Customer Centricity: How the MDM Journey Creates Business Success

1. Customer Centricity: How the MDM Journey Creates Business Success  Anne Ratcliffe WW InfoSphere MDMSales Executive Information Management IBM Software Group

2. Agenda • The Information Supply Chain • Master Data Management Overview • The IBM® InfoSphere™ MDM Portfolio • Customer Success Stories

3. Data Explosion in a Smarter World! • Volume of Digital Data • 57% CAGR for enterprise data through 2010 • Machine generated data : Sensors, RFID, GPS.. • Variety of Information • 80% of new data growth is unstructured content • Emails, images, audio, video.. • Velocity of Decision Making • Rapidly changing business climate • Need to get ahead of the curve : predict issues and fix them New DataNew Information! 3

4. But, How Do We Leverage Informationfor Smarter Business Outcomes? 42% of managers use wrong information at least once a week 59% of managers miss information valuable to their jobs because they can't find it 47% of users don’t have confidence in their information 4 Sources: Accenture Survey, January 2007, AIIM Survey, July/August 2007

5. Think Differently to Drive SmarterBusiness Outcomes Optimization Human Resource Management Application Agenda Call CenterOperations Automation ERP & Financials 5

6. Key Business Drivers for MDM Revenue • Identify cross-sell, up-sell opportunities • Customize product offeringsand bundles • Introduce new products quickly • Identify high value customers • Improve customer retention Agility/Strategic Initiative • Consolidate data from silos/integrate new systems quickly (M&A) • Meet demands of newbusiness channels • Grow with the business • Identify key relationshipsand hierarchies Cost • Automate manual business processes • Reduce data errors • Eliminate excess mailings • Identify risk (credit) • Supports system consolidation initiatives Compliance • Reduce risk • Control access to data • Adhere to government andcorporate regulations • Manage customer privacypreferences 6 6

7. What is Master Data? Why is it important? Master data is a subsetof all enterprise data Master data is the high-value, core information used to support critical business processes across the enterprise Master Data is information about customers, suppliers, partners, products, materials, employees, accounts and more Master Data is at the heart of every business transaction, application and decision Master data 7 7 7

8. What is Master Data Management? Provides a consistent understanding and trust of master data entities Provides mechanisms for consistent use of master data acrossthe organization Is designed to accommodate and manage change MDM John Jones Customer Valiue High Risk Score Low Do Not Call jjones@abcCo.com ERP Data Warehouse eBusiness Application CRM John Jones 112 Main Street Customer Value – High Risk Score – Low Solicit – Do Not Call John Jones 112 Main Street Customer Value – High Risk Score – Low Solicit – Do Not Call J. Jones 1500 Industrial Customer Value – Low Risk Score – High Solicit – No data Master Record Single View 8 8

9. Billing System Product Order System Service System Customer Customer Customer Customer Product Product Product Product Account Account Account Account Others Others Others Others Current Business Automation…Sincethe Beginning of Info Technology Other Users (e.g business partners) Headquarters (e.g Risk Mgr, Administrator) Agent / Sales Application Agenda Era … Web Phone Call Center • IT Applications built in silo to solve specific business problems (Order, billing, service, compensation,etc) • Line-of-business focused (by product) • Common data(e.g Customer) in disparate systems resulting in duplicates and non-trusted data Business Intelligent (e.g. COGNOS) Process Server CRM/ Call Center IVR Web Sales Force Automation Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.) New Systems (e.g. SOA –based) Comp. System & Others External Business Partners Security, Mail, etc Content Management (e.g. FileNet) Batch Connectivity (e.g. ETL Tools) 9

10. System B Sales Comp- ensation System C System A Nancy Jones Nancy Jones Mark Jones Nancy Smith Name: Female F Male Gender: Female 8/1/80 1/8/1980 9/2/1963 Birth Date: 1 Aug 1980 M Marital Status: Married Married Single DLN: 800801-2311711 DLN:800801-2311711 DLN:630902-1212212 ID: Passport: BA26355 2 Main Street, … 1 Main Street, … No 1 Main St, … Address: 1 Main St, … Non-Trusted DataCommon Data in Disparate Systems CauseData Quality Problems… • Are they the same person? • Are they related to other customers? • Is the customer also an agent • Which address is correct 10

11. Insightful Derive meaning from information changes In Context Real-time delivery of relevant information when and where it’s needed Complete Related information reconciled into a single and holistic view Accurate Complex and disparate data transformed, cleansed and delivered Leaders Investing to OptimizeInformation AssetsClients Tell Us What They Are Looking for…Trusted Data 11

12. Product Order System Billing System Service System INFOSPHERE INFORMATION SERVER Customer Customer Customer Customer Product Product Product Product Account Account Account Account Understand Cleanse Transform Deliver Others Others Others Others COMMON META DATA IBM® InfoSphere™ Solutions to Provide Trusted Data to Drive Business Optimization… Headquarters (e.g Risk Mgr, Administrator) Other Users (e.g. business partner) Agent / Sales Web Phone Call Center IBM® InfoSphere™ Information Server • Every capability needed to understand, cleanse, integrate& deliver information across heterogeneous systems • Broad native connectivity to any data source • Massive scalability for integrating large data volumes in batch or real-time • Unique metadata-driven design for acceleration & business-IT alignment Business Intelligent (e.g. COGNOS) Process Server CRM/ Call Center IVR Web Sales Force Automation Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.) New Systems (e.g. SOA –based) Comp. System & Others External Business Partners Security, Mail, etc Content Management (e.g. FileNet) 12

13. System B Sales Comp- ensation System C System A Nancy Jones Nancy Jones Mark Jones Nancy Smith Name: Female F Male Gender: Female 8/1/80 1/8/1980 9/2/1963 Birth Date: 1 Aug 1980 M Marital Status: Married Married Single DLN: 800801-2311711 DLN:800801-2311711 DLN:630902-1212212 ID: Passport: BA26355 2 Main Street, … 1 Main Street, … No 1 Main St, … Address: 1 Main St, … INFOSPHERE INFORMATION SERVER Understand Cleanse Transform Deliver COMMON META DATA Non-Trusted DataCommon Data in Disparate Systems CauseData Quality Problems… • Are they the same person? • Are they related to other customers? • Is the customer also an agent • Which address is correct 13

14. PARTY RELATIONSHIP PARTY X-REF NAME PARTYHIERARCHY DEMOGRAPHIC (Gender, Birth Date, Establish Date, etc) PARTY VALUE PERSON or ORG (Party) CAMPAIGN SUMMARY ADDRESS & CONTACT METHOD (Phone, e-Mail, etc) INTERACTION HISTORY ACCOUNT/POLICY X-REF IDENTITY PRIVACY & PREFERENCE Master Data ManagementThe Path to Managing & Providing Trusted Data… Master Data … • Common Data • Directory(X-ref) Data • Summary Data 14

15. Master Data ManagementCentralized Management of Master Data via Servicesto Provided Trusted Operational View of Business … INTEGRITY service INTEGRATION service INTELLIGENCE service AUTHORIZATION service 15

16. INFOSPHERE MDM SERVER Real-time INFOSPHEREWAREHOUSE Product Order System Service System Billing System INFOSPHERE INFORMATION SERVER Customer Customer Customer Customer Product Product Product Product Batch Load Account Account Account Account Understand Cleanse Transform Deliver Others Others Others Others COMMON META DATA IBM® InfoSphere™ Solutions to Provide Trusted Data to Drive Business Optimization… Headquarters (e.g Risk Mgr, Administrator) Other Users (e.g. business partner) Agent / Sales Web Phone Call Center Business Intelligent (e.g. COGNOS) Process Server CRM/ Call Center IVR Web Sales Force Automation Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc.) New Systems (e.g. SOA –based) Comp. System & Others External Business Partners Security, Mail, etc Content Management (e.g. FileNet) 16

17. 5 of top 6 US HC Payers; EMPI & HIE leader Over 10 Years Experience & 600+ Customers 10 of top 12 US Retailers 4 of top 6 US Insurance Companies 6 of top 10 US Financial Services Leader for large national & local governments 17 http://money.cnn.com/magazines/fortune/fortune500/2009/full_list/

18. Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM Telco Government Healthcare Energy & Utilities • Improve Customer service and billing Contracts, and reduce churn • Support Regulatory compliance for Customers / Organizations • Grow Customer wallet share through tailored Product offerings and bundles • Energy Price data management • Asset and Location management (e.g., reservoir, oil field, meter) • Improve Customer service • Improve Case management • Reduce fraud across benefit Applicants • Improve revenue collection across Taxpayers • Improve Citizen services • Streamline Asset management across Locations • Improve Patient care and reduce medical errors • Encourage Physician loyalty • Improve Compliance and Patient privacy • Streamline Hospital Asset management or medical Products across supply-chain and Locations 18

19. Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM Financial Services Insurance Retail Manufacturing • Regulatory compliance for Customers • Improve Customer satisfaction • Grow Customer wallet share through tailored Product offerings and bundles • Understand full exposure and reduce credit risk across Accounts • Streamline Member enrolment • Improve claims processing for Members • Create custom Product offerings and bundles • Optimize Policy management • Manage compliance and privacy across Members • Superior Customer multi-channel experience • Improve Customer loyalty • Faster Product launch across Locations • Improve Vendor / Supplier on-boarding • Streamlined Asset management • Improve Supplier / Dealer financial management • Food Products safety compliance • Manage Customer preferences and lifecycle • Faster Product launch across Locations 19

20. IBM® InfoSphere™ Master Data Management A broad set of capabilities to enable adaptive master data management solutions Adaptive MDM for diverse requirements • World’s largest MDM customers and implementations • Rapid time to value with multiple deployment options • Support for any data domain and industry • Strong master data stewardship capabilities • Pre-packaged capabilities speed time to market • Customizable and extensible foundation • Seamless scaling as data volumes grow 20 20

21. Reduce cost and improve customer satisfaction via once-and-done processing … e.g. address change COST REDUCTION IMPROVE RISK MANAGMENT Reduce risk exposure via holistic view customer household and product holdings IMPROVE SALES CAMPAIGN Improve up-sell and cross-sell with relevant offers meeting customer requirements Comply with government regulations…privacy act, risk exposure reporting, etc REGULATORY COMPLIANCE ASSIST MERGER & ACQUISITION Forming a customer chassis to reduce M&A integration points and improve integration speed and cost Phased ImplementationDrive Business Optimization with Positive ROI 21

22. IBM MDM Customer Success Story The Facts: • Multiple customer information systems from acquisitions • Inability to identify value of customer across mortgage, bank account, sales, and life administration systems Bottom line: • Removed 400,000 duplicate records to date • Greater ability for cross-sell and up-sell • Led to increased revenue and improved customer loyalty "Now that we manage our customer information as an asset, the opportunities for innovation and optimization are endless. We can respond to the dynamics of our business twice as fast."

23. IBM MDM Customer Success Story The Facts: • Create and maintain product information 10% faster • Data entry errors reduced from 5% to 0.1% Bottom line: • Anticipated operational savings of €5 million annually • Partners reduce costs by 25% • Two additional weeks of sales for new products leading to 3.5% increase in revenue

24. IBM MDM Customer Success Story The Facts: • Integrates over 52M customer records within and across disparate systems • Acts as the single point of management for a global customer identifier Bottom line: • Reduced data standardization costs by 50% and marketing costs by 10% • Decreased customer churn by 5% and increased cross-sell, up-sell revenue by 10% • Recognize a 300% increase in customer privacy compliance across the entire organization

25. Q & A / Thank You For More Information, Please Contact: Anne Ratcliffe WW InfoSphere MDMSales Executive Information Management IBM Software Group Ph: +1 415 867-0895 Email: aratclif@us.ibm.com 25

26. Appendix

27. Govern Data Quality Security Lifecycle Management Delivering Business Insight RequiresMastering Your InformationGoing Beyond Simply Managing… to Optimizing Business Results Clients’ Information Supply Chain Applications & Processes Analyze BusinessIntelligenceApplications Integrate Reports & Dashboards Master Data Transform & Cleanse Data Warehouse Business Applications Database Infrastructure Content TransactionalBusiness Applications Streaming Data 27

28. IBM MDM Product Portfolio 28 28

29. IBM MDM Product Portfolio IBM® InfoSphere™MDM Server Physical master repository of customer, account and product data for the business to consumeas services IBM® Initiate® Master Data Service® Virtual master registry for delivering single, trusted versions of master dataand their relationships Governance Single View Common Components IBM® InfoSphere™ MDM Server (for PIM) Capabilities to flexibly manage products and other entities across enterprise IBM® InfoSphere™ Identity Insight Analytical capabilities to discover where threat and fraud exists to enable immediate action. 29 29 29

30. IBM® Initiate® Master Data Service®: Functional Overview • Data Stewardship • Inspect and resolve data quality issues • Visualize and manage relationships • Master Data Engine • Highly accurate and flexible matching and searching across multiple data domains • Load, match and link master data in hours • Flexible & Extensible Data Model • Model complex master domains and relationships • Employ data models that are built and optimized specifically for master data management • MDM-Powered Solutions Framework • Streamline creating MDM-poweredsolutions for end users • Integration • Integrate with multiple real-time andbatch options • Deliver trusted master data to downstream data warehouse, analytics and BI systems • Message-based support (HL7, JMS, MQ Series) IBM® Initiate® Master Data Service® Data Stewardship Master Data Engine Match & Link Workbench Relationships Data Model Solutions Framework Components Blueprints Integration SOA Java/.Net Industry 30 30

31. IBM® InfoSphere™ MDM Server:Functional Capabilities • Business Services • Enables business process to easily leverage master data • Speed time-to-value, reduce subsequentphase investment • Functionality • Stewardship: Data Quality, Stewardship,& User Interfaces • Events: Event Management& Business Rules • Security & Entitlement: ROV • Multi-domain • Extensible data model supporting domains including Party, Product, Account & Location • Relationships between domains • MDM Workbench • Tooling for easy extensions to dataand UI generation • Robust Data Integration • Pre-built Data Integration & Quality IBM® InfoSphere™ MDM Server Data Stewardship Business Services Pre-built Customizable MDM Domains Party Account Product Custom Integration Analytics Data Content 31 31

32. IBM® InfoSphere™ MDM Server (for PIM):Functional Capabilities • Collaborative Business Processes • Workflows for Collaborative Tasks • Extendable Authoring UI • Business User Interface for Authoring and Search • Flexible Data Model • Product Catalogs, Category Hierarchies, Attributes, Relationships • Data Synchronization • Imports and Exports with Deltasand Versioning • Job Scheduler • User and Role Security • Granular Access privileges to enforce complete and accurate data • User and Role Security • Attribute Level Security IBM® InfoSphere™ MDM Server (for PIM) Collaborative Authoring Business Process workflow Multi-Commerce Catalog Mgt GDS NPI MDM Custom-Built Domains Others Supplier Location Product 32 32