Bill Harte, IBM Ireland - How a single customer view delivers real business results. Se mere på: http://www.smarterbusiness.dk

1. © 2011 IBM Corporation
Information Management
Bill Harte – MDM Sales Europe
How a single customer view delivers real business
results

2. © 2011 IBM Corporation
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Information Management
Understanding our customers
How well do you understand your customers ?
Well enough to keep the profitable ones - and lose the
others ?
.

3. © 2011 IBM Corporation
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Information Management
Silos of Customer
Information
Problems
 Fragmented view of a customer
 Unable to understand depth of business relationship with
their customers
 Uncoordinated customer contact
 Missed selling opportunities
 Unknown campaign effectiveness
Other….Other….
Cust ID:Cust ID: ABC1232ABC1232
Name:Name: Jane SmithJane Smith
Address:Address: 12 Low Street12 Low Street
BristolBristol
BS1 9SDBS1 9SD
Email:Email: Jane@bt.comJane@bt.com
……………… nn
SourcesSources
of dataof data
We have the data – so what’s the problem ?
CRMCRM
Cust ID:Cust ID: 1234512345
Name:Name: Jane SmithJane Smith
Address:Address: 12 Low Street12 Low Street
BristolBristol
BS1 9SDBS1 9SD
LifeLife
Policy No:Policy No: 3333333333333333
Name:Name: Jane May SmithJane May Smith
Type:Type: Whole of LifeWhole of Life
Address:Address: 12 Low St12 Low St
BRISTOLBRISTOL
Premium:Premium: £50pm£50pm
PensionPension
Policy No:Policy No: 44444444444444
Name:Name: Jane smithJane smith
Type:Type: SIPPSIPP
Address:Address: 12 Lowe Street12 Lowe Street
BristolBristol
BS1 9SDBS1 9SD
Premium:Premium: £300pm£300pm
Cust ID:Cust ID: 1234512345
Name:Name: Jane SmithJane Smith
Middle:Middle: MayMay
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Policy No:Policy No: 3333333333333333
Name:Name: Jane May SmithJane May Smith
Type:Type: Whole of LifeWhole of Life
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Premium:Premium: £50pm£50pm
Policy No:Policy No: 44444444444444
Name:Name: Jane SmithJane Smith
Type:Type: SIPPSIPP
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Premium:Premium: £300pm£300pm

4. © 2011 IBM Corporation
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Information Management
So what ??
 Revenue Enhancement – More intelligent cross-
sell & up-sell via complete understanding of
customer (profile, accounts & interactions) to
leverage bundling opportunities
 Consistent Customer Treatment – For Example
Blending channels to deliver common customer
interactions /experiences across all touch points
 Choose how to deal with customers –
understanding customer enables appropriate
decision making.
 Operational Savings & Efficiencies – “Once &
done” enterprise-wide services for key customer
processes such as account changes (name, address)
 Privacy & Regulatory Compliance – Central location
for consistent rules of visibility & entitlements
 M&A Infrastructure – Shortening M&A customer,
desktop, & billing integration timeframes
 IT Rationalisation and Simplification – Cost savings
from simplification and retirement of legacy systems

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Information Management
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Business drivers
Revenue
 Identify cross-sell, up-sell
opportunities
 Customize product offerings and
bundles
 Introduce new products quickly
 Identify high value customers
 Improve customer retention
Cost
 Automate manual business
processes
 Reduce data errors
 Eliminate excess mailings
 Identify risk (credit)
 Support system consolidation
initiatives
Agility/Strategic Initiative
 Consolidate data from
silos/Integrate new systems
quickly (M&A)
 Meet demands of new business
channels
 Grow with the business
 Identify key relationships and
hierarchies
Compliance
 Reduce risk
 Control access to data
 Adhere to government and
corporate regulations
 Manage customer privacy
preferences

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Information Management
ID Last First Street Attribute N…
CRM123 Jones B. 35 West 15th …
ERP789 Jones William 35 West 15th …
SYS456 Jones Billie 36 West 15th …
6
What is Master Data? Why is it important?
 Master data is the high-
value, core information used
to support critical business
processes across the
enterprise
 Master Data is information
about customers, suppliers,
partners, products,
materials, employees,
accounts and more
 Master Data is at the heart
of every business
transaction, application and
decision
 Master Data is not metadata
or reference data
Prod ID Short
Description
Prod
Category
Prod
Class
Unit of
Measure
1234 Phillips Head
Screwdriver
SD-01 PH-01 Each
1244 Slotted Head
Screwdriver
SD-01 SH-01 Each
1254 Hex Head
Screwdriver
SD-01 HH-01 Each
Gender
Code
English Spanish
0 Not
Known
Desconocido
1 Male Hombre
2 Female Mujer
9 Not
Applicable
No Aplica
Master Data
Reference
Data
Metadata

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Concept of Customer Master Data
CRMCRM
Cust ID:Cust ID: 1234512345
Name:Name: Jane SmithJane Smith
Address:Address: 12 Low Street12 Low Street
BristolBristol
BS1 9SDBS1 9SD
LifeLife
Policy No:Policy No: 3333333333333333
Name:Name: Jane May SmithJane May Smith
Type:Type: Whole of LifeWhole of Life
Address:Address: 12 Low St12 Low St
BRISTOLBRISTOL
Premium:Premium: £50pm£50pm
PensionPension
Policy No:Policy No: 44444444444444
Name:Name: Jane smithJane smith
Type:Type: SIPPSIPP
Address:Address: 12 Lowe Street12 Lowe Street
BristolBristol
BS1 9SDBS1 9SD
Premium:Premium: £300pm£300pm
DWDW
Cust ID:Cust ID: 9876598765
Name:Name: Jane SmithJane Smith
Value:Value: SilverSilver
LT Value:LT Value: A1A1
Master DataMaster Data
Party ID:Party ID: 238213923129238213923129
Name:Name: Jane SmithJane Smith
Middle:Middle: MayMay
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Life:Life: Whole of LifeWhole of Life
Policy No:Policy No: 3333333333333333
Pension:Pension: SIPPSIPP
Policy No:Policy No: 44444444444444
Value:Value: SilverSilver
LT Value:LT Value: A1A1
Cross Ref:Cross Ref: CRM 12345CRM 12345
DW 98765DW 98765
Alerts:Alerts: Potential to ChurnPotential to Churn
Interaction History:Interaction History:
Bond Valuation RequestedBond Valuation Requested
Customer ComplaintCustomer Complaint
Cust ID:Cust ID: 1234512345
Name:Name: Jane SmithJane Smith
Middle:Middle: MayMay
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Policy No:Policy No: 3333333333333333
Name:Name: Jane May SmithJane May Smith
Type:Type: Whole of LifeWhole of Life
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Premium:Premium: £50pm£50pm
Policy No:Policy No: 44444444444444
Name:Name: Jane SmithJane Smith
Type:Type: SIPPSIPP
Address:Address: 12 Low Street12 Low Street
BRISTOLBRISTOL
BS1 9SDBS1 9SD
Premium:Premium: £300pm£300pm
2. Load customer and policy based information from key sources
3. Cleanse, match, de-duplicate information to produce a single view
4. Support the capture of other new master data
5. Propagate the enriched information back to the key sources
1. Introduce a new application focused on master data
6. Regularly synchronise modified information between systems

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Information Management
Regulatory
Compliance
Marketing/Sales
Interactions
Billing
New Product
Introduction
Financial Planning
Back office
Systems
Fraud Avoidance
Customer
Service/ CareCustomer
Self Service
MDM Produces Better Business Outcomes
All departments and business processes
Optimizing the
business with right-
time information
Ensuring all systems
have consistent &
complete information
in real time
Maximizing customer
satisfaction &
revenue opportunities
Understanding the
choices & planning
with accurate
information
Enrich
Security
Search
Stewardship
Hierarchies
Tools
Operational
End to End
Master Data
ManagementAuthoring

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Business Drivers Key Business Processes
IBM InfoSphere MDM is a Leader in Banking
 Sales & Relationship Management
 KYC/Account Opening
 Product & Marketing Management
 Regulatory & Compliance
Business Driver: Up-sell/cross-sell
Offer history, improve customer
service, understand household
valuation.
Improve Compliance
Benefits: Marketing
effectiveness/rewards program;
Product & Account Penetration:
Compliance & fraud prevention
Business Driver:
Calculating total customer exposure in
a timely and accurate manner.
Consistent customer data delivered to
assisted and self-service channels
• Standardize customer on-boarding
in compliance with KYC/KYB
Policies
Benefits: Consistent customer centric
data (Unique-ID, Product/Account
Associations, Preferences) delivered
for Channel apps, Billing, Payments,
Funds-Control, Compliance.
Business Driver: Reduce systems
from 5 to 1 thus decreasing costs,
gain 360 degree view, improve data
quality
Benefits: Speed to Market and
Initiative Costs improved by 30-50%;
IT spend cost savings of >$50M
 Maximize marketing efficiency
 Streamline business operations and reduce cost
 Comply w/ regulatory requirements & reduce risk
 Win new customers and optimize sales channels
 Ensure quote-order-invoice accuracy alignment

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Business Drivers Key Business Processes
IBM InfoSphere MDM is a Leader in Insurance
 Sales & Relationship Management
 KYC/Account Opening
 Claims Processing
 Product & Marketing Management
 Regulatory & Compliance
Business Driver: Legacy systems are
process centric (e.g., policy
underwriting, claims, customer service,
etc.), unable to get a single
understanding of the customer
Benefits:
 Enable Broker cross and up-selling
and relationship management
 Establish new business in new
territories more quickly
 Improved business decision-
making (underwriting risk and
pricing)
Business Driver: Need for a single,
integrated view of customers to ensure
marketing campaigns didn’t encourage
internal conflict between the brands
and duplication of efforts
Benefits:
 Increased market share w/out
increasing marketing spend
 Saved approximately US$10 million
annually on integration costs
 Reduced direct mail and
operational costs by eliminating
duplicate mailings
Business Driver:
 Not able to effect customer-centric
decision-making in existing business
processes
 Existing systems were process-
centric (policy, service)
Benefits:
 Reduced internal operating costs by
maintaining a single system of record
 Improved cross selling to the most
profitable clients and households
 Client retention of profitable clients
 Increase ability to cross-sell/up-sell
 Increase margins (# of products per customer)
 Increase customer loyalty, lower claims
 Improve quality of information to identify risk

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Business Drivers Key Business Processes
IBM InfoSphere MDM is a Leader in Retail
 Introduce and manage products/services/bundles
 Deliver targeted, personalized marketing offers
 Optimize loyalty programs
 Service customers consistently across channels
and consistent with customer's preferences
 Analyze/understand customer behavior & affinity
Business Driver: Needed to update
information for approximately 10,000
products on its website.
Benefits:
 Creates a single, up-to-date
repository of product information
 Automates the publication of
product information on its website
 Increase client satisfaction by
giving them 100 details about a
product
 Updates require fewer human
resources and help improve
reactivity
Business Driver: Need to streamline
the buyer process to set up new items
and increase vendor accountability to
improve item data accuracy
Benefits:
 Elimination of manual item setup
processes
 Improved data quality
 Efficiently leveraging a single view
of “Item Data” across the
enterprise
Business Driver: Need to manage
multiple customer catalogs (websites),
multiple derivatives of the same
product
Benefits: Increased speed to market
for new products, reduced occurrence
of Out-of-Stocks, improved
merchandising performance, reduced
warehousing and distribution costs
 Increase revenue
 Improve customer service and retention
 Improve operational efficiencies / reduce costs
 Speed to market new products and promotions
 Improve credit management

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Business Drivers Key Business Processes
IBM InfoSphere MDM is a Leader in Telco
 Customer experience (loyalty) mgmt
 New customer acquisition
 Customer self service
 New product introduction
 Campaign & advertising optimization
 Bandwidth planning & optimization
Business Driver:
 Inefficient service call handling
 Low net revenue per call
 Manually calculated bundles resulting in
inaccurate order information
 Mismatch of quotes to bills and resulting
subscriber satisfaction and employee
churn
Benefits:
 Reduced subscriber and employee
churn
 Quicker order throughput
 Less service calls due to higher order
accuracy
 Higher revenue per call
Business Driver:
 No single customer view across LOBs
(Wireline/Wireless, SatTV, Broadband)
 CSRs treated the same subscriber
differently depending on individual LOB’s
value assessment
 Inability to effectively market to
subscribers for cross-sell
Benefits:
 Reduced internal operating costs by
maintaining a single system of record
 Improved cross selling to the most
profitable clients and households across
all BUs
 Client retention of profitable clients
Business Driver:
 Customers have to contact various
LOBs for personal information changes
 Lack of connection between Cellular
and Phone line customers.
 Silo’d customer information leading to:
 Lack of consistent information amongst
systems resulting in high errors
occurring between applications.
Benefits:
 Moving to customer-centric model.
 Enhanced Customer Experience.
 Improvement in Self-serve initiatives.
 360o view of the customer supported.
 Increase in customer satisfaction.
 Improve data quality.
 Increase ability to cross-sell/up-sell
 Optimize marketing campaign effectiveness
 Increase customer service and self-service
 Introduce products more quickly
 Maximize customer value

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IBM InfoSphere MDM is a Leader in Government
 Eligibility verification
 Threat detection – Law Enforcement / Intel
 Claims & account fraud
 Data sharing
 Regulatory and privacy requirements
Business Driver: Improve the efficiency and
competence of its caseworkers. Reduce need to
access several independent subsystems to
gather all of a citizen’s pertinent information,
Benefits:
 Equips caseworkers with increased visibility
into all of a citizen’s records, enabling them
to better identify all pertinent support
programs
 Routinely analyzes information to better
project future service demands and drive
efficiencies among programs
 Improves services to citizens by improving
collaboration among agency offices and
helping cut processing times for aid requests
Business Driver: Needed to
consolidate and update customer
information to improve services and
prevent fraud.
Benefits:
 Reduced administrative costs
 Minimized benefit fraud
 Improved customer service
Business Driver: Improve data
sharing and improve efficiencies to
avoid duplication so as to maximize
client services
Benefits:
 Realized an ongoing return on
investment
 Reduced the creation of duplicate
records
 Improved eligibility management
and cross-program enrollment
NYHHS State of ND
Business Drivers Key Business Processes
 Enhance customer / citizen service
 Reduce instances of fraud
 Increase self-service opportunities
 Reduce costs / increase revenue
 Achieve compliance

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IBM InfoSphere MDM is a Leader in Health Plans
 Member Centricity
 Claims Management
 Member Loyalty & Personalization
 Regulatory & Compliance
 Provider Centricity
Business Driver: Increase customer
loyalty and avoid costly compliance
penalties
Benefits:
Improved member retention and
customer satisfaction scores
Reduced exposure to regulatory
compliance penalties by overall
improvements in data management
Business Driver: Move from a system
centric view to a member centric view
to reduce redundancy and save money
Benefits:
Reduced duplicate mailings to same
member, resulting in $756K savings
per year
Improved reliable delivery of EOB to
correct person, preventing potential
compliancy fines of $1.5M per
infraction
Business Driver: Increase efficiency
and automatic claims adjudication
Benefits:
50% reduction in manual claims
review
Annual automatic claims increase:
372,000
Reduced manual claims resolution
staff by 75%
Business Drivers Key Business Processes
 Improve member and provider satisfaction and
retention
 Improve outcomes and lower costs
 Target high value customers with customized
benefits
 Quickly respond to new compliance requirements

15. © 2011 IBM Corporation
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Information Management
Lessons Learned – from over 600 implementations…..
 Successful MDM projects have been done
incrementally – don’t try to boil the ocean
 Identify low hanging fruit - find a compelling
business reason and start with a point solution
 Deliver real business value quickly – 4 to 6 months
 Though MDM is a strategic programme ROI on
First project is critical
 Time to implement is critical - you need small
successes quickly
 Plan to promote successes internally - build interest,
support and momentum
 Risk for building from scratch is proven to be
extremely high
 Establish an enterprise governance committee -
since really no one line of business "owns" the
customer
 It is extremely important that you consider existing
infrastructure when you start - surround - leverage
existing investments - not a full replacement out of
the gate

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Summary
MDM is a journey – it’s
essential to pick the right
partner for that journey …..

17. © 2011 IBM Corporation
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IBM is the leading MDM vendor…
 #1 market share
 600+ customers across a variety
of different industries
 Clients with 10+ years in
production
 Recognized MDM leader in
– Banking
– Insurance
– Healthcare
– Government
 A single unified offering across
– All domains
– All use cases
– All implementation styles
– All industries

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IBM is #1 in Market Share for MDM
(Source: Gartner, Sep 2011)
Overall MDM
Share (%) 2010
MDM of
Customer Data
Share (%) 2010
MDM of
Product Data
Share (%) 2010
IBM 20.1 40.3 11.2
Oracle 12.2 20.7 11.1
SAP 11.6 8.5 13.6
Informatica 4.4 11.6 -
Hybris 3.0 - 8.5
Stibo 2.0 - 5.6
Others 46.6 18.9 50.0

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Gartner Magic Quadrants 2010
MDM for Customer & MDM for Product, Oct 2010
MDM for Customer Data MDM for Product Data

20. © 2011 IBM Corporation
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Information Management
Bill Harte
MDM sales Europe
Bill.harte@ie.ibm.com
+353 86 3805585
Thank you ….