3. 4
“MDM reaches across a number of areas, where
functional units within an organization need to share
data on products, customers, locations, etc., across
multiple systems. As companies gather more data,
and have to make it usable for CRM and compliance
purposes, they encounter increasing difficulties and
questions. What data is correct? Who is responsible
for it? Who maintains the information?”
Henry Morris
http://thinkexist.com/quotation/mdm-reaches-across-a-number-of-areas-where/963579.html
4. Objective
• Definition
• Challenges
• Inefficient Standardization
• Efficient Standardization – Benefits
• Case Studies
• MDM Implementation
• Final Message
• MDM in Infosys
• Offered by
• Works Cited
• Appendix
5
5. Definition
Master Data Management
=
Data Management
• What does it mean exactly?
• Managing data to ensure that the database is clear of errors, duplicates, etc. – the ultimate
goal is to have a clean database
• Activities such as Catalogue Management, Customer Data Management, Customer Support,
and any other data management activities from the S&F Towers
• By having a clean database, you have the Master (definite/unique) Information needed for
management of any corporation and its business
• “[MDM is] a comprehensive method of enabling an enterprise to link all of its critical
data to one file, called a master file, that provides a common point of reference. When
properly done, MDM streamlines data sharing among personnel and departments.” 1
6
1
6. Challenges
• Handling multiple systems/databases
• Existing applications may not necessarily support new business requirements
• Within the organization itself, the management/SME/etc. cannot agree on “one truth”
• Inflowing unclear data
• Agents not following the WI’s/SOP’s
• The provider’s database is not matching customer’s database
• Etc.
7
2
7. Inefficient Standardization (not exhaustive)
• Company/Street/City/etc.
• E.g. more than one company name entered for a single entity (Hewlett-Packard Company is
sometimes called HP, Hewlett-Packard, Hewlett Packard, etc.)
• Product Coding
• Code in one database (e.g. admin) is not the same as the code in another one (e.g. factory)
which makes the communication about one product difficult to remain aligned
• Phone Number Formatting
• One phone number is entered in various formats which the system understands as different
entries
• Contact Allocation
• Assignment of sales representatives, engineers, etc. to one customer through multiple entries
(i.e. many entries with different information [name + E-mail, name + phone number,
sometimes multiple E-mails and/or phone numbers, spelling, usage of middle name either in
full, abbreviated, or not at all])
• All these and more may create multiple entries, instead of one/master one -> result:
• Confusion
• Customer dissatisfaction -> possible penalties
• Messy/heavy database
8
8. Efficient Standardization (not exhaustive) - Benefits
• Consistent/transparent data is better usable for business analyses which may lead to:
• New business opportunities
• Clean up of “stagnant” items (that hold money)
• Benchmarking
• Forecasting (demand planning, ERP, ROI, …)
• BI (Business Intelligence)
1. You’ll get clear idea on customers’ size, capabilities, hierarchies (parent-daughter
companies) -> can tackle with targeted business proposals
2. You’ll get clear idea on suppliers’ capabilities -> can better negotiate
• Supplier rationalization possibility
3. You’ll have a clear idea of what you truly have (products, warehouse/factory
bandwidth, people/equipment utilization) -> can effectively organize the company to
minimize financial losses/leakages
• Minimized human/manual interference = faster & more accurate approach
9
9. Case Study (external I)
• A company in pharmaceutical industry delivers products to various hospitals and
medical institutes; products such as medication, vaccinations, blood supply, surgery
instruments, equipment (gloves, face masks, scrubs, etc.) and technology
• Due to the criticality of the activity, the hospitals and medical institutes are highly
dependant on prompt and accurate deliveries
• Unfortunately, the pharmaceutical company does not manage its data well
• It does not know what the customers have (volume-wise) to e.g. forecast accurately
• It has problems identifying what exactly is in its own warehouses at any given moment
• Too many databases are used
• Coding of the products is not unified (manufacturer, distributer, etc.)
• Many people have access to the various databases to modify the content
• When some goods are shipped, it does not know where they are in case anyone needs to
know until they actually arrive at the delivery address
• There are multiple entries in the databases when it comes to hospital/institutes’ names,
streets, phone number, etc.
• As a result, the customers are not just unhappy, but the patients in the hospitals are
literally endangered by delivering wrong or damaged medicine or medical instruments
• The customers are complaining, filing lawsuit, and are looking for a new supplier
10
10. Case Study (external II)
• 2 A large international bank with headquarters in Australia was facing major issues that
impacted its overall customer satisfaction index.
• The key issues included:
• Employee frustration over the variety and complexity of systems and processes
• Difficulty in acting on opportunities due to integration costs
• Aging and outdated risk and finance control systems
• Inadequate customer information and insight reporting
• Many manual processes with rekeying of data and errors.
• [Company ABC] implemented an innovative MDM Solution for the bank that quickly
generated several benefits:
• Better data quality and significant reduction in duplicated data
• Standardized processes and a unified platform
• Improved understanding of customers to help employees deliver consistent, high quality
service and more effectively cross-sell and up-sell
• Enhanced business agility and competitiveness as a result of better operational and
management visibility
• Ability to meet or exceed compliance, fraud reporting, and risk management requirements and
goals
11
11. MDM Implementation
• Phase I
• Gather group of SME’s
• Collect data
• Analyse data
• Apply standards
• Understand the standards
• Communicate the standards effectively
• Phase II
• Monitor standardization
• Limit “write” accesses
• Ensure newly installed compliancy
• Maintain group of core SME’s (possible virtually as well)
• (Phase III
• Clean & transparent database to the benefit of all relevant parties, whether internal or external)
12
3
12. Final Message
• MDM is not as much about the activities (orders, loans, returns, etc.) or technology but
rather it is about the process!
• Technology enables MDM but it is the process that is MDM
• MDM’s purpose is to ensure that the process (and approach overall) is consistent, of
high quality and that people act as per their assigned role
• MDM is management of the shared “Master/Core Data” among departments and
applications, and also possibly external users
13
4
13. MDM Support in Infosys
14
• Contact Marta_k for more details in relation to this slide….
14. Offered By
• Infosys Ltd. (http://www.infosys.com) [Infosys uses SAP, Oracle, etc. technologies…]
• Informatica Corporation (http://www.informatica.com)
• International Business Machines Corporation [IBM] (http://www.ibm.com)
• Kalido (http://www.kalido.com)
• Microsoft Corporation (http://www.microsoft.com)
• Oracle Corporation (http://www.oracle.com)
• SAS Institute Inc. [owner of DataFlux] (http://www.sas.com)
• Systems, Applications, and Products in Data Processing [SAP] (http://www.sap.com)
• Teradata Corporation (http://www.teradata.com)
• TIBCO Software Inc. (http://www.tibco.com)
• and many more…
15
18. Interesting Read
• MDM In 2012: What Was, What Will Be . . . And What Won’t Be [January 2012]
(http://blogs.forrester.com/rob_karel/12-01-05-
mdm_in_2012_what_was_what_will_be_and_what_wont_be)
• Avoiding the Big Bang Backlash of MDM Implementations [November 2008]
(http://www.sdcexec.com/article/10289522/avoiding-the-big-bang-backlash-of-mdm-
implementations)
• Master Data Management – Business and Technology Trends [May 2007]
(http://www.siperian.com/documents/MDM_BusinessTechnologyTrends.pdf)
• Demystifying Master Data Management [April 2007]
(http://www.cio.com/article/106811/Demystifying_Master_Data_Management)
19
5
19. Terminology
• BI – business intelligence (usage of company’s capabilities to e.g. make money, win
new customers, be more efficient, etc.)
• CRM – customer relationship management
• Data Management – development and execution of architectures, policies, practices
and procedures in order to manage the information lifecycle needs of an enterprise in
an effective manner 3
• Duplicate – a multiple entry for one entity
• ERP – enterprise resource planning
• Master Data – unique information about product, customer etc. that is used by multiple
entities (administration, manufacturing, sales force, etc.); also understood as reference
data (though these two terms are not identical)
• PLM – product lifecycle
• ROI – return on investment
• SOP – standard operating procedure
• WI – work instruction
20
6
Better control over the organization’s activities
Clarity/transparency of the data
Clarity/transparency in the hierarchy/roles of the data/administrators
Better customer support
Improved reliability <- customer’s trust in the organization’s capabilities
Overall cost savings and standardization
Oracle – RIP (2012)
Atlas Copco – Benjamin (2012)
To reproduce this slide simply create a new slide, right click and select layout and apply the Notes&Disclaimer layout.