© 2005 IBM Corporation IBM Master Data Management Master Data Management Server v 8.0 Q1, 2008.

© 2005 IBM Corporation

IBM Master Data Management Master Data Management Server v 8.0Q1, 2008

2

Agenda

Master Data Management Market Update

IBM Multiform MDM Strategy – Keep it simple

Introduction to IBM MDM Server v8

– Key Supported Features

– Implementation Styles

– Packaging and Pricing

– CDI Entry Level Concept

Case Studies

3

Gartner’s View of the CDI market

By 2010, the customer data integration hub software market will grow to $706 million, with a five-year compound annual growth rate of 30%.

Source: Gartner’s “Market Share and Forecast: CDI Hub Software, Worldwide, 2005-2010” by Fabrizio Biscotti and John Radcliffe, December 2006

CDI Hub Total Software Revenue,2003-2010

Source: Gartner Dataquest (December 2006)

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010

0%

20%

40%

60%

80%

100%

120%

140%

160%Revenue

Growth

4

Increasing customer recognition that inaccurate product data is the root cause of significant business challenges

Value of PIM extending beyond early adopter industries, e.g. A&D, Industrial manufacturing

Requirements are becoming more complex

– Business drivers such as multi-channel and eCommerce

– Nature of data in new industries (e.g. A&D) is inherently complex

Gartner expectations:

– By 2010, IBM, Oracle and SAP will command more than 50% of PIM SW revenue (0.7 probability)

– No leader will emerge in the PIM market before 2009 (0.7 probability)

0100200300400500600700800900

1000

2005 2006 2007 2008 2009

$214M

$300M

2007 Est. $460M

2009 Est. $860M

Gartner Estimated PIM Market Opportunity

PIM

SW

(li

c.

& m

ain

t.)

$ i

n m

illi

on

s

Source: Magic Quadrant for Product Information Management, 2Q07, Gartner, Inc.

Gartner Estimates Significant Growth in PIM Market

Analysts estimate that IBM will capture significant percentage of PIM market opportunity over next three years

5

Master Data Management Market

Master data management is a large, fast growing, highly fragmented market

– $4 billion software and services in 2005 (IDC)

– >15% CAGR through 2009

– Key infrastructure requirement across all industries

– Consolidation occurring across all segments

– Complexity of integration, scalability, product extensions, and service skills driving investments

IBM views this market as core to Services Oriented Architecture (SOA) strategies

– Enable the delivery of composite applications across heterogeneous environments

– Drive efficiencies and new processes in multi-product, multi-channel, multi-geography based companies

6

Gartner Magic Quadrants

Source: Gartner, Inc. “Magic Quadrant for Customer Data Integration Hubs, 2Q06” by John Radcliffe. May 26, 2006. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from IBM.

Source: “Magic Quadrant for Product Information Management, 2005” Gartner ID: G00139227, Andrew White, Published on 16 May 2006

Gartner Magic Quadrant For Product Information

Management 2007 Magic Quadrant for Customer Data Integration Hubs 2007

7

IBM is #1 rated MDM solution – Perfect Score!IBM’s MDM product portfolio is very threatening to competitors because it leverages best-of-breed DBMS, DW, DI, DQ and data governance products; has been packaged, customized and licensed effectively for the leading MDM horizontal and vertical markets; and is delivered through IBM’s global professional services force. – Current Analysis, Inc.

8

Growth of the MDM Market

IBM already fields one of the strongest MDM suites on the market, having made several DM vendor acquisitions in recent years—most notably, EII/ETL pioneer Ascential—to build up its portfolio, while providing packaged MDM offerings targeted at the CDI and PIM markets. - Jim Kobielus, Current Analysis, October 2007-

By 2012, the market for enterprise MDM solutions (software & services) as both strategic initiatives and to refresh aging legacy MDM capabilities will exceed US$3B…Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors thriving in specific industries & horizontal/corporate applications.

- Aaron Zornes, Chief Research Officer, The CDI Institute, December 2007

Now that MDM is starting to mature it has the potential to become the authoritative way to manage the single trusted view of the customer. - Judith Hurwitz, The Hurwitz Group, October 2007-

9

Agenda








Case Studies

10

Multiform Master Data ManagementThe Application Process and Function Problem

SymptomData is inaccurate, incomplete and conflicts with other systems

Root CauseCommon data and data function is siloed

Data and data functionality common to applications: Customer, Account, Product

CRM Billing ERP

Data and Functionality unique to each application Application-unique

Functionality & Data

CommonFunctionality & Data

Application-uniqueFunctionality & Data




11

Multiform Master Data ManagementDefinition

Definition of Master Data

Key facts describing core business entities

High value information impacting most important business processes

Siloed in multiple processes, applications, and LOBs

CRM Billing ERP eBusiness Application

Common Data = Master DataCommon Functionality & Data Master File








Definition of Master Data Management Application

Support all applications that create and consume master data

Contain configurable functionality to maintain and be the system of truth for master data

Maintain and leverages relationships among master data entities

Manage the complete data lifecycle

Support all implementation approaches

12

Collaborate Operationalize Analyze

Party, Product, Account, Location

Create andDefine

Real-timebusiness services

Insight andAnalysis

MDM Function

MDM Data Domain

Multiform Master Data Management

The Simple Story!Multiform MDM StrategyMaster Data Management has 2 requirements:

1. Data Domains – Manage master data on party, product, account and location – and maintain relationships among them

2. MDM Function –Business processes associated with the Master Data

13

Party PRODUCT

ACCOUNT LOCATION

1. Multiform Master Data Management Defining Domains

Party can reflect any legal entity, whether individual or organization

Product encompasses both physical goods as well as services

Account includes terms and conditions, and associated relationships

Location may serve as a primary or secondary domain

...Not only must these domains be managed but also the relationships among them...

AgentCustomerEmployeeProspectSupplier

PartProduct

Product BundleItem/SKUService

Terms & Conditions

ContractAgreementTransaction

Reward ProgramFinancial Account

LocationAddress

Contact MethodGeography/Region


14

1. Multiform Master Data Management Master Data Domains

An MDM application must manage deep data on a single primary data domain — party, product, account

An MDM Application must manage complex relationships among data domains to gain understanding of master data

Multi-domain Relationship Management

Location

Product

Party

Account

15

2. Multiform Master Data ManagementWhy Multiple Functions?

DataLifecycle

Management

Operational

Analytical

Collaborative

Data is dynamic, not static

Applications that use master data play different roles …

… the same application may create data, consume it, and require analysis of it

One Functional style can trigger another

An MDM System must be able to

1. Provide mechanisms for consistent use of master data across the organization

2. Integrate the functional styles to manage data lifecycle processes

16

Multiform Master Data Management Characterized By Multiple Users, Multiple Usages

Define and create master data



Party (customer, citizen, prospect, organization, supplier, distributor, etc.)

Product (good, service, product bundle, catalogue, product component, etc.)

Account (Agreement, financial account, reward program, etc.)

Define, create and synchronize Master Information

Deliver Master Information as a service for business operations

Drive real time business insight









Operational Business Applications

Real-time SOA data access

OperationalData Usage



Data Creators e.g., Administrators,

trading partners, etc.

Business Applications

CollaborativeData Usage Analytical

Data Usage

Analyze master data

DataWarehouses

Reporting &Analytics

17



Create andDefine


Insight andAnalysis

Consolidation Registry Co-existence Transaction

MDM Function

MDM Data Domain

MDM Implementation Style


The Simple Story! – One Small Addition…

Master Data Management has 2 requirements:

1. Data Domains – Manage master data on party, product, account and location – and maintain relationships among them

2. MDM Function –Business processes associated with the Master Data

… and MDM may be implemented in 4 different styles

18

Multiform Master Data ManagementConsolidation Example

Consolidation Full data model across multiple

data domains Batch import capabilities +

Information Server integration Data stewardship and

governance functionality Batch export to target systems

MDM Database

Full Data Model

Matching

Governance

Batch Import


Batch Export

19

Multiform Master Data ManagementRegistry Example


MDM Database

Index

Source

Virtual View

SourceRegistry

Index (cross-reference) capabilities for any data entity and attribute in the IBM MDM Server database

Search and inquiry services Capabilities for virtual consolidated

view via Information Server capabilities (federated queries)

Data stewardship and matching

20

Multiform Master Data ManagementCo-existence Example

Co-existence

Full data model across multiple data domains

Cross-reference keys, subscription management, and message notification capabilities

Search and inquiry SOA services



MDM Database

Full Data Model

Matching

Governance

Batch Import

Application

Application

Application

21

Multiform Master Data ManagementTransaction Example

Transaction

System of record add and update SOA transactions, with full business logic

Transaction audit logging and database change logging and auditing

Authorization an the data attribute level – rules of visibility to control data access

Transaction processing capabilities – transactional integrity across all business services and ability to participate in enterprise (cross application) transactions



MDM Database

Full Data Model

Matching

Governance

Application

Application

Application

Application

Application

Application

22

Multiform Master Data Management Implementation Styles

Multiform MDM requires multiple Implementation Approaches to ensure customer success

IBM is the only MDM vendor able to deliver on all 4 Implementation Approaches:

The Transaction approach is a superset (100% functionality) encompasses the full functionality of all others

Consolidation, Registry and Co-existence are a partial deployment/use based on specific use cases/requirements

Multiple approaches may be used simultaneously (i.e, single deployment, single install) to meet specific business needs/requirements within:

Data domains or individual subject areas/attributes

Business units

Consuming applications

Geographies


23

IBM Is Uniquely Positioned to Deliver On Multiform MDM Through IBM MDM Server and WebSphere Product Center





Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain


IBM MDM Server and IBM WebSphere Product Center deliver Multiform MDM capabilities

IBM WebSphere Product Center

IntelligenceBusiness rules tomanage events

LeverageAggregate andsyndicate data

Insight User Interface

Knowledge Flexible data model

InteractionUser and Role-based Access

IBM Master Data Management Server

Integrity Action

Intelligence

Data Governance

Knowledge Master Profile

Services in

terface

Business rules to manage events

Rules of visibility

Maintains single record

MDM business services

24

IBM Master Data Management Server IBM MDM Server Addresses Multiple Domains via Operational Functionality

Index Reference Data

System of Record Data

Action Integrity Intelligence

Knowledge Customer Master Profile

IBM WebSphere Customer Center

Business Rules to manage events and data governanceMaintains Single RecordCDI Business Services


IntegrityAction Intelligence

DataGovernance


Services in

terface


Rules of visibilityMaintains Single RecordMDM Business Services


IntegrityAction Intelligence

DataGovernance


Services in

terface


Rules of visibilityMaintains Single RecordMDM Business Services

Multiform MDM is IBM’s strategy for the most complete MDM offering by addressing:

MDM Domains

MDM Functions

MDM Implementation Styles.

IBM MDM Server is first product to deliver significant capability across domain and function. IBM is also able to address multiple implementation styles.

Primarily operational but offers some collaborative and analytical.





Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain








Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain


25

Collaborative Usage of MDM: Manages the process of Creating, Defining, and Verifying

master data Focused on the definition of Master Data that can be

synchronized with Operational and Analytical Systems

Multiform Master Data ManagementWPC Addresses Collaborative Style, Product Domain



Party (Customer, citizen, prospect, organization, supplier, distributor, etc.)

Product (good, service, product bundle, catalogue, product component, etc.)

Account (Agreement, financial account, reward program, etc.)

26

The most experience with Product Information Management implementations

– Largest customers in the world

– Multi-faceted requirements

– Multiple verticals

Ranked as leader by industry analysts

Recognized leader in expanding collaborative and operational requirements for product domain into broader MDM offering

Out of the box functionality

Excels in heterogeneous environments

IBM WebSphere Product Center

WebSphere® Product Center allows companies to create a single, up-to-date repository of product information that can be used throughout their organization for

strategic business initiatives.

27

WPCWPCCustomersCustomers

WPCWPCCustomersCustomers

“Auckland”

“Cambridge”

“Bordeaux”

OperationalOperational

PartyParty AcctAcct ProdProd



CollabCollab



CollabCollab AnalyticalAnalytical

WCC

OperationalOperational PartyParty

WPC

CollaborativeCollaborative ProdProd

Multiform Phase IMultiform Phase I

Multiform Phase IIMultiform Phase II

Multiform Phase IIIMultiform Phase III

WCCWCCCustomersCustomers

WPC


WPC


“Glendale”

“Hollywood”

IBM MDM Server – Release Summary

Technology Benefits• Cross-domain capabilities• Manage Risk & Compliance

Master Data Lifecycle Support• Manage Information Complexity• Optimized Infrastructure

Business Benefits• Revenue Enhancement• Customer Care• Thread and Fraud• Services Optimization• Operational Efficiency

2008

2009

2010

IBM Maste

r Data M

anagement Serve

r

28

Agenda








Case Studies

29



Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain


Multiform Master Data ManagementOperational MDM

Operational Function of MDM:• Use and Maintenance of Master Data occurs within

Operational process/applications• Master Data is consumed by other systems via real-time

accessible SOA Services

30



Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain




Create andDefine


Insight andAnalysis

MDM Function

MDM Data Domain


Manages the complete master record for operational customer data to all systems & channels

Capable of being the system of record – with full transaction processing and business logic capabilities

Provides accurate and complete customer data to all operational business processes that require customer data– Improved and

differentiated customer service

– Increased revenue via improved cross-selling and event management

– Ability to persist ‘new’ customer data such as privacy preferences, events, and multi-channel interactions

– Regulatory compliance

IBM Master Data Management Server v. 8.0

31

Action – 100% service oriented – every function is a business service to maintain the master customer profile– More than 700 large and fine grain business services

Integrity– Data quality components are integrated with MDM business services– Detection of duplicate parties, data validation rules– Data stewardship UI – managing data and data quality within MDM Server customer master profile

Intelligence– Business rules – event detection and notification– Critical data change management

Data Governance– Privacy, data security & governance – manage user/role access to data at a granular level

Knowledge– Party-centric model with complex hierarchies– Contains operational database and history/audit trail database to maintain master data audit trail

MDM Server is a service-oriented business application

Note: all information represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives


Integrity

Intelligence

Data Governance


Services in

terface


Rules of visibility


Action


32

IBM Master Data Management ServerAdding a New Customer

Action- MDM Server kicks off a large grain business service called ‘add new customer’ to begin transaction

Knowledge – MDM Server houses and stores the new record

MDM Server’s Integrity and Intelligence called on to perform search, data validation, party matching and event notification capabilities to ensure accuracy of data and notification to other systems

Data Governance provides security around who can view and edit the data

Action

Intelligence Integrity

Knowledge

Check UserAuthorization

Duplicate SuspectProcessing

Information Integrator forStandardization & Matching

Event Notification NewCustomer Added

Add Customer

Search Person

Check forDuplicates

Add Customer

Name

Address

Contact Method

Identification

Relationship

Financial Profile

33


Integrity

Intelligence

Data Governance


Services in

terfaceBusiness rules to manage events

Rules of visibility

Maintains single recordAction


IBM Master Data Management Server Multiform MDM Function - Operational

Designed for integration to multiple applications

Contains both large and fine grain services

– Add customer, value package management, add product (large grain)

– Update phone number, add hierarchy node (fine grain)

Flexibility

– Easily extend or build new services from existing services

Business Logic components integrated with business services

Rules of visibility to authorize data access

Critical data change business rules

Event processing

Duplicate suspect processing

34

IBM Master Data Management Server Multiform MDM Function - Operational


Integrity

Intelligence

Data Governance


Services in


Rules of visibility



New business services– Account & agreement– Value package management– Product– Product category & hierarchy management– Know-your-customer compliance– Needs analysis– Person and organization demographics

Coarse grain cross-domain business services

35

IBM MDM Business Services - Categorization

Party Demographic Services

Data Stewardship Services

Party Financial Profile Services

Roles-related Services

Party Relationship Services

Party Identification & Directory Services

Customer Service and Sales Services

Location Services

Events & Customer Insight Services

Account Services

PartyBasic Demographics

Definable DemographicsParty NamesParty ValuesParty SearchDelete Party

Delete Party History

Party Macro RolesContract Party Roles

Rebate/Claim Party RolesGrouping Party RolesHierarchy Part Roles

Relationship Party RolesSearch by Party Role

Interaction HistoryCampaigns

PrivacyCustomer Preferences

Party Values (Value Profile)Notes/Alerts

Party RelationshipsParty Grouping

Hierarchy ManagementRole RelationshipsLine of Business

AddressContact Method

HouseholdLocation GroupRole Location

Address StandardizationAddress Demographics

Party EventsEvents

Customer Value ProfileCorruption Management

Duplicate Suspect ManagementCollapse/Split Parties

Aggregate View DuplicatesCollapse with RulesSource System DataData Decay Metadata

Suspect SearchCreate Search

Bank AccountCredit Cards

Payroll DeductionIncome Source

Party Identification RegistrationParty Equivalency ID

Search Party Equivalency IDSystem Key ID

Acxiom Abilitec KeyRetrieval

Contract

Contract Details

Contract Terms & ConditionsContract T&C Override

Contract-Product Relationships

New in IBM MDM Server v8

Contract Services

ContractContract ComponentContract Party RoleContract Location

BillingRebate/Claim

Contract Note/AlertContract Search

Contract RelationshipHolding

History & Audit Services

Product Services

Party History Audit TrailAccount History Audit Trail

Transaction Audit LogDelete Party History

ProductProduct Type Hierarchy

Product ValuesProduct Search

Product Terms & ConditionsProduct Relationship T&C

Product Category HierarchyProduct Identification

Product Equivalency IDProduct Content Mgmt Ref

Product RelationshipsCategory Hierarchy Equivalency

Category Hierarchy SearchCategory Hierarchy Values

Product History Audit Trail

Terms & ConditionsTerms & Conditions Parameters

Contract Party Role

Contract Location


Contract RelationshipValue Package Management

Needs Analysis KYC Questionnaire

Contract Component

36

IBM Master Data Management Server Multiform MDM Function - Collaborative


Integrity

Intelligence

Data Governance


Services in


Rules of visibility



Integration with Information Server Quality Stage

– Probabilistic matching

– Standardization

Data Stewardship Application enhancements– Task management– Party management

capabilities– Data decay and recency– Hierarchy management– Grouping and relationship

management

37


Integrity

Intelligence

Data Governance


Services in


Rules of visibility



IBM Master Data Management Server Multiform MDM Function - Analytical

Event management engine– Detect master data events– Trigger actions – notification

messages

Integration with IBM Industry Model Data Warehouses– Banking Data Warehouse– Insurance Information

Framework– Telco Data Warehouse– Retail Data Warehouse

Ability to interface with insight stored within DW or store value profiles within IBM MDM Server

38

IBM Master Data Management Server Platform Features


Integrity

Intelligence

Data Governance


Services in


Rules of visibility



Flexibility

Multiple extension methods – dynamically extend/add data model via multiple mechanisms.

Data model/service configuration (rename and disable parts of the product)

Performance

Performance management reporting

Performance optimization

Federated Deployments

Multiple application instance deployments

Data Validation Engine

Message Notification Engine

Common Audit Trail

Metadata management

Integrated platform tooling – Development, Test & Deployment

39

Single view of

CUSTOMERSingle view of

PRODUCT

Master

ACCOUNTrecord

Single view of

LOCATION

Replication of data in siloed projects

Requirements grow over time and require different POVs


PartProduct


Terms & Conditions



LocationAddress

Contact MethodGeography/Region

IBM Master Data Management Server Multiform MDM Data Domains


IntegrityIntelligence

Data Governance


Services in

terface


ActionMDM business

services

40




Data Governance


Services in

terface


ActionMDM business

services

Party

Account

Product

Location

Hierarchy

Identification

Relationships & Groups

Events & Insight

Roles

Interactions

Terms & Conditions

41




Data Governance


Services in

terface


ActionMDM business

services

Party

Interaction

Privacy

Contract and Product

Events and Insight Identification

Data Stewardship

Financial Profile

Roles

Relationships

Location Demographics

Party model with support for different

Party Roles


KYC Compliance

42




Data Governance


Services in

terface


ActionMDM business

services

Cross-reference

Keys

Account to Product

Relationship

Account to Party Role

Account Account Alerts

Account Components

Agreement

Terms and Conditions

Account Relationships

Account



Account model with support for different

Party Roles

– Base Contract

– Relationships to Party

– Relationships to Product

– Contract Terms and Conditions

– Contract Services

– Value Package Sample

43

Account MDM Domain – The natural evolution

Customer Domain always had the notion of “holdings” as those items that make the customer a customer

These where initially expressed as agreements (in fin. serv.) or contracts (other industries)

As customer centricity objectives advanced, a more comprehensive need emerged: a comprehensive ability to offer,

capture and administrate accounts for customers, that can support complex “holdings”, i.e. wide-ranging products, services

subscriptions, product owned/registered, etc. or bundled versions thereof

Account is a natural linkage point between the customer (party) and product domains

Retail Examples: Store Card Accounts, Contracts with Suppliers etc.

– The Account domain would be used to manage the Contract between a Retailer and Vendor (Supplier)

– The Account domain would be used to manage the Contract (Store Card Account) between a Retailer &

Customer

44

MDM Account

MDM Account provides a single source of truth of accounts and relationships among accounts.

– It can be used to offer new services for existing accounts• Consolidated Statements• Consolidated Billing & Payments• Account Sweeps• Rewards Points across accounts

– It can be used to offer new products by aggregating existing accounts• Value Packages

MDM AccountMDM Account

Savings System Credit SystemCheque System

Value Package XValue Package X(Managed Account)(Managed Account)

ChequeChequeAccountAccount

(Ref Account)(Ref Account)

SavingsSavingsAccountAccount


CreditCreditAccountAccount


ChequeChequeAccountAccount

SavingsSavingsAccountAccount

CreditCreditAccountAccount

In all cases, the Account hub is made up of Managed Accounts and Reference Accounts

– Managed Accounts are system of record and can be transacted against.

– Reference Accounts are managed in other systems (analogous to WCC contract)

IBM MDM Server v8.0 focuses on foundational and value packages.

45

Account Details

Account Services

Contract

Contract Details

Contract Terms & ConditionsContract T&C Override

Contract-Product Relationships

Contract Party Role

Contract Location


Contract RelationshipValue Package Management

Examples of some elements added to contract:agreement type, agreement status type, service level type, managed account indicator, agreement name / nickname, signed / executed / terminated dates…

46

Value Package Example

How do we govern the terms and conditions of a value package?

– Value Package product is defined using product structure

– This includes terms and conditions with attributes

• Eg, “Core components must be in a valid status” with attributes “normal-open”, etc

– When a Value Package is sold to a customer, a contract (account) is created with relationships to the contracts included in the package.

– When a subsequent transaction updates contract details (for a reference account), event manager entries created. Rule executed to re-evaluate conditions.

Have ideas on how to advance design around terms and conditions to provide more support for condition evaluation. Looking for feedback. Also with other topics such as product model.

47

Value Package (Product Bundle) Example

Account Domain

Savings System Credit SystemCheque System

“Triple Account” Value Package(Managed Account)

CheckingAccount

(Ref Account)

SavingsAccount

(Ref Account)

CreditAccount

(Ref Account)

CheckingAccount

SavingsAccount

CreditAccount

PartyProduct

48




Data Governance


Services in

terface


ActionMDM business

services

Service

Hierarchy

Terms and Conditions

Cross-reference

Keys

Category

Good

PartProduct


Terms & Conditions

Product

Product model with support for different

Party Roles

Features

– Base Product

– Product Type Hierarchy

– Product Dynamicity

– Product Terms and Conditions

– Category Hierarchy

– Localization

– Product Services

49

Product Domain

Support for large, complex product implementations

– Millions of products and relationships

– Complex data model requirements

– Validation framework

– Auditing and Effectivity Dating

Out of the box product data model

– Flexible and Extensible

– Standards based

– Links to other data domains

Support for complex product structures and relationships

– Item to Item, Up-Sell, Cross-Sell, Bundles, Packaging Hierarchy

– Support for multiple product hierarchies and mapping

– Inheritance

Out of the box business services

50

MDM Product

MDM Product provides a single source of truth for product information.

– When deployed as a “Collaborative Hub” supports the collaborative authoring of products.

– When deployed as an “Operational Hub” provides product information out to the enterprise.

Basic constructs include Products, Relationships, Product Catalogs, Product Terms and Conditions.

Product domain addresses the fact that different types of products have different attribution associated to them.

– The definition of a CS service is different than the definition of a credit card product which is different than the definition of a deposit account product…

IBM MDM Server v8.0 focuses on foundational and the Operational Hub style.

51

Product Details

Product Services

ProductProduct Type Hierarchy

Product ValuesProduct Search

Product Terms & ConditionsProduct Relationship T&C

Product Category HierarchyProduct Identification

Product Equivalency IDProduct Content Mgmt Ref

Product RelationshipsProduct History Audit Trail

Category Hierarchy EquivalencyCategory Hierarchy SearchCategory Hierarchy Values

Terms & ConditionsTerms & Conditions Parameters

Credit Facility Deposit Prod

Card Product Loan Product

52

Sample Set of Services

AddProductInstance

UpdateProductInstance

GetProductInstance

SearchProductInstance

AddProductAdminSysKey

UpdateProductAdminSysKey

GetProductAdminSysKey

GetProductAdminSysKeyByProductId

GetProductAdminSysKeyByIdPK

GetAllProductAdminSysKeys

AddProductIdentifier

UpdateProductIdentifier

GetProductIdentifier

GetAllProductIdentifiers

AddProductInstanceRelationship

UpdateProductInstanceRelationship

GetProductInstanceRelationship

GetAllProductInstanceRelationships

AddProductType

UpdateProductType

GetProductType

GetAllProductTypes

AddProductTypeSpecUse

UpdateProductTypeSpecUse

GetProductTypeSpecUse

GetAllProductTypeSpecUsages

GetAllProductSpecs (bordeaux)

CategorizeProduct

CategorizeProducts (bordeaux)

UpdateProductCategoryAssociation

RecategorizeProduct (bordeaux)

GetAllProductCategoryAssociations

GetProductCategoryAssociation

GetAllProductsInCategory

About 20 Category-Hierarchy services not shown in this list

TermCondition services not shown in the list.

53

Product Bundle Example

Starving Student Bundle

Student Checking Product

Student Savings Product

No Frills Credit Card Product

iPod

Status = ActiveStatus = Credits Only

Discount = 5%

Starving StudentBundle Shell

(managed account)

Student Checking Account(reference account)

Student Savings Account(reference account)

Credit Card Account(reference account)

Will receive a rate discounton the credit card

Discount = 7%

Joe Eager (Student)

Free iPod if accounts in goodstanding after three months

Will receive a rate discounton the credit card

override

Account DataProduct Data

The accounts within the bundlemust be in a valid status

54

Implementation Approaches

Multiform MDM requires multiple Implementation Approaches to ensure customer success

IBM is the only MDM vendor able to deliver on all 4 Implementation Approaches:

The Transaction approach is a superset (100% functionality) encompasses the full functionality of all others

Consolidation, Registry and Co-existence are a partial deployment/use based on specific use cases/requirements

Multiple approaches may be used simultaneously (i.e, single deployment, single install) to meet specific business needs/requirements within:

Data domains or individual subject areas/attributes

Business units

Consuming applications

Geographies


55

IBM Master Data Management Server Implementation Styles


Batch import capabilities + Information Server integration

Data stewardship and governance functionality

Batch export to target systems


Integrity

Intelligence

Data Governance


Services in


Rules of visibility




56


Index (cross-reference) capabilities for any data entity and attribute in the IBM MDM Server database

Search and inquiry services

Capabilities for virtual consolidated view via Information Server capabilities (federated queries)

Data stewardship and matching


Integrity

Intelligence

Data Governance


Services in


Rules of visibility




57



Cross-reference keys, subscription management, and message notification capabilities

Search and inquiry SOA services


Integrity

Intelligence

Data Governance


Services in


Rules of visibility




58


System of record add and update SOA transactions, with full business logic

Transaction audit logging and database change logging and auditing

Authorization an the data attribute level – rules of visibility to control data access

Transaction processing capabilities – transactional integrity across all business

services and ability to participate in enterprise (cross application) transactions


Integrity

Intelligence

Data Governance


Services in


Rules of visibility




59

Key Business Drivers for MDM

Revenue Enhancement – More intelligent cross-sell & up-sell via complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities

Consistent Customer Treatment – Blending channels to deliver common customer interactions /experiences across all touch points

Operational Savings & Efficiencies – “Once & done” enterprise-wide services for key customer processes such as account changes (name, address)

Privacy & Regulatory Compliance – Central location for consistent rules of visibility & entitlements

M&A Infrastructure – Shortening M&A customer, desktop, & billing integration timeframes

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Is a high value web customer

Yet… to the call center she is completely unknown

Jane places an order via the contact center

The call center rep does not see that Jane is a High Value customer

And is not given the discount promotion she is offered on the web site

Name: Jane F. Smith

Inconsistent Customer TreatmentSiloed views of customer information lead to inconsistent customer service.

Web Site

Name: Jane Smith

Address: 437Easy Street

Address: 123Main Street

Sales HistoryProduct: 1234, 5748

Sales HistoryProduct: 6574

Jane Smith

Customer Value:High

Preferences

Name:

Address

High valuecustomer 10% off

StoreContact Center

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Customer-centric Business Service

Privacy Preferences: Solicitation - No

Sales History: Product 1234, 5748, 6574

Name: Jane F. Smith

RelationshipsHousehold:

Daughter – Jenny Husband – JohnEmployer – IBM

Life Events:Daughters Birthday

Wedding Anniversary

Demographics:Income - $100,000Interests - Running

Age - 41

Identifier IDs

Agreements & Contracts:

Service ContractWarranty

X-Sell Up-Sell: Items 5432, 4355

Web Site StoreContact Center

Jane Smith

MDM Server business services provide every customer interaction point with the complete view of the customer

Jane is now viewed and treated equally across channels

And Service Improves…

“Yes I do see the order you placed on 2/2.”

Did you know you qualify for a discount promotion?”

“Would you like me to send that to your home address?”

Consistent customer treatmentDeliver common customer interactions / experiences across all touch points.

getParty Service

Interaction History:Service Issue 4/23/06

Web Order 2/2/06Store Order 1/5/06

Customer Value: High

Address: Home - 123 Main St

Billing – 437 Easy St

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The marketing department wants to offer this ideal customer bundled products to increase revenue and drive customer loyalty

Operational systems are not capable of managing bundles, which are relationships among existing products

The result is significant manual effort and cost to create the illusion of a bundle (e.g., manually discounting a product in multiple systems) and no way to manage or track the bundle over time

Operational Inefficiencies Problem: Inability to sell and service bundled product

Web Site

Name: Jane Smith

Address: 437Easy Street

Sales HistoryProduct: B, 2234 68

Product 3345 67

Jane Smith

Customer Value:High

Product C

Product A:

Product BDiscounted

High valuecustomer 10% off

Product Sys 2Product Sys 1

Product 2234 68Discounted

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Customer-centric Business Service

Privacy Preferences: Solicitation - No

Sales HistoryProduct: B, 2234 68

Name: Jane F. Smith

RelationshipsHousehold:

Daughter – Jenny Husband – JohnEmployer – IBM

Life Events:Daughters Birthday

Wedding Anniversary

Demographics:Income - $100,000Interests - Running

Age - 41

Identifier IDs

Agreements & Contracts:

BundleService Contract

Warranty

X-Sell Up-Sell: Items 5432, 4355

Web Site Product Sys 2Product Sys 1

Jane Smith

MDM Server lets you manage the terms and conditions of the product bundle

It lets you manage eligibility – who can buy the bundle, and at what terms and conditions

Account – service the bundle once purchased

MDM Server manages bundle data – the discount, relationships, Terms & Conditions

Operational Savings and EfficienciesLower costs by managing and servicing valuable product bundles centrally.

Interaction History:Service Issue 4/23/06

Web Order 2/2/06Store Order 1/5/06

Customer Value: High

Address: Home - 123 Main St

Billing – 437 Easy St

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Agenda








Case Studies

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MDM Packaging and Pricing Highlights

Tiered approach helps maintain value based price point

Pricing done through Passport Advantage via offline calculator

More simplistic than previous WCC model

Will provide more consistency in pricing

Reduces need for heavy discounting

Collapsed number of Party record types

Sold with Value units as the pricing metric

New structure for selling according to functional style

More enablement coming prior to launch***

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MDM Server: Overview of Chargeable Components

Sold with Value Units as metric

Value units calculated on three factors: – Industry (5)

• 5 choices – align with IBM Sectors (i.e. COMM, DIST, FSS, IND, PUBLIC)– Types of Records (4)

– Functional Usage Styles (2)• Foundation is pre-requisite for Transaction Hub• No relevant product functionality at this time for Transaction Hub usage style

for Product record type

Industry: XYZ Types of Records

Functional Usage Styles

Party: Individual Party: Organization Account Product

Foundation

Transaction Hub

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MDM Server Pricing: Step 1 – Industry

MDM Server’s LI (and calculator) will include all industries in IBM’s standard sector/industry definitions (see below)

Communications Sector

Distribution Sector

Financial Services Sector

Industrial Sector Public Sector

Telecommunications

Media& Entertainment

Utilities

Retail Industry

Consumer Products

Travel & Transportation

Banks

Financial Markets

Insurance

Automotive

Electronics

Aerospace & Defense

Chemical & Petroleum

Industrial Products

Government

Education

Health

Life Sciences

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Types of Records

Party: Individual Party: Organization Account Product

A Party: Individual record describes an actual person

represented. Examples of Party: Individual include: person

customer, person prospect, employee, agent, broker, and

citizen.

A Party: Organization record describes a recognized legal

organization or logical grouping of individual person parties. Examples

for party-organization include: organization customer, organization prospect, supplier, vendor, and any

group defined legal entity.

An Account describes a contract or agreement that is owned by an individual (an actual person) or

recognized legal organization or logical grouping of individual person parties.

Examples for Account include: a savings account, an insurance policy,

and a service agreement

A Product record describes a finished physical good or

contract or agreement that is offered to either individuals or organizations. Examples of

Product include: a box of cereal, a food processor, a savings

account, an insurance policy or a service agreement.

MDM Server Pricing: Step 2 – Records Customers will determine the number and type of records required based on the following 4 categories

of records:

– Party: Individual

– Party: Organization

– Account

– Product

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Customers will determine the Functional Usage Style(s) required for their deployment needs

Customers may need both Foundation and Transaction Hub to address their needs

Purchase of the Transaction Hub usage style mandates a pre-requisite of the Foundation usage style for that particular Record category

– E.g. If a customer requires a Transaction Hub Usage style for their Party: Individual records, the customer would need to purchase both Party: Individual – Foundation and Party: Individual – Transaction Hub

MDM Server team plans to install ITLM compliance switches for second release of MDM Server


Foundation The Foundation functional usage style describes when the MDM Server is used to store and use party data as an Index, Operational Data Store, or referential system.

Transaction Hub The Transaction Hub functional usage style describes when the MDM Server is used as a system of record in a transactional manner. The Transaction Hub functional usage style pre-requisites the Platform functional usage style for any given category of Record.

MDM Server Pricing: Step 3 – Functional Usage Style

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PARTY ACCOUNT PRODUCT


Foundation Indexes & Source Values: party equivalency, native key, product x-ref table, default source value, granular services, contract role

Basic Party data & functionality: person, org, person name, org name, identifier, granular data services, large grain services (data centric), data validation engine, data decay

Supporting part data & functionality: org type, industry type, party misc values, financial profile (bank accts), person and org demographics, income source, granular data services, privacy data (no rules/defaults)

Hierarchy & grouping & relationships: hierarchy, grouping

Alerts: notifications, party alert, account alert, campaigns

Interactions: interactions

Duplicate suspect processing & matching engine: data steward UI, Dup suspect services & tables, Evergreen app, Data corruption mgmt

Other: History, D&B

Basic account data (reference data): Contract and contract component, billing summary, claims

Product Data: all basic services in v8 release

Transactional Hub Advanced party data & functionality: LOB relationships, critical data change management (pending), advanced duplicate suspect processing (known duplicate) management, federation services, KYC & needs analysis, ROV, macro role, coarse grain business services, transaction security & user authentication, delete services, privacy rules/defaults, large grain services (business functionality)

Events: event manager, evergreen

Other: Axciom, Fast Track, ILOG

Account relationships

Value package management (all relationship services)

MDM Server Pricing – More detail

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Agenda







– CDI Entry Level Concept – MDM CoreAdvantage

Case Studies

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Current Challenges in the MDM Market

We are seeing niche vendors in more and more deals

Past WCC messaging reemphasizes competitor's messaging

– One size fits all not as effective

Desire to increase volume of MDM deals

Difficulty deploying POCs

Implementation effort seen as too large and expensive

Customer misperception that one vendor fits one style

Customer having limited capital resources to start their projects

More than 98% of WCC phase I implementations are Coexistence/Registry and NOT Transactional!

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MDM CoreAdvantage Concept

Project team in place building capability

Availability expected end of Q1 2008

Built on MDM Server v8

Will be priced via Foundation for MDM Server Pricing Model

Leverages Information Server v8

– Data Stage for Initial Load, delta updates

– QualityStage for Standardization and Matching

– Information Analyzer for data analysis

Implementation options for multiple phases

– Each phase less than 2 months/200K

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PARTY ACCOUNT PRODUCT


Foundation Indexes & Source Values: party equivalency, native key, product x-ref table, default source value, granular services, contract role

Basic Party data & functionality: person, org, person name, org name, identifier, granular data services, large grain services (data centric), data validation engine, data decay

Supporting part data & functionality: org type, industry type, party misc values, financial profile (bank accts), person and org demographics, income source, granular data services, privacy data (no rules/defaults)

Hierarchy & grouping & relationships: hierarchy, grouping

Alerts: notifications, party alert, account alert, campaigns

Interactions: interactions

Duplicate suspect processing & matching engine: data steward UI, Dup suspect services & tables, Evergreen app, Data corruption mgmt

Other: History, D&B

Basic account data (reference data): Contract and contract component, billing summary, claims

Product Data: all basic services in v8 release

Transactional Hub Advanced party data & functionality: LOB relationships, critical data change management (pending), advanced duplicate suspect processing (known duplicate) management, federation services, KYC & needs analysis, ROV, macro role, coarse grain business services, transaction security & user authentication, delete services, privacy rules/defaults, large grain services (business functionality)

Events: event manager, evergreen

Other: Axciom, Fast Track, ILOG

Account relationships

Value package management (all relationship services)

MDM Entry Level Offering

MD

M C

ore

Ad

van

tag

e

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How to recognize an entry-level opportunity?

Are you competing against niche vendors(Siperian, Initiate, Purisma,…)

Does your customer only need access to basic party data?

Is your prospect not requiring bi-directional real-time updates?

Does your prospect have severe budget limitations?

Is your customer mainly concerned on short term results?

Is the scope defined to a single department or LOB?

Are there only one or two channels of many being integrated?

Information Management

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Recent Win - Physicians Mutual Insurance Company

Engaged in head to head competitive situation with Siperian Siperian had offered low license price of less than 500K

First WCC quote was 1.5 million

Siperian already had “verbal” agreement for POC

How we won the deal

Competitive Situation

IBM was the preferred choice from a strategic perspective

Executed a 4 week POC and stopped Siperian POC effort

Gave a competitive license price based on PM requirements

Bundled in QualityStage for 356K license price

Company Overview

Life and Health insurance provider

Approx 1 million customers

Big IBM shop – extensive user of IAA model


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Classic Example of Style ProgressionBUSINESS PROBLEM

Guest data scattered across dozens of property and reservation systems

Inability to recognize high value guests and target for reward program membership

Poor data quality and inability to recognize customers

SOLUTION

Phase 1 Phase 2 Phase 3

Implementation Registry Registry, Co-existence, Transaction hub

Transaction hub, Registry, Co-existence

Function Operational Operational, Collaborative

Operational, Collaborative

Data Guest, reservation Guest, reservation, preferences

Guest (deep), reservation, preferences

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IBM MDM Server

The most experience - numerous proven high volume MDM implementations

Ranked as leader by industry analysts

The most complete MDM application available to the market - significant out-of-the box MDM application functionality

Enables any MDM strategy - simple or the most complex – or anything in between

Allows for phased, multi-style, multi-phased implementation

Begin with our proven rapid start implementation

Evolve to any level of complexity and scale using the same platform, technology and skills


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79

Appendix

Case studies

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Client Example Consolidation, Co-existence, & Transaction style

• Full understanding of business relationship with clients

• Need to understand credit risk

• Improve credit decisioning

• Improve ability to provide complete Basel II compliance

Challenge

Solution & Components

APPROVED FOR EXTERNAL USE


Implementation Consolidation Consolidation, Co-existence


Usage Style Operational Operational, Collaborative


Data Party(Person, Organization); D&B data

Party, Account, D&B data

Party, Account, D&B data

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BUSINESS PROBLEM

– Guest data scattered across dozens of property and reservation systems

– Inability to recognize high value guests and target for reward program membership

– Poor data quality and inability to recognize customers

SOLUTION


Implementation Registry Registry, Co-existence, Transaction hub


Function Operational Operational, Collaborative


Data Guest, reservation Guest, reservation, preferences

Guest (deep), reservation, preferences

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BUSINESS PROBLEM

– Multiple brands from acquired companies – no single face to the customer

– Low cross selling rates across LOB

– High costs, operational inefficiencies

SOLUTION & COMPONENTS


Implementation Registry Transaction, registry Transaction, registry, co-existence

Function Operational, Collaborative



Data Person customer, name, address, ID, account, data stewardship

+ privacy preferences (SOR)

+ Person customer (deep), account (reference data), privacy preferences

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BUSINESS PROBLEM

– Client data fragmented across multiple systems – inability to deliver a consolidated view of the customer

– Inability to effectively cross sell to customer base

– Inability to introduce service differentiation and efficiencies



Implementation Transaction - Retail Transaction - Institutional

Transaction, consolidation



Operational, analytical

Data Party (deep), location, account & claims (reference),

Party (deep), location, account & claims (reference),

Party (deep), location, account & claims, insight value scores

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BUSINESS PROBLEM

– In the process of implementing new web-based ATMs across the entire banking company. Their existing CIF system didn’t have the ability to store ATM customer preferences without significant costs for changes

– Need to eventually replace core CIF

– Integrate with the Banking Data Warehouse for Basel II compliance



Implementation Registry,

Transaction

Consolidation, registry

Transaction, consolidation, registry

Function Operational Operational, collaborative, Analytical

Operational, analytical, collaborative

Data Party (light), account (light), preferences

Party (deep), location, account (reference)

Party (deep), location, account & claims, insight

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BUSINESS PROBLEM

– Customer and policy information scattered across multiple applications and lines of business

– Needed to shift operational focus from product-centric to customer-centric

– Inefficiencies in sales and back-office systems due to redundant processes



Implementation Transaction – LOB 1 new business processing

Transaction – Additional LOB 50+ apps integrated where IBM is system of record

Transaction, Co-existence style for smaller LOB

Function Operational Operational, Collaboration Operational, Collaboration

Data Party (deep), account (policy), product, location

Party (deep), account (policy), product, location

Party (deep), account (policy), product, location

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BUSINESS PROBLEM

– Customer and policy information scattered across multiple applications and business units

– Lacked consistent practices for data cleansing and matching with application-independent rules and processes

– Need single customer view for web-based account management, privacy management, and improved compliance and cross-selling



Implementation Transaction (new business)

Transaction, Co-existence

Transaction, Co-existence




Data Customer (location, privacy); Mutual Fund (account)

Customer (location, privacy), Org; Mutual Fund, Policy

Customer (location, privacy), Org; Mutual Fund, Policy

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Notice The MDM Pattern?Simultaneously address multiple requirements

Initial MDM Deployments

Business ValueImplementation

ApproachesCustomerSuccessFunction Domain

Operational CustomerPartyAccount

Account/policyProduct

Streamline new business process to increase revenue and retention

Operational Collaborative

CustomerParty

Capture preferences to increase customer retention and revenue

LocationProduct

Enhance customer identification and service across all hotels and brands

OperationalGuestLocationParty

HierarchyLocation

Enhanced sales and executive planning via complete relationship understanding of customers and suppliers

OperationalCollaborative

CustomerSupplier

RegistryCo-existence

ConsolidationCo-existence

RegistryTransactional

Co-existenceTransactional

CustomerAccountParty

RegistryTransaction

Increased ability to cross-sell/up-sell, while reducing IT related costs

OperationalCollaborative

ProductLocationSupplier

Automated and streamlined New Product Introduction processes

Collaborative Co-existenceConsolidation

© 2005 IBM Corporation IBM Master Data Management Master Data Management Server v 8.0 Q1, 2008.

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Transcript of © 2005 IBM Corporation IBM Master Data Management Master Data Management Server v 8.0 Q1, 2008.