A boxed approach to master data management (MDM) implementation offers pre-built data models, data adaptors and integration adaptors and other best practices out of the box, helping overcome business as well as technical hurdles associated with MDM.

1. • Cognizant 20-20 Insights
Innovations in MDM Implementation:
Success via a Boxed Approach
Pre-built processes, data models and best practices out of the box can go
a long way toward mitigating the risks associated with MDM projects.
Executive Summary overall IT investment, Gartner predicts the MDM
market will grow 21% in 2012 — the biggest leap
The market for master data management (MDM)
since 2008.1
has exhibited phenomenal growth since 2009
and the outlook appears promising. But despite A sluggish economy demands operational effi-
the view that MDM is an essential enterprise ciencies and quicker returns from all technology
technology, many MDM implementations are far investments. This has increased the focus on MDM
from successful. as MDM is a critical enabler for efficient operation
of most enterprise IT systems like ERP, marketing
We believe that many of the critical issues that
analytics, CRM and more. MDM provides these
cause MDM projects to fail are actually common
systems with accurate and standardized data that
across most engagements; hence, we propose a
in turn improves the operational efficiencies of
different approach to address these challenges.
these systems, enhancing overall customer sat-
We believe that a boxed approach, which offers
isfaction and decision making. But in spite of its
pre-built processes, data models and best
importance, a successful MDM implementation
practices out of the box, can go a long way toward
still remains hard to achieve. Many organiza-
mitigating the risks associated with MDM imple-
tions that have initiated an MDM implementation
mentations.
project have struggled at various stages, resulting
In this white paper we explore how the critical in high failure rates across verticals.
risks and concerns of an MDM implementation
We believe that a boxed approach can significant-
may be addressed through a boxed approach.
ly decrease this failure rate and help organiza-
Master Data Management: A Primer tions realize quicker and better value from MDM
implementations.
MDM includes tools, processes and best practices
to help acquire, standardize, de-duplicate and Success via a Boxed Approach
cleanse business-critical, shared data entities
A boxed approach is a business-centric method
and distribute them to CRMs, analytics systems,
that provides data models, best practices,
business intelligence systems, campaign
workflows and data adaptors specific to industry
management systems, etc. Despite a slowdown in
needs. These features come pre-built and ensure
cognizant 20-20 insights | september 2012

2. that time and effort is spent on implementing to consolidation of the critical requirements and
and optimizing a client’s specific business needs use cases, there is minimal effort needed for cus-
and not on general industry-specific require- tomization during the implementation process.
ments common to most implementations. The For example, a boxed approach will include data
boxed approach not only reduces time and effort adaptors for each industry; namely, adaptors
required to implement successful MDM projects for information feeds from Bloomberg, Reuters,
through its pre-built processes, but it also reduces IMS and D&B, among others. By providing these
implementation risks through its industry-specif- pre-built data adaptors out of the box, imple-
ic data models, data adaptors and integration mentation time and cost is significantly reduced.
adaptors that also come pre-built out of the box. Due to lower total investment, ROI can be more
quickly achieved.
Examining the Challenges
A closer look at the critical barriers to success Requirements Definition
for MDM projects reveals that the key reasons for Understanding the scope of a project and
the failure of MDM projects are typically business properly defining the critical requirements based
related rather than technical. on the scope can make or break a project. It is
They include failure to justify extremely important for business stakeholders
A closer look at the the budget, perception of to understand the systems and the MDM require-
critical barriers to long ROI realization timeline ments in depth to ensure a smooth and error-free
requirement definition that does not miss any
success for MDM and difficulty defining critical vital needs. The boxed approach is driven by
requirements, among others.
projects reveals that pre-built use cases, processes and workflows that
the key reasons for As we describe in the following are derived from firsthand experience implement-
sections, we believe that a ing MDM projects. Hence, they cover a large part
the failure of MDM boxed approach can mitigate of the enterprise’s business-critical, industry-
projects are typically many of these business specific requirements out of the box. The boxed
business related risks associated with MDM approach usually comes with pre-implemented
implementations. In the next industry-specific features such as a “know your
rather than technical. sections, we discuss some of customer” module for banks, a loyalty card
the key concerns surround- management module for retail and consumer
ing MDM projects and elaborate how a boxed goods manufacturers, clinical trial management
approach may alleviate some of these concerns. workflow for life sciences, etc.
Budget Justification Senior Leader Buy-in
Justification for any major investment centers Support of the senior executives and major stake-
on the returns that can be generated. A typical holders is a critical necessity for the success of
MDM implementation program takes two to three any project. Since MDM projects are perceived as
years to complete; the returns are normally technical in nature, there is typically limited buy-in
realized a year from the time of project initiation. from the business side. However, MDM projects are
In contrast, the boxed approach ensures a quicker critical enablers to vital business processes such
time to market that translates to faster return as customer relationship management, supplier
from the investment. This guarantees quicker management, product management, etc. and
buy-in from the business stakeholders. From our hence require enterprise-wide support and coor-
experience, pre-built data models, integration dination from senior business leaders. A boxed
adaptors for downstream systems and other out- approach addresses the critical requirements of
of-the-box features can constitute up to 70% of the business and highlights the business-specific
key technical requirements and for some clients benefits that the project will provide. The boxed
reduce configuration and implementation time by approach also brings business use cases such as
up to 40%. customer on-boarding, compliance reporting, etc.,
from the get-go. These use cases can be directly
ROI Achievement related to cost savings from improved customer
ROI is a major factor in making any business satisfaction, enhanced compliance reporting,
investment decision. While normal MDM projects better decision making, and more. This ensures
tend to have a high total cost of ownership (TCO), greater visibility of the potential benefits of the
a boxed approach lowers TCO dramatically. Since project, and greater involvement from business
much of the implementation effort is reduced due stakeholders.
cognizant 20-20 insights 2

3. Complex Delivery Requirements Deployment Flexibility
MDM projects have complex delivery require- MDM-in-a-Box can be installed on the premises or
ments that are further exacerbated by the need delivered via the cloud as software as a service
for platform customization. The boxed approach (SaaS). This ensures that
captures a large part of the standard require- the enterprise can deploy
ments including industry-specific data adaptors, the options best suited to its
Our MDM-in-a-BoxTM
use cases, downstream integration adaptors specific business needs, thus platform is an industry-
to integrate with SAP, Siebel, SFDC, etc. — all providing ample financial and aligned, business use
of which reduces delivery complexity to a large operational flexibility. The
extent. Deployment risks are further reduced SaaS model can be further
case-driven solution
due to minimal platform customization require- enhanced with a business that can be quickly
ments owing to pre-configured data models and process as a service (BPaaS) deployed to drive
pre-built industry-specific accelerators. layer,2 which gives the client
an option to outsource the
business efficiencies in
Presenting Cognizant’s MDM-in-a-Box resourcing aspect of an MDM less time and at a lower
Our MDM-in-a-BoxTM platform is an industry- implementation through cost than traditional
aligned, business use case-driven solution that data stewardship services
can be quickly deployed to drive business effi- managed by us.
MDM approaches.
ciencies in less time and at a lower cost than
traditional MDM approaches. It also facilitates MDM-in-a-Box Benefits
increased customer satisfaction, improved data • Based on a business-driven framework.
standardization and enhanced data governance,
among other benefits. The solution comes with
• In most cases, less than 30% to 40% of cus-
tomization is required.
pre-built, industry-specific data models, out-of-
the-box support for integration with industry-spe- • Value realized within three to six months of
cific data sources and additional functionality to deployment for on-premises solutions, and
address key master data requirements of various even sooner for cloud solutions.
industry segments including financial services, • Driven by industry-specific processes, work-
insurance, healthcare, life sciences, consumer flows, use cases and best practices.
goods, manufacturing and logistics and retail.
• Significant reduction in total cost of ownership.
MDM-in-a-Box helps implement MDM projects • Can easily integrate with clients’ existing MDM
effortlessly through its pre-built data models, solutions.
features and workflows that cover up to 70% of
critical requirements. Compared with traditional Key Solution Features
implementations, configuration and implementa- • Exhaustive pre-built yet flexible data models to
tion time can be reduced by up to 40%. Because capture information on critical entities.
it is an end-to-end solution based on a business- • Pre-built industry-specific features aligned
driven framework, implementation benefits can with business-specific use cases.
be more quickly realized.
• Pre-built hierarchies for critical entities with
Best-of-breed Solution support for several industry-standard entity
views.
We understand that every business is unique,
with its own data obstacles, people challenges • Pre-configured adapters to load back-office and
and integration concerns. MDM-in-a-Box is a front-office data from external data providers
multi-vertical MDM solution that requires 30% for data enrichment services.
to 40% of functional customization to address
an enterprise’s specific business and technology
• Configurable, Web-based data governance
application with pre-configured multilevel
needs. Other necessary features come pre-built workflows.
to address industry-standard use cases and do
not need much customization, making MDM-in-a- • Advanced services integration frameworks
to integrate data in the hub with downstream
Box a best-of-both-worlds solution.
consuming systems.
cognizant 20-20 insights 3

4. Footnotes
1
http://www.gartner.com/it/page.jsp?id=1886314
2
BPaaS combines advanced algorithms, global talent and outcomes-based commercial models to help
companies simultaneously optimize processes while reducing the handling costs of certain critical
business processes such as customer service, data management, document management, etc. By
embracing BPaaS, companies can shift resources from non-differentiating activities and concentrate on
growing their core competencies.
References
• Rob Karel, Connie Moore, Charles Coit, Sander Rose, “2011: It’s Time for the Business to Own Master
Data Management,” Forrester ID: RES58399.
About the Authors
Alok Saxena is a Senior Manager within Cognizant’s Business Consulting Practice and leads the CRM
and MDM consulting practice in APAC. He has over 10 years of experience in IT and business consulting
domains including MDM, CRM and CRM analytics within the pharmaceuticals, banking and consumer
goods industries. He has an MBA from NITIE, Mumbai and a bachelor’s degree in mechanical engineering
from I.E.T. Indore. He can be reached at Alok.Saxena@cognizant.com.
Reshmi Nath is a Senior Associate within Cognizant’s Business Consulting Practice. Reshmi has over six
years of experience in the technology and consulting domains in the U.S. and India. She has an MBA in
marketing and finance from Michigan State University and a bachelor’s degree in computer science from
Bemidji State University, MN. She can be reached at Reshmi.Nath@cognizant.com.
About Cognizant
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