Light Bulb?

Gartner analyst
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Forrester/Giga analyst
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“We’ll write about the old bulb for $25,000”
IDC analyst
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“In 5 years, the new illumination technologies will replace
what you currently have ... Wait”
Ovum/Aberdeen analyst
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“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”
“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

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Founded in 2004

CDI Alert™ bi-weekly newsletter
Focused on CDI-MDM business
drivers & technology challenges
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CDI Market Pulse™ monthly surveys
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CDI Advisory Council™
of fifty G5000 IT organizations with
unlimited advice to key individuals,
e.g. CTOs, CIOs, data architects
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CDI Business Council™ website
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access & email support to 3,000+
members
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Milestones™ semi-annual strategic
planning assumptions
CDI Fast Track™
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Budgets, success/failure rates,
mindshare of 250+ major in-flight CDIMDM projects
Examples: evaluation process for CDI
SI, CDI ROI in Telco M&A, …
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
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CDI Institute Advisory Council

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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 bimonthly survey request via email or Internetbased 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
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
Fifty organizations who receive unlimited CDI advice to key
individuals, e.g. CTOs, CIOs, & CDI project leads
© 2006 The CDI Institute
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Recent CDI Alerts
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Oracle Data Hubs: “The Emperor Has No Clothes?”
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SAP Master Data Management “Extreme Make-Over”
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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
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Subtitle: Considering Oracle’s Data Hubs? Then Consider This …
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
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Subtitle: How Many More Software Firms Must Oracle Buy to Catch
Up with SAP?
“Independent, Authoritative, & Relevant”
© 2006 The CDI Institute
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Customer Data Integration (CDI) Definition

Comprised of solutions
(processes & technologies)
 Recognizing a customer & its
relationships at any touch-point
 Aggregating, managing &
harmonizing accurate, up-todate knowledge about that
customer
 Delivering it in an actionable
form “just in time” to touchpoints
Historical CDI Solutions
Aggregation
Customer
Master
Files/DBs
CDI
Extract
Transform
Load
(ETL)
Replication
Enterprise
Application
Integration
(EAI)
Synchronization
CDI is mandatory first step for most organizations on
journey to enterprise master data management (MDM)
© 2006 The CDI Institute
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CDI-MDM Milestones
Roadmap of key areas to invest in CDI – i.e., “What are the key
differentiators of a next-generation CDI solution in 2006-07?”
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Market maturation
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Architecture
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Market momentum
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Data models
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Market consolidation
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Customer identification
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Budgets/skills
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Master data delivery
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Data governance
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Analytics
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MDM convergence
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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
© 2006 The CDI Institute
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Market Maturation
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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 Growth 2004-08
(Software & Systems Integration Services)
$1,200,000,000
30%
$1,000,000,000
35%
$800,000,000
40%
$600,000,000
50%
$400,000,000
36%
$200,000,000
$0
2004
2005
2006
2007
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
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Market Momentum
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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
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CDI-MDM MILESTONE
CDI Momentum
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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
It’s All About
“Relationships”
Panoramic
Customer
360 º
CustomerView
Centric
Customer
View
View
Master
Customer
Info File
CDI
Customer
System
of Record
Universal
Customer
View
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
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Market Consolidation & Diversification
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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-ofbreed vendors (I2, Initiate Systems, Kalido, Siperian)
will thrive in specific industries & horizontal/corporate
applications
© 2006 The CDI Institute
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CDI-MDM MILESTONE
CDI/MDM Genealogy
1st
gen CDI
solutions
arrive
(IBM CIIS,
Hogan CIF)
Data service providers
Oracle, SAP,
(Acxiom, Experian) fail at
Siebel introduce
software makeovers
3rd gen/hybrid CDI
into CDI
2nd gen CDI vendors
Mega vendors
Nascent EII
merge to form 3rd
digest
vendors arrive
gen CDI solutions
acquisitions
(Initiate/Journee,
& flop
Siperian/Delos)
Pre-2001
App vendors
launch EAI
infrastructure
(SAP NetWeaver,
Siebel UAN)
2002
2003
2004
CDI early
ETL vendors
adopters
drive
add modest
requirements
CDI extension Mega app
(Fin Svcs,
& avow CDI
High Tech Mfg,
vendors
Pharma,
capabilities roll out CDI
Telco)
(Oracle OCO,
SAP MDM,
Siebel UCM)
2005
‘EIM’ as
yet
another
TLA
2006
‘Process Hubs’
trounce
‘Data Hubs’;
4th gen
‘Full Spectrum’
hubs support
structured &
unstructured
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
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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
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CDI-MDM MILESTONE
Career Tracks
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Scarcity of “hands on” CDI
experience exists
By 1H2006, 1,500+ productspecific 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”)
Product Neutral
Enterprise
Data Architect,
Enterprise Data
Modeler
Centres of Excellence,
Data Steward,
CDI Project Lead
Product-Specific
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
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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
Data Governance (DG)
Formal orchestration of people,
process, & technology to enable
an organization to leverage data
as an enterprise asset.
Master Data Management
(MDM)
Customer Data Integration
(CDI)
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.
Processes & technologies for
recognizing a customer & its
relationships at any touchpoint 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.
“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”
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Data Governance
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“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?

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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
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Why Data Governance? Why Now? –

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
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:
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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
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Data Governance Juggernaut
Data
Governance
Becoming
“De Rigueur”
Data
Warehouse 
(Batch)
Data
Governance
Must Become
“De Facto”
Data
Governance
Will Become
“De Jure”
Customer
Master
Data Integration  Data Management
(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
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Demand for CDI-MDM Expertise Creates
Major Opptys for Corp Positions Next 3-5 Yrs
Data
Quality
Analyst
Data
Steward
CDI
Project
Lead
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
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Technical Maturity Level
50%
40%
30%
FSP
20%
Non-FSP
10%
0%
Basic
Foundational
Advanced
Distinctive
Source: February 2006 CDI Institute survey of 50 Global 5000 IT organizations
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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
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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 multihub connectivity (Kalido, Purisma, Siperian,
Stratature) via hierarchical management extensions
By 2008-09, enterprises without an overall, longterm 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
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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
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Simplified PLM by automating key business
policies to provide effective oversight &
compliance
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Reduced revenue leakage via consistent
enforcement of offer policies re:
provisioning & billing
CUSTOMER
Pricing
Authorized Products
Bundles
Cross-Reference
Hierarchies
Geographical Variants
Regional Variants
PRODUCT
SOA mandates “Customer” + “Product” MDM – however,
“customer” cannot simply be added as object to PIM products
© 2006 The CDI Institute
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Architecture
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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
IMPLEMENTATION STYLE
External (Service Provider)
DESCRIPTION
•
•
Persistent (Database)
•
•
•
Registry (Virtual)
•
•
•
Composite (Hybrid)
•
•
“Chernobyl”
•
Database marketing providers
Data service providers / service bureaus
Master customer information file/database
Operational data store/active data warehouse
Relational DBMS + Extract-Transform-Load (ETL) +
Data Quality (DQ)
Metadata layer + distributed query (enterprise
information integration or EII)
Enterprise application integration (EAI)
Portal
Ability to fine-tune performance and availability by
altering amount of master data persisted
XML, web services, service-oriented architecture
(SOA)
Encapsulate legacy applications
“Composite (Hybrid Hub)” is architectural
preference for 40%
© 2006 The CDI Institute
The-CDI-Institute.com
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 CDIMDM vendors to stay “data model lite” via specializations
such as B2B hierarchy management & distributed CDIMDM
 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
CDI-MDM MILESTONE
© 2006 The CDI Institute The-CDI-Institute.com

Master Data Delivery
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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 CDIMDM 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

Financial services providers (FSPs)

Communications services providers (CSPs)

Life sciences / pharmaceutical

Government

Healthcare

High-technology manufacturing
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Manufacturing (discrete, process)
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Retail
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Hospitality
(t.b.d)
(t.b.d)
(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?
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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
Business Drivers
Technology Challenges
 Increasingly complex
 Facilitate growth-by-M&A
business models (B2B2C) as
 Comply with privacy mandates
“electronic storefronts”
 Improve compliance – e.g., AML, BXA,
 Demand for “near real-time”
CIP 326, OFAC, SOX, …
data lineage
 Increase sales productivity by
modeling corporate hierarchies &  Rationalizing complex &
dynamic business &
structures of B2B customers
individual hierarchies
 Improve real-time portfolio view
 Hacker-proof customer data
for both wealth management &
protection
internal risk management
 High-RAS (reliability, availability,
 Increase customer satisfaction
scalability) nature of mission(retention/upsell) by streamlining
critical infrastructure
routine customer maintenance
BXA - Bureau of Export Administration
CIP 326 – Customer ID Program of USA PATRIOT Act
 Reduce IT infrastructure costs
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
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Provide single view of customer
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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







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
Web Self- service
Telemarketing
VRU
Call Center
ATM
Branch
Kiosk
Personal Banker
Front Office
Customer
Data Integration
Consumer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Customer
Application Server
EAI
Deposits
Customer
ETL
Credit Cards
CDI Hub
RDBMS Server
Wealth Management
Customer
Recognition
Vendor
Customer
Customer
Back Office
© 2006 The CDI Institute
EII
The-CDI-Institute.com
Data
Marts
Data
Warehouse
Data
Marts
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






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
© 2006 The CDI Institute
The-CDI-Institute.com
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
Business Issues




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
Technology Solution



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
© 2006 The CDI Institute
The-CDI-Institute.com
Credit Card Issuer CDI Requirements
Business Drivers
Technology Challenges
 Aggregation within industry –
 Integration of new & old
exacerbated by big commercial
channels – e.g., collections, fraud,
contact centre with kiosk, ATM, IVR &
banks emulating major monolines
online self-service
 Heavy reliance upon direct mail
marketing – & inherent increased  Contingency planning for future
technologies – e.g., biometrics,
fraud risk
smartcards, etc.
 Improve compliance – e.g., AML, BXA,  Complex hierarchy mgmt – e.g.,
CIP 326, OFAC, SOX, …
household-level risk mgmt
 Support future business objectives  Scalability – e.g, ability to integrate
– e.g., M&A
new block of customers
 Ensure consistent customer service  Infrastructure costs of
across all channels
integrating new data sources &
channels
 Private label cards needing lifestyle
event-based differentiation
 Reduce IT infrastructure costs
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
© 2006 The CDI Institute
The-CDI-Institute.com
Case Study: Major U.S. Credit Card Issuer
Business Issues






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
Technology Solution



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”
© 2006 The CDI Institute
The-CDI-Institute.com
Insurance CDI Requirements
Business Drivers
 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
Technology Challenges
 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 missioncritical infrastructure
 Hacker-proof customer data
protection
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
© 2006 The CDI Institute
The-CDI-Institute.com
Case Study: Major North American Insurer
Business Issues


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
Technology Solution

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)
© 2006 The CDI Institute
The-CDI-Institute.com
Top 5 Vendors’ Mindshare within Financial Svcs
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
DWL Customer
CDI Vendor Mindshare
Financial Services
85%
Siebel Universal Customer Master
82%
IBM Client Information Integration
Solution
45%
1
Sanchez CRM
3%
ISI Synchronous
2%
0%
20%
40%
60%
% Responses
© 2006 The CDI Institute
The-CDI-Institute.com
80%
100%
Communications Services Provider
Requirements
Business Drivers







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
Technology Challenges






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
© 2006 The CDI Institute
The-CDI-Institute.com
Top 5 CDI Vendors’ Mindshare within Telco
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
DWL Customer
CDI Vendor Mindshare
Telecommunications
16%
Oracle Customer Data Hub
15%
Initiate Systems Identity Hub
5%
1
Siebel Universal Customer Master
3%
2%
0%
Ascential Enterprise Integration Suite
5%
10%
% Responses
© 2006 The CDI Institute
The-CDI-Institute.com
15%
20%
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 enterprisewide solution
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’
behaviours
Identifying & deflecting competitors’
moves
Integrating supply chains with key
business partners
Forecasting & acting on new
opportunitiesCOTS
as a= commercial,
“first mover”
off-the-shelf software
M&A demands comprehensive & integrated profiles
© 2006 The CDI Institute
The-CDI-Institute.com
CDI MarketPulse™ Findings: “Corporate Issues”
How do you RANK your company's DESIRED STRATEGIC RESULTS resulting from M&A?
Corporate alignment
61%
Increase customer satisfaction and retention
75%
Increased operational efficiencies
75%
1
Increased profitability
92%
Market dominance
100%
Source: CDI Institute 1H2005 MarketPulse™ Survey
of 12 North American CSP’s IT Organizations
0%
20%
40%
60%
80%
100%
% Responses
For strategic M&A, “Market dominance” cited twice as often as next
highest ranked “Increased profitability”, “Increased operational
efficiencies” & “Corporate alignment”
© 2006 The CDI Institute
The-CDI-Institute.com
CDI MarketPulse™ Findings: “Marketing Issues”
How do you RANK your company's DESIRED “MARKETING” OUTCOMES resulting from M&A?
Enable product bundling
71%
Expedite time to mkt of new products
63%
Systematize analytics to enable LTV mktg
57%
1
Evolve to R/T mktg campaign mgmt
Enable solution selling
43%
18%
Source: CDI Institute 1H2005 MarketPulse™ Survey
of 12 North American CSP’s IT Organizations
0%
10%
20%
30%
40%
50%
60%
70%
80%
% Responses
“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
© 2006 The CDI Institute
The-CDI-Institute.com
CDI MarketPulse™ Findings: “Technology Issues”
How do you RANK your company's MAJOR TECHNOLOGY CHALLENGES resulting from M&A?
Legacy app ingtegration (CRIS, LEIS, LEIM,
USOCs)
83%
Business process/workflow integration
50%
Database/data model integration
Scalability
42%
1
SOA for business services infrastructure
17%
15%
Source: CDI Institute 1H2005 MarketPulse™ Survey
of 12 North American CSP’s IT Organizations
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
% Responses
“Legacy application integration (CRIS, LEIS, LEIM, USOCs)” rated
at least 33% more important than “Business process/workflow
integration” & “Database/data model integration”
© 2006 The CDI Institute
The-CDI-Institute.com
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





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
360° View of Customer
Primary Care
Physicians
Contracte
d
Accounts
Specialty
Physicians
Health
Care
Professional
Group
Purchasin
g Orgs
Pharmacy
Directors &
Other
Influencers
Wholesalers /
Speciality
Distributors
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
 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





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








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





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

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
Pharma Info Overload
Data Protection
& Privacy Initiatives:
21 CFR Part 11 & HIPAA
Supply Chain & Mfg
Data: CAPA, RFID,
& ECM
Very Large
Data Base(s)
Clinical &
Marketing
Data
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


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, cobrowsing, 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”
SAP
AMA
DEA
SMG flow
Some sources
Contracting
to ODS & DW
STL
ODS
Sales
Targets
CARS
IMS
Some sources
OSPare
not integrated
Events
Siebel
DW
Some sources flow
straight to the DW
Web
Dendrite
Wholesaler
ODS = operational data store
DW = data warehouse
CARS = xxxx
Call
Centre
Fed Govt
Front Office
“Treading water …”
Back Office
External Source
© 2006 The CDI Institute
The-CDI-Institute.com
Contemporary Pharma “Info Supply Chain”
HIN
SMG
AMA
SAP
Contracting
Sales
Targets
DEA
STL
CARS
CDI
Registry/
Hub
IMS
OSP
Events
Siebel
All *reference* data
flows through CDI Registry/Hub
Wholesaler
Active
Data
Warehouse
Call Ctr
Web
Dendrite
Fed Govt
Front Office
“Future-proofed …”
Back Office
External Source
© 2006 The CDI Institute
The-CDI-Institute.com
Top 5 Mindshare within LifeSci/Pharma
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
Siperian Master Reference Manager
CDI Vendor Mindshare
Pharma / Life-Sciences
65%
Siebel Universal Customer Master
43%
Dendrite Nucleus
18%
1
5%
Ascential Enterprise Integration Suite
3%
0%
IBM DB2 Information Integrator
10%
20%
30%
40%
% Responses
© 2006 The CDI Institute
The-CDI-Institute.com
50%
60%
70%
Government CDI Requirements





Self-service to drive down customer
Integrated
service costs
Analytics
Integration of transactional,
unstructured, geospatial, &
demographic data to optimize public
services (& national security)
Public
Private
Imperative placed on most
Data
Data
government agencies to collaborate
& share info
Newly-created enhanced knowledge
repositories, tools, & processes
critically needed for meeting new
Derivative
public policy requirements
Data
Need to positively ID & track individuals
across languages & cultures
CDI
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)

Key technologies
 Key vendors
 Anonymous entity resolution
 Initiate Systems
(name classifier & hunter)
 Language Analysis Systems
 Business intelligence
 MetaMatrix
(perpetual analytics)
 Salford Systems
 Dynamic scoring
 SAS
 Link analysis (° of separation)
 SPSS
 Grid scalability
 Superstructure
 Data mining
 Systems Research &
 Text mining
Development
 Real-time report streaming
 The Distillery
 Voice/text analysis
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




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
CDI Institute MarketPulse™ Survey
347 Global 2000 IT Organizations (November 2004)
CDI Vendor Mindshare
Public Sector
6%
Ascential Enterprise Integration Suite
5%
Siebel Universal Customer Master
4%
1
MetaMatrix Server
3%
ObjectStar Enterprise CDI
1%
0%
1%
2%
3%
4%
% Responses
© 2006 The CDI Institute
Initiate Systems Identity Hub
The-CDI-Institute.com
5%
6%
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”
Facilitate growth-by-M&A
“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
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
Business Drivers
Technology Challenges
 Need to react intelligently &
 Ongoing consolidation straining
instantly to changing “customer”
capacity of batch-centric processes
information such as claims
 Corporate boards & investors reluctant
processing & medical mgmt
to provide capital for major up-front
 Requirement for deep
investments
understanding of data quality &
 Frequent regulation & de-regulation
reliability issues as it relates to
cycles – e.g., HIPAA & NPI, NHIN
eligibility, claims, & fraud
 Shorter economic ”product” lifecycles –
 Necessity for a enterprise data
e.g., FSAs
model across disparate sources &
 Increased competition -- e.g., offshore
applications to support complexity
Rx fulfillment, NFPs becoming “for
of healthcare business model
profit”
 Morphing member base demographics
– aging “baby boomer bubble”, “Gen
HIPAA - Health Insurance Portability & Accountability Act
NPI – national provider identifier
X”, etc.
NHIN - national health identification number
 Ever increasing QoS expectations
Healthcare master customer data must be the most accurate, up-tothe-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
CDI Institute MarketPulse™ Survey
12 Healthcare Payer IT Organizations (January 2005)
CDI Business Drivers
Increase customer satisfaction and
retention
75%
Increase profitability
92%
Create operational efficiencies
1
100%
0%
20%
40%
60%
% Responses
© 2006 The CDI Institute
The-CDI-Institute.com
80%
100%
Healthcare Payer/Provider CDI Scorecard:
“Top 3” Technology Challenges
CDI Institute MarketPulse™ Survey
CDI Technology Challenges
12 Healthcare Payer IT Organizations (January 2005)
Increase flexibility to add new
processes via service-oriented
architecture
92%
Integrate with legacy applications and
databases
100%
1
100%
88%
90%
92%
94%
96%
% Responses
© 2006 The CDI Institute
The-CDI-Institute.com
98%
100%
Provide extreme scalability in data
volumes
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
© 2006 The CDI Institute
The-CDI-Institute.com
“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
© 2006 The CDI Institute
The-CDI-Institute.com
#1 Criteria = Customer Data Model

Multi-party model to support complex roles &
relationships

Demographic profile (name, address, phone number, marital

Roles & relationships between parties (including company





status, etc.)
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-thefly – provide a solid CDI foundation
© 2006 The CDI Institute
The-CDI-Institute.com
#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), WSCoordination, 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

Very high performance matching/aggregation/search
Ability to generate or incorporate “universal” master
keys
Cross-reference management – e.g., 1:M support,

Support for all identity types –

Change detection and event mgmt –

Support for privacy regulations –

Non-obvious/intrusive entity resolution


enforcement of cross-referencing
organization
e.g., individual, household,
& validation, in-doubt resolution
of SSN off of any public document
e.g., propagation
e.g., SB-168 (remediation
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




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




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

Multi-modality architectures




Multi-modal security




Virtual/registry
Persistence
Confederation
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




Scalability – e.g., in-memory or cache DBs; just-intime 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

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 & pubsub
CDI solutions should provide rigorous multi-model support for all
usage/integration modes
© 2006 The CDI Institute
The-CDI-Institute.com
#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


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


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.





Corporate agility – Ability to respond, change direction, etc. in
Responsiveness/Development Processes/Flexibility
Personnel – Mix of skills, expertise, experience, etc.



Quality
Breadth
Customization
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
















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)
© 2006 The CDI Institute
The-CDI-Institute.com















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
© 2006 The CDI Institute
The-CDI-Institute.com
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
© 2006 The CDI Institute
The-CDI-Institute.com

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
© 2006 The CDI Institute
The-CDI-Institute.com

Weaknesses



Lack of strong SI
channel
Under invested in
marketing
Lack of CDI references
Field Report:
IBM WebSphere Customer Center (DWL)

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
Weaknesses



BPM story is weak
Only deterministic
matching (until
QualityStage
integration 1Q2007)
“Forced fit” with
WebSphere family
(Product Center,
Integration Center)
Field Report:
Initiate Systems Identity Hub

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

Weaknesses




Lack of strong SI
channel
Under invested in
marketing
Persistence story
unsubstantiated
Lack of integrated
DQ
Field Report:
Kalido MDM

Strengths

Public references



BP, InBev, Owens
Corning, Shell, …
MDM methodology
Reference data
support
© 2006 The CDI Institute
The-CDI-Institute.com

Weaknesses



Lack of strong SI
channel
Under invested in
marketing
Enterprise DW
positioning overlay
Field Report:
Oracle Customer Data Hub

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

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
Field Report:
Oracle-Siebel Universal Customer Master

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

Weaknesses

Public references



Only ENI, MCI, SARS, …
Loss of Siebel staff
due to M&A
Perceived issues in
scaling
Field Report:
Purisma Customer Registry

Strengths




Hierarchy
management
B2B model
Business Objects
integration
partnership
Cross investments
(Informatica,
Hyperion, …)
© 2006 The CDI Institute
The-CDI-Institute.com

Weaknesses



Lack of strong SI
channel
Under invested in
marketing
Scarce references
Field Report:
SAP NetWeaver Master Data Management

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

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)
Field Report:
SAS/DataFlux

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

Weaknesses



Minimal references
Lack of SI channels
Lack of BPM/workflow
for “policy hubs”
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
© 2006 The CDI Institute
The-CDI-Institute.com
Weaknesses




Lack of strong SI channel
Under invested in
marketing
Focus on batch vs. just-intime
“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
© 2006 The CDI Institute
The-CDI-Institute.com
CDI Case Study: United Airlines’
“Enterprise Customer Profile”
Business Issues




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)
Technology Solution



Highly available & scalable
architecture to support
required OLTP levels
Integration among secondgeneration 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
© 2006 The CDI Institute
The-CDI-Institute.com
Case Study: CitiCard’s
“Enterprise Customer Hub” (ECH)
Business Issues







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
Technology Solution



Deployed ECH — vs. frontend 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”
© 2006 The CDI Institute
The-CDI-Institute.com
Case Study: Fleet Financial’s
“Real-Time Customer Data Mgmt”
Business Issues




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
Technology Solution


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 & interapp process integration
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
Business Issues



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
Technology Solution



R/T identity mgmt capable of
scaling to 100 million
customers with sub-second
response times for customerfacing 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
© 2006 The CDI Institute
The-CDI-Institute.com
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
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
© 2006 The CDI Institute
The-CDI-Institute.com
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:

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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
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Kickstart the “CDI evaluation process”
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Finetune in-process CDI strategies
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Due diligence on reference checking & contract details
Stay ahead of curve via CDI Business Council
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Attend public workshop
Bring workshop on-site
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
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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
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