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

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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

17

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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D a t a G o v e r n a n c e

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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

24

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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Questions?

33

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