Tag Archives: informatica MDM
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.
“Raw materials costs are the company’s single largest expense category,” said Steve Jenkins, Global IT Director at Valspar, at MDM Day in London. “Data management technology can help us improve business process efficiency, manage sourcing risk and reduce RFQ cycle times.”
Valspar is a $4 billion global manufacturing company, which produces a portfolio of leading paint and coating brands. At the end of 2013, the 200 year old company celebrated record sales and earnings. They also completed two acquisitions. Valspar now has 10,000 employees operating in 25 countries.
As is the case for many global companies, growth creates complexity. “Valspar has multiple business units with varying purchasing practices. We source raw materials from 1,000s of vendors around the globe,” shared Steve.
“We want to achieve economies of scale in purchasing to control spending,” Steve said as he shared Valspar’s improvement objectives. “We want to build stronger relationships with our preferred vendors. Also, we want to develop internal process efficiencies to realize additional savings.”
Poorly managed vendor and raw materials data was impacting Valspar’s buying power
The Valspar team, who sharply focuses on productivity, had an “Aha” moment. “We realized our buying power was limited by the age and quality of available vendor data and raw materials data,” revealed Steve.
The core vendor data and raw materials data that should have been the same across multiple systems wasn’t. Data was often missing or wrong. This made it difficult to calculate the total spend on raw materials. It was also hard to calculate the total cost of expedited freight of raw materials. So, employees used a manual, time-consuming and error-prone process to consolidate vendor data and raw materials data for reporting.
These data issues were getting in the way of achieving their improvement objectives. Valspar needed a data management solution.
Valspar needed a single trusted source of vendor and raw materials data
The team chose Informatica MDM, master data management (MDM) technology. It will be their enterprise hub for vendors and raw materials. It will manage this data centrally on an ongoing basis. With Informatica MDM, Valspar will have a single trusted source of vendor and raw materials data.
Informatica PowerCenter will access data from multiple source systems. Informatica Data Quality will profile the data before it goes into the hub. Then, after Informatica MDM does it’s magic, PowerCenter will deliver clean, consistent, connected and enriched data to target systems.
Better vendor and raw materials data management results in cost savings
Valspar expects to gain the following business benefits:
- Streamline the RFQ process to accelerate raw materials cost savings
- Reduce the total number of raw materials SKUs and vendors
- Increase productivity of staff focused on pulling and maintaining data
- Leverage consistent global data visibly to:
- increase leverage during contract negotiations
- improve acquisition due diligence reviews
- facilitate process standardization and reporting
Valspar’s vision is to tranform data and information into a trusted organizational assets
“Mastering vendor and raw materials data is Phase 1 of our vision to transform data and information into trusted organizational assets,” shared Steve. In Phase 2 the Valspar team will master customer data so they have immediate access to the total purchases of key global customers. In Phase 3, Valspar’s team will turn their attention to product or finished goods data.
Steve ended his presentation with some advice. “First, include your business counterparts in the process as early as possible. They need to own and drive the business case as well as the approval process. Also, master only the vendor and raw materials attributes required to realize the business benefit.”
Want more? Download the Total Supplier Information Management eBook. It covers:
- Why your fragmented supplier data is holding you back
- The cost of supplier data chaos
- The warning signs you need to be looking for
- How you can achieve Total Supplier Information Management
Beyond our wildest expectations—not to mention our original room reservations—the Third MDM Day event on February 19th was a tremendous success, a “three-peat” if you will. Expecting 100 attendees, we had nearly 500 registrations and a crowd of 350 who braved the weather, including a quarter of whom traveled from outside the tri-state area, to join us in New York City for a wall-to-wall day of MDM discussion and presentations.
Gartner Estimates Growth for MDM Market and Positions Informatica as a Leader in The Magic Quadrant for Customer Data Solutions
Over the last few weeks I’ve been saying that the incredible popularity of our MDM-related events is a sign that MDM is a vital and growing market. Now I consider it reassuring that analysts agree. It’s also reassuring to see Informatica positioned as a Leader in the Magic Quadrant for Master Data Management of Customer Data Solutions, a position that Informatica has held for four years in a row.
In Gartner’s October 2013 Magic Quadrant for Master Data Management of Customer Data Solutions, analysts Bill O’Kane and Saul Judah estimates that the total software revenue for packaged MDM solutions was $1.6B in 2012, an increase of 7.8% from 2011, as compared with a 4.7% rise for the overall enterprise software market. Further, O’Kane and Judah estimate that the MDM of customer data solutions market segment was worth $527M in 2012, an increase of 5.4% from 2011. The analysts go on to say that the customer MDM market is far from mature, and that just 40% of the organizations surveyed by Gartner were beginning MDM initiatives.
One of MDM’s most important benefits is a single view of the customer across company departments and siloed systems. In this Magic Quadrant report, the analysts describe some of the business drivers for obtaining this view. For the banking and life sciences sectors, the analysts include “Compliance and risk management drivers, such as ‘know your customer,’ anti-money laundering and counterparty risk management in the banking sector, and Sunshine Act compliance in the life sciences sector.” I believe that many other industries could similarly benefit from trusted customer interactions. Another set of drivers they list are “cost optimization and efficiency drivers,” and finally, “revenue and profitability growth drivers,” explaining that examples of such drivers include “initiatives to improve cross-selling, upselling, and retention.”
Finally, the analysts observed a trend which we believe supports Informatica’s view of the importance of all-encompassing MDM solutions that can manage master data across enterprise. As noted in the report, “Many organizations have now invested in creating a new central system to master their customer data, with the majority (an estimated 80%) of organizations buying packaged MDM of customer data solutions, as opposed to building the capability themselves.”
To learn more about Gartner’s October 2013 Magic Quadrant for Master Data Management of Customer Data Solutions, see our press release or download the full report. After reading the report, please share your thoughts below.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
If the recent MDM and Data Governance Summit was any indication, Master Data Management is an extremely hot topic these days. The summit was highly successful, drawing over 400 attendees comprised of business users and architects of every stripe.
I want to highlight one presentation that spoke to me directly. Quintiles is a company you may remember if you went to Informatica World 2013. Quintiles provides biopharmaceutical development and commercial outsourcing services via a vast network of over 27,000 employees across the globe. At the summit, John Poonnen, Quintiles’ director of product engineering, told of the company’s journey to multidomain MDM, which was key to enabling a web-based platform for delivering real-time insights into patient, study, site, and program activities. Poonnen presented to an audience of over a hundred technology and business professionals. (more…)
The MDM space is filled by a number of well-known players. In addition to Informatica, you’ll also find IBM, Oracle, SAP, and a host of other vendors. But who’s the leader of this space?
The Information Difference is an analyst firm that specializes in MDM, and this firm has been watching the MDM space for years. Recently, The Information Difference compared 12 different MDM vendors, ranked them using 200 criteria, and published their findings in a report of the MDM landscape for Q2, 2013. The firm compared the vendors’ MDM offerings across 6 categories: data governance, business rules, data quality, data storage, data provision, and data movement.
I’m astounded by the incredible turnout and response to MDM Day and other MDM-related events at Informatica World, and again, I see this as a sign of MDM’s importance in the business world. Attendees told their stories, swapped best-practices, and shared their visions of using MDM to improve up-sell, cross-sell, and other important business metrics. But now let’s keep the momentum going. Here I want to tell you about three free webinars that will help you to dive more deeply into MDM, and take your initiatives to the next level. The first is for any large organization, and the other two are for pharmaceutical companies. (more…)
Informatica World 2013 is right around the corner, and I’m eager to tell you about all we have planned. This year, MDM will play a prominent role, as you can see by the sheer number of MDM-related sessions presented by Informatica customers, partners, and employees.
Here are just a few highlights:
The general feeling, at the recent Gartner Master Data Management Summit, was one of excitement. It wasn’t just that this was the largest MDM Summit to date with 600+ registrants; it was also the buzz in and around the convention center. The conversation wasn’t about promises and “what ifs,” it was about tactics, and 2nd or even 3rd generation MDM initiatives. This growth is a sign that MDM has matured past the initial phase of high expectations, in Gartner’s hype cycle. To put it in Geoffrey Moore’s terms, I think it’s a sign that MDM has crossed the chasm from early adoption to more widespread, pragmatic adoption.