CDI-MDM Summit New York – Fall 2007Agenda • Tips and re-usable approaches culled from a major business transformation. • Some technical references but most appropriate to individuals

CDI-MDM SummitNew York – Fall 2007

A Proven Multi-Track Approach to Cross-Business MDM Justification

John Butler, Sr Director

Agenda

• Tips and re-usable approaches culled from a major business transformation.

• Some technical references but most appropriate to individuals where a component of their job is aligning silos, winning buy-in or driving change.

• Reed Elsevier’s B2B information businesses face major challenges and change asin the move from print publishing to one of the largest digital media companies.

• Change on this scale requires action on multiple fronts. We’ll discuss proven techniques used by Reed and by best practice companies from various sectors.

• We’ll use a case study to bring to life the various approaches that work to reinforce each other including

• Rolling up requirements and building the ROI business case across departments or operating units using existing models

• The analytics dashboard vs mining transactional data• Benchmarking the business to acquire capabilities where critical gaps are found• Data auditing to validate assumptions before investing and measure impact • A way to keep executives connected to their market which in turn moves MDM up the

strategic priority list and sustains focus over the long-term on continuous improvement

Reed Elsevier

Reed Elsevier (pre-Harcourt sale)

• FTSE 100 company with 2006 revenues at £5.4 billion and 36,000 employees in more than 200 countries.

• Leading B2B digital media business that includes global market leaders: LexisNexis, Elsevier and Reed Business.

• Professional users in the legal, science, medical, business professional and education markets.

• More than 15,000 different magazines, books, CDs and online information solutions –40% online and accelerating.

From the 2006 Annual Report . . .

Transformational Challenges

• Product Innovation

• Customer workflows

• From print to online

• From information to solutions

• From local to global

Strategic Priorities

• Delivering authoritative content through leading brands

• Driving online solutions

• Improving cost efficiency

• Selective portfolio development

Change – how and how fast

Business process focusedProject / internally focusedProcess

Customer-centricProductCulture

Balanced measuresFinancialMeasures

Analytical (Summary)Transactional / OperationalInformation

FewerManyOrganization

Strategic MarketingSales-focusedCapabilities

Integrated / AnalyticsFragmented / missingInformation

Fix process & dataTechnologyInvestment

HorizontalCross-functional

VerticalCross-business

Change management

OpportunityWorks well where existentCommunications

CEOs & Customer ChampionsSalesLeadership

2007+2006200520042003

2003 to 2007 laying the groundwork

Customer focus in a product culture

• Benchmarking & assessments – by the numbers

• Customer First program – customer champions

• Showcase best practice – workshops/intranet

• Customer Information Leadership Forum

• CEO briefings – Customer measure (NPS)

• Horizontal & vertical – Cross-bsns AND cross-function

• Leadership in LOB programs – an example

Illustrative benchmark results

Return

Improving our capabilities

2003Today

Source: Stone and Starkey

80% ofthe payoff

1. Optimise customer journey2. Understand what drives

customer value3. Tackle major customer

issues

Typical current state

Investment in managing customers

Value of customers

Where many firms are now

Key accounts

Source: Paul Weston, QCi, WPP

“Vanilla” proposition

Target state – value-driven priorities

Retain &Develop

Investment in managing customers

Value of customers

Where many firms are now

Best-in-classCustomer Mgt

Revenue/profitOpportunitiesReduces costs

Efficiencies & cost reduction:

High cost-to-serve customers: drive online or send to competition, to drive up their costs.

Revenue/profit Opportunity:

Improve penetration, higher share of wallet

Key accounts

Rethink

Source: Adapted from Paul Weston

Customer model

Subscribers

Advertisers

Intermediaries

Organizations

Individuals

C. Circ

Exhibitors

Buyers

Influencers

Users

Source: QCi CMAT

Best Practice Center of Excellence

• Common language for sharing

• Framework for execution

• External best practice

• Assessments to inspire stretch, accelerate learning

• Action guide for making improvements

• Community of practice, eg info forum

• Contact list of expertise

• Exchange learnings & case studies

• Tackle common challenges

• Identify opportunities

• Standards & common definitions

• Networking via telemeetings & workshops

Learning from the Information Masters

CompetenciesPeopleProcessOrganizationalCulturalLeadershipInformationTechnology

Typical Spend ($)2%2%2%1%1%10%82%

Optimum Spend ($)20%15%10%20%10%15%10%

Small, short term gains Short and long term gains

Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years

Case Study – Analytics Program

Approach

1. Requirements against best practice checklist

2. Quantifiable cost/benefits using ROI model

3. Customer Information Plan – what’s needed

4. Organizational capability assessment

Outcome

• Execution plan for Customer Insight program

Analytics Requirements

Data Audit – De-risking assumptions

Linking up the multi-track findings

Customer Information Action Plan

Info from across the customer journey

• Staple yourself to an order

• What we put our customers through

• Easier to do business with

• Challenge is to collect cross-dept info

• Best practices

• Customer journey mapping vs internal focus

• Cross-dept information forum

Key Measures – the CEO dashboard

Analytics — the major dials

• Retention

• Acquisition

• Retention & Development

• Sales & Marketing Effectiveness

• Operational Efficiency

ROI model includes interdependencies

Example inputs . . .

• No. of customers

• Retention rate

• Acquisition rate

• Marketing & Sales spend

• Operational costs

• Assumptions

• Project Costs

Source: Iain Henderson, Information Answers

Key learnings . . .

• Content, quality and usage of data

• Analytic summary info vs transactional data

• ‘Pray & spray’ vs surgical strategic marketing

. . . so what do we do now?

Virtuous cycle of customer data

Customer identifiersTransactionsProductMarketing activityInteractionsetc

ExistenceCompletenessAccuracyUser confidenceRecencyComplianceetc

2. Content

3. Quality1. Usage

Building knowledgeand understandingBusiness andmarket planningOrganizing forcustomer contactDriving efficientand effectivecustomer contactactivity

Source: Murray & Henderson, Information Answers

Key learnings . . .





Analytic info vs transactional data

Years of History

Number of data fields

Number ofOperational Systems

OPERATIONAL

EDWEDW

SYSTEMS0

1

2

3

4

5

Source: Murray & Henderson, Information Answers

Key learnings . . .



• ‘Sray & pray’ vs surgical strategic marketing


Targeting broadly vs surgically . . .

Company Competition

Customer Base Customer BaseTop 10% Top 10%

Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years

Key learnings . . .





. . . Keep going!

• Continue data quality improvements

• Deploy NPS as catalyst for change

• Identify opportunities for leverage and develop more rigorous governance framework

• Real-time analytics for a digital media business

• and much more!

Net Promoter (NPS) as Lead Indicator

Q1: How likely to recommend?

Q2: What is the single most important reason for saying that?

• Actual score less important than the trend

• Net Promoter trend is predictive of future business performance*

ILLUSTRATIVE ONLYILLUSTRATIVE ONLY

*Source: Mulberry House Consulting, Bain

Enterprise Opportunities for Leverage

Customer-Product•Tasks•Leads•Opportunities•Products

Executives: ‘Do’ view• Transparent view – no chasing• Speed – real time & triggers• Directional – nimble

Drill down on•Retention rates•New customers•Penetration/SOW•Sales effectiveness

Sales: More effective faster• Clear priorities – no hiding• Useful tool – gets used• Customer-product views

Vision to RealityILLUSTRATIVE ONLY

ILLUSTRATIVE ONLY

Q&A

Contact: [email protected]

CDI-MDM Summit New York – Fall 2007Agenda • Tips and re-usable approaches culled from a major business transformation. • Some technical references but most appropriate to individuals

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