Customer Centricity How the MDM Journey Creates Business

Customer Centricity: How the MDM Journey Creates Business Success Anne Ratcliffe WW Info. Sphere MDM Sales Executive Information Management IBM Software Group 1

Agenda • • The Information Supply Chain Master Data Management Overview The IBM® Info. Sphere™ MDM Portfolio Customer Success Stories 2

Data Explosion in a Smarter World! Volume of Digital Data • 57% CAGR for enterprise data through 2010 • Machine generated data : Sensors, RFID, GPS. . Variety of Information • 80% of new data growth is unstructured content • Emails, images, audio, video. . Velocity of Decision Making • Rapidly changing business climate • Need to get ahead of the curve : predict issues and fix them New Data New Information! 3

But, How Do We Leverage Information for Smarter Business Outcomes? 42% of managers use wrong information at least once a week 59% of managers miss information valuable to their jobs because they can't find it Sources: Accenture Survey, January 2007, AIIM Survey, July/August 2007 47% of users don’t have confidence in their information 4

Think Differently to Drive Smarter Business Outcomes Optimization Automation Call Center Operations Human Resource Management Application Agenda ERP & Financials 5

Key Business Drivers for MDM Revenue Agility/Strategic Initiative • Identify cross-sell, up-sell opportunities • Customize product offerings and bundles • Introduce new products quickly • Identify high value customers • Improve customer retention • Consolidate data from silos/integrate new systems quickly (M&A) • Meet demands of new business channels • Grow with the business • Identify key relationships and hierarchies Cost Compliance • • • Reduce risk • Control access to data • Adhere to government and corporate regulations • Manage customer privacy preferences Automate manual business processes Reduce data errors Eliminate excess mailings Identify risk (credit) Supports system consolidation initiatives 6 6

What is Master Data? Why is it important? • Master data is a subset of all enterprise data • Master data is the highvalue, core information used to support critical business processes across the enterprise • Master Data is information about customers, suppliers, partners, products, materials, employees, accounts and more • Master Data is at the heart of every business transaction, application and decision 7 7 Master data 7

What is Master Data Management? • Provides a consistent understanding and trust of master data entities • Provides mechanisms for consistent use of master data across the organization • Is designed to accommodate and manage change CRM John Jones 112 Main Street Customer Value – High Risk Score – Low Solicit – Do Not Call rd o ec w R r Vie e t s le Ma ing S 8 ERP Data Warehouse John Jones 112 Main Street Customer Value – High Risk Score – Low Solicit – Do Not Call e. Business Application J. Jones 1500 Industrial Customer Value – Low Risk Score – High Solicit – No data MDM John Jones Customer Valiue High Risk Score Low Do Not Call jjones@abc. Co. com 8

Current Business Automation…Since the Beginning of Info Technology Application Agenda Era … • IT Applications built in silo to solve specific business problems (Order, billing, service, compensation, etc) • Line-of-business focused (by product) • Common data (e. g Customer) in disparate systems resulting in duplicates and non-trusted data Web Phone Call Center Agent / Sales Headquarters (e. g Risk Mgr, Administrator) Other Users (e. g business partners) Business Intelligent IVR Web CRM/ Call Center Process Server Sales Force Automation (e. g. COGNOS) Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc. ) Product Order System Customer Product Account Others Billing System Customer Product Account Others Comp. System & Others Service System Customer Product Account Others New Systems (e. g. SOA –based) External Business Partners Security, Mail, etc Content Management (e. g. File. Net) Batch Connectivity (e. g. ETL Tools) 9

Non-Trusted Data Common Data in Disparate Systems Cause Data Quality Problems… System A System B Name: Nancy Smith Nancy Jones Mark Jones Nancy Jones Gender: Female F Male Female Birth Date: 1 Aug 1980 1/8/1980 9/2/1963 8/1/80 Marital Status: Single Married M ID: Passport: BA 26355 DLN: 800801 -2311711 DLN: 630902 -1212212 DLN: 800801 -2311711 Address: 1 Main St, … 1 Main Street, … No 1 Main St, … 2 Main Street, … Sales Compensation System C • Are they the same person? • Are they related to other customers? • Is the customer also an agent • Which address is correct 10

Leaders Investing to Optimize Information Assets Clients Tell Us What They Are Looking for…Trusted Data Insightful Derive meaning from information changes In Context Real-time delivery of relevant information when and where it’s needed Complete Related information reconciled into a single and holistic view Accurate Complex and disparate data transformed, cleansed and delivered 11

IBM® Info. Sphere™ Solutions to Provide Trusted Data to Drive Business Optimization… IBM® Info. Sphere™ Information Server • Every capability needed to understand, cleanse, integrate & deliver information across heterogeneous systems Web Phone Call Center • Unique metadatadriven design for acceleration & business-IT alignment Headquarters Other Users (e. g Risk Mgr, business Administrator) partner) Business Intelligent IVR Web CRM/ Call Center Process Server Sales Force Automation (e. g. COGNOS) Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc. ) • Broad native connectivity to any data source • Massive scalability for integrating large data volumes in batch or real-time Agent / Sales Product Order System Customer Product Account Others Billing System Customer Product Account Others Service System Customer Product Account Others Comp. System & Others New Systems (e. g. SOA –based) External Business Partners Customer Product Account Others Security, Mail, etc Content Management (e. g. File. Net) INFOSPHERE INFORMATION SERVER Understand Cleanse Transform COMMON META DATA Deliver 12

Non-Trusted Data Common Data in Disparate Systems Cause Data Quality Problems… System A System B Name: Nancy Smith Nancy Jones Mark Jones Nancy Jones Gender: Female F Male Female Birth Date: 1 Aug 1980 1/8/1980 9/2/1963 8/1/80 Marital Status: Single Married M ID: Passport: BA 26355 DLN: 800801 -2311711 DLN: 630902 -1212212 DLN: 800801 -2311711 Address: 1 Main St, … 1 Main Street, … No 1 Main St, … 2 Main Street, … • Are they the same person? • Are they related to other customers? • Is the customer also an agent • Which address is correct Sales Compensation System C INFOSPHERE INFORMATION SERVER Understand Cleanse Transform Deliver COMMON META DATA 13

Master Data Management The Path to Managing & Providing Trusted Data… Master Data … • Common Data • Directory (X-ref) Data • Summary Data NAME PARTY X-REF PARTY RELATIONSHIP PARTY HIERARCHY DEMOGRAPHIC (Gender, Birth Date, Establish Date, etc) PERSON or ORG (Party) ADDRESS & CONTACT METHOD (Phone, e-Mail, etc) PARTY VALUE CAMPAIGN SUMMARY INTERACTION HISTORY IDENTITY ACCOUNT/ POLICY X-REF PRIVACY & PREFERENCE 14

Master Data Management Centralized Management of Master Data via Services to Provided Trusted Operational View of Business … INTEGRITY service INTELLIGENCE service INTEGRATION service AUTHORIZATION service 15

IBM® Info. Sphere™ Solutions to Provide Trusted Data to Drive Business Optimization… Web Phone Call Center Agent / Sales Headquarters Other Users (e. g Risk Mgr, business Administrator) partner) Business Intelligent IVR Web CRM/ Call Center (e. g. COGNOS) Process Server Sales Force Automation INFOSPHERE MDM SERVER Real-time/Near-Real-Time Connectivity Services (ESB, EAI, Web Services, MQ, etc. ) Product Order System Customer Product Account Others Billing System Customer Product Account Others Service System Customer Product Account Others Comp. System & Others New Systems (e. g. SOA –based) External Business Partners Customer Product Account Others Security, Mail, etc Content Management (e. g. File. Net) INFOSPHERE WAREHOUSE INFOSPHERE INFORMATION SERVER Batch Load Understand Cleanse Transform COMMON META DATA Deliver 16

Over 10 Years Experience & 600+ Customers 4 of top 6 US Insurance Companies 6 of top 10 US Financial Services 10 of top 12 US Retailers 5 of top 6 US HC Payers; EMPI & HIE leader Leader for large national & local governments http: //money. cnn. com/magazines/fortune 500/2009/full_list/ 17

Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM Government Healthcare Telco • Improve Case management • Reduce fraud across benefit Applicants • Improve revenue collection across Taxpayers • Improve Citizen services • Streamline Asset management across Locations • Improve Patient care and reduce medical errors • Encourage Physician loyalty • Improve Compliance and Patient privacy • Streamline Hospital Asset management or medical Products across supplychain and Locations • Improve Customer service and billing Contracts, and reduce churn • Support Regulatory compliance for Customers / Organizations • Grow Customer wallet share through tailored Product offerings and bundles Energy & Utilities • Energy Price data management • Asset and Location management (e. g. , reservoir, oil field, meter) • Improve Customer service 18

Customers Across Industries are Addressing a Broad Set of Business Challenges With MDM Financial Services Insurance Retail • Regulatory compliance for Customers • Improve Customer satisfaction • Grow Customer wallet share through tailored Product offerings and bundles • Understand full exposure and reduce credit risk across Accounts • Streamline Member enrolment • Improve claims processing for Members • Create custom Product offerings and bundles • Optimize Policy management • Manage compliance and privacy across Members • Superior Customer multi-channel experience • Improve Customer loyalty • Faster Product launch across Locations • Improve Vendor / Supplier onboarding Manufacturing • Streamlined Asset management • Improve Supplier / Dealer financial management • Food Products safety compliance • Manage Customer preferences and lifecycle • Faster Product 19 launch across

IBM® Info. Sphere™ Master Data Management A broad set of capabilities to enable adaptive master data management solutions Adaptive MDM for diverse requirements • • World’s largest MDM customers and implementations Rapid time to value with multiple deployment options Support for any data domain and industry Strong master data stewardship capabilities Pre-packaged capabilities speed time to market Customizable and extensible foundation Seamless scaling as data volumes grow 20 20

Phased Implementation Drive Business Optimization with Positive ROI Reduce cost and improve customer satisfaction via once-and-done processing … e. g. address change Reduce risk exposure via holistic view customer household and product holdings COST REDUCTION IMPROVE RISK MANAGMENT Improve up-sell and cross-sell with relevant offers meeting customer requirements IMPROVE SALES CAMPAIGN Comply with government regulations…privacy act, risk exposure reporting, etc REGULATORY COMPLIANCE Forming a customer chassis to reduce M&A integration points and improve integration speed and cost ASSIST MERGER & ACQUISITION 21

IBM MDM Customer Success Story The Facts: § Multiple customer information systems from acquisitions § Inability to identify value of customer across mortgage, bank account, sales, and life administration systems Bottom line: § Removed 400, 000 duplicate records to date § Greater ability for cross-sell and up-sell § Led to increased revenue and improved customer loyalty "Now that we manage our customer information as an asset, the opportunities for innovation and optimization are endless. We can respond to the dynamics of our business twice as fast. " 22

IBM MDM Customer Success Story The Facts: § Create and maintain product information 10% faster § Data entry errors reduced from 5% to 0. 1% Bottom line: § Anticipated operational savings of € 5 million annually § Partners reduce costs by 25% § Two additional weeks of sales for new products leading to 3. 5% increase in revenue 23

IBM MDM Customer Success Story The Facts: § Integrates over 52 M customer records within and across disparate systems § Acts as the single point of management for a global customer identifier Bottom line: § Reduced data standardization costs by 50% and marketing costs by 10% § Decreased customer churn by 5% and increased cross-sell, up-sell revenue by 10% § Recognize a 300% increase in customer privacy compliance across the entire organization 24

Q & A / Thank You For More Information, Please Contact: Anne Ratcliffe WW Info. Sphere MDM Sales Executive Information Management IBM Software Group Ph: +1 415 867 -0895 Email: aratclif@us. ibm. com 25

Appendix 26

Delivering Business Insight Requires Mastering Your Information Going Beyond Simply Managing… to Optimizing Business Results Clients’ Information Supply Chain Applications & Processes Analyze Integrate Reports & Dashboards Business Intelligence Applications Master Data Business Applications Database Infrastructure Content Transactional Streaming Business Data Applications Data Warehouse rnlity e v o Qua GData y urit le c e S cyc ent Life agem n Ma 27

IBM MDM Product Portfolio 28 28

IBM MDM Product Portfolio IBM® Info. Sphere™ MDM Server IBM® Initiate® Master Data Service® Virtual master registry for delivering single, trusted versions of master data and their relationships Governance Single View IBM® Info. Sphere™ Identity Insight Analytical capabilities to discover where threat and fraud exists to enable immediate action. 29 29 Common Components Physical master repository of customer, account and product data for the business to consume as services IBM® Info. Sphere™ MDM Server (for PIM) Capabilities to flexibly manage products and other entities across enterprise 29

IBM® Initiate® Master Data Service®: Functional Overview • Data Stewardship – Inspect and resolve data quality issues – Visualize and manage relationships IBM® Initiate® Master Data Service® Data Stewardship • Master Data Engine – Highly accurate and flexible matching and searching across multiple data domains – Load, match and link master data in hours Master Data Engine • Flexible & Extensible Data Model – Model complex master domains and relationships – Employ data models that are built and optimized specifically for master data management Match & Link Workbench Relationships Data Model • MDM-Powered Solutions Framework – Streamline creating MDM-powered solutions for end users Solutions Framework Components Blueprints • Integration – Integrate with multiple real-time and batch options – Deliver trusted master data to downstream data warehouse, analytics and BI systems – Message-based support (HL 7, JMS, MQ Series) 30 30 Integration SOA Java/. Net Industry 30

IBM® Info. Sphere™ MDM Server: Functional Capabilities • Business Services – Enables business process to easily leverage master data – Speed time-to-value, reduce subsequent phase investment IBM® Info. Sphere™ MDM Server Data Stewardship • Functionality – Stewardship: Data Quality, Stewardship, & User Interfaces – Events: Event Management & Business Rules – Security & Entitlement: ROV Business Services Pre-built MDM Domains • Multi-domain – Extensible data model supporting domains including Party, Product, Account & Location – Relationships between domains • MDM Workbench Customizable Party Account Product Custom Integration Content Data Analytics – Tooling for easy extensions to data and UI generation • Robust Data Integration – Pre-built Data Integration & Quality 31 31 31

IBM® Info. Sphere™ MDM Server (for PIM): Functional Capabilities • Collaborative Business Processes – Workflows for Collaborative Tasks • Extendable Authoring UI IBM® Info. Sphere™ MDM Server (for PIM) Collaborative Authoring – Business User Interface for Authoring and Search • Flexible Data Model – Product Catalogs, Category Hierarchies, Attributes, Relationships Business Process workflow • Data Synchronization – Imports and Exports with Deltas and Versioning – Job Scheduler • User and Role Security NPI Catalog Mgt GDS Multi-Commerce MDM Custom-Built Domains Product Location Supplier Others – Granular Access privileges to enforce complete and accurate data – User and Role Security – Attribute Level Security 32 32 32