Best Practices for a Successful MDM Implementation

1 For more information, contact PaperSep 2010 AbstractAbstractAbstractAbstractAbstract With the ever-increasing demand for cost optimization, faster productlaunches, more efficient compliance with regulations and differentiatedbusiness competitiveness, one of the biggest pain areas for enterprises isachieving consistent quality data. Leading to sub-optimal decision making,data misalignment within various systems is putting the brakes onorganizations looking to accelerate paper outlines the experiential best Practices that can helporganizations improve the odds and realize business value quickly andpredictably while planning and implementing an MDM solution to solvetheir data Practices for aSuccessful MDM ImplementationWin in the flat worldThe Data ProblemQuality data is a strategic asset for any organization.

2 Itprovides a strong and secure foundation to drive businessexecution and differentiated services. Clean andconsistent data leads to better decision making andprovides agility in a competitive marketplace. Quality dataalso leads to improved stakeholder relationships - be itcustomers, suppliers or channel a traditional organization, critical data about customers,products and partners is fragmented across myriad systems- each independently trying to own and manage the business-critical data passes through the complexenterprise, it may get locked up, duplicated, or worse,misrepresented and misinterpreted, obscuring the facts andcompromising performance. The increasing clamor for fastertime-to-market for product introductions, incrementalrevenue growth from the current customer base, costoptimization, and regulatory compliance have all heightenedawareness of the risks of using poor quality important business initiatives offer a compellingbusiness case for improving data quality by deliveringaccess to a single reference that represents the 'goldenrecord' or ' best Version of Truth' - which can be achievedwith an efficient Master Data Management (MDM) offers a central repository to manage business-criticaldata on an ongoing basis.

3 It ensures synchronization withbusiness intelligence and operational systems by integratingdata in real time and empowering data stewards with thecapabilities to properly govern data across the enterprise. ,this MDM enables the organization to gain criticalenterprise-wide insight about customers, products, partnersand so on, and facilitates more confident decision making,accurate reporting and nimble Can MDM Help?MDM is a deliberate initiative comprising of a set ofmethodologies, strategies, disciplines and technologies thatenable organizations to acquire, cleanse, enrich, consolidate,federate, and govern data across many disparate an analytics perspective, organizations can employquality data for reporting and compliance purposes, andto optimize and enhance partner and channel an operations standpoint, organizations can build acentralized hub representing the best version of the truth,providing an accurate, consistent and secure copy ofCustomer is 'owned' by everyone and no one!

4 My business competitiveness is jeopardized! I don't know if or when my loyalty programs and campaigns have been effective I'm not sure if I am meeting my regulatory compliance requirements I look across my systems and find duplicate customers and dead products My reports are never consistent for the same question My sales channels have outdated product information My new product introductions take foreverSoundsfamiliar?master data to all systems and business users across linesof business (LOBs).Some of the key benefits that organizations can gain byusing MDM include: Identifying new opportunities to interact withcustomers and channel partners Realizing improved effeciency across businessprocesses Enhancing business intelligence, reporting andanalytic capabilities Optimizing the manual effort required to manageand use data across the enterprisePutting the best Foot ForwardWith organizations across industry verticals makingsignificant investments in MDM solutions, it is necessaryto recognize and act upon the best Practices that helporganizations manage their MDM best Practices are.

5 Give Wings to Your VisionNot only must an organization's master data vision alignwith its business vision, but it must also acknowledgemaster data as a critical asset. The most crucial questionsto answer at kick-off are the 'Whys' of an MDM initiative -functionally, technically and financially. Identification ofcritical success factors along with clear achievableobjectives goes a long way in establishing early business case needs to outline the 'Whys', 'Hows' and'Whos' of the MDM exercise clearly. A quantifiable andmeasurable return on investment (ROI) is the cornerstoneof a Successful initiative. Business pain points and dataENRICHACQUIRECONSOLIDATECLEANSEMDMI mproved effectivenessEnhanced analyticsReducedTCOR educedmanual effortCustomer and Partner Management Channel Optimization Route-To-Market Analytics 360-degree View of Customer Reduced Duplicate Customer CommunicationsComplianceRequirements Global Regulatory Compliance Internal Regulations Effective Risk ManagementIncrease inAccount Revenue Increased Cross-Sell Opportunities Increased Up-Sell Opportunities Increased Predictability of Profit MarginsMergers andAcquisitions Ability to view consolidated assets/ resources Ability to have uniform rules Reduced costs of failure Rear-View CheckBusiness CaseQuantifiable andMeasurable ROIKeep checking the benefits from one phase

6 To the nextThink Big, Start SmallPhased Approach but make MDM a ProgramEye-on-the-ballAvoid scope creep of the MDM programActive Data GovernancePolicies and procedures must be formalizedArchitectural ConsistencyTechnology and tools that fit the IT ecosystemActive Vendor SupportGet insight into upcoming features, avoiding customizationContinuous CollaborationBusiness operations stakeholders to be involved throughoutProgram DefinitionProgram SocializationOverall StrategyRequirement AssessmentProduct Evaluation Defining Engagement Parameters Identifying Critical Success Factors Identifying Program Candidates and Sponsors Organizational MDM Objective Calculating Program ROI over 3 -5 years This is the most critical for MDM Governance programs Sponsor Approvals of Business Case MDM and Data Governance Structure Formulation Drivers/ Levers Identification and Timelines Establishing Baseline Processes and Metrics To-be Conceptual Architecture MDM Style Transactional.

7 Registry or Operational Roadmap Strategy Guiding Principles High-level Release Planning Transition Architecture Requirement Documentation and RFP Creation Vendor Scenario Formulation and CRP Demo Vendor Negotiation and SelectionStageActivitiesissues must be identified and prioritized in the businesscase. It is also important to gain the buy-in and approval ofall key stakeholders to endorse the business strategy must be solidified and plans drawn keeping inmind the 'To-be' conceptual architecture and the MDM stylethat best fits the organization's need. Data Governancepolicy discussions must be set in motion within theorganization to get an enterprise-wide consensus. Whiledoing all this, it is essential to keep sufficient lead time forproduct evaluations and vendor Big.

8 Start Small. Keep Your Eye on the BallMaster Data Assets(such as Customer,Product/ Item, Partner,Organization, Supplier,etc.) do not exist inisolation within anorganization. Hence,the potential to usequality data for all master data assets is tempting for manyorganizations. However, it is imperative to focus only onone sub-set of master data asset at a time. Thus, an MDMinitiative works best if it adopts a multi-phase approachtackling 1-2 entities per phase with the design and modelbeing scalable for the next phases. If you ignore thescalability and future design considerations while buildingMDM solutions for different entities, it can lead to isolatedmaster data silos - recreating the problem that the MDMenvisioned to solve. When it comes to MDM, it's importantto think ahead and think big, but take baby steps to achievequick wins and gain the buy in for next Your Rear-View MirrorThe business case must articulate broadly the parametersand metrics needed to measure progress in quantifiableterms.

9 After each phase of the MDM program, theorganization needs to measure the ROI. Since MDMstakeholders belong to multiple departments within theorganization having diverse objectives, it is essential to havea pre-defined and objective MDM success criterion toestablish confidence in the initiative. For example, afterimplementing the customer domain MDM, ROI needs to bechecked in terms of increase in cross-sell, up-sell and thebenefits that have accrued due to the quality of reportingavailable. If the MDM initiative involved the phasing out oflegacy systems, the cost of change management must alsobe captured while calculating the 't Forget, It's a Collaborative ExerciseMDM is a data governance, quality-oriented and business-driven initiative for master data assets, which usuallyinvolves the adoption of new technology.

10 Hence, MDMinitiatives usually span various units across theorganization. The success of the initiative depends on thelevel of collaboration among the units coming together toprovide input and designing the end-solution. This alsoprovides the stakeholders a sense of continuousinvolvement with the MDM program. It is also a good ideato have a change management anchor identified for theMDM program who can socialize the developments andhappenings of the program to the stakeholders andchampion the cause of data awareness within at Architectural Consistency andProduct FitOrganizations need to do thorough due diligence of thetarget architecture and the MDM-enabling technology orChangeManagementChampionsSales &MarketingFinanceHR & AdminLogistics &Supply Chainpackage.