Oracle MDM

Oracle 2011 MDM Strategy and Roadmap

This session at COLLABORATE 2011 was presented by Manoj Tahiliani, Senior Director of MDM Product Management & Strategy at Oracle.

Oracle’s approach to master data management (MDM) is to Consolidate, Cleanse / Standardize / Cross Reference, Govern and Share. You only get ROI when you are able to share clean information across the enterprise.

Oracle’s Application Integration Architecture (AIA) is an optional middleware component that integrates master data to the rest of the enterprise. You don’t want to be writing custom code for data integration; that makes you a technology company and isn’t sustainable in the long run.

Oracle hubs have five key capabilities:

1)      Store trusted master data, including roles & relationships, and vertical aspects unique to your industry

2)      Consolidation – you need to be able to get data into the hub. All of the Oracle hubs give business users ways to load data into the hub. This includes blending attributes from different sources into a “golden record”.

3)      Cleansing – data quality tools are integrated with the Oracle hub solutions, throughout the master data lifecycle, including third party enrichment.

4)      Sharing – publishing the trusted information back out to the enterprise so it can be used. This is where you get the return on investment from your hub.

5)      Governance – Oracle provides world class governance tools, including some for analytical MDM.

Why do Oracle’s customers engage in MDM initiatives?

The first driver is growth metrics including revenue generation and customer retention. The second driver is better operations – making operations more efficient, reducing time to introduce new products. The third driver is related to IT agility. For example, BI project costs are typically reduced by about 30%. The fourth driver is risk management and compliance.

Common deployment patterns include:

  • Foundation of rationalization for CRM
  • An add-on to CRM or ERP
  • Foundation of rationalization for Supply Chain Management, ERP or Fulfillment
  • A standalone Marketing or Compliance application
  • Technology / Architecture play (to support a SOA initiative, for example)

At a large global insurer, they saw a 2% increase in insurance premiums collected, along with a 12% reduction in marketing reach costs, and a 5% increase in cross-sell and up-sell results.

At a large US grocery chain, they saw improved marketing response, resulting in increase gift card sales by 5%, and increased sales from loyalty card customers by 1%.

A large telecom manufacturer retired 6 legacy apps and reduced integration costs by 20%.

National Australia Group Europe was awarded the Compliance Project of the Year Award in March ’11 with Oracle Customer Hub.

Oracle is recognized by Gartner’s Magic Quadrant for both Customer MDM and Product MDM in terms of ability to execute. Picking an MDM vendor is only part of the challenge. You need to also create a vision and strategy that is shared across the enterprise, and you need to address governance as well.

Oracle now has 1,250+ customers across diverse industries. Home Depot has 110 million customers in Oracle Customer Hub. Other large global customers include SuperValu, Tesco, Cummins, State Street, and Nextel.

Oracle has an analytical MDM solution called Oracle Hyperion Data Relationship Management.

On the platform front, Oracle has Fusion Middleware for data integration, which includes the Application Integration Architecture (AIA) for integrating data between applications and databases. Oracle’s Golden Gate solution is used for real-time data integration.

Oracle’s latest release of Customer Hub (formerly Universal Customer Master) is Release 8.2. It includes Data Governance Manager, DRM for Customer Hub (customer analytical MDM and advanced hierarchy management), MDM analytics (OBIEE maps and dashboard), and enhanced stewardship, with a rules engine and household survivorship. Merge functionality has been enhanced with household merge, guided merge, merge requests, unmerge/unlink. There is new list import functionality. UCM 8.2 also includes end to end data quality, including real time address validation, enhanced matching, and improved performance. Comprehensive data quality – from analysis and data profiling, through standardization and cleansing, through matching and de-duplication, to enrichment, is available.

Oracle’s approach is to provide domain-specific data quality tools – one for customer, and another for product.

For Product MDM, Oracle provides Oracle Product Hub and Oracle Product Data Quality (formerly Silver Creek Data Lens). Product Data Quality can be deployed independently of Product Hub, and gives you an integrated capability to recognize, cleanse, match, govern, validate, correct and repurpose product data.

Supplier Hub consolidates and maintains accurate supplier master information across the enterprise.

Site Hub is a location mastering solution, with customers like Norwegian Post and major retailers using it for tracking their retail locations.

DRM Release has a newly rewritten 64 bit architecture, with enterprise hierarchy management, providing analytical MDM, ERP integration to manage charts of accounts and other value sets, and to make it more usable.

Making sure your MDM deployment doesn’t go over the cliff: pay attention to the people and processes, as well as the technology side.

Three key pillars include: defining policies, monitoring policies and the data, then resolving operational data hub issues, data quality issues, business process issues.

Oracle’s vertical industry strategy is to tailor the basic MDM product to selected verticals, such as Higher Education (with the Higher Education Constituent Hub 8.2).

There’s also the Life Sciences Aggregate Spend Solution, which is in response to federal and state legislation calling for more transparency to the spending by pharmaceutical, biotech and life sciences companies marketing to health care providers.

Oracle has an MDM Strategy Council (customer advisory board or CAB). This is a group of 60+ customers selected from 1,250+ MDM customers.

Oracle’s investment areas for 2011 include:

  • Oracle Fusion MDM, including aligning products of today with the products of tomorrow
  • Vertical industries, as discussed above
  • Integration: pre-cabled, MDM aware, foundation components
  • Governance and content: information data governance, enrich with 3rd party content
  • Enterprise Grade: published benchmarks, faster deployments and upgrades
  • Thought Leadership: cloud, social, semantic MDM, additional hubs and domains

Oracle Enterprise Fusion MDM is available now through an “early adopter” program. Version 1 will be focused on the customer and product domains. It will be a multidomain MDM solution, using an enterprise schema with a common set of services.

Technology innovations in Fusion MDM include:

  • All of the processes are SOA-based.
  • Single technology stack
  • Embedded data quality, data integration and business intelligence
  • Enterprise search across the hub, including attachments
  • Supports end to end business process using BPEL using standard approval engine

Customers can remain on the current path and upgrade to the latest version of their current applications. The “co-existence strategy” would allow them to implement a piece of Fusion applications alongside of their current applications. The “full embrace” would be to deploy the complete suite of Fusion applications.

In summary, Oracle has enterprise grade, flexible, verticalized MDM hubs. They are pre-integrated and MDM aware. They provide comprehensive data quality in all MDM processes and services.

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