Top 7 Capabilities for Next-Gen Master Data Management
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The document discusses the top seven capabilities for next-generation master data management (MDM), highlighting the importance of cloud scalability, microservices architecture, graph technology, big data support, machine learning, action enablement, and information governance. It emphasizes the transition from 'system of record' to 'system of engagement' and outlines strategic planning for enterprises to leverage MDM for competitive differentiation. Moreover, it presents various use cases across industries, advocating for a modern data management approach to enhance business agility and customer experience.
Top 7 Capabilities for Next-Gen Master Data Management
- 1. TOP 7 CAPABILITIES FOR NEXT-GEN MDM DATAVERSITY WEBINAR Sponsored by RELTIO January 31, 2019 2 PM Eastern / 11 AM Pacific © 2019 The MDM Institute www.the-MDM-Institute.com
- 2. TOP 7 CAPABILITIES FOR NEXT-GEN MDM 1. Cloud scalability, flexibility & elasticity 2. Microservices architecture 3. Graph technology 4. Big Data support incl omnichannel interactions 5. ML/AI 6. Action enablement 7. Information governance & compliance (workflow + collaboration) All enterprises need to better focus on next-gen MDM requirements as we move from “system of record” to add “system of reference” & (ultimately) move into “system of engagement” Wherein relationship-driven analytics form the foundation of MDM-innate, data-driven & context-driven “cognitive” applications to fully enable the “digital enterprise”
- 3. CLOUD SCALABILITY, FLEXIBILITY & ELASTICITY • During 2019, Cloud MDM will continue to attract SMBs (+ increasingly large enterprises) to achieve MDM benefits • Such offerings will provide enticing entry point (opex vs. capex, cost effective POCs) + potential for infinite elasticity + federated architecture for geo-distributed orgs • Native Cloud MDM must keep advancing to meet mkt expectations while concurrently such solutions’ pricing models will stress mega software vendors’ EBITA • Thru 2020-21, integration of on- prem MDM with SaaS apps will arrive via SFDC, SAP BBD, et al, however, enterprises will wrestle w/ data integration issues between on- prem & Cloud; concurrently, cloud- native solutions must address privacy & security concerns • Enterprise reference data remains an exception; concurrently, MDM- enabled apps will migrate to public Cloud Cloud Economics –Compelling but challenging for customer & employee data – key sales enabler, but must deliver business value Strategic Planning Assumption
- 4. MICROSERVICES ARCHITECTURE • MDM microservices range from CRUD (create/read/update/delete) macro services all the way down to applets for DG consoles, identity resolution, etc. ; concurrently, such microservices also scale in size to BPM/RPA* objects such as app pkg raw functionality (order-to- cash) • During 2019, mega MDM vendors will increasingly build & market data-driven apps that compete directly with mega ERP & vertical industry app providers • Through 2019-20, SaaS vendors will struggle to provide integrated/native MDM • Select SaaS providers will finesse this issue via strategic partnerships & investments in MDM • Graph DB technology is one area of focus by all vendors to support the need for managing & analyzing increasingly complex relationships & hierarchies, in turn which will enable data-driven cognitive apps of all sizes & shapes • By 2021, the market for data-driven cognitive (MDM-innate) applications will exceed that for MDM platform software *BPM = Business Process Management RPA = Robotic Process Automation Microservices (“deconstructed MDM”) – De facto architecture for modern data management apps Strategic Planning Assumption
- 5. GRAPH TECHNOLOGY • Graph is conceptually threatening MDM due to ability to simplify complexity, but also augmenting MDM & DG via UI & Query • Simpler modeling of complex relationships yields more humanistic UI for all concerned ... model agility + extensibility enables users to easily & quickly add new data dimensions, hierarchies & linkages • Querying of analytics via graph tech also simplifies & turbocharges ability to query (& discover) relationships critical to “system of engagement” • Majority of purist graph-specific implementations are either (a) unable to transact for high volume scalability in operational mode or (b) primarily being used as adjuncts to operational mode/transactional MDM hubs to cross- walk/analyze across domains • As MDM evolves towards “master relationship management”, analytical upstarts from Graph world will increasingly add operational capabilities for performance & robustness Graph Technology – Providing “missing link” between domains + big data analytics + IoT Strategic Planning Assumption
- 6. BIG DATA SUPPORT -- INCLUDING OMNICHANNEL INTERACTIONS • During 2019, 360° view of “X” will take on new meaning due to “data blind spots” of traditional MDM; enterprises will realize need to reconcile social identity with corporate/household identity to provide authoritative master data to drive e-marketing & commerce within social networks • Thru 2019-20, next-gen MDM will address “sphere of influence” to incorporate both extended & non-obvious relationships to grow share of wallet from individual to exo-ego network as disruptive sales strategy (vs. ego- centric marketing);“system of engagement” will begin to surpass “system of record” for most industries and use cases • Through 2020, Big Data will continue to repatriate itself into MDM fabric as yet another source via registry overlays; mining of Big Data to populate Social MDM & perform entity matching on Big Data stores will help provision 360° view of entity from public, subscription & enterprise data • By 2021, mobile location-based services enhanced with location-specific customer info will raise ante for e-commerce within & outside major social networks Big Data – innately requires both MDM & DG to be effective & sustainable; Graph DB to enable supra layer onto multiple MDMs Strategic Planning Assumption
- 7. MACHINE LEARNING/ ARTIFICIAL INTELLIGENCEI • Not just raw data scalability, but also human process scalability is enabled by ML • ML will augment (more than replace) MDM+DG to provide increased agility & scalability • Areas where ML will be applied include: data discovery & mapping, entity resolution, relationship discovery & mapping, taxonomy & ontology; & governance & stewardship • Most of currently-marketed classic DG tools do not exist as integrated solutions & also are lagging in “ML-guided” stewardship Machine Learning – Scalability, complexity & agility are only certain of the problems increasingly being solved by machine learning (ML) Strategic Planning Assumption
- 8. ACTION ENABLEMENT • During 2019, MDM solution providers & BPM/RPA solution providers will moderately collide in market as former acquire or build out BPM-centric MDM; both camps will be challenged to unify domains as there exist different business processes for CDI & PIM • Again, Graph DB technology will be seen as the solution to domain cross- walks & rule/data integration/analytics • Thru 2019-20, however, BPM-centric MDM will continue to suffer from BPM’s traditional focus on modeling & not executing MDM rules, as well as BPM- centric vendors' ineffectiveness in marketing against MDM-centric vendors • By 2021, all mega MDM & BPM/RPA vendors will have overcome this dogmatic bias as enterprise workflow needs to execute within governance & vice versa be able to execute MDM workflows within BPM/RPA Action Enablement – From the enterprise perspective, a complete modern data management solution requires both Rules & Reference Data to be applied across domains Strategic Planning Assumption
- 9. INFORMATION GOVERNANCE & COMPLIANCE (WORKFLOW + COLLABORATION) • Through 2019, most enterprises will struggle with enterprise DG while they initially focus on customer, vendor, or product • Integrated enterprise-strength DG that includes E2E data lifecycle will remain elusive as most organizations turn to lightweight glossaries with modest Data Steward workflows to support devolved autonomy & multi-disciplinary, bi-modal teams • During 2019-20, the majority of MDM software & service providers will focus on productizing such lightweight DG frameworks while mega MDM software providers struggle to link governance process with process & data hub technologies Information Governance & Compliance – By 2021, mega vendor DG solutions will finally move from “passive/CSV-level" mode to “proactive/integrated" Data Governance mode Strategic Planning Assumption
- 10. ACTION PLAN FOR 2019-20 • Promote MDM as essential business strategy with IT deliverables to leverage high-value info used repeatedly across many business processes • Position MDM as enabler of key business activities such as improving customer communication & reporting – rather than an important infrastructure upgrade • Begin MDM projects focused on either customer-centricity or product/service optimization • Plan for next-gen MDM juggernaut evolving from “early adopter” into “competitive business strategy” while preparing for “Master Relationship Management” as digital transformation enabler • Insist on Enterprise MDM software capable of evolving to multiple usage styles & data domains Plan now to realize economic value & competitive differentiation via next-gen MDM during next 2-5 years © 2019 The MDM Institute www.the-MDM-Institute.com
- 11. FUTURE IS “NOW” All enterprises need to focus on next-gen MDM requirements as we move from “system of record” to add “system of reference” & (ultimately) move into “system of engagement” Relationship-driven analytics will form the foundation of MDM-innate, data-driven & context-driven “cognitive” applications to fully enable the “digital enterprise” BOTTOM LINE
- 12. MODERN DATA MANAGEMENT USE CASES Ajay Khanna | Vice President, Marketing, Reltio
- 13. CONFIDENTIAL AND PROPRIETARY / 2 BRINGING MODERN DATA TECHNOLOGIES TOGETHER A Modern Master Data Management Foundation Multi-model with Graph Analytics & Machine Learning Big Data Scale & Performance Data as a Service Workflow & Collaboration Data-driven Applications
- 14. CONFIDENTIAL AND PROPRIETARY / 3 IMPROVE RECOMMEND ALIGN & ANALYZE Combine profiles with interactions used for advanced analytics & machine learning ORGANIZE HOW A MODERN MDM PLATFORM WORKS RECOMMEND & AUGMENT Write-back aggregate profile attributes for operational context & segmentation REFINE Trusted Enrichment RECONCILE Smart Matching RELATE Relationship Graphs EVOLVE Integrate with existing Applications & Data Warehouses ALL TEAMS IT, sales, marketing, compliance see and collaborate on a single pool of data, with full audit and governance PRODUCT 360 SUPPLIER 360 CONSUMER 360 ASSET 360 ACCOUNT 360 VISUALIZE & COLLABORATE Personalized Views AGGREGATE Unlimited Attributes 1 2 34
- 15. CONFIDENTIAL AND PROPRIETARY / 4 People Organizations Products People Graph Master Data (Document) Interactions (via Flat files or APIs) Reference Data (Hierarchical) MULTI-MODEL DATA APPROACH
- 16. CONFIDENTIAL AND PROPRIETARY / 5 MANAGING COMPLEX RELATIONSHIPS & HIERARCHIES USE CASES: MANAGING COMPLEX RELATIONSHIPS & HIERARCHIES People Organizations Products Places Legal Hierarchies Custom Hierarchies Teams & Committees Affiliations & Relationships Product Risk Value Alignments ● Uncover relationships ● Improve profile matching ● Find influencers ● Recommend products ● Suggest DQ improvements
- 17. CONFIDENTIAL AND PROPRIETARY / 6 INFUSING INSIGHTS VIA MACHINE LEARNING Seamless MDM & Advanced Analytics Integration Closed-loop Data-driven Applications Shared Objects Profile & Omnichannel Transaction Data Reltio IQ Data Steward Data Scientist Business User
- 18. CONFIDENTIAL AND PROPRIETARY / 7 USE CASES: CONTEXTUAL, RELEVANT INSIGHTS People-Products-Places Relationships Next Best Action Business Data Quality (Score, Rank) Identify Data Issues
- 19. CONFIDENTIAL AND PROPRIETARY / 8 BRINGING ALL DATA TOGETHER
- 20. CONFIDENTIAL AND PROPRIETARY / 9 INCLUDING OMNICHANNEL TRANSACTIONS
- 21. CONFIDENTIAL AND PROPRIETARY / 10 USE CASE: TRUE CUSTOMER 360: ACTION ENABLEMENT Operational Analytical Profiles Recommendations Insights Preferences Relationships
- 22. CONFIDENTIAL AND PROPRIETARY / 11 GOVERNANCE & COMPLIANCE Data change requests (DCR), Match Review, Delete Requests Reltio Cloud Notify Submit request Approve/ reject Request more info
- 23. CONFIDENTIAL AND PROPRIETARY / 12 USE CASE: General Data Protection Regulation • Discover GDPR data – Data classification – Identification of GDPR attributes – Highlight potential GDPR data in free text – Relate to consent • Manage customer data – Lineage of customer data – Audit trail – Quickly assess impact of individual data requests • Manage customer Requests
- 24. CONFIDENTIAL AND PROPRIETARY / 13 EXAMPLE INDUSTRY USE CASES Life Sciences Reliable HCP (health care provider), HCO (health care organization) data. Improve sales effectiveness, time to new product launch & better account management. Uncover affiliations & relationships in real-time. Intelligent recommendations for sales reps. Product 360 with compliance. Patient Experience. Healthcare/ Insurance Customer/Patient-centricity and better service. Complete member 360° views with affiliations for payers and plans, retention effectiveness & understanding of consumer life cycle. Reliable physician directories for CMS compliance. Retail / CPG Digital transformation providing the optimal personalized omni-channel customer experience. Understand consumers’ needs throughout the journey. Householding, customer value, GDPR Financial/ Insurance Digital Transformation and customer experience. Leverage data to deliver the right experience, create customized products for consumers. Hi-tech Complete understanding of B2B accounts & account hierarchy for better sales effectiveness, including territory alignment, rep compensation. Supplier 360
- 25. CONFIDENTIAL AND PROPRIETARY / 14 LEADING DIGITAL ENTERPRISES ARE DATA DRIVEN Make data the heart of every decision Organize data of all types at unlimited scale Unify data sets to deliver personalized views Infuse analytics into every business process Continuously learn about customers, products & their relationships
- 26. CONFIDENTIAL AND PROPRIETARY / 15 CREATING MEASURABLE BUSINESS VALUE Increase business agility Enhance customer experience Improve ROI Lower operational costs Increase IT productivity Enhance sales productivity Decrease response times Avoid fines & penalties Increase customer confidence Reduce Compliance Risk Improve Operational Efficiency Gain Competitive Advantage