Category Archives: Master Data Management
The last few months have allowed me to see MDM, data quality and data governance from a completely different perspective. I sat with other leaders here at Informatica, analysts who focus on information quality and spent time talking to our partners who work closely with customers on data management initiatives. As we collectively attempted to peer into the crystal ball and forecast what will be hot – and what will not – in this year and beyond for MDM and data quality, here are few top predictions that stood out.
1. MDM will become a single platform for all master entities
“The classical notion of boundaries that existed where we would say, this is MDM versus this is not MDM is going to get blurred,” says Dennis Moore – SVP, Information Quality Solutions (IQS), Informatica. “Today, we master a fairly small number of attributes in MDM. Rather than only mastering core attributes, we need to master business level entities, like customer, product, location, assets, things, etc., and combine all relevant attributes into a single platform which can be used to develop new “data fueled” applications. This platform will allow mastering of data, aggregate data from other sources, and also syndicate that data out into other systems.”
Traditionally MDM was an invisible hub that was connected to all the spokes. Instead, Dennis says – “MDM will become more visible and will act as an application development platform.”
2. PIM is becoming more integrated environment that covers all information about products and related data in single place
More and more customers want to have single interface which will allow them to manage all product information. Along with managing a product’s length, width, height, color, cost etc., they probably want to see data about the history, credit rating, previous quality rating, sustainability scorecard, returns, credits and so on. Dennis says – “All the product information in one place helps make better decisions with embedded analytics, giving answers to questions such as:
- What were my sales last week?
- Which promotions are performing well and poorly?
- Which suppliers are not delivering on their SLAs?
- Which stores aren’t selling according to plan?
- How are the products performing in specific markets?”
Essentially, PIM will become a sovereign supplier of product data that goes in your catalog and ecommerce system that will be used by merchandisers, buyers, and product and category managers. It will become the buyer’s guide and a desktop for the person whose job is to figure out how to effectively promote products to meet sales targets.
3. MDM will become an integral part of big data analytics projects
“Big data analytics suffers from the same challenges as traditional data warehouses – bad data quality produces sub-optimal intelligence. MDM has traditionally enabled better analysis and reporting with high quality master data. Big data analytics will also immensely benefit from MDM’s most trustworthy information.” – Said Ravi Shankar – VP of Product Marketing, MDM, Informatica
Naveen Sharma who heads Enterprise Data Management practice at Cognizant reemphasized what I heard from Dennis. He says – “With big data and information quality coming together, some of the boundaries between a pure MDM system and a pure analytical system will start to soften”. Naveen explains – “MDM is now seen as an integral part of big data analytics projects and it’s a huge change from a couple of years ago. Two of large retailers we work with are going down the path of trying to bring not only the customer dimension but the associated transactional data to derive meaning into an extended MDM platform. I see this trend continuing in 2015 and beyond with other verticals as well.”
4. Business requirements are leading to the creation of solutions
There are several business problems being solved by MDM, such as improving supplier spend management and collaboration with better supplier data. Supply chain, sourcing and procurement teams gain significant cost savings and a boost in productivity by mastering supplier, raw materials and product information and fueling their business and analytical applications with that clean, consistent and connected information. Jakki Geiger, Senior Director of IQS Solutions Marketing at Informatica says, “Business users want more than just the underlying infrastructure to manage business-critical data about suppliers, raw materials, and products. They want to access this information directly through a business-friendly user interface. They want a business process-driven workflow to manage the full supplier lifecycle, including: supplier registration, qualification, verification, onboarding and off-boarding. Instead of IT building these business-user focused solutions on top of an MDM foundation, vendors are starting to build ready-to-use MDM solutions like the Total Supplier Relationship solution.” Read more about Valspar’s raw materials spend management use case.
5. Increased adoption of matching and linking capabilities on Hadoop
“Many of our customers have significantly increased the amount of data they want to master,” says Dennis Moore. Days when tens of millions of master records were a lot are long gone and having hundreds of millions of master records and billions of source records is becoming almost common. An increasing number of master data sources –internal and external to organization – are contributing significantly to the rise in data volumes. To accommodate these increasing volumes, Dennis predicts that large enterprises will look at running complex matching and linking capabilities on Hadoop – a cost effective and flexible way to analyze large amount of data.
6. Master insight management is going to be next big step
“MDM will evolve into master insight management as organizations try to relate trusted data they created in MDM with transactional and social interaction data,” said Rob Karel – VP of Product Strategy and Product Marketing, IQS, Informatica. “The innovations in machine and deep learning techniques will help organizations such as healthcare prescribe next best treatment based on history of patients, retailers suggest best offers based on customer interest and behavior, public sector companies will see big steps in social services, etc.”
Rob sees MDM at the heart of this innovation bringing together relevant information about multiple master entities and acting as a core system for insight management innovations.
7. MDM and Data Governance
Aaron Zornes – Chief research officer at the MDM Institute predicts that in 2014-15, vendor MDM solutions will move from “passive-aggressive” mode to “proactive” data governance mode. Data governance for MDM will move beyond simple stewardship to convergence of task management, workflow, policy management and enforcement according to Aaron.
8. The market will solidify for cloud based MDM adoption
Aaron says – “Cloud-innate services for DQ and DG will be more prevalent; however, enterprise MDM will remain on premise with increasing integration to cloud applications in 2015.
Naveen sees lot of synergy around cloud based MDM offerings and says – “The market is solidifying for MDM on cloud but the flood gates are yet to open”. Naveen does not see any reason why MDM market will not go to cloud and gives the example of CRM which was at similar junction before Saleforce came into play. Naveen sees similar shift for MDM and says – “The fears companies have about their data security on cloud is eventually going to fade. If you look closely at any of the recent breaches, these all involved hacks into company networks and not into cloud provider networks. The fact that cloud service providers spend more dollars on data security than any one company can spend on their on-premise security layer will be a major factor affecting the transition”. Naveen sees that big players in MDM will include cloud offerings as part of their toolkit in coming years.
Ravi also predicts an increase in cloud adoption for MDM in future as the concern for placing master data in the cloud becomes less with maximum security provided by cloud vendors.
So, what do you predict? I would love to hear your opinions and comments.
In my point of view, heavily influenced by the customers and analyst I am meeting, these 5 trends are impacting omnichannel commerce for better personalization and customer experience in 2015 and beyond.
- Issue of the informed purchase journey: A Google study (*Google ZMOT Handbook) shows that, on average, across all categories, shoppers use 10.4 sources of information to make a decision. This includes, among other things, watching TV ads, looking up manufacturer websites, talking to family and friends, reading reviews, and checking Amazon. Customers are increasingly visiting websites across multiple devices, and the final location where they make a purchase can be very different from the initial point of interaction. When do they have enough information to buy?
- Three levels of Trust : Customer expect three levels of trust – SOCIAL TRUST, PRODUCT TRUST and BRAND TRUST. Social trust: means what do my friends recommend? Conversions go up by 133%* when trusted people recommend products. Brands and retailers can sell more with relevant information, including social data (aggregating and reusing). Sorry but this is again one more votum for tanking BIG DATA seriously. I believe customer-centric organizations are going to use a combination of data management and big data analytics to improve the quality and accelerate the business value of their big data projects. In particular, companies will apply these capabilities to greatly improve their ability to acquire, retain and grow their customer share of wallet with more personalized marketing. For example, one insurance company we work wants to better understand their customers, household and prospects through real-time customer and prospect profiling on Hadoop. This data management and big data analytics initiative will improve their marketing campaign effectiveness by targeting specific people with relevant offers. They will be able to answer questions such as:
- How many of these people are customers vs. prospects?
- Who else lives in this household?
- Which products do they already have?
- What relationships do they have with other customers, beneficiaries, prospects, agents?
- Which offers have they responded to that we sent them in the past?
- What life events, changes to address, income or employment have they experienced?
- Which customers are likely to churn?
Product trust: which products shall we offer for which price? Or the customer wants to know if he buys the latest version of the digital radio or the cable. Companies need quicker insights for taking decisions on their assortment, prices and compelling contentr and for better customer facing service.
Brand trust: the brand experience is so important. Brands and retailers need to be more efficient when creating market ready products, with videos, content and all what creates emotions.
3. Store fulfillment & in-store experience will become a big investment area, and retailers will look to omni-channel solutions that can provide provide transparency into inventory to help manage customer expectations. Use the store as warehouse and ship from the nearest store. The use if digital devices and information panels will gain much more attention. Gartner predicts that by year-end 2016 more than $2 billion in online shopping will be performed exclusively by mobile digital assistants.
4. The mobile conversion: revenue spend on mobile is growing. Forrester Research projects sales from consumers shopping on mobile phones will increase to $38 billion this year and sales from tablets will hit $76 billion, or about $114 billion in total in the US. Most Online Shopping Still Happens on PCs. 95% of smartphone users say they’ve searched for local information. 90% of those users take action within 24 hours. 61% of smartphone users called a business after searching. 59% visited a local business after searching. But conversions on mobile devices need to be improved. With better and more relevant information – I call it commerce relevancy.
5. Virtual Reality is taking customer experience to the next level. Augmented reality was a first step, but I believe virtual reality (VR) will take it even further. I learned from my colleague Nicholas Goupil, that Samsung Gear by Oculus VR and similar products will change the game of gaming. What are the potentials for brands and retailers to enhance customer experience?
What are your expectations on 2015 omnichannel trends?
Let’s chat @benrund or face-to-face during NRF in NYC.
As we renew or reinvent ourselves for 2015, I wanted to share a case of “imagine if” with you and combine it with the narrative of an American frontier town out West, trying to find a new Sheriff – a Wyatt Earp. In this case the town is a legacy European communications firm and Wyatt and his brothers are the new managers – the change agents.
Here is a positive word upfront. This operator has had some success in rolling outs broadband internet and IPTV products to residential and business clients to replace its dwindling copper install base. But they are behind the curve on the wireless penetration side due to the number of smaller, agile MVNOs and two other multi-national operators with a high density of brick-and-mortar stores, excellent brand recognition and support infrastructure. Having more than a handful of brands certainly did not make this any easier for our CSP. To make matters even more challenging, price pressure is increasingly squeezing all operators in this market. The ones able to offset the high-cost Capex for spectrum acquisitions and upgrades with lower-cost Opex for running the network and maximizing subscriber profitability, will set themselves up for success (see one of my earlier posts around the same phenomenon in banking).
Not only did they run every single brand on a separate CRM and billing application (including all the various operational and analytical packages), they also ran nearly every customer-facing-service (CFS) within a brand the same dysfunctional way. In the end, they had over 60 CRM and the same number of billing applications across all copper, fiber, IPTV, SIM-only, mobile residential and business brands. Granted, this may be a quite excessive example; but nevertheless, it is relevant for many other legacy operators.
As a consequence, their projections indicate they incur over €600,000 annually in maintaining duplicate customer records (ignoring duplicate base product/offer records for now) due to excessive hardware, software and IT operations. Moreover, they have to stomach about the same amount for ongoing data quality efforts in IT and the business areas across their broadband and multi-play service segments.
Here are some more consequences they projected:
- €18.3 million in call center productivity improvement
- €790,000 improvement in profit due to reduced churn
- €2.3 million reduction in customer acquisition cost
- And if you include the fixing of duplicate and conflicting product information, add another €7.3 million in profit via billing error and discount reduction (which is inline with our findings from a prior telco engagement)
Despite major business areas not having contributed to the investigation and improvements being often on the conservative side, they projected a 14:1 return ratio between overall benefit amount and total project cost.
Coming back to the “imagine if” aspect now, one would ask how this behemoth of an organization can be fixed. Well, it will take years but without management (in this case new managers busting through the door), this organization has the chance to become the next Rocky Mountain mining ghost town.
The good news is that this operator is seeing some management changes now. The new folks have a clear understanding that business-as-usual won’t do going forward and that centralization of customer insight (which includes some data elements) has its distinct advantages. They will tackle new customer analytics, order management, operational data integration (network) and next-best-action use cases incrementally. They know they are in the data, not just the communication business. They realize they have to show a rapid succession of quick wins rather than make the organization wait a year or more for first results. They have fairly humble initial requirements to get going as a result.
You can equate this to the new Sheriff not going after the whole organization of the three, corrupt cattle barons, but just the foreman of one of them for starters. With little cost involved, the Sheriff acquires some first-hand knowledge plus he sends a message, which will likely persuade others to be more cooperative going forward.
What do you think? Is new management the only way to implement drastic changes around customer experience, profitability or at least understanding?
Happy Holidays, Happy HoliData
In case you have missed our #HappyHoliData series on Twitter and LinkedIn, I decided to provide a short summary of best practices which are unleashing information potential. Simply scroll and click on the case study which is relevant for you and your business. The series touches on different industries and use cases. But all have one thing in common: All consider information quality as key value to their business to deliver the right services or products to the right customer.
Thanks a lot to all my great teammates, who made this series happen.
Happy Holidays, Happy HoliData.
At the DIA conference in Berlin this month, Frits Stulp of Mesa Arch Consulting suggested that IDMP could get the business asking for MDM. After looking at the requirements for IDMP compliance for approximately a year, his conclusion from a business point of view is that MDM has a key role to play in IDMP compliance. A recent press release by Andrew Marr, an IDMP and XEVMPD expert and specialist consultant, also shows support for MDM being ‘an advantageous thing to do’ for IDMP compliance. A previous blog outlined my thoughts on why MDM can turn regulatory compliance into an opportunity, instead of a cost. It seems that others are now seeing this opportunity too.
So why will IDMP enable the business (primarily regulatory affairs) to come to the conclusion that they need MDM? At its heart, IDMP is a pharmacovigilance initiative which has a goal to uniquely identify all medicines globally, and have rapid access to the details of the medicine’s attributes. If implemented in its ideal state, IDMP will deliver a single, accurate and trusted version of a medicinal product which can be used for multiple analytical and procedural purposes. This is exactly what MDM is designed to do.
Here is a summary of the key reasons why an MDM-based approach to IDMP is such a good fit.
1. IDMP is a data Consolidation effort; MDM enables data discovery & consolidation
- IDMP will probably need to populate between 150 to 300 attributes per medicine
- These attributes will be held in 10 to 13 systems, per product.
- MDM (especially with close coupling to Data Integration) can easily discover and collect this data.
2. IDMP requires cross-referencing; MDM has cross-referencing and cleansing as key process steps.
- Consolidating data from multiple systems normally means dealing with multiple identifiers per product.
- Different entities must be linked to each other to build relationships within the IDMP model.
- MDM allows for complex models catering for multiple identifiers and relationships between entities.
3. IDMP submissions must ensure the correct value of an attribute is submitted; MDM has strong capabilities to resolve different attribute values.
- Many attributes will exist in more than one of the 10 to 13 source systems
- Without strong data governance, these values can (and probably will be) different.
- MDM can set rules for determining the ‘golden source’ for each attribute, and then track the history of these values used for submission.
4. IDMP is a translation effort; MDM is designed to translate
- Submission will need to be within a defined vocabulary or set of reference data
- Different regulators may opt for different vocabularies, in addition to the internal set of reference data.
- MDM can hold multiple values/vocabularies for entities, depending on context.
5. IDMP is a large co-ordination effort; MDM enables governance and is generally associated with higher data consistency and quality throughout an organisation.
- The IDMP scope is broad, so attributes required by IDMP may also be required for compliance to other regulations.
- Accurate compliance needs tracking and distribution of attribute values. Attribute values submitted for IDMP, other regulations, and supporting internal business should be the same.
- Not only is MDM designed to collect and cleanse data, it is equally comfortable for data dispersion and co-ordination of values across systems.
Once business users assess the data management requirements, and consider the breadth of the IDMP scope, it is no surprise that some of them could be asking for a MDM solution. Even if they do not use the acronym ‘MDM’ they could actually be asking for MDM by capabilities rather than name.
Given the good technical fit of a MDM approach to IDMP compliance, I would like to put forward three arguments as to why the approach makes sense. There may be others, but these are the ones I feel are most compelling:
1. Better chance to meet tight submission time
There is slightly over 18 months left before the EMA requires IDMP compliance. Waiting for final guidance will not provide enough time for compliance. Using MDM you have a tool to begin with the most time consuming tasks: data discovery, collection and consolidation. Required XEVMPD data, and the draft guidance can serve as a guide as to where to focus your efforts.
2. Reduce Risk of non-compliance
With fines in Europe of ‘fines up to 5% of revenue’ at stake, risking non-compliance could be expensive. Not only will MDM increase your chance of compliance on July 1, 2016, but will give you a tool to manage your data to ensure ongoing compliance in terms of meeting deadlines for delivering new data, and data changes.
3. Your company will have a ready source of clean, multi-purpose product data
Unlike some Regulatory Information Management tools, MDM is not a single-purpose tool. It is specifically designed to provide consolidated, high-quality master data to multiple systems and business processes. This data source could be used to deliver high-quality data to multiple other initiatives, in particular compliance to other regulations, and projects addressing topics such as Traceability, Health Economics & Outcomes, Continuous Process Verification, Inventory Reduction.
So back to the original question – will the introduction of IDMP regulation in Europe result in the business asking IT to implement MDM? Perhaps they will, but not by name. It is still possible that they won’t. However, for those of you who have been struggling to get buy-in to MDM within your organisation, and you need to comply to IDMP, then you may be able to find some more allies (potentially with an approved budget) to support you in your MDM efforts.
While virtual reality isn’t new, the technology has recently been picking up speed in the tech world. With Facebook’s purchase virtual reality company Oculus earlier this year, the momentum behind the technology hasn’t ceased to increase. With the commercialization of a consumer ready virtual reality product next year, what does it mean beyond the realm of gaming? Is it significant for brand manufacturers and retailers? Will VR be a trend, or reserved solely to gaming or will it reshape how consumers all over the world interact with brands and products?
I was only recently made aware of those new technologies, by my colleague Nicholas Goupil. He introduced me to products such as the Oculus Rift and the Samsung Gear VR, which are products poised to participate in revolutionizing the gaming industry. While not a “gamer” myself, it was nearly impossible not to think about the commercial possibilities.
Gaming aside, what does it mean for brands and retailers? Could this new wave of VR products provide customers with experiences that will redefine product merchandising?
Some thoughts on use cases for Virtual Reality
- Travel and Hospitality – Become a globetrotter from the comfort of your home. (Japan example)
- Real Estate – Walk thought a house as if you were there.
- Test drive a new car’s interior from the comfort of your home
- Movies: forget 4K resolution, how about full 360 degrees 4K real time recording and playback?
- Sport events: experience replays or the game in full 360 degrees motion
- Concerts: Have the best seat in the house (no pun intended)
Clearly, VR products like the Oculus Rift are still in development, with consumer products promised for 2015. With the company’s recent acquisition of Nimbus AR, a company focused on making the VR experience a more natural and interactive one, the future of such a product seem endless.
What are your thoughts and expectations with VR? Do you think it will be life changing for consumers and businesses? Rendering large volume digital assets is no longer a issue today. For me Virtual Reality will open total new ways to envision customer experience in 2015 and beyond.
The other day I ran across an article on CMO.com from a few months ago entitled “Total Customer Value Trumps Simple Loyalty in Digital World”. It’s a great article, so I encourage you to go take a look, but the basic premise is that loyalty does not necessarily equal value in today’s complicated consumer environment.
Customers can be loyal for a variety of reasons as the author Samuel Greengard points out. One of which may be that they are stuck with a certain product or service because they believe there is no better alternative available. I know I can relate to this after a recent series of less-than-pleasant experiences with my bank. I’d like to change banks, but frankly they’re all about the same and it just isn’t worth the hassle. Therefore, I’m loyal to my unnamed bank, but definitely not an advocate.
The proverbial big fish in today’s digital world, according to the author, are customers who truly identify with the brand and who will buy the company’s products eagerly, even when viable alternatives exist. These are the customers who sing the brand’s praises to their friends and family online and in person. These are the customers who write reviews on Amazon and give your product 5 stars. These are the customers who will pay markedly more just because it sports your logo. And these are the customers whose voices hold weight with their peers because they are knowledgeable and passionate about the product. I’m sure we all have a brand or two that we’re truly passionate about.
Total Customer Value in the Pool
My 13 year old son is a competitive swimmer and will only use Speedo goggles – ever – hands down – no matter what. He wears Speedo t-shirts to show his support. He talks about how great his goggles are and encourages his teammates to try on his personal pair to show them how much better they are. He is a leader on his team, so when newbies come in and see him wearing these goggles and singing their praises, and finishing first, his advocacy holds weight. I’m sure we have owned well over 30 pair of Speedo goggles over the past 4 years at $20 a pop – and add in the T-Shirts and of course swimsuits – we probably have a historical value of over $1000 and a potential lifetime value of tens of thousands (ridiculous I know!). But if you add in the influence he’s had over others, his value is tremendously more – at least 5X.
This is why data is king!
I couldn’t agree more that total customer value, or even total partner or total supplier value, is absolutely the right approach, and is a much better indicator of value. But in this digital world of incredible data volumes and disparate data sources & systems, how can you really know what a customer’s value is?
The marketing applications you probably already use are great – there are so many great automation, web analytics, and CRM systems around. But what fuels these applications? Your data.
Most marketers think that data is the stuff that applications generate or consume. As if all data is pretty much the same. In truth, data is a raw ingredient. Data-driven marketers don’t just manage their marketing applications, they actively manage their data as a strategic asset.
How are you using data to analyze and identify your influential customers? Can you tell that a customer bought their fourth product from your website, and then promptly tweeted about the great deal they got on it? Even more interesting, can you tell that that five of their friends followed the link, 1 bought the same item, 1 looked at it but ended up buying a similar item, and 1 put it in their cart but didn’t buy it because it was cheaper on another website? And more importantly, how can you keep this person engaged so they continue their brand preference – so somebody else with a similar brand and product doesn’t swoop in and do it first? And the ultimate question… how can you scale this so that you’re doing this automatically within your marketing processes, with confidence, every time?
All marketers need to understand their data – what exists in your information ecosystem , whether it be internally or externally. Can you even get to the systems that hold the richest data? Do you leverage your internal customer support/call center records? Is your billing /financial system utilized as a key location for customer data? And the elephant in the room… can you incorporate the invaluable social media data that is ripe for marketers to leverage as an automated component of their marketing campaigns?
This is why marketers need to care about data integration…
Even if you do have access to all of the rich customer data that exists within and outside of your firewalls, how can you make sense of it? How can you pull it together to truly understand your customers… what they really buy, who they associate with, and who they influence. If you don’t, then you’re leaving dollars, and more importantly, potential advocacy and true customer value, on the table.
This is why marketers need to care about achieving a total view of their customers and prospects…
And none of this matters if the data you are leveraging is plain incorrect or incomplete. How often have you seen some analysis on an important topic, had that gut feeling that something must be wrong, and questioned the data that was used to pull the report? The obvious data quality errors are really only the tip of the iceberg. Most of the data quality issues that marketers face are either not glaringly obvious enough to catch and correct on the spot, or are baked into an automated process that nobody has the opportunity to catch. Making decisions based upon flawed data inevitably leads to poor decisions.
This is why marketers need to care about data quality.
So, as the article points out, don’t just look at loyalty, look at total customer value. But realize, that this is easier said than done without a focusing in on your data and ensuring you have all of the right data, at the right place, in the right format, right away.
Now… Brand advocates, step up! Share with us your favorite story. What brands do you love? Why? What makes you so loyal?
LNC Group analysts recently released their second PIM market and vendor report. And, for the second time, Informatica has been positioned as the leader in the 2014 PIM Market Performance Wheel, issued by LNC in Germany.
Informatica Ranked First in Latest LNC PIM Market Performance Wheel
Informatica’s continued leadership position in the LNC PIM Market Performance Wheel reaffirms the strong execution and vision of our PIM product. Our ranking also reaffirms the acceptance of our product among our customers. Our PIM focus is to provide a data-fueled application that empowers business users to sell their products more quickly. When integrated with Informatica’s leading multidomain Master Data Management (MDM) product (based on our Intelligent Data Platform) our customers have a complete solution. This integrated solution is both flexible and business-user focused. This allows our customers to offer the right product to the right customer at the right time.
It has been a year of strong recognition for the Informatica PIM product line. After being positioned as a leader in the Forrester PIM Wave, being named a HOT Vendor in the Ventana Research PIM Index, the leading position in the Information difference MDM landscape, hitting the bulls eye as champion in Bloor’s MDM report and the highest revenue growth with 57% due to Gartner’s MQ for product data (average market growth was 8.7%), the LNC Market Performance Wheel completes the picture of our PIM vision.
LNC’s PIM Market Performance Wheel covers the top eight ranked vendors analyzing four categories as technology, ability to execute, market strength, and future readiness. These are the key findings:
- Informatica PIM achieved the highest ranking of all vendors with 85 points and leads three of four categories evaluated
- Informatica PIM realized the best in market strength
- Informatica leads the pack in ability to execute
- Informatica has the highest future readiness rank
Read this report to understand the major PIM vendors, including Informatica, and their strengths and weaknesses. Our Informatica PIM delivers real value to customers across multiple industries, business cases, and geographical regions. Informatica PIM helps companies to sell more products, faster.
Informatica PIM provides a centralized platform for omnichannel commerce. We empower companies like yours to:
- Improve customer experience
- Optimize supply chain
- Speed up time to market
The PIM Market Performance Wheel is the perfect resource if you’re exploring a PIM project. Learn more … download the German version now
According to Accenture – 2013 Global Consumer Pulse Survey, “85 percent of customers are frustrated by dealing with a company that does not make it easy to do business with them, 84 percent by companies promising one thing, but delivering another; and 58 percent are frustrated with inconsistent experiences from channel to channel.”
Consumers expect more from the companies they do business with. In response, many companies are shifting from managing their business based on an application-, account- or product-centric approach to a customer-centric approach. And this is one of the main drivers for master data management (MDM) adoption. According to a VP of Data Strategy & Services at one of the largest insurance companies in the world, “Customer data is the lifeblood of a company that is serious about customer-centricity.” So, better managing customer data, which is what MDM enables you to do, is a key to the success of any customer-centricity initiative. MDM provides a significant competitive differentiation opportunity for any organization that’s serious about improving customer experience. It enables customer-facing teams to assess the value of any customer, at the individual, household or organization level.
Amongst the myriad business drivers of a customer-centricity initiative, key benefits include delivering an enhanced customer experience – leading to higher customer loyalty and greater share of wallet, more effective cross-sell and upsell targeting to increase revenue, and improved regulatory compliance.
To truly achieve all the benefits expected from a customer-first, customer-centric strategy, we need to look beyond the traditional approaches of data quality and MDM implementations, which often consider only one foundational (yet important) aspect of the technology solution. The primary focus has always been to consolidate and reconcile internal sources of customer data with the hope that this information brought under a single umbrella of a database and a service layer will provide the desired single view of customer. But in reality, this data integration mindset misses the goal of creating quality customer data that is free from duplication and enriched to deliver significant value to the business.
Today’s MDM implementations need to take their focus beyond mere data integration to be successful. In the following section, I will explain 3 levels of customer views which can be built incrementally to be able to make most out of your MDM solution. When implemented fully, these customer views act as key ingredients for improving the execution of your customer-centric business functions.
Trusted Customer View
The first phase of the solution should cover creation of trusted customer view. This view empowers your organization with an ability to see complete, accurate and consistent customer information.
In this stage, you take the best information from all the applications and compile it into a single golden profile. You not only use data integration technology for this, but also employ data quality tools to ensure the correctness and completeness of the customer data. Advanced matching, merging and trust framework are used to derive the most up-to-date information about your customer. You also guarantee that the golden record you create is accessible to business applications and systems of choice so everyone who has the authority can leverage the single version of the truth.
At the end of this stage, you will be able to clearly say John D. who lives at 123 Main St and Johnny Doe at 123 Main Street, who are both doing business with you, are not really two different individuals.
Customer Relationships View
The next level of visibility is about providing a view into the customer’s relationships. It takes advantage of the single customer view and layers in all valuable family and business relationships as well as account and product information. Revealing these relationships is where the real value of multidomain MDM technology comes into action.
At the end of this phase, you not only see John Doe’s golden profile, but the products he has. He might have a personal checking from the Retail Bank, a mortgage from the Mortgage line of business, and brokerage and trust account with the Wealth Management division. You can see that John has his own consulting firm. You can see he has a corporate credit card and checking account with the Commercial division under the name John Doe Consulting Company.
At the end of this phase, you will have a consolidated view of all important relationship information that will help you evaluate the true value of each customer to your organization.
Customer Interactions and Transactions View
The third level of visibility is in the form of your customer’s interactions and transactions with your organization.
During this phase, you tie transactional information, historical data and social interactions your customer has with your organization to further enhance the system. Building this view provides you a whole new world of opportunities because you can see everything related to your customer in one central place. Once you have this comprehensive view, when John Doe calls your call center, you know how valuable he is to your business, which product he just bought from you (transactional data), what is the problem he is facing (social interactions).
A widely accepted rule of thumb holds that 80 percent of your company’s future revenue will come from 20 percent of your existing customers. Many organizations are trying to ensure they are doing everything they can to retain existing customers and grow wallet share. Starting with Trusted Customer View is first step towards making your existing customers stay. Once you have established all three states discussed here, you can arm your customer-facing teams with a comprehensive view of customers so they can:
- Deliver the best customer experiences possible at every touch point,
- Improve customer segmentation for tailored offers, boost marketing and sales productivity,
- Increase cross-sell and up-sell success, and
- Streamline regulatory reporting.
Achieving the 3 views discussed here requires a solid data management platform. You not only need an industry leading multidomain MDM technology, but also require tools which will help you integrate data, control the quality and connect all the dots. These technologies should work together seamlessly to make your implementation easier and help you gain rapid benefits. Therefore, choose your data management platform. To know more about MDM vendors, read recently released Gartner’s Magic Quadrant for MDM of Customer Data Solutions.
Citrix: You may not realize you know them, but chances are pretty good that you do. And chances are also good that we marketers can learn something about achieving fortune teller-like marketing from them!
Citrix is the company that brought you GoToMeeting and a whole host of other mobile workspace solutions that provide virtualization, networking and cloud services. Their goal is to give their 100 million users in 260,000 organizations across the globe “new ways to work better with seamless and secure access to the apps, files and services they need on any device, wherever they go.”
Citrix is a company that has been imagining and innovating for over 25 years, and over that time, has seen a complete transformation in their market – virtual solutions and cloud services didn’t even exist when they were founded. Now it’s the backbone of their business. Their corporate video proudly states that the only constant in this world is change, and that they strive to embrace the “yet to be discovered.”
Having worked with them quite a bit over the past few years, we have seen first-hand how Citrix has demonstrated their ability to embrace change.
Back in 2011, it became clear to Citrix that they had a data problem, and that they would have to make some changes to stay ahead in this hyper competitive market. Sales & Marketing had identified data as their #1 concern – their data was incomplete, inaccurate, and duplicated in their CRM system. And with so many different applications in the organization, it was quite difficult to know which application or data source had the most accurate and up-to-date information. They realized they needed a single source of the truth – one system of reference where all of their global data management practices could be centralized and consistent.
The marketing team realized that they needed to take control of the solution to their data concerns, as their success truly depended upon it. They brought together their IT department and their systems integration partner, Cognizant to determine a course of action. Together they forged an overall data governance strategy which would empower the marketing team to manage data centrally – to be responsible for their own success.
As a key element of that data governance / management strategy, they determined that they needed a Master Data Management (MDM) solution to serve as their Single Trusted Source of Customer & Prospect Data. They did a great deal of research into industry best practices and technology solutions, and decided to select Informatica as their MDM partner. As you can see, Citrix’s environment is not unlike most marketing organizations. The difference is that they are now able to capture and distribute better customer and prospect data to and from these systems to achieve even better results. They are leveraging internal data sources and systems like CRM (Salesforce) and marketing automation (Marketo). Their systems live all over the enterprise, both on premises and in the cloud. And they leverage analytical tools to analyze and dashboard their results.
Citrix strategized and implemented their Single Trusted Source of Customer & Prospect solution in a phased approach throughout 2013 and 2014, and we believe that what they’ve been able to accomplish during that short period of time has been nothing short of phenomenal. Here are the higlights:
- Used Informatica MDM to provide clean, consistent and connected channel partner, customer and prospect data and the relationships between them for use in operational applications (SFDC, BI Reporting and Predictive Analytics)
- Recognized 20% increase in lead-to-opportunity conversion rates
- Realized 20% increase in marketing team’s operational efficiency
- Achieved 50% increase in quality of data at the point of entry, and a 50% reduction in the rate of junk and duplicate data for prospects, existing accounts and contact
- Delivered a better channel partner and customer experience by renewing all of a customers’ user licenses across product lines at one time and making it easy to identify whitespace opportunities to up-sell more user licenses
That is huge! Can you imagine the impact on your own marketing organization of a 20% increase in lead-to-opportunity conversion? Can you imagine the impact of spending 20% less time questioning and manually massaging data to get the information you need? That’s game changing!
Because Citrix now has great data and great resulting insight, they have been able to take the next step and embark on new fortune teller-like marketing strategies. As Citrix’s Dagmar Garcia discussed during a recent webinar, “We monitor implicit and explicit behavior of transactional leads and accounts, and then we leverage these insights and previous behaviors to offer net new offers and campaigns to our customers and prospects… And it’s all based on the quality of data we have within our database.”
I encourage you to take a few minutes to listen to Dagmar discuss Citrix’s project on a recent webinar. In the webinar, she dives deeper into their project, the project scope and timeline, and to what she means by “fortune telling abilities”. Also, take a look at the customer story section of the Informatica.com website for the PDF case study. And, if you’re in the mood to learn more, you can download a complimentary copy of the 2014 Gartner Magic Quadrant for MDM of Customer Data Solutions.
Hat’s off to you Citrix, and we look forward to working with you to continue to change the game even more in the coming months and years!