the value of master data
If you're struggling to understand the business value of Master Data Management (MDM) and how it relates to your customers, then this webinar is for you - putting MDM into real-life context and highlighting the value it offers both and your customers.
Hello, and thank you everyone for joining us today for what will be an insightful look in to the world of Master Data Management. I’m joined here today by our European Director of industry solutions, Darren Cooper.
So, the first question is, why are you here? For those of you knew to Master Data Management, you’re here to learn a little bit about what MDM is, and we’ll help you by connecting it emotionally to the real world that you and your customers live in.
For those of you already familiar with MDM this will be a chance to look at the technology through the eyes of your consumers and we will use case examples to bring it to life before connecting the value of it back to your business. You will get an opportunity to ask any questions at the end and we will leave you with just one action point to do as a result of what you hear today.
Today, simply knowing the customers purchase history makes them 65% more likely to choose you.
Stibo Systems helps large organisations bring their data together from disparate sources to build a comprehensive picture of each customer and their purchase history, and with this insight you can develop products and services that your customers want to buy.
As much as 61% of a company’s sales are based on new products and service launches, but much of this gets eaten by the costly administration process of getting the product to market in the first place.
Stibo Systems reduces the time to market by bringing together product details into a central place from where you can manage and distribute it quickly and accurately.
Now, there’s two things that separate us from our competitors.
We take a business first approach to problem solving and we never lead with product feeds and speeds.
The second thing is that Stibo Systems is a foundation, which means we cannot be bought, we have no shareholders to answer to, and the profits we make are reinvested into our products and people which means we have the best of both.
So, what is Master Data in Master Data Management? Master Data is a single source, a common data, that is used across multiple business processes, it could be your customer data, your product data, employee information.
And, what is Master Data Management? It’s the technology that brings it together, into a single place and ensures that you can keep up its quality and its accessibility to the rest of the business.
A world of MDM, is a world full of challenges, perhaps some of which you face today or have experienced today. There’s often a reliance of manual labour when it comes to data management which can lead to human error. Perhaps you end up with the wrong product in the wrong place at the wrong time, and as consumers we experience that pain fairly often.
This can often lead to disconnected data Silos that makes it hard to give customers a seamless experience or an over reliance on excel spreadsheets to manage customer information which makes governance with regulation such as the GDPR a headache, for those of you that are thinking that far ahead to make the 25th May 2018.
The impact of MDM is far reaching, perhaps more so than you might realise, and this webinar will highlight and cover many of those scenarios.
So, on that note, over to Darren.
I know I receive quite a large number of things in the post, and I guess most of the people on the call here receive a bunch of different things as well, we get magazines and catalogues, offers and promotions. Sometimes we get the same thing twice, I know sometimes I receive some things shortly after one another and their even from the same supplier. I guess we’re not always going to stop things being sent, in fact we probably want things to be sent. It would probably be nice to receive things just once or less frequently and a bit more relevant to what we are looking for as well.
Something I came across the other day, I ordered something for my friend’s birthday, the supplier now assumes that I live at the same address that they do and now they receive a whole bunch of different promotional items addressed to me but at their home.
So, what’s going on here? Why is it so difficult to get this sort of thing right? Well, one of the major problems is that the suppliers of vendors are using different systems, and their using customer data in different ways, in different systems. That creates some confusion as to what the customer wants. In a lot of cases these suppliers use third party companies that work with them to do marketing and things like that. They’re also using customer data in different ways, and resulting in that no one seems to share an understanding of who and where the customer actually is.
So, what MDM does, or what it should do behind the scenes is to really help define that single version of the truth, the single version of who the customer is, the single version of their data. And, then define also how that data should be used and when it should be used. Quite simply, answer the question, who is a customer.
Is it the person, for example, who paid for the product or who received a product. Then we need to understand what type of information we can share of our customers with some of our third party suppliers, so they can do some, perhaps some marketing for me, but they have good information to do that from. So, here MDM is going to be helping by defining exactly what information needs to be shared and for what purpose.
What I receive often tends to end up in the rubbish bin, I don’t always need a complete furniture catalogue, I don’t need to know about gardening when perhaps I live in an apartment. MDM is helping us here again because it’s helping us get more insightful information about these customers and allowing us to use that information to understand what they like and what they prefer, and what sort of feedback we can go and give. In some cases we may want to know who they are associated with.
Having such deeper information can really help us support in getting more relevant offers being proposed to customers, and that’s the key point here is that we receive things that are relevant to us.
So, generally it’s about two different things. One, being more personal and the second one is really about developing these new and better customer experiences. Both of these things are two very important business differentiators, whatever business you’re in today, whether it be retail or financial services, or even pharmaceuticals. MDM is really helping customers reduce the time it takes to bring more relevant products, offers and services to their customers.
An interesting example of where MDM is not more obviously used is within the pharmaceuticals industry. I’m sure like me, you go abroad and have taken prescription medication but perhaps you have ran out of medicine and you need to go and get some while you’re away. Have you ever had the experience of going to a pharmacy or some type of drug store and found that they can’t give you the drugs that you want? Even if you go with your prescription in your hand and the product of the packaging that you want they may not have what you need. It’s not that they’re being difficult, most cases it’s because they can’t correlate the version of the molecule that you have with the one that they have, the simple reason that they can’t do that is because every country is using different sets of data standards.
This is a project that’s actually going on with the European Union now and MDM is working behind the scenes at various places to help unify how drugs are coded so you can get your medication safely, either with your standard prescription in any different country across the EU or with an electronic prescription as well.
So, here MDM is really good at supporting standards and defining equivalences. Within the healthcare industry it’s being used to define things like laming standards. These standards are important, they will support product identification by manufacturers, by distributors, by pharmacies, healthcare professionals, and of course you and I can get access to the right products.
Without these standards and checks in place you could ask yourself, what is actually the risk of you taking counterfeit medication? As it turns out, that is a problem today.
In poorer countries we’ve got estimates from the World Health Organisation, that say that up to 1 in 10 pills are actually counterfeit across those type of countries. But it’s not a problem that’s just restricted to poorer countries, it’s also a problem in richer countries too.
So, if we look at it from a business perspective, just in Europe, the drug industry is about 36 billion euros and the medical device industry is also quite large as well, it’s about nearly a 100 billion euros. So, as well as a safety concern about identification and counterfeit there are really some business concerns here as well, again this is where MDM can go and help.
Master Data Management is helping these manufacturers of drugs and medical devices to implement something that is a little bit more coherent in terms of descriptions of their products that will include new industry standards approved across the European Union. These standards are designed to protect our safety.
If you’ve been in hospital and had an operation recently, all the devices, instruments and drugs that are used have actually been scanned beforehand so the hospital has a complete and accurate record of the intervention. MDM has been used to make sure that when the scanner goes beep before the product has been administered, it really is what it says it is on the packet.
Call Centres – two words that can strike fear into many people. Sometimes there are stories of waiting a long time to speak to someone, you give them your name, your account number, your address, your date of birth etc etc. Then, when you explain your problem you’re then transferred to another person who asks you for your name, your address etc etc.
These type of stories are pretty frequent, but here MDM can help as well. MDM is great at holding this view of trusted information that can be shared between people, it can be shared between organisations, between processes, and between companies.
An MDM enabled company can have a single view of all the products and services possessed by an individual customer. And that customer could be a person, an organisation or even for some companies it could even be your pet. This view is really key to defining and developing good customer service. Interestingly, it could also turn call centres into sales centres so by better understanding the customer relationship it can actually become a lot easier to see what they might want or anticipate their requirements.
So, say I get through to the right person I need to talk to, so what do I need? I don’t know if you’ve looked recently at the quite extraordinary number of products and services that telco providers can give us today. They do phones and different subscriptions, but they also provide media services, television services, they can sell us hardware, routers, hubs, computers. They can provide us with insurance solutions, alarm solutions etc etc. They work with a whole bunch of business partners to do this. Of course there’s this great choice and then there’s many ways you can actually piece all these different things together, but how you can combine them or how you can bundle them?
On top of that there are these noation of offers, offers for a new customer, someone who want to upgrade or migrate for existing customers. It can be really complex and confusing for us as consumers, and finding a price and the set of products or service which suit you can be tricky.
So, what’s Master Data Management doing here? Well, it’s helping telcos to define and manage the way that their products and services are defined and packaged and commercialised by taking care of all this complex definition and combinations that are possible. In particular, what we’re seeing now is that the clever use of MDM means that customers can actually go a little but further, they can start to design and personalise their offers to suit them rather than taking packages off the shelf.
So, MDM is helping telcos to extend and differentiate their offering without really making it more complex. We talk about offerings that are moving from being product centric, that’s a one size fits all view, to something that’s a bit more customer centric, something that’s more personalised to you. MDM is a critical component to achieve this.
Customer centricity is vitally important to many industries, but of course within financial services it can be key. By financial services we mean, banks and insurance companies for example.
So being customer centric allows these organisations to propose to their customers, whether their people or customers, different products or services that are going to be adapted to their particular requirements. So to be customer centric you need to understand who your customer is. Understanding the customer involves a number of different things, but essentially there are two parts to it.
The first part that is really key to this is, what’s my single view of the customer, so this is the outside looking in view. This is the view that gives the customer profile across all my different lines of businesses and services. For example, like me, you probably a number of different things with your bank or insurance company, I have a mortgage, I have various insurances, I have some loans with my bank. So all of these different relationships are with the same company but they’re managed with different systems.
What does MDM do here? It helps by bringing together this customer information from these different systems across these different lines of businesses and views and people, and brings that data together into something more coherent in terms of a reliable view of this customer relationship across the entire financial services organisation. That’s really data ‘Gold’ to a banker or an insurance company.
The second thing about customer centric is about understanding how the customer is involved in collecting and managing new information so we can actually enhance our understanding of the customer and their experience. That’s really important to be able to anticipate what they might need in the future. So, looking at their online behavior, the usage of cash machines, their locations etc etc.
So, MDM can help here by gathering this additional information into one place and sharing that across the whole organisation. This would actually add even more data ‘Gold’ to the pile, but really it’s a win, win from the bank or insurance company perspective and for their customers, the bank and insurance company get the opportunity to develop a deeper relationship with their customers, and for a customer it means getting products and services more relevant to them.
The level of personalization here is really important, especially today as we look at the new types of financial services companies that aren’t really your conditional bankers and insurance companies.
So, banks and insurers right now are looking at these organisations and deciding how they’re going to respond to them, are they going to compete or are they going to collaborate with these types of companies.
For those that want to compete, Master Data Management is really important to help manage the customer and product information that help them develop these new experiences and develop new innovative product offerings.
For those banks that want to collaborate, European law now requires that they open up their interfaces and open up their doors to allow customers to access their own banking information from external applications. So these new standards really need Master Data Management to help banks securely share our information with third parties. MDM is really helping us to have more choice in the types of financial services products and services available, as well as a greater choice in the providers who are going to give us those products and services.
If we look at the insurance world, the ability to move beyond price comparison is really important. Many insurance products tend to be fairly standardised, basically because they’re highly regulated but also the inconvenience of that makes it easy for us to go and compare them, I’m sure everyone has been to some sort of insurance comparison site.
But, the market is really moving towards something different, something that can cater specifically to your needs, something very personal. MDM is essential to helping insurers to redesign their product offerings, so that it becomes more personal. For example, health insurance becomes more of a lifestyle choice and adapts to the way you are living, remote monitoring will allow you to insure a car that changes its power to according to who the driver might be.
You can even get insurance at a point of sale if you go to point of sale where you’re paying for your new television, you can actually insure it at that point of sale to make sure it’s insured as you take it home. So, MDM is really helping to provide good customer product and reference data to support these new rapidly involving business models in these industries.
Another industry that is really evolving very quickly is to do with transportation, where getting from A to B is really not just about the mode of travel it’s also about the experience you have along the way.
Travel companies already have a range of offers, many of them with business partners that compliment your journey, with hotels, and food, car rental insurance and many other things. All these things are collectively designed to improve your experience.
The development of these new and competitive offerings is really actually quite a big business, if we look at some of the major budget airlines at the moment, almost 20% of their revenue actually comes from the sale of these subsidiary services. It’s really key, really important. MDM is helping here, MDM is helping these travel companies to design and manage all of the information that describes these different offerings, even those that include business partners. MDM is also helping them design and support loyalty programs, MDM will be managing your personal data, your travel profile, your preferences etc. MDM is also making sure that your consent to share your information with their business partners is correctly recorded.
More generally, MDM is really helping the travel companies get to propose a lot more quickly new products and services that are going to be more suitable, more innovative, and certainly more personalisable for their customers.
Many of us pick up a product in a supermarket and turn it around to see what’s on the food packaging, or maybe you’ve been to a restaurant and wondered what their secret recipe is.
For most companies in food manufacturing this represents a legal obligation to inform consumers about what’s in their products and how that product should be used. It’s obviously important that this information should be managed properly and should be accurate and up to date. That’s where MDM can help, MDM can support these types of requirements by providing a system of record for labelling, labelling information, traceability information, nutrition, packaging information, storage, and many other things. This can happen in many languages, of course many products are sold across the world in different languages and different types of packaging.
MDM provides a system of record for this. It can also provide the information to the manufacturer about where the ingredients came from, who the suppliers were, for example and where the products went to, if we imagine a product has been recalled, you would want to go and trace the product back from the consumer right back to the supplier of the ingredients. So, MDM is really helping to support our food safety and traceability.
So, your food will be safe, but how does your package get safely from Alaska to Africa? We take it for granted that stuff goes from A to B without a particular issue, when we look at today’s supply chains and logistics companies they manage an extremely complicated network of intermediaries and goods list and tariffs, assets, containers and ships, and all sorts of things.
All of these business elements are really key to manage so we can call them all master data, because of the importance their accuracy and availability plays in making supply chains actually work. MDM is crucial here, MDM is making sure this critical business information is reliable and really fit for purpose as well. And, of course MDM is going to provide with the most up to date information to be shared amongst the different individuals, processes and companies that need that.
Another thing we tend to take for granted is when we order something that we get what we ordered.
If you look at retail there may be thousands or millions of items that need to be managed across maybe
thousands of different suppliers. Behind the scenes Master Data Management is managing the complex product and ordering reference data that’s needed to make sure that these products that you want are available to be ordered online or available in store.
So, in the end it could be managing the product descriptions, the ordering codes, to make sure that the
orders can be matched electronically, the barcoding information, all sorts of information to make sure
what we order is what we get.
In industrial manufacturing, it is extremely important that they work to exacting standards, they need to make sure that customer requirements are met, often while supporting safety and design standards as well.
Reliable information is really key to the whole product development cycle, during the design of a product, the building, testing, commissioning, the sales and the support.
So, good data is being served at each stage of this production life cycle, its being served up by typically Master Data Management solutions. As we said before, MDM is working behind the scene here to provide the reference data, in this case it describes the products and service being sold, it can provide the suppliers of the raw materials that are being used to make whatever we’re making and it can also reference the customers to whom these products are being sold, and all sorts of other things as well.
MDM is really allowing the manufacturers to build the right product by referencing suppliers, materials and specifications but crucially it’s also providing support to get good customer data to sales teams and ecommerce sites so we can support better customer ordering services and after sales services as well.
As we said before, if we imagine a product recall situation, to be able to identify correctly the product in question, knowing the whole product information chain that is behind the product is really going to be a huge help. So here, MDM is bringing all that information into a single place so we can reduce the risk of human error in managing information, and we can save some time and probably some money as well.
The final example we’re going to look at is GDPR, the general data protection regulation. This is a revised European law that has come out, it’s received quite a lot of press recently as it’s our right to understand how and why companies are using information.
So what’s personal information? It can be things that are a bit more obvious, your name, address and email, but it can also be things that are less obvious, maybe your location information, genetics information, cultural information, but generally personal information is anything that can identify you as an individual.
This new law comes into force across the EU very soon and it certainly includes the UK as well.
So what has this got to do with MDM? As you can imagine a lot of the companies manage personal data across different applications and systems, it could be marketing systems or it could be human resources systems. But this law requires a centralised view of how a European citizens information is being used for compliance and reporting processes.
So, MDM is really essential to go and help build and maintain this singe citizen view and it’s going to collect all the citizen information from across the organisation, wherever it resides, and build this unified and unique view, and then recalls where and how the citizen information is going to be used to help companies establish this reliable data source that’s needed to support the GDPR legislation.
To summarise, I think we’ve illustrated how Master Data is important, and certainly Master Data Management and how it is essential for most businesses. It’s something we might not see that is going on, we might not see how it is being managed and in many cases we take this for granted. It’s pretty clear that when things go wrong with Master Data we, as consumers, can certainly feel the impact in many different ways.
The view of leading companies is that they’re very aware of the significant of the business value of Master Data and in particular of its affect, if it’s wrong or if it’s right, of their own customers. So for them it’s become more of a financially accountable asset, just like you would imagine within organisations.
When we look at us, we look at us as individuals and we look at where we are today and moving into the future. There’s going to be even more new and exciting ways that information is going to be reaching our lives with different products and services , and we can imagine things like robotics, AI, augmented reality, autonomous vehicles, all these types of ambitions depends on the availability of really good information. Master Data Management is, quite simply, all about providing that information.
So companies that master good information will be able to provide us with more choice, hopefully a better service and even in some cases maybe help to improve the quality of our lives.
With that, I’ll pass it back over to you Michael.
Thank you Darren, and thank you all for taking the time to tune in today.
I hope you found the session of value and it helped you connect Master Data Management to yourselves as the consumer, as well as to the customers you seek and serve.
We’ve already had a couple of questions, but given the time, I think we have time to answer just one of those. If you do have any other questions, we will email as a follow up and then feel free to reply. Alternatively, my email address will be at the end on the last slide so feel free to email me with any questions.
So, the one question we have time for is…
“I have ERP and a CRM system, do I really need an MDM solution?”
So, the first question is, why are you here? For those of you knew to Master Data Management, you’re here to learn a little bit about what MDM is, and we’ll help you by connecting it emotionally to the real world that you and your customers live in.
Thanks for the question. It’s quite a common question because we imagine that the ERP is a system that can control our universe, but at the end of the day most organisations will have some form of ERP. We can ask ourselves, how good is the information that we are using within that system, and how unique is your ERP?
Some companies have more than one system. So, MDM can be used to actually help improve the reliability of data within one or multiple ERPs and help data flow from one to the other very fluidly. For many companies also, the ERP is not going to be the only business application that you’re going to have and you will want to integrate it to other applications, other business partners and perhaps also to other companies, you want the ability to share your data outside of your organisation. This again, is where Master Data Management can help, by providing the most up to date and reliable information across all types of business applications and processes.
Thank you, I hope that answered the question.
I’d like to leave you with just one action point to take away, and that is to email me
if any of the following scenarios are relevant to you:
1. If you are unable to see all of your data, don’t trust what you
can see or are unable connect silos together to gain any sort
of insight or business value …
2. If you cannot easily call up,
and see, each customers
purchase history …
3. If the process of getting
new products to market is
long and painful …
4.And if you’re not sure
how to tackle the
upcoming GDPR …
We would be happy to model a scenario based demonstration for you and your business users around how you could tackle these particular business challenges.
A recording of today’s webinar will be emailed to you in the follow-up – and can I please ask that you take a minute or two to complete the short survey that pops up at the end of this webinar, as it will help us continue to provide content people want to see and hear.
Thank you all for attending and we hope to speak to you again soon.