Zornes' keynote maximizing business outcomes – ‘master data governance’ to unify bpm & mdm - 2012 nyc print - v1

Conference Chairman’s Keynote

7 th Annual
MDM & Data Governance Summit
October 15, 2012

Maximizing Business Outcomes
– ‘Master Data Governance’ to
Unify BPM & MDM
Aaron Zornes
Chief Research Officer
The MDM Institute
aaron.zornes@tcdii.com
www.linkedin.com/in/aaronzornes
@azornes
+1 650.743.2278

© 2012 The MDM Institute www.The-MDM-Institute.com

About the MDM Institute

 Founded 2004 to focus on  MDM Alert™ newsletter
MDM business drivers & technology  MDM Market Pulse™ monthly
challenges surveys
 MDM Advisory Council™  MDM Fast Track™ one-day
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unlimited advice to key individuals, e.g. quarterly through major North American,
CTOs, CIOs, data architects European, & Asia-Pacific metro areas
 MDM Business Council™  MDM & Data Governance
website access & email support to 35,000+
members Summit™ annual conferences in
NYC, San Francisco, London, Singapore,
 MDM Road Map & Sydney, Toronto, & Tokyo
Milestones™ annual strategic planning Zornes
About Aaron
assumptions
 Leadingindustry analyst authority on topics of MDM & Data Governance
 Founder & Chief Research Officer of the MDM Institute
 Conference chairman for Information Mgmt’s MDM & DG SUMMIT conference series
 Founded & ran META Group’s largest research practice for 14 years
 M.S. in Management Information Systems from University of Arizona

“Independent, Authoritative, & Relevant”

MDM Institute Advisory Council
Representative Members
 3M  Nationwide Insurance
 BCD Travel  Norwegian Cruise Lines
 Bell Canada  Novartis
 Caterpillar  PC Connection
 Cisco Systems  Polycom
 COUNTRY Financials  Pratt & Whitney Canada
 Educational Testing Svcs  Roche Labs
 Embraer  Rogers Communications
 GE Healthcare  Scholastic
 Honeywell  Sony Pictures Entertainment
 Information Handling Svcs  Stryker
 Intuit  SunTrust
 Loblaw  Sutter Health
 McKesson  TUI
 Medtronic  W.W. Grainger
 Microsoft  Westpac
 Motorola  Weyerhaeuser
 National Australia Bank  Woolworths

150 organizations who receive unlimited MDM advice to key
individuals, e.g. CTOs, CIOs, & MDM project leads

MDM & Data Governance Summit™
Conference Series

MDM & Data Governance Summit New York
Marriott Marquis NYC Times Square ▪ October 14-16
MDM & Data Governance Summit Singapore
Marina Bay Sands Resort ▪ December 4-5
MDM & Data Governance Summit Shanghai
Shanghai International Convention Center ▪ March 2013
MDM & Data Governance Summit Europe
Radisson BLU – London ▪ April 15-17, 2013
MDM & Data Governance Summit Asia-Pacific
Four Points Darling Harbour– Sydney ▪ May 20-21, 2013
MDM & Data Governance Summit San Francisco
Hyatt Embarcadero – San Francisco ▪ May 2013
MDM & Data Governance Tokyo
Belle Salle Kanda– Tokyo ▪ June 2013
MDM & Data Governance Summit Canada
The Carlu – Toronto ▪ June 2013

“More MDM programs get their successful start at MDM
& Data Governance Summits than anywhere else”

MDM Market Growth

 CDI (MDM of Customer) s/w
 US$644 million market YE2012
 US$1 billion by YE2015
 PIM (MDM of Product) s/w -- incl store content info &
metadata
 US$688 million market YE 2012
 US$1.1 billion by YE2015
 > 50% of MDM revenue is led by offerings
from small & best-of-breed vendors
 Therefore overall market surge will likely bring with it a
host of smaller competitive mergers in addition to more
specialty vendor buyouts by four largest MDM providers
– IBM, Informatica, Oracle & SAP.
** Source: Gartner Research
© 2010 The MDM Institute The-MDM-Institute.com

Recent EMEA Uptake of MDM
Representative Sample
 3 Suisses  Eli Lilly UK  Ruukki
 Achmea  Euroclear  Sartorius Werkzeuge
 Accor  EADS  Sberbank
 Al Hilal Bank (UAE)  Gazprombank  Société Générale
 Alstom  Hypo Vereinsbank  Sociale Verzekeringsbank
 Argos  ING  Sogei S.p.A.
 ASICS  LaSer Cofinoga  Sonae
 Banque Centrale Populaire (MO)  Lloyds  Saint-Gobain
 Banco Santander  Maersk  Stallergenes
 BANKART  Mitchells & Butlers  Syngenta
 Belgacom  Мир Книги  Swisscom
 Belgium Post  Network Rail  SwissGrid
 Baumarkt Direkt  NFU Mutual  Talk Talk
 Bluarancio  Norway Post  Telecom Egypt
 Bouygues Telecom  Orange  Tesco Bank
 Carrefour  Otto G roup  The Travel Group
 Credit Agricole  Ouest-France  Travel Port
 Commune di Roma  Peter Justesen  TUI
 Compagnia Assicuratrice  PPL  Van Marcke
 Dalkia  Prisa Digital  Veolia
 Deutsche Telkom  RTE  Viega
 Dubai World  Rusatom  Visa Europe
 DSV  WIND Telecom

Asia-Pacific Uptake of MDM
 ANZ (AU)  Huawei (CN)  Queensland Health (AU)
 Asics (JP)  HK Trade Development Council  RAC Victoria (AU)
 ATO (AU)  IP Australia (AU)  RAC WA (AU)
 Alliance Bank Malaysia (MY)  Japanese Research Institute  Samsung (KR)
 Bank Central Asia (ID) (JRI)  Samsung Life (KR)
 Bank Negara Indonesia (ID)  Korea Telecom (KR)  Shenzhen Development Bank
 Bank of China (CN)  Krung Thai Bank (TH) (CN)
 Bank of Commerce (CN)  KT&G (KR)  Shanghai GM (CN)
 Bank Tenaga Negara (MY)  Lion Nathan (AU)  Shanghai Regional Community
 Bendigo Bank (AU)  Macquarie Bank (AU) Bank (CN)
 BHP Billiton (AU)  Ministry of Educ (SG)  Simplot (AU)
 CBA (AU)  Ministry of Finance (CN)  Suncorp (AU)
 Centrelink (AU)  Ministry of Health (NZ)  Sydney Water (AU)
Ministry of Health (SG)  Tai Kang Life (CN)
 China CITIC Bank (CN) 

Mitsubishi Motors (AU)  Taiping Life (CN)
 China Unicom (CN) 

Mizuho (JP)  Taiwan Mobile (TW)
 Chongqing Changan Automobile 

Co. (CN)  MLC (NAB)  Telecom NZ (NZ)
 Daihatsu Motor Co. (JP)  Mobily (SA)  Telstra (AU)
 Dept of Educ - SA  NAB (AU)  Tongshan District Tax Bureau
(CN)
 Dept of Educ – WA  New Zealand Customs (NZ)
 Tower Australia (AU)
 FANCL (JP)  NTT (JP)
 Tsingtao (CN)
 GCG China (mobile) (CN)  Optus-Singtel (AU)
 Westpac (AU)
 GE Money (AU)  Origin Energy (AU)
 Woolworths (AU)
 General Dept of Taxation (VN)  Perodua Otomobil (ID)
 Zhejiang Tailong Commercial
 Rio Tinto (AU)
Bank (CN)

Recent North America Uptake of MDM
 AARP  First American Title  NY Times
 Allied World Assurance Co. (AWAC) Fox  Oppenheimer Funds
 Apria  Global Hyatt  Panera Bread
 AutoTrader.com  Guy Carpenter  PetSmart
 Biogen Idec  Hilton Worldwide  Pitney Bowes
 BJ's Wholesale Club  Huntington Bank  Polycom
 Blackstone Group  Intact Financial  PTC
 BMC Software  John Wiley & Sons  Smith & Nephew
 CarFax  JP Morgan Chase  T-Mobile
 Chartis  Key Bank  Teach for America
 Chevron  Kroger  Time-Warner Cable
 Costco  Logitech  TJ Max
 Covidien  Maersk  Toys R Us
 Devon Energy  MassMutual  Travelport
 Educational Testing Services  McKesson  Uti
 Essilor  Men’s Wearhouse  Visa
 Federal Reserve  Morgan Stanley  Walt Disney Resorts
Board  Nextel  Whataburger
 FHA  Northern Trust  Whole Foods
 Wyndham


Overview of REALITY CHECK
Survey Process

 Pool of 1,300 MDM projects w/w
 250 completed surveys 2Q2012
 AHIMA, AXA Equitable, Barry Callebaut, Celanese,
Cisco, ConAgra, Eli Lilly, Erie Insurance, Farmers
Insurance, Freddie Mac, Honeywell, Intact
Financial, Khaga, Lender Processing Services,
Liberty Mutual, Merck, Munich Re, Nordea Bank,
RBC Insurance,
Red Hat, Sutter Health, Swiss Re, Timken Co.,
Toys R Us, Univision, Unum, Walt Disney Co., …
 Telephone follow-up to complete surveys
 Focused on past & current attendees of MDM
Summit


SUMMARY FINDINGS:
MDM & Data Governance

1. Compliance, single customer view (SCV),
KYC/KYS, etc. are “universal” drivers
2. Large enterprises have moved beyond CDI
& PIM to include reference master data
3. Enterprises have stopped calling out multi-
domain & now assume MDM includes
multiple domains
4. Data Governance is both synergistic &
co-dependent with MDM
5. Big data requires both MDM & Data
Governance to be effective & sustainable


2012-13 MDM Planning Assumptions

 Pervasive MDM  Social MDM
 Master data  Identity resolution
governance  Big data
 Business process hubs  Business-critical MDM
 Universal MDM  Budgets/skills
 Reference data mgmt

Strategic planning assumptions to assist IT organizations &
vendors in coping with flux & churn
of emerging MDM vendor landscape

Pervasive MDM
Strategic Planning Assumption

 During 2012-13, application providers will deploy en
masse, the next generation of MDM-innate (as opposed
to MDM-aware) applications; concurrently SaaS vendors
(CRM, ERP, HRM) will struggle to provide integrated/
native MDM
 Through 2013, mega vendors Microsoft & Oracle
will provide entry-level (low cost) departmental MDM –
via MSFT MDS & ORCL DRM respectively
 By 2014, SaaS (Cloud native) app vendors will have
finessed this issue via strategic partnerships &
investments in MDM; by 2014-15, the market for MDM-
enabled applications will exceed that for MDM software
MDM-innate (e.g. Fusion MDM) will overwhelm
MDM-enabled applications
© 2012 The MDM Institute www.The-MDM-Institute.com MDM MILESTONE

MDM Institute Field Reports – MDM**

 Aprimo/Teradata MDM  Pitney Bowes
 IBM InfoSphere MDM  Riversand
 Informatica MDM  SAP MDM, MDG & MDS
 IBI MD Center  SAS DataFlux
 Kalido MDM  Software AG
 Microsoft MDS  Stibo
 Oracle MDM  Talend
 Orchestra Networks  TIBCO MDM

** Persisted customer or product data hubs


W/W MDM Market Share

•IBM (MDM, MDS, MDM4PIM)
•Informatica (Siperian, Identity Systems)
•Oracle (CDH, UCM, PIM, Fusion MDM)


Working Definitions

Data Governance (DG)
Data Governance (DG) Passive Data Governance
Passive Data Governance
Formal orchestration of people, Data steward consoles & other
process, & technology to enable an reactive data management
organization to leverage data as an capabilities focused on after-the-
enterprise asset across different fact data compliance; often batch-
lines-of-business and IT systems like & not integrated with MDM

Active Data Governance
Active Data Governance Proactive Data Governance
Proactive Data Governance
Metrics-enabled, upstream data Metrics-driven, crowd-sourced
policy enablement; replaces capability for business users & IT
manual data admin processes with to actively control their shared
role-based, real-time SME data across different lines of
empowerment business & IT systems

Master Data Governance aligns IT-centric viewpoints & business-
centric viewpoints regarding data quality; MDM & MDG are
becoming
natural way of aligning data with business processes

Master Data Governance
 Through 2012, most enterprises will struggle with
enterprise MDG as they initially focus on customer,
vendor, or product; integrated MDG that includes E2E
data lifecycle will be mandated as 1st phase deliverable
 During 2012-13, major SIs & MDM boutiques will focus on
productizing MDG frameworks while MDM software
providers struggle to link governance process with
process hub technologies; concurrently G5000
enterprises struggle to evolve enterprise MDG in cost-
effective & practical way from “passive” to “active” MDG
modes
 By 2014-15, vendor MDM solutions will finally move from
“passive-aggressive MDG” mode to “proactive MDG”
MDG *must* evolve from point products (i.e., to address
customer or product MDG only) to enterprise data governance
(supporting multiple domains such as customer, product, supplier, location, price, etc.)


MDM Institute 2012-13 Field Reports –
MDG

 ASG  Microsoft DG Console
 BackOffice  Oracle DGF
Associates  Orchestra Networks
 Cognizant + Collibra  SAP MDG
 EMC/RSA/Archer  SAS DataFlux
 IBM MPDM  Software AG
 IBI MD Center  Utopia
 Informatica IDD  Varonis
 Kalido DGD


Business Process Hubs

 During 2012, MDM solution providers & BPM solution
providers will increasingly collide in market as the former
acquire or build out BPM-centric MDM; both camps will
be challenged to unify domains as there exist different
business processes for CDI & PIM
 Through 2012-13, however, BPM-centric MDM will suffer
from BPM’s traditional focus on modeling & not
executing MDM rules
 By 2014-15, all mega MDM & BPM vendors will have
overcome this dogmatic bias as enterprise BPM needs
to execute within governance & vice versa be able to
execute MDM workflows within BPM

From the enterprise perspective, a complete MDM solution
requires Rules & Reference Data to be applied across domains

Universal MDM

 Through 2012, corporate MDM platform evaluation
teams will assume (and insist) that all MDM software
platforms targeted for enterprise-level deployment or
major role in mission-critical systems fully support both
PARTY & THING entity types
 During 2013-14, large enterprises will also mandate that
REFERENCE data be part of the MDM platform's native
entity types
 By 2015, all operational CDI hub vendors will add "PIM
light" capabilities, and all PIM vendors will add B2C
PARTY entity

Most PIM are multi-domain, not just PIM … always include
SUPPLIER; CDI always has entitlements

Reference Data Management

 During 2012-13, reference data will emerge as a key
entry point for enterprises & in turn influence choice of
MDM for Customer, Product & other domains
 Concurrently, every MDM vendor will rush to market
RDM solutions to apply MDM approach for centralized
governance, stewardship & control
 By 2013-14, large enterprises will also mandate that
Reference Data be part of MDM platform native entities
 By 2015, RDM will be commoditized via the efforts of
MSFT & ORCL especially

Managing “simple” reference data will prove
to be a key sales entry point for MDM vendors

MDM Institute 2012-13 Field Reports –
RDM

 Aprimo LRDM  Microsoft RDM
(Teradata MDM)  Oracle Site Hub, DRM
 ASG ROCHADE
(Metadata-driven RDM)
 Orchestra EBX
 IBM RDM  Profisee
 iGATE Patni RDMS
 SAP MDG-R (Reference
Data)
 Informatica RDM
(incl Fin Svcs solution)
 Software AG
WebMethods OneData


Social MDM (Cloud-enablement, Architecture &
Integration)
 During 2012, cloud-enabled MDM will attract small- & mid-
sized businesses as a means to engage in MDM without
committing to long-term project & major expense while
offering enticing entry point for large enterprises
 Through 2013-14, cloud-integrated apps arrive via SFDC,
SAP BBD, et al, however, enterprises will wrestle with data
integration issues between on-premise & cloud with
majority of organizations unwilling to house master data
about customers, products & suppliers in public cloud
 By 2014-15, cloud-innate services for DQ & MDG will be
more prevalent than full Social MDM; however, Enterprise
MDM will remain “on premise” with increasing integration
to public Cloud applications
MDM-enabled apps will migrate to public Cloud, especially for
decentralized/geographically distributed organizations

Identity Resolution
 Through 2012, registry-style MDM solutions will find favor
in industries where data is legally or physically too difficult
to consolidate into physical hub -- esp. government, US
healthcare)
 During 2012-13, mega MDM vendors will apply the
powerful hierarchy mgmt capabilities of native registry
solutions to integrate both legacy MDM hubs & ECM
 MDM maintaining the master customer profile data will be
key integration point btwn Social CRM & big data analytics
 By 2014-15, open source alternatives to monopolistic
algorithm vendors will help reduce cost of MDM software
procurement
Mega vendors will adapt matching algorithms of registry MDM
hubs to bolster performance & accuracy of their
operational/transactional hubs matching throughput

Big Data (& In Memory)
 During 2012, performance of all major aspects of base
MDM functionality will benefit from performance-enhancing
capabilities of big memory configurations — from batch
loading of MDM hubs to identity resolution to operational
updates
 Through 2013, big data will repatriate itself into the MDM
fabric via registry overlays as yet another source; “master
data resolution” is key to filtering signal:noise ratio
 By 2014-15, very large enterprises (fin svcs, gov’t) will
leveargereal-time MDM flows & scaling of MDM solutions
via the elasticity of Cloud-based solutions, in-memory
cache databases, i.e., the next-generation of ETL/MDM

Big data apps need to be MDM-aware; MDM must also be able
to store preferences for each big data source; big data system
needs to understand master view of customers & products

Business-Critical MDM

 During 2012, dogmatic spats regarding analytical vs.
operational vs. collaborative MDM use cases will blur as
each of these becomes business-critical MDM which in
turn demand zero downtime
 Through 2012-13, MDM platforms will increasingly provide
in-situ capabilities to change the data model, business
rules, etc. … without taking the MDM services offline
 By 2014-15, this will impact the way master data services
are syndicated & delivered … regardless of regular
ablutions such as software upgrades

MDM is about improving business processes – enterprises
expect enterprise-strength MDM-powered applications
targeted at their industry or problem set

Budgets/Skills

 During 2012, the number of IT professionals trained in a
specific MDM solution will increase 200% Y2Y, however,
IT orgs & consultancies will struggle to recruit & retain
MDM veterans who have actually successfully had a major
role in an MDM deployment
 Through 2013-14, enterprises will continue to spend to 3X
to 4X in “plan” & “build” services vs. software
 By 2014-15, supply of MDM-experienced consultants will
catch up with demand & SIs will scramble to find new
opptys for their expensively recruited & trained talent

Given substantial investment businesses undertake with SI
partners, this area must be given scrutiny – not only to
contain costs, but to insure success of this vital infrastructure
investment

MDM & MDG Consultancy Momentum

•ACN – Accenture
•CAP -- Capgemini
•CTSH – Cognizant
•INFY – Infosys
•TCS – Tata Consultancy Services
•WIT – Wipro


MDM & Data Governance Services

 Market for MDM & Data Governance services
reached US$2.5B during 2012 & will exceed
US$4 billion by 2015
 Systems integrators are essential to success of
majority of MDM projects, yet previously
incumbent SIs usually are no longer so
 Data Governance assistance from SIs will
remain especially critical to success of MDM
programs during 2012-15 as organizations deal
with a shortage of tools, experience, & tool
expertise
This area must be given scrutiny – not only to contain costs,
but to insure success of this vital investment

Field Report: Major SIs

 Accenture  Infosys
 BackOffice  Logica
Associates  Lumendata
 Capgemini  Oracle Pro Svcs
 Cognizant  SAP Pro Svcs
 Deloitte  Stream Integration
 EMC Consulting  Tata
 IBM BAO/GBS/  Utopia
Lab Services
 Wipro
 Informatica Pro Svcs
© 2012 The MDM Institute
www.The-MDM-Institute.com

Field Report: MDM & DG Specialists
 Affecto  GlobalSoft
 Arhis  HighPoint Systems
 Attevo  Hitachi/Sierra Atlantic
 Black Watch Data  InfoTrellis
 Broadstreet Data  Jibes
 Business & Decisions  Myers-Holum
 Caritor  Project Performance Corp.
 Consology  NorthGate
 Datpro  Perficient
 Detica  Platon
 Datum  SDM
 eCenta  Serene
 Edificio  SapientNitro
 Entity Group  SITA
 Evaxyx  Sogeti
 First San Francisco  Steria
Partners

Field Report: Major SIs with Minor Practices

 Atos
 Avanade
 BearingPoint
 CGI-American
Management Systems
 CSC
 Dell/Perot Systems
 Fair Isaac / Braun
Consulting


Action Plan for 2012-13
 Promote MDM as essential business strategy with
IT deliverables to leverage high-value info used
repeatedly across many business processes
 Position MDM as enabler of key business
activities such as improving customer communication &
reporting – rather than an important infrastructure upgrade
 Begin MDM projects focused on either customer-
centricity or product/service optimization
 Plan for multi-entity MDM juggernaut evolving from
“early adopter” into “competitive business strategy”
 Insist on Enterprise MDM software capable of
evolving to multiple usage styles & data domains
Plan now to realize economic value & competitive
differentiation via multi-entity MDM during next 2-5 years

Bottom Line: MDM & Data Governance
 Invest in MDG for long-term sustainability &
ROI of MDM
 Acknowledge currently marketed MDG does not
exist as integrated solution
 Plan for most MDM vendors to deliver MDG
during next 6-12 months
 Recognize mega vendors (IBM, INFA, ORCL, SAP)
focused to deliver MDG capability in 2012 –
with resultant partner chaos
 Manage SI partner to integration roadmap with
MDM platform of choice & to avoid “brain drain”


Aaron Zornes
Founder & Chief Research
Officer
The MDM Institute
www.the-MDM-Institute.com
aaron.zornes@tcdii.com
www.linkedin.com/in/aaronzornes
Authoritative @azornes

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