Seven building blocks for MDM

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Seven Building Blocks for a Successful MDM Plan

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John Radcliffe, Research Vice President

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Welcome!Thank you for joining us on today’s Gartner webinar.

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

John Radcliffe

6th April 2011

Seven Building Blocks for a Successful MDM Plan

Your MDM Program: Without a Good Plan, You Will Probably Fail. What Do You Need to Do?

Questions You Need to Answerin the First 100 Days

STOP STOP

Is there a clear vision?

What does the journey look like?

Does the business see the value?

Can you measure success?

What are the roles and responsibilities?

Has governance been addressed?

Do we really want to create a new silo?

Is it really just a technology project?

Key Issues

1. How will organizations create an MDM vision

and strategy that enables the business vision

and strategy?

2. How will organizations address the governance,

organizational and process challenges that are

barriers to MDM success?

3. How will organizations create the technology

infrastructure necessary for MDM success?

The Seven Building Blocks of MDM: A Framework for Success

A Business-Driven, Holistic Approach to MDM

Enabling Infrastructure

Information Life Cycle

Information Governance

Organization & Roles

Metrics

Strategy

Vision

Create an MDM Vision That Enables Your Organization's Business Vision

From "The Discipline of Market Leaders" by Treacy and Wiersema

Product Leadership

Operational Excellence

Customer Intimacy

"Best Product"

"Best Total Cost" "Best Total Solution"

ProductDifferentiation

CustomerResponsive

Operational Competence

Value Discipline Framework

The vision is the "what" and the "why."The strategy is the "how."

Questions to Answer:

1. What is the business vision of the organization?

2. Who owns that business vision?

3. How would a focus on MDM enable the business vision?

4. Who will provide executive-level sponsorship?

MDM Needs to Be Seen as Part of Enterprise Information Management (EIM)

…?Content

Master

Data

Analytic

Data

Other

Data

Social

Data

Enabling Infrastructure

Information Life Cycle

Information Governance

Organization & Roles

Metrics

Strategy

Vision

Master Data Management

What Will Shape Your MDM Strategy?

Vectors of MDM

Complexity

Industry

Data Domain

Use Case

Organization

Implementation Styles

MDM Maturity Model: Helps You Determine Your Current and "To Be" States

Increasing

Maturity of

MDM

Level of MDM Maturity2 3 4 5

Non-

existent

Problem?

What

problem?

Initial

No vision,

but, yes, we

do have a

problem.

Developing

No vision.

Firefighting is

the answer.

Isolated,

bottom-up

initiatives.

Defined

OK, let's do

something (at

the silo level).

Silo-oriented

solutions.

Managed

A unifying

vision

emerges (with

high-level

sponsorship).

Enterprise-

wide MDM

program.

Optimizing

MDM is the

way we do

things around

here.

Managing

master data

as an asset.

Continuing to

learn and

improve.

Note: MDM must be deep, as well as broad, to be mature.

0 1

What Is the "Current State" of Your MDM Maturity? What Is the "To Be" State?

Level 1 Initial

Level 2 Developing

Level 3 Defined

Level 4 Managed

Level 5 Optimizing

Vision None Bottom-up initiatives only

Top down, but limited in vision

Unifying vision for cross-enterprise

MDM

Key enabler of business success

Strategy None Reactive focus on firefighting

initiatives

Proactive focus on individual

domains

Consistent and integrated approach

Ongoing investment and improvement

Metrics No metrics scheme for master data

Starting to develop DQ

metrics

Successful use of metrics at the domain level

Using metrics to measure success

cross-domain

Basis of management

and investment

Governance No one has responsibility

IT-led; lacking business

involvement

Domain-level governance

Cross-enterprise multidomain governance

Well-established cross-enterprise

governance

Organization No data stewards

Developing the culture of data stewardship

Potentially strong team, but limited

in scope

Centralization or federation of data steward groups

Well-established cross-enterprise

stewardship

Processes Silo based —applications or

functions

Starting to think in terms of the data life cycle

Focus on data life cycle at domain

level

Best practice shared across the enterprise

Continue to optimize the life

cycle

Technology Few or no data quality tools

Data quality tools, but no

MDM solutions

MDM solution covering only one

domain

Multidomain, but not integrated or

consistent

Integrated and consistent set of

capabilities

Most Organizations Today

Creating the MDM Business Case: The Basis of Achieving Buy-In and Creating the Metrics

Questions to Answer: Use Business Process Metrics to "Connect to the Business"

Master Data QualityMetrics

Business ProcessMetrics

PerformanceMetrics

FinancialMetrics

Stakeholder Focus

Accuracy,Timeliness

Process Owners

Efficiency andEffectiveness

ExecutivesFeedback

on Strategy

Shareholders Bottom-Line Results

Level

Data Stewards

1. Do you have the business on board? Does it see value in the MDM program?

2. How will MDM improve business processes and decision making?

3. What business metrics are you linking the MDM program to?

4. What is the current level of those metrics, and what does success look like?

Understanding the MDM Process Life Cycle Is Key to Governance and Organization

Questions to Answer:

Marketing

EnrichCollaborate

Procurement

Enrich

Operations

Enrich

Logistics

Enrich

Sales

Enrich

Service

Author Store Pub/Sync Enrich Consume Archive

B2B

Product Development

Sample Life Cycle for Product Master Data

1. What processes will you need to ensure the creation, management, publishing and leveraging of high-quality master data across your organization?

2. What business processes will the master data life cycle processes support?

MDM Governance — Who Is Responsible, Accountable, Consulted and Informed?

R = Responsible, A = Accountable, C = Consulted, I = Informed

R&D CRM ERP and SCM Shared Services

Customer

Pro

du

ct L

ife

Cyc

le

Ma

nag

em

en

t

Ma

rke

ting

Sa

les

Co

ntra

ctin

g &

P

ricin

g

Cu

sto

me

r S

erv

ice

So

urc

ing

Pro

cu

rem

en

t

Ma

nu

fac

turin

g

Wa

reh

ou

sin

g

Ord

er F

ulfillm

en

t

Tra

nsp

orta

tion

Fin

an

ce

HR IT

Co

rpo

rate

F

un

ctio

ns

Common View

I R/A I C C I C C

Finance View

C I I I R/A C

Sales View C R/A I I I I C

Fulfillment View

C I C I R/A I C

1. How will you create and maintain an MDM governance organization that includes executive sponsorship, policymaking, decision arbitration and daily operational administration?

2. How will the governance structure enforce its will?

Questions to Answer:

MDM Organization: Organizational Structures, Roles and Responsibilities

Questions to Answer:

1. Who creates and consumes master data? What are their roles?

2. Do you have data stewardship roles, and arethey seen as a business responsibility?

3. What organizational structure do you need to manage master data?

4. How will you manage the change that comes with new ways of working?

Executive-Level Sponsor

Information Governance Board

Data Steward

MDM Team(Centralized or Distributed)

Data StewardData

StewardData Steward

Business

IT

Modeling/Metadata

System Mgmt.

Data Quality

Monitoring Reporting

Security Privacy

Info. Architect

App. Dev./Integ.

MDM Infrastructure Team(Virtual)

Organizational Structures, Roles and Responsibilities

MDM Infrastructure: What Technology Infrastructure Do You Need?

Questions to Answer:

1. What technology infrastructure do you need to achieve your MDM goals?

2. How do you source this? How does this fit into the organization's overall enterprise information architecture?

3. What architectural and implementation styles are appropriate for MDM?

Business Servicesand Workflow

Integration and Synchronization

MDM

Data Model

Information Quality

Performance, Scalability

and Availability

Manageability and Security

Technology and

Architecture

A Tightly Integrated Set of Functional Capabilities

Gartner MDM Excellence Award Winner: Johnson & Johnson HCS

More Better Faster EfficientAccuratetransaction processing:

• Payments

• Rebates

• Disputes

• Rosters Mgmt.

• Customer Creation

Reliable reports and performance metrics

Preventive data management:

• Proactive Problem Solving

• Consistent Sourcing

Compliance with regulations requiring controls over data:

• SOX

• GxP Validated

Customer Service levels:

• Error Prevention

• Perfect Orders

• Timely Payments

• End-to-End Experience

Adaptation tomarket and OpCo changing requirements:

• New OpCos & Companies

• New Products

• New Customers

• New Contracts

• New Systems

Identification and resolution of potential problems

Expected Fewer Resources required to manage data and fix errors:

• Contracting

• Finance

• Supply Chain

• IM

Fewer Write-Offs of unresolved disputes and deductions

Source: Johnson & Johnson Health Care Systems OpCo = operating company

Recommendations

Vision: Create an MDM vision that enables the business vision.

Strategy: Define the scope, perform a maturity assessment and prioritize initiatives to create a road map.

Metrics*: Create an MDM metrics hierarchy during the business case development process.

Governance*: Create a business-led governance structure with agreed roles, responsibilities and decision rights.

Organization: Appoint data stewards for master data, build a multidisciplinary team and address change management issues.

Processes: Think in terms of the master data life cycle.

Technology Infrastructure: Buy or build the necessary capabilities. Choose the right implementation styles.

* The most difficult

Related Gartner Research

"The Seven Building Blocks of MDM: A Framework for Success"(G00168103)

"Use the Gartner MDM Maturity Model to Create Your MDM Road Map"(G00169865)

"Creating an MDM Vision, Strategy and Road Map"(G00165636)

"Creating a Business Case for Master Data Management"(G00160270)

"Governance of Master Data Starts With the Master Data Life Cycle"(G00160018)

For more information, stop by Gartner Solution Central or e-mail us at [email protected].

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