An Introduction to Master Data Management

Neeraj Gokhale

General Manager, MDM

2

Agenda

MDM challenge and approach

TIBCO Collaborative Information Manager

Differentiation

Implementation Learnings/Best Practices

3

What is MDM?

MDM is—applications, toolsets and discipline that allow for harmonized master data to be provided to services and business processes across the organization

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Where does MDM fall into the TIBCO Stack

…of data, events, processes, competitors, markets, etc.

Increasing VOLUME

High Performance Integration

Increasing VELOCITY

Increasing VARIETY

BusinessOptimization

BusinessProcess

Management

Service-Oriented

Architecture

Enterprise Information

Management

High Performance Integration

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Representative CIM Customers

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Business Drivers for MDM

Lack of consistent information across transactional applications

Lack of automated processes or controls in place to validate and manage data

Growth (organic or by acquisition) creates data fragmentation

Customer mandates, regulatory requirements for standards based master data synchronization with trading partners

Challenges Breakdowns in transactional processes

• Delayed time to shelf

• Inaccurate customer targeting

• Inability to assess counterparty risk

• Delays in provisioning services

• Increase in order to cash cycles

Inability for IT to innovate quickly and cost effectively to support business imperatives

Re-work on errors in information require a lot of expertise and support

Downstream data errors cost much more than fixing them at source

Business Impact

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Technical Drivers for MDM

Disparate, uncoordinated enterprise systems• Serving functional silo needs• Cross functional inefficiencies• Disconnected business decisions

Need for composite processes and applications• Competitive advantage – business driver identified• Referential integrity critical• Cross “silo” processes and analysis – Internal and External

System Migration / Consolidation – Reduce TCO• Requires data harmonization across systems • Reduces Risk

Need for complete, richer superset of information• Expanded capabilities• Bridge to modern solution sets

Collaboration with trading partners

Goal: Alignment of complete and accurate information

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Harmonized Reference –the preferred approach

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TIBCO Collaborative Information Manager (CIM)

TIBCO CIM is a MDM Application• Business users use the application directly• Template approach

- Data models- Validations and transforms- Business processes (Add, Modify, Mass Load, Synchronize)

Leverages current investments in existing TIBCO Infrastructure• Out of box support for TIBCO EMS, TIBCO BC• Embeds BE as core rule engine

TIBCO CIM leverages current and future application investments• Multiple deployments alongside SAP and other infrastructure software (IBM,

BEA, Oracle, Cyclone Commerce, CA etc.)

Enterprise class deployments• Multiple enterprise production deployments• Broad use cases

Active partnerships with Large SI’s – Accenture, Infosys, WIPRO

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Critical Capabilities for Master Data Alignment

Extensible Repository• Central or virtual store for reference, w/ common definition• Cross indexing as required• Validation – data and contextual

Information Management• Consistent creation to consumption processes• Interdepartmental and inter-system processes

Internal Synchronization• Process integration for internal systems• Accurate, reliable propagation to downstream systems• Fault tolerance and recoverability

External Synchronization• B2B integration for trading partner synchronization

Compliance and Reporting

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JMS/XMLJMS/XML

•Master Data•Relationships•Hierarchies•Authoring•Validation•Workflow

Architecture

CallCenter

Sales

CustomerSupport

Partner

Website

SalesFinanceProcurement

Cust. Supp. ContentMgrsIT

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File Extract

BatchReal-Time

BatchReal-Time

File Extract

TIBCO Collaborative Information manager

CRM

RichUnstruct.

Information

Trade

External Feed

Legacy

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ESB ESB

EIM

CIM – Enterprise Landscape

TIBCO DXData Quality

TIBCO SMCross

Referencing

TIBCO BCPartner

Synchronization

CustomerSupport

SFA

CustomerWeb Site N-Tier

DistributionPartner

Demand-sideTradingPartner

Subsidiary

TIBCO CIMMaster Data Management

Customers Vendors

Products

Information Management Business Processes

CompositeApplications

TIBCO General Interface/Portal Builder

Business Process Orchestration

Web Services

SupplyChain

PLMN-TierSupply Chain

Partner

Supply-sideTradingPartner

ERP

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Key Tenets of TIBCO CIM –MDM approach

MDM is a process problem

Business owners, participate in the data management and governance process

CIM manages the “super-set”, neutral master data in a harmonized repository

• Cross references for individual systems• Syndication profiles customize data, definitions, for individual destinations

Event based architecture• Data aggregation, enhancement, maintenance and approval processes• State-full data synchronization

Distributed data management• MDM distributed across instances = multi-tier data management• Processes could reside in other applications – CIM coordinates.

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Product VendorSecurities /Accounts

Customer / Clients

TIBCO CIM StrategicData Domains

Extensible Information Repository

Information Choreographer

Multi-channel Synchronization Manager

Interaction Manager

Reporting & Business Intelligence

TIBCOCIM Application

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Industries

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CIM Platform Capabilities And Industries

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Critical Needs for MDMTIBCO CIM CapabilitiesExtensible Information Repository• Full CIM schema with roles, users, labels etc. Administrators add attributes only• Multiple custom classifications (by credit rating, by geography, by type etc.)• Flexible relationships (variants, contains, etc.)• Object and value based security

Information Lifecycle Management• Out of the box Pre-ERP New record introduction, record change processes• Validation rules applied in UI and in business process• Email alerts, escalations, timeouts, parallel data entry• Vacation routing, re-assignment of work• Configurable PDF generation as part of business process• Reminder schedules for different parties in business process

Internal Alignment• Multiple successful back-end integrations in production• Feed data in or out of back-end systems (File Based, Integration Broker based)• Integration as part or workflow or batch• Single Sign on with LDAP middleware

External Alignment• One click state based synchronization• Out of the box peer to peer (CIM to CIM) standards and process based integration• Synchronization with trading partners (UCCnet (1Sync), WWRE, Transora(1Sync)

Reporting, Business Intelligence & Auditing• Audit of versions and event information

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Technology Stack

HardwareOS

Application Server

DB Files

TIBCO CIM Application

Co

mm

un

icato

r

Web Server

QueuesJDBC

Web

L

ayer

App

licat

ion

Lay

erD

ata

Lay

erJava Read/Write

JMS

Web Server:Apache 1.3 or aboveIBM HTTP Server

Application Server:WebSphere 5.1 (incl ND)WebLogic 8.1Websphere 6 on WindowsJBOSS

DB Server:Oracle 9, 10DB2 UDB 7.2

Messaging Bus:TIBCO EMS 4.X, MQSeries 5.3Other JMS

Operating Systems:Linux ES3 and AS3AIX 5.2 and 5.3Solaris 9

HPUX 11Windows 2003

JDK 1.4 and above

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TIBCO CIM – Key Technical Differentiators

Event based Real-time architecture

Cross-enterprise workflows

Federated Ownership and Authoring

Flexibility of data model - Attribute addition/modification is instantly available

• To the validation engine, workflow engine and UI.

Flexible integration support • from sophisticated ESB technologies to simple file based extracts using “watched

directories”

Sophisticated syndication model• State sensitive customized syndication

Compliance – Rich versioning and auditing

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Differentiators

TIBCO is the proven and leading best of breed vendorGartner: Only company in leadership position in Integration/BPM/Backbone & Web ServicesForrester: Recognized as the leader in Integration and ESBIDC: One of only 2 vendors with more than 10% market share

Proven

TIBCO has a comprehensive product set to achieve EIM for SOAMaster Data Management (CIM), Cross-Referencing (Smartmapper), Secure B2B messaging (BusinessConnect), Extract Transform and Load (DataExchange)Business Orchestration (BusinessWorks), BPM, Rich Client Interface (GI, PortalBuilder)

Comprehensive

Recognized need to manage enterprise information outside dominant applications – also in distributed fashion

Applications are geared to transactional processing, not superset data mgmt.

Distributed/Independent

TIBCO CIM solves the data ownership, governance and process changes around master data to enable continuous data quality

Process/Governance

TIBCO’s single platform approach to multi-domain information management provides the lowest TCOSingle platform can manage vendors, customers, products, counterparties, etc.

Multi-Domain

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Key Benefits

Common platform for all master (reference) data (Product Security, Client, Vendor, Counter-party…)

Business process enablement and enforcement of data management processes

Version control, Audit trail and Compliance

Scalable syndication model with state sensitive customized syndication to each destination

Flexible data model and repository

Data load from industry feeds (1Sync, D&B, Bloomberg etc)

Consistent master data across the eco-system

Master Data exposed as Service for the SOA

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Analyst Endorsement—Forrester

TIBCO Collaborative Information Manager

Implementation Best Practices

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MDM can not be just an IT Initiative

GOVERNANCE IS KEY FOR SUCCESS- PARTNER W/ BUSINESS

MDM Drives real business benefits

Business benefits should be used to garner business people’s support and commitment to the project

Successful MDM needs active participation from the business• Prioritization • Focus on the right data sets and processes• Participation in the data governance process• Ongoing data management becomes their responsibility

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Best practices for MDM

1. Identify the processes that are critical to YOUR business1. Supply Chain2. Customer Service3. Provisioning

2. Identify the data/attributes that are relevant to those processes

3. Adopt standards if they exist

4. Define governance policies – make them a part of your business mindset

5. Identify and benchmark key success metrics

6. Automate the process

7. Communicate, Communicate, Communicate – Change management within the company and across the ecosystem is essential

8. Do not oversell - set expectations that this is a journey!

9. Ensure that scalable technology is in place1. Data model extensibility – add attributes as you need them!2. Process flexibility – rapidly change processes as per business requirements3. Standards compliance 4. Platform to scale as needs grow

Thank You

5/24/2007 25

Case Studies

5/24/2007 26

Coca Cola

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Customer Case Study

Business Challenge• Single “face” to retailers

- Common Product Information- Common/coordinated price and promotions- Consistent information across trading partners

• Distributed organization - 80 bottler network- Coordination of product introduction processes- Compliance with regional bottler agreements- Enforcement of partner business rules

• Strategic sourcing across geographies- Multiple instances of ERP and ops systems- Lack of consistent enterprise master data- Inability to perform vendor spend analysis

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Customer Case Study

Solution• Central Coke brand information management

- Brand assignment and creation & industry collaboration • Shared bottler collaboration system

- Consolidated bottler information w/rights and permissions - Process for region-specific product introductions

• Enterprise Vendor information management solution- Automation/coordination of vendor requisition processes- Vendor spend analysis & management rules

Benefits• $15–20 MM annually – invoice discrepancies• $30MM annually – deductions• Reduction in fines - $120 per SKU/month/retailer location• Reduce number of active vendors by over 55%• Spend analysis will reduce yearly procurement costs by $70.9M

5/24/2007 29

Shell Energy Trading

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Case Study – Energy Trading

Trading application infrastructure is fragmented• M&A = Over 250 applications + 40+ instances of SAP

- Trade discovery, Trade Execution, Trade Settlement• Recognized need for a Enterprise Service Architecture• Master data (vessels, locations, counter parties etc.) are replicated in each system• Growing by acquisition with a lot of Joint Ventures and Partnerships create need for sharing

master data

Process around master data is broken• Realized that until process for maintenance of master data is broken, the data will never be right

- New Location introduction, New Counterparty introduction etc.• ~100 people around the world manage master data as their primary job

Collaborative Information Manager• Store all master data in CIM• Manage processes for master data introductions and change management• Versioning, validations as part of business process• Deploy with integration framework to synchronize with transactional systems• Near real time, batch or file based integration

Screenshots

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Multiple Data Domains

-TIBCO CIM can support multiple data domains from a single platform. -In this example a customer is managing their Account Master, Client Master, and Securities Master. -This lowers TCO as well as provides the ability to leverage relationships between data domains, such as between an account and a client.

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Multiple Classifications

-TIBCO CIM provides the ability to classify a catalog, in this example an Account Master, by any number of classification methods –Account Type, Exchange, Geography etc.-Classifications can be dynamically generated based on attribute values and do not have to be hard-coded before hand.

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Account Entry / Modify with Validations

-Attributes are grouped for ease of use-Screen is metadata-driven and adjusts accordingly if data model changes such as adding a new attribute-User based security enforced at the attribute level – user can only see/modify what they have permission to do -Drop down boxes are provided to enforce data entry validation-Validation can be syntactic or contextual, for example, this client can only open this type of account- Valid value lists can be stored locally or can link to an external source

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Validation Errors

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Compare a record against past versions

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Business Process Configuration

-Easy to use GUI to configure information management processes and workflows such as adding a new account or modifying a customer address.

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Inbox Example (Review, Edit and Approve)

-Users can view their daily work items and drill down to take necessary action such as input data required by them or approve a request such as a new account introduction.

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Rich Workflow Capabilities –Launch Reminder & Escalation

60 days15 days

14 days14 days

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60 days15 days

3rd

Reminder (user & mgmt.)

90 days30 days

20 days20 days

90 days30 days50 days

90 days30 days

40 days

90 days30 days

2nd

Reminder(user & mgmt)

Planner45 days45 days

RegularRush

Materials Management

Cost Accountant

30 days30 days

RegularRush

Finance

MCM110 days45 days60 days

RegularRush

DisplayMarketing

GPS Engineer110 days45 days

RegularRush

Packaging

DSM45 daysDisplayDisplays

MSM110 days45 days

RegularRush

Manufacturing

Sent to1st

Reminder(user)

Launch TypeDepartment

60 days15 days

14 days14 days

60 days15 days

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60 days15 days

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60 days15 days

3rd

Reminder (user & mgmt.)

90 days30 days

20 days20 days

90 days30 days50 days

90 days30 days

40 days

90 days30 days

2nd

Reminder(user & mgmt)

Planner45 days45 days

RegularRush

Materials Management

Cost Accountant

30 days30 days

RegularRush

Finance

MCM110 days45 days60 days

RegularRush

DisplayMarketing

GPS Engineer110 days45 days

RegularRush

Packaging

DSM45 daysDisplayDisplays

MSM110 days45 days

RegularRush

Manufacturing

Sent to1st

Reminder(user)

Launch TypeDepartment

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Administration – User / Roles Management

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Manage External Data Sources / Feeds

-Manage external data sources for-Mass Updates-External data providers such as Reuters, Bloomberg, etc. -Valid Value lists

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Event Log

-Detailed event log is maintained for trouble shooting as well as compliance and auditing