This is installment 10 in my series on building a business case for MDM.
The Mike 2.0 methodology, by Robert Hillard and Sean McClowry, discusses an alternate approach to business case justification for information-centric initiatives like MDM.
Instead of tackling the business case challenge bottom
In the marketing segmentation scenario we discussed in my last blog post, cost savings from improved mailings did not provide enough savings to make an MDM project profitable. This is not unusual in that, in addition to cost savings, new revenue opportunities are required to justify the investment
In my last post, I discussed a relatively simple business case scenario where an enterprise intends to implement MDM because their current process heavily relies on a third party supplier of customer data.
Typically, though, things aren’t quite that simple.
Today, let’s discuss a more complex MDM
As it was well explained by David Linthicum, building a business case begins with the definition of the problem domain. The drivers outlined in the previous section define most common high-level problem domains for MDM.
If your ROI and NPV estimates require a more detailed list of problem domains
From the business case methodology perspective, two high level approaches can be used to estimate an MDM impact: a traditional bottom-up approach or a less traditional Economic Value (EV) approach. But which is best?
Business processes that will be improved as a result of MDM vary by industry, company, program and even the phase of the MDM initiative. Still, there are common areas and processes that are typically improved by MDM.
At the very strategic level, the board of directors and CEO want to know how the equity value and market capitalization of the company change as a result of the MDM, MDM-empowered applications, big data and analytics.
About 50 percent of MDM programs are driven by IT organizations as an IT strategy initiative. This scenario makes MDM business cases more challenging since, typically, IT management cannot approach the business case problem with the same level of power and authority as business executive management
How do organizations decide they need MDM? What drives the need and what processes will MDM enable? Big data and analytics drive the need for MDM increasingly often. The idea tends to incubate in two primary sponsorship scenarios: business strategy or IT strategy.
Big Data promises to intelligently join and mine hundreds of millions, and even billions, of records for various applications that require trusted data about customers, products, locations and other entities. Without quantifiable and verifiable confidence in data, the information originated from