Building the MDM Business Case
Jim Walker Talend Nimesh S. Jaspal Decision Technologies
Agenda HOW TO build a basic business case for MDM and governance STARTING SMALL with MDM Top THREE REASONS for failed MDM business cases and how to avoid them
Jim Walker
MDM Prod Mktg :: Talend jwalker@[Link]
Nimesh S. Jaspal
CTO :: Decision Technologies Jaspal@[Link]
Talend 2010
Level Set Defining MDM
Data Is EVERYWHERE
Multiple versions of the truth, no sharing Redundant systems, apps & databases Inconsistent data and limits cooperation Difficult to agree on a shared format, politics No collaboration between systems & users
firewall
Partners Customers
Difficult to maintain
enterprise data is dispersed across the organization in disparate silos, in varying formats and under different access rights.
Talend 2010
MDM Defined
MDM
firewall
Partners Customers
Talend 2010
Four step plan to build an MDM biz case
Step 1: Get a Quick Win Step 2: Collect Value Statements Step 3: Align with Corporate Objectives Step 4: Present short pain/long term gain
Talend 2010
Four step plan to build an MDM biz case
Step 1: Get a Quick Win
Find a simple domain and lay the MDM foundation
Some sample other MDM domains include: Reference data, Employees and Locations Mastering a simple domain allows you to implement basic MDM technology, presenting a platform for the future
Demonstrates real value in the business case
Ability to show a real return in the business plan Allows a wide audience to see the future and sets you up for success in the next step
Talend 2010
Four step plan to build an MDM biz case
Step 2: Collect Value Statements
Present the basics of MDM and let peers stir
Create and deliver a basic understanding of MDM to your peers with sample value statements Include business and technical resources Collect a list of ways MDM might be valuable to them
Gains alignment, involvement and visibility
Creates a common understanding go MDM to help project and future data governance Provides you with valuable bullets for your biz case
7
Talend 2010
Sample MDM Business Cases
Supplier consolidation Universal cross line or BU offers catalog Development Reference Data Catalog Promotions across LOB IT Project, Resource Utilization Customer / Account Aggregation Sunset legacy ERP system Customer Portal Customer profitability / risk profile Translating Scientific to operational data Multi-Account collections & recoveries Customer Privacy preferences across LOBs
Four step plan to build an MDM biz case
Step 3: Align W/ Corporate Objective
Understand whats important to the C-suite
Every organization has objectives and MDM can have a positive affect on each of them Gather the objectives and align each value statement to one or more, assigning importance and complexity
Gain Buy-in, demonstrates value
Speak the language of the c-suite Difficult to extend ROI without a valid, tangible business case
Four Basic Objectives Increase revenue Decrease Costs Mitigate Risk Comply w/ Regulations
9
Talend 2010
Sample MDM Business Cases
Supplier consolidation Universal cross line or BU offers catalog Development Reference Data Catalog Promotions across LOB IT Project, Resource Utilization Customer / Account Aggregation Sunset legacy ERP system Customer Portal Customer profitability / risk profile Translating Scientific to operational data Multi-Account collections & recoveries Customer Privacy preferences across LOBs
Sample MDM Business Cases
Supplier consolidation Universal cross line or BU offers catalog Development Reference Data Catalog Promotions across LOB IT Project, Resource Utilization Customer / Account Aggregation Sunset legacy ERP system Customer Portal Customer profitability / risk profile Translating Scientific to operational data Multi-Account collections & recoveries Customer Privacy preferences across LOBs Decrease Cost Increase Revenue Decrease Cost Comply w/ Regulations Decrease Cost Increase Revenue Decrease Cost Decrease Cost Mitigate Risk Increase Revenue Mitigate Risk Comply w/ Regulations
Four step plan to build an MDM biz case
Step 4: The short and long term Case
Lay out Short term pain and long term gain
Choose two to three value statements that will provide the biggest bang for your buck Map each to the corporate objectives and present a business case Use your quick win from step one as the baseline for the project to demonstrate momentum Use this foundation as the beginning of your technical case
Firm foot in the now with an eye on the future
Solve short term pain, address long term gain
Talend 2010 12
Typical MDM Business Case
Supplier consolidation Universal cross line or BU offers catalog Development Reference Data Catalog Promotions across LOB IT Project, Resource Utilization Customer / Account Aggregation Sunset legacy ERP system Customer Portal Customer profitability / risk profile Translating Scientific to operational data Multi-Account collections & recoveries Customer Privacy preferences across LOBs
Regulatory Pressure: consistent privacy preferences for all customer records PHASE ONE BUSINESS CASE Servicing: Commit to enabling multi-account servicing for the new web launch Alignment: align data to improve analytics for better product development
Phase one, overcome inertia and demonstrate tangible business value
PHASE 1 PHASE 2 PHASE 3
Business Case One
Business Case Two
Business Case Three
Typical Technology half of the MDM case
Business Case Four
Master Data Management Platform
Business Case Five
Business Case N
Sketch a big picture but start small
PHASE 1
Business Case Part One Business Case Part Two
Single, high value business case pays for the MDM infrastructure
Pick a single business case or two and get specific on each Long term platform is secondary Demonstrate short term gains to sell long term opportunities
Master Data Management
Build detailed business case with the projects people can rally around Easier for executives to envision the value and focus on short term gains, while understanding the long term goals Commit to dates - demonstrate understanding effects on major business processes
Business Use Case
Customer Satisfaction Issues due to parts availability
Global capital equipment manufacturer Razor thin profit margins Materials Master identified as leading candidate to enable service teams
Solutions@[Link]
Business challenges
No single view of the materials master
20+ manufacturing sites world wide 15 source systems (9+ flavors of ERP systems, via acquisitions) 3,000,000+ material records 200,000 suppliers listed in database Same material from different countries (country of origin issues)
Solutions@[Link]
Business challenges World Wide Customers and Material Sourcing
Different procurement processes Different regulatory requirements Different payment systems and gateways Different banking systems Different tax laws Different export restrictions Different transport and logistic structures
Solutions@[Link]
Approach
Data consolidation and analysis collected all material master candidate attributes De-duplication and data quality RMF analysis Limited number of attributes -- 45 attributes qualified for phase 1 Governance Automate Workflows
Solutions@[Link]
Hugely Successful Project Re-cap
Starting Small
Focused on 45 attributes vs. boiling the ocean with 100s Service function only vs. Procurement, Engineering, Manufacturing, Trade and Finance
Business Benefits
$30+ million in first years savings: Project paid for itself 10 X Parts count reduced to 1.2 million (started with 3,000,000) Can now perform parts analytics by machine, customer and use
Fact based ask for additional funding and resources
Solutions@[Link]
Phase 2 Building on the Materials Master
International Trade
DoD oversight and compliance needs Added ~10 new attributes to the materials master The MDM platform has became the single go-to place to resolve all Customs and DoD issues with parts.
Solutions@[Link]
Why you CAN start small now
Why the simple MDM case never existed
Cost Complexity Speed Flexibility
Market characteristics at work on this problem
MDM is more mainstream, effects price, makes more attainable No need to boil the ocean You are already doing MDM General MDM solutions are now available tackle other domains
Talend 2010
22
A Simple Data Integration Project
Migration and synchronization of product catalog from oracle to IBM
ORACLE
Web Store
Data Integration
Web CMS
Master Data Project Extension
Simple extension, major value Persist and maintain product data in a hub
Talend MDM Web UI
Added 2 Workflow for approvals
Web Store
ORACLE
MDM Server
IBM WCC
Product Hub for future use
INGRAM
Added Data Quality for Augmentation of data
Mastering things for a quick win...
Reference Data Employees Product Catalog Shipping Routes Locations Customers IT Projects/Consultants Categories
Talend 2010
25
Three reasons MDM biz case fails
1. Plan doesnt address data governance
Involve others, gain alignment Create and document a DG plan
2. Too big too expensive too much
Start small, grow big Set attainable and realistic milestones\ Priorities change over time your MDM value will as well
3. Doesnt resonate with c-class suite
Map value of MDM to corporate objectives Make it real, start with a quick win
Talend 2010
26
Agenda HOW TO build a basic business case for MDM and governance STARTING SMALL with MDM Top THREE REASONS for failed MDM business cases and how to avoid them
Jim Walker
MDM Prod Mktg :: Talend jwalker@[Link]
Nimesh S. Jaspal
CTO :: Decision Technologies Jaspal@[Link]
Talend 2010
27
Talend Highlights
A high adoption rate
8 million downloads 400,000 users 1,200 customers
The Open Source Data Management Company
1 download of Talend Open Studio per minute
Talend 2010
100 new customers per month
Talend MDM downloads in six months
28
Decision Technologies
LLC
End to End Data Management experts
MDM Data Governance Data Migration Data Integration Data Improvement projects
Core architecture & database layer expertise of SAP & Oracle eBiz, Peoplesoft, J D Edwards, Seibel & BaaN, OBIEE and BO platforms Real world experience in business and global processes Clients leverage our experience to guarantee their success
Solutions@[Link]
