DataDelta Master Data Management (MDM) Workshop

Session 1: What is Master Data Management?

Aaron Zornes Chief Research Officer The MDM Institute aaron.zornes@tcdii.com

Ed Allburn President & CEO DataDelta, Inc. allburn@datadelta.com

DataDelta MDM Workshop - Copyright © 2007 DataDelta, Inc.

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MDM Defined
• • MDM is relatively new & still evolving MDM vendor marketing & hype in overdrive
– Vendors are fighting for market position & perception

Terminology conflicts are frequent & intentional gy
– “We have the only true MDM solution…”, vendor xxx

Why i Wh is a clear definition important? l d fi iti i t t?
– Communication & expectations management – CEO, “Ok, I’m convinced. So go buy an MDM tool and have IT install it next g y week…” – worst case scenario!

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Master Data Management (MDM) is NOT…
Master Data Management is: • N t a software “tool” Not ft “t l” •

– IT cannot simply “install an MDM tool”

Not a “radical new technology”

– Although a new solution, MDM is comprised of stable, proven technology components from p p past disciplines p

• •

Not an overnight solution

– Again IT cannot simply “install an MDM tool” Again, install tool

Not cheap (source: The CDI-MDM Institute)

– GLOBAL 5000 companies plan to spend, on average, over $1 million on just the technology solution components – Consulting & Professional Services usually 2x – 4x technology costs
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Master Data Management (MDM) is …
Aaron Zornes, Chief Research Officer, The CDI-MDM Institute: • MDM is the authoritative, reliable foundation for data used across many i th th it ti li bl f d ti f d t d applications & constituencies with the goal to provide a single view of the truth no matter where it lies; examples: “net revenue”, “# of customers” • Operational MDM - Definition, creation, & synchronization of master data q y p required for transactional systems & delivered via SOA; examples: near R/T customer hubs & securities masters Analytical MDM - Definition creation, & analysis of master data; Definition, creation examples: counterparty risk mgmt apps & financial reporting consolidation, marketing Collaborative MDM - Definition, creation, & synchronization of master reference data via workflow & check-in / check-out services; examples: Product Information Management (PIM) data hubs
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MDM Solution Components
Successful MDM solutions must address as an on-going process: • P People – overcome political b l liti l boundaries and priority conflicts with clear d i d i it fli t ith l roles & responsibilities • • • • Process – documented, repeatable & reliable (enforced) means of ongoing management & execution Technology – fully integrated, maintainable, scalable and upgradeable software components Data – data quality, definition, matching, merging & governance Education – fast, efficient internal education of executives & colleagues to proactively manage expectations of roles, responsibilities, resources and rewards of MDM initiatives (including “internal PR”)
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MDM Technology Components
MDM solutions are comprised of a variety of technologies: • Data Modeling & Metadata Management – physical & semantic data definitions • Data Profiling – identify data issues at the source level • Data Quality – ensure data is accurate, timely, complete & standardized • Identity Resolution/Identity Matching/Entity Matching/Hierarchy Matching • Data Hub – single “system of record” for the actual data • Process/Policy Hub – control how, where, when & who uses data • D t Movement – ensure d t is accessible Data M t data i ibl
– Extract, Transform & Load (ETL) – Business process management ( p g (BPM) & rules engines ) g – Data federation/distributed query; enterprise application integration (EAI); enterprise information integration (EII); global data synchronization (GDS)

Data Search
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AZ5

MDM Solution Infrastructure
• • • • • Multi entity Multi-entity hub capabilities SOA/shared services architecture with evolution to “process hubs” Sophisticated hierarchy management High performance High-performance identity management Data governance-ready framework frame ork

MASTER DATA APPLICATIONS MASTER DATA SEARCH MASTER DATA MODELING

CDI-MDM
MASTER DATA PREPARATION MASTER DATA MOVEMENT MASTER DATA GOVERNANCE

-Aaron Zornes, The CDI-MDM Institute
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7 ‫שקופית‬ AZ5 Need to blend MODELING and GOVERNANCE
Aaron Zornes, 02/03/2007

Relation to Legacy Applications
Historical MDM Solutions
Aggregation

Customer Master Files/DBs

Extract Transform Load (ETL)

MDM
Enterprise Application Integration (EAI)
Synchronization

Replication

-Aaron Zornes, The CDI-MDM Institute
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Evolution & Role in the Enterprise

Historical Data Integration Solutions: • Database Marketing • OLAP / Data Warehousing • Enterprise Application Integration • Enterprise Information Integration p g • Customer Relationship Management (CRM) “People” component is an increasing factor of evolution, and one of the key factors that increases deployment risk & difficulty.

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Evolution & Role in the Enterprise
1st gen CDI solutions arrive
(IBM CIIS, Hogan CIF)

Data service providers Oracle, SAP, (Acxiom, Experian) fail at Siebel introduce software makeovers 3rd gen/hybrid CDI into CDI 2nd gen CDI vendors Mega vendors Nascent EII merge to form 3rd digest vendors arrive gen CDI solutions acquisitions (Initiate/Journee, p & flop
Siperian/Delos) Si i /D l )

Pre-2001

2002

2003

2004

2005

2006

2008+

‘Process Hubs’ trounce ‘EIM’ as ‘Data Hubs’; yet (SAP NetWeaver, 4th gen Siebel UAN) another ‘Full Spectrum’ ‘F ll S t ’ (Oracle OCO, TLA SAP MDM, hubs support Siebel UCM) structured & unstructured 3rd generation CDI solutions are based on service-oriented architecture (SOA) to hybridize aggregation, aggregation replication & synchronization to provide enterprise-wide CDI infrastructure - Aaron Zornes, The CDI-MDM Institute
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App vendors launch EAI infrastructure

CDI early ETL vendors d adopters drive add modest requirements CDI extension Mega app (Fin Svcs, & avow CDI High Tech Mfg, vendors Pharma, capabilities roll out CDI Telco)

Relationship to Customer Data Integration (CDI)
Customer Data Integration was a key precursor to MDM: • Customer data is often the most high-priority data for MDM projects • CDI was actually defined before MDM • CDI is one form of MDM • MDM is the generalization & extension of early CDI solutions

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Industry Direction: Market Maturation
• During 2007, the CDI-MDM market will continue to shift gears from “early d t ” to “ i t “ l adopter” t “mainstream” as 95% of financial services, ” 95%+ f fi i l i communications services, high tech, & pharma/life sciences enterprises actively plan to replace homegrown CDI-MDM solutions Through 2008-09, verticalization/horizontalization of CDI-MDM solutions will expand beyond financial reporting, EMPI healthcare, etc. into financial services & government especially By 2010, the market for MDM solutions (software & services) will exceed US$2B

-Aaron Zornes, The CDI-MDM Institute
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Industry Direction: Market Momentum
• During 2007-08, CDI-MDM solutions such as IBM, ORCL, SAP, & TDAT will monopolize majority market share in the G5000 ill li j it k t h i th enterprise; while mid-market solutions will arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes, SAS/DataFlux, Trillium) SAS/D t Fl T illi ) Through 2008-09, both mega & best-of-breed CDI-MDM vendors will aggrandize the traditional master customer DB business of Data Service Providers such as ACXM, DNB, & GUS/Experian as these vendors struggle to deliver on-premise CDI hub solutions By 2009-10, every major application & database vendor will p y y j pp provide either native or OEMed CDI-MDM capability – including DOX, MSFT, & CRM

-Aaron Zornes, The CDI-MDM Institute
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Market Momentum
• October 2005 – IDC’s W/W Market
Forecast stated MDM market to grow to US$10.4 billion by 2009 launched largest expo dedicated to CDI, MDM, & DG **sold out** It’s All About “Relationships” “R l ti hi ”

• March 2006 –CDI-MDM SUMMIT 2006 • June 2006 – Gartner recognized
Panoramic Customer 360 º CustomerView Centric Customer View View Vi Master Customer Info File

importance of CDI with its second Magic Quadrant™ for CDI Hubs

CDI
Customer System of Record

• October 2006 – Forrester releases
second Wave™ report on CDI SUMMIT **sold out**

Universal Customer View

• October 2006 – Second CDI MDM CDI-MDM

CDI-MDM is critical to proactively & consistently manage customer data to untangle quagmire of complex systems – e g streamline processes enhance QoS, & govern compliance e.g., processes, QoS - Aaron Zornes, The CDI-MDM Institute
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Market Futures: Consolidation & Diversification
• During 2007, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDMcentric portfolio By 2008-09, B 2008 09 IBM (ASCL/CRSW/DWL/LAS/SRD/Trigo/ Unicorn) (ASCL/CRSW/DWL/LAS/SRD/T i / U i ) & ORCL (iFlex/JDE/PSFT/RETK/SEBL/ Sunposis) will begin to overcome most of the same architectural/BPM/metadata/platform issues that confounded SAP earlier (SAP MDM/A2i xCat/Callixa) Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDAT) 2009 10, will dominate the CDI-MDM market with niche/best-of-breed vendors (i2, Initiate Systems, Kalido, Purisma, Siperian) thriving in specific industries & horizontal/corporate applications

-Aaron Zornes, The CDI-MDM Institute
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Market Futures: MDM Convergence
• During 2007, customer & product data interdependencies will quickly broaden CDI-MDM b d CDI MDM requirements – i i t i.e., f from “ “customer” to “product” to t ” t “ d t” t “vendor”; concurrently, vendor dogma will promote nouveau approaches such as Collaborative MDM to assuage the multi-hub conundrum Through 2007-08, select best-of-breed vendors (Kalido, Purisma, Siperian, Siperian Stratature) will provide multi-hub (entity, architecture & multi hub (entity brand) connectivity via hierarchy management extensions By 2008-09, enterprises without an overall, long-term MDM strategy run th i i risk of b ildi “MDM silos” the ironic i k f building il ”

-Aaron Zornes, The CDI-MDM Institute
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Market Futures: Budgets & Skills
• During 2007, typical G5000 size enterprise will budget/spend US$1M for CDI-MDM software, with an additional US$3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators Throughout 2007-08, skill shortages will greatly inflame project costs as demand f d t stewards, enterprise d t architects, & other d d for data t d t i data hit t th individuals with strong affinity for data governance will outstrip the market for experienced individuals; concurrently, Systems Integrators will fill the void in their classic style by baiting & switching senior veterans for junior rookies By 2008-09, the market will have stabilized as enterprises react by training & protecting their own CDI-MDM staff with specific software CDI MDM product & project expertise

-Aaron Zornes, The CDI-MDM Institute
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Market Futures: Career Tracks
• • Scarcity of “hands on” CDI-MDM experience exists By 1H2007, 1,500+ product-specific consultants albeit with little “real world” real world experience with mainstay CDI-MDM solutions Current shortage lends itself to same scenario 5-10 years ago with SAP’s ABAP 4GL – i.e., inflated prices & , p resumes with many junior SI staff spinning up to speed at client’s expense (a.k.a. Androids ) (a k a “Androids”)

Product-Neutral
Data Steward, Enterprise Data Architect, Enterprise Data Modeler, Modeler Ctrs of Excellence, CDI-MDM Programmers

On-Site

Product-Specific

OffShore

Market for expertise will create major demand for corporate CDI-MDM positions during next 3-5 years Zornes CDI-MDM - Aaron Zornes, The CDI MDM Institute
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Session End

Questions & Answers

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