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Customer Centricity: How the MDM Journey Creates Business Success

Anne Ratcliffe
WW InfoSphere MDM Sales Executive Information Management IBM Software Group

Agenda
The Information Supply Chain Master Data Management Overview The IBM InfoSphere MDM Portfolio Customer Success Stories

Data Explosion in a Smarter World!


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

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

Velocity of Decision Making


Rapidly changing business climate Need to get ahead of the curve : predict issues and fix them

New Data

New Information!
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But, How Do We Leverage Information for Smarter Business Outcomes?


42% of managers use wrong information at least once a week

59% of managers miss information valuable to their jobs because they can't find it

47% of users dont have confidence in their information

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

Think Differently to Drive Smarter Business Outcomes

Optimization

Automation

Call Center Operations ERP & Financials

Human Resource Management

Application Agenda

Key Business Drivers for MDM


Revenue
Identify cross-sell, up-sell opportunities Customize product offerings and bundles Introduce new products quickly Identify high value customers Improve customer retention

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

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

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 subset of all enterprise data Master data is the highvalue, 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

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
CRM

Data Warehouse

ERP

eBusiness Application

John Jones 112 Main Street Customer Value High Risk Score Low Solicit Do Not Call

John Jones 112 Main Street Customer Value High Risk Score Low Solicit Do Not Call

J. Jones 1500 Industrial Customer Value Low Risk Score High Solicit No data

MDM
John Jones Customer Valiue High Risk Score Low Do Not Call jjones@abcCo.com 8

Current Business AutomationSince the Beginning of Info Technology


Application Agenda Era
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
Web Phone Call Center

Agent / Sales

Headquarters (e.g Risk Mgr, Administrator)

Other Users (e.g business partners)

Business Intelligent (e.g. COGNOS) Web IVR CRM/ Call Center Process Server

Sales Force Automation

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

Product Order System

Billing System

Service System

Comp. System & Others

New Systems (e.g. SOA based) External Business Partners Security, Mail, etc Content Management (e.g. FileNet)

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

Batch Connectivity (e.g. ETL Tools)

Non-Trusted Data
Common Data in Disparate Systems Cause Data Quality Problems
System A System B System C Sales Compensation

Name:

Nancy Smith

Nancy Jones F 1/8/1980 Married DLN:800801-2311711 1 Main Street,

Mark Jones Male 9/2/1963 Married DLN:630902-1212212 No 1 Main St,

Nancy Jones Female 8/1/80

Gender:

Female

Birth Date: 1 Aug 1980 Marital Status: ID: Address: Single Passport: BA26355

M
DLN: 800801-2311711 2 Main Street,

1 Main St,

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

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Clients Tell Us What They Are Looking forTrusted Data


Insightful
Derive meaning from information changes

Leaders Investing to Optimize Information Assets

In Context
Real-time delivery of relevant information when and where its needed

Complete
Related information reconciled into a single and holistic view

Accurate
Complex and disparate data transformed, cleansed and delivered
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IBM InfoSphere Solutions to Provide Trusted Data to Drive Business Optimization


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 metadatadriven design for acceleration & business-IT alignment
Product Order System Billing System Service System Web Phone Call Center Agent / Sales Headquarters (e.g Risk Mgr, Administrator)

Other Users (e.g. business partner)

Business Intelligent (e.g. COGNOS) Web IVR CRM/ Call Center Sales Force Automation Process Server

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

Comp. System & Others

New Systems (e.g. SOA based) External Business Partners Security, Mail, etc Content Management (e.g. FileNet)

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

INFOSPHERE INFORMATION SERVER

Understand

Cleanse

Transform

Deliver

COMMON META DATA

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Non-Trusted Data
Common Data in Disparate Systems Cause Data Quality Problems
System A System B System C Sales Compensation

Name:

Nancy Smith

Nancy Jones F 1/8/1980 Married DLN:800801-2311711 1 Main Street,

Mark Jones Male 9/2/1963 Married DLN:630902-1212212 No 1 Main St,

Nancy Jones Female 8/1/80

Gender:

Female

Birth Date: 1 Aug 1980 Marital Status: ID: Address: Single Passport: BA26355

M
DLN: 800801-2311711 2 Main Street,

1 Main St,

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

INFOSPHERE INFORMATION SERVER

Understand

Cleanse

Transform

Deliver

COMMON 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
NAME PARTY X-REF PARTY RELATIONSHIP PARTY HIERARCHY DEMOGRAPHIC (Gender, Birth Date, Establish Date, etc) PERSON or ORG (Party) ADDRESS & CONTACT METHOD (Phone, e-Mail, etc) CAMPAIGN SUMMARY INTERACTION HISTORY IDENTITY ACCOUNT/ POLICY X-REF PRIVACY & PREFERENCE PARTY VALUE

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Master Data Management


Centralized Management of Master Data via Services to Provided Trusted Operational View of Business
INTEGRITY
service

INTELLIGENCE

INTEGRATION

service

AUTHORIZATION
service
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service

IBM InfoSphere Solutions to Provide Trusted Data to Drive Business Optimization


Web Phone Call Center Agent / Sales Headquarters (e.g Risk Mgr, Administrator) Other Users (e.g. business partner)

Business Intelligent (e.g. COGNOS) Process Server

INFOSPHERE MDM SERVER

Web

IVR

CRM/ Call Center

Sales Force Automation

Real-time

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

Product Order System

Billing System

Service System

Comp. System & Others

New Systems (e.g. SOA based) External Business Partners

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

Customer Product Account Others

Security, Mail, etc

Content Management (e.g. FileNet)

INFOSPHERE WAREHOUSE

INFOSPHERE INFORMATION SERVER


Batch Load Understand Cleanse Transform Deliver COMMON META DATA

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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 5 of top 6 US HC Payers; EMPI & HIE leader Leader for large national & local governments
http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/
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Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM

Government Improve Case management Reduce fraud across benefit Applicants Improve revenue collection across Taxpayers Improve Citizen services Streamline Asset management across Locations

Healthcare 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

Telco 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

Energy & Utilities Energy Price data management Asset and Location management (e.g., reservoir, oil field, meter) Improve Customer service

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

Financial Services

Insurance

Retail

Manufacturing

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

Streamline Member enrolment Improve claims processing for Members Create custom Product offerings and bundles Optimize Policy management Manage compliance and privacy across Members

Superior Customer multichannel experience Improve Customer loyalty Faster Product launch across Locations Improve Vendor / Supplier onboarding

Streamlined Asset management Improve Supplier / Dealer financial management Food Products safety compliance Manage Customer preferences and lifecycle
Faster Product launch across Locations

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IBM InfoSphere Master Data Management


A broad set of capabilities to enable adaptive master data management solutions Adaptive MDM for diverse requirements
Worlds 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

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Drive Business Optimization with Positive ROI


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

Phased Implementation

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 regulationsprivacy 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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IBM MDM Customer Success Story


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."

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IBM MDM Customer Success Story


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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IBM MDM Customer Success Story


The Facts: Integrates over 52M customer records within and across disparate systems Acts as the single point of management for a global customer identifier Bottom 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


For More Information, Please Contact:

Anne Ratcliffe
WW InfoSphere MDM Sales Executive Information Management IBM Software Group Ph: +1 415 867-0895 Email: aratclif@us.ibm.com
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Appendix

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Delivering Business Insight Requires Mastering Your Information


Going Beyond Simply Managing to Optimizing Business Results

Clients Information Supply Chain


Applications & Processes

Analyze Integrate
Master Data
Reports & Dashboards

Business Intelligence Applications

Business Applications Database Infrastructure Content Transactional Streaming Business Data

Data Warehouse

Applications

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IBM MDM Product Portfolio

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IBM MDM Product Portfolio


IBM Initiate Master Data Service
Virtual master registry for delivering single, trusted versions of master data and their relationships

IBM InfoSphere MDM Server


Physical master repository of customer, account and product data for the business to consume as services

Governance

Single View
IBM InfoSphere Identity Insight
Analytical capabilities to discover where threat and fraud exists to enable immediate action.

Common Components

IBM InfoSphere MDM Server (for PIM)


Capabilities to flexibly manage products and other entities across enterprise

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IBM Initiate Master Data Service: Functional Overview


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

IBM Initiate Master Data Service


Data Stewardship

Master Data Engine


Highly accurate and flexible matching and searching across multiple data domains Load, match and link master data in hours

Master Data Engine

Flexible & Extensible Data Model


Model complex master domains and relationships Employ data models that are built and optimized specifically for master data management
Match & Link Workbench Relationships

Data Model

MDM-Powered Solutions Framework


Streamline creating MDM-powered solutions for end users
Solutions Framework
Components Blueprints

Integration
Integrate with multiple real-time and batch options Deliver trusted master data to downstream data warehouse, analytics and BI systems Message-based support (HL7, JMS, MQ Series)
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Integration
SOA Java/.Net Industry

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IBM InfoSphere MDM Server: Functional Capabilities


Business Services
Enables business process to easily leverage master data Speed time-to-value, reduce subsequent phase investment
IBM InfoSphere MDM Server
Data Stewardship

Functionality
Stewardship: Data Quality, Stewardship, & User Interfaces Events: Event Management & Business Rules Security & Entitlement: ROV
Business Services

Pre-built

Customizable

Multi-domain
Extensible data model supporting domains including Party, Product, Account & Location Relationships between domains
Party

MDM Domains
Account Product Custom

Integration
Content Data Analytics

MDM Workbench
Tooling for easy extensions to data and UI generation

Robust Data Integration


Pre-built Data Integration & Quality
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IBM InfoSphere MDM Server (for PIM): Functional Capabilities


Collaborative Business Processes
Workflows for Collaborative Tasks

Extendable Authoring UI
Business User Interface for Authoring and Search

IBM InfoSphere MDM Server (for PIM) Collaborative Authoring

Flexible Data Model


Product Catalogs, Category Hierarchies, Attributes, Relationships
Business Process workflow

Data Synchronization
Imports and Exports with Deltas and Versioning Job Scheduler
NPI
Catalog Mgt GDS Multi-Commerce

MDM Custom-Built Domains


Supplier Others

User and Role Security


Granular Access privileges to enforce complete and accurate data User and Role Security Attribute Level Security

Product

Location

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