rdm field reports aaron zornes (new york city - october 2013) v4 print

Product Evaluation Criteria & Field Reports for theLeading RDM Solutions

8th Annual MDM & Data Governance Summit New York City

October 20-22, 2013

Aaron ZornesChief Research Officer

The MDM Institute [email protected]

www.linkedin.com/in/aaronzornes @azornes

+1 650.743.2278

MDM Working Definitions

Master Data Management (MDM) Master Data Management (MDM)

Authoritative, reliable foundation for data used across many applications & constituencies with goal to provide single view of truth

no matter where it lies.

CDI is mandatory first step for most organizations on journey to MDM

Product Information Mgmt (PIM)

Product Information Mgmt (PIM)

Processes & technologies for recognizing PRODUCT,

SUPPLIER, & PRICING master data

Customer Data Integration (CDI)

Customer Data Integration (CDI)

Processes & technologies for recognizing a customer & its

relationships at any touch-point while aggregating, managing &

harmonizing accurate, up-to-date knowledge about that customer to

deliver it ‘just in time’ in an actionable form to touch-points.

© 2013 The MDM Institute www.the-MDM-Institute.com

MDM Working Definitions - continued

Multi-Entity Master Data Management (MDM)Multi-Entity Master Data Management (MDM)

An MDM solution to concurrently manage multiple, diverse master data domains

(customers, accounts, products) across intra- and extra-enterprise business processes

Master Reference Data Management (RDM) Master Reference Data Management (RDM)

Non-volatile reference data shared across the enterprise in context within applications (&

possibly within the industry via “exchanges”); examples: units of measure; currency rates;

calendars; other look-up tables

Large enterprises assume MDM = multi-entity MDM when evaluating software; RDM remains a key variable among the vendors as few

vendors are enabled (yet)© 2013 The MDM Institute www.the-MDM-Institute.com

What is Reference Data?

Reference data =“coded, semantically stable, relatively static data sets shared by multiple constituencies”

(people, systems, & other master data domains)

Customers

Product

Industry

Sales Person

Geo

Cost / Revenue Acct

Business Unit ID

© 2013 The MDM Institute www.The-MDM-Institute.com

In the logical view, private & public forms of reference data connect domains & application; consistent values

(& semantics) required for multi-domain views & hierarchies

Errors in reference data will ripple outwards affecting quality of master data in each domain, which in turn affects quality in all dependent transactional systems

RDM needed in both operational & analytical MDM use cases where capability often used to provide attributes, hierarchies & KPIs


Why Reference Data? Why Now?

Central role of reference data means RDM becoming“starting point” for many organizations planning MDM & MDG

SystemicFailure

Inconsistent

ReportingTransactionFailure

Regulatory Non-compliance

RDM Prologue

In addition to MDM functionality, RDM systems also manage complex mappings btw different reference data representations & different data domains across the enterprise

Manual or custom RDM often lack change management, audit controls, & granular security/permissions

Because reference data is used to drive key business processes &application logic, errors in reference data can have a major negative & multiplicative business impact

Mismatches in reference data impact on data quality affect the integrity of BI reports and also are a common source of application integration failure


Just as businesses no longer build own CRM, ERP, &MDM systems, so too are organizations beginning to acquire commercial RDM, which can be easily

tailored or configured & have full ongoing support of major software vendor

Reference Data Categories

Multi-Domain RDM Use Cases

Real-Time / Transactional RDM Use

Cases

Public(External)

Countries & Subdivisions (FIPS10)

Currencies (ISO 4217)Time Zones (ISO 8601)

Industry Classification (NAICS, ISIC)

Security PricesSWIFT BIC Codes (Payments)ICD-9/10 Codes (Healthcare)

ACORD/ISO Codes (Insurance)

Private(Internal)

Legal Entities Chart of Accounts

OrganizationsEmployees

(i.e., much of HR & Finance Data)

Reference data required for transaction processing


Semi-Private? (Shared)

Customized Public Reference Standards (e.g. customized D&B)

Shared Private Data (Finance)

Why Manage Reference Data Independently? (“Hub of hubs”? Federated vs. Centralized?)

Customers

Product

Industry(NAICS, ISIC)

Sales Person

Geo(ISO3166,

FIPS)

Cost / Revenue

Acct

Business Unit ID


Geo

Geo

In the logical model, reference data connects domains & applications; in implementations local copies exist for each consumer; challenges include: governance, synchronizing,

versioning, & custom hierarchies/internationalizations

ERP

Finance HRBI/Analytics

Geo

Geo

Geo

Geo

Critique of Current Approaches for Multi-Domain Reference Data

RDM Solution Drawback Recommendation

Custom-built, manual solutions

Heavy TCO burden Avoid unless reference data demands are truly unique

Spreadsheets Difficult to govern, secure, version, & audit; no modeling, poor hierarchy management

Distribute data in spreadsheets; govern data in RDM solution

Repurpose hierarchy management solution (MSFT MDS, ORCL DRM)

Poor cross-domain support, no classification mapping, few enterprise integration options

Seek out multi-domain RDM solution with hierarchy management

Customize existing domain-specific MDM (Customer or Product)

Rudimentary data modeling, lifecycle mgmt capabilities, & governance features (esp. authoring & workflow)

Use multi-domain RDM solution to maintain connections & govern/update into CDI & PIM via data services

ERP / Enterprise Application

Limited governance, versioning, distribution; also reference data customized use in app may have limited appeal in other systems

Master in external platform. RDM can be used to govern baseline set, versions and adaptations

Real-time / industry-specific RDM

Premium priced R/T RDM solutions do not represent good economic sense

Leverage R/T RDM solutions for R/T use cases (trading, claims processing, payments)


“Top 10” RDM Technical Evaluation Criteria

1. Administration of diverse reference data types2. Ability to map reference data3. Management of reference data sets4. Architecture/performance5. Hierarchy management over

reference data sets6. Connectivity/integration7. Import & export 8. Versioning support9. Security & access control10. E2E lifecycle management


Coming to market are RDM solutions characterized by multiple, diverse levels of integration w/ market-dominant MDM hubs as well as repackagings of existing mid-market

MDM solutions – HOW TO EVALUATE?

“Administration of Diverse Reference Data Types”


From R. Thompson,/Credit Suisse, “Multidomain Enterprise Reference Data,” 7th Annual MDM & Data Governance Summit New York 2013

Private Ref Data

Public Ref Data

RDM solution should support a wide mix of data structures from name:value pairs to hierarchies (see criteria #5).

RDM Top 10 Eval Criteria

#1

FINANCELOCATIONS

“Ability to Map Reference Data” – pt. 1 (cross-domain mapping)

Issuing Country (ISO3166)

Name ISO 4217Code

USA US Dollar USD

CHNYuan Renminbi CNY

JPNJapanese Yen JPY

Official Currency

ISO3166

USD ASMUSD IOTUSD ECUUSD SLVUSD GUMUSD HTIUSD MHLUSD FSMUSD MNPUSD PLWUSD PANUSD PRIUSD TLSUSD TCAUSD USAUSD VIRCNY CHNJPY JPN

ISO 3166Code

Name

USA United States of AmericaCHN People’s Republic of ChinaJPN JapanASM American SamoaIOT British India Ocean Terr.ECU EcuadorSLV El SalvadorGUM GuamHTI HaitiMHL Marshall IslandsFSM MicronesiaMNP Northern Mariana IslandsPLW PalauPAN PanamaPRI Puerto RicoTLS East TimorTCA Turks and Caicos IslandsVIR Virgin Islands

RDM solutions need to preserve values & mappings between reference data sets – both in domain and across domains.


#2


LO

CA

TIO

N &

FIN

AN

CE

2013 VERSION2007 VERSION

“Ability to Map Reference Data” – pt. 2 (temporal referential integrity)

2013 NAICS

Description

311224 Soybean and Other Oilseed Processing

221114 Solar Electric Power Generation

221115 Wind Electric Power Generation

221116 Geothermal Electric Power Generation

221117 Biomass Electric Power Generation

221118 Other Electric Power Generation

2007 NAICS

Description

311222 Soybean Processing311223 Other Oilseed

Processing221119 Other Electric Power

Generation - solar electric power generation

RDM solution needs to maintain links between versions, creating a migration path between versions of reference data. “Crosswalks”

are important for understanding how something changed.

MERGE

SPLIT


#2


RACI Tasks User

RUpdate sales hierarchies Rogers

RChange industry classifications Romanova

AApprove hierarchies and effective dates Stark

AApprove industry classifications Banner

A Approve merge into effective dated

Fury

“Mgmt of Reference Data Sets” (Governance workflows)



#3

An RDM solution needs to support governance workflows; includes defining: responsible & accountable parties (including systems), permissions & area of responsibility for each party

(field, instance, container level), how parties interact/tasks, & auditing/history…

Accountable partie

s

Sequence of interactions

Permissions

Responsibilities

“Hierarchy Management Over Reference Data Sets”

RDM solution should harness relationships between reference data sets & existing party or thing data to create hierarchies

SIC Codes

Customer & SIC Code Mapping

ICD-10 Codes

Active Ingredients & ICD10 MappingActive Ingredients & Product Mapping

Viewing customers by industry classification

Viewing drugs by Active Ingredient interactions and ICD10 Codes


#5


“Versioning Support” (a.k.a. time travel)

Cost Centers(as-of 2013 Q2)

RDM solution needs versioning & “as of” / effective dating to support recall of reference data values, relationships or hierarchies.

(versioning has *major* implications for analytics/ BI!)

Cost Centers(Current)

Cost Centers(Effective 2013 Q1)


#8


Reference Data ManagementStrategic Planning Assumption

Through 2013, reference data will emerge as a key entry point for enterprises & in turn unduly influence choice of MDM for Customer, Product & other domains; large enterprises will continue to mandate that REFERENCE data be part of MDM platform's native entity types

During 2013-14, MDM vendors will begin to market RDM to apply an MDM approach for centralized governance, stewardship & control; Sis will move into this market via OEMing of Informatica & IBM MDM into "securities master" mkt under pricing umbrella of GoldenSource

By 2015, pervasive, low cost RDM will be commoditized via the efforts of Ataccama, Microsoft & Oracle

MDM MILESTONE

Managing “simple” reference data will prove to be a key sales entry point for MDM vendors


Competition for Multi-Domain RDM

Custom-built, manual solutions Hierarchy management system adaptations

Do not readily support publish-subscribe, classification mapping, etc.

Custom MDM domain type Lack of data modeling flexibility, rudimentary lifecycle

management capabilities & limited data governance features, esp. authoring & workflow

Multi-domain RDM RDBMS vs. semantic/OODBMS

Purpose-built or industry-specific RDM Premium priced real-time RDM solutions do not

represent good economic sense


Seek out multi-domain RDM solution providers that understand & have experience addressing complexity of reference data

“Top 10” RDM Technical Evaluation Criteria

1. Administration of diverse reference data types2. Ability to map reference data3. Management of reference data sets4. Architecture/performance5. Hierarchy management over

reference data sets6. Connectivity/integration7. Import & export 8. Versioning support9. Security & access control10. E2E lifecycle management


Re-Cap

Reference Data Management Case Study: Mega Financial Svcs Provider - DnB NOR ASA

Need to manage reference data provided by external standard bodies

Reference data changes managed manually

No clear ownership of reference data across the business

Reference data must be entered, updated & managed in multiple places, yielding duplication & introducing errors

Manage & consolidate Reference Data for data warehouse load

Manage MDM code tables & map MDM codes to legacy systems codes

Publish reference data (changes) to consuming systems

Provide governance, process, security, audit control around reference data mastering

Apply commercial software (IBM RDM Hub Asset) rather than build RDM is major step in longer term transformation of the bank to

move from silo-driven business & IT culture to become “ONE – Group”

Business Issues Solution


Reference Data Management Case Study: Mega Financial Svcs Provider – BNP Paribas

Need to integrate reference data into the bank's service-oriented architecture (SOA) infrastructure

Lack of harmonization & propagation of reference data across the bank's groups (lines of businesses)

Need to streamline the Data Governance process via a cross-business governance (group-level)

Evolve MDM capabilities "Think big but start small"

orientation Provide a controlled perimeter for

master data & processes Centralize the data governance

function Create value at the MDM level (point

of truth = point of creation) Manage scope

Identify what’s in MDM and what’s not & what is RDM

Manage master data & processes independently without requiring strong coupling with the business

Keep unstructured or transactional data out of MDM scope

Apply commercial software (Orchestra Networks EBX) rather than build RDM is a key enabler of its MDM Shared Services Center COE

whose charter is to provide shared enterprise data services

Business Issues Solution


MDM Institute Field Reports – RDM

Aprimo LRDM (Teradata)

ASG ROCHADE (Metadata-driven RDM)

Ataccama RDM IBM RDM Hub Informatica RDM Kalido

Microsoft RDM (to be announced)

Oracle Hyperion DRM Orchestra EBX Profisee SAP MDG-R Software AG

WebMethods OneData

** General-purpose or multi-domain RDM, not industry-specific solutions such as capital markets, pharma, e.g., AIM, Asset Control, Eagle, Golden Source , Kingland Systems 360 Data, and RSD


Reference Data Management “Top 10” Technical Evaluation Criteria

1. Ability to map reference data2. Administration of reference

data types3. Management of reference

data sets4. Architecture5. Hierarchy management over

sets of reference data6. Connectivity7. Import and export 8. Versioning support9. Security & access control10. E2E lifecycle management

Understanding scope, diversity & limitations of nascent RDM offerings is challenging


Field Report: IBM MDM Reference Data Mgmt Hub

Strengths Purpose-built,

commercially proven RDM

Utilizes IBM MDM foundation

Full function with strong taxonomy support & mappings

Ease of deployment, implementation, & use

Market momentum1

Caveats Lack of BPM integration &

workflow (needs configurable workflow)

Lacks Cloud architecture & SaaS offering

Perception of excessive software stack foundation

Missing adapters for other IBM software (Discovery, etc.) & other major apps such as Oracle & SAP

1 – Achmea, ANZ Bank, BCBS of North Carolina, CIT, Citi Mortgage, DnB NOR ASA, IBM Office of the CIO, LabCorp, RBS Citizens, Standard Bank of South Africa and The CIT Group


Field Report: Orchestra Networks EBX5 for RDM

Strengths● Robust solution for centralized DG,

mgmt, stewardship & distribution of reference data

● Enterprise-scalable RDM1

● Strong taxonomy support, hierarchy mgmt & mappings (good for counterparty risk mgmt)

● Model-driven ease of deployment, implementation, & use (built-in process flows + semantic DB underpinning)

● Unique/built-in support for inter-temporal references, private reference data (esp. Fin, HR)

● Cloud based, SaaS option

Caveats● Nascent AP & LA presence● Growing (but small) # of

consultancies● New Business Glossary /

Information Gov (Q4)

● Vulnerability in rapidly evolving mkt crowded with mega vendors & nouveau MDM vendors

● Under invested in mktg

1- Citi, Credit Agricole, BNP Paribas, Credit Suisse, National Bank of Canada, McDermott International, Sabre, Michelin...


Field Report: Software AG webMethods OneData

Strengths Robust solution for centralized DG, mgmt,

stewardship, & distribution of enterprise reference data

Proven multi-domain RDM1

Deep cross-referencing/hierarchy capabilities w/impact analysis

Strong taxonomy support/ mappings for public & private reference data

Can ingest customer metadata models & UI wraps around model

Model-driven ease of deployment, implementation, & use (integration w/ BPM for SOA & MDM deployment)

Stable, deep pockets vendor 2

Caveats Nascent market

presence Shortage of

knowledgable consultancies

SaaS capabilities not marketed

Under invested in marketing

1 – Allianz, Avon Products, Chubb Insurance, General Electric, Givaudan, Nokia, Parexel, Pepsico, SwissGrid, Wellpoint, …

2 – 2012 est. revenue $1.2B, 5K employees, 70 countries


BOTTOM LINE

RDM is major IT initiative being undertaken by large # of market-leading global 5000 enterprises

Both as IT discipline & COTS software solution, RDM solutions are being brought to market at an increasing pace

Mega vendor MDM hubs (IBM, INFA, ORCL, SAP) Repackagings of existing mid-market MDM capabilities (MSFT RDM product for

MSFT MDS, ORCL DRM, etc.) Best of breed multi-domain RDM (Ataccama, Orchestra Networks, Profisee,

Software AG, …) Expect to pay between US$250K-US$1M for commercial solution

RDM is good entry-level project to show success for initial MDM investment which can be built on as a data governance model


Seek out multi-domain RDM solution providers that understand & have experience addressing complexity of reference data

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 New YorkMDM & Data Governance Summit New YorkSheraton Times Square ▪ October 20-22, 2013Sheraton Times Square ▪ October 20-22, 2013

MDM & Data Governance Summit SingaporeMDM & Data Governance Summit SingaporeMarina Bay Sands Resort ▪ October 31-November 1, 2013Marina Bay Sands Resort ▪ October 31-November 1, 2013

•• MDM & Data Governance Summit Shanghai 2014 MDM & Data Governance Summit Shanghai 2014 Shanghai International Convention Center ▪ Spring 2014Shanghai International Convention Center ▪ Spring 2014

•• MDM & Data Governance Summit Europe 2014 MDM & Data Governance Summit Europe 2014 Radisson Portman BLU - London ▪ May 19-21, 2014Radisson Portman BLU - London ▪ May 19-21, 2014

•• MDM & Data Governance Summit Asia-Pacific 2014 MDM & Data Governance Summit Asia-Pacific 2014 Doltone House, Darling Island Wharf – Sydney ▪ May 2014Doltone House, Darling Island Wharf – Sydney ▪ May 2014

•• MDM & Data Governance Summit Tokyo 2014 MDM & Data Governance Summit Tokyo 2014 Belle Salle Iidabashi First – Tokyo ▪ June 2014Belle Salle Iidabashi First – Tokyo ▪ June 2014

MDM & Data Governance Summit TorontoMDM & Data Governance Summit TorontoThe Carlu ▪ June 2014The Carlu ▪ June 2014

MDM & Data Governance Summit San FranciscoMDM & Data Governance Summit San FranciscoHyatt Fisherman’s Wharf– San Francisco ▪ July 2014Hyatt Fisherman’s Wharf– San Francisco ▪ July 2014


Authoritative

Relevant

Independent

Aaron ZornesFounder & Chief Research

Officer www.the-MDM-Institute.com

[email protected]/in/aaronzornes

+1 650.743.2278 @azornes


About the MDM Institute

Founded in 2004 to focus on MDM business drivers & technology challenges

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“Independent, Authoritative, & Relevant”© 2013 The MDM Institute www.The-MDM-Institute.com

About Aaron Zornes Most quoted industry analyst authority on topics of MDM, RDM & Data Governance

Founder & Chief Research Officer of the MDM Institute Conference chair for Information Mgmt’s MDM & Data Governance Summit

conferences 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

Advisor agrees to provide Institute’s consultants with advice & insight regarding the use of MDM software & related business processes at Advisor’s convenience

Advisor agrees to participate in at least one fifteen (15) minute survey teleconference call every sixty (60) days

Optionally, Advisor may respond to the bi-monthly survey request via email or Internet-based survey fulfillment

Results of such MDM market research surveys shall be aggregated by the Institute & made available to all Advisory Council members

In no case, shall any Advisor-specific survey information be made available to other parties unless Advisor has specifically agreed to the release of such information in writing150 organizations who receive unlimited MDM advice to key

individuals, e.g. CTOs, CIOs, & MDM project leads

Representative Members• 3M• Bell Canada• Caterpillar• Cisco Systems• Citizens Communications• COUNTRY Financials• Educational Testing Services• GE Healthcare• Honeywell• Information Handling Services• Intuit• JC Penney• McKesson• Medtronic• Microsoft• Motorola• National Australia Bank• Nationwide Insurance• Norwegian Cruise Lines• Novartis• Polycom• Roche Labs • Rogers Communications• Scholastic• SunTrust• Sutter Health• Visa• Westpac• Weyerhaeuser


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“Independent, Authoritative, & Relevant”© 2013 The MDM Institute www.the-MDM-Institute.com

rdm field reports aaron zornes (new york city - october 2013) v4 print

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