the role of d&b’s dunsright® process in customer data ... · pdf filethe role of...

The Role of D&B’s DUNSRight® Process in Customer Data Integration and Master Data Management

Dan Power, D&B Global AlliancesMarch 25, 2007

Role of D&B’s DUNSRight Process in CDI and MDM 2

Agenda

• D&B Today and Speaker’s Background• Overcoming CDI and MDM Challenges• D&B as a Critical Success Factor in CDI &

MDM• Overview of D&B’s DUNSRight® Process• Critical Capabilities for CDI & MDM• Best Practices• Questions? • Contact Info. and References


D&B today – a trusted global content provider and an essential player in CDI

• World’s leading source of business information and insight, enabling companies to Decide with Confidence®for 165 years

• D&B’s intense commitment to our customers is reflected in our aspiration:

– To be the most trusted source of commercial insight so our customers can decide with confidence


My background

• Dan Power is a leader on D&B's Global Alliance team– Responsible for D&B’s strategic

alliance with Oracle Corporation– Has 20 years of experience in

management consulting and enterprise technology

– Has worked with Oracle’s ERP and CRM suites for 12 years

– Regularly advises companies on developing & implementing CDI and MDM strategies that leverage D&B’s DUNSRight process


CDI and MDM are inherently challenging

• Answering the “tough questions” – the things that keep you up at night– Who are my top customers? How profitable are

they? What are they buying from us? What else can we offer them?

– How do we get people to trust our customer data?

– How do we address “data decay” and fix underlying data quality issues?

– How do we solve the problems of identity management, matching and de-duplication?


All of this uncertainty can make it difficult to get to the Single View

• “Tough questions” continued– How do I provide users with trusted corporate

hierarchy information? – Are we at risk? Are we complying with applicable

regulations?– Difference between B2B and B2C – not only more

challenging but the impact of getting it wrong is typically an order of magnitude higher

– How do we integrate our hub with our source systems, while maintaining accurate, complete, timely and consistent information in a constantly changing environment?


Critical to realize the dynamic nature of business data …

• In the next 60 minutes …– 251 businesses will have a suit, lien or judgment filed against them;

7 will file for bankruptcy– 246 business phone numbers will change or be disconnected – 58 business addresses will change– 81 directorship (CEO, CFO, etc.) changes will occur– 41 new businesses will open their doors– 11 companies will change their names

• So in a year …– 21% of CEO’s will change– 20% of all addresses change– 18% of telephone numbers will change– 17% of business names will change


.. and the high cost of “dirty data”

• Customer-centric companies have a problemThey’re 60% more profitable than their competitors who are not customer-centric – 1999 Deloitte surveyBut “75 percent of leading companies are incapable of creating a unified view of the customer” – GartnerThere’s a big paradox here – you’re rewarded for being customer-centric, but most companies can’t do it easilyAnd if not addressed, poor customer data quality will sink your CDI project before it even begins

• So leading companies are starting to invest in CDI, MDM and high quality customer information …


So whose problem is it?

• Everyone’s and no one’s– Affects virtually every area of the company, but because it’s a

cross-functional issue across multiple business units, typically no one “owns” it

• But it’s a problem for everyone– Marketing: hard to plan & manage marketing campaigns effectively– Sales: hard to pinpoint new, cross-sell or up-sell opportunities– Credit: hard to track total risk exposure– Finance: harder to comply with Sarbanes-Oxley Section 409

• How to start solving these problems?– Absolutely through CDI – and a commitment to high quality

information carried from beginning to end in the enterprise– Data governance to keep the information actionable– Moving toward having a “Chief Customer Data Officer”


Data Governance is the key

• Employ a holistic approach that addresses: – People

• Create a dedicated group of Data Stewards who are responsible and accountable for all aspects of customer data quality

• Allow for the cultural / political transitions – this is a new discipline for most companies

– Process• Create the “closed loop” business processes for data quality

management, then monitor data quality metrics regularly– Technology

• Implement the customer hub, middleware, process management and data quality tools that make sense for your business

– Information• Enrich your customer database with D&B’s business information• Leverage the DUNSRight process to know your prospects, customers

and suppliers, to clean up and maintain your data, and to analyze results• But don’t underestimate the amount of effort involved!


What is CDI? What is MDM?

• Gartner’s Definition of “Customer Data Integration”CDI is the combination of the technology, processes and servicesneeded to create and maintain an accurate, timely and complete view of the customer across multiple channels, business lines and organizations, where there are multiple sources of customer data in multiple application systems and databases.

• Gartner’s Definition of “Master Data Management”MDM is the consistent and uniform set of identifiers and extended attributes that describe the core entities of the enterprise and are used across multiple business processes. Some examples of core entities are parties (customers, prospects, people, citizens, employees, vendors, suppliers or trading partners), places (locations, offices, regional alignments or geographies) and things (accounts, assets, policies, products or services). Groupings of master data include organizational hierarchies, sales territories, product roll-ups, pricing lists, customer segmentations and preferred suppliers.Source: “Magic Quadrant for Customer Data Integration Hubs”, May 2006, John Radcliffe, Gartner


D&B as a critical success factor for your CDI & MDM initiatives

• D&B cleanses your organization addresses• Then D&B matches your source data to D&B’s global database of

110 million businesses, to determine the correct D-U-N-S Number for each input record

• Only D&B can enrich and help you maintain your organization data, providing value-added information on – Identity Management– Demographics– Corporate Hierarchies– Credit & Risk Management

• D&B validates or corrects what you’ve already got, fills in the blanks with information you don’t have, and helps you see the relationships between your prospects, customers & suppliers

• Balance your “internal view” with D&B’s “external view”• D&B helps you obtain the “Single View of the Customer”,

increasing revenue, reducing costs & improving compliance


Overview of D&B’s DUNSRight®process

GlobalData

Collection1

EntityMatching

2

D-U-N-SNumber

3

CorporateLinkage

4

PredictiveIndicators

5

D&B Global

Database

Quality Information

Quality Assurance


Through Global Data Collection, D&B brings together information from thousands of sources worldwide

Web Sources and Directories• 3.0 million URLs on D-U-N-S numbers• Each URL mined to confirm correct business• 300,000 customers providing online updates

Public Records and Government Registries• 135 million records from these sources• Suits, liens, judgments and bankruptcy filings• Business registrations

Payment and Financial Data• 639 million trade records updated annually• 100% coverage of public company financials• But 96% of financial stmts. are from private co’s

Direct Investigations, News and Media• 115+ million phone calls annually to businesses• Top news providers• Mergers & Acquisitions

D&B Global Database

• Over 110 million businesses• Over 190 countries

Over 1.5 Million Daily Updates

D&B D-U-N-S® Number


D&B integrates that global data through our patented Entity Matchingprocess

ABC, Inc123 Elm St.Bethlehem, PA 18025(SIC) 5411-02Chuck Smith, President

Multiple Unmatched Pieces of Data

Chuck’s Mini-MartP.O. Box 111Bethlehem, PA 18055(SIC) 5411-02Chuck Smith, President610 882-7600

2

Charles Smith123 Elm St.Bethlehem, PA 18025(SIC) 5541-99215 882-7600

3

1D&B D-U-N-S Number:12-345-6780ABC, Inc+ Chuck’s Mini-MartP.O. Box 111Bethlehem, PA 18055123 Elm St.Bethlehem, PA 18025(SICs) 5411 0202, 5541 9901Charles Smith, President610 882-7600

D&B Single View of Business

1

D&B’s Entity Matching detects similarities in incoming data and more accurately combines it into a single business


Then, D&B assigns the D-U-N-S Number as a unique means of identifying & tracking the business

• Retained for the life of a business– No two businesses ever receive the same D-U-N-S Number; D-U-N-S Numbers are never recycled– D-U-N-S Number not assigned until multiple data sources confirm a business’s existence– Retained when a company moves anywhere within the same country

• Industry standard for business identification and resolving duplication– Recommended by U.S. Government, UN, European Commission and over 50 industry groups


The D-U-N-S Number also enables Corporate Linkage to build corporate families

Without Corporate Linkage, these companies appear unrelated


By applying D&B’s Corporate Linkage, you can view the entire family with no limit in depth or breadth

Global Ultimate: highest ranking global member of a corporate family

Domestic Ultimate: highest ranking member of a corporate family within a country

Parent: any company that owns more than 50% of another company

Subsidiary: more than 50% owned by a Parent

Headquarters: any company having Branches or Divisions

Branch: secondary location or operation, not a separate legal entity

Party 1

Party 2 Party 3 Party 4

Party 5 Party 6 Party 7 Party 8 Party 9

Party 10 Party 11

Party 12 Party 13 Party 14 Party 15


Finally, Predictive Indicators use statistical analysis to indicate how a business will perform in the future

• Three types of Predictive Indicators:– Descriptive Ratings - Overall descriptive “grade” of a company’s past

performance. Uses historical information to provide a current rating to help estimate future credit worthiness

– Predictive Scores – Prediction of how likely it is for a business to pay promptly or continue as an ongoing concern

– Demand Estimators – Estimation of how much of a product a business is likely to buy in total

• Unique Capabilities:– Analytical capability – a dedicated team of experienced B-to-B expert

PhD’s build the underlying predictive models– Data capabilities – access to:

• Industry-specific knowledge• Financial and payment information on numerous private companies• Extensive historical information for analysis


Critical capabilities for CDI and MDM

• Centralized repository for managing all customer data for the enterprise

• Organizations and people, their locations and various types of relationships, plus all kinds of contact info., etc.

• Doesn’t necessarily try to handle other types of Master Data –Products, Services, Pricing, Bills of Material, etc.

Source System

1

Source System

2

Source System

3

Source System

4

Source System

5

Any number of individual front office, back office and other transactional Source Systems

Some Form of “Entity

Hub”

A way to refresh, enhance & correct existing records; add verified new records; eliminate garbage; archive old records, and remove duplicates are all critical capabilities and should have repeatable processes associated with them

Some Form of Publish-and-Subscribe MiddlewareSome Form of Business Process Management

Against a backdrop of a transition to Web Services and Service-Oriented Architecture


Prospect & Customer Hub

• Entity Matching• Assigning

critical identifiers (e.g. DUNS Numbers)

• Cross referencing

• Hierarchy management that groups records according to legal or other “ad hoc”relationships

• Enriching customer records with trusted external content

• Alerts• Predictive

Indicators• Segmentation

analysis, revenue reporting, etc.

How D&B aligns with key functional areas in the Hub

Identity Management Enrichment Grouping

Business Intelligence /

AnalyticsData Quality

Source System 1

Source System 2

Source System 3

Source System 4

Source System 5

MiddlewareBusiness Process Management

• Validate and standardize data BEFORE bringing it into the Hub

• Ensure Accuracy, Completeness, Timeliness, Consistency


D&B’s CDI alliances

Customer Data Hub

Universal Customer Master

SAP MDM

IBM WebSphere Customer Center

D&B Optimizer, powered by Acxiom

http://www.sap.com/index.epx

http://www.ibm.com/us/


Example: Oracle’s Customer Data Hub is tightly integrated with DUNSRight

Remote– Real Time: D&B Data Integration Toolkit

• Online access to D&B’s database, to automatically create new Party records in Oracle and download D&B data for them

• Can automatically create upwardly-linked party relationships using D&B’s Corporate Linkage

• Strong duplicate protection to prevent the entry of duplicates– Batch: D&B’s Data Integration Batch

• Batch-oriented process, using standard Oracle functionality• Part of a “closed loop” data quality strategy, to keep D&B data in your

database current and reflect changes and M&A activity

Local (On Site or Hosted)– Advanced Integration: D&B Integration Manager

• Bring the D&B match engine and database on site for more efficient matching & enrichment (available as web service)


D&B Data Integration Toolkit

Internet

Salespeople

D&B Data IntegrationToolkit Server

Data Stewards

Order Management and Finance

D&BDatabases

Web / ApplicationServers

etc.

D&B Data Integration Toolkit

Enabling real-time lookup and creation of new parties


Populating your Hub and then keeping it current

D&B Data Integration Batch


D&B Integration Manager brings DUNSRight inside your infrastructure

Customer Data Hub

D&B Integration Manager

External

Your infrastructure

Source System 1

Source System 2

Local version of D&B Match Engine and

D&B Global Database

Real-time / Batch Remote Resolution

Source System “n”

Source System 3

Data Integration

Toolkit

Data Integration

Batch

D&B MainframeProviding monthly refreshes for your

IM repository

Customer-built integration between Oracle and IM

http://www.oracle.com/index.html


Continuous, repeatable data governance process

1. Consolidation / Migration / Adding New Parties

• Standardizing Data from Multiple Source Systems

• Defining a Standard Process for New Customer & Supplier Creation

• D-U-N-S Numbering

2. De-Duplication• Online Duplicate Checking• Data Librarian Tools (Party

Merge, Account Merge)

3. Enrichment• Corporate Hierarchies• Credit & Risk Information• Predictive Indicators and Demographics

4. Building Party Relationships• D&B Corporate Linkage• Auto-Build in Oracle

5. Strategic Planning• Set up “Single Source of

Truth”• How to Use the 360 Degree

View once you’ve built it• Define User Content in the

Hub

6. Periodically Refresh Content• Automated Data Flows• Benchmarking Data Quality

Combining Disparate Source Systems on Existing Customers & Suppliers

New Customers & Suppliers

Prospect File

Newly acquiredcompany

Customer & Supplier Data

In TCA


Best practices in CDI and MDM

1. Active, involved executive sponsorship2. Strong project management and organizational change

management3. Business should own the data governance process and the CDI

project (don’t want to be a solution in search of a problem)4. Use a holistic approach – people, process, technology and

information5. Build your data stewardship processes to be ongoing and

repeatable, supporting continuous improvement6. Management needs to recognize the importance of a dedicated

team of data stewards7. Understand your hub’s data model and how it integrates with D&B8. Resist the urge to customize …9. So you can stay current with vendor-provided patches10. Test, test, test and then test again


Questions?


Contact info. and references

Contact Information:

Dan Power, D&B Global Alliances

[email protected], www.linkedin.com/in/powerd

Useful References:

– www.dnb.com/us/alliances and http://cim.dnb.com

– “Data Quality and the Bottom Line, Achieving Business Success through a Commitment to High Quality Data”, by Wayne W. Eckerson www.c4dq.com/readingroom/TDWI-DQReport.pdf

– “Modeling Customer and Prospect Data – TCA Best Practices v2”, http://metalink.oracle.com – Doc. 164519.1

Thank You!

mailto:[email protected]

http://www.linkedin.com/in/powerd

http://www.dnb.com/us/alliances

http://cim.dnb.com/

http://www.c4dq.com/readingroom/TDWI-DQReport.pdf

http://metalink.oracle.com/

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