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Master Data Management Solutions for Modern Enterprise Operations From Denial and Deception to Discipline and Dreams: Data Management in the Age of General Data Protection Regulation (GDPR) Big Data – Threat or Opportunity? Data: An Increasingly Valuable Commodity The Evolution of Master Data Management How to Make the Most of Data
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Master Data Management Solutions for Modern Enterprise Operations From Denial and Deception to Discipline and Dreams: Data Management in the Age of General Data Protection Regulation (GDPR)
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
Contents
Big Data – Threat or Opportunity? Data: An Increasingly Valuable Commodity The Evolution of Master Data Management How to Make the Most of Data
Foreword 2 Tom Cropper, Editor
From Denial and Deception to Discipline and 3 Dreams: Data Management in the Age of General Data Protection Regulation (GDPR) Michael Hiskey, CMO, Semarchy and Richard Branch, VP & GM, Semarchy UK Ltd
Published by Global Business Media
Published by Global Business Media Global Business Media Limited 62 The Street Ashtead Surrey KT21 1AT United Kingdom Switchboard: +44 (0)1737 850 939 Fax: +44 (0)1737 851 952 Email: info@globalbusinessmedia.org Website: www.globalbusinessmedia.org Publisher Kevin Bell Editor Tom Cropper Business Development Director Marie-Anne Brooks Senior Project Manager Steve Banks Advertising Executives Michael McCarthy Abigail Coombes Production Manager Paul Davies For further information visit: www.globalbusinessmedia.org The opinions and views expressed in the editorial content in this publication are those of the authors alone and do not necessarily represent the views of any organisation with which they may be associated. Material in advertisements and promotional features may be considered to represent the views of the advertisers and promoters. The views and opinions expressed in this publication do not necessarily express the views of the Publishers or the Editor. While every care has been taken in the preparation of this publication, neither the Publishers nor the Editor are responsible for such opinions and views or for any inaccuracies in the articles.
© 2017. The entire contents of this publication are protected by copyright. Full details are available from the Publishers. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical photocopying, recording or otherwise, without the prior permission of the copyright owner.
Introduction GDPR: An Overview Why Now? Data’s New Territory Mastering Data Management Compliance and Opportunity The Future is Here
Big Data – Threat or Opportunity?
8
Tom Cropper, Editor
The Growth of Data Big Data and Big Brother An Age of Regulation
Data: An Increasingly Valuable Commodity
10
Jo Roth, Staff Writer
Data Management Growth What Data Can Offer Data Management in Action
The Evolution of Master Data Management
12
James Butler, Staff Writer
What are the Benefits? Smarter, Faster and More Connected Adoption of the Cloud Assessing Costs Versus Rewards Into the Future
How to Make the Most of Data 14 Tom Cropper, Editor
Buying MDM Technology Making the Transition Integration and Consolidation
References 16
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Foreword
D
ATA IS everywhere and its management
That can sit passively and dormant or it can be used in
is becoming an increasingly important
a flexible and proactive way to streamline operations,
business priority. It’s one which can be seen as
improve financial visibility, compliance and customer
both a threat, but also an opportunity.
engagements. It can give business leaders a more
Our opening article comes from Semarchy a leading name in providing master data solutions. They look
enhanced view of their organisations and help them make better, more informed decisions.
at how much of the talk about data focuses on the
James Butler looks at how master data is evolving.
threats and dangers to business – particularly through
As data becomes more mobile it is becoming
more stringent regulatory requirements such as the EU
increasingly important to harvest information from
data protection act. However, these challenges can
many different locations in a central depository. MDM
create opportunities and data, when used in the right
technology is becoming more flexible and smarter,
way, can also be seen as a commodity – one which
capable of integrating smoothly with a company’s
can drive real value to the business.
existing infrastructure, offering real value immediately.
Our next two articles focus more deeply on those
Implementing such a system, though, remains
challenges and opportunities. First, we look at why
a challenge. The market is booming leading to a
data security is becoming such a big issue. As data
proliferation of different providers. We look at the
migrates to the cloud it is becoming increasingly
evolving nature of the market, and how buyers can
vulnerable to fraudsters. At the same time, the
ensure that they get the system they need.
penalties are becoming steeper – particularly with the
We are, then, in the midst of a data revolution. Those
implementation of the EU Data Act. Organisations of
who are early to adopt will gain a crucial competitive
all sizes must be on top of their compliance.
advantage over those who are not.
Jo Roth then goes on to talk about the increasing opportunities on offer from big data. As we move into a more connected and digital age, organisations of all sizes can’t help but collect huge amounts of data.
Tom Cropper Editor
Tom Cropper has produced articles and reports on various aspects of global business over the past 15 years. He has also worked as a copywriter for some of the largest corporations in the world, including ING, KPMG and the World Wildlife Fund.
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MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
From Denial and Deception to Discipline and Dreams: Data Management in the Age of General Data Protection Regulation (GDPR) Michael Hiskey, CMO, Semarchy and Richard Branch, VP & GM, Semarchy UK Ltd
Introduction Great challenges often reveal greater possibilities. Buried within 200-plus pages of EU data privacy regulations may be your business’s best customer retention, up-sell, and expansion opportunity. Or you could find yourself fined out of existence. It all depends on how you build a discipline for mastering your business data. The best firms won’t just contend with more regulations – they’ll become more capable.
In the decade since Apple introduced the iPhone, arguably the launching point for digital
GDPR: An Overview When data becomes a disaster – superfluously siloed, geographically redundant, overrun with entry errors – it’s a nightmare for IT and customer service and everyone else. But what if the consequences were not just lost time, revenue, and morale? What if a poor data management could also hang your organisation on the legal hook, to the tune of e20 Million, or four percent of annual global turnover? Such are the stakes of the new General Data Protection Regulation (GDPR). Passed a year ago, and set to take effect in May 2018, the GDPR is the largest and widest-ranging data privacy decree ever imposed: hundreds of rules and regulations foisted upon organisations. Yet despite its breadth, the GDPR may have garnered the most attention for Chapter 3, Article 17: Right to erasure – or, as it’s commonly known, the “right to be forgotten,” the law that gives a “data subject” the ability to have their data deleted. The “right to be forgotten” is not, of course, absolute; its many stipulations will be interpreted on a case-by-case basis. But Ch. 3, Art. 17 has come to encapsulate the entire regulation for its triumph of individual data rights in an age of cybersecurity threats, government surveillance revelations, and high-profile breaches. To that end, businesses may be keen to label the “right to be forgotten” and its ilk a threat. That would be a mistake. Clean, transparent,
saturation, numerous circumstances about 360-degree views of customer data are not bugs but features, so long as regulations as vast as the GDPR can be recast as a massive Know Your Customer (KYC) initiative. Critical to this outcome will be Master Data Management (MDM), the discipline necessary to extract maximal value from raw data, to turn new regulations into streamlined ROI.
data ownership and privacy have created a climate ripe for the GDPR
Why Now? In December 1995, when the EU implemented the Data Protection Directive (DPD), the GDPR’s predecessor, roughly 25% of 1% of the planet’s population was onlineI. Netscape was a year old, and Amazon had only recently sold its first book. Today, 30% of people around the world have smartphonesII; the devices account for three-quarters of internet useIII. Both numbers are rising, and the result is that data streaming is compensating for the slowing of Moore’s LawIV: according to Cisco, global IP traffic has already passed one zettabyteV. By 2020 it will more than double. In the decade since Apple introduced the iPhone, arguably the launching point for digital saturation, numerous circumstances about data ownership and privacy have created a climate WWW.CEOREPORTS.COM | 3
INNOVATIONS IN MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
Passed a year ago, and set to take effect in May 2018, the GDPR is the largest and widestranging data privacy decree ever imposed: hundreds of rules and regulations foisted upon organisations
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ripe for the GDPR. In the EU, none has had the significance of 2014’s Google Spain v AEPD, – a case that began with a seemingly obscure series of events in 1998. That year, the Spanish Ministry of Labour and Social Affairs ordered La Vanguardia, a print newspaper, to run notices stating that a property owned by Costeja would be auctioned off to pay his social security debts. Costeja figured out his finances, but the notices, which the paper also published online, popped up in Google searches for years. In the fall of 2010, Costeja asked the paper to delete the items. When it refused, he asked Google to unlink to them. They refused as well. Costeja filed a complaint with the Spanish Data Protection Agency (AEDP), and while it rejected the complaint against the newspaper, it upheld the one against Google. Google appealed to the National High Court of Spain, and it stayed the proceedings—pending ruling from the Court of Justice of the European Union (CJEU). The CJEU sided with Costeja, and it went on to state that individuals had the right to stop search engines like Google from linking to news items that were “inadequate, irrelevant or no longer relevant, or excessive in relation to the purposes for which they were processed and in the light of the time that has elapsed.” In the aftermath, Google created an online form for EU citizens to request the removal of irrelevant links. The first day the form was available, over 12,000 requests were made. Cases invoking the “right to be forgotten” have more than just legal ramification; they shed light on citizens’ existential concerns about safety. Over just the past two years, the UK has seen major, high-profile breaches at Wonga (payday loans), Three (telecom), Sports Direct (retail), Tesco (its banking arm), and Sage (accounting and HR software). Each attack alerts people to the
dangers of cyberspace, where shadowy criminals prey on innocent people with schemes as simple as phishing emails (Action Fraud says it received an average of 8000 phishing reports per month in 2015VI). These attacks bring a much-needed deluge of reminders about checking credit cards statements, using stronger passwords, and exercising Personal Identifiable Information (PII) discretion. In each case, the message is clear: personal security is data security.
Data’s New Territory The GDPR takes this message seriously. As the UK’s independent Information Commission’s Office (ICO) explains on its updating website, the regulation contains eight core data rights for individuals. Some, like the right to data access, the right to restrict data processing, and rights in relation to automated decision making and profiling, are similar to rights laid out by 1998’s Data Protection Act (DPA), which brought the UK in line with the DPD. And some go beyond the DPA: the right to be informed, for instance, contains notable language about data transparency, something that could drastically affect marketing. If businesses must explain their precise data intentions to customers in clear and simple language, opaque bundled consent forms could go extinct, and squirreling away data for future use could become too costly. Less data will be sold, but demand for it will rise, increasing its value and incentivising innovation. It is in this scenario, where the data as a commodity abides by market logic, that we can perceive data as the EU perceived it when grappling with individual data rights: data as entering new territory. The “right to be forgotten” may have grabbed headlines, but other unprecedented measures, like the right to rectification (wherein individuals and third-
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
parties must be informed of changes) and the right to object (to data marketing and profiling), are equally as consequential. From a B2C perspective, the most impactful might be the right to data portability. Among the stipulations here is that customers can request their data to price shop. The ICO imagines how this might operate in banking: “midata” improves transparency “by providing personal current account customers access to their transactional data . . . which they can upload to a third party price comparison website . . . display[ing] alternative current account providers based on their own calculations.”VII
Mastering Data Management As data skyrockets in value, data management assumes more prominence. Data management is rooted in the reality that with all commerce hosted on digital platforms and passing through digital portals and checkpoints – think of online shopping, mobile banking, the Internet of Things, payments security – it’s impossible for today’s businesses not to capture troves of raw data. So, what do you do with it? Do you let it rot? Or do you actively store, curate, and analyse it? Analytics, the lifeblood of business intelligence, come in four key modes: prescriptive (what should happen), predictive (what might happen), descriptive (what is happening), diagnostic (what happened). Can your data make them matter? Today’s businesses accept that knowledge begins with data; tomorrow’s businesses will
demand that the data be better. Surveying over 2,100 senior executives, PwC uncovered the expectation that data-based decision-making will improve over the next three years in terms of speed and sophisticationVIII. This is the data feedback loop: data drives decisions, which creates the need for bigger, faster, sleeker, smarter, richer data. Even if some are ready to proclaim the Big Data Era behind usIX and the Eras of Artificial IntelligenceX and Machine LearningXI on the horizon, if not already here, it is important to remember that AI and ML are inherently datadependent technologies. Indeed, strip away a media hype cycle and you’ll find a plethora of raw information and infrastructure underpinning a technology. Data is technology – and so it can no longer just have a home; it must be treated and tended, honed and shepherded. This is what MDM is for, and it may best be defined on Gartner’s terms: a “technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official shared master data assets. . . . The consistent and uniform set of identifiers and extended attributes that describes the core entities of the enterprise including customers, prospects, citizens, suppliers, sites, hierarchies and chart of accounts.”XII In other words: what’s your data, what’s its value, and how can it be valued interdepartmentally?
Indeed, strip away a media hype cycle and you’ll find a plethora of raw information and infrastructure underpinning a technology
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As data skyrockets in value, data management assumes more prominence
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MDM answers these questions because it services financials (quarterly reports), sales (cross-selling and up-selling), compliance (products and practices), and management (privacy, security, customer, supply chain) simultaneously. The newest MDM contains a unique blend of dynamism and agility that can locate and solve problems that plague inefficient, overworked legacy systems: geographical errors, logistics mistakes, inadvertent table errors, data integration errors, data model errors, data report errors, even data entry error propagated throughout a system from code and metadata errors.
Compliance and Opportunity Despite its flexibility, there is good reason to cast MDM as a compliance mechanism. Beaches, for instance, are the bane of business; their impact ranges from user irritation to national politics (in the case of the hack of the Democratic National Convention in the US presidential race) and telecom mergers (Verizon’s bid for Yahoo in the midst of the internet company’s hack revelations). While the ramifications of the DNC hack remain unclear, the breach at Yahoo – 1.5 billion user profiles stolen in two separate attacks in 2013 and ’14 – allowed Verizon to ask for a nearly billion-dollar discountXIII. It’s more than an aside that been had had Verizon purchased Yahoo with the GDPR in effect, the telecom giant could have been liable for $5.2 BillionXIV. Part of Yahoo’s sin, for financials and public perception alike, was that it failed notify the authorities of the breach until years later. The GDPR gives organisations 72 hours. This falls in line with the GDPR’s “accountability principle” (Ch. 5, Art. 2), which emphasises data governance. For businesses, proof of compliance could involve more staff training, internal audits of processing activities, and reviews of HR policies. For public authorities and organisations that carry out large scale systematic monitoring of individuals, like online behaviour tracking, appointing a Data Protection Officer is required. Organisations with more than 250 employees will need to maintain internal records of processing activities; organisations in general will need to identify a legal basis before processing personal data.
All of which begs the question: when the authorities ask for chronologically ordered sets of manual records that contain personal data, with “personal data” including online identifiers from IP addresses and key-coded (pseudonymised) data to genetic and biometric data, will you be ready? Will you then take the next step and realize that compliance increases employee and consumer confidence, enhances organisation branding, and helps company-wide management? Will you seize these regulations as opportunities to protect sensitive, proprietary company data; to achieve a granular understanding of the organization; to put the right data people in the right place; to allow for streamlining and automation of internal processes that lower operational costs; to open avenues for future data projects?
The Future is Here There is always a healthy dose of scepticism in the face of large-scale regulatory changes. One aspect regards the details – is data management really in the midst of a quasi-revolution? – another regards the change itself: can this really happen? The answer is: yes. Last fall, Elizabeth Denham, head of the ICO, voiced her support for the GDPRXV, and in her speech in January, Prime Minister Theresa May explicitly stated that the UK will be subject to the GPDR regardless of Brexit (which does not officially occur until the spring of 2019, one year after the GDPR takes effect)XVI. It is possible, of course, that the UK Parliament could eventually repeal the regulation. But that would leave the kingdom in a precarious position: in order to lawfully exchange data with the EU member states, it would need to ensure “adequacy” as a third country. As Wired noted, if the UK’s goal is individual data protection alongside continued business development – in other words, the win-win we expect – this would make little senseXVII. Why approach EU regulations as an outsider when UK businesses and tech companies will have to abide by European regulations anyway, if trying to do business on the continent? The bottom line is, if Brexit and the GDPR are both going to happen for the UK, they might as well already be in place. And that means adapting now rather than later. The press will be salivating over the first company to be fined for GDPR noncompliance. Don’t be the one.
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
About the Authors Michael Hiskey CMO, Semarchy
Richard Branch GM & VP, Semarchy UK Ltd.
Michael is a long-time data industry executive, who spends his days reinventing how technology can help improve business outcomes. An accomplished writer, speaker and blogger, he enjoys telling stories of ingenuity and innovation.
Richard is a long-time enterprise software executive in the UK, with a deep history in MDM (master data management), data quality, data governance, business intelligence, data warehousing, ETL, CRM and data mining.
He currently runs marketing for Semarchy, the Intelligent Master Data Management company. In this role, he has worked to accentuate the smart, agile and measurable capabilities unique to the xDM solution.
At Semarchy, Mr. Branch runs the entirety of the UK and Nordic country operations, bringing his years of experience to mentor and guide a team of professionals who are delivering on the most agile technology available in the European market to meet business needs.
Michael has held numerous leadership roles at large as well as growth organizations – IBM, MicroStrategy, Trifacta, Kognitio, Socure, Informix and Credit Suisse. He lives in New York and holds an MBA from Columbia Business School.
Prior to joining Semarchy, Richard held senior positions at Oracle, Stibo Systems, Attunity, and Informatica. He was instrumental in establishing Sunopsis in the UK, the innovative data integration company that was later acquired by Oracle. Richard lives outside of London and runs the Semarchy UK office in Maidenhead.
Michael and Richard will be presenting at the IRM MDM DG UK Conference in London this May. They are giving a talk on the uses of Material Design, the user interface language employed by Google, and how it can be applied to enterprise technology.
There is always a healthy dose of scepticism in the face of large-scale regulatory changes. One aspect regards the details – is data management really in the midst of a quasi-revolution? – another regards the change itself: can this really happen?
References: http://www.virginia.edu/virginia/archive/webstats.html https://www.statista.com/statistics/203734/global-smartphone-penetration-per-capita-since-2005/ III https://www.zenithmedia.com/mobile-forecasts-75-internet-use-will-mobile-2017/ IV https://www.technologyreview.com/s/601102/intel-puts-the-brakes-on-moores-law/ V http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/vni-hyperconnectivity-wp.html VI http://www.actionfraud.police.uk/news/action-fraud-reveals-that-it-receives-8000-reports-of-phishing-scams-every-month-mar16 VII https://ico.org.uk/for-organisations/data-protection-reform/overview-of-the-gdpr/individuals-rights/the-right-to-data-portability/ VIII http://www.pwc.com/us/en/advisory-services/data-possibilities/big-decision-survey.html IX http://www.economist.com/blogs/economist-explains/2014/04/economist-explains-10#comments X http://www.cio.com/article/3189171/artificial-intelligence/how-to-build-it-competencies-for-the-ai-era.html XI http://www.v3.co.uk/v3-uk/feature/2404892/the-rise-of-machine-learning-microsoft-aws-and-ibm-leading-the-era-of-ai XII http://www.gartner.com/it-glossary/master-data-management-mdm/ XIII http://nypost.com/2017/03/13/yahoo-had-to-shave-nearly-1b-off-deal-after-hacks/ XIV http://www.cityam.com/255796/yahoo-would-liable-198m-fine-were-gdpr-already-enforcedXV http://www.bbc.com/news/technology-37512419 XVI http://time.com/4636141/theresa-may-brexit-speech-transcript/ XVII http://www.wired.co.uk/article/the-uk-needs-europes-data-protection-laws I
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Big Data – Threat or Opportunity? Tom Cropper, Editor Many people and businesses view big data with suspicion, but it can deliver a crucial advantage to organisations of all sizes.
T As technology becomes more sophisticated and data more important, data theft is certainly becoming a growing problem
HE AGE of big data is upon is; while consumers and businesses alike can view data with suspicion it is quickly becoming a commodity which can help everyone. For consumers, it offers the chance to receive better deals and more tailored services, while businesses can gain valuable insights into their customers, products and their own operations. The result is something which could be truly transformative.
The Growth of Data The amount of data an organisation can capture is growing exponentially. Digitisation means every email, photo, web page, or social media post can be translated into information. It’s becoming more agile, with employees able to log into a central system from any location with an internet connection – and it’s becoming more complex. The growth of objects – things without a keyboard attached – connected to the internet (generally referred to as “Internet of Things” or IoT, has grown exponentially in recent years. Businesses are harvesting much more information about their own performance, the state of their finances and the overall health of their business. New technologies enable them to analyse it all in real-time and gain a clearer understanding of where their business is and how it is performing. The possibilities are exciting, but there are also potential problems both with public trust and regulatory oversight.
Big Data and Big Brother For many people, data will always be treated with suspicion. In 2015, for example, the British insurance company, Admiral, announced an app which could use an individual’s social media posts to help calculate their insurance premiums1. The concept was based on the premise that an individual’s social media activity could tell the insurer a great deal about an individual’s risk profile. If their customers allowed Admiral access 8 | WWW.CEOREPORTS.COM
to their social media sites, they might be able to secure better premiums. It’s an approach they also use with their little Black Box insurance product. Like many insurance companies, Admiral has turned to telematics to provide additional information about driver behaviour. The system analyses driver behaviour and identifies instances of excessive acceleration or sudden braking. Over time, it should be able to build up a profile of how safe a driver someone is, so that, if they’re confident in their driving ability, they can sign up to the service to secure a better deal. However, both ideas create controversies. While telematics is slowly growing and gaining acceptance, the use of social media posts turned out to be too much. Despite the promise of lower premiums, customers objected and Facebook pulled the plug on the entire idea. Data has also caused controversy in the aviation world. In 2014, Helsinki Airport announced a system which could track the WIFI signals of individuals as they moved through the airport2. Their intention, they said, was to improve their understanding of how people moved so that they could identify potential issues, improve traffic flow and reduce the time passengers spent passing through the terminal. Even so, it sparked suspicion among those who feared that their identities and behaviour could be tracked – or that airport operators were somehow using them to improve their revenue.
An Age of Regulation Big data also makes businesses nervous. For many, this is simply a case of compliance and trying to avoid the imposition of a crippling fine. The European Data Protection Act is designed to strengthen the protection of personal data in the EU. It lays down tougher requirements and potentially stricter fines. Groups of firms could be fined e20million or 4% of global turnover – whichever is greater3. Such were the new requirements that some tech firms termed it as
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
Businesses are harvesting much more information about their own performance, the a ‘tax on firms holding data’4. In other words, they feared that firms would inevitably fall foul of the new regulations no matter how secure their operating systems which would force them to view large data-loss fines as another cost of doing business. Other regulations aren’t doing much to help. The UK’s own data act – otherwise known as the Snoopers’ Charter – places requirements on companies to allow security services access to personal data5. It’s a move designed to combat terrorism, but also threatens to create enormous problems for tech-focused companies. Several major technology firms announced that they would leave the UK if the act passed into law6. The biggest problem is that it becomes increasingly difficult to guarantee the security of data. Although the backdoor is designed only to be used by official government agencies, its very existence creates an opportunity for cyber criminals. It’s like having the most secure castle in the world but being forced to build a secret
passage and then being forced to tell people that it’s there! As technology becomes more sophisticated and data more important, data theft is certainly becoming a growing problem. However, without overlooking the problems, it should also be seen as an opportunity. Data is becoming a commodity – one which can drive enormous benefits to an organisation. If analysed effectively, it can enhance transparency, increase efficiency and enable top level executives to make better decisions. For that to happen, data needs to be visible, comprehensible and accessible. It’s one thing to collect the data, but quite another to present it in a way which shows actionable real-time information. As such, the next generation of data management solutions could prove critical to future business operations. These can make sense of the enormous quantities of data in existence and present it in a way which businesses can use.
state of their finances and the overall health of their business
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Data: An Increasingly Valuable Commodity Jo Roth, Staff Writer Big data might be seen as a threat by some organisations, but it is also becoming one of the most valuable commodities to businesses of all sizes.
T Data is becoming commoditised – it has value and is being seen as a tool to spur business performance in new and unforeseen ways
HANKS TO the growth of technology, businesses are capturing huge amounts of data. It could come through visits to a website, transactions through an ecommerce platform, mobile banking, internet of things technology, tracking devices on staff cars, social media mentions and much more. The question is: what becomes of this data? Each piece of data tells an important story – be it about brand performance and reputation, customer buying behaviour, market trends or anything else, but too much information can become as much of a challenge as a benefit. It can sit there doing nothing or even, in some case, present a security risk to a business. To capture this data and put it to use, organisations of all sizes are turning to data management solutions.
Data Management Growth The next few years look set to witness substantial growth in the data management market. A report from MarketsandMarkets forecasts the market to grow from $9,440.4 Million in 2015 to $26,799.6 Million by 2020, at a CAGR of 23.2%7. North America is expected to be the biggest market size with Europe and APAC expected to also experience growing market traction. “Small Medium Businesses (SMBs) and large enterprises are adopting master data management solutions to harmonize, prioritize, synchronize, standardize their business processes, and augment collaboration,” states the report. Growth is being spurred by three main factors: • I ncreased data capture: Businesses of all sizes are capturing increasingly vast quantities of data which go beyond their current analytical capacity. •E volution of management solutions: Management solutions are evolving to become more complex, faster and easy to use. •A cceptance of value: Organisations of all sizes are beginning to accept the value of big data and understand the ways in which it can be
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put to use. Previously, this has been an area in which large corporations have been most active, but small and medium-sized businesses are also waking up to the possibilities. The market is becoming self-sustaining in many senses. The more businesses capture data, the more they demand additional services and functionality. Vendors, therefore, increasingly develop more sophisticated platforms which can provide faster, real-time access to key data. The more they do, the more they unlock new value for the data and drive further demand.
What Data Can Offer Attitudes towards data are evolving considerably. Data loss might still be a major threat, and this should not be ignored. Data is becoming commoditised – it has value and is being seen as a tool to spur business performance in new and unforeseen ways. Value comes from many quarters, but the most obvious are: •A ssessing financial performance: Increased data management can provide enhanced visibility of the financial health (or otherwise) of a business. It turns financial reporting into a real-time issue which can provide up-to-the minute details of where a company is. There is no time delay and no risk of missing important issues. Organisations can see exactly how much money they have, when bills are going out and when money is coming in. They can create more accurate cash-flow forecasts and identify any operational problems before they become mission-critical. • Analysing profits: Enhanced financial data can also provide a superior view of revenue and profit. It’s easy to get these mixed up – and many companies do. However, this can show which products or services are doing well and where true profits lie in a company’s operations. For example, it may be selling large volumes of a particular product, but in truth profitability could lie elsewhere if the margin achieved on
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
that product is too small. The ability to drill down into such data at a granular level enhances visibility and allows managers to apportion resources more effectively. •B usiness harmonisation: Enterprises of all sizes are using master data management solutions to harmonise, prioritise and standardise their business processes. They can aid collaboration, reduce waste and optimise the efficiency of an organisation at every level. Automating the storage and curation of data can also free up staff from more mundane tasks and enable them to focus on more high-value areas.
Data Management in Action An example of the use of Big Data is the important role it is playing in the aviation sector where it is being used to provide more information for passengers, increase services, improve efficiency, reduce waiting times, assess buying habits, assess performance and monitor the
condition of equipment. Different sectors of airport operations are becoming more connected, sharing information, tasks and data. The benefits are very real. Heathrow Airport, for example, used big data analytics to unlock further spare capacity at what is already one of the world’s busiest airports. It had been operating at 100% but data allowed it to open new slots and encourage Vietnam Airlines to move from Gatwick8. It’s difficult to overstate the importance of data to organisations of all sizes and in all industries. In an economic environment which is becoming increasingly volatile, it offers a way to streamline operations, optimise revenue, improve financial transparency, increase trust and improve performance. It enables businesses to increase capacity without the expensive physical and infrastructure expansion that would entail. In a world in which fine margins will become increasingly important, big data may hold the key to future success or failure.
The benefits are very real. Heathrow Airport, for example, used big data analytics to unlock further spare capacity at what is already one of the world’s busiest airports
It’s difficult to overstate the importance of data to organisations of all sizes and in all industries. In an economic environment which is becoming increasingly volatile, it offers a way to streamline operations, optimise revenue, improve financial transparency, increase trust and improve performance
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The Evolution of Master Data Management James Butler, Staff Writer
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Deciding whether or not to make use of MDM begins with understanding what it is and why it is important. Modern businesses collect a huge amount of data from multiple sources
HE NEXT generation of master data management solutions offers major benefits right the way through a business. Forward thinking enterprises must make the change now to stay ahead of the curve. In an age of connected devices and big data, MDM has never been more important but, even so, many businesses are still not making use of it. Sometimes they don’t understand it’s value or how to implement it. They may not see a business case or what it can bring to a company. Either way, they are missing out on enormous benefits which leaves an opening for their business. Deciding whether or not to make use of MDM begins with understanding what it is and why it is important. Modern businesses collect a huge amount of data from multiple sources. MDM brings this all into a central server to give a single, complete version of the truth. As product sets, customer relationships and transactional information related to mastered data becomes more complex, having an agile system that can keep up is very more urgent.
What are the Benefits? Having the right data in place for a business is crucial, but there’s a good chance it doesn’t tell the whole story. Approximately 25% of data used by the world’s biggest companies is flawed9 and, according to an estimate from Research Firm IDC, bad data costs businesses US $3 trillion every year10. Even the smallest data errors can lead to big losses. Take the example of TransAlta for whom a simple accounting error resulted in a $24million loss11. Conflicting, out of date and dirty data leads to financial reporting which is doesn’t reveal the whole picture. Opportunities are missed and key decisions made on inaccurate information. It creates multiple impacts on revenue and performance, diverts resources to data management which could be better used elsewhere and reduces a business’s credibility with customers and partners. More importantly, at a time when other organisations are improving their data management approaches, falling behind can leave a business at a key competitive disadvantage.
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The value of MDM, comes in its ability to reduce errors and deliver up-to-the minute information which can be acted upon in real time. In particular, it will optimise processes in areas such as • Financial reporting • Customer Support • Compliance • Cross selling and up selling • Privacy and security • Supply Chain Management Those without it can experience all sorts of problems. They may not know for certain where their cash position stands, which products are most profitable, or how they stand regarding compliance with key regulations. As digital technology increases the amount of data gathered by companies, MDM is firstly becoming more important as a way of amalgamating disparate data from connected devices, and secondly, it’s evolving.
Smarter, Faster and More Connected Every corner of the enterprise software world is looking for ways to employ algorithms such as machine learning and artificial intelligence to automate, improve and optimise. MDM is no different. Firms like Semarchy, who recently announced their Intelligent MDM approach with a product called xDM are doubling-down on this trend. xDM uses sophisticated algorithms to improve matching, curation and classification of data. It offers a single solution that works across any domain and style and is mastering a growing number of information vectors to deliver value to the business. This can come from anywhere – it can be customer data showing businesses how to better interact with their key clients; it can be product data, metadata and even DNA – it can all give value to a business, helping it to optimise its service, streamline operations and improve performance.
Adoption of the Cloud Another major development comes in the shape of the cloud. Enterprise cloud management has grown rapidly. According to the RightScale State
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
of the Cloud survey, 75% of businesses with 1,000 employees or more have at least one app or platform running in the cloud12. MDM, as other information management solutions are following a similar path. This has several benefits but also some cautions – the cloud is simply another data centre – and solutions that only work in the cloud have limitations down the road. The cloud devolves control of data to a third party and places an enormous reliance on their infrastructure. If they fail, your business will be impacted. Equally, data loss can open an organisation up to a wide range of issues, which is one reason why many organisations might be reluctant to combine the two. When selecting any partner, therefore, it is crucial to understand how the cloud can be an option – not a requirement.
Assessing Costs Versus Rewards Technology is developing and systems are delivering ever more value to businesses. Even so, implementation is not without its risks. Any such system represents an operational cost to a business, and managers will rightly want to see a return on that investment. Assessing that is a key part of using a system; to do that businesses need to understand the true value of their data - but it’s a complicated issue. The cost of implementation must be factored in for an accurate picture of the total cost of ownership of any system. So, too, will any risks associated with installation including initial teething problems and disruption to existing infrastructure. Benefits can be less easy to define.
Good MDM systems reduce data error, which avoids problems for businesses. They improve compliance, which avoids fines and streamline operations which not only saves money but allows staff to be more productive. It enhances visibility about products and engagement with customers allowing businesses to improve incrementally their own performance, revenue and profitability. Understanding these benefits, and measuring them effectively will be key to success. To address this, look for systems that can evolve into existing infrastructure. Any enterprise software that requires a ‘big bang’ integration will likely cause greater disruption – the impact of which is difficult to measure.
Into the Future Whatever the future holds, the world is changing rapidly. New technology is transforming the way we do business, opening up new possibilities and expanding horizons. It’s exciting, but staying ahead of the curve is a major challenge. Businesses continually find that they can benefit by reshaping their infrastructure to take advantage of an evolving landscape. Evolution will, therefore, be a major watchword over the coming years. Organisations of all sizes will benefit from solutions which are agile and flexible – and can evolve to keep up with their new requirements. It is a novel challenge – to design a system which not only provides cutting edge functionality today, but also can adapt to tomorrow – but doing so could hold the key to the future.
The need to optimise data prompts a move into intelligent MDM such as Semarchy’s xDM, the world’s first fully functional intelligent MDM. This uses sophisticated algorithms to improve matching, curation and classification of data
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MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
How to Make the Most of Data Tom Cropper, Editor Master Data Management is crucial but some businesses are slow on the uptake. Those which are, risk being left behind.
T The MDM marketplace is evolving rapidly, but that, in itself, creates problems. It’s divided into larger providers, smaller best of breed solutions and innovative start-ups
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O KEEP pace with the fast-moving business world, organisations of all kinds are updating their data management solutions. Cutting-edge, state-of-the art master data management is quickly becoming the must-have solution – but making the transition can be daunting, especially for those organisations who are buying for the first time. Adoption is sporadic with some companies on their second or third generation, while others have only just begun. Those which are slow to adapt, therefore, face a gap in their competitiveness which will be very difficult to close.
Buying MDM Technology The MDM marketplace is evolving rapidly, but that, in itself, creates problems. It’s divided into larger providers, smaller best of breed solutions and innovative start-ups, and as it becomes more popular, the number of providers is growing exponentially. The market is becoming saturated with similar sounding systems, which make identical claims at varying price-points. Only when you dig down into the detail do you see where true value begins. Buyers, therefore, need to understand more about the MDM process, how these solutions work and where the most sophisticated platforms offer additional value. It starts with single domain MDM solutions – these often come from larger companies, which began developing their solutions earlier. Their platforms come with the benefit of huge research and investment and have been tried and tested - but they are struggling to keep up with the times. Increasingly, now, the emphasis is on multidomain MDM which can amalgamate data from multiple different locations. It’s a more agile, and responsive approach giving you easier access to your data while allowing you to take swifter, better-informed actions. Larger players are moving towards multi-domain and acquiring smaller companies to help them do so, but in
many cases, they are moving too slowly, and have been beaten to it by smaller providers. They also have the disadvantage of having cobbled-together disparate solutions, with different tools, background, upgrade paths and connectivity points. These have the advantage of small-scale, innovation and agility – and can deliver cutting edge services which organisations need. They’ve normally scaled multi-domain MDM directly into their initial offering and so are faster to market. The benefits are that this allows data to flow into organisations from multiple locations giving managers real-time access to the real picture of what is happening in the organisation. Data can be drawn up much more quickly and simply and translated into positive action, which pushes the business forward. It’s cost effective – it can be implemented in a single instance and avoids unnecessary cost and training; it has simpler architecture and better analytics and it enables businesses to proactively manage all their data and take better, more informed decisions. For example, it can provide up-to-date, real-time views of cash flow, which avoids any unforeseen issues. This is useful for organisations operating on a slim profit margin. It can identify costs and any potential problems before they become serious, and take action accordingly. The difficulty, when looking at these smaller businesses, is in identifying real value and performance. The proliferation of platforms means buyers must truly look at what’s on offer, assess the expertise of the team and the track record of the vendor. Those which can demonstrate a superior track record and performance will offer better value.
Making the Transition The benefits should be clear, but making the transition is far from straightforward. Organisations – especially larger ones with deeply ingrained infrastructure – will find it’s
MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
a significant upheaval to transition to a new system, involving cost and disruption. Equally, such is the speed of business development that it can be difficult to keep up with the changing pace of technology. It’s a bit like the problems we all face as technology consumers – no sooner have we updated to the latest device than the technology has moved on and rendered it obsolete. Data management is moving so quickly that it’s difficult to catch up and stay ahead of the curve. Poor implementation can also create problems. Businesses have existing infrastructure for collecting and analysing data, which includes buy-in from across the organisation. Replacing this, together with existing IT infrastructure, is a major organisational challenge, and can create enormous disruption. The secret is a non-intrusive, agile MDM system which integrates naturally within your infrastructure and forces no organisational change. Requirements change, as do the shape of existing domains, as well as the complexity of master data gathered. So, a system needs to be able to evolve over time to match the moving operational requirements of the business. Collaboration is vital, as every part of the organisation will be deeply involved in the process. It’s cheaper with lower initial costs, and an easier implementation, it increases visibility of data and minimises the disruption of implementation.
Integration and Consolidation Collaboration between developers is also important in creating solutions which harness multiple features. For example, some technology suppliers are developing new solutions which combine trusted master data management with data virtualisation capabilities. At the beginning of the year Semarchy signed an agreement with Denodo – a leader in data virtualisation software – to integrated trusted master data with information which may reside across other platforms. It’s an innovative system which enables businesses to maintain a single repository of the truth despite the increasingly spread out nature of data on the cloud and other platforms. “Savvy organizations are keen to get a single, trusted view of their customers, partners, products, locations, etc.,” said Salah Kamel, CEO of Semarchy. “Modern systems that hold data across cloud and on-premises systems makes that more difficult. The Semarchy and Denodo offerings – already in use by some of our joint clients – make it easier to obtain business value in a short timeframe.” The market is evolving rapidly and there is wide variation in adoption across the board. Early adopters have already implemented the most sophisticated solutions into their operation and are working with it well. Those who hesitate will find themselves at a growing competitive disadvantage. Making data management work more effectively can help businesses find an edge in an increasingly competitive and uncertain future.
The difficulty, when looking at these smaller businesses, is in identifying real value and performance. The proliferation of platforms means buyers must truly look at what’s on offer, assess the expertise of the team and the track record of the vendor
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INNOVATIONS IN MASTER DATA MANAGEMENT SOLUTIONS FOR MODERN ENTERPRISE OPERATIONS
References: Admiral Social Media Plan Blocked:
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http://www.huffingtonpost.co.uk/entry/admiral-car-insurance-will-give-a-quote-based-on-your-facebook-posts_uk_5819c9bfe4b0e43b59acca6d Big Brother is Watching You!
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http://www.dailymail.co.uk/travel/travel_news/article-2710491/Helsinki-Airport-track-passengers-using-mobile-phone-WiFi.html UK Firms Could Face ÂŁ122bn in Data Breach Fines:
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http://www.computerweekly.com/news/450401190/UK-firms-could-face-122bn-in-data-breach-fines-in-2018 4
European Data Protection Laws Propose Large Fines: http://www.bbc.co.uk/news/technology-16722229 Snoopers Charter Bill Becomes Law:
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https://www.theguardian.com/world/2016/nov/29/snoopers-charter-bill-becomes-law-extending-uk-state-surveillance Escaping the May-Trix:
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http://www.thenational.scot/news/14897992.Escaping_the_May_trix__Snoopers____Charter_will_force_a_mass_exodus_of_tech_firms_from_the_UK/ 7
Master Data Management Market: http://www.marketsandmarkets.com/PressReleases/master-data-management.asp
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Heathrow Big Data: https://milanamos.com/heathrow-airports-big-data/
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Dirty Data is a problem: http://www.gartner.com/newsroom/id/501733
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Bad Data Costs $3trillion: https://hbr.org/2016/09/bad-data-costs-the-u-s-3-trillion-per-year
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Human Error Costs TransAlta $24million:
http://www.theglobeandmail.com/report-on-business/human-error-costs-transalta-24-million-on-contract-bids/article18285651/ 12
RightScale State of the Cloud Survey: http://www.rightscale.com/blog/cloud-industry-insights/cloud-computing-trends-2016-state-cloud-survey
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