Capping IT Off

Capping IT Off

MDM strategy is a business challenge

About 5 years ago I made a statement that there was no such thing as IT strategy.  What I meant was that there should be no such thing as a strategy purely for IT but instead it should be about how you solve business challenges and address the business strategy.  In other words good "IT strategy" is actually an implementation roadmap to solve business challenges.

Now in the MDM world this is actually central to what we do as the things that really kill MDM projects are the failure to clearly understand the KPIs of the business and work with the business in delivering an MDM strategy which delivers against those KPIs.

So when looking at MDM strategy here at Capgemini we don't launch into product selections or technical discussions on "operational" v "analytical" MDM or on whether a "registry MDM" approach is sufficient but instead we look at a few key elements

  1. What information is in scope and what is its classification
  2. Who depends on that information and in what manner
  3. What are the key KPIs that the producers and consumers of the information have
Now I'm not going into the full detail here on what we do but just focusing on this single element - namely identifying the business challenge and opportunity around master data.  This means clearly understanding what is master data as opposed to one of the other 3 types and then understanding why on earth the business should want to spend the effort governing it.

Once you understand the business challenge and the opportunity you can then work on solving the problem via automation and simplification with technology but without that clarity you are going to be joining the 66% of MDM projects who fail to demonstrate value.

If you don't start with the business value in your strategy how can you hope for your implementation to demonstrate it?

About the author

Steve Jones
1 Comment Leave a comment
Hi Steve,
I see MDM as a tool to improve data integrity. If you ask any Financial or Business executive data integrity is always been high on their list of areas of improvement.
Many decision makers fail to see the ROI of MDM, even though independent studies have seen yields of $800K to $1M of GM improvement for ever $1B in sales volume in Organizations that deploy MDM. It may be hard to "visually" percieve this, but when you think of all the re-work, delays, out of stocks,or shrinkage that are incurred when a PO manages to get through the system with corrupt or innacurate core data, It is easy to see the "roadbumps" that are incurred throughout the procurement to pay process.
MDM also doesn't have to be a formal packaged software. It can be executed with sound logic and business processes, that support all "alike" attributes living in one place, and not replicating data attributes accross multiple databases. Enjoyed the read. Industry leaders are embracing and executing MDM. They see and fell the value.
Thanks,
Mark

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