Avoiding the MDM & Data Governance Consultancy Money Pit

BEST PRACTISES: Avoiding the MDM, RDM & MDG

Consultancy Money Pit

10th Annual MDM & Data Governance Summit Europe London

May 18-21, 2015

Aaron Zornes

Chief Research Officer

The MDM Institute

[email protected]

www.linkedin.com/in/aaronzornes

http://twitter.com/azornes

mailto:[email protected]

http://www.linkedin.com/in/aaronzornes


How Many Analysts Does It Take To Change a Light Bulb?

Gartner analyst

“We feel that a new bulb is necessary & that the bulb will be replaced (0.99 probability) — we have a new service that addresses that issue”

Forrester analyst

“In 5 years, the new illumination technologies will replace what you currently have ... Wait”

Ovum/Aberdeen analyst

“We’ll write about the old bulb for €25,000”

IDC analyst

“There are 1,230,245 burnt-out bulbs in the world — for €2,500, we will tell you where they are ...”

Big Three consultant

“It’s time to re-engineer the sun ...”

© 2015 The MDM Institute www.The-MDM-Institute.com

Managing the SI Relationship

Determining the evaluation criteria for selecting SI partners for MDM projects

Identifying which SIs are market leaders in your industry & your chosen software technologies

Managing the SI relationship – esp. avoiding “brain drain” & inflationary “blended rates”

Preparing for talent shortages now is the savvy way to avoid the MDM "money pit" later


Why Focus on “SI” Cost Component?

MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub

MDM Institute research finds G5000 enterprise spends average of €1.2 million for MDM software solutions -with addt’l investment of 3X-4X in SI services

MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs)

Recent buzz around MDM is rivaled only by intensity with which systems integrators have "found MDM religion"

Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to

contain costs, but also to insure success of this vital infrastructure investment


MDM Phases

Phase 0 Scoping of Phase 1 Limited proof-of-

concept (POC) Requirements capture ROI projection Vendor & product

evaluation

Phase 1 Limited deployment

within single business division or department for single entity, e.g. customer or product

Phase 2 Going enterprise-wide

with single master entity, e.g. customer, product, supplier, etc.

Phase 2+ Going enterprise-wide

with more than one master entity, e.g. customer, product, &/or supplier, etc.

Phase 3 Extending master data

extra-enterprise-wide with more than one master entity, e.g. customer, product, &/or business partners, e.g. strategic sourcing supply chain, outsourced call centers, etc.


Other Post "Phase Zero" Tasks

Perform gap analysis to determine which software must be developed internally & which can be purchased

Identify a systems integrator (SI) consultancy partner

Plan for IT organizational change management

Work with the business leadership to design & refine "future state" business processes associated with new MDM commitments

After determining/aligning business strategy …


Areas Where SIs May Provide Value

Identify & prioritize business functional requirements

Recommend build vs. buy

Provide a solution selection methodology that balances business & technical requirements

Develop detailed request for proposal (RFP)

Evaluate & select the right MDM software solution vendor(s)


Areas Where SI Provides Implementation Value

Pilot the MDM solution & application integration

Develop IT & business user communications in addition to training materials

Define & establish user job roles – e.g., MDM project leads, corporate/LOB data stewards

Define metrics for ROI or other measurements

Structure change management & system tuning strategies


“Top 5” Technical Evaluation Criteria for MDM Systems Integrators

#1 – Data governance methodology & accelerators

#2 – Industry-specific data model experience & ETL mappings

#3 – MDM product experience

#4 – MDM project experience (industry, geo, ego)

#5 – Next-generation MDM readiness architecture & design (big data, social MDM, mobile MDM, real-time info)

Partner's capabilities include their depth & available expertise


Understanding Your SI’s Business Model

Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche MDM software vendors with which to align

Each MDM vendor has

Vertical industry – e.g., banking or pharmaceutical

Corporate horizontal functional specialization – e.g., B2B hierarchy rationalization)

Mind share & brand recognition by virtue of early successes

Typical SI Team Drawn From Various Other Practice Teams

• Enterprise architecture

planning, esp. SOA experts

• Enterprise data modeling

• Legacy app reengineering

• Data conversion & application

migration

• Data quality

• EAI middleware & BPM

experts.

• Analytics & ETL experts

• Testing & QA

• Systems infrastructure mgmt

• Performance engineering

• ROI & cost-model generation

(business value articulation)


Data Governance Will Become Major Investment

Defining master data governance IT processes

Establishing & training the data stewardship function

Designing future state business processes tied to newly founded MDM commitments regarding customer data


How to Keep Staff from Being Shanghai’ed

Financial handcuffs

Personal/corporate recognition

Career tracks

Contractual non-compete/”hands-off my people”


MDM & DG SI Round-Up

1. ABeam Consulting2. Accenture3. Adastra4. Affecto5. AN Info Systems 6. Arhis7. Attevo8. Atos9. BackOffice Associates10. Broad Street Data11. BT12. Business & Decisions

(incl Inforte)13. Capgemini/iGATE Patni 14. CGI-American Mgmt Sys15. CODIFYD (formerly

Bytemanagers)16. Cognizant 17. CSC (Computer Sciences Corp.)

18. Deloitte Consulting19. Detica20. Datpro21. Datum22. eCentra23. Edifixio

23. Elevondata24. EMC Consulting25. Entity Group26. eVerge Group27. First San Francisco

Partners28. Fujitsu (formerly DMR)29. Global Soft30. HCL Technologies31. HighPoint Solutions32. Hitachi/Sierra Atlantic33. HP Information Svcs34. IBM GBS/BAO & Lab

Services35. IMT36. Infogain 37. Infosys38. InfoTrellis39. ITC InfoTech40. Jibes41. Keane42. L&T InfoTech43. Logica44. LumenData45. Mahindra Satyam


45. MDMHubs46. Micropole47. Myers-Holum48. Northgate Info Svcs49. Perficient50. Platon (Deloitte DK)51. Proj Performance Corp52. PwC53. SapientNitro54. Serene55. SITA56. SoftPath57. Sopra58. Steria59. Stream Integration60. Synergic Partners61. TaskData62. Tata Consultancy

Services63. TEKsystems64. Unisys65. Utopia66. VIRTUSA67. Wipro

Field Report: Major SIs

Accenture

BackOffice Associates

Capgemini/iGate Patni

Cognizant

Deloitte

IBM BAO/GBS/Lab Services

Informatica Pro Svcs

Infosys

Logica

Lumendata

Oracle Pro Svcs

Perficient

Serene

SAP Pro Svcs

Prolifics/Stream Integration

Tata

Utopia

Wipro


Field Report: MDM & DG Specialists

Affecto

AN Info Systems

Arhis

Business & Decisions

Caritor

Consology

Datpro

Detica

Datum

eCenta

Edificio

EMC Consulting

Entity Group

First San Francisco Partners

GlobalSoft

HighPoint Systems

Hitachi/Sierra Atlantic

IMT

InfoTrellis

Jibes

Knowledgent

MDMHubs

Myers-Holum

Project Performance Corp.

NorthGate

Perficient

Platon

SapientNitro

SITA

Sogeti

Steria

TaskData© 2015 The MDM Institute www.The-MDM-Institute.com

Field Report: Major SIs with Minor Practices

Atos (Origin, Siemens Bus Svcs)

Avanade

BearingPoint

CGI-American

Management Systems

CSC

Dell/Perot Systems

Fair Isaac / Braun

Consulting

Fujitsu (Born, DMR)

Hitachi Consulting

HP/Knightsbridge/EDS

Lockheed Grumman

Mahindra Satyam

PwC

SAIC

Unisys


Three Key Business Factors

Status of current incumbent relationships at the executive level

Status of current contracts, and pending contract negotiations (for other projects)

Business size, partnership direction, and ongoing viability of the SI/consultancy

Your organization’s weightings may vary …


Bottom Line: Avoiding the SI Money Pit

SIs are often necessary to sell C-level execs

Without C-level support, BUs will find it difficult to contribute funding & resources necessary to launch an MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)



SIs are needed to coordinate IT & Business

Readiness & maturity

Plan for IT organizational change management to support MDM efforts

Work with business leadership to design & refine the “future state” business processes associated with new MDM commitments



SIs are needed to help transform IT organizations

To a greater degree than traditional application development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative



After initial development of a MDM system, SIs can help IT & Business by facilitating

Ongoing participation in development of business rules & resolution of master data match/merge issues

Ongoing commitment to update both applications & business processes to leverage core data stored in master data hub


Rx for SI Management Strategies

Acknowledge that SIs are essential to success of majority of MDM & Data governance projects

Recognize that incumbent SIs are no longer so

Identify which SIs are market leaders in your industry & your chosen software technologies

Proactively manage key IT positions

Leverage SIs for their “value add”

Given substantial investment businesses undertake with SI partners, this area must be given scrutiny – not only to contain costs, but to

insure success of this vital infrastructure investment


How to Leverage the MDM Institute

Kick start the “MDM evaluation process” Attend public workshop

Bring workshop on-site

Fine tune in-process MDM strategies Due diligence on reference checking & contract details

Stay ahead of curve via MDM Business Council Re-qualify every 6 months via survey

Receive MDM Alerts & access to Web-hosted research

Increase your knowledge & negotiatingstrengths via MDM Advisory Council Membership Participate in monthly email surveys & receive updated industry scorecard

Receive monthly MDM consultation via telephone

“Independent, Authoritative, & Relevant”


MDM & Data Governance Summit™Conference Series

“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”

MDM & Data Governance Summit Europe

London ▪ May 18-21, 2015

MDM & Data Governance Summit San Francisco

Hyatt Regency – July 22-23, 2015

MDM & Data Governance Summit Asia-Pacific

Doltone House, Darling Island Wharf – Sydney ▪ July 28-30, 2015

MDM & Data Governance Tokyo

Belle Salle Kanda– Tokyo ▪ August 2015

MDM & Data Governance Summit New York

Hilton New York▪ October 4-6, 2015

MDM & Data Governance Summit Canada

The Carlu – Toronto ▪ Fall 2015

MDM & Data Governance Summit Shanghai

Shanghai Int’l Convention Ctr ▪ Fall 2015

© 2015 The MDM Institute www.the-MDM-Institute.com

About the MDM Institute

Founded 2004 to focus on MDMbusiness drivers & technology challenges

MDM Advisory Council™of 150 Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects

MDM Business Council™ website access & email support to 18,000+ members

MDM Road Map & Milestones™annual strategic planning assumptions

MDM Alert™ newsletter

MDM Market Pulse™ monthly surveys

MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas

MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Madrid, Singapore, Sydney, Toronto, & Tokyo

“Independent, Authoritative, & Relevant”

About Aaron Zornes Most quoted industry analyst authority on topics of MDM & CDI

Founder & Chief Research Officer of the MDM Institute Conference chairman for DM Review’s MDM SUMMIT conference series

Founded & ran META Group’s largest research practice for 14 years M.S. in Management Information Systems from University of Arizona


MDM Institute Advisory Council

150 organizations who receive unlimited MDM advice to key individuals, e.g. CTOs, CIOs, & MDM project leads

Representative Members 3M Autotrader Bell Canada Caterpillar Cisco Systems Citizens Communications COUNTRY Financials Educational Testing Svcs EMC GE Healthcare Honeywell Information Handling Svcs Intuit Loblaw McKesson Medtronic Microsoft

Motorola National Australia Bank Nationwide Insurance Norwegian Cruise Lines Novartis PC Connection Polycom Roche Labs Rogers Communications Scholastic Stryker SunTrust Sutter Health W.W. Grainger Westpac Weyerhaeuser Woolworths


Authoritative

Relevant

Independent

Aaron ZornesFounder & Chief Research Officer

The MDM Institute

The-MDM-Institute.com [email protected]

www.linkedin.com/in/aaronzorneshttp://twitter.com/azornes


mailto:[email protected]

http://www.linkedin.com/in/aaronzornes


Avoiding the MDM & Data Governance Consultancy Money Pit

Technology

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