IBM Master Data Management Server v 8 0

IBM Master Data Management Server v 8. 0 Q 1, 2008 © 2005 IBM Corporation

Agenda § Master Data Management Market Update § IBM Multiform MDM Strategy – Keep it simple § Introduction to IBM MDM Server v 8 – Key Supported Features – Implementation Styles – Packaging and Pricing – CDI Entry Level Concept § Case Studies 2

Gartner’s View of the CDI market By 2010, the customer data integration hub software market will grow to $706 million, with a five-year compound annual growth rate of 30%. CDI Hub Total Software Revenue, 2003 -2010 Source: Gartner’s “Market Share and Forecast: CDI Hub Software, Worldwide, 2005 -2010” by Fabrizio Biscotti and John Radcliffe, December 2006 Source: Gartner Dataquest (December 2006) 3

Gartner Estimates Significant Growth in PIM Market § Increasing customer recognition that inaccurate product data is the root cause of significant business challenges § Requirements are becoming more complex – Business drivers such as multi-channel and e. Commerce – Nature of data in new industries (e. g. A&D) is inherently complex § Gartner expectations: – By 2010, IBM, Oracle and SAP will command more than 50% of PIM SW revenue (0. 7 probability) PIM SW (lic. & maint. ) $ in millions § Value of PIM extending beyond early adopter industries, e. g. A&D, Industrial manufacturing Gartner Estimated PIM Market Opportunity 2009 Est. $860 M 2007 Est. $460 M $300 M $214 M – No leader will emerge in the PIM market before 2009 (0. 7 probability) Analysts estimate that IBM will capture significant percentage of PIM market opportunity over next three years 4 Source: Magic Quadrant for Product Information Management, 2 Q 07, Gartner, Inc.

Master Data Management Market § Master data management is a large, fast growing, highly fragmented market – $4 billion software and services in 2005 (IDC) – >15% CAGR through 2009 – Key infrastructure requirement across all industries – Consolidation occurring across all segments – Complexity of integration, scalability, product extensions, and service skills driving investments § IBM views this market as core to Services Oriented Architecture (SOA) strategies – Enable the delivery of composite applications across heterogeneous environments – Drive efficiencies and new processes in multiproduct, multi-channel, multi-geography based companies 5

Gartner Magic Quadrants Magic Quadrant for Customer Data Integration Hubs 2007 Source: Gartner, Inc. “Magic Quadrant for Customer Data Integration Hubs, 2 Q 06” by John Radcliffe. May 26, 2006. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from IBM. 6 Gartner Magic Quadrant For Product Information Management 2007 Source: “Magic Quadrant for Product Information Management, 2005” Gartner ID: G 00139227, Andrew White, Published on 16 May 2006

IBM is #1 rated MDM solution – Perfect Score! IBM’s MDM product portfolio is very threatening to competitors because it leverages best-of-breed DBMS, DW, DI, DQ and data governance products; has been packaged, customized and licensed effectively for the leading MDM horizontal and vertical markets; and is delivered through IBM’s global professional services force. – Current Analysis, Inc. 7

Growth of the MDM Market IBM already fields one of the strongest MDM suites on the market, having made several DM vendor acquisitions in recent years—most notably, EII/ETL pioneer Ascential—to build up its portfolio, while providing packaged MDM offerings targeted at the CDI and PIM markets. - Jim Kobielus, Current Analysis, October 2007 By 2012, the market for enterprise MDM solutions (software & services) as both strategic initiatives and to refresh aging legacy MDM capabilities will exceed US$3 B…Through 2009 -10, mega IT vendors (IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors thriving in specific industries & horizontal/corporate applications. - Aaron Zornes, Chief Research Officer, The CDI Institute, December 2007 Now that MDM is starting to mature it has the potential to become the authoritative way to manage the single trusted view of the customer. - Judith Hurwitz, The Hurwitz Group, October 20078

Agenda § Master Data Management Market Update § IBM Multiform MDM Strategy – Keep it simple § Introduction to IBM MDM Server v 8 – Key Supported Features – Implementation Styles – Packaging and Pricing – CDI Entry Level Concept § Case Studies 9

Multiform Master Data Management The Application Process and Function Problem Data and Functionality unique to each application Data and data functionality common to applications: Customer, Account, Product CRM Billing ERP Application-unique Functionality & Data Common Functionality & Data Symptom Data is inaccurate, incomplete and conflicts with other systems 10 Root Cause Common data and data function is siloed

Multiform Master Data Management Definition of Master Data § Key facts describing core business entities § High value information impacting most important business processes § Siloed in multiple processes, applications, and LOBs Definition of Master Data Management Application § Support all applications that create and consume master data § Contain configurable functionality to maintain and be the system of truth for master data § Maintain and leverages relationships among master data entities § Manage the complete data lifecycle 11 Support all implementation approaches §

The Simple Story! Multiform MDM Strategy Master Data Management has 2 requirements: 1. Data Domains – Manage master data on party, product, account and location – and maintain relationships among them 2. MDM Function –Business processes associated with the Master Data Multiform Master Data Management MDM Function Collaborate Create and Define Operationalize Real-time business services MDM Data Domain Party, Product, Account, Location 12 Analyze Insight and Analysis

1. Multiform Master Data Management Defining Domains § Party can reflect any legal entity, whether individual or organization § Product encompasses both physical goods as well as services § Account includes terms and conditions, and associated relationships § Location may serve as a primary or secondary domain. . . Not only must these domains be managed but also the relationships among them. . . 13 Party, Product, Account, Location Party PRODUCT Agent Customer Employee Prospect Supplier Part Product Bundle Item/SKU Service Terms & Conditions ACCOUNT LOCATION Contract Agreement Transaction Reward Program Financial Account Location Address Contact Method Geography/Region

1. Multiform Master Data Management Master Data Domains § An MDM application must manage deep data on a single primary data domain — party, product, account Party Account Product Location 14 Multi-domain Relationship Management § An MDM Application must manage complex relationships among data domains to gain understanding of master data

2. Multiform Master Data Management Why Multiple Functions? rat e Op Co al n io lla Data Lifecycle Management bo rat § Data is dynamic, not static § Applications that use master data play different roles … § ive … the same application may create data, consume it, and require analysis of it § One Functional style can trigger another § An MDM System must be able to 1. Provide mechanisms for consistent use of master data across the organization Analytical 15 2. Integrate the functional styles to manage data lifecycle processes

Multiform Master Data Management Characterized By Multiple Users, Multiple Usages Operational Business Application-unique Functionality & Data Application-unique Functionality & Data Common Functionality & Data Operational Data Usage Real-time SOA data access Collaborative Data Usage Multiform Master Data Management Collaborate Operationalize Analyze Define, create and synchronize Master Information Deliver Master Information as a service for business operations Drive real time business insight Analytical Data Usage Party (customer, citizen, prospect, organization, supplier, distributor, etc. ) Application-unique Functionality & Data Creators e. g. , Administrators, Business trading partners, Applications etc. Common Functionality & Data Define and create master data 16 Product (good, service, product bundle, catalogue, product component, etc. ) Account (Agreement, financial account, reward program, etc. ) Data Warehouses Reporting & Analytics Analyze master data

The Simple Story! – One Small Addition… Master Data Management has 2 requirements: 1. Data Domains – Manage master data on party, product, account and location – and maintain relationships among them 2. MDM Function –Business processes associated with the Master Data … and MDM may be implemented in 4 different styles Multiform Master Data Management MDM Function Collaborate Create and Define Operationalize Real-time business services Analyze Insight and Analysis MDM Data Domain Party, Product, Account, Location MDM Implementation Style 17 Consolidation Registry Co-existence Transaction

Multiform Master Data Management Consolidation Example Consolidation Registry Co-existence Transaction Consolidation § Full data model across multiple data domains § Batch import capabilities + Information Server integration § Data stewardship and governance functionality § Batch export to target systems Batch Import MDM Database Full Data Model Matching Governance Batch Export 18

Multiform Master Data Management Registry Example Consolidation Registry Co-existence Transaction Registry § Index (cross-reference) capabilities for any data entity and attribute in the IBM MDM Server database § Search and inquiry services § Capabilities for virtual consolidated view via Information Server capabilities (federated queries) § Data stewardship and matching 19 Source MDM Database Index Virtual View

Multiform Master Data Management Co-existence Example MDM Implementation Style Consolidation Registry Co-existence Transaction Batch Import Co-existence § Full data model across multiple data domains MDM Database Full Data Model Matching § Cross-reference keys, subscription management, and message notification capabilities Governance Application § Search and inquiry SOA services Application 20

Multiform Master Data Management Transaction Example MDM Implementation Style Application Consolidation Registry Co-existence Transaction Application Transaction § System of record add and update SOA transactions, with full business logic § Transaction audit logging and database change logging and auditing § Authorization an the data attribute level – rules of visibility to control data access § Transaction processing capabilities – transactional integrity across all business services and ability to participate in enterprise (cross application) transactions 21 MDM Database Full Data Model Matching Governance Application

Multiform Master Data Management Implementation Styles Consolidation Registry Co-existence Transaction § Multiform MDM requires multiple Implementation Approaches to ensure customer success § IBM is the only MDM vendor able to deliver on all 4 Implementation Approaches: § The Transaction approach is a superset (100% functionality) encompasses the full functionality of all others § Consolidation, Registry and Co-existence are a partial deployment/use based on specific use cases/requirements § Multiple approaches may be used simultaneously (i. e, single deployment, single install) to meet specific business needs/requirements within: § Data domains or individual subject areas/attributes § Business units § Consuming applications § Geographies 22

IBM Is Uniquely Positioned to Deliver On Multiform MDM Through IBM MDM Server and Web. Sphere Product Center IBM Master Data Management Server Integrity Maintains single record Action MDM business services Data Governance Rules of visibility Knowledge Master Profile Services interface Intelligence Business rules to manage events IBM Web. Sphere Product Center Insight User Interface Intelligence Business rules to manage events Leverage Aggregate and syndicate data Interaction User and Rolebased Access Knowledge Flexible data model IBM MDM Server and IBM Web. Sphere Product Center deliver Multiform MDM capabilities Multiform Master Data Management MDM Function Collaborate Create and Define Operationalize Real-time business services Analyze Insight and Analysis MDM Data Domain Party, Product, Account, Location MDM Implementation Style 23 Consolidation Registry Co-existence Transaction

IBM Master Data Management Server IBM MDM Server Addresses Multiple Domains via Operational Functionality IBM MDM Server is first product to deliver significant capability across domain and function. IBM is also able to address multiple implementation styles. Primarily operational but offers some collaborative and analytical. Multiform MDM is IBM’s strategy for the most complete MDM offering by addressing: §MDM Domains §MDM Functions §MDM Implementation Styles. 24 Index Reference System of Data Record Data

Multiform Master Data Management WPC Addresses Collaborative Style, Product Domain Collaborative Usage of MDM: § Manages the process of Creating, Defining, and Verifying master data § Focused on the definition of Master Data that can be synchronized with Operational and Analytical Systems Multiform Master Data Management Collaborate Operationalize Analyze Party (Customer, citizen, prospect, organization, supplier, distributor, etc. ) Product (good, service, product bundle, catalogue, product component, etc. ) Account (Agreement, financial account, reward program, etc. ) 25

IBM Web. Sphere Product Center § The most experience with Product Information Management implementations – Largest customers in the world – Multi-faceted requirements – Multiple verticals § Ranked as leader by industry analysts § Recognized leader in expanding collaborative and operational requirements for product domain into broader MDM offering § Out of the box functionality § Excels in heterogeneous environments 26 Web. Sphere® Product Center allows companies to create a single, up-to-date repository of product information that can be used throughout their organization for strategic business initiatives.

IBM MDM Server – Release Summary Technology Benefits • Cross-domain capabilities • Manage Risk & Compliance Master Data Lifecycle Support • Manage Information Complexity • Optimized Infrastructure WPC Collaborative Prod “Cambridge” Collab Party Collaborative Prod “Hollywood” Collab Acct 9 M a t a D ter s Ma Operational 27 Party Acct Prod Multiform Phase I 8 0 20 I M B em g a an 0 20 Prod “Auckland” ve r e S Multiform Phase II Party r t n e Operational Party “Glendale” Operational 10 20 Prod “Bordeaux” Collaborative Prod WCC Acct Multiform Phase III WPC Customers WCC Customers Analytical WPC Customers WPC Operational Business Benefits • • • Revenue Enhancement Customer Care Thread and Fraud Services Optimization Operational Efficiency

Agenda § Master Data Management Market Update § IBM Multiform MDM Strategy – Keep it simple § Introduction to IBM MDM Server v 8 – Key Supported Features – Implementation Styles – Packaging and Pricing – CDI Entry Level Concept § Case Studies 28

Multiform Master Data Management Operational MDM Operational Function of MDM: • Use and Maintenance of Master Data occurs within Operational process/applications • Master Data is consumed by other systems via real-time accessible SOA Services Multiform Master Data Management MDM Function Collaborate Create and Define Operationalize Real-time business services MDM Data Domain Party, Product, Account, Location 29 Analyze Insight and Analysis

IBM Master Data Management Server v. 8. 0 § Manages the complete master record for operational customer data to all systems & channels § Capable of being the system of record – with full transaction processing and business logic capabilities § Provides accurate and complete customer data to all operational business processes that require customer data – Improved and differentiated customer service – Increased revenue via improved cross-selling and event management – Ability to persist ‘new’ customer data such as privacy preferences, events, and multi-channel interactions – Regulatory compliance 30

IBM Master Data Management Server Action Maintains single record MDM business services Data Governance Rules of visibility Services interface Integrity Intelligence Business rules to manage events Knowledge Master Profile MDM Server is a service-oriented business application § § § 31 Action – 100% service oriented – every function is a business service to maintain the master customer profile – More than 700 large and fine grain business services Integrity – Data quality components are integrated with MDM business services – Detection of duplicate parties, data validation rules – Data stewardship UI – managing data and data quality within MDM Server customer master profile Intelligence – Business rules – event detection and notification – Critical data change management Data Governance – Privacy, data security & governance – manage user/role access to data at a granular level Knowledge – Party-centric model with complex hierarchies – Contains operational database and history/audit trail database to maintain master data audit trail Note: all information represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives

IBM Master Data Management Server Adding a New Customer § Action- MDM Server kicks off a large grain business service called ‘add new customer’ to begin transaction § Knowledge – MDM Server houses and stores the new record § § 32 MDM Server’s Integrity and Intelligence called on to perform search, data validation, party matching and event notification capabilities to ensure accuracy of data and notification to other systems Data Governance provides security around who can view and edit the data Action Name Address Add Customer Search Person Check for Duplicates Add Customer Contact Method Identification Relationship Financial Profile Intelligence Check User Authorization Event Notification New Customer Added Integrity Duplicate Suspect Processing Information Integrator for Standardization & Matching Knowledge

IBM Master Data Management Server Multiform MDM Function - Operational IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Services interface Integrity Maintains single record Intelligence Business rules to manage events Knowledge Master Profile § Designed for integration to multiple applications § Contains both large and fine grain services – Add customer, value package management, add product (large grain) § Rules of visibility to authorize data access – Update phone number, add hierarchy node (fine grain) § Critical data change business rules § Flexibility – Easily extend or build new services from existing services 33 § Business Logic components integrated with business services § Event processing § Duplicate suspect processing

IBM Master Data Management Server Multiform MDM Function - Operational IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Knowledge Master Profile § New business services – Account & agreement – Value package management – Product category & hierarchy management – Know-your-customer compliance – Needs analysis – Person and organization demographics § Coarse grain cross-domain business services 34 Services interface Integrity Maintains single record Intelligence Business rules to manage events

IBM MDM Business Services - Categorization Party Demographic Services Roles-related Services Customer Service and Sales Services Party Basic Demographics Definable Demographics Party Names Party Values Party Search Delete Party History Party Macro Roles Contract Party Roles Rebate/Claim Party Roles Grouping Party Roles Hierarchy Part Roles Relationship Party Roles Search by Party Role Interaction History Campaigns Privacy Customer Preferences Party Values (Value Notes/Alerts Profile) Data Stewardship Services Party Relationship Services Location Services Duplicate Suspect Collapse/Split Parties Management Aggregate View Duplicates Collapse with Rules Source System Data Decay Metadata Suspect Search Create Search Party Relationships Party Grouping Hierarchy Management Role Relationships Line of Business Address Contact Method Household Location Group Role Location Address Standardization Address Demographics Party Financial Profile Services Party Identification & Directory Services Bank Account Credit Cards Payroll Deduction Income Source Party Identification Party Equivalency ID Registration Search Party Equivalency System Key ID ID Acxiom Abilitec Key. Retrieval 35 Events & Customer Insight Services Party Events Customer Value Profile Corruption Management Needs Analysis KYC Questionnaire New in IBM MDM Server v 8 Account Services Product Services Contract Component Contract Party Role Contract Details Contract Location Contract Terms & Contract T&C Override Conditions Contract-Product Contract Note/Alert Relationships Contract Search Contract Relationship Value Package Management Contract Services Contract Component Contract Party Role Contract Location Billing Rebate/Claim Contract Note/Alert Contract Search Contract Relationship Holding Product Type Hierarchy Product Values Product Search Product Terms & Product Relationship T&C Conditions Product Category Product Identification Hierarchy Product Equivalency ID Product Content Mgmt Ref Product Relationships Category Hierarchy Search Equivalency Category Hierarchy Values Terms & Conditions Parameters History & Audit Services Party History Audit Trail Account History Audit Trail Product History Audit Trail Transaction Audit Log Delete Party History

IBM Master Data Management Server Multiform MDM Function - Collaborative IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Services interface Integrity Maintains single record Intelligence Business rules to manage events Knowledge Master Profile § Integration with Information Server Quality Stage – Probabilistic matching – Standardization 36 § Data Stewardship Application enhancements – Task management – Party management capabilities – Data decay and recency – Hierarchy management – Grouping and relationship management

IBM Master Data Management Server Multiform MDM Function - Analytical IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Services interface Integrity Maintains single record Intelligence Business rules to manage events Knowledge Master Profile § Event management engine – Detect master data events – Trigger actions – notification messages § Integration with IBM Industry Model Data Warehouses – Banking Data Warehouse – Insurance Information Framework – Telco Data Warehouse – Retail Data Warehouse § Ability to interface with insight stored within DW or store value profiles within IBM MDM Server 37

IBM Master Data Management Server Platform Features IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Services interface Integrity Maintains single record Intelligence Business rules to manage events Knowledge Master Profile 38 Flexibility Federated Deployments Multiple extension methods – dynamically extend/add data model via multiple mechanisms. Multiple application instance deployments Data Validation Engine Data model/service configuration (rename and disable parts of the product) Message Notification Engine Performance Common Audit Trail Performance management reporting Metadata management Performance optimization Integrated platform tooling – Development, Test & Deployment

IBM Master Data Management Server Multiform MDM Data Domains Integrity Maintains single record Action MDM business services Intelligence Data Governance Knowledge Master Profile Services interface IBM Master Data Management Server §Replication of data in siloed projects §Requirements grow over time and require different POVs Single view of CUSTOMER PRODUCT Agent Customer Employee Prospect Supplier Part Product Bundle Item/SKU Service Terms & Conditions Master Single view of ACCOUNT record Contract Agreement Transaction Reward Program Financial Account 39 LOCATION Location Address Contact Method Geography/Region

IBM Master Data Management Server Multiform MDM Data Domains Integrity Maintains single record Action MDM business services Intelligence Data Governance Knowledge Master Profile 40 Services interface IBM Master Data Management Server Hierarchy Party Events & Insight Identification Product Roles Relationships & Groups Account Interactions Location Terms & Conditions

IBM Master Data Management Server Multiform MDM Data Domains Integrity Maintains single record Intelligence Action MDM business services Data Governance Knowledge Master Profile Location Services interface IBM Master Data Management Server KYC Compliance Demographics Interaction Relationships Privacy Roles Party Contract and Product Financial Profile Events and Insight 41 Data Identification Stewardship Party model with support for different Party Roles Agent Customer Employee Prospect Supplier

IBM Master Data Management Server Multiform MDM Data Domains Integrity Maintains single record Intelligence Action MDM business services Data Governance Knowledge Master Profile – Base Contract Services interface IBM Master Data Management Server – Relationships to Party – Relationships to Product – Contract Terms and Conditions – Contract Services – Value Package Sample Terms and Conditions Crossreference Keys Account to Product Relationship Account Relationships Agreement Account to Party Role Account Components Account 42 Account Alerts Account model with support for different Party Roles Contract Agreement Transaction Reward Program Financial Account

Account MDM Domain – The natural evolution § Customer Domain always had the notion of “holdings” as those items that make the customer a customer § These where initially expressed as agreements (in fin. serv. ) or contracts (other industries) § As customer centricity objectives advanced, a more comprehensive need emerged: a comprehensive ability to offer, capture and administrate accounts for customers, that can support complex “holdings”, i. e. wideranging products, services subscriptions, product owned/registered, etc. or bundled versions thereof § Account is a natural linkage point between the customer (party) and product domains § Retail Examples: Store Card Accounts, Contracts with Suppliers etc. – The Account domain would be used to manage the Contract between a Retailer and Vendor (Supplier) – The Account domain would be used to manage the Contract (Store Card Account) between a Retailer & Customer 43

MDM Account § MDM Account provides a single source of truth of accounts and relationships among accounts. – It can be used to offer new services for existing accounts • • Consolidated Statements Consolidated Billing & Payments Account Sweeps Rewards Points across accounts – It can be used to offer new products by aggregating existing accounts MDM Account Value Package X (Managed Account) Cheque Account (Ref Account) Savings Account (Ref Account) Credit Account (Ref Account) • Value Packages § In all cases, the Account hub is made up of Managed Accounts and Reference Accounts Cheque – Managed Accounts are system of record and can be transacted against. – Reference Accounts are managed in other systems (analogous to WCC contract) § IBM MDM Server v 8. 0 focuses on foundational and value packages. 44 Account Savings Account Credit Account Cheque System Savings System Credit System

Account Details Examples of some elements added to contract: agreement type, agreement status type, service level type, managed account indicator, agreement name / nickname, signed / executed / terminated dates… 45

Value Package Example § How do we govern the terms and conditions of a value package? – Value Package product is defined using product structure – This includes terms and conditions with attributes • Eg, “Core components must be in a valid status” with attributes “normal-open”, etc – When a Value Package is sold to a customer, a contract (account) is created with relationships to the contracts included in the package. – When a subsequent transaction updates contract details (for a reference account), event manager entries created. Rule executed to re-evaluate conditions. 46 § Have ideas on how to advance design around terms and conditions to provide more support for condition evaluation. Looking for feedback. Also with other topics such as product model.

Value Package (Product Bundle) Example Account Domain “Triple Account” Value Package (Managed Account) Product Checking Account (Ref Account) 47 Savings Account (Ref Account) Party Credit Account (Ref Account) Checking Account Savings Account Credit Account Cheque System Savings System Credit System

IBM Master Data Management Server Multiform MDM Data Domains Integrity Maintains single record Action MDM business services Intelligence Data Governance Knowledge Master Profile Features – Base Product – Product Type Hierarchy Services interface IBM Master Data Management Server § – Product Dynamicity – Product Terms and Conditions – Category Hierarchy – Localization Good Category Service Hierarchy Product Terms and Conditions 48 – Product Services Crossreference Keys Product model with support for different Party Roles Part Product Bundle Item/SKU Service Terms & Conditions

Product Domain § Support for large, complex product implementations – Millions of products and relationships – Complex data model requirements – Validation framework – Auditing and Effectivity Dating § Out of the box product data model – Flexible and Extensible – Standards based – Links to other data domains § Support for complex product structures and relationships – Item to Item, Up-Sell, Cross-Sell, Bundles, Packaging Hierarchy – Support for multiple product hierarchies and mapping – Inheritance 49 § Out of the box business services

MDM Product § MDM Product provides a single source of truth for product information. – When deployed as a “Collaborative Hub” supports the collaborative authoring of products. – When deployed as an “Operational Hub” provides product information out to the enterprise. § Basic constructs include Products, Relationships, Product Catalogs, Product Terms and Conditions. § Product domain addresses the fact that different types of products have different attribution associated to them. – The definition of a CS service is different than the definition of a credit card product which is different than the definition of a deposit account product… § IBM MDM Server v 8. 0 focuses on foundational and the Operational Hub style. 50

Product Details 51 Card Product Loan Product Credit Facility Deposit Prod

Sample Set of Services § § § § § 52 Add. Product. Instance Update. Product. Instance Get. Product. Instance Search. Product. Instance Add. Product. Admin. Sys. Key Update. Product. Admin. Sys. Key Get. Product. Admin. Sys. Key. By. Product. Id Get. Product. Admin. Sys. Key. By. Id. PK Get. All. Product. Admin. Sys. Keys Add. Product. Identifier Update. Product. Identifier Get. All. Product. Identifiers Add. Product. Instance. Relationship Update. Product. Instance. Relationship § § § § Add. Product. Type Update. Product. Type Get. All. Product. Types Add. Product. Type. Spec. Use Update. Product. Type. Spec. Use Get. All. Product. Type. Spec. Usages Get. All. Product. Specs (bordeaux) Categorize. Products (bordeaux) Update. Product. Category. Association Recategorize. Product (bordeaux) Get. All. Product. Category. Associations Get. Product. Category. Association Get. All. Products. In. Category Get. Product. Instance. Relationship Get. All. Product. Instance. Relationships § About 20 Category-Hierarchy services not shown in this list § Term. Condition services not shown in the list.

Product Bundle Example Product Data Account Data Starving Student Bundle Joe Eager (Student) Student Checking Product Student Savings Product Starving Student Bundle Shell No Frills Credit Card Product (managed account) i. Pod Student Checking Account Will receive a rate discount on the credit card Student Savings Account (reference account) Discount = 5% Free i. Pod if accounts in good standing after three months The accounts within the bundle must be in a valid status Status = Active Status = Credits Only 53 Credit Card Account (reference account) override Will receive a rate discount on the credit card Discount = 7%

Implementation Approaches Consolidation Registry Co-existence Transaction § Multiform MDM requires multiple Implementation Approaches to ensure customer success § IBM is the only MDM vendor able to deliver on all 4 Implementation Approaches: §The Transaction approach is a superset (100% functionality) encompasses the full functionality of all others §Consolidation, Registry and Co-existence are a partial deployment/use based on specific use cases/requirements §Multiple approaches may be used simultaneously (i. e, single deployment, single install) to meet specific business needs/requirements within: §Data domains or individual subject areas/attributes §Business units §Consuming applications 54 §Geographies

IBM Master Data Management Server Implementation Styles IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Knowledge Master Profile Consolidation Registry Co-existence Transaction § Full data model across multiple data domains § Batch import capabilities + Information Server integration § Data stewardship and governance functionality § Batch export to target systems 55 Services interface Integrity Maintains single record Intelligence Business rules to manage events

IBM Master Data Management Server Implementation Styles IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Knowledge Master Profile Consolidation Registry Co-existence Transaction § Index (cross-reference) capabilities for any data entity and attribute in the IBM MDM Server database § Search and inquiry services § Capabilities for virtual consolidated view via Information Server capabilities (federated queries) § Data stewardship and matching 56 Services interface Integrity Maintains single record Intelligence Business rules to manage events

IBM Master Data Management Server Implementation Styles IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Knowledge Master Profile Consolidation Registry Co-existence Transaction § Full data model across multiple data domains § Cross-reference keys, subscription management, and message notification capabilities § Search and inquiry SOA services 57 Services interface Integrity Maintains single record Intelligence Business rules to manage events

IBM Master Data Management Server Implementation Styles IBM Master Data Management Server Action MDM business services Data Governance Rules of visibility Services interface Integrity Maintains single record Intelligence Business rules to manage events Knowledge Master Profile Consolidation Registry Co-existence Transaction § System of record add and update SOA transactions, with full business logic § Transaction audit logging and database change logging and auditing § Authorization an the data attribute level – rules of visibility to control data access § Transaction processing capabilities – transactional integrity across all business services and ability to participate in enterprise (cross application) transactions 58

Key Business Drivers for MDM § Revenue Enhancement – More intelligent cross-sell & upsell via complete understanding of customer (profile, accounts & interactions) to leverage bundling opportunities § Consistent Customer Treatment – Blending channels to deliver common customer interactions /experiences across all touch points § Operational Savings & Efficiencies – “Once & done” enterprise-wide services for key customer processes such as account changes (name, address) § Privacy & Regulatory Compliance – Central location for consistent rules of visibility & entitlements § M&A Infrastructure – Shortening M&A customer, desktop, & billing integration timeframes 59

Inconsistent Customer Treatment Siloed views of customer information lead to inconsistent customer service. Web Site Contact Center Store Name: Jane Smith Name: Jane F. Smith Address: 437 Easy Street Address: 123 Main Street Jane Smith § Is a high value web customer § Yet… to the call center she is completely unknown § Jane places an order via the contact center § The call center rep does not see that Jane is a High Value customer § And is not given the discount promotion she is offered on the web site 60 High value customer 10% off Preferences Sales History Product: 1234, 5748 Customer Value: High Sales History Product: 6574

Consistent customer treatment Deliver common customer interactions / experiences across all touch points. Web Site Contact Center Store Jane Smith § MDM Server business services provide every customer interaction point with the complete view of the customer § Jane is now viewed and treated equally across channels § And Service Improves… § “Yes I do see the order you placed on 2/2. ” § Did you know you qualify for a discount promotion? ” § “Would you like me to send that to your home address? ” 61 get. Party Service Customer-centric Business Service Name: Jane F. Smith Address: Home - 123 Main St Billing – 437 Easy St X-Sell Up-Sell: Items 5432, 4355 Privacy Preferences: Solicitation - No Sales History: Product 1234, 5748, 6574 Interaction History: Service Issue 4/23/06 Web Order 2/2/06 Store Order 1/5/06 Demographics: Income - $100, 000 Interests - Running Age - 41 Relationships Household: Daughter – Jenny Husband – John Employer – IBM Life Events: Daughters Birthday Wedding Anniversary Customer Value: High Identifier IDs Agreements & Contracts: Service Contract Warranty

Operational Inefficiencies Problem: Inability to sell and service bundled product Web Site Product Sys 1 Name: Jane Smith Product A: Address: 437 Easy Street Product B Discounted Product Sys 2 Jane Smith § The marketing department wants to offer this ideal customer bundled products to increase revenue and drive customer loyalty § Operational systems are not capable of managing bundles, which are relationships among existing products § The result is significant manual effort and cost to create the illusion of a bundle (e. g. , manually discounting a product in multiple systems) and no way to manage or track the bundle over time 62 Product 3345 67 High value customer 10% off Product C Sales History Product: B, 2234 68 Customer Value: High Product 2234 68 Discounted

Operational Savings and Efficiencies Lower costs by managing and servicing valuable product bundles centrally. Web Site Product Sys 1 Product Sys 2 Jane Smith § MDM Server lets you manage the terms and conditions of the product bundle § It lets you manage eligibility – who can buy the bundle, and at what terms and conditions § Account – service the bundle once purchased § MDM Server manages bundle data – the discount, relationships, Terms & 63 Conditions Customer-centric Business Service Name: Jane F. Smith Address: Home - 123 Main St Billing – 437 Easy St X-Sell Up-Sell: Items 5432, 4355 Privacy Preferences: Solicitation - No Sales History Product: B, 2234 68 Interaction History: Service Issue 4/23/06 Web Order 2/2/06 Store Order 1/5/06 Relationships Household: Daughter – Jenny Husband – John Employer – IBM Customer Value: High Identifier IDs Demographics: Income - $100, 000 Interests - Running Age - 41 Life Events: Daughters Birthday Wedding Anniversary Agreements & Contracts: Bundle Service Contract Warranty

Agenda § Master Data Management Market Update § IBM Multiform MDM Strategy – Keep it simple § Introduction to IBM MDM Server v 8 – Key Supported Features – Implementation Styles – Packaging and Pricing – CDI Entry Level Concept § Case Studies 64

MDM Packaging and Pricing Highlights § Tiered approach helps maintain value based price point § Pricing done through Passport Advantage via offline calculator § More simplistic than previous WCC model § Will provide more consistency in pricing § Reduces need for heavy discounting § Collapsed number of Party record types § Sold with Value units as the pricing metric § New structure for selling according to functional style § More enablement coming prior to launch*** 65

MDM Server: Overview of Chargeable Components § Sold with Value Units as metric § Value units calculated on three factors: – Industry (5) • 5 choices – align with IBM Sectors (i. e. COMM, DIST, FSS, IND, PUBLIC) – Types of Records (4) – Functional Usage Styles (2) • • Foundation is pre-requisite for Transaction Hub No relevant product functionality at this time for Transaction Hub usage style for Product record type Industry: XYZ Functional Usage Styles Foundation Transaction Hub 66 Types of Records Party: Individual Party: Organization Account Product

MDM Server Pricing: Step 1 – Industry § MDM Server’s LI (and calculator) will include all industries in IBM’s standard sector/industry definitions (see below) Communications Sector Distribution Sector Financial Services Sector Industrial Sector Telecommunications Retail Industry Banks Automotive Government Media& Entertainment Consumer Products Financial Markets Electronics Education Insurance Health Utilities Travel & Transportation Aerospace & Defense Chemical & Petroleum Industrial Products 67 Public Sector Life Sciences

MDM Server Pricing: Step 2 – Records § Customers will determine the number and type of records required based on the following 4 categories of records: – Party: Individual – Party: Organization – Account – Product Types of Records Party: Individual Party: Organization Account Product A Party: Individual record describes an actual person represented. Examples of Party: Individual include: person customer, person prospect, employee, agent, broker, and citizen. A Party: Organization record describes a recognized legal organization or logical grouping of individual person parties. Examples for party-organization include: organization customer, organization prospect, supplier, vendor, and any group defined legal entity. An Account describes a contract or agreement that is owned by an individual (an actual person) or recognized legal organization or logical grouping of individual person parties. Examples for Account include: a savings account, an insurance policy, and a service agreement A Product record describes a finished physical good or contract or agreement that is offered to either individuals or organizations. Examples of Product include: a box of cereal, a food processor, a savings account, an insurance policy or a service agreement. 68

MDM Server Pricing: Step 3 – Functional Usage Style § Customers will determine the Functional Usage Style(s) required for their deployment needs § Customers may need both Foundation and Transaction Hub to address their needs § Purchase of the Transaction Hub usage style mandates a pre-requisite of the Foundation usage style for that particular Record category – E. g. If a customer requires a Transaction Hub Usage style for their Party: Individual records, the customer would need to purchase both Party: Individual – Foundation and Party: Individual – Transaction Hub § MDM Server team plans to install ITLM compliance switches for second release of MDM Server Functional Usage Styles 69 Foundation The Foundation functional usage style describes when the MDM Server is used to store and use party data as an Index, Operational Data Store, or referential system. Transaction Hub The Transaction Hub functional usage style describes when the MDM Server is used as a system of record in a transactional manner. The Transaction Hub functional usage style pre-requisites the Platform functional usage style for any given category of Record.

MDM Server Pricing – More detail Industry: XYZ Types of Records PARTY ACCOUNT PRODUCT Functional Usage Styles Foundation Indexes & Source Values: party equivalency, native key, product x-ref table, default source value, granular services, contract role Basic account data (reference data): Contract and contract component, billing summary, claims Basic Party data & functionality: person, org, person name, org name, identifier, granular data services, large grain services (data centric), data validation engine, data decay Supporting part data & functionality: org type, industry type, party misc values, financial profile (bank accts), person and org demographics, income source, granular data services, privacy data (no rules/defaults) Hierarchy & grouping & relationships: hierarchy, grouping Alerts: notifications, party alert, account alert, campaigns Interactions: interactions Duplicate suspect processing & matching engine: data steward UI, Dup suspect services & tables, Evergreen app, Data corruption mgmt Other: History, D&B Transactional Hub Advanced party data & functionality: LOB relationships, critical data change management (pending), advanced duplicate suspect processing (known duplicate) management, federation services, KYC & needs analysis, ROV, macro role, coarse grain business services, transaction security & user authentication, delete services, privacy rules/defaults, large grain services (business functionality) Events: event manager, evergreen Other: Axciom, Fast Track, ILOG 70 Account relationships Value package management (all relationship services) Product Data: all basic services in v 8 release

Agenda § Master Data Management Market Update § IBM Multiform MDM Strategy – Keep it simple § Introduction to IBM MDM Server v 8 – Key Supported Features – Implementation Styles – Packaging and Pricing – CDI Entry Level Concept – MDM Core. Advantage § Case Studies 71

Current Challenges in the MDM Market § We are seeing niche vendors in more and more deals § Past WCC messaging reemphasizes competitor's messaging – One size fits all not as effective § Desire to increase volume of MDM deals § Difficulty deploying POCs § Implementation effort seen as too large and expensive § Customer misperception that one vendor fits one style § Customer having limited capital resources to start their projects More than 98% of WCC phase I implementations are Coexistence/Registry and NOT Transactional! 72

MDM Core. Advantage Concept § Project team in place building capability § Availability expected end of Q 1 2008 § Built on MDM Server v 8 § Will be priced via Foundation for MDM Server Pricing Model § Leverages Information Server v 8 – Data Stage for Initial Load, delta updates – Quality. Stage for Standardization and Matching – Information Analyzer for data analysis § Implementation options for multiple phases 73 – Each phase less than 2 months/200 K

MDM Entry Level Offering Industry: XYZ Types of Records PARTY ACCOUNT PRODUCT Functional Usage Styles MDM Core. Advantage Foundation Indexes & Source Values: party equivalency, native key, product x-ref table, default source value, granular services, contract role Basic account data (reference data): Contract and contract component, billing summary, claims Basic Party data & functionality: person, org, person name, org name, identifier, granular data services, large grain services (data centric), data validation engine, data decay Supporting part data & functionality: org type, industry type, party misc values, financial profile (bank accts), person and org demographics, income source, granular data services, privacy data (no rules/defaults) Hierarchy & grouping & relationships: hierarchy, grouping Alerts: notifications, party alert, account alert, campaigns Interactions: interactions Duplicate suspect processing & matching engine: data steward UI, Dup suspect services & tables, Evergreen app, Data corruption mgmt Other: History, D&B Transactional Hub Advanced party data & functionality: LOB relationships, critical data change management (pending), advanced duplicate suspect processing (known duplicate) management, federation services, KYC & needs analysis, ROV, macro role, coarse grain business services, transaction security & user authentication, delete services, privacy rules/defaults, large grain services (business functionality) Events: event manager, evergreen Other: Axciom, Fast Track, ILOG 74 Account relationships Value package management (all relationship services) Product Data: all basic services in v 8 release

How to recognize an entry-level opportunity? § Are you competing against niche vendors(Siperian, Initiate, Purisma, …) § Does your customer only need access to basic party data? § Is your prospect not requiring bi-directional real-time updates? § Does your prospect have severe budget limitations? § Is your customer mainly concerned on short term results? § Is the scope defined to a single department or LOB? § Are there only one or two channels of many being integrated? 75

Information Management 76 Recent Win - Physicians Mutual Insurance Company Overview § Life and Health insurance provider § Approx 1 million customers § Big IBM shop – extensive user of IAA model Competitive Situation § Engaged in head to head competitive situation with Siperian 4 Siperian had offered low license price of less than 500 K 4 First WCC quote was 1. 5 million 4 Siperian already had “verbal” agreement for POC How we won the deal § IBM was the preferred choice from a strategic perspective § Executed a 4 week POC and stopped Siperian POC effort § Gave a competitive license price based on PM requirements § Bundled in Quality. Stage for 356 K license price 76

Information Management 77 Classic Example of Style Progression BUSINESS PROBLEM 4 Guest data scattered across dozens of property and reservation systems 4 Inability to recognize high value guests and target for reward program membership 4 Poor data quality and inability to recognize customers SOLUTION Phase 1 Phase 2 Phase 3 Implementation Registry, Co-existence, Transaction hub, Registry, Co-existence Function Operational, Collaborative Data Guest, reservation, preferences Guest (deep), reservation, preferences 77

IBM MDM Server § The most experience - numerous proven high volume MDM implementations § Ranked as leader by industry analysts § The most complete MDM application available to the market - significant out-of-the box MDM application functionality § Enables any MDM strategy - simple or the most complex – or anything in between § Allows for phased, multi-style, multi-phased implementation § Begin with our proven rapid start implementation § Evolve to any level of complexity and scale using the same platform, technology and skills 78

Information Management 79 Appendix § Case studies 79

Client Example Consolidation, Co-existence, & Transaction style Challenge • Full understanding of business relationship with clients • Need to understand credit risk • Improve credit decisioning • Improve ability to provide complete Basel II compliance Solution & Components 80 Phase 1 Phase 2 Phase 3 Implementation Consolidation, Coexistence Transaction hub, Registry, Coexistence Usage Style Operational, Collaborative Data Party(Person, Organization); D&B data Party, Account, D&B data APPROVED FOR EXTERNAL USE

BUSINESS PROBLEM – Guest data scattered across dozens of property and reservation systems – Inability to recognize high value guests and target for reward program membership – Poor data quality and inability to recognize customers SOLUTION 81 Phase 2 Phase 3 Implementation Registry, Coexistence, Transaction hub, Registry, Coexistence Function Operational, Collaborative Data Guest, reservation, preferences Guest (deep), reservation, preferences

BUSINESS PROBLEM – Multiple brands from acquired companies – no single face to the customer – Low cross selling rates across LOB – High costs, operational inefficiencies SOLUTION & COMPONENTS Phase 1 Phase 2 Implementation Registry Transaction, registry, co -existence Function Operational, Collaborative Data Person customer, name, address, ID, account, data stewardship + privacy preferences (SOR) + Person customer (deep), account (reference data), privacy preferences 82 Phase 3

BUSINESS PROBLEM – Client data fragmented across multiple systems – inability to deliver a consolidated view of the customer – Inability to effectively cross sell to customer base – Inability to introduce service differentiation and efficiencies SOLUTION & COMPONENTS 83 Phase 1 Phase 2 Phase 3 Implementation Transaction - Retail Transaction - Institutional Transaction, consolidation Function Operational, Collaborative Operational, analytical Data Party (deep), location, account & claims (reference), Party (deep), location, account & claims, insight value scores

BUSINESS PROBLEM – In the process of implementing new web-based ATMs across the entire banking company. Their existing CIF system didn’t have the ability to store ATM customer preferences without significant costs for changes – Need to eventually replace core CIF – Integrate with the Banking Data Warehouse for Basel II compliance SOLUTION & COMPONENTS Implementation Phase 1 Phase 2 Phase 3 Registry, Consolidation, registry Transaction, consolidation, registry Operational, analytical, collaborative Transaction Function Operational, collaborative, Analytical Data Party (light), account (light), preferences Party (deep), location, account (reference) account & claims, insight 84

BUSINESS PROBLEM – Customer and policy information scattered across multiple applications and lines of business – Needed to shift operational focus from product-centric to customer-centric – Inefficiencies in sales and back-office systems due to redundant processes SOLUTION & COMPONENTS Phase 1 Phase 2 Phase 3 Implementation Transaction – LOB 1 new business processing Transaction – Additional LOB 50+ apps integrated where IBM is system of record Transaction, Coexistence style for smaller LOB Function Operational, Collaboration Operational, Collaboration Data Party (deep), account (policy), product, location Party (deep), account (policy), product, location 85

BUSINESS PROBLEM – Customer and policy information scattered across multiple applications and business units – Lacked consistent practices for data cleansing and matching with applicationindependent rules and processes – Need single customer view for web-based account management, privacy management, and improved compliance and cross-selling SOLUTION & COMPONENTS 86 Phase 1 Phase 2 Phase 3 Implementation Transaction (new business) Transaction, Coexistence Function Operational, Collaborative Data Customer (location, privacy); Mutual Fund privacy), Org; Mutual (account) Fund, Policy

Notice The MDM Pattern? Simultaneously address multiple requirements Initial MDM Deployments Implementation Function Domain Approaches Customer Success Business Value Operational Customer Party Account Co-existence Transactional Account/policy Operational Product Collaborative Customer Party Registry Transactional Operational Guest Location Party Location Registry Product Co-existence Enhance customer identification and service across all hotels and brands Operational Collaborative Customer Supplier Hierarchy Consolidation Location Co-existence Enhanced sales and executive planning via complete relationship understanding of customers and suppliers Operational Collaborative Customer Account Party Registry Transaction Increased ability to cross-sell/up-sell, while reducing IT related costs Collaborative Product Location Supplier 87 Co-existence Consolidation Streamline new business process to increase revenue and retention Capture preferences to increase customer retention and revenue Automated and streamlined New Product Introduction processes