Right side – graphic of business case – use generic bar graph, etc if you don’t have anything specific – we should all use the same graphic
Left side
Describe the key areas of business value creation
Value proposition points
The business driver span four key areas: revenue growth, cost efficiency, agility, and regulatory compliance or risk management.
I’ll pause here for a moment and let you read the slide.
The best way to understand these are to explore some customer examples.
Revenue Growth as a Business Driver
If we take a look at increasing revenue as a key business driver for implementing MDM, we recognize how a trusted, single view of master data can help enable cross-sell and up-sell opportunities. For example, companies can enhance lead-passing capabilities across channels and lines of business through a single view of customers and products they purchase. As points of contact and the channels used to reach customers expand and change, organizations need to be able adapt to ensure that they’re providing customers with the best possible experience. This means consistent information and messages across channels from the web to mobile, call centers and storefronts. When companies add or expand channels, they need to ensure that they can identify their most valuable customers and provide customized offers and experiences to all customers based on their preferences, demographics or purchase history.
MDM can drive significant revenue and competitive advantage by getting new products and services to market quicker. And, by having better, cleaner, more accurate and complete data about customers, organizations can identify high value customers to ensure reduced churn and identify more opportunities for increased revenue from those high value customers by ensuring high levels of customer service across all channels. These high value customers, and really all customers, can be consistently recognized across channels through access to a single, 360 degree view. MDM enables organizations to easily understand households, and identify relationships between customers and hierarchies, which makes it easier to identify which individual customers are the most valuable.
IBM Customer Example: A leading telecommunications firm leveraged MDM to increase revenue by getting products to market faster than competitors. Revenue increases over $10M if time to market is reduced by 2 weeks.
IBM Customer Example: A leading high tech software manufacturer increased customer retention, dropped customer churn by 5% and increase cross-sell, up-sell revenue by 10%
Cost Efficiency as a Business Driver
Cost is a key business driver for MDM – what company doesn’t want to do more with less, make more money with less cost, or service their customers with less expense? MDM can automate business processes such as customer or supplier on boarding, new product introduction or address standardization. This reduction in manual processes dramatically reduces data errors which can be extremely costly. One perfect example is around customer mailings. Each of has experienced a situation where we received multiple catalogs or credit card applications from the same company day after day, or sometimes on the same day. Likewise, we may receive multiple mailings to a single household. MDM allows companies to recognize who their customers are, who they are related to, and who they may share an address with and then apply targeted mailing strategies based on that trusted information – dramatically reducing mailing costs and actually increasing brand image and customer service.
Another area where costs can be avoided is mergers and acquisitions. The challenge is how to ensure the process of assimilating a new organization is as efficient as possible. Not only do operations groups across companies need to be combined or streamlined, but legacy information systems from the acquired company must be integrated and data aggregated, analyzed and rationalized so that they can leveraged by all systems and operating units across the enterprise to better business decisions.
MDM can streamline the process of onboarding new customers, products and suppliers into the systems already deployed by the acquiring company. The process, which can be seamless across heterogeneous technologies with MDM, enables rapid integration without a lot of expense and customization. The result is that customers and suppliers receive great customer service and support and products and services can be delivered efficiently by the newly combined organization
IBM Customer Example: A leading manufacturer of electronic goods reduced the time for creating and maintaining product information by up to 50%. It saves €2 million per year due to reducing data entry errors from 5% to 0.1%.
IBM Customer Example: A leading bank used MDM to prevent duplicate customer records. They identified a 10% duplication rate in client data and reduced it to <1%, realizing annual costs savings in the millions.
Agility as a Business Driver
Being agile with IT systems enables organizations to meet demands of new business channels – such as reacting to changing consumer preferences and ways of interacting. For example, who could have imagined 20 years ago that we could be checking our bank statements or checking into a flight via a smart phone. Banks, retailers and even government agencies need to react to changing times and communicate with their customers in many ways. In addition, being able to leverage IT systems to identify key relationships and hierarchies among an organization’s customers and product catalogs can affect business. MDM can enable a 360 view of customers and products so that key relationships can be understood and then business decisions and processes driven off that key information.
Although business growth is a fairly common goal, when it happens rapidly it can significantly impact an organization’s information infrastructure and its employees. Not only does rapid growth usually create large amounts of new data and increasing data volumes that can be difficult to manage, it often results in organizations introducing new manual processes to attempt to accommodate for their increasing data needs.
MDM can help companies eliminate or prevent manual processes, while efficiently managing growing data volumes, decreasing duplicate, incomplete or inaccurate data, and making it easy to scale or add new systems as needed to accommodate growth. MDM enables organizations to get new systems online quickly because they can already access accurate and complete data from the single location where it resides, and there is no need to build new interfaces to acquire or cleanse data. MDM also provides organizations with valuable insight into why they are growing rapidly, whom their most important new customers are, and what products are delivering the greatest value. Organizations can leverage this information to continue to grow even more and are able to focus their limited resources on the highest profitability areas of the company.
IBM Customer Example: A leading insurance company shifted from policy-centric systems to a customer-centric strategy. They have realized faster time to market with new services and offerings due to real-time availability of key data.
IBM Customer Example: A leading health insurance organization enabled provider self-service for checking status of claims and provided additional value with strategicanalytical reports.
Regulatory Compliance as a Business Driver
All businesses have to comply with some level of internal security policies, customer privacy preferences and government regulations. These requirements also change and evolve as organizations add new internal processes or new laws require action. For example, all publicly traded companies are now required to comply with Sarbanes Oxley, organizations that handle any patient health records are bound by the Health Information Privacy and Accountability Act (HIPAA), financial institutions are regulated by Graham Leach Bliley (GLB), and many organizations are required to monitor the Office of Foreign Asset Control (OFAC) watch list. These are just a few of the regulations impacting enterprises today. In addition, data and IT security policies and customer privacy preferences that are usually driven either by state laws or internal customer service initiatives also need to be audited and upheld, which creates a lot of additional work for most enterprises.
MDM can help companies meet these requirements by making it easy to add need source systems or data types or build new custom domains to comply with increasing demands. For example, the OFAC watch list, or any other new external data source, could be added, new data fields could be added to customer information to indicate whether someone had opted in or out for GLB compliance or to support customer privacy preferences, or a new domain could be added to provide access to information in a newly required code table. [NOTE: I suggest that information be added here about tracking access to records and creating audit trails that ensure compliance and protect privacy and security
IBM Customer Example: A leading high tech software manufacturer used MDM to create a single point of management for a global customer reference system. They recognized a 300% increase in customer privacy compliance across the entire organization
When I think of master data and master data management, my elevator pitch is this.
There is a problem in the industry today…today’s organizations are process driven and many of the most critical business processes depend on high quality data – customer data, product data, location data – and relationships inherent in the data. It is usually these critical data assets that are the most central to running business. We call these critical data assets – Master Data. But the data these processes rely on are often of very poor quality – inaccurate, incomplete, missing or duplicated – and thus the business processes that depend on those data can be inefficient, ineffective, and costly or increase business risk. In addition, the data are dispersed amongst many non-integrated and siloed information repositories. And data volumes continue to grow exponentially compounding the problem over time.
You will notice that Master Data is the high-value, core information used to support critical business processes across the enterprise. It is at the heart of every business transaction, application, report and decision. Thus, MDM, is a discussion of those business processes and key to your selling MDM to the business.
Instead of talking about speeds and feeds, you will want to engage business people in a discussion about the effectiveness of key processes and explore that with your prospects:
Financial Services – regulatory compliance, marketing new products to existing customers
Insurance – policy management; claims processing
Retail – Direct marketing processes as retailers continue to spend exorbitant amounts of money in this area; customer loyalty programs and processes
Communications – provisioning and billing, churn
Public Sector – citizen benefits processes, or information sharing around persons of interest
Hospitality – reservations, ticketing, check-in. Also loyalty management and privacy management
Automotive – vehicle tracking, loans processing
Healthcare – patient registration is a classic example, especially across multiple clinics, hospitals, labs
Sales & Relationship Management
KYC/Account Opening
New business quotation and processing for organization plan sponsor customers
Customer-centric new business processing & “Once and Done” servicing
Customer-centric policy underwriting & new business processing
Claims Processing
Product & Marketing Management
Reduced buyers remorse and abandoned on-line applications
Customer and Agent consolidation for cross-sell and multi-policy discount
Regulatory & Compliance
Increase revenue- Identify cross-sell/up-sell/product bundle opportunities by managing customer preferences, relationships, demographics, order history- Introduce new products quicker creating competitive advantage by being fast to market
Improve customer service and retention- Identify and retain valuable customers; reduce churn- Enable personalized service across multiple channels- Maintain loyalty program with real-time event notification
Achieve operational efficiencies/reduce costs- Reduction in errors in customer mailings- Customer and household level order data- Manage inventory carrying costs based on more accurate order information
Improve credit management- Understand customer risk profile to improve in-house credit card programs and financing options- Provide credit risk information to all channels- Combine order and return history information with customer credit profile for great insight and decision making
Achieve compliance
Campaign & advertising optimization
Customer self service
New customer acquisition
Customer experience (loyalty) mgmt
Bandwidth planning & optimization
New product introduction
Product lifecycle management
Order configuration & management
Service activation
Billing & Charging
Simplify process for managing product/service modeling information
Reduce time and cost for product/service and pricing updates
Improve data accuracy and process control
Workflow to enable and enforce automated process’
Simplified access to cross line of business product/service information
Enable service agents to promote relevant cross-sell offers in real time
Optimize the effectiveness of marketing campaigns, with promotions geared towards household members’ interests
Provide accurate, consolidated account information to customers, enabling convenient self-service at lower costs
Accelerate the introduction of new products, bundles and special offers for target market segments
Understand and maximize lifetime customer value, based on subscribers’ lifestyle changes
Growing Customer Demand for complex and Bundled Services
Churn Management
Campaign Profitability
Computation / Prediction of Customer Lifetime Value (CLV)
Impacts Customer retention: Identification and retention of high-value customers
(5% increase in retention can create a 125% increase in profits)
Revenue Optimization
Revenue and Margin Maximization - Minimum Revenue Leakage
Correct Rating and Billing: Erroneous rating and billing to be avoided
Fraud Detection
Telecom fraud and bad debt account for $55 billion annual loss all over the world
Minimum Call Failure: Minimum network congestion to improve the maturity rate of the calls
Minimum time to repair fault: Downtime needs to be shorter
Offer innovative products at best prices to match competition
Maximize Sales by better Sales force effectiveness
Optimum Network Capacity Utilization: Idle network capacity needs to be channelized across exhausted cell sites for optimum utilization.
NYHHS
London Borough of Brent
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NYHHS
London Borough of Brent
State of ND
I believe one of our biggest strengths in the market place is our presence in the industry and our experience implementing MDM at over 600+ customers.
In addition, we have significant implementations with transactional hubs handling large volumes in very demanding high performance environments across all domains and all styles.
The names you see hear on this chart are the world’s biggest companies. In fact they include a quarter of the fortune 100