cdi-mdm summit new york – fall 2007agenda • tips and re-usable approaches culled from a major...
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CDI-MDM SummitNew York – Fall 2007
A Proven Multi-Track Approach to Cross-Business MDM Justification
John Butler, Sr Director
Agenda
• Tips and re-usable approaches culled from a major business transformation.
• Some technical references but most appropriate to individuals where a component of their job is aligning silos, winning buy-in or driving change.
• Reed Elsevier’s B2B information businesses face major challenges and change asin the move from print publishing to one of the largest digital media companies.
• Change on this scale requires action on multiple fronts. We’ll discuss proven techniques used by Reed and by best practice companies from various sectors.
• We’ll use a case study to bring to life the various approaches that work to reinforce each other including
• Rolling up requirements and building the ROI business case across departments or operating units using existing models
• The analytics dashboard vs mining transactional data• Benchmarking the business to acquire capabilities where critical gaps are found• Data auditing to validate assumptions before investing and measure impact • A way to keep executives connected to their market which in turn moves MDM up the
strategic priority list and sustains focus over the long-term on continuous improvement
Reed Elsevier
Reed Elsevier (pre-Harcourt sale)
• FTSE 100 company with 2006 revenues at £5.4 billion and 36,000 employees in more than 200 countries.
• Leading B2B digital media business that includes global market leaders: LexisNexis, Elsevier and Reed Business.
• Professional users in the legal, science, medical, business professional and education markets.
• More than 15,000 different magazines, books, CDs and online information solutions –40% online and accelerating.
From the 2006 Annual Report . . .
Transformational Challenges
• Product Innovation
• Customer workflows
• From print to online
• From information to solutions
• From local to global
Strategic Priorities
• Delivering authoritative content through leading brands
• Driving online solutions
• Improving cost efficiency
• Selective portfolio development
Change – how and how fast
Business process focusedProject / internally focusedProcess
Customer-centricProductCulture
Balanced measuresFinancialMeasures
Analytical (Summary)Transactional / OperationalInformation
FewerManyOrganization
Strategic MarketingSales-focusedCapabilities
Integrated / AnalyticsFragmented / missingInformation
Fix process & dataTechnologyInvestment
HorizontalCross-functional
VerticalCross-business
Change management
OpportunityWorks well where existentCommunications
CEOs & Customer ChampionsSalesLeadership
2007+2006200520042003
2003 to 2007 laying the groundwork
Customer focus in a product culture
• Benchmarking & assessments – by the numbers
• Customer First program – customer champions
• Showcase best practice – workshops/intranet
• Customer Information Leadership Forum
• CEO briefings – Customer measure (NPS)
• Horizontal & vertical – Cross-bsns AND cross-function
• Leadership in LOB programs – an example
Illustrative benchmark results
Return
Improving our capabilities
2003Today
Source: Stone and Starkey
80% ofthe payoff
1. Optimise customer journey2. Understand what drives
customer value3. Tackle major customer
issues
Typical current state
Investment in managing customers
Value of customers
Where many firms are now
Key accounts
Source: Paul Weston, QCi, WPP
“Vanilla” proposition
Target state – value-driven priorities
Retain &Develop
Investment in managing customers
Value of customers
Where many firms are now
Best-in-classCustomer Mgt
Revenue/profitOpportunitiesReduces costs
Efficiencies & cost reduction:
High cost-to-serve customers: drive online or send to competition, to drive up their costs.
Revenue/profit Opportunity:
Improve penetration, higher share of wallet
Key accounts
Rethink
Source: Adapted from Paul Weston
Customer model
Subscribers
Advertisers
Intermediaries
Organizations
Individuals
C. Circ
Exhibitors
Buyers
Influencers
Users
Source: QCi CMAT
Best Practice Center of Excellence
• Common language for sharing
• Framework for execution
• External best practice
• Assessments to inspire stretch, accelerate learning
• Action guide for making improvements
• Community of practice, eg info forum
• Contact list of expertise
• Exchange learnings & case studies
• Tackle common challenges
• Identify opportunities
• Standards & common definitions
• Networking via telemeetings & workshops
Learning from the Information Masters
CompetenciesPeopleProcessOrganizationalCulturalLeadershipInformationTechnology
Typical Spend ($)2%2%2%1%1%10%82%
Optimum Spend ($)20%15%10%20%10%15%10%
Small, short term gains Short and long term gains
Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years
Case Study – Analytics Program
Approach
1. Requirements against best practice checklist
2. Quantifiable cost/benefits using ROI model
3. Customer Information Plan – what’s needed
4. Organizational capability assessment
Outcome
• Execution plan for Customer Insight program
Analytics Requirements
Data Audit – De-risking assumptions
Linking up the multi-track findings
Customer Information Action Plan
Info from across the customer journey
• Staple yourself to an order
• What we put our customers through
• Easier to do business with
• Challenge is to collect cross-dept info
• Best practices
• Customer journey mapping vs internal focus
• Cross-dept information forum
Key Measures – the CEO dashboard
Analytics — the major dials
• Retention
• Acquisition
• Retention & Development
• Sales & Marketing Effectiveness
• Operational Efficiency
ROI model includes interdependencies
Example inputs . . .
• No. of customers
• Retention rate
• Acquisition rate
• Marketing & Sales spend
• Operational costs
• Assumptions
• Project Costs
Source: Iain Henderson, Information Answers
Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
Virtuous cycle of customer data
Customer identifiersTransactionsProductMarketing activityInteractionsetc
ExistenceCompletenessAccuracyUser confidenceRecencyComplianceetc
2. Content
3. Quality1. Usage
Building knowledgeand understandingBusiness andmarket planningOrganizing forcustomer contactDriving efficientand effectivecustomer contactactivity
Source: Murray & Henderson, Information Answers
Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
Analytic info vs transactional data
Years of History
Number of data fields
Number ofOperational Systems
OPERATIONAL
EDWEDW
SYSTEMS0
1
2
3
4
5
Source: Murray & Henderson, Information Answers
Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Sray & pray’ vs surgical strategic marketing
. . . so what do we do now?
Targeting broadly vs surgically . . .
Company Competition
Customer Base Customer BaseTop 10% Top 10%
Source: Information Masters by John McKean based on benchmark data from 35 companies over 7 years
Key learnings . . .
• Content, quality and usage of data
• Analytic summary info vs transactional data
• ‘Pray & spray’ vs surgical strategic marketing
. . . so what do we do now?
. . . Keep going!
• Continue data quality improvements
• Deploy NPS as catalyst for change
• Identify opportunities for leverage and develop more rigorous governance framework
• Real-time analytics for a digital media business
• and much more!
Net Promoter (NPS) as Lead Indicator
Q1: How likely to recommend?
Q2: What is the single most important reason for saying that?
• Actual score less important than the trend
• Net Promoter trend is predictive of future business performance*
ILLUSTRATIVE ONLYILLUSTRATIVE ONLY
*Source: Mulberry House Consulting, Bain
Enterprise Opportunities for Leverage
Customer-Product•Tasks•Leads•Opportunities•Products
Executives: ‘Do’ view• Transparent view – no chasing• Speed – real time & triggers• Directional – nimble
Drill down on•Retention rates•New customers•Penetration/SOW•Sales effectiveness
Sales: More effective faster• Clear priorities – no hiding• Useful tool – gets used• Customer-product views
Vision to RealityILLUSTRATIVE ONLY
ILLUSTRATIVE ONLY
Q&A
Contact: [email protected]