create a 'customer 360' with master data management for financial services
DESCRIPTION
TRANSCRIPT
Create a ‘Customer 360’ with MDM in Financial Services
February 26, 2013
About Perficient
Perficient is a leading information technology consulting firm serving clients
throughout North America.
We help clients implement business-driven technology solutions that integrate
business processes, improve worker productivity, increase customer loyalty and create
a more agile enterprise to better respond to new business opportunities.
What We Bring to Our Clients
Industry-leading solution & technology expertise
• ~2000 experienced colleagues• Dedicated solution practices• Partnerships and certifications in
premier technologies
Disciplined project execution• Highly experienced project managers• Perficient’s Enable™ methodology
based on best practices
Innovative approaches and IP • Perficient’s user-centered design
approach• Application migration methodology• Quick Start Rulebook™ for Enterprise
Integration
Collaborative Approach• Work with our clients, adapting to
their cultures• Education and mentoring services
Superior Service and Value• Local client service teams• Flexible resource and fee
arrangements• Delivery track record
Commitment and Quality Assurance
• Track record of 2000 engagements with 800+ clients
• ~85% of clients bring us back• Strong client references
Our Solutions Expertise
Business Solutions• Business Intelligence• Business Process Management• Customer Experience and CRM• Enterprise Performance Management• Enterprise Resource Planning• Experience Design (XD)• Management Consulting
Technology Solutions• Business Integration/SOA• Cloud Services• Commerce• Content Management• Custom Application Development• Education• Information Management• Mobile Platforms• Platform Integration• Portal & Social
Financial Services Expertise
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Our Speakers
Mike Panzarella, Director, Financial Services Practice
With 20 years of experience with Big Four consulting and commercial banking, Mike has expertise in BI/DW platform architectures for Fortune 100 financial service firms with a focus on social media and mobile convergence. Mike also has extensive experience in designing and implementing Big Data solutions for Fortune 100 companies.
Ben Leeson, Data Governance Architect
Ben has over 10 years of Governance and IT leadership experience with Fortune 50 Financial Services companies. Ben’s areas of focus are in Data Governance, Data Stewardship, Data Quality, Data Sourcing and Data Strategy. He has experience driving enterprise level data management programs that span each line of business and corporate banking functions.
What We Will Cover
A b o u t U s D e f i n i n g M D M
C h a l l e n g e s D a t a G o v e r n a n c e
L e v e r a g e I T I n v e s t m e n t s Q & A
2 0 1 3Tr e n d s
U n l o c k i n g B u s i n e s s Va l u e
M D M O v e r v i e w
What is Master Data Management?
Master Data Management (MDM)
comprises of a set of processes,
governance, policies, standards and
tools that consistently defines and
manages the master data of an
organization.
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• Disciplines, technologies, and processes that accommodate, control and manage master data across the organization
• A means to manage and deliver a unified view of an organization’s data
Master Data Management Needs Governance to Succeed
CustomerSupport
Sales
Claims
INFORMATION
Bill
35 West 15th Street
Toledo
Jones
OH / 12345
M
30
1/1/81
First:
Last:
Address:
City:
State/Zip:
Gender:
Age:
DOB:
CRM
B. Jones
Toledo, OH 12345
35 West 15th Street
Name:
Address:
Address:
ERP
William Jones
Toledo, OH 12345
35 West 15th St.
Name:
Address:
Address:
Legacy
Billie Jones
Toledo, OH 12345
36 West 15th St.
Name:
Address:
Address:
SOURCE SYSTEMS ENTERPRISEAPPLICATIONS
MASTER DATAMANAGEMENT
What is Master Data Management?
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Strategic Initiative•Consolidate data from silos/integrate new systems quickly•Meet demands of new business channels•Grow with the business•Identify key relationships and hierarchies
Revenue•Identify cross-sell, up-sell opportunities•Customize product offerings and bundles•Introduce new products quickly•Identify high-value customers•Improve customer retention
Cost•Automate manual business processes•Reduce data errors•Eliminate excess mailings•Identify credit risk•Support system consolidation initiatives
Compliance•Automate manual business processes•Reduce data errors•Eliminate excess mailings•Identify risk (credit)•Support system consolidation initiatives
MDM Business Drivers
I n d u s t r y Tr e n d s
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Employees and Customers
Corporate Data
Social Networks
Retail and Banking TransactionsEnd
Customers
Email, IM
Retail Stores
Banks
Applications
Trend: Gartner’s Nexus of Forces
The Nexus of Forces (mobility, social networks, information and cloud services) is accelerating the pace and granularity of interconnected markets at a faster rate than ever.
Source: Gartner (Jan. 2013)
Trend: Embracing Social
What is “Social MDM”?• Increased social awareness in banking• Need for social collaboration • Evolution of CRM system and use of sensor data• New systems of engagement = more data silos• Data quality is increasingly important• Pending regulatory standards (FFIEC)• Golden Record vs. Golden Profile
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Trend: Digital Disruption
• Investment in mobile innovations• Create a seamless customer cross-channel experience
• Validating data Geolocation data• Data quality known issue• Manage privacy issues• Compliance
“GoBank” mobile account from Green Dot
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Trend: The Big Data Ecosystem
• Better processing and management of Big Data
• Enhanced metadata and social analytic preprocessing
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Trend: MDM in the Cloud
• Proliferation of cloud based solutions
• New entrants into marketplace
• Value-added services and solutions for “social listening”
• Commoditization of data
• Data is data is data• Cost of pulling data in• Regulatory compliance standards
Trend: Creating a ‘Customer 360’ View
MDM Challenges
• Sponsorship at the enterprise level• Data hoarding & mistrust of data centralization• Addition of business process alignment• Continued customer data integration• Introduction of external/new data sources• SOA and SLO compliance• Scalability of architecture
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MDM Questions to Ask
Strategy
• What is the Data Strategy?• How does it support the business strategy?
Quality
• How is data utilized in the fulfillment of business processes?• Does poor data quality impact the company functions?• Is data cleansing simply assumed as part of doing business?
Value
• How can data better serve the business? (i.e. Analytics, Operations)
Resourc
es
• Does the company have the skills to fulfill the data strategy?
Funding
• Who is pushing funding for the data solution(s)?
Arch.
• What is the current and future architecture of the company?
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What is Enterprise Data?
Types of Enterprise Data
Transactional Data(Something happened)
Entity Data Master Data is a subset
(Something exists)
Analytical Data(data for enabling future action)
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What is Enterprise Data?
Data Providers
Data Consumers
Master Data
Data Quality
Enable Sharing
Govern the Data
Enrich
Deliver
Contribute
Update
Another View
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Business Perspective:data flow, data supply chain, data producer, data supplier, and business process
Technology Perspective:data lineage, metadata, system of record, source system, and integration
Sales
Ops
Support
Management
Data Environment Master Data Data Consumers
Audiences for MDM
MDM, especially the customer domain, requires business input. It’s important to know your audience when implementing a MDM solution.
The terms may change but the concepts are similar.
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Impacts of Changes to Data
Data Originator
Q
Data Consumer
H
(Upstream)
(Downstream)
Data lineage management enables systems to account for the downstream impacts of a change to the data.
The change can appear to be relatively benign like cleaning up data, to the more intentional like changing the context of a business element.
If Data Provider B changes the format of a data element the downstream systems need to be aware of the change and adjust their code to account for it. Data Provider B is responsible for communicating to their Data Consumers the changes.
Data Provider
B
Transformations to fit the schema of the new
system: e.g. changing the format of date
Data profiling & data cleansing – now a hop or more removed from the source: telephone
game
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Peop
le &
Pro
cess
Tech
nolo
gy
Develop the Analyst Community: Who are they? What are their Requirements?Share ideas, best practices, common resources, communication channels
Stand up a Governance Structure:Executive Support and SME Participation
Create & maintain routines, policies, standards, review processes (exceptions), and communications
Project Delivery Process:Gather data requirements early in the process
Define Data Governance Roles and Responsibilities:Data management executive, data stewards, data custodians, information architects, analysts, SAs, and more
Establish Master Data and Data Provisioning Management:Determine authoritative data sources are and the process for attaining data from them
Identify Associated Business Processes
Data Integration/Movement
Metadata Management
Data Quality Management
Technical & Operational Metadata
Data Quality Standards &
Measures
Data management tools are unified and the platform is maximized
Standardize the Common Business Language: Business glossary, information domains, conceptual data
models
Data Governance Focus Areas
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Data Governance Administrator(Formal Oversight)
Data Steward(Business Requirements)
Data Custodian(Technical Requirements)
DirectionScopePrioritizationGovernance StructureOrganizational AlignmentPolicy DefinitionIssue ResolutionRoles and ResponsibilitiesAuthority and AccountabilityFundingEducationCommunication
Business StrategyBusiness TermsData StandardsBusiness RulesBusiness ProcessSubjective Data QualityData AnalyticsIdentify OpportunitiesIdentify Risk
Data IntegrationObjective Data QualityData ModelingMetadata ManagementData LineageWork Flow ManagementData Security
To weave sustainable data governance into the fabric of the company, executive level participation must occur in the administrative component
Manage the DataEnable Data Management
Data Governance Primary Roles
U n l o c k i n g B u s i n e s s V a l u e
Enterprise Risk Management
Alignment of Risk Model:
• Reputational
• Operational
• Regulatory & Compliance
Solution Architecture
Data Warehouse/Data Mart
ETL/ELT
ESB
Business Applications
SocialFiles
Mobile Web CRM
Legacy
SystemsEDW
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The “Golden Social Profile”
MDM Hub
Social Profiles
Bank Source Systems
Targeted Marketing
Customer Service/LOB
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Come See Us at Bank Innovation!
Perficient.com/BankInnovation
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