how to manage systems integrators for your mdm programs

How to Avoid the SI ‘Money Pit’

Aaron ZornesChief Research Officer

The MDM Institute [email protected] +1 650.743.2278

mailto:[email protected]

© 2008 The MDM Institute The-MDM-Institute.com

Managing the SI Relationship

Determining the evaluation criteria for selecting SI partners for MDM projects

Identifying which SIs are market leaders in your industry & your chosen software technologies

Managing the SI relationship – esp. avoiding “brain drain” & inflationary “blended rates”

Preparing for talent shortages now is the savvy way to avoid the MDM "money pit" later


Why Focus on “SI” Cost Component?

MDM projects typically incur substantial amt of systems integration in first 12-24 months as businesses wire data sources into enterprise's data hub

MDM Institute research finds G5000 enterprise spends average of US$1.2 million for MDM software solutions - with addt’l investment of 4X in SI services

MDM is one of few remaining growth areas for both software vendors & systems integrators (SIs)

Recent buzz around MDM is rivaled only by intensity with which systems integrators have "found MDM religion"

Given substantial investment businesses undertake with SI partners, this must be scrutinized – not only in effort to

contain costs, but also to insure success of this vital infrastructure investment


Post "Phase Zero" Tasks

Determine the MDM product short list Perform gap analysis to determine which

software must be developed internally & which can be purchased

Identify a systems integrator (SI) consultancy partner

Plan for IT organizational change management Work with the business leadership to design &

refine "future state" business processes associated with new MDM commitments

After determining/aligning business strategy …


Areas Where SIs May Provide Value

Identify & prioritize business functional requirements

Recommend build vs. buy Provide a solution selection methodology that

balances business & technical requirements Develop detailed request for proposal (RFP) Evaluate & select the right MDM software

solution vendor(s)


Areas Where SI Provides Implementation Value

Pilot the MDM solution & application integration

Develop IT & business user communications in addition to training materials

Define & establish user job roles – e.g., MDM project leads, corporate/LOB data stewards

Define metrics for ROI or other measurements Structure change management & system

tuning strategies


“Top 5” Technical Evaluation Criteria for MDM Systems Integrators

#1 – Extensible Data Governance Methodology & Accelerators

#2 – Industry-Specific Data Model Experience & ETL Mappings

#3 – SOA Architecture Experience & Accelerators

#4 – MDM Product Experience

#5 – MDM Project Experience (industry, geography)

Partner's capabilities include their depth & available expertise


Understanding Your SI’s Business Model

Significant challenge for SI is to determine mega vendor &/or best-of-breed/vertical niche MDM software vendors with which to align

Each MDM vendor has Vertical industry – e.g., banking

or pharmaceutical Corporate horizontal functional

specialization – e.g., B2B hierarchy rationalization)

Mind share & brand recognition by virtue of early successes

Typical SI Team Drawn From Various Other Practice Teams

• Enterprise architecture planning, esp. SOA experts

• Enterprise data modeling

• Legacy app reengineering

• Data conversion & application migration

• Data quality

• EAI middleware & BPM experts.

• Analytics & ETL experts

• Testing & QA

• Systems infrastructure mgmt

• Performance engineering

• ROI & cost-model generation (business value articulation)


Data Governance Will Become Major Investment

Defining master data governance IT processes Establishing & training the data stewardship

function Designing future state business processes tied

to newly founded MDM commitments regarding customer data


How to Keep Staff from Being Shanghai’ed

Financial handcuffs Personal/corporate recognition Career tracks Contractual non-compete/”hands-off my

people”


MDM SI Round-Up

1. Accenture2. Adjoined3. Alliance Consulting4. Arhis5. ATG6. Atos Origin7. Back Office Associates8. BearingPoint9. BristleCone10. BusinessEdge Solutions11. Cambridge Technology Partners (Novell/CTP)12. Camelot – IDPro AG13. Capgemeni14. Caritor15. CGI-American Management Systems16. Cignex17. Cognizant18. Conversion Services Int’l19. CSC20. Deloitte Consulting21. Diamond Cluster22. EDS (Electronic Data Systems)23. Evaxyx24. Fair Isaac / Braun Consulting25. Fujitsu (formerly DMR)

26. Harte-Hanks Data Services27. Highpoint Solutions28. Hitachi Consulting29. HP/Knightsbridge30. IBM Global Business Services31. Infogain32. Infosys33. Lockheed Grumman34. Marks Baughan & Co35. Merckle36. Ness Technologies37. Patni 38. Perot Systems39. Project Performance

Corporation40. SAIC 41. Satyam42. SBS (Siemens Business

Services)43. Sierra Atlantic44. Sogeti45. Synergic Partners46. Tata47. TechnoLogix48. Unisys49. VIP Systems50. Wipro


Field Report: Major SIs

Accenture AIMS Atos Origin Cognizant CSC Deloitte EMC /BusinessEdge

HP/Knightsbridge /EDS

IBM GBS Oracle Pro Svcs Tata Wipro


Field Report: CDI, MDM & DG Specialists

Arhis Attevo Baseline Consulting Back Office

Associates Caritor Consology Diamond Mgmt &

Technology Consultants

Epsilon HCL HighPoint Systems

Infosys LumenData Project Performance

Corporation NorthGate Sierra Atlantic Sogeti Technologix Technology

Solutions Company Unisys


Field Report: Major SIs with Minor Practices

BearingPoint Capgemini CGI-American

Management Systems

Fair Isaac / Braun Consulting

Fujitsu (Born, DMR)

Hitachi Consulting Lockheed Grumman Perot Systems PwC

SAIC Satyam SBS (Siemens Business

Services)


Three Key Business Factors

Status of current incumbent relationships at the executive level

Status of current contracts, and pending contract negotiations (for other projects)

Business size, partnership direction, and ongoing viability of the SI/consultancy

Your organization’s weightings may vary …


Bottom Line: Avoiding the SI Money Pit

SIs are often necessary to sell C-level execs Without C-level support, BUs will find it difficult

to contribute funding & resources necessary to launch an MDM initiative – resulting in status quo with each business unit continuing to address issue at division-level (if at all)


Bottom Line: Avoiding the MDM SI Money Pit

SIs are needed to coordinate IT & Business Readiness & maturity Plan for IT organizational change management

to support MDM efforts Work with business leadership to design &

refine the “future state” business processes associated with new MDM commitments



SIs are needed to help transform IT organizations To a greater degree than traditional application

development initiatives, organizational readiness & acceptance has huge impact on both success & sustainability of MDM initiative



After initial development of a MDM system, SIs can help IT & Bus by facilitating: Ongoing participation in development of

business rules & resolution of master data match/merge issues

Ongoing commitment to update both applications & business processes to leverage core data stored in master data hub


Rx for SI Management Strategies

Acknowledge that SIs are essential to success of majority of MDM projects

Recognize that incumbent SIs are no longer so

Identify which SIs are market leaders in your industry & your chosen software technologies

Proactively manage key IT positions

Leverage SIs for their “value add”Given substantial investment businesses undertake with SI partners,

this area must be given scrutiny – not only to contain costs, but to insure success of this vital infrastructure investment


How to Leverage the MDM Institute

Kick start the “MDM evaluation process” Attend public workshop Bring workshop on-site

Fine tune in-process MDM strategies Due diligence on reference checking & contract details

Stay ahead of curve via MDM Business Council Re-qualify every 6 months via survey Receive MDM Alerts & access to Web-hosted research

Increase your knowledge & negotiatingstrengths via MDM Advisory Council Membership

Participate in monthly email surveys & receive updated industry scorecard Receive unlimited MDM, CDI, & data governance consultation via telephone

“Independent, Authoritative, & Relevant”


Authoritative

Relevant

Independent

Aaron ZornesFounder & Chief Research

OfficerThe MDM Institute

The-MDM-Institute.com a.k.a. www.tcdii.com


About the MDM Institute Founded in 2004 to focus on

MDM business drivers & technology challenges

MDM Advisory Council™ of fifty Global 5000 IT organizations with unlimited advice to key individuals, e.g. CTOs, CIOs, data architects

MDM Business Council™ website access & email support to 8,500+ members

MDM Road Map & Milestones™ annual strategic planning assumptions

MDM Alert™ bi-weekly newsletter

MDM Market Pulse™ monthly surveys

MDM Fast Track™ one-day public & onsite workshop rotating quarterly through major North American, European, & Asia-Pacific metro areas

MDM SUMMIT™ annual conferences in NYC, San Francisco, London, Frankfurt, Sydney, Madrid

“Independent, Authoritative, & Relevant”

About Aaron Zornes Most quoted industry analyst authority on topics of MDM & CDI

Founder & Chief Research Officer of the MDM Institute Conference chairman for DM Review’s MDM SUMMIT conference series

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 writing

Fifty 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• MCI• McKesson• Medtronic• Microsoft• Motorola• National Australia Bank• Nationwide Insurance• Norwegian Cruise Lines• Novartis• Roche Labs • Rogers Communications• Scholastic• SunTrust• Sutter Health• Westpac• Weyerhaeuser