Daejun Kim - DBGuide.net · Siebel Universal Product Master • Complimentary to PIM Data Hub •...

Daejun KimDirector & MDM Solution ArchitectMaster Data Management TeamOracle Corporation

Mastering Master Data Mgt.

Mastering Master Data Mgt. Agenda

What is MDM?The Need for MDMOracle’s MDM SolutionsCase StudiesQ&A

MDM’s Role In Enterprise System

Enterprise Data

Describes an Enterprise’s Performance• Trends, Forecasts, Sales history, Buying patterns,

Propensity to buy in the future, Factory Plans, etc.

AnalyticalData

Describes an Enterprise’s Operational State

• Quantities, Orders, Shipping notices, Inventory, Balances, Interest accrued, Withdrawals, Payments, Deposits, etc.

TransactionalData

Describes an Enterprise’s Business Objects

• Customers, Products, Items, Suppliers, Assets, Vendors, etc.

MasterData

Foreign KeyReferences

Data WarehouseDimensions

Types of Enterprise DataTypes of Enterprise Data

Information: One of Your Most Valuable Assets

…… but harnessing it is not easybut harnessing it is not easy

• 85% say “they can’t easily find info. they need”

• 75% omitted info. in reporting/ research if not “findable” in <10 min.

• World produces 250MB of info. every year for every person on the earth.

Information Information OverloadOverload

Source: Gartner

QualityQualityProblemsProblems

• Data quality problems cost North American businesses more than $600 billion dollars a year.

• “In recent discussions with more than 30 companies, not one expressed a strong level of confidence in the quality of customer data.”Source: Forrester

Source: TDWI

• Information silos abound

• No semantic consistency across the enterprise

• Inability to share data across silos increasingly becomes a competitive disadvantage

No TrustedNo TrustedViewView

??

Source: Gartner

• Limited ability to “sense-and-respond”

• Project-level management styles cause silos, which are barriers to agility

• Current information architectures are counter-productive to achieving agility

Lack ofLack ofAgilityAgility

Source: Gartner

What is Master Data Management (MDM)?

Consolidate information into a single master repository

Synchronize data for a consistent enterprise view

Leverage master data to improve customer and product

centric business processes and analytics

Cleanse and enrich data centrally and distribute

The Ability to…

Master Data Management Process

• Most companies have the problem of creating a unified view of the Master Data

• Link to 3rd party and legacy applications

• Import data into a centralized data model

CentralizeCentralize Improve Data Quality

Improve Data Quality SynchronizeSynchronize

• Identify and resolve duplicate data

• Prevent creation of duplicate entries

• Capture all updatesinto central master

• Push updates out to all linked applications

Gain AccurateInsight

Gain AccurateInsight

• Consistent Enterprise Customer Reality

• True 360 Degree View across All Transactions

Typical Approaches to MDM

Finance

CRM

SCMCall Center

Source: Three Database Approaches to a Single View of Your Customer, Gartner 2004

• Designate single application as the ‘system of record’

• Potential Pitfalls:• Data model is limited in scope to

the domain of application• Obvious political issues

#1 #1 –– Application FocusedApplication Focused


Finance

DB for Metadata

SCMCall Center

• Create a database of metadata for queries across systems.

• Potential Pitfalls:• High data quality is required in

participating systems• Potential performance problems


#2 #2 –– Virtual Data ModelVirtual Data Model


Finance

New System of Record

SCMCall Center

• Create a new ‘system of record’, which centralizes, de-duplicates, rationalizes and enriches your master data and continuously synchronizes all data sources

• Benefits:• Able to introduce solution gradually• Minimizes impact on source systems• Provides single source of trusted

data


#3 #3 –– Reference MasterReference Master

Which approach is ideal?

“…the creation of a master customer information database

will deliver the most accurate, up-to-dateand complete single view of the customer

across multiple channels and business lines in heterogeneous IT environments.”

(.8 probability)


So, everything in one data model?

“…it’s important to recognize and account for significant distinctions between data types.

For instance, customer …, and product information usually requires different models.”

Source: AMR Research, Taking the PIM Path on the MDM Journey, July 2005


What is MDM?The Need for MDMOracle’s MDM SolutionsIndustry DriversThere’s Almost Never An “MDM” DealCase StudiesQ&A

The Data Challenge• Two-fold Challenge:

1. Data is in a constant state of flux• For example, customer data changes at a rate of 2% per month

because people marry and divorce, move, change jobs, companies change names, org structure, enter new markets, merge and acquire additional companies.

• Even if customer or product data was managed in a single application, the challenge of coping with this velocity of change is there

2. Data is fragmented across the enterprise• Customer data is ubiquitous – virtually any application will make use

of some customer data• Because customer and product data is found across all applications,

business units and product lines, it quickly gets out of sync, and companies are stuck with multiple, disparate, often conflicting profiles for the same customer and products

Companies

#1 - Data Is In a Constant State of Flux

• 240 businesses will change addresses

• 150 business telephone numbers will change or be disconnected

• 112 directorship (CEO, CFO, etc.) changes will occur

• 20 corporations will fail • 12 new businesses will open their

doors• 4 companies will change their name

Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics

• 5,769 individuals in the US will change jobs

• 2,748 individuals will change address

• 515 individuals will get married• 263 individuals will get divorced • 186 individuals will declare a

personal bankruptcy

Individuals

#2 - Fragmented Across Multiple Divisions

CREDIT CARDSCREDIT CARDS MORTGAGEMORTGAGE BANKINGBANKING INVESTMENTINVESTMENT

INSURANCEINSURANCECREDIT CARDS MORTGAGE BANKING INVESTMENT

Diversified Financial Services Institution

Shang HaiCity1171-22-1Nat ID1000 RMBBal

1867 Fuxing Rd

AddMary LeeName

ShangahiCity

1.1M RMBBalNat ID

1867 Fuxing Av

AddMary WongName

ShanghaiCity

4M RMBBal1171-22Nat ID

1867 Fuxing Lu

AddMary LiName

ShanghaiCity

3.3M USDBal117-22-1Nat ID

1867 Fushing

AddMary LeeName

?City

?Bal?Nat ID

?Add?Name

?

How MDM Pays

“Data quality problems costbusinesses more than $600 billion dollars a year.”

“By 2005, Fortune 1000 enterprises will lose moremoney in operational inefficiency due to data quality issues than they will spend on data warehouse and CRM initiatives.”

“In recent discussions with more than 30 companies, not one expressed a strong level of confidence in the quality of customer data or satisfaction with the company’s overall approach to managing and integrating customer data.”

“A manufacturer can expect to save from $800,000 to $1.2 million for every $1 billion in sales through data synchronization.”

“Business that use a formal, enterprise-wide strategy for Global Data Synchronization will realize 30% lower IT costs in integration and data reconciliation at the department level through the rationalization of traditionally separate and distinct IT projects.”

Customer Product


What is MDM?The Need for MDMOracle’s MDM SolutionsIndustry DriversThere’s Almost Never An “MDM” DealCase StudiesQ&A

Oracle Customer Data Hub (CDH) Solution• Oracle Customer Data Hub

• Industry leading “party” data model• Enabling integration services• Broad and embedded data quality

tools • 360 Degree Enterprise Viewer

• Oracle Customer Data Librarian• Comprehensive CDM application

and tool set• Embedded rules based search,

duplicate prevention and duplicate detection, wizard/flow based duplicate resolution

• Oracle Fusion Middleware• Standards based integration

solution (BPEL)• Rich domain/technology adapter

support

• Common Party definition• Enterprise wide repository• Relationship modelling• Comprehensive definition• Process independent• Maintain history• Single version of truth• Extensible Data Model

Customer Data Model• Cleanse batch & real-time• Data Quality Management• Duplication prevention• Merge requests• Data enrichment (D&B)

Data Management

• Open architecture• Complement existing

systems• Standards based

integration framework• XML Web Services & APIs

Integration• Custom Applications• Oracle Customers Online • Oracle Applications• 3rd party applications

Access

Oracle Customer Data Hub

Oracle Customer Data Hub

Oracle Universal Customer Master (UCM) Solution

• Oracle Universal Customer Master• Extensible data model with built-in

vertical support• Privacy Management• Cross-referencing capabilities• Survivorship rules and processes• Pre-built business services• History and audit trail capabilities

• Data Quality Connector (SDQ):• Integrates with leading Data Quality

tools for data cleansing and matching

• Oracle Fusion Middleware• Standards based integration

solution (BPEL)• Rich domain/technology adapter

support

Parties,Roles and

Relationships

Identification

Historyand Audittrail

Relateddata

entities

Oracle UCM Key Features

Cross referencingUniversal IDHistory & Audit TrailExtensible: Activities, Product, Service & Marketing Masters

Trusted Customer Information

Best customer record (Matching)Merge / UnmergeSurvivorship engine & rulesData Profiling (Analytics) Data EnrichmentData Steward Functions

Closed Loop Data Quality

Application AuthorizationPre-built Enterprise ServicesSupport for all common integration methods/transport protocolsBatch (EIM)Real-time (UAN BIPs)

Unify/Distribute Customer Insight

Data model for Privacy ProfilesRules engine for privacy rules managementPre-built privacy rules (U.S.)

Proactive Events & Policies

FusionCDI

Customer DataHub

Oracle Integrationor Other Middleware

Integration LayerWeb

Services

APIsBES Callouts

UniversalID

CrossReferences

ContentAdapters

PackagedApplications

CustomApplications

ContentProviders

Customer DataHub

Customer DataHub


Integration Layer


Integration LayerWeb

Services

APIsBES Callouts

UniversalID

CrossReferences

ContentAdapters



CustomApplications

CustomApplications

ContentProvidersContent

Providers

Oracle is #1 in Customer Data Management

Oracle Customer Data Hub• Recent wins against competitors

• Trans Sinotrans• Gov’t Central Gov’t of

India• HiTech FileNet• Telco LG Telecom

Siebel Universal Customer Master• Recent wins against competitors

• Telco Saudi Telecom• M&D HP, Parker-Hannifin• Travel Royal Caribbean Int’l

Oracle Product Information Management (PIM) Data Hub

• Focus on consolidating product information

• Drive toward better product data quality

• Automatic data synchronization with trading partners

• Improve collaboration across and beyond the enterprise

• Increasing component reuse in product designs

• Accelerated new product introductions & changes

Oracle’s Product Information Management Data Hub Solution

• Master Product Catalog• Comprehensive product

information including documents and CAD

• Configurable change management

• Advanced security for individuals, groups, and roles

• Phase gate controls

• Master Product Index• Advanced catalog search,

including parametric search• Links to external systems

• Globally Accessible Collaboration• All major national localizations,

including all currencies and30 languages

• Multi-lingual data presentation and search to all internal and external stakeholders

• Scalability and Performance

Product Website UCCnet

Component Supplier Mgmt System

PDM Systems

ProductData HubProduct

Data Hub

Oracle Universal Product Master

• Designed to reduce the time to market for product offerings

• Focused on standardized policies for modeling product sales :• Bundles and Catalogs• Eligibility and Compatibility• Pricing and Configuration• Recommendations and Cross/Up-Sell

Complete Product Information Management (PIM)

Oracle PIM Data Hub

• Consolidate from heterogeneous system

• Robust Product Catalog

• Collaborate• Data Quality

Management

Siebel Universal Product Master

• Complimentary to PIM Data Hub

• Focused on Policies• Pricing-Promotion• Multi-Channel

Commerce

Import & Synchronize

Syndicate &Publish

OraclePIMDHOraclePIMDH

SiebelUPM

SiebelUPM

Front Office

Systems

Front Office

Systems

Data Pools[UCCNet/ GDSN]…

Data Pools[UCCNet/ GDSN]…

Inform, Enhance & Enforce

Back Office

Systems

Back Office

Systems

PIM Data HUB

UPM

Manufacturing

Constructio

n

Retail

Public Sector

Communications

& Media

Banking

Professional

Services

2007 2008 20102009

Oracle CDI Convergence Roadmap

8.0

Siebel

Fusion

Oracle

8.x

V1

V2R12

8.1

2006

R12.1

Dates are estimates and subject to change

• Two Best In Class Solutions• Similar Architectures – Customer Driven Differences• Continue with CDH/UPM Product Enhancements• Insure Simplified Migration• Goal: Protect – Extend – Evolve


What is MDM?The Need for MDMOracle’s MDM SolutionsCase StudiesQ&A

• 90+ new customers in 2005• Largest customer base: 200+ by end of 2005• Largest Market Share in 2005 > 40%• Strong success across key Vertical Industries:

Oracle is #1 in MDM

High Tech &Mfg.

Financial Services

Communications Public Sector

Retail, Distribution

Select New MDM Customers in 2005~2006

Gartner Dataquest Marketshare and Forecast for Customer Data Integration Hubs, by FabrizioBiscotti and John Radcliffe January 2006,

Oracle is the Clear Leaderin CDI (Gartner CDI Market Share Analysis)

Select Oracle CDI “Blue Chip”Customers

Business Objectives Solution Anticipated Benefits

• Consolidate multiple systems to achieve a single repository of customer information

• Transportation management systems• Agents management systems• Financial system

• Understand the complex relationships around large organizational customers.

•Consolidate information related to large customers from different sources, thus able to provide a better service experience.

• Reduce duplicate customer records from multiple customer contact points

• New Ocean Transportation Management System being implemented

• CDH part of this overall project• To consolidate customer

information and sync with existing systems

• Basis for future CRM processes and system

• Manages supplier information as well as customer information

• CDH implemented as a standalone system, separate from Oracle Financials

• Customers, Orders, Product and pricing are centrally managed

• Product and pricing data is made available through a SOA architecture

• Infrastructure Agility for changing business requirements like M&A

• Product and pricing data is available across internal and partner channels

Achieved a single repository of customer information to better service their best customers

• Implemented Oracle Customer Data Hub and Oracle Financials

• SOE with 17,000 employees• 2005 Rev USD $3.5B• Project Go-Live in early 2006• Rolled-out to 5 Provinces so far


• Improve order accuracy and reduce inventory

• Reduce support time and IT costs

• Implement via phased approach to a common IT / PLM Platform

• PIM Data Hub to have:• Auto-Numbering• User Defined Attributes• Item Approval Workflow

• Live on 11i including PIM Data Hub (product information mgmt), Inventory, and Order Management

• Plans to consolidate to a single product definition system for engineering, sales, and manufacturing relationships

• Reduced working capital• Improved Customer

Satisfaction

Consolidate Product Information Across the Enterprise

World´s largest manufacturer of metal-polymer plain bearings

- 50,000 customers, 1,000 users, 19 countries- Main production in Germany, France, U.S., and

Slovakia


• Challenging process identifying and targeting the “right” citizens for social benefits. Public Distribution System provides food rations to citizens but does not have systems or data to enforce rules:

• Death certificates and death dates not shared with PDS resulting in distribution of food in appropriately.• Housing Bureau information not shared with PLS and so families with greater than 4 acres of agricultural land are participating in this benefit.

• Pensions are being distributed to citizens who should not qualify due to either registering a property greater than 200 sq m or registering an automobile

• Electoral Department cannot verify date-of-birth for election registration.

• CDH chosen as the base solution for the World Bank funded project named, Central Data Vault

• Multipurpose Household Survey (MPHS)

• Citizen data collected from multiple departments to be used for multiple purposes.

• Carried out for 70 Urban areas targeting a 3M population.

• Surveyed data loaded into Oracle Customer Data Hub

• Qualified citizens to receive social benefits resulting in a significant decrease in current aid.

• Accurate payments to only qualified senior citizens resulting in significant savings in aid.

• Age limit enforcement for voter registration.

• Sharing of key citizen information to all government departments resulting in more focused service and savings.

Government of Uttaranchal, India

• CDH basis for Central Data Vault Project• Twenty- seventh state of the Indian Union• Projected Go-Live in early 2007


• Establish Future Information Architecture

• Enable account penetration via cross-sell/up-sell

• Retire custom applications –migrate to Tier-1 Package Applications

• Oracle Customer Data Hub• Source System

Management• Single Source of Truth

• Fusion Middleware Integration/SOA Suite

• Integration Solution• Salesforce.Com• Legacy Leasing Apps

• Increase Revenue• Decrease infrastructure costs via

retired legacy applications• Increase customer satisfaction• Decrease/accurate global

exposure• Improved business insight

through accurate market analytics

Establish Future State Information Architecture Create 360 Degree View

• Oracle Customer Data Hub• Beat IBM - DWL


• Retire high cost legacy applications

• Migrate mission critical business process and applications to tier-1 package applications

• Improve customer satisfaction• Reduce master data duplication

and fragmentation• Reduce data quality expense

resulting from reliance on external service/vendor

• Peoplesoft CRM Call Center• Oracle Customer Data Hub

• DQM • Merge Dictionary open

architecture• Fusion Middleware

Integration/SOA Suite• Integration Solution

• PeopleSoft Call Center• Legacy Order Management• Legacy Billing• Legacy CIF (retired)

• Reduced Infrastructure costs via retired main frame resources

• Reduced/eliminated reliance on external data quality service/vendor

• Increased Revenue resulting from improved customer experience

Reduce Infrastructure Cost Improve Customer Satisfaction

• Oracle Customer Data Hub • Peoplesoft/CRM• 220 M defined customers


• Consolidate customer information

• Reduce customer data duplication and fragmentation

• Increase customer value through product penetration

• Increase Customer Satisfaction

• Oracle Customer Data Hub• Source System

Management• Single Source of Truth

• Fusion Middleware Integration/SOA Suite

• Integration Solution• SAP/R3• Siebel/CRM (SFA)• Salesforce.Com• Legacy Apps

• Increased Revenue• Accurate Customer Analytics• Increase Marketing Effectiveness

Create 360 Degree View of Customer Single Source of Truth

• Peoplesoft/CRM Loss Salesforce.Com• Oracle Customer Data Hub • Beat SAP/Netweaver


• Reduce multiple silos of customer information

• Streamline Order Management by enabling a single view of customers

• Enable coordinated product, pricing, ordering policies across applications across disparate channels

• Decrease revenue loss as a result of disjointed pricing data, policies, and approval process

• Siebel SFA and Siebel CDI to Master Customer information and Order Processes

• UCM for Customer Sync• UPM for Catalog Sync,

Attribute Updates• Customer Order

Management• Siebel CDI/Order Validation

Engine to facilitate access to product and pricing data by non-Siebel applications

• Customers, Orders, Product and pricing are centrally managed


• Infrastructure Agility for changing business requirements like M&A


Reduce Dependence on Redundant Data Ensure Order Management Accuracy

• UCM and UPM • Siebel Order Management • Yantra (Partner) OM Applications• Project Kickoff Anticipated in Q2 2007


• Deliver customer focused products

• Deliver personalized products at lowest possible cost.

• Lower their IT total cost of ownership

• A system capable of managing complex specifications for thousands of storage device components

Oracle PIM Data Hub to• provide a “front end”

solution to sales engineers for validating assemblies

• consolidate items between multiple systems

• standardize ASL/AML management

• centralize new item request process

• integrate to PLM system

• Improved flexibility• Accelerated new item

introduction/creation process

• Improved item reuse• Reduced inventory

Improved Customer Personalization by Simply Managing Complexity

Worldwide leader in the design, manufacture and marketing of hard disc drives, providing products for a wide-range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications.


• Identify potential cruisers by matching them with previous cruisers in their household

• Lower the direct marketing cost per cruiser by enhancing the data quality

• Cross-sell frequent cruisers with new products

• Siebel UCM mastering 20 Million customer records

• Integrating to:• Siebel 7.8 Call Center• Homegrown reservation

system• Homegrown Marketing

System• FirstLogic (data

cleansing)

• Streamline and enhance direct marketing capabilities

• Proactively market products based on cruisers profile data

• Better identify & segment cruisers by address and household

• Manage travel agent hierarchies and relationships

Improve Direct Marketing Effectiveness

“We elected to purchase a packaged CDI solution in UCM rather than build one ourselves using IBM/DWL’s toolkit.”

-- JP Hurtado, Director of Customer Data


• Reduce high maintenance costs and process inefficiencies for rolling out new products and pricing

• Reduce reliance on IT for product and pricing deployment and maintenance

• Enable coordinated product, pricing, ordering policies across applications and channels

• Decrease revenue losses as a result of disjointed pricing data, policies, and approval process

• Siebel SFA for Level 3 employees

• Sales• Customer Order

Management• Siebel UPM/Order Validation

Engine to facilitate access to product and pricing data by non-Siebel applications

• Product and pricing is centrally managed



Accelerate Product Rollout Internally and Externally

• Product Master for Siebel Applications and Partner (non-Siebel) Applications

• Project Kicked off in Q1 2006

Next Steps

• Daejun Kim – Director, MDM Solution Architects• Email: [email protected]• Phone: 011-295-9046

Oracle MDM Solutions (Data Hubs)http://www.oracle.com/data_hub/index.html

Customer Data Managementhttp://www.oracle.com/data_hub/cdh.html

Daejun Kim - DBGuide.net · Siebel Universal Product Master • Complimentary to PIM Data Hub •...

Documents

Transcript of Daejun Kim - DBGuide.net · Siebel Universal Product Master • Complimentary to PIM Data Hub •...