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MDM – Speaking the “Language” of Business

 

Part 5 of a six part series on the "New Age of Master Data Management"

 

Data management continues to take on an ever-growing range of activities as the role of data has evolved and expanded for many organizations. Business agility and real-time insight are inherent requirements for many organizations. To meet such requirements organizations need right-time data on a continuous basis, where master data management initiatives are integral to processing business-ready data.

MDM software solutions are evolving as well, to better meet business needs. The new directions of MDM software obviously carry a heavy package of sophisticated technology. Analytics processes now utilize numerous disparate data sources that need context and relationship information that comes from trustworthy and relevant master data. Some MDM solutions are utilizing technologies like graph databases to take advantage of multi-dimensional capabilities to more expansively and agilely handle relationships across all data types. More analytics processes are now providing information and insight primarily for business users who aren't necessarily highly adept at hands-on technology or data management, which opens up new challenges and opportunities for MDM vendors.

The value of these solutions is heavily tied to business needs and objectives. And this value must be clearly and honestly communicated to a growing array of business roles -- in the language of those business users.

In the 'New Age of MDM', with greater business participation, should IT and data management team members utilize more of the language of less technical business roles when in discussions related to MDM purchases, implementations and usages?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The "Languages" of MDM

Often conversations regarding master data management have been among IT and data management professionals, including more tech-savvy business roles involved in data management. The "language" of MDM started off primarily related to the worlds of IT and data management teams – in other words "techy talk".

But it's likely that this original "language" of MDM is now insufficient for meeting current business objectives and requirements, with the increased (and necessary) involvement of business roles, and the importance of selling the value of MDM to business managers and non-IT decision-makers. A growing lineup of business roles are increasingly involved in data governance discussions regarding practices, policies, cultural changes, and processes, as well as how to develop cross-functional teams and remediate silos for systems and data. Discussions with business roles also focus on the many ways that MDM can underpin important business initiatives and desired outcomes for objectives.

Conversations about the purchase of MDM software solutions can involve less technical roles. High level managers and C-level roles may be part of the decision-making processes: deciding if master data management itself should be adopted; understanding how MDM supports business requirements and goals; choosing which MDM software technologies to utilize; determining metrics and assessing outcomes related to MDM initiatives. Obviously these conversations also involve IT and data management teams, who now must be prepared to communicate well with different business roles.

 

Communicating in Customer Business Language

Those of us who work with software vendors (no matter which "side") are clearly aware that marketing and sales efforts for software solutions can deviate linguistically from technical terminology when communicating with less technical business users. But with the recent evolutionary changes for MDM software offerings, there is an increasing need for software vendors and practitioners of MDM to speak the language of the business.

When marketing and selling their MDM software to business roles, some vendors are dropping the use of the term "master data management" in order to bypass the "negative baggage" of traditional MDM solutions. Software vendors with new approaches to MDM are utilizing 'new language' to better describe what these new approaches really do, and how they better align the value with Business. Beyond simply being marketing efforts, most changes in 'language' are fairly honest attempts to more clearly connect MDM practices and solutions to real business needs, desired outcomes and advantage – in terminology that conveys realistic meaning to business users and decision-makers.

Business roles involved in buying decisions may not know what MDM is, can get confused or lost in the terminology and technology, can see it as too complicated – all of which can interfere with the prospective customer's understanding of why MDM is important for making competitive use of data. It's legitimate for vendors to focus on the high level of what MDM contributes to improve data and business processes, and what the business benefits are for each organization. Focus should also cover how the MDM solution handles business needs relative to existing organizational infrastructure, along with business practices and processes – and ultimately business objectives and desired outcomes.

If MDM software vendors demonstrate clearly how the technologies connect to achieving business objectives and outcomes, it better enlightens prospective customers on the benefits and essential nature of master data management – both in terms of the MDM practice and the supporting technologies. And very importantly, business language is essential to uncover business problems to be solved and how data management fits into overall business strategies.

Obviously there is a danger of over-simplification. MDM implementations can take time, both for setting up the technologies, and to institute cultural changes, data governance practices and new cross-functional processes. These aspects of MDM practices and solutions must be honestly communicated. Fortunately we are seeing great advances by different vendors to more quickly get MDM implementations up-and-running, and to take new approaches to how MDM programs are run in order to more clearly show the benefits of MDM and to produce them in a timely manner.

 

How MDM Software Vendors Speak the Language of Business

Often the "buyers" of enterprise software consist of multiple roles in an organization. No longer is software purchasing solely the domain of IT or other technical teams. There is frequently a composite "buyer" that draws on both influencers and decision-makers. Obviously technical teams perform a very important role in the purchase of software, more often as influencers rather than the final decision-makers. Business roles involved in enterprise software purchases can include: mid-level managers and business unit managers whose teams will be impacted by the use of the software; VPs who approve purchases; CEOs and CFOs who influence or dictate purchase decisions; and even staff in accounts payable who enact purchase transactions.

There are numerous software vendors with various flavors of MDM solutions who are leaning further into the language of business to conduct marketing and sales activities, and discussions about implementations and usage. Here are a couple of examples:

Enabling Content Management and Digital Interactions

Data and analytics have become essential components of the marketing efforts of most organizations. As a natural evolution, certain marketing technologies have embedded master data management capabilities to provide a more seamless application for business users. Some vendors of such marketing technologies don't call out MDM per se as a component of the solution.

A company that started as a traditional PIM vendor evolved its software into a solution for managing complex product information and multichannel content, for multiple roles in the information supply chain. For the user, the MDM / PIM part is "invisible". Prospective customers see this solution as an application that supports multichannel interactions, sophisticated content management and digital communications / marketing. The vendor places a strong emphasis on business user access to solution capabilities which further encompasses the business user perspective and language.

The solution provides a means to help resolve the "information fragmentation" that plagues organizational efforts to address the complexities of content management and usage, including highly variable sources (user-generated content, outside experts, brand) and diverse distribution channels (corporate website, mobile, social). The solution supports efforts to reconcile brand consistency and customer experience requirements that are necessary for successful digital marketing.

These are all very much business problems that are being addressed by business teams: digital marketing, ecommerce, content management, product strategy, and so on. The vendor reveals the value of the solution in the language of both business buyers and users. In marketing the solution, the software vendor focus isn't on data / information per se, but on what business users need to do with information and content, and how solution capabilities help them manage these activities in support of digital business needs.

 

Breaking Free from Traditional MDM through Data-Driven Business Applications

A vendor has introduced a relatively new "master data management" platform that is designed to break away from the traditional aspects of MDM software solutions. Instead of basing MDM and other data-related capabilities on relational databases, which has been a common choice until recently, this vendor loads combined and curated data into a NoSQL graph database. This allows the vendor to provide a scalable multi-tenant platform-as-a-service to innovate the creation of 'data applications' that are frequently closely tied to business functions and initiatives.  

On the technical side, this approach supports oversized datasets and accommodates rapidly evolving schema, something most relational databases find difficult. Graph databases provide a greatly improved method to delineate relationships between people, data, and things.  

For business users, this data management solution provides the means to build data-driven business applications that align with the goals and functions of the business. Business users can construct applications that are industry-specific to perform exactly the processes that are needed.

Business users don't need to know that the platform is based on an MDM infrastructure. This vendor wants to give business users the equivalent of "consumer apps" that produce information and analytics results quickly and easily. The vendor frequently speaks "business language" to help business users grasp these concepts.

For business users to successfully take advantage of this platform, the software capabilities and processes will have to be couched in the language of the business. The platform will have to carefully manage business user access based on guidelines and activities that make sense to less-technical business roles. As with any data management software solution that strives to support usage by business roles, IT and data management teams must be partners with the business to ensure successful outcomes. Collaborative capabilities enable such partnerships. So it will be interesting to see how successfully this vendor empowers and protects business usage of its MDM-based platform.

 

Going Beyond the "Traditional Language" of MDM

In the 'New Age of MDM', we are seeing great diversity as to how vendors, practitioners and organizations talk about MDM. Changes in language are essential to better connect MDM practices and solutions to real business needs, desired outcomes and value – in terminology that conveys real meaning to business management and decision-makers.

We'll continue to see a broadening variety of solutions that build on MDM, while deviating from traditional MDM implementations, in order to offer more business-relevant capabilities. Realistically, even the term "master data management" can be confusing for business roles in many organizations that could benefit from implementing MDM practices and technologies. It can be advantageous and helpful when vendors use new but honest terminology to better demonstrate business value and help prospective customers understand the 'why' and 'how' of implementing master data management initiatives.

It seems that the more innovative the MDM-related software solution, the greater the need for new ways to work directly with business roles and to communicate in the language of business. One of the stumbling blocks for such innovation of software and language comes from analyst firms that cover MDM software solutions. Increasingly certain analyst firms have become trapped by their inexact definitions of what kind of solution constitutes an "MDM offering", when evaluating MDM vendors for benchmark reports. Many vendors with MDM-related offerings are trailblazing new directions for MDM, but are excluded from certain industry benchmarks because of the narrow definition held by these firms. Analyst firms following such a path are performing a disservice to buyers who are interested in the right approach to MDM for their organizations, or who are in need of an MDM-based offering that provides business applications tailored for immediate needs.

 

Image source: hastac.org

 

About the author: Julie is an independent consultant and industry analyst for B2B software solutions, providing services to vendors to improve strategies for customers and target markets, products and solutions, and future direction. Julie has expertise in several solution spaces including: data integration and data quality; analytics and BI; business process, workflow and collaboration; digital marketing, WCM and social media; and the pivotal importance of user and customer experiences. Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt For more information: Julie Hunt Consulting – Strategies for B2B Software Solutions: Working from the Customer Perspective

 

Master Data Management Rebooted

 

Part 1 of a multi-part series on the "New Age of Master Data Management"

 

The 'New Age' of Master Data Management

It's about time that master data management (MDM) enjoyed a 'new age'. The creation and use of master data for business purposes has always been a good idea. The goal has been to make sense of all data that touches the organization: clean it up, add context, enrich it, and put it to work strategically as well as operationally.

Unfortunately, MDM has been plagued with certain problems from the very start. This stems mostly from the fact that MDM lands hard on some of the messiest aspects of an organization: data silos, unconnected systems and processes, management turf wars, and organizational roadblocks to disparate people working effectively together for common purpose.

 

Why Does Master Data Matter?

As the importance, value and sheer volume of data assets grow, so does the critical need for trustworthy, up-to-date information that is ready-to-go for any purpose. MDM processes consolidate data from numerous sources in meaningful ways. Master data also provides context and reveals data relationships for sources like big data that often exist as fragments without useful referential connections.

Master data has a large and growing role in areas that matter to organizations: strong brand presence, multichannel customer interactions, right-fit content and information, and highly variable buying journeys.

Analytics, particularly of the real-time variety, produce more realistic and trustworthy results when utilizing master data. Master data is often a key part of predictive analytics in support of: supply chain processes; personalization for improved customer experiences; logistics; operational optimization; and safety and preventive procedures.

A core element of MDM is data quality. Improved data quality impacts endless aspects of the business for reasons that should be obvious. But all too often, business management fails to comprehend how much poor data quality impacts profitability, productivity and even perception of the brand. Real world incidents that have been repeated at far too many organizations include:

• Inconsistent data of poor quality has led to extensive quantities of items in warehouses to "disappear" from systems records, never to be sold or consumed by the business. This can amount to millions of dollars of losses.
• Contradictory and confusing product lists and catalogs that deter purchases by customers and make sales staff look stupid – again with no purchases resulting.
• Costly pricing errors that persist undetected over time can have breath-taking negative impact on the bottom line.

 

Roadblocks, Detours, Dead Ends

Over time traditional approaches for MDM implementations have faltered for several reasons, many of which echo the failures of traditional ERP installations:

• Implementations take too long and cost too much.
• Project scope is often much too large.
• Business and IT teams are poorly coordinated for achieving the desired end state.
• Results fail to meet important business needs and / or show value in an obvious and timely fashion.
• Traditional approaches lag in keeping up with new technologies.
• Solutions have delayed including new data sources like the many varieties of big data.

A continuing obstacle is the lack of involvement of upper management with such important activities. If organizations want to tap into more data that is trustworthy and business-ready, it requires buy-in from upper management on down. Such buy-in is shown through clear commitments, upper management champions, and real data strategies – basically understanding the high value of data and what it takes to achieve it.

 

The Reality of MDM: People and Politics

What many people get wrong about MDM is thinking that it's all about the technology. In reality, it's much more about people, processes, and (unfortunately) politics. The people and politics of the organization can throw up significant obstacles to successful MDM programs. This is more likely to happen in organizations where upper level management has failed to provide its leadership and involvement in MDM implementations.

Silos permeate organizations from top to bottom, and not just in terms of software systems or digital assets. Collaboration between people is often limited. Internal politics can bring on secrecy or "turf wars" when it comes to the ownership of data and business processes. Resistance to change, lack of trust, desires to "hoard" data and information all come into play. Orchestration and collaboration of business and technical teams have always been critical to MDM success, but can be derailed by internal silos and politics.

Of course, technology provides an important means to achieve MDM implementations. But many vital activities aren't technical. For MDM and data governance to be successful, distinct changes must take place in organizations to eliminate the many silos that prevent the generation of reliable and up-to-date master data.

Not surprisingly, when things go wrong, organizations want to blame MDM technologies for the failures, instead of facing up to what really ails the organization. However, traditional MDM solutions have had significant limitations and often don't do much to help with the "people problem".

 

Wanted: Improved Approaches

A classic approach to MDM, the "bottom up" method, has not worked well simply because unsynchronized teams are trudging separate long roads to achieve the "desired end state" and often don't ever get there. It's easy to imagine the many ways that this method can be derailed. Instead, businesses benefit most from MDM approaches that work the way the business and its employees need to function to achieve real goals and objectives.

One of the most important changes to MDM approaches has organically grown out of the fact that much of MDM and data governance revolves around business use cases and business users. So it's gratifying to see more overtly business-defined approaches that not only delineate the approach but are enabling changes to the technologies that support them. These business-defined approaches reflect the complex, sophisticated needs of many organizations:

• Working from the desired end state and / or from the requirements of complex business problems to create master data management processes.
• Choosing contextual and analytic MDM solutions over traditional MDM tools that can handle new approaches for multi-dimensional and complex hierarchical data, including social and commercial graphs that underlie business use cases such as customer-responsive interactions across digital channels.
• Utilizing new MDM platforms that simplify the development of industry-focused business applications that take advantage of master data to solve business problems.
• Transforming model-driven approaches to be more flexible and agile in order to work with existing business processes as the starting point (instead of creating new processes), to deliver business value more quickly. IT and business teams can then transition to optimizing various processes for additional value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In a real world example, a pharmaceuticals company has utilized a new MDM solution to uncover significant information that improves the success of promoting drugs to individual healthcare organizations. Such information includes:

• Which insurance companies or payers accepted by the healthcare organization actually cover the drugs
• And for those payers, which insurance plans provide coverage
• What contracts for the pharmaceuticals company are already in place
• What other sales teams in the same company are already promoting to the healthcare organization
• Other important influence and decision-making factors that derive from complex hierarchies and networks of relationships

Running through such an analysis based on master data before approaching a healthcare organization helps the sales team determine if any business opportunities exist, and reveals better ways to approach contacts in the organization.

 

Master Data Management Rebooted

In the next five posts, I'll present and analyze what is changing for master data management approaches and solutions, including new technologies, and the evolutionary involvement of business roles in MDM and data governance.

One of the final aspects that I'll explore is this: is it time to quit calling it "master data management" and devise a name that better fits MDM Rebooted?

 

Image Source: hbr.org

 

About the author: Julie is an independent consultant and industry analyst for B2B software solutions, providing services to vendors to improve strategies for customers and target markets, products and solutions, and future direction. Julie has expertise in several solution spaces including: data integration and data quality; analytics and BI; business process, workflow and collaboration; digital marketing, WCM and social media; and the pivotal importance of user and customer experiences. Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt For more information: Julie Hunt Consulting – Strategies for B2B Software Solutions: Working from the Customer Perspective

 

Customer Journeys Trump the Traditional Sales Cycle

                                Originally published on CMSWire

 

While pointless debate continues in organizations as to who "owns" the customer experience (the customer of course!), the responsibility for nurturing and shepherding the continuous customer experience belongs to all teams that impact customers. At the core, much of the work should be accomplished by strong, continuously evolving collaborations between marketing and sales. Unfortunately in many companies there are still ridiculous and harmful walls between sales and marketing – and a lot of political nonsense, mainly tied to the 'blame game' when forecasts aren't met and deals aren't closed.

In reality marketing and sales have intertwined roles for engendering positive outcomes from customer journeys, whether they realize it or not. But all too often the efforts of these roles are disjointed. Both groups should work together to serve customers in every sense. Sales and marketing teams already have highly complementary activities when it comes to customers – the effectiveness of these activities is amplified when these two teams deliberately work together.

To connect authentically to what customers need and want, customer journeys trump the traditional sales cycle. The sales cycle has been an inside-out process, tied primarily to sales goals and operations. The customer lifecycle with a company comprises an ongoing journey before, during and after individual sales events. Sales and marketing teams need to be part of continuous customer engagement for the entire journey. Persistent nurturing of customer experiences also plays an important role in customer retention and advocacy, and sales has a responsibility here.

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Gary Magnone

 

 

The Customer Journey: Sketching Potential Experiences

There are organizations that still think that they can "design" customer experiences or regulate customer behavior. That's not ever going to happen, and it's a waste of time. The journey - the experiences - always belong to the customer, based on customer decisions. Many customer journeys are complex and erratic. Customer behavior can be unpredictable – journeys take twists and turns due to external influences and events beyond the organization. For one company and its products, there can be multiple customer / buyer journeys – just as there can be multiple customer categories and segments. It all depends on the products, how they are sold, the targets, and how well a company wants to interact with customers.

Customer journey square pegs cannot be hammered into company-desired round holes to fit inward-focused business processes. This is especially true for sales cycles or processes that only care about how a sales team wants to function – without any connection to how customers want to buy products and services. But organizations can design and orchestrate inspired and comprehensive support for customers across all internal functions and interaction channels anywhere. They can make sure that customers encounter consistent experiences anytime and that customers get what they need at any point in the journey.

Deep and broad customer understanding is necessary to: map customer journeys from customer perspectives; segment customers realistically; and comprehend customer needs and wants. Continuous customer intelligence is invaluable for nurturing better customer interactions that will make it easy for customers to buy from a company – and want to come back for more. Many current marketing processes provide what the sales team and others can put to good work: collections of customer action / transaction data, and the results of various analytics such as behavioral, social media and marketing automation.

Organizations also need to do a much better job of constructing integrated customer strategies at all levels, and should designate customer insight as a strategic core capability for the entire organization. Many companies still fall short on customer strategies, including specific customer experience strategic practices, as a recent Forrester study shows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Forrester Research

 

 

Aligning Sales Functions with the Customer Journey

Far too often organizations fail to:

• Understand customer journeys at all
• Connect sales process to customer journeys and to what marketing is doing to improve and nurture customer experiences
• Build content marketing approaches that support how the customer wants to buy and interact – and then interrelate sales process to these approaches

Too many organizations still only think in terms of the traditional sales cycle when considering sales interactions with customers – frequently with revenue as the main goal. There is little acknowledgement of what the customer needs or how the customer wants to do business. Of course revenue matters. But when the main focus of sales efforts shifts to the customer's journey, and the goal is positive customer experiences that can lead to purchases, revenue follows. When revenue is the main focus, the customer seems to disappear along with potential sales.

The customer journey at its core is about people learning about products, finding out how to buy, deciding if they want to buy, then buying or not. The right content plays a key role for many steps in the journey. The customer journey can also include: coming back multiple times, getting post-sales support, recommending products to friends and colleagues, "keeping in touch", and growing a relationship. So sales must be very much a part of all of this, especially in a world where many buyers may be halfway through (or more) their buying journeys before considering talking to sales.

 

 

 

                                            

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Forrester Research

 

 

 

Content Approaches that Serve Customers, Marketing and Sales

First and foremost content marketing must provide high quality content that potential customers want and need at different points of the customer journey. And that same content can align well with the needs of sales teams. But this will happen only if key elements of sales processes are mapped appropriately to the customer journey. The continuous exploration of customers and what they value throughout the customer journey points the way to the content that will deliver authentic value to customers and help to build trust in the vendor organization, particularly sales.

Sales teams want to take advantage of the same customer intelligence that greatly improves content, especially for targeted, highly personalized messages and information sharing. Intelligence delivered by behavioral analytics, marketing automation, and other customer-focused processes have parallel purposes to help both marketing and sales better engage and serve customers. And for content marketing to deliver timely and relevant information from the customer perspective, continuously updated customer intelligence is critical.

Content that answers customer questions about the business problems they face, or addresses their interests in certain types of products and services, is not only the right content for effective content marketing but also the right content for sales teams. Both sales and marketing will better engage customers with content that demonstrates a deep understanding of the customer's business, particularly when that content explores how to solve problems, improve operations or expand business reach. Content that pushes the current customer mindset while teaching new ideas for the business is highly effective.

Many customer journeys begin well in advance of an active search for solutions. Potential customers are often more receptive to exploring new thinking long before they have defined a problem or need. Content marketing opens the door to planting ideas in the back of customer minds, regarding potential business issues and opportunities, and new ways to handle them. Content that addresses topics of interest to specific customer segments has the strong potential to deliver unique value and increase meaningful engagement.

In many companies, sales teams don't put much time into current customers – until they want to sell them something new. Content marketing is a means to keep sales teams in touch with customers continuously after the sale, without having an overt ax to grind. Sales teams can make use of quality content to interact with customers and find out real information about their ever-changing needs and desires. The right content can be a great conversation starter – as long as sales teams sit back and listen to what customers have to say.

 

The Engaged Customer is the Glue of Marketing and Sales Success

It could be said that everyone in a company is in sales and marketing. But the better notion is that everyone is in the business of improving customer experiences to make it easier for customers to purchase and make use of products and services. Personalizing the journey before, during and after the sale needs the involvement of all levels of the organization, driven by a hierarchy of customer-focused strategies.

As with responsive marketing approaches, sales teams must abandon one-size-fits-all "sales cycles" and personalize interactions with prospects using continuously updated customer insight and sophisticated content marketing approaches. By truly interacting with customers throughout the customer lifecycle, sales teams should have a better understanding of when a customer is ready to purchase and what it will take to help them make the buying decision.

 

About the author: Julie is an independent consultant and industry analyst for B2B software solutions, providing services to vendors to improve strategies for customers and target markets, products and solutions, and future direction. Julie has expertise in several solution spaces including: data integration and data quality; analytics and BI; business process, workflow and collaboration; digital marketing, WCM and social media; and the pivotal importance of user and customer experiences. Julie shares her takes on the software industry via her blog Highly Competitiveand on Twitter: @juliebhunt For more information: Julie Hunt Consulting – Strategies for B2B Software Solutions: Working from the Customer Perspective