building the mdm business case

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

© Talend 2010 2

Nimesh S. JaspalCTO :: Decision Technologies

[email protected]

Jim WalkerMDM Prod Mktg :: Talend

[email protected]

© Talend 2010

Level Set – Defining MDM

PartnersCustomers

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Data Is EVERYWHERE•Difficult to maintain•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

… enterprise data is dispersed across the organization in disparate silos, in varying formats and under different access rights.

© Talend 2010

MDM Defined

PartnersCustomers

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MDM

Four step plan to build an MDM biz case

© Talend 2010 5

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


Step 1: Get a Quick Win

Find a simple domain and lay the MDM foundationSome sample “other” MDM domains include:Reference data, Employees and LocationsMastering a simple domain allows you to implement basic MDM technology, presenting a platform for the future

Demonstrates “real” value in the business caseAbility to show a real return in the business planAllows a wide audience to see the future and sets you up for success in the next step

© Talend 2010 6


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 statementsInclude business and technical resourcesCollect 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 governanceProvides you with valuable “bullets” for your biz case

© Talend 2010 7

Sample MDM Business Cases

Supplier consolidationUniversal cross line or BU offers catalogDevelopment Reference Data CatalogPromotions across LOBIT Project, Resource UtilizationCustomer / Account AggregationSunset legacy ERP systemCustomer PortalCustomer profitability / risk profileTranslating Scientific to operational dataMulti-Account collections & recoveriesCustomer Privacy preferences across LOBs


Step 3: Align W/ Corporate Objective

Understand what’s important to the C-suiteEvery organization has objectives and MDM can have a positive affect on each of themGather the objectives and align each value statement to one or more, assigning importance and complexity

Gain Buy-in, demonstrates valueSpeak the language of the c-suiteDifficult to extend ROI without a valid, tangible business case

© Talend 2010 9

Four Basic ObjectivesIncrease revenueDecrease CostsMitigate RiskComply w/ Regulations


Decrease CostIncrease RevenueDecrease CostComply w/ RegulationsDecrease CostIncrease RevenueDecrease CostDecrease CostMitigate RiskIncrease RevenueMitigate RiskComply w/ Regulations



Step 4: The short and long term Case

Lay out Short term pain and long term gainChoose two to three value statements that will provide the biggest bang for your buckMap each to the corporate objectives and present a business caseUse your “quick win” from step one as the baseline for the project to demonstrate momentumUse 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


PHASE ONEBUSINESS CASE

Servicing: Commit to enabling multi-account servicing for the new web launch

Alignment:align data to improve analytics for better product development

Regulatory Pressure: consistent privacy preferences for all customer records

Phase one, overcome inertia and demonstrate tangible business value

Typical Technology half of the MDM case

Master Data Management Platform

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PHASE 1 PHASE 2 PHASE 3

Sketch a big picture but start small

Master Data Management

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Single, high value business case pays for the MDM infrastructure

Pick a single business case or two and get specific on eachLong term platform is secondaryDemonstrate short term gains to sell long term opportunities

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

PHASE 1

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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

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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)

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Business challenges

Different procurement processesDifferent regulatory requirementsDifferent payment systems and gatewaysDifferent banking systemsDifferent tax lawsDifferent export restrictionsDifferent transport and logistic structures

World Wide Customers and Material Sourcing

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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

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Hugely Successful Project – Re-cap

Starting SmallFocused on 45 attributes vs. boiling the ocean with 100’s

Service function only vs. Procurement, Engineering, Manufacturing, Trade and Finance

Business Benefits$30+ million in first years savings: Project paid for itself 10 XParts 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

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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.

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

Data Integration

ORACLE

Web CMS

WebStore

Migration and synchronization of product catalog from oracle to IBM

Master Data – Project Extension

ORACLE

INGRAM

IBM WCC

WebStore

MDM Server

Talend MDM Web UI

Added Workflow for

approvals

Added Data Quality for Augmentation of data 1

3Product Hub for

future use

Simple extension, major value…Persist and maintain product data in a hub

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Mastering “things” for a quick win...

© Talend 2010 25

Reference Data

Employees

Product Catalog

Shipping Routes

Locations

IT Projects/Consultants

Categories

Customers

Three reasons MDM biz case fails

1. Plan doesn’t address data governanceInvolve others, gain alignmentCreate and document a DG plan

2. Too big… too expensive… too muchStart small, grow bigSet attainable and realistic milestones\Priorities change over time… your MDM value will as well

3. Doesn’t resonate with c-class suiteMap value of MDM to corporate objectivesMake 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

© Talend 2010 27

Nimesh S. JaspalCTO :: Decision Technologies

[email protected]

Jim WalkerMDM Prod Mktg :: Talend

[email protected]

© Talend 2010 28

Talend Highlights

A high adoption rate8 million downloads

400,000 users

1,200 customers

1 download of Talend Open Studio

per minute

100 new customers per month

Talend MDMdownloads

in six months

The Open Source Data Management Company

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Decision Technologies LLC

End to End Data Management expertsMDM Data GovernanceData MigrationData IntegrationData 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

building the mdm business case

Documents

mdm domains

mdm foundation

basics of mdm

mdm biz case talend

mdm biz casestep

basic understanding

basic mdm technology

failed mdm business