True Drivers of MDM webinar

1 May 10, 2012© Kalido I Kalido Confidential I May 10, 2012

The True Drivers of MDMEmpowering Business Ownership of Data

Kalido Webcast, May 10, 2012


Logistics

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Type your questions into the Questions box

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Today’s Speakers

Darren PeirceCTO, Kalido

John EvansDirector of Product Marketing, Kalido


Agenda

Best practices in amplifying the business ownership of the data

Emerging trends for the future of business-owned master data

The role of MDM technology and processes in driving the point of action to the business rather than IT


Trends in Master Data Management

Manage every domain - ideally in a single technology

Include all parties in the stewardship process

Enforce governance and measure compliance


The Problem


Traditional Approach to MDM: Knowledge

IT

Low High

Master Data Knowledge

Business Application Users


Traditional Approach to MDM: Effort

IT Business Application Users

High Low

Focus of EffortLow High


Systems Knowledge


Resulting Knowledge Gap

IT

High Low



Systems KnowledgeKnowledge Gap Business

Application Users


Knowledge Gap

Data Stewards to Fill the Gap

IT

High Low



Systems Knowledge

Data StewardsBusiness

Application Users


Why is Business Involvement Critical?

Reasons for Active Business Involvement:

Knowledge

Timeliness

Challenges With NOT Involving Business Teams:

Sustained Adoption

Addressing Real Business Problems

Continuous Refinement


Example Collaboration Needs

Semantic Consistency“This is what my other business user group thinks is meant by MSA Codes – do you agree?”

Business Rules“If the customer has not transacted with us for more than 12 months, do we consider him inactive?”

Business Processes“What’s the earliest touch-point we have within our company where we’d find out if our customer has changed jobs?”


In Summary

Knowledge– The Knowledge is in the business

Timeliness– Timely access fresh data is predicated on business involvement

Sustained Adoption– Can only be achieved if the business is actively involved

Address Real Business Problems– Otherwise it’s yet another database to synchronize

Continuous Refinement– Otherwise the business will develop their own tactical, silos

Collaboration Needs to Occur to Discuss:– Semantic Consistency– Business Rules– Business Processes


State of Collaboration Today

0% 10% 20% 30% 40% 50% 60%

Rigid boundary exists between business and IT with littlecollaboration.

Collaboration clearly exists. It is intense during a major initiativebut is ad hoc on a day-to-day basis.

Business-IT collaboration on data is institutionalized as aroutine activity even in the absence of a major initiative.

Business-IT collaboration related to data is pervasivethroughout the enterprise.

What is the level of data collaboration between bus iness and IT?

Source: Kalido Data Governance Maturity Assessment on Kalido Website (277 respondents)

82% of respondents don’t have effective collaboration between business & IT


State of MDM Adoption

Source: Kalido Data Governance Maturity Assessment on Kalido Website (277 respondents)

59%

32%

6%3%

How does your organization manage master data?

Master data resides in disparateapplications and is unmanaged.

Single or multi-domain MDM isimplemented but lacks governance.

MDM platforms work w/central datagovernance app to implement/executeenterprise master data policies.

Master data complies with enterprise datapolicies and rules at the points of origin.

Only 9% of respondents have effective enterprise MDM programs today


How To Amplify Business Ownership Of The Data?


4 Things To Consider

Understand how the data is used– To identify consumers who will care about the data

Establish the impact of bad data– To establish business case

Identify champions – To embed adoption

Pick your battles– Understand that not all data is “created equal”


Understand Data Consumption

Identify business processes that consume the data

Understand the processes– Specific data needs– Operating frequency

& timeliness requirements

Identify and foster key stakeholders


Data Drives Business Performance

Business Process

Business Process

DataData

DataData

DataData

DataData

Data Quality Metrics

Data Quality Metrics

AccuracyAccuracy

CompletenessCompleteness

TimelinessTimeliness

Operational Metrics

Operational Metrics

ThroughputThroughput

Cycle TimeCycle Time

UtilizationUtilization

Enterprise KPIs

Enterprise KPIs

Days Sales OutstandingDays Sales

Outstanding

Business OutcomeBusiness Outcome

ApplicationApplication





Identify Key Champions

Data Governance CouncilData Governance Council

Data Organization

Data ExecData Exec

Data StewardsData Stewards

IT Organization

IT ExecIT Exec

System OwnersSystem Owners

Business Organization

Business ExecBusiness Exec

Process OwnersProcess Owners

OperatorsOperatorsData ConsumersData Consumers

Data AuthorData Author DevelopersDevelopers


Not All Data Is Created Equal

Name Address City State ZIP Order AmountWawrinchuk, Troy E 7 29TH AVE E ATLANTA GA 30328 4.26$ Sankovic, Gregor G 19 ROAD AND ROUTE 38 COLORADO SPRINGS CO 80919 4.95$ Das, Grace Jhansi 176 ROSWELL RD NE SEATTLE WA 98109 6.52$ Laver, Brad Alan 2045 THOMAS LN LOS ANGELES CA 90048 3.52$ Easton, Craig L 407 RIDGE RD SAN ANGELO TX 76904 3.48$ Gaiao, Francisco L 3863 W CATAWBA AVE RANCHO CORDOVA CA 95670 6.66$ Hannah, Tristen Elle 10614 W TOWN ST OREM UT 84057 2.65$ Randell, Travis Rockwell 2320 BUFFALO SPEEDWAY DUBLIN OH 43017 3.23$ Manikowski, Eric P 1160 PEACHTREE DUNWOODY RD NE KONAWA OK 74849 6.97$ Hammerstrom, Eric R 7659 NICOLLET MALL OWINGS MILLS MD 21117 4.65$ Najbart, Greg Eric 102 BURNHAM AVE HENDERSON NV 89052 4.22$ Lapish, Brent S 74 CADILLAC DR LOS ANGELES CA 90067 5.86$ Laidvee, Erti Stewart 930 COLUMBIA RD LUVERNE AL 36049 3.37$

An incorrect address here does not have a material impact on the business

BUT:

An incorrect product specification that causes a ha lt to production for 2 days, or the address on an agent invoice for $12.5 millio n, is a different story!

If each data record has a low impact on the business it should be managed through rules (e.g. Customer Address in B to C)

If each data record or attribute has a high impact it should undergo individual stewardship review


Emerging Trends for Business-Owned Master Data Governance


Policies Enforce Behavioral Changes

Policies defined centrally but enforced at source

Rules and metrics used to enforce compliance

Manual compliance used where rules cant be applied to source


Business Participation

Business Application Users– Provisioned with live access to published master data– Tasked with “proposing” edits or creation of new master data

records– Enabled to identify and report data issues directly in master

data solutions

Data Administrators– Transitioning from data entry to data steward functions


Demands Of Agile Governed Enterprises

High

Low

Stable Dynamic

Need for Change in Data Models, Rules and Processes

Need for Governance

More agility even for historically stable domains

More governance even for new and emerging business initiatives


Spreadsheets

SharePoint

New Class Master Data Application

Legacy Forms Apps

XML

Enterprise Applications

High

Low

Stable Dynamic

Master &

Reference

Data

Governance

Need for Change in Data Models, Rules and Processes

Need for Governance


The Role of Master Data Management Technology


Knowledge Gap

Data Stewards to Fill the Gap

IT

High Low



Systems Knowledge

Data StewardsBusiness

Application Users


Enable Business Users to Bridge the Gap

IT

Low High

Master Data Knowledge AND Focus of Effort

Systems KnowledgeBusiness

Application Users


Kalido’s Vision for Master Data Management

Model It for Every Domain– Rich modeling constructs supports real-world business environment– Domain-agnostic modeling, matching and mapping capabilities reduces manual

stewardship requirements– Integrated graphical model models both common and obscure domains without

costly customizations

Master It with Everyone– Audience-specific interfaces (for data stewards, business process operators,

information consumers) provide active, role-based involvement– Sophisticated workflow and model-driven API enables real-time collaboration– Policy-driven governance enables executive involvement

Govern It Everywhere– Flexible interfaces provide universal access from browsers, mobile devices,

analytical and operational applications– Change management capabilities support master data lifecycle requirements– Audit, validation and security requirements managed seamlessly


Kalido Master Data Management Version 9.0 SP2

Kalido MDM Version 9.0 SP2 expands master data participation from data stewards to business application users, improving overall quality and timeliness.

Business-led approach delivers golden copy master data faster as existing assets are reused and business application users contribute more directly.

Kalido MDM V9 SP2 supports both “clean-up” and “operationalized” master data management through improved operational synchronization and a sustained, “stay-clean” environment.


Kalido MDM Version 9 Release Benefits

Benefits for IT– Further expands control for master data to the hands of the business– More robust toolkit for serving operational master data needs– Advance from “clean-up” mindset to sustained “stay-clean” operational

environment

Benefits for Business– More accurate and consistent master data– Broader support for business-led operational use cases– Simplified ability to propose new master data

Kalido MDM version 9 SP2 extends the benefits of MD M for every domain, with everyone, everywhere.

The result is significantly more robust, model-driv en MDM applications that further engage the business data experts across the organization, to deliver the most accurate and consistent master data to you r business processes.


Q&A


Next Steps

Attendees will receive our whitepaper on “Kalido MDM Technical Overview”

Read our blog about Kalido Master Data Management http://http://blog.kalido.com/category/master-data-management/

Follow us on Twitter: @Kalido

Join the Kalido community: Kalido Connections

Contact us! +1.781.202.3200, press 1


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