The Value Behind Integrity-final
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The Value behind Integrity Achieving high performance through customer data quality
etnasoft.com
Etnasoft.com
ETNA Software Whitepaper
pg.
1
Executive Summary
Customer data is a comprehensive representation of a client within multiple channels, business lines, and enterprises. Properly gathered and analyzed information gives mission critical knowledge on how to attract, retain and motivate customers. In a large-scale company client relative information is typically distributed across multiple application systems and databases. As companies become more relied on information technology for managing customer data, the new challenge comes up - to provide seamless customer data integration (CDI) between heterogeneous IT systems within a single IT infrastructure. For example, in the financial services industry it becomes common for large banks to run separate checking, brokerage and insurance customer systems with no visibility to track a customer from one system to the next. This leads to missed upsell and cross-sell opportunities, inconsistent and Etnasoft.com
ETNA Software Whitepaper
pg.
2
often poor customer service, inability to differentiate profitable customers from less profitable ones, and an overall loss in brand value. Once the right CDI solution is found, operations’ efficiency and business performance soar.
WHAT ARE THE STRATEGIES FOR ACHIEVING CUSTOMER DATA QUALITY?
According to Gartner research, through 2010, the creation of an accurate, timely and rich single view of the customer across channels and lines of business will be a key enabler for reducing costs, managing risk, and increasing revenue and profitability in customer-centric organizations and as soon as by 2008, 50 percent of large organizations with a heterogeneous customer data environment will begin to implement a solution for CDI.
Three types of information systems that are essential for normal business operation of large enterprise include ERP, DSS (Decision Support Systems) and MDM (Master Data Management). The last, but not least important, refers to the practice of synchronizing and standardizing critical data across organization. Master data management is not only required to coordinate different ERP systems, but Etnasoft.com
An easy to use, web-based master data management system is the missing link between operational/transactional systems, business intelligence and Performance Management systems. Customer and product are two most common MDM domains. CDI (or CDM) is a subset of Master Data Management that refers to synchronizing and standardizing master data within customer domain.
Recent Gartner’s report has identified some enterprise clients utilize up to 26 different business intelligence technologies within a single IT infrastructure. Clearly it is hard to control customer data consistency in such systems. To establish a single view of customer companies adopt either CDI initiative or fullblown MDM strategy that includes CDM as well as product, location, employee, asset, and financial entities ETNA Software Whitepaper
pg.
3
also necessary to supply meta-data for aggregating and integrating transactional data.
Today big companies’ investments in CRM and ERP solutions backfire in the form of millions of records created everyday that should be properly processed and correlated. As more and more information is gathered around the company, what was critical customer data is gradually transformed into information silo.
management.
Buy VS Build Organizations that respond to the challenge have 2 Master Data Management options: to buy a packaged solutions tackle the rapidly customer data integration escalating issues of product or build custom dimension coordination, developed solution inintegration and house. In general, reconciliation that companies find that The Market is Booming enterprises face with each packaged solutions provide Accordingflexibility, to Gartneroffer report, incremental year of systems greater a in the past two years, evolution. lower total cost of interest in CDI has grown ownership, and generate a higher return on dramatically as investment. As a recent higher organizations revisited the Forrester report highlights, “Emerging packaged need for a single view of the and their customer data integration customer capability to achieve it. On HOW COMPANIES IMPLEMENT CDI SOLUTIONS? solutions offer a new, supply side, an faster-to-deploy option for the number of customer integration increasing vendors, with their own projects.” In some cases, Researchinterpretations from Forrester found that as of meeting in-house CDI projects are much as 40% of an IT project budget is spent on integration. the requirement, are abandoned after a few offering value propositions years of design and around CDI and CDI hubs, development, without ever and the more widely being put into production. embracing concepts of MDM and EIM. While for some time buildyourself approach was popular, today, as Through 2008, the CDI hub information technology market will continue to see What is MDM? major changes, including MDM is the consistent systems become extremely more acquisitions and and uniform set of complex, companies opt for changes of vendor identifiers and HOW SINGLE VIEW OF CUSTOMER BOOSTS PERFORMANCE? so called CDI Hubs. direction; this will cause extended attributes that describe the core for end-user These software products problems entities of the organizations that want to support the global enterprise and are a strategic identification, linking and make used across multiple synchronization of commitment to the market business processes. before it settles down, customer information Some examples of core across heterogeneous data Gartner says. What EIM? entitiesisare parties, sources; create and EIM is an organizational places and assets. manage a database-based In Gartner Magic Quadrant commitment define, Groupings of to master for Customer Data system of record, and secure and improve the data include accuracy and integrity enable the delivery of a Integration Hubs (2006) the organizational most successful application of information assets. hierarchies, sales single customer view. infrastructure vendors EIM solves semantic territories, and product Supplied by big inconsistencies IBM (that has roll-ups, pricing across lists, infrastructure players as include all boundaries thus acquired DWL and, later, well as smaller vendors, supporting the Etnasoft.com ETNA Software Assential), Siebel andpg. 4 these products often are technical, operational Whitepaper among best-ofhighly optimized for a leaders and business objectives breed specialists are certain vertical. in a company’s Initiate, Siperian.
What are the benefits of high quality customer enterprise architecture strategy. GARTNER
Organizationwide improvements
Both back-office and front-office operations can be significantly improved through a comprehensive CDI strategy. Unified billing and credit management, accurate revenue accounting and contractual billings together with reduced mailing costs boost back-office performance, while accurate transaction and account information facilitate sales process.
How High Quality direct marketing With high quality customer data it is easier to focus direct mail/marketing campaigns on those who really organizations pays off. Through CDM organizations get most up-todate information and end up spending less money for get return on more impact. their investment in New CrossMarketing Capabilities To keep up with the pace, customer-driven business technology? must constantly offer clients attractive deals. More reliable customer data enables effective up-selling and cross-marketing through aligning human resources, operations and technology with clients’ needs.
Faster Billing Procedures Consistent customer data means the information is updated centrally and everyone in the enterprise has access to the new address. This guarantees invoices and mail get to customers in a timely manner
Better customer service
Organizations that adopt CDI strategy benefit from better relationships with customers. With one master copy of customer information, there is less chance of errors such as name misspellings and incorrect addresses and phone numbers and less opportunity to alienate the customer base.
Etnasoft.com
ETNA Software Whitepaper
pg.
5
ACHIEVING CUSTOMER DATA QUALITY IN LEGACY IT SYSTEMS
ETNA Software offers cost effective solutions that help companies focus on core competences and improve business Application Development Services We strive to continuously reduce cost and risk while creating business value and improving operational efficiency in a configurable, measurable and controlled way. Re-engineering & Migration Services Maximize the value of legacy applications while transitioning clients’ applications quickly and efficiently to modern platforms. Target platforms include optimized .NET and J2EE/UNIX, as well as source platforms from Oracle and IBM. CRM & EDM Solutions ETNA Software custom tailored solutions support the full spectrum of business processes, including
Etnasoft.com
Legacy Challenge Large enterprises are often trapped into using legacy solutions as a core of their IT infrastructure. Despite that these systems are considered to be potentially problematic and might not support full CDM integration, organizations have compelling reasons for keeping status quo. The problem is prominent in financial services sector where high availability systems cannot be taken out of service even for a relatively short period of time and the cost of redesigning is prohibitive because current legacy systems are large, monolithic and complex. As BankTech industry publication puts it, legacy systems are the cornerstone of business – the dinosaur codes that have survived the ages and continue to crunch out the numbers. Enterprises strive to squeeze all the value they can out of this technology. In order to stay cost-effective they turn to outsourcing. Outsourcing of application development as well as business processes has become extremely popular due to the cost-efficiency and fast time to market.
However, while in the shortterm cost-efficiency might be the major outcome, what really drives company’s long-term value is the ability to align IT with business processes through comprehensive outsourcing strategy. Smart CDI Solution World’s largest financial services provider, headquartered in Germany, enquired to develop data reconciliation solution that would match customer information from heterogeneous systems. By the time the project had started we have already delivered enterprise-wide document management solution to the client and had in-depth knowledge of client’s IT infrastructure. This contributed greatly to the speed of the development. Originally started as a reengineering project, it later involved complete redesign of existing application and it’s underlying architecture. We delivered CDM solution that integrated seamlessly with the customer’s mammoth IT infrastructure based on Lotus Notes/Domino, IBM DB2 and proprietary systems. Strategic outsourcing ETNA Software helpedpg. 6 relationships Whitepaper multinational cut cost and increase customer data quality within short timeframe.
About the Author
About ETNA Software
Alexey Linkov is Vice President of Marketing at ETNA Software, rapidly growing application development outsourcing outfit headquartered in St. Petersburg (Russia). For further information, contact the author at [email protected]
ETNA Software is a rapidly growing software development company, specializing in application development, system integration and business automation tools. Our outsourcing services range from complete design and development of custom software applications to the re-engineering of existing solutions. Technology - wise the company is focused on Microsoft .NET and SUN Java/J2EE, but also has rich practical experience with Oracle, IBM and various open source technological solutions.
Etnasoft.com
ETNA Software Whitepaper
pg.
Email: [email protected]
7
etnasoft.com
Etnasoft.com
ETNA Software Whitepaper
pg.
1
Executive Summary
Customer data is a comprehensive representation of a client within multiple channels, business lines, and enterprises. Properly gathered and analyzed information gives mission critical knowledge on how to attract, retain and motivate customers. In a large-scale company client relative information is typically distributed across multiple application systems and databases. As companies become more relied on information technology for managing customer data, the new challenge comes up - to provide seamless customer data integration (CDI) between heterogeneous IT systems within a single IT infrastructure. For example, in the financial services industry it becomes common for large banks to run separate checking, brokerage and insurance customer systems with no visibility to track a customer from one system to the next. This leads to missed upsell and cross-sell opportunities, inconsistent and Etnasoft.com
ETNA Software Whitepaper
pg.
2
often poor customer service, inability to differentiate profitable customers from less profitable ones, and an overall loss in brand value. Once the right CDI solution is found, operations’ efficiency and business performance soar.
WHAT ARE THE STRATEGIES FOR ACHIEVING CUSTOMER DATA QUALITY?
According to Gartner research, through 2010, the creation of an accurate, timely and rich single view of the customer across channels and lines of business will be a key enabler for reducing costs, managing risk, and increasing revenue and profitability in customer-centric organizations and as soon as by 2008, 50 percent of large organizations with a heterogeneous customer data environment will begin to implement a solution for CDI.
Three types of information systems that are essential for normal business operation of large enterprise include ERP, DSS (Decision Support Systems) and MDM (Master Data Management). The last, but not least important, refers to the practice of synchronizing and standardizing critical data across organization. Master data management is not only required to coordinate different ERP systems, but Etnasoft.com
An easy to use, web-based master data management system is the missing link between operational/transactional systems, business intelligence and Performance Management systems. Customer and product are two most common MDM domains. CDI (or CDM) is a subset of Master Data Management that refers to synchronizing and standardizing master data within customer domain.
Recent Gartner’s report has identified some enterprise clients utilize up to 26 different business intelligence technologies within a single IT infrastructure. Clearly it is hard to control customer data consistency in such systems. To establish a single view of customer companies adopt either CDI initiative or fullblown MDM strategy that includes CDM as well as product, location, employee, asset, and financial entities ETNA Software Whitepaper
pg.
3
also necessary to supply meta-data for aggregating and integrating transactional data.
Today big companies’ investments in CRM and ERP solutions backfire in the form of millions of records created everyday that should be properly processed and correlated. As more and more information is gathered around the company, what was critical customer data is gradually transformed into information silo.
management.
Buy VS Build Organizations that respond to the challenge have 2 Master Data Management options: to buy a packaged solutions tackle the rapidly customer data integration escalating issues of product or build custom dimension coordination, developed solution inintegration and house. In general, reconciliation that companies find that The Market is Booming enterprises face with each packaged solutions provide Accordingflexibility, to Gartneroffer report, incremental year of systems greater a in the past two years, evolution. lower total cost of interest in CDI has grown ownership, and generate a higher return on dramatically as investment. As a recent higher organizations revisited the Forrester report highlights, “Emerging packaged need for a single view of the and their customer data integration customer capability to achieve it. On HOW COMPANIES IMPLEMENT CDI SOLUTIONS? solutions offer a new, supply side, an faster-to-deploy option for the number of customer integration increasing vendors, with their own projects.” In some cases, Researchinterpretations from Forrester found that as of meeting in-house CDI projects are much as 40% of an IT project budget is spent on integration. the requirement, are abandoned after a few offering value propositions years of design and around CDI and CDI hubs, development, without ever and the more widely being put into production. embracing concepts of MDM and EIM. While for some time buildyourself approach was popular, today, as Through 2008, the CDI hub information technology market will continue to see What is MDM? major changes, including MDM is the consistent systems become extremely more acquisitions and and uniform set of complex, companies opt for changes of vendor identifiers and HOW SINGLE VIEW OF CUSTOMER BOOSTS PERFORMANCE? so called CDI Hubs. direction; this will cause extended attributes that describe the core for end-user These software products problems entities of the organizations that want to support the global enterprise and are a strategic identification, linking and make used across multiple synchronization of commitment to the market business processes. before it settles down, customer information Some examples of core across heterogeneous data Gartner says. What EIM? entitiesisare parties, sources; create and EIM is an organizational places and assets. manage a database-based In Gartner Magic Quadrant commitment define, Groupings of to master for Customer Data system of record, and secure and improve the data include accuracy and integrity enable the delivery of a Integration Hubs (2006) the organizational most successful application of information assets. hierarchies, sales single customer view. infrastructure vendors EIM solves semantic territories, and product Supplied by big inconsistencies IBM (that has roll-ups, pricing across lists, infrastructure players as include all boundaries thus acquired DWL and, later, well as smaller vendors, supporting the Etnasoft.com ETNA Software Assential), Siebel andpg. 4 these products often are technical, operational Whitepaper among best-ofhighly optimized for a leaders and business objectives breed specialists are certain vertical. in a company’s Initiate, Siperian.
What are the benefits of high quality customer enterprise architecture strategy. GARTNER
Organizationwide improvements
Both back-office and front-office operations can be significantly improved through a comprehensive CDI strategy. Unified billing and credit management, accurate revenue accounting and contractual billings together with reduced mailing costs boost back-office performance, while accurate transaction and account information facilitate sales process.
How High Quality direct marketing With high quality customer data it is easier to focus direct mail/marketing campaigns on those who really organizations pays off. Through CDM organizations get most up-todate information and end up spending less money for get return on more impact. their investment in New CrossMarketing Capabilities To keep up with the pace, customer-driven business technology? must constantly offer clients attractive deals. More reliable customer data enables effective up-selling and cross-marketing through aligning human resources, operations and technology with clients’ needs.
Faster Billing Procedures Consistent customer data means the information is updated centrally and everyone in the enterprise has access to the new address. This guarantees invoices and mail get to customers in a timely manner
Better customer service
Organizations that adopt CDI strategy benefit from better relationships with customers. With one master copy of customer information, there is less chance of errors such as name misspellings and incorrect addresses and phone numbers and less opportunity to alienate the customer base.
Etnasoft.com
ETNA Software Whitepaper
pg.
5
ACHIEVING CUSTOMER DATA QUALITY IN LEGACY IT SYSTEMS
ETNA Software offers cost effective solutions that help companies focus on core competences and improve business Application Development Services We strive to continuously reduce cost and risk while creating business value and improving operational efficiency in a configurable, measurable and controlled way. Re-engineering & Migration Services Maximize the value of legacy applications while transitioning clients’ applications quickly and efficiently to modern platforms. Target platforms include optimized .NET and J2EE/UNIX, as well as source platforms from Oracle and IBM. CRM & EDM Solutions ETNA Software custom tailored solutions support the full spectrum of business processes, including
Etnasoft.com
Legacy Challenge Large enterprises are often trapped into using legacy solutions as a core of their IT infrastructure. Despite that these systems are considered to be potentially problematic and might not support full CDM integration, organizations have compelling reasons for keeping status quo. The problem is prominent in financial services sector where high availability systems cannot be taken out of service even for a relatively short period of time and the cost of redesigning is prohibitive because current legacy systems are large, monolithic and complex. As BankTech industry publication puts it, legacy systems are the cornerstone of business – the dinosaur codes that have survived the ages and continue to crunch out the numbers. Enterprises strive to squeeze all the value they can out of this technology. In order to stay cost-effective they turn to outsourcing. Outsourcing of application development as well as business processes has become extremely popular due to the cost-efficiency and fast time to market.
However, while in the shortterm cost-efficiency might be the major outcome, what really drives company’s long-term value is the ability to align IT with business processes through comprehensive outsourcing strategy. Smart CDI Solution World’s largest financial services provider, headquartered in Germany, enquired to develop data reconciliation solution that would match customer information from heterogeneous systems. By the time the project had started we have already delivered enterprise-wide document management solution to the client and had in-depth knowledge of client’s IT infrastructure. This contributed greatly to the speed of the development. Originally started as a reengineering project, it later involved complete redesign of existing application and it’s underlying architecture. We delivered CDM solution that integrated seamlessly with the customer’s mammoth IT infrastructure based on Lotus Notes/Domino, IBM DB2 and proprietary systems. Strategic outsourcing ETNA Software helpedpg. 6 relationships Whitepaper multinational cut cost and increase customer data quality within short timeframe.
About the Author
About ETNA Software
Alexey Linkov is Vice President of Marketing at ETNA Software, rapidly growing application development outsourcing outfit headquartered in St. Petersburg (Russia). For further information, contact the author at [email protected]
ETNA Software is a rapidly growing software development company, specializing in application development, system integration and business automation tools. Our outsourcing services range from complete design and development of custom software applications to the re-engineering of existing solutions. Technology - wise the company is focused on Microsoft .NET and SUN Java/J2EE, but also has rich practical experience with Oracle, IBM and various open source technological solutions.
Etnasoft.com
ETNA Software Whitepaper
pg.
Email: [email protected]
7
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