April 10, 2014 Mastering the Fundamentals: Data Governance to Unify MDM...

Mastering the Fundamentals: Data Governance to Unify MDM,

Cloud & Social

Phoenix DAMA Meeting

April 10, 2014

Aaron ZornesChief Research Officer

The MDM [email protected]

www.linkedin.com/in/aaronzornes @azornes

+1 650.743.2278

© 2014 The MDM Institute www.The-MDM-Institute.com

About the MDM Institute

Founded 2004 to focus on MDMbusiness drivers & technology challenges

MDM Advisory Council™of 150 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects

MDM Business Council™ website access & email support to 35,000+ members

MDM Road Map & Milestones™annual strategic planning assumptions –e.g., http://tinyurl.com/MDM-next-gen

MDM Market Pulse™ monthly surveys

MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European & Asia-Pacific metro areas

MDM & Data Governance Summit™ annual conferences in NYC, San Francisco, London, Singapore, Sydney, Toronto & Tokyo (**Shanghai in 2014)

“Independent, Authoritative, & Relevant”

About Aaron Zornes Leading industry analyst authority on topics of MDM, CDI, RDM & Data Governance

Founder & Chief Research Officer of the MDM Institute Conference chairman for MDM & Data Governance Summit conference series

Founded & ran META Group’s largest research practice for 14 years M.S. in Management Information Systems from University of Arizona


http://tinyurl.com/MDM-next-gen

MDM Institute Advisory Council

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

Representative Members Nationwide Insurance NetApp Norwegian Cruise Lines Novartis PC Connection Polycom Pratt & Whitney Canada Qwest Roche Labs Rogers Communications Scholastic Stryker SunTrust Sutter Health TNT Express Telkom South Africa UCB Pharma Visa Europe W.W. Grainger Westpac Weyerhaeuser Woolworths Australia

© 2014 The MDM Institute www.the-MDM-Institute.com

3M Allergan BCD Travel Bell Canada Caterpillar Cisco Systems Citizens Communications COUNTRY Financials Educational Testing Svcs EMC GE Healthcare Home Depot Canada Honeywell Information Handling Svcs Intuit Loblaw McKesson Médecins Sans Frontières Medtronic Microsoft Motorola National Australia Bank

MDM & Data Governance Summit™Conference Series

“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”

MDM & Data Governance Summit Europe 2014

Radisson Portman BLU - London ▪ May 19-21, 2014

MDM & Data Governance Summit Tokyo 2014

Belle Salle Iidabashi First – Tokyo ▪ June 12-13, 2014

MDM & Data Governance Summit San Francisco

Hyatt Fisherman’s Wharf– San Francisco ▪ June 17-18, 2014

MDM & Data Governance Summit Toronto

The Carlu ▪ July 8-9, 2014

MDM & Data Governance Summit Asia-Pacific 2014

Doltone House, Darling Island Wharf – Sydney ▪ July 29-31, 2014

MDM & Data Governance Summit New York

Sheraton Times Square ▪ October 5-7, 2014

MDM & Data Governance Summit Shanghai 2014

Shanghai International Convention Center ▪ Fall 2014

MDM & Data Governance Summit Singapore

Marina Bay Sands Resort ▪ November 2014


MDM Market Growth**

CDI (MDM of Customer) s/w US$644 million market YE2012

US$1 billion by YE2015

PIM (MDM of Product) s/w -- incl store content info &

metadata

US$688 million market YE 2012

US$1.1 billion by YE2015

> 50% of MDM revenue is led by offerings from small & best-of-breed vendors Therefore overall market surge will likely bring with it a

host of smaller competitive mergers in addition to more specialty vendor buyouts by four largest MDM providers – IBM, Informatica, Oracle & SAP.

© 2014 The MDM Institute The-MDM-Institute.com

** Source: Gartner Research

Recent EMEA Uptake of MDM

Rusatom

RussiaEnergy

Ruukki

Sartorius Werkzeuge

Sberbank

Société Générale

Sociale Verzekeringsbank

Sogei S.p.A.

Sonae

Saint-Gobain

Stallergenes

Syngenta

Swisscom

SwissGrid

Talk Talk

Telecom Egypt

Tesco Bank

The Travel Group

Travel Port

TUI

Van Marcke

Veolia

Viega

Visa Europe

Volvo Truck

WIND Telecom

3 Suisses

Achmea

Accor

Al Hilal Bank (UAE)

Alstom

Argos

ASICS

Banque Centrale Populaire (MO)

Banco Santander

BANKART

Baumarkt Direkt

Belastingdiens (Dutch Tax Office)

Belgacom

Belgium Post

Berner (FI)

Bluarancio

BNP Paribas

Boos (UK)

Borough of Camden (UK)

Bouygues Telecom

Carrefour

Credit Agricole

Commune di Roma

Compagnia Assicuratrice

Dalkia

Deutsche Telkom

DHL (DE)

Dubai World

DSV

Eli Lilly UK

Euroclear

EADS

Gazprombank

Hypo Vereinsbank

ING

LaSer Cofinoga

Lloyds

Maersk

Mitchells & Butlers

Мир Книги

Network Rail

NFU Mutual

Norway Post

Orange

Otto Group

Ouest-France

Peter Justesen

Philips Medical Devices

PPL

Prisa Digital

RTE

Representative Sample


Asia-Pacific Uptake of MDM

Queensland Health (AU)

RAC Victoria (AU)

RAC WA (AU)

Samsung (KR)

Samsung Life (KR)

Shenzhen Development Bank (CN)

Shanghai GM (CN)

Shanghai Regional Community Bank (CN)

Simplot (AU)

Suncorp (AU)

Sydney Water (AU)

Tai Kang Life (CN)

Taiping Life (CN)

Taiwan Mobile (TW)

Telecom NZ (NZ)

Telstra (AU)

Tongshan Tax Bureau (CN)

Tower Australia (AU)

Tsingtao (CN)

University of Sydney (AU)

Westpac (AU)

Woolworths (AU)

Zhejiang Tailong Commercial Bank (CN)

ANZ (AU)

Asics (JP)

ATO (AU)

Alliance Bank Malaysia (MY)

Bank Central Asia (ID)

Bank Negara Indonesia (ID)

Bank of China (CN)

Bank of Commerce (CN)

Bank Tenaga Negara (MY)

Bendigo Bank (AU)

BHP Billiton (AU)

CBA (AU)

Centrelink (AU)

China CITIC Bank (CN)

China Unicom (CN)

Chongqing Changan Automobile Co. (CN)

Daihatsu Motor Co. (JP)

Dept of Educ - SA

Dept of Educ – WA

FANCL (JP)

Fujitsu (JP)

GCG China (mobile) (CN)

GE Money (AU)

General Dept of Taxation (VN)

Huawei (CN)

HK Trade Development Council

IP Australia (AU)

Japanese Research Institute (JRI)

Korea Life Insurance (KR)

Korea Telecom (KR)

Krung Thai Bank (TH)

KT&G (KR)

Lion Nathan (AU)

Macquarie Bank (AU)

Ministry of Educ (SG)

Ministry of Finance (CN)

Ministry of Health (NZ)

Ministry of Health (SG)

Mitsubishi Motors (AU)

Mizuho (JP)

MLC (NAB)

Mobily (SA)

NAB (AU)

New Zealand Customs (NZ)

NTT (JP)

Optus-Singtel (AU)

Origin Energy (AU)

Perodua Otomobil (ID)

Rio Tinto (AU)



Recent North American Uptake of MDM

NY Times Oppenheimer Funds Panera Bread Payless PetSmart Pitney Bowes Polycom Prudential PTC RadioShack Sabre Smith & Nephew Sony Pictures Entertainmento Spectrum Pharmaceuticals T-Mobile Target Teach for America TELUS

Time-Warner Cable TJ Max Toys R Us Travelport Union Bank US Bank Uti Visa Walt Disney Resorts Whataburger Whole Foods Wyndham

AARP ADP Allied World Assurance Co. (AWAC) Apria AutoTrader.com BB&T Belk BestBuy Biogen Idec BJ's Wholesale Club Blackstone Group BMC Software Bombardier BNY Mellon British Columbia Cooperative Canadian Border Security Agency Canada Revenue Agency CarFax Celgene Chartis Chevron Clorox Collective Brands Costco Covidien Desjardins Devon Energy Essilor

Federal Reserve Board Federated Co-Operatives, Ltd. FHA Frontier Communications First American Title Fox Global Hyatt Guy Carpenter HCA Hilton Worldwide Home Depot Canada Houghton Mifflin Harcourt

Huntington Bank Intact Financial John Wiley & Sons Jones Lang LaSalle JP Morgan Chase KeyBank Kroger Levi Strauss Logitech Maersk MassMutual McKesson MeadWestvaco Men’s Wearhouse Morgan Stanley Nextel Northern Trust



Business Trend = “The World Is Flat”

Data structures & business processes must be supremely flexible

IT infrastructure must enable new business models

Policies/process flows must integrate in multi-channel, digital media-centric mode – Social, Mobile & Cloud … i.e., “Big Data”

EAI = enterprise application integrationETL = extract-transform-loadMDM = master data managementSOA = service-oriented architecture

Value of Integration Exceeds Value of Build/Buy

Valu

e

ETL EAI MDM

MonolithicApps

Client/ServerApps

SOA/Web Services

Time

Value ofIntegrating Applications

Value ofBuilding

Applications

Next-generation commerce & global competition mandate a wide variety of new business styles


Macro MDM Market Trends

Market consolidation – MDM+DI+DQ+Apps IBM InfoSphere MDM = DWL+Initiate+Trigo+Lombardi+

Ascential+Vality+SRD+LAS

Informatica MDM = Siperian+DataScout+Heiler+Similarity+ Evoke+Identity Systems+AddressDoctor

Oracle MDM = Siebel UCM+SilverCreek+Datanomics+Sun MDM+Hyperion MDM+GoldenGate+Sunopsys+Carleton

SAP MDM = A2i+Business Objects+FirstLogic+Purisma+Hybris

“Big Data” Data volumes

3rd party reference data

Social network data

Unstructured data

Explosion of “location-aware services”

Actionable insight vs. data management© 2014 The MDM Institute www.The-MDM-Institute.com

SURVEY SUMMARY FINDINGS:MDM & Data Governance

1. Compliance, single customer view (SCV), KYC/KYS, etc. are “universal” drivers

2. Large enterprises have moved beyond CDI & PIM to include reference master data

3. Enterprises have stopped calling out multi-domain & now assume MDM includes multiple domains

4. Data Governance is both synergistic & co-dependent with MDM

5. Big data requires both MDM & Data Governance to be effective & sustainable


SURVEY SUMMARY FINDINGS:Next-Generation MDM

1.Market-leading enterprises are embarking on near-term gap analysis for next-gen MDM requirements to address Social Networks, Mobile, Cloud integration, & Big Data

2.Large enterprises have moved beyond CDI & PIM to focus on relationships & hierarchies btw different entities … & believe “legacy MDM” platforms lack this modeling capability

3.Large enterprises understand Big Data requires both MDM & Data Governance to be effective & sustainable

4.Despite reticence to host CUSTOMER & other master data in Cloud, economics & politics are mandating this & over-riding IT architectural/standards objections


2014-15 MDM Planning Assumptions

Pervasive MDM

Data governance

Business process hubs

Business-critical MDM

Universal MDM

Reference data

Cloud MDM

Social MDM

Public/Private MDM

Big Data

Temporal MDM

Budgets/skills

Strategic planning assumptions to assist IT organizations & vendors in coping with flux & churn of emerging MDM vendor landscape


Pervasive MDM (MDM as a Service)Strategic Planning Assumption

During 2014, enterprise application providers will continue to deploy en masse, the next generation of MDM-innate (as opposed to MDM-aware) applications

Concurrently SaaS vendors will struggle to provide integrated/native MDM; select SaaS providers will finesse this issue via strategic partnerships & investments in MDM

Through 2014-15, mega vendors Microsoft & Oracle will effectively give away departmental MDM– via Microsoft MDS & Oracle DRM respectively

By 2016, the market for MDM-innate applications will exceed that for MDM platform software

MDM MILESTONE

MDM-innate (e.g. Fusion MDM) will overwhelm MDM-enabled applications



MDM Institute Field Reports – MDM**

Ataccama

Dell Boomi

IBM InfoSphere MDM

Informatica MDM

IBI MD Center

Kalido MDM

Microsoft MDS

Oracle MDM

Orchestra Networks

Pitney Bowes

Riversand

SAP MDM & MDG EE

SAS MDM

Semarchy

Software AG

Stibo

Talend

Teradata/Aprimo MDM

TIBCO MDM** Persisted customer or product data hubs

Working Definitions

Data Governance (DG)

Formal orchestration of people,

process, & technology to enable an

organization to leverage data as an

enterprise asset across different

lines-of-business and IT systems

Passive Data Governance

Data steward consoles & other

reactive data management

capabilities focused on after-the-

fact data compliance; often batch-

like & not integrated with MDM

Master Data Governance aligns IT-centric viewpoints & business-centric viewpoints regarding data quality; MDM & MDG are becoming

natural way of aligning data with business processes

Proactive Data Governance

Metrics-driven, crowd-sourced

capability for business users & IT

to actively control their shared

data across different lines of

business & IT systems

Active Data Governance

Metrics-enabled, upstream data

policy enablement; replaces

manual data admin processes

with role-based, real-time SME

empowerment


Data GovernanceStrategic Planning Assumption

Through 2014, most enterprises will struggle with enterprise DG while they initially focus on customer, vendor, or product; integrated DG that includes E2E data lifecycle will increasingly be mandated as a phase 1 deliverable

During 2014-15, major SIs & MDM boutiques will focus on productizing DG frameworks while mega MDM software providers struggle to link governance process with process hub technologies

By 2015-16, vendor MDM solutions will finally move from “passive-aggressive" mode to “proactive" Data Governance mode

MDM MILESTONE© 2014 The MDM Institute www.The-MDM-Institute.com

MDG *must* evolve from point products (i.e., to address customer or product MDG only) to enterprise data governance (supporting multiple domains such as customer, product, supplier, location, price, etc.)


MDM Institute Field Reports – DG

ASG

Ataccama

BackOffice Associates

Collibra

EMC/RSA/Archer

IBM MPDM

IBI MD Center

Informatica IDD

Kalido DGD

Microsoft DG Console

Mike 2.0

Oracle DGF

Orchestra Networks

SAP MDG

SAS Data Governance

Software AG

Utopia

Varonis

Universal MDM (Multi-Domain MDM) Strategic Planning Assumption

During 2014-15, MDM evaluation teams will assume (& insist) that all MDM software platforms targeted for enterprise-level deployment or major role in mission-critical systems fully support both PARTY & THING entity types

Through 2015, mega vendors will continue to deploy separate CDI & PIM stacks while nouveau MDM vendors attempt to position this as "legacy MDM" failing

By 2015-16, all operational CDI hub vendors will add "PIM light" capabilities, & all PIM vendors will add B2C PARTY entity

MDM MILESTONE

Most PIM are multi-domain, not just PIM … always include SUPPLIER; CDI always has entitlements


Reference Data ManagementStrategic Planning Assumption

Through 2014, reference data will emerge as a key entry point for enterprises & in turn unduly influence choice of MDM for Customer, Product & other domains; large enterprises will continue to mandate that REFERENCE data be part of MDM platform's native entity types

During 2014-15, MDM vendors will begin to market RDM to apply an MDM approach for centralized governance, stewardship & control; Sis will move into this market via OEMing of Informatica & IBM MDM into "securities master" mkt under pricing umbrella of GoldenSource

By 2016, pervasive, low cost RDM will be commoditized via the efforts of Ataccama, Microsoft & Oracle

MDM MILESTONE

Managing “simple” reference data will prove to be a key sales entry point for MDM vendors


MDM Institute Field Reports – RDM

Aprimo LRDM (Teradata MDM)

ASG ROCHADE (metadata-driven RDM)

Ataccama RDM

IBM RDM Hub

iGATE Patni RDMS

Informatica RDM

Kalido

Microsoft RDM (t.b.a.)

Oracle Site Hub, DRM

Orchestra EBX

Profisee

SAP MDG-R (Reference Data)

Software AG WebMethods OneData


Cloud MDM (Cloud-enablement, Architecture & Integration)

Strategic Planning Assumption

During 2014, single- & multi-tenant Cloud MDM will continue to attract SMBs to achieve MDM benefits without long-term project & major expense; while offering enticing entry point for large enterprises (opex vs. capex, federated architecture for geo-distributed organizations, POCs)

Through 2014-15, integration of on-premise MDM w/ SaaS apps will arrive via SFDC, SAP BBD, et al, however, enterprises will wrestle w/ DI issues btw on-premise & cloud w/ majority of orgs unwilling to house master data about CUSTOMERS/PRODUCTS/SUPPLIERS in public cloud

By 2015-16, Cloud-innate services for DQ & DG will be more prevalent; however, enterprise MDM will remain “on premise” w/ increasing integration to Cloud applications

MDM MILESTONE

MDM-enabled apps will migrate to public Cloud, especially for decentralized/geographically distributed organizations


Social & Mobile MDMStrategic Planning Assumption

During 2014, 360° view of “X” will take on new meaning due to “data blind spots” of traditional MDM; enterprises will realize need to reconcile social identity with corporate/ household identity to provide authoritative master data to drive e-mktg & commerce within social networks

Through 2014-15, next-gen MDM will address “sphere of influence” to incorporate both extended & non-obvious relationships to grow share of wallet from individual to exo-ego network as disruptive sales strategy (vs. ego-centric mktg)

By 2015-16, mobile location-based services enhanced with location-specific customer info will raise ante for e-commerce within & outside major social networks

MDM MILESTONE

Data-related processes need to align with real world intricacies – especially complex relationships & hierarchies of

mobile customers & extended social networks


Temporal MDM (Real-Time & Time-Travel)


MDM MILESTONE

Object/Graph DB-based MDM will dominate in time-travel; RDBMS-based MDM dominates real-time MDM updating


During 2014, MDM requirements will increasingly evolve from myriad of batch match/merge processes for evergreening master data into near real-time best of breed data consolidation architectures; mega vendor MDM platforms with RDBMS underpinnings will compete to outperform each other, while next-gen MDM solutions will lag due to overhead of semantic models

Through 2014-15, compliance & other corporate functions will increasingly mandate temporal MDM to view & manage entities & hierarchical relationships at a specific point in time (past, present or future)

By 2016, temporal MDM will be standard feature of majority of MDM platforms

Big Data (& In Memory)


During 2014, performance of all major aspects of base MDM functionality will benefit from performance-enhancing capabilities of big memory configurations —from batch loading of MDM hubs to identity resolution to operational updates

Through 2014-15, Big Data will repatriate itself into MDM fabric via registry overlays as yet another source; mining of Big Data to populate Social MDM & perform entity matching on Big Data stores will help provision 360° view of entity from public, subscription &enterprise data.

By 2015-16, very large enterprises (e.g., fin svcs, large gov’t agencies) will look to r/t MDM flows & scaling of MDM solutions via elasticity of Cloud-based solutions, in-memory DBs, & next-generation ETL/MDM

MDM MILESTONE

Big Data innately requires both MDM & Data Governance to be effective & sustainable


Budgets/SkillsStrategic Planning Assumption

During 2014, the number of IT professionals trained in a specific MDM solution will increase 100% Y2Y, however, IT organisations & consultancies will struggle to recruit and retain MDM veterans who have had a major role in a successful MDM deployment

Through 2014-15, enterprises will continue to spend 3X to 4X in “plan” & “build” services vs. MDM software

By 2015-16, supply of MDM-experienced consultants will catch up w/ demand & SIs will scramble to find new opportunities for their expensively recruited & trained talent

MDM MILESTONE

Given substantial investment businesses undertake with SI partners, this area must be given scrutiny – not only to

contain costs, but to insure success of this vital infrastructure investment


MDM & Data Governance Services

Market for MDM & Data Governance services reached US$2.5B during 2012 & will exceed US$4 billion by 2015

Systems integrators are essential to success of majority of MDM projects, yet previously incumbent SIs usually are no longer so

Data Governance assistance from SIs will remain especially critical to success of MDM programs during 2014-15 as organizations deal w/ shortage of tools, experience, & tool expertise


This area must be given scrutiny – not only to contain costs, but to insure success of this vital investment

Field Report: Major SIs

Accenture

BackOffice Associates

Capgemini

CGI-Logica

Cognizant

Deloitte

EMC Consulting

IBM BAO/GBS/Lab Services

Informatica Pro Svcs

Infosys

Lumendata

Oracle Pro Svcs

SAP Pro Svcs

Stream Integration

Tata

Utopia

Wipro


Field Report: MDM & DG Specialists

Affecto

Arhis

Attevo

Black Watch Data

Broadstreet Data

Business & Decisions

Consology

Datpro

Detica

DATUM

eCenta

Edificio

Entity Group

First San Francisco Partners

GlobalSoft

HighPoint Systems

Hitachi/Sierra Atlantic

IMT

Information Asset

InfoTrellis

Jibes

Koeus

Myers-Holum

Project Performance Corp.

NorthGate

Perficient

Platon

SDM

Serene

SapientNitro

SITA

Sogeti

Steria

Strrevus© 2014 The MDM Institute www.The-MDM-Institute.com

Field Report: Major SIs with Minor Practices

Abeam

Atos

Avanade

BearingPoint

CSC

Dell/Perot Systems

Fair Isaac / Braun

Consulting

Fujitsu (Born, DMR)

Hitachi Consulting

HP/Knightsbridge/EDS

Lockheed Grumman

Mahindra Satyam

PwC

SAIC

SBS (Siemens Business Services)

Unisys


Bottom Line: MDM & Data Governance

Invest in DG for long-term sustainability & ROI of MDM

Acknowledge currently marketed DG does not exist as integrated solution

Plan for most MDM vendors to deliver DG during next 6-12 months

Recognize mega vendors (IBM, INFA, ORCL, SAP)

focused to deliver MDG capability in 2014 – with resultant partner chaos

Manage SI partner to integration roadmap with MDM platform of choice & to avoid “brain drain”


Plan now to realize economic value & competitive differentiation via multi-entity MDM during next 2-5 years

MDM & Data Governance Summit™Conference Series

“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”

MDM & Data Governance Summit Europe 2014

Radisson Portman BLU - London ▪ May 19-21, 2014

MDM & Data Governance Summit Tokyo 2014

Belle Salle Iidabashi First – Tokyo ▪ June 12-13, 2014

MDM & Data Governance Summit San Francisco

Hyatt Fisherman’s Wharf– San Francisco ▪ June 17-18, 2014

MDM & Data Governance Summit Toronto

The Carlu ▪ July 8-9, 2014

MDM & Data Governance Summit Asia-Pacific 2014

Doltone House, Darling Island Wharf – Sydney ▪ July 29-31, 2014

MDM & Data Governance Summit New York

Sheraton Times Square ▪ October 5-7, 2014

MDM & Data Governance Summit Shanghai 2014

Shanghai International Convention Center ▪ Fall 2014

MDM & Data Governance Summit Singapore

Marina Bay Sands Resort ▪ November 2014


Aaron ZornesFounder & Chief Research Officer

The MDM Institute

[email protected]

www.linkedin.com/in/aaronzornes @azornes


Authoritative

Relevant

Independent

April 10, 2014 Mastering the Fundamentals: Data Governance to Unify MDM...

Documents

Transcript of April 10, 2014 Mastering the Fundamentals: Data Governance to Unify MDM...