Organizations spend millions of dollars to implement their MDM solution. They may have different approaches (batch vs. real time; integrated customer view vs. integrated supplier view etc.) – but in general they all expect to get a “one version of the truth” view by integrating different data sources and then providing that integrated view to a variety of different users.
After the completion and successful testing of the MDM implementation project, companies sit back and enjoy the benefits of their MDM hub – and more often than not don’t even think about looking under the hood. It never occurs to them that they could be trying to gain insights into what’s happening inside that MDM hub by asking questions like
– How is the data quality changing?
– What are the primary activities (in processing time) inside the MDM hub?
– How are service levels changing?
However, organizations change, people change, requirements change – impacting what is happening inside the MDM Hub. Such changes can open up significant opportunities for an organization – but without doing any sort of investigation that opportunity is typically not recognized.
Here are two examples – diagnosed through the use of an MDM audit tool:
– The company’s MDM Hub had approximately 100,000 incorrect customer addresses. These addresses were used for regular mailings; the mailings generated (in case of correct address) incremental revenues. Impact on the business related to just one mailing:
- $400K wasted on the mailing cost ($4 is the conservative mailing cost per person – for postage, printing of the mailer etc.)
- $100K of immediately lost revenues (as past data shows that one in 50 customers spends about $50 immediately following the mailing)
- The longer term revenue lost was not assessed, but was estimated to be well over $400K
- The opportunity: Cost saving of $400k and revenue increase of $500K or more
– At a different company, by analyzing data processed by week the resulting report was able to determine that the number of new customers processed was declining by 1-2% every week – starting about 6 weeks before the audit was conducted. A deeper review of the audit report suggested that
- The original service levels related to customer file changes had been getting worse and worse over that same time period
- As customer file changes (as per the audit report) took over 85% of the total processing time, the slower processing lead to less time available for new customer processing
- This initial diagnostic was confirmed by the client – they had a slowly growing backlog of new customer files
- Ultimately the audit was able to highlight which input data source had been causing the slowdown, allowing the company to resolve the problem at its source
- Business impact: a major risk (very significant slowdown in new customer set up) was eliminated before it became a real problem
In both examples: the MDM Data Governance team was recognized for identifying a major drain of resources (incorrect addresses) or for avoiding a major risk (new customer backlog)
We take our cars for regular maintenance; we go to regular medical and dental check-ups; when was the last time you had a thorough analysis of your MDM Hub?
Several leading MDM technology companies have developed very advanced tools with the ability to provide ongoing MDM monitoring capabilities. Has your organization implemented any of these tools?
Standard features offered by these solutions include:
– Data Load Results
– Transaction Metrics Summary and details by Transaction Category or Transaction
– SLA Attainment by Transaction Category or Transaction
– Performance Analysis
– Data Composition
– Changed Data Trend Analysis
– Data Quality, Quality Extract or Quality Trend Analysis
– Inactive Data
– Identify areas of immediate need that should be investigated
The tools can often also provide custom reports to answer important business questions like:
– Across of all product / service groups, which customers are from certain geographies (in some industries this is required by regulatory bodies)
– Across of all product / service groups, which customers have certain characteristics ( for example more than 2 addresses) which could indicate fraud?
Why hesitate to do your MDM deep dive? The immediate payoff is the ability to improve the business results of your organization. Your leadership team will thank you for it!
Companies typically do not analyze what is happening inside their MDM Hub. What is your company doing? InfoTrellis is conducting a survey to determine what percentage of companies do MDM Hub audits or deep dives – and the survey results will be shared with all participants.
Qualified respondents will be entered into a draw, the winner of which will receive an Apple iPad Mini for their personal use and a complimentary scan of their organization’s MDM Hub performance and data quality. (Note: the MDM Hub analysis is run on system log files, ensuring the confidentiality of your customer and product data.)
The survey will be open until March 15, 2013. The draw will take place on March 20, 2013 and the survey results and draw winners will be announced by March 25, 2013.
To learn more about the solutions InfoTrellis has developed for MDM Hub analysis, feel free to contact our specialists directly via email@example.com.