Oracle Solution Day Your Master Data Management Journey · The Business Execution Gap Time Business...
Transcript of Oracle Solution Day Your Master Data Management Journey · The Business Execution Gap Time Business...
2009년 02월 12일
Your Master Data Management Journey:The Hard Road orthe Easy Road?
금융기관 경쟁력 강화를 위한 Oracle Solution Day
김대준 상무([email protected])
Master Data Management &
Applications Architecture
2
<Insert Picture Here>
Master Data and Business
Agility Problems
3
There Is No Business Value in Efficiently Distributing Garbage
Modern architectures, such as SOA, can
quickly distribute all master data assets,
but without solid Master Data
Management practices, higher costs and
consistency and quality issues abound.
4
ERP
Legacy Other…
Portal
EAIAnalytics
Mobile
Hosted
Existing Systems & Technology
CRM
Industry
Custom
Dev ToolsDataHubs
Collab
Ap
plic
ati
on
sIn
teg
rati
on
Te
ch
no
log
ies
Disparate applications and
integration technologies are
rigid and expensive to
maintain
Business EnvironmentTypical Landscape
5
MDM Issues
Lack of Enterprise-level data code standard
Region / Business Function
Lack of data integrity/accuracy
Difficulty of daily-based Data Quality management
Difficulty of managing lots of interfaces
Lack of Enterprise Data Governance Framework
Need of collaboration with business partners
Sourcing, Business Alliance, Sales, Marketing etc.
6
Business now evolves faster than IT is able to react…
…The result is decreasing business performance
The Business Execution Gap
Time
Business
Execution
Gap
Source: Gartner
Business
Systems
Business
Evolution
80% Maintenance
20% New Projects
IT Spending and Demand Survey
7
•SOA is designed to add
business process flexibility to
existing highly structure IT
infrastructures
•But underlying data quality
problems prevent newly
orchestrated business
processes from achieving
their goal
SOA
•MDM is designed to
consolidate and cleans
critical operational data
elements
•But single versions of the
truth about customers,
suppliers, and products in
their own silo doesn’t fix the
problem in the applications
MDM
SOA/MDM
Data quality problems Data exists in silos
8
• Creates the most strategic business value
• For MDM to be effective:
A SOA layer is needed to propagate the
master data to the applications and
expose the master data to the business
processes.
• Aligns Business and IT & close the
“Business Execution Gap”
• Transforms IT from a “Cost Center” to a
“Center of Innovation”
MDM/SOA Combination
MDM & SOAA unified approach
9
Order to Cash Business Process
Fixed Application Determined Processes, Fragmented Data
Marketing
Sales
Packaging
Fulfillment
Financials
Collections
Application Boundaries
Applications
Process
Sales Application
Opportunity/Sale
OM Application
Manage Order
AR Application
Invoice
Application Data John E. Doe Doe, Johnny Jon A. Doe
10
Order to Cash w/ SOAIntegrate the Apps & Orchestrate the Processes
Flexible Business Processes, Fragmented Data
Marketing
Sales
Packaging
Fulfillment
Financials
Collections
Applications
Process
Sales Application
Opportunity/Sale
OM Application
Manage Order
AR Application
Invoice
Application Data John E. Doe Doe, Johnny Jon A. Doe
Orchestrate the cross application processesBPEL
Enterprise Service BusXSLT & Xquery Adaptors
BRE
IdM
BAM
WSM BES
11
Order to Cash w/ MDMConsolidate and cleans the master data
Fixed Processes, Isolated Quality Data
Marketing
Sales
Packaging
Fulfillment
Financials
Collections
Applications
Process
Sales Application
Opportunity/Sale
OM Application
Manage Order
AR Application
Invoice
Application DataJohn E. Doe Doe, Johnny Jon A. Doe
MDMThe correct name
is Jon E. Doe
12
John E. Doe Doe, Johnny Jon A. Doe
MDM
Order to Cash w/ MDM & SOAIt’s the combination that brings business value
Quality Master Data Across the Flexible Enterprise
Marketing
Sales
Packaging
Fulfillment
Financials
Collections
Applications
Process
Sales Application
Opportunity/Sale
OM Application
Manage Order
AR Application
Invoice
Application Data
Orchestrate the cross application processesBPEL
Jon E. Doe Doe, Jon E. Jon E. Doe
Enterprise Service BusXSLT & Xquery Adaptors
BRE
IdM
BAM
WSM BES
13
The SOA & MDM CombinationCreates the most strategic value
June 2006, Best Practices “Eleven Entry Points To SOA For Packaged Applications”
Best Business
Case
14
MDM Maturity Model: A Framework To Help You Determine Where You Are Today…
Increasing
Maturity of
MDM
Level of MDM Maturity2 3 4 5
Unaware
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
15
<Insert Picture Here>
Master Data Business Case
16
Identify the Business Strategy —Common Examples
How do you meet the expectations of your
customers?
How do youacquire profitable
customers that will value you?
How do youretain or win back valued customers?
How do you create awareness of the value offered to potential customers?
Sales Service Marketing
Develop
Retain Acquire
Target
Customer Life Cycle
WelcomeManage Problems
Win Back Inquire
Extend breadth and depth of relationships
Minimize transaction barriers and reduce costs
Use and enhance brand
equity
Focus on customer value
and satisfaction
17
Business Case
2. The Business Process Owners — How to improve customer-facing activities and performance
3. The Financial Stewards— How to improve financial controls and performance
1. The IT Enablers — How to improve accuracy and relevance of customer and product data
FinancialResults
BusinessPerformance
Metrics
MDM TechnologyCapabilities
18
1. MDM leading indicators of financial results
Use Performance Metrics to Quantify Project Benefits
Financial Metrics
Income Statement
(millions of dollars)
Revenue $1,000
Less: Cost of Goods Sold 500
Gross Profit 500
Less Operating Expenses:
Sales 200
Administrative 200
Net Income $100
Business Performance Metrics
Business Value Model
Sales Opportunity Index, Time to Market
Procurement Costs, Conversion Costs
Customer Retention, Sales Close Index
Service Performance, Support Performance,
New Projects Index
MDM Supports All of These
19
(See "The Gartner Business Value Model: A Framework for Measuring
Business Performance" G00139413)
Finance and Regulatory
Responsiveness
Demand Management
Market Responsiveness
Sales EffectivenessProduct
Development Effectiveness
Supply Management
Customer Responsiveness
Supplier Effectiveness
Operational Efficiency
Support ServicesHuman Resources Responsiveness
Information Technology
Responsiveness
Sales
Effectiveness
Sales
Opportunity
Index
Forecast
Accuracy
Customer
Retention
Index
Sales Cycle
Index
Sales Close
Index
Sales Price
Index
Performance Metrics Example: The Gartner Business Value Model
20
Select the Outcome Metrics That Drive Desired Financial Results?
Sales OpportunityIndex
Sales CycleIndex
Sales PriceIndex
ForecastAccuracy
CustomerRetention Index
SalesEffectiveness
Cost of SalesIndex
Sales CloseIndex
How Successful Are We at Retaining Customers?
MDM supports customer retention by providing a single
view of the customer. Without high-quality and relevant
data, customer management decisions are
compromised.
Data Quality Target = 99.9% as defined by MDM
21
Negotiate the Level of
Operational Improvement
Identify MDM Capabilities
Determine Financial
Results
Customer Data Accuracy
Product DataAccuracy
Master DataGovernance
Earnings Cash Flow EVA
Discuss How MDM Capabilities Affect Financial Results
22
Translate the Targeted Improvementsto Financial Results
Business Metrics
Business Value Model
Sales Opportunity Index, Time to Market
Procurement Costs, Conversion Costs
Customer Retention, Sales Close Index
Service Performance, Advisory Index
Financial Metrics
Income Statement ($ millions)
Revenue $1,000
Less: Cost of Goods Sold 500
Gross Profit 500
Less Operating Expenses:
Sales 200
Administrative 200
Net Income $100
Finance & Regulatory
Responsiveness
Demand Management
Market Responsiveness
Sales Effectiveness
Product Development Effectiveness
Supply Management
Customer Responsiveness
Supplier Effectiveness
Operational Efficiency
Support ServicesHuman
Resources Responsiveness
Information Technology
Responsiveness
23
Key FS Industry DriversWhat Business Managers are wrestling with!
“Holy Grail” Business Questions in FSI
How many customers do we have?
How many customers have 2 products, 3 products, 4 products?
What is the “enterprise risk-score” of our B2b or B2c customers?
Can the CxO sign-off on the company’s financials?
Is a particular transaction suspicious? (in real-time or NRT or offline or aggregate
behavior)
How can I shorten time to define, price and market new products and services?”
Is the customer a high-value customer or a low-value customer?
› How should this customer be serviced? Should the customer be sent to IVR or CSR?
(Intelligent Call Routing)
What can we recommend to the customer who is calling in?
How can I streamline my business processes to grow wallet share and customer
profitability
24
“Every transaction -- whether it's over the phone, at an ATM, in a bank branch, or online -- is collected
and combined with personal data that the customer provides. Wells crunches the info and models
behavior to come up with prospective offerings, like a low-cost second mortgage -- just at the right time
to coincide with a life-changing event “
Source: Wells Fargo Investor presentation, 2004
Key Industry Drivers Wallet share & Customer Profitability
- Common Customer View- Common Product Hierarchy
“Deepening the Customer Relationship”
25 Source: Wells Fargo Investor presentation, 2007
- Common Customer View- Common Product Hierarchy- Common Fin. Hierarchies
“Deepening Customer Relationship”
Key Industry Drivers Wallet share & Customer Profitability
26
Annual Median Defection Rates (%)
Grow Business & Cross-Sell to Customers
“The average cost to acquire a new customer is $3,500 in the US”
US UKCanada France
14
4
2
14
0
12
10
8
6
4
16
2Average Number of
Products Per Household = 15
Average Number of Products at a Single Institution = 2
Source: Celent Communications
Defection rates are high while share of wallet remains low
11
“How can I streamline my business processes to
grow wallet share and customer profitability”
Grow Business
&
Cross-Sell to
Customers
Key Industry Drivers Wallet share & Customer Profitability
27
Key Industry DriversCustomer Experience(for High-Value Customers!)
• # of Self-service transactions on the rise. In-branch needs dwindling
•Regulatory PressuresFederal “Do Not Call” RegistryGLBA - Privacy Options/Mechanisms, etc.
In-bound Call Servicing & Marketing is in focusRequires a Customer Hub (+ good Product Hierarchy)Requires a real-time Recommendation (Data Mining)An MDM/Real-time ODS Layer etc. (not a DW’s job)
- Common Customer View- Common Product View- Privacy Hub
US Consumers - Demographic Profile & Channel Used(Data sourced from American Banker's Association - 2006 Survey)
68%
17%
7%
3%
5%
56%
32%
4%
3%
5%
33%
47%
4%
9%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Self-Service
In Branch
Phone
Unknown 54+
35-54
18-34
28
<Insert Picture Here>
Oracle MDM Solution
29
Oracle Enterprise Master Data ManagementThe most complete MDM offering in the market today
Budgeting
Data Governance
Oracle Fusion Middleware
Analytical MDM Apps
Operational MDM AppsOperational
Systems
Analytical
Systems
Cu
sto
me
r
Pa
rtn
er
OracleProduct Hub
Fin
an
cia
l
Oracle / Hyperion Data Relationship
Management
OracleCustomer Hub
EBS
Siebel
SAP
Custom Apps
ExternalApps
DW
BI &Datamarts
Planning
Financial Consolidation
Pro
du
ct
An
aly
tica
l
Application Integration Architecture
OracleSite Hub
Site
30
Key Components of Oracle Hub ProductsThe source of clean data for your enterprise
Trusted
Master
Data
• Consolidate & maintain a unique, complete and accurate master information across the enterprise for customer, supplier, employee, product, asset, site & financials data
• Distributes this information as a single point of truth to all operational & analytical applications just in time
Siebel
EBS
SAP
Custom Apps
Other
JDE
PSFT
Siebel
EBS
SAP
Custom Apps
BI
JDE
PSFT
31
Trusted Party Data
Oracle Master Data Management Solution
Web Services
Library
Publish &Subscribe
Transports &Connectors
Authorization
Registry
Profile & Correct
History& Audit
PrivacyMgmt
Events & Policies
Import Workbench
Identification & Cross-Reference
Source DataHistory
Survivorship
Parse
Cleanse & Standardize
Enrich
Manage Decay
Match & Merge/ Unmerge
Roles &
Relationships Party
Vertical Variants
Related Data
Entities
Hierarchy Management
Pre-built Apps Integration processes
Data Integration
32
Consolidate/Federate shared information into one place
Cleanse data centrally
Share data as a single point of truth as a service
MDM: The source of clean data for the enterpriseNurture one of your most valuable asset
Consistency siloed environments
(Integrated Best of Breed)
Lower data management costs
Better reporting
Enterprise foundation for agility
& innovationETL
ETL
Middleware
Application Integration ArchitectureBI/
DW
Web site
Call
CenterSFA Partner
Fusion
App
FusionApp
Call
SCMERP2 LegacyERP 1
MDM
33
Consolidate/Federate shared information into one place
Cleanse data centrally
Share data as a single point of truth as a service
MDM: The source of clean data for the enterpriseNurture one of your most valuable asset
ETL
ETL
Middleware
Application Integration ArchitectureBI/
DW
Web site
Call
CenterSFA Partner
Fusion
App
FusionApp
Call
SCMERP2 LegacyERP 1
MDM
Event in operational apps
(e.g. new address)
Match Cleanse & Enrich Consolidate (Dedup & build golden record) X-reference
34
Consolidate/Federate shared information into one place
Cleanse data centrally
Share data as a single point of truth as a service
MDM: The source of clean data for the enterpriseNurture one of your most valuable asset
ETL
ETL
Middleware
Application Integration ArchitectureBI/
DW
Web site
Call
CenterSFA Partner
Fusion
App
FusionApp
Call
SCMERP2 LegacyERP 1
MDM
Distribution of clean, consolidated, complete master object to all subscribing applications
Update BI Dashboard maps and DW cross reference
35
Consolidate/Federate shared information into one place
Cleanse data centrally
Share data as a single point of truth as a service
MDM: The source of clean data for the enterpriseNurture one of your most valuable asset
Consistency siloed environments
(Integrated Best of Breed)
Lower data management costs
Better reporting
Enterprise foundation for agility
& innovationETL
ETL
Middleware
Application Integration ArchitectureBI/
DW
Web site
Call
CenterSFA Partner
Fusion
App
FusionApp
Call
SCMERP2 LegacyERP 1
MDM
Need clean & up to date info to support specific business process
MDM provides real time web services to access master data (match / request entire profile / request selected info)
36
Site Hub in Financial Services
Repository for all sites (Current, Prospective and Past Offices, Branches, Real Estate, ATMs, Competitors’ Sites, etc.)
Site creation using templates
Assets and Inventory
Multimedia attachments
Simple and advanced search with user-defined set of attributes
Google Maps capability, including partner sites
Site hierarchies, trade areas, & clusters
37
Life Sciences and Healthcare
Public Sector
Master Data Management CustomersOver 750 Customers Across Industries & Around the World
Communications, Media & Utilities
Financial Services
Retail & CPG
High TechnologyManufacturing &Distribution
Belgium Post
Libyan Min. of Interior
38
<Insert Picture Here>
Data Governance
39
Data GovernancePolicy-Process-Organization for Master Data Management
40
Quality of Master Data Is a Business Issue — IT Is Not Equipped to Solve It Alone
"Who cares? Data is IT's problem."
The Denial The Truth
"IT should lead a data quality program."
"Just throw some technology at it."
But IT is critical to success and must be involved.
IT does not feel the (real) pain.
IT does not know the
business rules.
IT does not own the subject
matter expertise.
Technology alone won't work.
41
DataGovernance?
Most Companies Struggle with Data Governance
The Speed ofBusiness
Fast! Faster!! Fastest!!!
Line of Sight(What should I do
& why?)
Focus! Prioritize!
The Tyranny
of the Urgent
“I don‟t have timeto do it right!”
TheCorporate Culture
Rewards, Rewards, Rewards – or
“Heroes Wanted!”
The Tendency to
Make It Perfect
Good Enough is „good enough‟
Not „boiling the ocean‟
Sharing is GOOD(or so our Mothers
taught us)
Mine! Mine! Mine!
42
<Insert Picture Here>
MDM Architecture Style
43
Registry
Style
Coexistence
Style
Centralized
Style
Consolidation
Style
• Federation or
physical
consolidation
• Batch or real
time
• Unidirectional
data flow
• Data quality
controls in/at the
master data
repository
• Federation,
physical
consolidation, and
real-time change
propagation
• Batch and real time
• Bidirectional data
flow
• Data quality
controls at sources
and master data
repository
• Physical
consolidation and
real-time change
propagation
• Batch and real
time
• Bidirectional data
flow
• Data quality
controls at the
master data
repository
• Federation and
real-time change
propagation
• Real time
• Bidirectional data
flow
• Data quality
controls at the
master data
sources
MDM Architecture Style defined by Gartner
44