Category Archives: Operational Efficiency

Master Data Management in Oil and Gas Industry

MDM_Oil+Gas Industry

Master Data Management in Oil and Gas Industry

The Oil and Gas (O&G) industry is an important backbone of every economy. It is also an industry that has weathered the storm of constantly changing economic trends, regulations and technological innovations. O&G companies by nature have complex and intensive data processes. For a profitable functioning under changing trends, policies and guidelines, O&G’s need to manage these data processes really well.

The industry is subject to pricing volatility based on microeconomic pattern of supply and demand affected by geopolitical developments, economic meltdown and public scrutiny. The competition from other sources such as cheap natural gas and low margins are adding fuel to the burning fire making it hard for O&G’s to have a sustainable and predictable outcome.

A recent PWC survey of oil and gas CEOs similarly concluded that “energy CEOs can’t control market factors such as the world’s economic health or global oil supply, but can change how they respond to market conditions, such as getting the most out of technology investments, more effective use of partnerships and diversity strategies.”  The survey also revealed that nearly 80% of respondents agreed that digital technologies are creating value for their companies when it comes to data analysis and operational efficiency.

O&G firms run three distinct business operations; upstream exploration & production (E&P’s), midstream (storage & transportation) and downstream (refining & distribution). All of these operations need a few core data domains being standardized for every major business process. However, a key challenge faced by O&G companies is that this critical core information is often spread across multiple disparate systems making it hard to take timely decisions. To ensure effective operations and to grow their asset base, it is vital for these companies to capture and manage critical data related to these domains.

E&P’s core data domains include wellhead/materials (asset), geo-spatial location data and engineer/technicians (associate). Midstream includes trading partners and distribution and downstream includes commercial and residential customers. Classic distribution use cases emerge around shipping locations, large-scale clients like airlines and other logistics providers buying millions of gallons of fuel and industrial lube products down to gas station customers. The industry also relies heavily on reference data and chart of accounts for financial cost and revenue roll-ups.

The main E&P asset, the well, goes through its life cycle and changes characteristics (location, ID, name, physical characterization, depth, crew, ownership, etc.), which are all master data aspects to consider for this baseline entity. If we master this data and create a consistent representation across the organization, it can then be linked to transaction and interaction data so that O&G’s can drive their investment decisions, split cost and revenue through reporting and real-time processes around

  • Crew allocation
  • Royalty payments
  • Safety and environmental inspections
  • Maintenance and overall production planning

E&P firms need a solution that allows them to:

  • Have a flexible multidomain platform that permits easier management of different entities under one solution
  • Create a single, cross-enterprise instance of a wellhead master
  • Capture and master the relationships between the well, equipment, associates, land and location
  • Govern end-to-end management of assets, facilities, equipment and sites throughout their life cycle

The upstream O&G industry is uniquely positioned to take advantage of vast amount of data from its operations. Thousands of sensors at the well head, millions of parts in the supply chain, global capital projects and many highly trained staff create a data-rich environment. A well implemented MDM brings a strong foundation for this data driven industry providing clean, consistent and connected information about the core master data so these companies can cut the material cost, IT maintenance and increase margins.

To know more on how you can achieve upstream operational excellence with Informatica Master Data Management, check out this recorded webinar with @OilAndGasData

~Prash
@MDMGeek
www.mdmgeek.com

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Posted in Data Quality, Operational Efficiency, Utilities & Energy | Tagged , , , | Leave a comment

Informatica joins new ServiceMax Marketplace – offers rapid, cost effective integration with ERP and Cloud apps for Field Service Automation

ERP

Informatica Partners with ServiceMax

To deliver flawless field service, companies often require integration across multiple applications for various work processes.  A good example is automatically ordering and shipping parts through an ERP system to arrive ahead of a timely field service visit.  Informatica has partnered with ServiceMax, the leading field service automation solution, and subsequently joined the new ServiceMax Marketplace to offer customers integration solutions for many ERP and Cloud applications frequently involved in ServiceMax deployments.  Comprised of Cloud Integration Templates built on Informatica Cloud for frequent customer integration “patterns”, these solutions will speed and cost contain the ServiceMax implementation cycle and help customers realize the full potential of their field service initiatives.

Existing members of the ServiceMax Community can see a demo or take advantage of a free 30-day trial that provides full capabilities of Informatica Cloud Integration for ServiceMax with prebuilt connectors to hundreds of 3rd party systems including SAP, Oracle, Salesforce, Netsuite and Workday, powered by the Informatica Vibe virtual data machine for near-universal access to cloud and on-premise data.  The Informatica Cloud Integration for Servicemax solution:

  • Accelerates ERP integration through prebuilt Cloud templates focused on key work processes and the objects on common between systems as much as 85%
  • Synchronizes key master data such as Customer Master, Material Master, Sales Orders, Plant information, Stock history and others
  • Enables simplified implementation and customization through easy to use user interfaces
  • Eliminates the need for IT intervention during configuration and deployment of ServiceMax integrations.

We look forward to working with ServiceMax through the ServiceMax Marketplace to help joint customers deliver Flawless Service!

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Posted in 5 Sales Plays, Business Impact / Benefits, Cloud, Cloud Application Integration, Cloud Data Integration, Cloud Data Management, Data Integration, Data Integration Platform, Data Migration, Data Synchronization, Operational Efficiency, Professional Services, SaaS | Tagged , , , | Leave a comment

A True Love Quiz: Is Your Marketing Data Right For You?

questionnaire and computer mouseValentine’s Day is such a strange holiday.  It always seems to bring up more questions than answers.  And the internet always seems to have a quiz to find out the answer!  There’s the “Does he have a crush on you too – 10 simple ways to find out” quiz.  There’s the “What special gift should I get her this Valentine’s Day?” quiz.  And the ever popular “Why am I still single on Valentine’s Day?” quiz.

Well Marketers, it’s your lucky Valentine’s Day!  We have a quiz for you too!  It’s about your relationship with data.  Where do you stand?  Are you ready to take the next step?


Question 1:  Do you connect – I mean, really connect – with your data?
Connect My Data□ (A) Not really.  We just can’t seem to get it together and really connect.
□ (B) Sometimes.  We connect on some levels, but there are big gaps.
□ (C) Most of the time.  We usually connect, but we miss out on some things.
□ (D) We are a perfect match!  We connect about everything, no matter where, no matter when.

Translation:  Data ready marketers have access to the best possible data, no matter what form it is in, no matter what system it is in.  They are able to make decisions based everything the entire organization “knows” about their customer/partner/product – with a complete 360 degree view. And they are also able to connect to and integrate with data outside the bounds of their organization to achieve the sought-after 720 degree view.  They can integrate and react to social media comments, trends, and feedback – in real time – and to match it with an existing record whenever possible. And they can quickly and easily bring together any third party data sources they may need.


Question 2:  How good looking & clean is you data?
My Data is So Good Looking□ (A) Yikes, not very. But it’s what’s on the inside that counts right?
□ (B) It’s ok.  We’ve both let ourselves go a bit.
□ (C) It’s pretty cute.  Not supermodel hot, but definitely girl or boy next door cute.
□ (D) My data is HOT!  It’s perfect in every way!

Translation: Marketers need data that is reliable and clean. According to a recent Experian study, American companies believe that 25% of their data is inaccurate, the rest of the world isn’t much more confident. 90% of respondents said they suffer from common data errors, and 78% have problems with the quality of the data they gather from disparate channels.  Making marketing decisions based upon data that is inaccurate leads to poor decisions.  And what’s worse, many marketers have no idea how good or bad their data is, so they have no idea what impact it is having on their marketing programs and analysis.  The data ready marketer understands this and has a top tier data quality solution in place to make sure their data is in the best shape possible.


Question 3:  Do you feel safe when you’re with your data?
I Heart Safe Data□ (A) No, my data is pretty scary.  911 is on speed dial.
□ (B) I’m not sure actually. I think so?
□ (C) My date is mostly safe, but it’s got a little “bad boy” or “bad girl” streak.
□ (D) I protect my data, and it protects me back.  We keep each other safe and secure.

Translation: Marketers need to be able to trust the quality of their data, but they also need to trust the security of their data.  Is it protected or is it susceptible to theft and nefarious attacks like the ones that have been all over the news lately?  Nothing keeps a CMO and their PR team up at night like worrying they are going to be the next brand on the cover of a magazine for losing millions of personal customer records. But beyond a high profile data breach, marketers need to be concerned over data privacy.  Are you treating customer data in the way that is expected and demanded?  Are you using protected data in your marketing practices that you really shouldn’t be?  Are you marketing to people on excluded lists


Question 4:  Is your data adventurous and well-traveled, or is it more of a “home-body”?
Home is where my data is□ (A) My data is all over the place and it’s impossible to find.
□ (B) My data is all in one place.  I know we’re missing out on fun and exciting options, but it’s just easier this way.
□ (C) My data is in a few places and I keep fairly good tabs on it. We can find each other when we need to, but it takes some effort.
□ (D) My data is everywhere, but I have complete faith that I can get ahold of any source I might need, when and where I need it.

Translation: Marketing data is everywhere. Your marketing data warehouse, your CRM system, your marketing automation system.  It’s throughout your organization in finance, customer support, and sale systems. It’s in third party systems like social media and data aggregators. That means it’s in the cloud, it’s on premise, and everywhere in between.  Marketers need to be able to get to and integrate data no matter where it “lives”.


Question 5:  Does your data take forever to get ready when it’s time to go do so something together?
My data is ready on time□ (A) It takes forever to prepare my data for each new outing.  It’s definitely not “ready to go”.
□ (B) My data takes it’s time to get ready, but it’s worth the wait… usually!
□ (C) My data is fairly quick to get ready, but it does take a little time and effort.
□ (D) My data is always ready to go, whenever we need to go somewhere or do something.

Translation:  One of the reasons many marketers end up in marketing is because it is fast paced and every day is different. Nothing is the same from day-to-day, so you need to be ready to act at a moment’s notice, and change course on a dime.  Data ready marketers have a foundation of great data that they can point at any given problem, at any given time, without a lot of work to prepare it.  If it is taking you weeks or even days to pull data together to analyze something new or test out a new hunch, it’s too late – your competitors have already done it!


Question 6:  Can you believe the stories your data is telling you?
My data tells the truth□ (A) My data is wrong a lot.  It stretches the truth a lot, and I cannot rely on it.
□ (B) I really don’t know.  I question these stories – dare I say excused – but haven’t been able to prove it one way or the other.
□ (C) I believe what my data says most of the time. It rarely lets me down.
□ (D) My data is very trustworthy.  I believe it implicitly because we’ve earned each other’s trust.

Translation:  If your data is dirty, inaccurate, and/or incomplete, it is essentially “lying” to you. And if you cannot get to all of the data sources you need, your data is telling you “white lies”!  All of the work you’re putting into analysis and optimization is based on questionable data, and is giving you questionable results.  Data ready marketers understand this and ensure their data is clean, safe, and connected at all times.


Question 7:  Does your data help you around the house with your daily chores?
My data helps me out□ (A) My data just sits around on the couch watching TV.
□ (B) When I nag my data will help out occasionally.
□ (C) My data is pretty good about helping out. It doesn’t take imitative, but it helps out whenever I ask.
□ (D) My data is amazing.  It helps out whenever it can, however it can, even without being asked.

Translation:  Your marketing data can do so much. It should enable you be “customer ready” – helping you to understand everything there is to know about your customers so you can design amazing personalized campaigns that speak directly to them.  It should enable you to be “decision ready” – powering your analytics capabilities with great data so you can make great decisions and optimize your processes.  But it should also enable you to be “showcase ready” – giving you the proof points to demonstrate marketing’s actual impact on the bottom line.


Now for the fun part… It’s time to rate your  data relationship status
If you answered mostly (A):  You have a rocky relationship with your data.  You may need some data counseling!

If you answered mostly (B):  It’s time to decide if you want this data relationship to work.  There’s hope, but you’ve got some work to do.

If you answered mostly (C):  You and your data are at the beginning of a beautiful love affair.  Keep working at it because you’re getting close!

If you answered mostly (D): Congratulations, you have a strong data marriage that is based on clean, safe, and connected data.  You are making great business decisions because you are a data ready marketer!


Do You Love Your Data?
Learn to love your dataNo matter what your data relationship status, we’d love to hear from you.  Please take our survey about your use of data and technology.  The results are coming out soon so don’t miss your chance to be a part.  https://www.surveymonkey.com/s/DataMktg

Also, follow me on twitter – The Data Ready Marketer – for some of the latest & greatest news and insights on the world of data ready marketing.  And stay tuned because we have several new Data Ready Marketing pieces coming out soon – InfoGraphics, eBooks, SlideShares, and more!

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Posted in 5 Sales Plays, Business Impact / Benefits, CMO, Customers, Data First, Data Integration, Data masking, Data Privacy, Data Quality, Data Security, Intelligent Data Platform, Master Data Management, Operational Efficiency, Total Customer Relationship | Tagged , , , , , , , , | Leave a comment

Healthcare’s Love Hate Relationship with Data

Healthcare's Love Hate Relationship with Data

Healthcare’s Love Hate Relationship with Data

Healthcare and data have the makings of an epic love affair, but like most relationships, it’s not all roses. Data is playing a powerful role in finding a cure for cancer, informing cost reduction, targeting preventative treatments and engaging healthcare consumers in their own care. The downside? Data is needy. It requires investments in connectedness, cleanliness and safety to maximize its potential.

  • Data is ubiquitous…connect it.

4400 times the amount of information held at the Library of Congress – that’s how much data Kaiser Permanente alone has generated from its electronic medical record. Kaiser successfully makes every piece of information about each patient available to clinicians, including patient health history, diagnosis by other providers, lab results and prescriptions. As a result, Kaiser has seen marked improvements in outcomes: 26% reduction in office visits per member and a 57% reduction in medication errors.

Ongoing value, however, requires continuous investment in data. Investments in data integration and data quality ensure that information from the EMR is integrated with other sources (think claims, social, billing, supply chain) so that clinicians and decision makers have access in the format they need. Without this, self-service intelligence can be inhibited by duplicate data, poor quality data or application silos.

  • Data is popular…ensure it is clean.

Healthcare leaders can finally rely on electronic data to make strategic decisions. A CHRISTUS Health anecdote you might relate to – In a weekly meeting each executive reviews their strategic dashboard; these dashboards drive strategic decision making about CPOE adoption (computerized physician order entry), emergency room wait times and price per procedure. Powered by enterprise information management, these dashboards paint a reliable and consistent view across the system’s 60 hospitals. Previous to the implementation of an enterprise data platform, each executive was reliant on their own set of data.

In the pre-data investment era, seemingly common data elements from different sources did not mean the same thing. For example, “Admit Date” in one report reflected the emergency department admission date whereas “Admit Date” in another report referred to the inpatient admission date.

  •  Sharing data is necessary…make it safe.

To cure cancer, reduce costs and engage patients, care providers need access to data and not just the data they generate; it has to be shared for coordination of care through transitions of care and across settings, i.e. home care, long term care and behavioral health. Fortunately, Consumers and Clinicians agree on this, PWC reports that 56% of consumers and 30% of physicians are comfortable with data sharing for care coordination. Further progress is demonstrated by healthcare organizations willingly adopting cloud based applications –as of 2013, 40% of healthcare organizations were already storing protected health information (PHI) in the cloud.

Increased data access carries risk, leaving health data exposed, however. The threat of data breach or hacking is multiplied by the presence (in many cases necessary) of PHI on employee laptops and the fact that providers are provided increased access to PHI. Ponemon Institute, a security firm estimates that data breaches cost the industry $5.6 billion each year. Investments in data-centric security are necessary to assuage fear, protect personal health data and make secure data sharing a reality.

Early improvements in patient outcomes indicate that the relationship between data and healthcare is a valuable investment. The International Institute of Analytics supports this, reporting that although analytics and data maturity across healthcare lags other industries, the opportunity to positively impact clinical and operational outcomes is significant.

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Posted in Big Data, Data Integration, Data Quality, Healthcare, Master Data Management, Mergers and Acquisitions, Operational Efficiency | Tagged , | Leave a comment

Patient Experience-The Quality of Your Data is Important!

Patient_Experience

Patient Experience-Viable Data is Important!

Patient experience is key to growth and success for all health delivery organizations.  Gartner has stated that the patient experience needs to be one of the highest priorities for organizations. The quality of your data is critical to achieving that goal.  My recent experience with my physician’s office demonstrates how easy it is for the quality of data to influence the patient experience and undermine a patient’s trust in their physician and the organization with which they are interacting.

I have a great relationship with my doctor and have always been impressed by the efficiency of the office.  I never wait beyond my appointment time, the care is excellent and the staff is friendly and professional.  There is an online tool that allows me to see my records, send messages to my doctor, request an appointment and get test results. The organization enjoys the highest reputation for clinical quality.  Pretty much perfect from my perspective – until now.

I needed to change a scheduled appointment due to a business conflict.  Since I expected some negotiation I decided to make the phone call rather than request it on line…there are still transactions for which human to human is optimal!  I had all my information at hand and made the call.  The phone was pleasantly answered and the request given.  The receptionist requested my name and date of birth, but then stated that I did not have a future appointment.  I am looking at the online tool, which clearly states that I am scheduled for February 17 at 8:30 AM.  The pleasant young woman confirms my name, date of birth and address and then tells me that I do not have an appointment scheduled.  I am reasonably savvy about these things and figured out the core problem, which is that my last name is hyphenated.  Armed with that information, my other record is found and a new appointment scheduled. The transaction is completed.

But now I am worried. My name has been like this for many years and none of my other key data has changed.   Are there parts of my clinical history missing in the record that my doctor is using?   Will that have a negative impact on the quality of my care?  If I were to be unable to clearly respond, might that older record be accessed and my current medications and history not be available?  The receptionist did not address the duplicate issue clearly by telling me that she would attend to merging the records, so I have no reason to believe that she will.  My confidence is now shaken and I am less trustful of the system and how well it will serve me going forward.  I have resolved my issue, but not everyone would be able to push back to insure that their records are now accurate.

Many millions of dollars are being spent on electronic health records.  Many more millions are being spent to redesign work flow to accommodate the new EHR’s. Physicians and other clinicians are learning new ways to access data and treat their patients. The foundation for all of this is accurate data.  Nicely displayed but inaccurate data will not result in improved care or enhanced member experience.  As healthcare organizations move forward with the razzle dazzle of new systems they need to remember the basics of good quality data and insure that it is available to these new applications.

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Software Modernization Strategies

Software Modernization

A Level-Up – Software Modernization

Every year, I get a replacement desk calendar to help keep all of our activities straight – and for a family of four, that is no easy task. I start with taking all of the little appointment cards the dentist, orthodontist, pediatrician and GP give to us for appointments that occur beyond the current calendar dates. I transcribe them all. Then I go through last year’s calendar to transfer any information that is relevant to this year’s calendar. And finally, I put the calendar down in the basement next to previous year calendars so I can refer back to them if I need. Last year’s calendar contains a lot of useful information, but no longer has the ability to solve my need to organize schedules for this year.

In a very loose way – this is very similar to application retirement. Many larger health plans have existing systems that were created several years (sometimes even several decades) ago. These legacy systems have been customized to reflect the health plan’s very specific business processes. They may be hosted on costly hardware, developed in antiquated software languages and rely on a few developers that are very close to retirement. The cost of supporting these (most likely) antiquated systems can be diverting valuable dollars away from innovation.

The process that I use to move appointment and contact data from one calendar to the next works for me – but is relatively small in scale. Imagine if I was trying to do this for an entire organization without losing context, detail or accuracy!

There are several methodologies for determining the best strategy for your organization to approach software modernization, including:

  • Architecture Driven Modernization (ADM) is the initiative to standardize views of the existing systems in order to enable common modernization activities like code analysis and comprehension, and software transformation.
  • SABA (Bennett et al., 1999) is a high-level framework for planning the evolution and migration of legacy systems, taking into account both organizational and technical issues.
  • SRRT (Economic Model to Software Rewriting and Replacement Times), Chan et al. (1996), Formal model for determining optimal software rewrite and replacement timings based on versatile metrics data.
  • And if all else fails:  Model Driven Engineering (MDE) is being investigated as an approach for reverse engineering and then forward engineering software code

My calendar migration process evolved over time, your method for software modernization should be well planned prior to the go-live date for the new software system.

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Posted in Application ILM, Application Retirement, Business Impact / Benefits, Data Archiving, Data Migration, data replication, Database Archiving, Healthcare, Operational Efficiency | Tagged , , | Leave a comment

Does Your Sales Team Have What They Need to Succeed in 2015?

Like me, you probably just returned from an inspiring Sales Kick Off 2015 event. You’ve invested in talented people. You’ve trained them with the skills and knowledge they need to identify, qualify, validate, negotiate and close deals. You’ve invested in world-class applications, like Salesforce Sales Cloud, to empower your sales team to sell more effectively. But does your sales team have what they need to succeed in 2015?

Gartner predicts that as early as next year, companies will compete primarily on the customer experiences they deliver. So, every customer interaction counts. Knowing your customers is key to delivering great sales experiences.

If you’re not fueling Salesforce Sales Cloud with clean, consistent and connected customer information, your sales team may be at a disadvantage against the competition.
If you’re not fueling Salesforce Sales Cloud with clean, consistent and connected customer information, your sales team may be at a disadvantage against the competition.

But, inaccurate, inconsistent and disconnected customer information may be holding your sales team back from delivering great sales experiences. If you’re not fueling Salesforce Sales Cloud (or another Sales Force Automation (SFA) application) with clean, consistent and connected customer information, your sales team may be at a disadvantage against the competition.

To successfully compete and deliver great sales experiences more efficiently, your sales team needs a complete picture of their customers. They don’t want to pull information from multiple applications and then reconcile it in spreadsheets. They want direct access to the Total Customer Relationship across channels, touch points and products within their Salesforce Sales Cloud.

Watch this short video comparing a day-in-the-life of two sales reps competing for the same business. One has access to the Total Customer Relationship in Salesforce Sales Cloud, the other does not. Watch now: Salesforce.com with Clean, Consistent and Connected Customer Information.

Salesforce and Informatica Video

Is your sales team spending time creating spreadsheets by pulling together customer information from multiple applications and then reconciling it to understand the Total Customer Relationship across channels, touch points and products? If so, how much is it costing your business? Or is your sales team engaging with customers without understanding the Total Customer Relationship? How much is that costing your business?

Many innovative sales leaders are gaining a competitive edge by better leveraging their customer data to empower their sales teams to deliver great sales experiences. They are fueling business and analytical applications, like Salesforce Sales Cloud, with clean, consistent and connected customer information.  They are arming their sales teams with direct access to richer customer profiles, which includes the Total Customer Relationship across channels, touch points and products.

What measurable results have these sales leaders acheived? Merrill Lynch boosted sales productivity by 15%, resulting in $50M in annual impact. A $60B manufacturing company improved cross-sell and up-sell success by 5%. Logitech increased across channels: online, in their retail partner’s stores and through distribution partners.

This year, I believe more sales leaders will focus on leveraging their customer information for competitive advantage. This will help them shift from sales automation to sales optimization. What do you think?

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Posted in 5 Sales Plays, Business Impact / Benefits, Business/IT Collaboration, CIO, Cloud, Cloud Computing, Cloud Data Integration, Cloud Data Management, Customer Acquisition & Retention, Data Integration, Data Quality, Enterprise Data Management, Intelligent Data Platform, Master Data Management, Operational Efficiency, SaaS, Total Customer Relationship | Tagged , , , , , , , , , , , , , , , | 1 Comment

Imagine A New Sheriff In Town

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.

management

Is your new management posse driving change?

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.

Busting into the cafeteria with new ideas & looking good while doing it?

Busting into the cafeteria with new ideas & looking good while doing it?

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?

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Posted in Big Data, Business Impact / Benefits, CIO, CMO, Customer Acquisition & Retention, Customer Services, Customers, Data Governance, Data Integration, Data Quality, Enterprise Data Management, Governance, Risk and Compliance, Master Data Management, Operational Efficiency, Product Information Management, Telecommunications, Vertical | Tagged , , , , , , , , , | Leave a comment

Is it Enterprise Architecture or Wall Art?

Enterprise ArchitectureJust last week, I visited a client for whom I had been consulting on-and-off for several years. On the meeting room wall, I saw their Enterprise Architecture portfolio, beautiful graphically designed and printed on a giant sheet of paper. My host proudly informed me how much she enjoyed putting that diagram together in 2009.

I jokingly reminded her of the famous notion of “art for art’s sake”; which is an appropriate phrase to describe what many architects are doing when populating frameworks. Indeed, when we refer to Enterprise Architecture, we must remember that the term ‘architecture’ is, itself, a metaphor.

In a tough economy, when competition is increasingly global and marketplaces are shifting, this ability to make tough decisions is going to be essential. Opportunities to save costs are going to be really valued, and architecture invariably helps companies save money. The ability to reuse, and thus rapidly seize the next related business opportunity, is also going to be highly valued.

The thing you have to be careful of is that if you see your markets disappearing, if your product is outdated, or your whole industry is redefining itself, as we have seen in things like media, you have to be ready to innovate. Architecture can restrict your innovative gene, by saying, “Wait, wait, wait. We want to slow down. We want to do things on our platform.” That can be very dangerous, if you are really facing disruptive technology or market changes.

Albert Camus wrote a famous essay exploring the Sisyphus myth called “The Myth of Sisyphus,” where he reinterpreted the central theme of the myth. Similarly, we need to challenge the myths of Enterprise Architecture and enterprise system/solution architecture in general – not meekly accept them.

IEEE says, “A key premise of this metaphor is that important decisions may be made early in system development in a manner similar to the early decision-making found in the development of civil architecture projects.”

Keep asking yourself, “When is what we built that’s stable actually constraining us too much? When is it preventing important innovation?” For many architects, that’s going to be tough, because you start to love the architecture, the standards, and the discipline. You love what you’ve created, but if it isn’t right for the market you’re facing, you have to be ready to let it go and go seize the next opportunity.

The central message is as follows: ‘documenting’ architecture in various layers of abstraction for the purposes of ‘completeness’ is plainly ridiculous. This is especially true when the effort to produce the artifacts takes such an amount of time as to make the whole collection obsolete on completion.

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Posted in Architects, Business Impact / Benefits, CIO, Operational Efficiency | Tagged , , , , , | 2 Comments