June 2008

Master Data Management

MDM

DM

Project Management Challenges

With A Changing Landscape

A Supplement to

Produced by SourceMedia’s Custom Media Solutions

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 Master Data Management

It is not the advanced state of

technology but rather the pressing
needs of business that has brought
master data management (MDM)
to the fore. And if IT is to provide the engine for MDM, it is business
that must be the driver and navigator to take MDM to its desired destinations. The many
complexities and requirements of MDM can lead us to overlook a simple truth: It is not
and never will be IT’s job to tell the business how to run the business. Therefore it is up
to the business to define its own core competencies, its primary levers of competitive
differentiation and make sure the MDM program springs directly from these. Technology
by itself will work as designed; the greater chance of failure lies in lack of forethought and
the competing internal interests that cause delays, scope creep and projects that do not
answer to predefined goals and measures of success.

Contents Industry Best Practices

4 Project Management Challenges

with a Changing Landscape

8 The Intrinsic Value of

Master Data Management

9 MDM
Milestones

Sponsors
02 DataDelta
09 Exeros
11 D&B
12 DataLever

A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions 3

 Project Management
Challenges with a By Tim O’Sullivan

MDM
Changing Landscape

is not a technology market,

but a business capability.1 MDM is more than technology; it is about
data governance, data ownership and an ongoing program to maintain
a single version of the truth for critical corporate data.

The political nature of MDM explains the importance of data governance,

but governance alone is not enough to undertake an MDM initiative. While large IT
projects in the past, such as customer relationship management (CRM) and enterprise
resource planning (ERP), have involved both IT and business teams and required both
IT application implementation and change management, these projects ran in parallel,
with the IT teams focused on the implementation and the change management team
preparing the users for the system.
Project management for these projects through implementation and delivery has
resided within the IT organization, with the business side providing the requirements.
MDM reverses this paradigm. Business not only owns the requirements, they also own
the data, the ongoing data stewardship and, most importantly, the project management
of the MDM initiative.
Therefore, to address the project management challenges in an MDM initiative,
it is necessary to create a framework including project management best practices,
technological advances, data requirements and a blend of methodologies from change
management, business process reengineering and IT application implementation.

12
Successfully delivering projects on time has always been a challenge. Project
management methodologies are well documented and continue to evolve to address
the challenges. The Project Management Institute (PMI) and body of knowledge guide
(PMBOK) are excellent sources of reference material on the subject. With this in mind,
six key points are vital to the success of your MDM project.

Use successes in project management, Leverage service-oriented architecture (SOA) and

such as a project management office
(PMO), as part of your MDM initiative.
Initiatives such as the formation of a PMO to
document and disseminate knowledge of what
works within and across projects have real,
quantifiable benefits. Companies that implemented
successful PMOs achieved 80 percent ROI and 20
percent reduction in project time.2
on-demand technologies to accelerate project
delivery via consolidation and reuse of services.
In the early 2000s, both Gartner and Forrester Research put
CRM project failure rates greater than 70 percent. More recently,
technological improvements such as on-demand deployment
models are contributing to better implementation results: 59.3
percent of on-demand CRM projects are implemented in three
months or less compared to 15.6 percent for on-premise. Also,
76.5 percent of on-demand projects are on budget, compared
to 43.7 percent for on-premise.3 Additionally, SOA allows a
number of technologies to work together in an MDM initiative.

4 A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions

 4
Bring the people aspect right up front in an MDM initiative.
Enterprise projects such as ERP involve a lot of change. Change management
refers to the effort it takes to manage people through the emotional ups
and downs that inevitably occur when an organization is undergoing massive
change.4 At the core of change management is people.

The preparation steps for a change management project include executive

sponsorship, selecting a change agent, forming a transition team, performing
assessment activities and developing a transformational vision. The transition
team serves as a liaison between the end users and the development teams

5
and performs tasks such as implementing processes and training users
of the system. The change agent leads the change project and requires a
mixture of good project management skills to keep projects on track and good
leadership skills to motivate and evangelize for the project with passion.

MDM is a program involving ongoing data stewardship and process

reengineering, using lessons learned from business process
reengineering (BPR).
BPR is also an enterprise-wide undertaking to dramatically improve
customer service, cut operational costs and make the organization more
competitive. The preparation step involves building cross-functional teams
and identifying the objectives.

6
The main activities break into the following steps: Mapping and analyzing
the “as is” processes, designing the “to be” processes and implementing
the reengineered processes. Following implementation, BPR enters a
cycle of continuous improvement through ongoing measurement and
review. At the core of BPR are processes.

Treat implementation as a subproject led by IT, and expand the

3
scoping step with principles from change management and BPR.
The crucial steps in the lifecycle of an IT implementation project are
typically: scope, planning, execution, control and closure.5 Flexibility,
common sense and communication within this framework are critical for
successful project delivery.

MDM will shift data ownership to the
business side of the organization, putting
focus on a data methodology.
Prior to MDM, data needs were typically
fulfilled by each department maintaining
their own silo of information and/or
During the scoping phase, the systems and their requirements or
features are identified and the business requirements are gathered. The
project deliverables are broken down into manageable tasks, resource
assignments and milestones. These projects are typically
led and managed by IT.

requesting a snapshot of data from a data
warehouse maintained by IT. Centralized
data was owned and maintained by IT.
Data needs often lack a methodology for
preparation and analysis. But, at the core
of the methodology is data.
Both
a business sponsor and an ROI case for the project
are needed for continued executive support during the lifecycle. A steering
committee working at a strategic level guides the project, and project
management focuses on the execution of the plan within the constraints of
time, resources and scope. At the core of IT implementation is execution –
getting the project completed on time. Implementing MDM is still relatively
new to organizations, compared to implementing ERP or CRM.
continued

A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions 5

 MDM is the framework of processes and technologies aimed
at creating and maintaining an authoritative, reliable, sustainable,
accurate and secure data environment that represents a single
version of the truth.6 This definition reinforces the point that MDM
is a blend of data, processes and technology.
Data implies data requirements, data analysis and data
integration. Technologies are required to provide a data hub; data
profiling; data quality; matching/cleansing; extract, transform
and load; enrichment; and application integration functionality.
Processes are required for the operational workflows and rules for
managing a single version of the truth.
Extended processes are required when integrating the spokes,
such as a marketing database, customer service, ERP and CRM,
with the MDM hub.
So what is at the core of MDM? We’ve seen that in change
management it is people, in BPR it is processes and with technology
it is execution. In MDM, it is all of those, plus data and data
ownership. And data ownership brings a lot of politics into the
project management mix.
Fig
ure
1:
Fra MD
me M
wo Management
rk
When embarking on an MDM initiative, the initial step resembles
a change management project where building a team (in this case,
the data governance council), performing assessment activities
and defining the vision and objectives are the main undertakings.
During this step, the organization should lay the foundation for
the project management of the MDM initiative. As a best practice,
business should have ownership and leadership for the MDM
initiative.
The change agent will come from the business side, will possess
both project management and leadership skills and will have overall
project management responsibility. At the MDM Summit conferences,
we heard a number of cases where former IT folks transitioned to
the business side, and consultants were often used to assist the
organization in the transformation. In the next step, business asserts
itself as the owner of the MDM initiative and takes control of the
specifications and analysis of data.
With data at the core of the initiative, a methodology for data needs
and ongoing data stewardship for data preparation and analysis will
have to be adopted. As companies already have data, technologies,
business processes and rules for data management, the impact of
the MDM initiative will need to be analyzed. Cross-functional teams of
business analysts, IT and data gurus will follow a BPR methodology
and design the “to be” processes and business rules.
6 A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions
The implementation step will adopt the IT implementation
methodology, and IT will have much clearer objectives within the MDM
framework.
The final step in the MDM framework resembles BPR. The MDM
initiative enters a cycle of continuous measurement and review
as part of the ongoing data stewardship that is fundamental to a
successful MDM initiative.
A blend of existing methodologies and best practices are directly
applicable to MDM initiatives. Adopting a framework will facilitate
the project management of the initiative.
Underlying the MDM initiative is a data governance council.
Data governance is a process focused on managing the quality,
consistency, usability, security and availability of information.7
While data governance is a continuous effort after the MDM
implementation, it is also a crucial part of a successful MDM
implementation and must be embedded into the project plan.
a Continuous
Improvement
a
IT Application
Implementation
a
Business
Process
Reengineering
a
Data
Needs
Change
Data Governance Council – PMO – Data – Processes – Standards
The best advice on how to include data governance in the project
plan is to include milestones that, when achieved, can be pointed to
0
as data governance successes. This way the organization sees the
impact of MDM and appreciates its importance when a continuous
post-implementation effort is required.
By adopting existing project methodologies and working data
governance into project plans as milestones, a framework for the
project management of an MDM initiative emerges that addresses
the political, technological and data stewardship challenges.
No matter how small the initial MDM project is scoped, putting the
MDM framework in place from the start will get the project off the
ground successfully. Regardless of which approach an organization has
taken to date on an MDM initiative, it is possible to get back on
track once the path forward is better understood and a framework
is adopted.
References:
•
1. Hannah Smalltree. “Gartner and Forrester refute master data management system claims.”
SearchDataManagement.com, December 5, 2006.
2. Forrester Research cited by Paul R. Astiz. “IT Project Management Office.” PMI-SSC
presentation, October 12, 2005.
3. Jim Dickie and Barry Trailer. “On-Demand Versus On-Premise CRM: Are There Performance
Differences?” CSO Insights, 2006.
4. Dunleavy et al., 1998, cited in Michelle M. Sieber and Fui Hoon (Fiona) Nah. “A Recurring
Improvisational Methodology for Change Management in ERP Implementation.” Proceedings
of the Americas Conference on Information, 1999.
5. Margo Visitacion. “Project Management Best Practices: Key Processes and Common
Sense.” Giga Information Group, Inc., January 30, 2003.
6. M ike2Wiki. “Master Data Management Solution Offering.” mike2.openmethodology.org,
retrieved March 11, 2008.
7. Alex
 Berson and Larry Dubov. Master Data Management and Customer Data Integration
for the Global Enterprise. New York: McGraw-Hill, 2007.
Tim O’Sullivan is a vice president and partner at Hub Solution Designs, Inc., a consulting firm
that helps its clients to develop and execute high-impact master data management and data
governance strategies. He may be reached at tosullivan@hubdesigns.com.
 MDM Summit Fall 2008 returns to New York City …
here’s what our past attendees told us:

“ Great Networking!
Overall, a great
“ A fantastic conference experience!” “ This conference is a
on what is becoming James Cisler, great way to see what
the “next big thing” Manager, Master Data, Stryker vendors are doing.”
in IT 0

”
Robert Zegrac,
Mark Evans,
Senior CDI Consultant,
Group Manager, National City Experian

MDM Summit FALL 2008

OCTOBER 19-21, 2008
HILTON NEW YORK | NEW YORK, NY

“ This has been a very “ Great Conference! I

good conference for me enjoyed learning and
to get an understanding “Good Conference. networking with leading
of MDM/CDI, tools
and technologies
Lots of Information.
Deven Dhulia,
” vendors in this space. ”
TJ Adler,
available.
Carol Young,
” Solution Architect,
Hewlett-Packard
IT Account Manager, AAA of
Northern California
Business Data Architect,
Lexmark

SAVE THE DATE!

Network with Enterprise Architects, MDM Project Leaders, Data Stewards
and more at the largest gathering of MDM Professionals in the World!

Presented by:

For sponsorship and exhibit information, please contact Tony Carrini

at 212-803-8547 or anthony.carrini@sourcemedia.com

www.mdm-summit.com | 800.803.3424 | 212.803.6093

 The Intrinsic Value of
Master Data Management
By Lyndsay Wise

One of the goals of master

data management (MDM) is
to maintain a single access point to specified data sets
,
thereby creating a single view of information. Whether customers, products or other
entities, organizations may struggle to measure the actual benefits of consolidating and
centralizing data to have a single viewpoint of data. Beyond the ability to use a centralized
access point to gain a better perspective of what is going on in the organization,
organizations are always required to provide an account of the financial benefits of new
IT initiatives. Within MDM, business intelligence (BI), business process management
(BPM), etc., the immediate return on investment is not always seen. Unfortunately, some
organizations choose not to look beyond immediate financial gains when seeking to
implement new solutions or change the way they currently do business.
continued on page 10

8 A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions

MDM Milestones
At the spring 2008 MDM Summit in San Francisco sponsored by The MDM Institute and DM Review, Aaron
Zornes, founder and chief research officer of The MDM Institute, addressed the topic of “Milestones on the
MDM Roadmap” in his keynote based on research from his Global 1000 clients. Key findings include:

Top 5 Justifications for MDM Initiatives Strategic Planning Assumptions

1. Catalyzes market leadership and dominance.
2. Provides increased ROI by “leveraging and rationalizing
existing infrastructure.”
3. Significantly increases shareholder value.
4. Provides a disruptive technology for new business models.
5. Enables compliance and regulatory reporting.
Lessons Learned Q4 2007
• Promote MDM as essential business strategy with IT deliverables
to leverage high-value information used repeatedly across many
business processes.
• Position MDM as an enabler of key business activities such as
improving customer communication and reporting — rather than
as an important infrastructure upgrade.
• Begin MDM projects focused on either customer centricity or
product/service optimization.
• Plan for multientity MDM solutions evolving from “early adopter”
status into “competitive business strategy” during 2008-2009.
• Market maturation: By 2012, the market for enterprise MDM
solutions (software and services) as both strategic initiatives and to
refresh aging legacy MDM capabilities will exceed $3 billion (U.S.).
• Skills: Throughout 2009-10, skill shortages will greatly inflame
project costs as demand for data stewards, enterprise data
architects and individuals with data governance experience
outstrip market supply.
• Analytics: During 2008, the convergence of MDM and business
intelligence (BI) will accelerate as enterprises leverage MDM
concepts in a BI context. Additionally, by 2012, inline and real-
time analytics derived from MDM-enabled aggregation of both
transactional and historical data will have become a major
source of sustainable competitive differentiation for Global 5000
enterprises.
• MDM convergence: By 2012, enterprises without an overall
long-term MDM strategy run the ironic risk of building “MDM silos.”
• Bottom-line planning assumption: Invest in data governance and
architecture for long-term MDM sustainability and ROI.

Excerpted from “Milestones on the MDM Roadmap for 2008-09” by the MDM Institute.
 continued from page 8
The management of master data
touches more than just the information that
is maintained. By creating data repositories
that reflect business functions, organizations
can develop views of data that give users
access to the information required to do their jobs
effectively and efficiently.
To better understand the business benefits of
MDM, it is important to recognize an organization’s
general information infrastructure and how
silos of data have been formed within
organizations, creating a splintered
view of what is occurring within the
organization. Then it is possible to
understand the benefits of the creation
of a centralized repository of data –
regarding both the information accessed
and the business benefits that go beyond data.
Fractured Information Views
Due to the nature of information architecture and the development
of enterprise information systems, the general structure of data is
that it exists in silos across the organization. Before the concept
of centralized data stores, many systems were developed to meet
a business function without taking into account the big picture.
Consequently, with the addition of new systems, data storage
volumes and the number of transactions grow exponentially. This
means that in many organizations, several disparate systems
exist that contain similar information but don’t interact with other
relevant systems within the organization. In addition to this lack of
interaction, duplicate data may be processed in different systems,
creating duplicate work for end users and different data structures.
This adds to the difficulty of looking for and identifying like data
across the organization.
The bottom line is that each system only gives a fractured
view of what is occurring within the organization. For instance, a
customer relationship management (CRM) system may not have
all of the account information of their customers, from buying
habits and payment histories to product preferences. Different
bits of information that reside in disparate systems, when brought
together, create a full view of the customer. Add to this data quality
efforts to standardize data views and to create a consistent
view of data across the organization, and the beginnings of MDM
are created.
Although MDM solutions give organizations central access
points and a 360-degree view of data and entities, actual ROI is
not always easy to quantify. After all, quantifying better customer
service or identifying a decrease in product cycle times and tying
that to an MDM initiative may not be intuitive for organizations.
10 A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions
MDM Benefits Explored
There are many benefits for organizations choosing to implement
an MDM solution that result from creating a consolidated view of
data. To identify the ROI associated with MDM, some key benefits
should be highlighted that go beyond the consolidation of data
toward increasing efficiencies within organizations and lowering the
cost of doing business.
The most obvious benefit of customer data integration (CDI)/
MDM solutions is the creation of a single customer view. By creating
a centralized access point of contact to customer, product or other
forms of data, not only are organizations able to gain a better overall
view of business entities and what is occurring with accounts, but
also, data quality efforts become consistent. For organizations
trying to attain one view of entities, the ability to ensure data quality
throughout the organization means that consistency of business
rules, data cleansing and the standardization of business processes
will become an ingrained process within the overall environment.
Despite the fact that there is a constant focus on business
pains and a push to focus on business rather than data, an
organization’s healthy business environment depends upon the
data that supports it. Therefore, having strong data quality efforts
in place helps organizations maintain healthy information systems,
identify how systems across the organization interconnect and
enable better BPM. Although IT benefits are important, business
benefits are also relevant. Using customer data as an example,
end users can provide better service quicker, thereby increasing
customer retention and satisfaction.
Because of compliance and the need to maintain specific data
sets and output on a regular basis, MDM enables organizations to
manage the processes essential to meet compliance requirements.
This, in turn, translates into the ability to plan and budget more
efficiently. With a broader understanding of what is occurring within
the organization, financial processes can offer a more complete
view of the organization.
Finally, building an MDM solution enables organizations to
develop and maintain a strong data governance program. Because
all of the mechanisms have been put in place, data governance
becomes a natural extension of an MDM implementation.
Focusing on Value
Whether by focusing on business or IT, the values of MDM are
numerous. Actual implementation of an MDM solution is process
and resource intensive as well as continual based on the need
for constant data quality and business process improvements.
However, these efforts enable organizations to have a synchronized
and 360-degree view of the data that helps drive their business
success. •
Lyndsay Wise is an industry analyst for business intelligence. For more than seven years, she
has assisted clients in business systems analysis, software selection and implementation
of enterprise applications. Wise also conducts research of leading technologies, products
and vendors in business intelligence, marketing performance management master data
management and unstructured data.
The Need for Intelligent Data —
And How to Get It
Many critical company initiatives, such as top-100 customer programs, segmented marketing and
demand generation, customer-experience optimization, and supplier portfolio management, require
integrated, resolved, and optimized data sources to ensure decisions and actions are based on an
accurate picture of the business.
Today’s options for ensuring an accurate and
trusted view of data regarding customers, prospects,
suppliers, partners, and sales rely on some form
of data integration to optimize and link databases
from CRM, ERP,--data warehouses, customer support
and contact center systems, websites and other
disparate sources. Unfortunately, many of these
implementations have only an internal view of
information. They attempt to find the truth about
current conditions by consolidating and resolving
only the data already maintained by the company.
Every day, however, tens of millions of changes
take place within customer, prospect and supplier
organizations, and these changes are typically
invisible to the data integration effort, resulting in
highly incomplete and stale data. Even the largest
companies find that maintaining a continuously
accurate view of their data is a daunting task. Too
much is happening too fast, and they just don’t
have the systems and resources to keep up.
Fortunately, there’s a better way.
The First Step:
Aggressively Use Reference Data
Many leading corporations have taken a valuable
first step toward being able to maintain continuously
up-to-date and accurate data. They have chosen to
use a provider of external reference data, such as
D&B, to validate and correct their internal data. In
most cases, they periodically re-submit the data to
the external provider so new updates to the reference
information can be incorporated. This refresh also
ensures each entity is accurately identified and
the structural linkages to other entities, such as
subsidiaries and parents, are also accurate.
By treating reference data as a snapshot,
however, these companies typically rely on irregular,
point-in-time interaction with the external data, and
within days, the accuracy of their internal data —
and the value they gain from that accuracy — starts
to diminish.
A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions
The Second Step:
Make the Data and
the Technology Intelligent
In order to maintain continuously accurate data
that can confidently be relied upon to drive daily
business processes and decisions, organizations
must find a way to link their internal data sources
with their external reference data provider so they
can build a continuously updated set of master
records.
To do this requires a new, tight level of integration
between the internal data integration technology,
the external reference data, and the data
governance capability. Such an approach results
in consistently better identification of entities
and linkages, enables superior use of the data
for targeting programs, and makes it possible to
introduce capabilities for immediately informing the
business of any changes to key records, building far
more agility and responsiveness into the business.
The Third Step:
Take the Simpler Approach
If your approach has too many pieces, drains IT
resources, takes too long to implement, and pushes
out return on investment beyond the horizon, it will
be extremely difficult to fund, especially in today’s
uncertain economy. To get funding for a project
today, you must demand a simple, solutions-driven
approach based on the real-world business need
for the data.
At D&B, we believe that the simple approach
delivers more value faster. That’s why we’ve built
a pre-integrated layer between the reference data
and the data integration technology that makes
implementation easy and can begin delivering value
within a matter of weeks. Interested? Visit us at
www.purisma.com. •
11
Quick Win — Lasting Success
While MDM is viewed as a critical business imperative, providing short term business value is
something that has been difficult to nonexistent. Getting accurate, trustworthy data necessary to
drive high quality decisions and campaigns is compelling to business sponsors. Demonstrating that
high quality integrated information can be delivered in days from disparate, often duplicated data
does wonders in enhancing business sponsor “buy-in”. This is especially true in today’s business
climate, where the ability and desire to start a multi-million dollar, multi-year effort without a key
business driver is extraordinarily difficult. Showing early delivery of high quality, high impact data
is key to winning business support.

Overcoming Complex Data Challenges
The difficulty in showing “quick success” is that
the data and necessary business rules/logic are
very complex. Typically, the integration of data
and ensuring its’ fitness for business use consume
50-70% of project time and budget. Identifying and
resolving entity information relating to customers
and products is based upon extensive reference
data and knowledge bases that are not easily
replicated. The ability to understand “hidden”
information and relationships buried in data is a
daunting computational challenge.
In addition to correctly identifying information,
“fuzzy matching” of information within or across
sources is a very complex and difficult task. Matching
different sources- or even matching within a source-
is made difficult by inexact representations of the
same thing or similar representations of different
things. Normal database joins can’t overcome these
natural language variations. Having sophisticated
algorithms that overcome these problems, along
with other common errors like nicknames, alternate
firm names, different spellings, and data entry errors
is a key attribute of a reliable and extensible MDM
strategy.
Performance and accuracy of matching algorithms
is paramount- missed matches or false matches
create risk, miss potential value, and significantly
reduce the trust of business data owners. Matching
is one of the hardest yet most critical attributes
in creating “trusted” master data. Thus matching
accuracy and capabilities should be a critical
evaluation and selection criteria.
Functional Capabilities
In addition to entity identification and fuzzy
matching, there are a number of other key functions
that create greater business value with master
data. Providing a single integrated platform that
offers a graphical interface and “out of the box best
practice” project accelerators dramatically increases
staff productivity and ROI. Offering an interface that
supports the efforts of both business users (who
have unmatched domain expertise) and technical
users (who understand technology capabilities and
limitations) accelerates efforts toward information
sharing and collaboration.
Offering these sophisticated yet easily used
capabilities in a very high performance platform
ensures that current or future data volumes will not
overwhelm your MDM system. Technology that can
be deployed in batch mode for initial master data
“build” and then further deployed as a common
data service for universal access, extends value.
Accommodating customer information whether
B2B or B2C, as well as product information is
very useful. Properly handling address information
for correct billing or marketing efforts, as well as
geospatial information for tasks like tax or risk
assignment, or “find closest” applications, adds
further value to corporate data.
About DataLever
With an 80%+ win rate in competitive bakeoffs,
and performance up to 25X that of competitive
technology, DataLever is a leading provider of
business value focused MDM technology.
Companies with large data volumes and/or
complex business rules like AAA, AIG, Acxiom,
Equifax, Experian, the US Department of Veterans
Affairs, and Time Warner Cable rely on DataLever.
We provide a free data test/POC to show how
quickly the most accurate view of your data can
drive your success. •
www.datalever.com
mdm@datalever.com
703.956.6436

A Supplement to DM Review • Produced by SourceMedia’s Custom Media Solutions