Dan Power, attending the Oracle OpenWorld 2011 conference, live blogged this session by Manoj Tahiliani, Senior Director of MDM Product Management & Strategy at Oracle.
Oracle MDM, both as a total portfolio and its individual “MDM for Customer Data” and “MDM for Product Data” solutions grew fastest in the market in 2010. The source was a recent Gartner report (“Forecast, MDM Worldwide 2010-2015”).
There are two common solution patterns for managing ongoing information change. It’s common to have a heterogeneous environment. Pattern 1 is to leverage a data quality tool. The downside is that if this is done in a siloed way, the benefits are not provided across the whole enterprise. If there are business process changes or you want to onboard new businesses, that can be a lot of work.
Pattern 2: Add a Hub. This provides a central point of reference between the operational and analytical sides of the business, and allows for changes and new business to be onboarded more smoothly.
Oracle’s MDM Suite allows you to handle the customer domain, including social information and trusted third party data. The supplier domain is a special case of the party. Financial, site and location mastering is available. Finally, the Product and Services domain. Product and Customer comprise about 2/3 of the market, according to Gartner.
All of our hubs are layered with Enterprise Data Quality. Product and Customer data quality needs are different. Data Relationship Management product provides cross-dimensional analysis.
Data Governance and Compliance works across all of the hubs to keep data as a trusted source for the enterprise.
All of the data that gets generated across the enterprise can now be mashed up with “big data” using Hadoop Clustering, so you can understand who are your customers, what they’re doing on the social web, who are your customer’s customers, and other “big data” questions so you can get true insights on your customers.
Enterprise data is projected to grow by about 40x over the next 10 years. For companies with rigid architectures, this will be an astounding blow. Oracle’s Enterprise Information Solution leverages Oracle’s best of breed components. In addition to Oracle’s hubs, Oracle provides data integration tools such as ETL/E-LT, Data Federation, Replication, SOA and Big Data.
Oracle now has over 1,500 customers using its MDM customers, including marquee names in every vertical industry. There’s a great ROI story around British Telecom (BT). VMware is using Data Relationship Management. Cummins is here to talk about their success in the manufacturing sector. Financial Services is a fast growing vertical for Oracle. Citibank is going live with Product Hub.
The Sunshine Act has had a big impact in the Health Sciences industry.
The key drivers for Oracle customers are:
- Revenue generation and Customer Retention (CRM booster) – cross-sell / up-sell
- Better operations (cost reduction) – 1st time accurate deliveries
- IT agility – lower operations and IT costs
- Risk management and Compliance – law enforcement, regulatory compliance and privacy
MDM benefits can be calculated using Oracle’s proprietary ROI tool, available through Oracle’s sales teams.
Oracle customers want a spectrum ranging from complete integrated solutions to complete freedom of choice, with modular components.
Oracle has invested heavily in the MDM space over the past five years. 74% of Oracle’s customers are on the most recent two releases.
Strategy and product updates include:
- Fusion MDM 11g R1 is now in General Availability, including full cloud support. The first release is focused on Customer and Product domains. In the last five years or so, Oracle has been aligning its Siebel and E-Business Suite MDM customers towards Fusion MDM.
- There are purpose-built Hubs on top of a common MDM platform, with Master Data Objects, common MDM components and services, and common infrastructure components and services.
The workflow is a standards-based Java workflow. Even the UIs are extensible purely by end users.
Oracle Enterprise Data Quality, the combination of Silver Creek for Product Data Quality and Datanomic for Customer Data Quality, is a specialized data quality solution for Customer, Product, Location, and Compliance business problems.
On the broader stage, the OEM data quality offering from Informatica is still available.
Oracle’s Enterprise Data Governance solution, allows you to define your policies, monitor compliance to them, and resolve issues that crop up over time.
Oracle’s Customer Hub 8.2+ (Universal Customer Master or UCM) has new functionality to support massively scalable hubs, enhanced data quality and usability, MDM-aware and Social MDM and increased Verticalization.
A benchmark that Oracle has run with an Australian bank showed more than 4x the throughput (using a half rack of Oracle’s Exadata and Exalogic hardware), and now supports 14.4 million real-time transactions per hour, compared to commodity hardware, assuming 90% reads and 10% writes on a 250 million customer database.
The E-Business Suite based hubs (Customer, Product, Supplier and Site) on Release 12.x are being positioned to align better with Fusion MDM.
Data Relationship Management 220.127.116.11 has new features to manage and sync via out-of-the-box integration across multiple EBS R12 instances.
Oracle’s integrations using Application Integration Architecture has been upgraded to 11g Fusion Middleware, and new integrations for both Customer Hub and Product hub are available.
Oracle’s vertical industry strategy covers communications & media, retail, public sector and higher education, life sciences and financial services.
The public sector vertical now supports Health Insurance Exchanges. Another one in this area is Citizen Services.
In life sciences, there is an Aggregate Spend Compliance solution, to assist in complying with various states’ compliance regulations in the pharmaceutical industry. This solution leverages Advantage MS data for information on doctors and health care providers.
In the oil & gas industry, Oracle has verticalized the Site Hub to become a well head management solution.
Oracle has also integrated its ATG e-commerce acquisition, to include customer preferences into the e-commerce tool.
Oracle has a group of 70+ customers on its MDM Strategy Council / Customer Advisory Board.
Oracle now has an ecosystem of 75 partners global providing global and regional systems integration expertise.
Oracle’s MDM investment and differentiation areas include the core platform, industries, business process management and integration, governance and content, making solutions “enterprise grade”, and providing thought leadership.
Oracle is committed to ongoing enhancements to all of its various MDM solutions, and will continue to make sure its solutions are enterprise grade, industry specific, and massively scalable. And Oracle as a result is experiencing the fastest growth.
Balaje Govindan, an IT Director of Data and Content at Cummins Inc., presented a case study for how Cummins has used Oracle MDM. Cummins had $13.2 billion in 2010, from 190 countries and territories, with 40,000 employees.
In its Future State, Cummins expects to have a series of web-based portals, with user-based access control, with common core applications (such as Engineering, PLM, Collaboration, Purchasing, Supply Chain, Manufacturing, Service, etc.), using middleware, business intelligence and a data integration layer connecting its multiple transactional and MDM databases and its enterprise data warehouse.
The Current State diagram, on the other hand, is a spaghetti diagram of point-to-point batch interfaces, multiple versions and instances of legacy ERP and other applications, and no significant MDM or data quality capabilities today.
The Enterprise Information Management in Cummins’ future state features shared ERP applications, with middleware connecting Finance, Manufacturing and Supply Chain applications to an MDM foundation.
MDM business drivers included:
- single source of master data
- Better business decisions
- Increased synergy
- Uniform communications
- Risk management
- Data security, privacy, and regulatory compliance
- Operational efficiency improvements
- Global logistics expansion
- Reduction in redundancy in manual efforts
- Continuous data quality improvement as data quality processes are embedded upstream rather than downstream
Cummins’ future state environment includes Oracle Product Hub, Supplier Hub, Finance Hub (Oracle DRM), Party Hub (Oracle UCM for Suppliers and Customers), with Fusion Middleware as a service layer and a strong data quality tool set including Oracle Product Data Quality (formerly Silver Creek) and Oracle Data Quality (OEM solution from Informatica, including Address Doctor).
Cummins used a Four Pillar approach: Data (Information), Process, Governance and Technology (very similar to the Four Dimensional approach that Hub Designs recommends).
Cummins’ journey includes Product Hub, with 460,000 items and bills of material, Customer Hub (UCM) with 70,000 customers live (2 million more to follow), Supplier Master has a pilot implementation in progress (going live in Q2 2012, with 75,000 suppliers in scope), and Finance Hub (DRM) also live.
Key take aways include:
- Have a clear end goal in mind
- Engage business stakeholders early
- Focus on tangible business deliverables and ROI
- Build your strategy and roadmap with both business and IT
- Build your technical foundation capability in advance of your business deliverable projects
- Create a business-led data governance team progressively with clear roles and decision rights
- Partner actively with Oracle
- Remember MDM is a journey, not a short term project!
It was good to hear Cummins share their case study after hearing Oracle’s 2011 / 2012 MDM strategy and product roadmap. It always helps to have a customer explain how they’ve implemented a solution in order to “keep it real”.