The benefits driven-MDM (BD-MDM) journey goes through four phases. In the 1st phase called the Blueprint phase, you identify the business case for MDM. You assess the existing data management practices and determine the business value or benefits in terms of status quo cost savings, opportunity costs and costs of noncompliance. For instance, you can demonstrate reduction in integration and system maintenance costs due to implementation of a hub-spoke model. Next, identify the biggest beneficiaries of MDM; their buy-in is crucial to ensure they contribute their resources to the success of the program – either as sponsors or as key stakeholders. Subsequently, build the roadmap wherein you map the benefits using a tool such as Cranfield School of Management’s ‘Benefits Dependency Network’. Balancing of business benefits with the feasibility of MDM Solutions is the next step. The caveat here is that the solution should be built gradually w.r.t complexities and should deliver benefits at each stage. Some key criteria to do this are - Scope and measurability of benefits, magnitude of change, cost of rework and complexity of implementation.
It is advisable to have a Prepare phase (2nd phase) from a benefits perspective, before the implementation cycle. Creating a baseline against a set of measurable metrics is important. For instance, if you need to centralize customer data management, you might want to use metrics apart from business KPIs related to cross-sell and up-sell, say completeness and accuracy of customer data and time required for on boarding new customers.
This is also the time to equip IT with the required resources. This is followed by the Implementation phase (3rdphase). You create technical, process and organizational solutions that help realize the benefits defined in the Blueprint phase. First set the scope of the master data model. You may then need to establish Data Governance structure and processes through the changes in existing organizational data management practices, for example, move from the practice of decentralized creation of items to a centralized model.
Finally, you Measure or evaluate benefits (4th phase), and identify areas of improvement in implementation. This phase is especially critical for organizations that are new to MDM. Also, this demonstration could mean the difference between continued sponsorship versus a one-off project. Once you introduce the required improvements, and if they prove to be substantial, you may also adopt the solution at the enterprise level.
By helping the organization align MDM capabilities to organizational needs, BD-MDM scores over the other approaches that lack demonstrable value and enterprise vision. By focusing on benefits consciously and consistently, this approach can surely ensure the success of your organization’s MDM program.