Customer Centricity: How the MDM Journey Creates Business Success

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Customer Centricity: How the MDM Journey Creates Business Success

Anne RatcliffeWW InfoSphere MDMSales ExecutiveInformation ManagementIBM Software Group

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Agenda

• The Information Supply Chain • Master Data Management Overview• The IBM® InfoSphere™ MDM Portfolio• Customer Success Stories

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Variety of Information• 80% of new data growth is unstructured content• Emails, images, audio, video..

Volume of Digital Data• 57% CAGR for enterprise data through 2010• Machine generated data : Sensors, RFID, GPS..

Velocity of Decision Making• Rapidly changing business climate • Need to get ahead of the curve : predict issues

and fix them

Data Explosion in a Smarter World!

New Data New Information!

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But, How Do We Leverage Informationfor Smarter Business Outcomes?

47% of users don’t have

confidence in their information

59% of managers miss information valuable to their

jobs because they can't find it

42% of managers use wrong information at

least once a week

Sources: Accenture Survey, January 2007, AIIM Survey, July/August 2007

http://accenture.tekgroup.com/article_display.cfm?article_id=4484

http://www.aiim.org/Edoc/ArticleView.aspx?ID=33445

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Think Differently to Drive SmarterBusiness Outcomes

Call CenterOperations

Human Resource

ManagementERP &Financial

s

AutomationApplication

Agenda

Optimization

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Key Business Drivers for MDMRevenue• Identify cross-sell, up-sell opportunities• Customize product offerings

and bundles• Introduce new products quickly• Identify high value customers• Improve customer retention

Cost• Automate manual business processes• Reduce data errors• Eliminate excess mailings• Identify risk (credit)• Supports system consolidation

initiatives

Agility/Strategic Initiative• Consolidate data from silos/integrate

new systems quickly (M&A)• Meet demands of new

business channels• Grow with the business• Identify key relationships

and hierarchies

Compliance• Reduce risk• Control access to data• Adhere to government and

corporate regulations• Manage customer privacy

preferences

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What is Master Data? Why is it important?

• Master data is a subsetof all enterprise data

• Master data is the high-value, core information used to support critical business processes across the enterprise

• Master Data is information about customers, suppliers, partners, products, materials, employees, accounts and more

• Master Data is at the heart of every business transaction, application and decision

Master data

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What is Master Data Management?• Provides a consistent understanding and trust of master data entities• Provides mechanisms for consistent use of master data across

the organization• Is designed to accommodate and manage change

John Jones Customer Valiue High

Risk Score LowDo Not Call

[email protected]

MDM

CRM Data Warehouse ERP eBusiness Application

J. Jones1500 Industrial

Customer Value – LowRisk Score – HighSolicit – No data

John Jones112 Main Street

Customer Value – HighRisk Score – Low

Solicit – Do Not Call

John Jones112 Main Street

Customer Value – HighRisk Score – Low

Solicit – Do Not Call

Master Record

Single View

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Batch Connectivity (e.g. ETL Tools)

Current Business Automation…Sincethe Beginning of Info Technology

Security, Mail, etc

Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.)

BillingSystem

Product Order System

Call CenterWeb PhoneAgent / Sales

Other Users (e.g business

partners)

Headquarters (e.g Risk Mgr, Administrator)

CRM/Call Center

Sales ForceAutomation

New Systems (e.g. SOA –based)

ServiceSystem

IVRWeb

External Business PartnersCustomer

ProductAccountOthers

CustomerProductAccountOthers


Comp. System & Others


Content Management (e.g. FileNet)

Process Server

Business Intelligent

(e.g. COGNOS)

• IT Applications built in silo to solve specific business problems (Order, billing, service, compensation,etc)

• Line-of-business focused (by product)

• Common data(e.g Customer) in disparate systems resulting in duplicates and non-trusted data

Application Agenda Era …

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Non-Trusted DataCommon Data in Disparate Systems Cause

Data Quality Problems…

• Are they the same person?• Are they related to other customers?• Is the customer also an agent• Which address is correct

Name:

System A

Nancy Smith

Gender: Female

Birth Date: 1 Aug 1980

ID: Passport: BA26355

Address: 1 Main St, …

Marital Status: Single

System B

Nancy Jones

F

1/8/1980

DLN:800801-2311711

1 Main Street, …

Married

System C

Mark Jones

Male

9/2/1963

DLN:630902-1212212

No 1 Main St, …

Married

SalesComp-

ensation

Nancy Jones

Female

8/1/80

DLN: 800801-2311711

2 Main Street, …

M

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In ContextReal-time delivery of relevant

information when and where it’s needed

Complete Related information reconciled into a

single and holistic view

AccurateComplex and disparate data transformed,

cleansed and delivered

InsightfulDerive meaning from information changes

Leaders Investing to OptimizeInformation Assets

Clients Tell Us What They Are Looking for…Trusted Data

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INFOSPHERE INFORMATION SERVER

Understand Cleanse Transform Deliver

COMMON META DATA

IBM® InfoSphere™ Solutions to Provide Trusted Data to Drive Business Optimization…

Security, Mail, etc


Billing System

ProductOrderSystem


Other Users (e.g. business

partner)


CRM/Call Center



ServiceSystem

IVRWeb





Comp.System & Others



Process Server


(e.g. COGNOS)

IBM® InfoSphere™ Information Server• Every capability

needed to understand, cleanse, integrate& deliver information across heterogeneous systems

• Broad native connectivity to any data source

• Massive scalability for integrating large data volumes in batch or real-time

• Unique metadata-driven design for acceleration & business-IT alignment

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Non-Trusted DataCommon Data in Disparate Systems Cause

Data Quality Problems…

• Are they the same person?• Are they related to other customers?• Is the customer also an agent• Which address is correct

Name:

System A

Nancy Smith

Gender: Female

Birth Date: 1 Aug 1980

ID: Passport: BA26355

Address: 1 Main St, …

Marital Status: Single

System B

Nancy Jones

F

1/8/1980

DLN:800801-2311711

1 Main Street, …

Married

System C

Mark Jones

Male

9/2/1963

DLN:630902-1212212

No 1 Main St, …

Married

SalesComp-

ensation

Nancy Jones

Female

8/1/80

DLN: 800801-2311711

2 Main Street, …

M


Understand Cleanse Transform DeliverCOMMON META DATA

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Master Data Management The Path to Managing & Providing Trusted Data…

Master Data …

• Common Data

• Directory(X-ref) Data

• Summary Data

ADDRESS &CONTACT METHOD (Phone, e-Mail, etc)

PERSON or ORG (Party)

NAME

DEMOGRAPHIC(Gender, Birth Date,Establish Date, etc)

IDENTITY

PARTYHIERARCHY

PARTY RELATIONSHIPPARTY

X-REF

ACCOUNT/POLICY X-REF PRIVACY &

PREFERENCE

CAMPAIGNSUMMARY

PARTY VALUE

INTERACTION HISTORY

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Master Data Management Centralized Management of Master Data via Servicesto Provided Trusted Operational View of Business …

INTE

GR

ATIO

Nse

rvic

e

INTEGRITYservice IN

TELLIGEN

CE

service

AUTHORIZATIONservice

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Understand Cleanse Transform Deliver

COMMON META DATA

Batch Load

INFOSPHEREWAREHOUSE

IBM® InfoSphere™ Solutions to Provide Trusted Data to Drive Business Optimization…

Security, Mail, etc


Billing System

ProductOrderSystem


Other Users (e.g. business

partner)


CRM/Call Center



ServiceSystem

IVRWeb





Comp.System & Others



Process Server


(e.g. COGNOS)

INFOSPHERE MDM SERVER

Real-time

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5 of top 6 US HC Payers; EMPI & HIE leader

Over 10 Years Experience & 600+ Customers

4 of top 6 US Insurance Companies

6 of top 10 US Financial Services

10 of top 12 US Retailers

http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/

Leader for large national & local governments

http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/

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Government Healthcare Telco

• Improve Case management

• Reduce fraud across benefit Applicants

• Improve revenue collection across Taxpayers

• Improve Citizen services

• Streamline Asset management across Locations

• Improve Customer service and billing Contracts, and reduce churn

• Support Regulatory compliance for Customers / Organizations

• Grow Customer wallet share through tailored Product offerings and bundles

• Improve Patient care and reduce medical errors

• Encourage Physician loyalty

• Improve Compliance and Patient privacy

• Streamline Hospital Asset management or medical Products across supply-chain and Locations

Energy & Utilities• Energy Price data

management• Asset and Location

management (e.g., reservoir, oil field, meter)

• Improve Customer service

Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM

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Insurance

• Regulatory compliance for Customers

• Improve Customer satisfaction

• Grow Customer wallet share through tailored Product offerings and bundles

• Understand full exposure and reduce credit risk across Accounts

• Streamlined Asset management

• Improve Supplier / Dealer financial management

• Food Products safety compliance

• Manage Customer preferences and lifecycle

• Faster Product launch across Locations

• Superior Customer multi-channel experience

• Improve Customer loyalty

• Faster Product launch across Locations

• Improve Vendor / Supplier on-boarding

• Streamline Member enrolment

• Improve claims processing for Members

• Create custom Product offerings and bundles

• Optimize Policy management

• Manage compliance and privacy across Members

ManufacturingRetailFinancial Services

Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM

2020

IBM® InfoSphere™ Master Data Management

Adaptive MDM for diverse requirements• World’s largest MDM customers and

implementations• Rapid time to value with multiple deployment

options• Support for any data domain and industry• Strong master data stewardship capabilities• Pre-packaged capabilities speed time to market• Customizable and extensible foundation• Seamless scaling as data volumes grow

A broad set of capabilities to enable adaptive master data management solutions

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Phased Implementation Drive Business Optimization with Positive ROI

Reduce cost and improve customer satisfaction via once-and-done processing … e.g. address change

COST REDUCTION

Reduce risk exposure via holistic view customer household and product holdings

IMPROVE RISK

MANAGMENT

Improve up-sell and cross-sell with relevant offers meeting customer requirements

IMPROVE SALES

CAMPAIGN

Comply with government regulations…privacy act, risk exposure reporting, etc

REGULATORY COMPLIANCE

Forming a customer chassis to reduce M&A integration points and improve integration speed and cost

ASSIST MERGER &

ACQUISITION

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The Facts: Multiple customer information

systems from acquisitions Inability to identify value of

customer across mortgage, bank account, sales, and life administration systems

Bottom line: Removed 400,000 duplicate records

to date Greater ability for cross-sell and up-sell Led to increased revenue and

improved customer loyalty

"Now that we manage our customer information as an asset, the opportunities for innovation and optimization are endless. We can respond to the dynamics of our business twice as fast."

IBM MDM Customer Success Story

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The Facts: Create and maintain product

information 10% faster Data entry errors reduced from 5% to

0.1%Bottom line:

Anticipated operational savings of €5 million annually

Partners reduce costs by 25% Two additional weeks of sales for new

products leading to 3.5% increase in revenue


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The Facts: Integrates over 52M customer records

within and across disparate systems Acts as the single point of management

for a global customer identifierBottom line:

Reduced data standardization costs by 50% and marketing costs by 10%

Decreased customer churn by 5% and increased cross-sell, up-sell revenue by 10%

Recognize a 300% increase in customer privacy compliance across the entire organization


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Q & A / Thank You

Anne RatcliffeWW InfoSphere MDMSales ExecutiveInformation ManagementIBM Software GroupPh: +1 415 867-0895Email: [email protected]

For More Information, Please Contact:

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Appendix

Applications& Processes

Delivering Business Insight RequiresMastering Your Information

Going Beyond Simply Managing… to Optimizing Business Results

Analyze

Integrate

DataWarehouse

Master Data

Clients’ Information Supply Chain

Reports & Dashboards

GovernData Quality

Security

Lifecycle

Management

BusinessIntelligenceApplications

TransactionalBusiness

Applications

Content

DatabaseInfrastructure

BusinessApplications

StreamingData

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IBM MDM Product Portfolio

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IBM MDM Product Portfolio

IBM® InfoSphere™MDM Server

Physical master repository of customer, account and

product data for the business to consume

as services

IBM® Initiate® Master Data Service®

Virtual master registry for delivering single, trusted versions of master dataand their relationships

IBM® InfoSphere™ MDM Server (for PIM)

Capabilities to flexibly manage products and other

entities across enterprise

Single ViewGovernance

CommonComponentsIBM® InfoSphere™

Identity InsightAnalytical capabilities to discover where threat

and fraud exists to enable immediate action.

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IBM® Initiate® Master Data Service®: Functional Overview

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• Data Stewardship– Inspect and resolve data quality issues– Visualize and manage relationships

• Master Data Engine– Highly accurate and flexible matching and

searching across multiple data domains– Load, match and link master data in hours

• Flexible & Extensible Data Model– Model complex master domains and

relationships– Employ data models that are built and

optimized specifically for master data management

• MDM-Powered Solutions Framework– Streamline creating MDM-powered

solutions for end users• Integration

– Integrate with multiple real-time andbatch options

– Deliver trusted master data to downstream data warehouse, analytics and BI systems

– Message-based support (HL7, JMS, MQ Series)

IBM® Initiate® Master Data Service®

Data Stewardship

Master Data Engine

Data Model

Integration

SOA Java/.Net Industry

Match & Link RelationshipsWorkbench

Solutions FrameworkComponents Blueprints

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IBM® InfoSphere™ MDM Server:Functional Capabilities

MDM Domains

Business Services

Pre-built Customizable

Data Stewardship

Party Account Product Custom

IntegrationContent Data Analytics

IBM® InfoSphere™ MDM Server

• Business Services– Enables business process to easily leverage

master data– Speed time-to-value, reduce subsequent

phase investment• Functionality

– Stewardship: Data Quality, Stewardship,& User Interfaces

– Events: Event Management& Business Rules

– Security & Entitlement: ROV• Multi-domain

– Extensible data model supporting domains including Party, Product, Account & Location

– Relationships between domains• MDM Workbench

– Tooling for easy extensions to dataand UI generation

• Robust Data Integration– Pre-built Data Integration & Quality

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IBM® InfoSphere™ MDM Server (for PIM):Functional Capabilities

IBM® InfoSphere™ MDM Server (for PIM)

Product Location Supplier Others

Collaborative Authoring

Business Process workflow

MDM Custom-Built DomainsNPI Catalog Mgt Multi-CommerceGDS

• Collaborative Business Processes– Workflows for Collaborative Tasks

• Extendable Authoring UI– Business User Interface for Authoring

and Search• Flexible Data Model

– Product Catalogs, Category Hierarchies, Attributes, Relationships

• Data Synchronization– Imports and Exports with Deltas

and Versioning– Job Scheduler

• User and Role Security– Granular Access privileges to enforce

complete and accurate data– User and Role Security– Attribute Level Security

Customer Centricity: How the MDM Journey Creates Business Success

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