FIELD REPORT

Cognizant for CDI, MDM & Data Governance

Monday, February 5, 2007                         
                             
(Note: If you have trouble accessing the hyperlinked articles, please go directly to MDM Alerts)

SUMMARY

This newsletter focuses on analysis of product strategies and best practices rather than the vendor press releases.  The intent is to provide ongoing advice for enterprise data architects, data stewards, CIOs, CTOs and MDM project leads in helping develop their MDM strategies – via independent, authoritative, and relevant analysis. 

This particular report is one of an ongoing series of MDM Field Reports™ that highlight the major systems integrators as well as the upstart consultancies that specialize in MDM and data governance.   Other recent MDM Alerts™ outlined why an enterprise should consider “changing out” their incumbent systems integrator, and what are the “top 5” technical evaluation criteria in use by large IT enterprises to select their SI partner(s).

Cognizant Technology Solutions is one of the world’s leading systems integrators (a.k.a. global service providers or IT service providers) and has a practice dedicated to MDM solutions (“Customer Solutions Practice”) based in Teaneck, New Jersey.Through continuous innovation and savvy bran ding, Cognizant is well positioned to become an industry-leading provider of IT services for MDM in both mid-market and Global 5000 enterprises.  This is due to Cognizant’s current “SOA-compliant Enterprise Customer Master (ECM) framework” as well as strategic partnerships with leading MDM software vendors Initiate Systems, Oracle (Siebel UCM), Siperian, and Teradata. 

The MDM market is rapidly evolving to require support for integrated data quality, data governance, hierarchy management, and process/policy hubs.  To remain a leader in this field, Cognizant (and other SIs and softare vendors) must invest in these key areas – both through internal development of the ECM framework as well as partnering with best-of- breed software vendors.  IT and business management understand the need to scrutinize the future road map of strategic partners – esp. when it comes to missiion critical master data management.  Furthermore, Cognizant must differentiate itself from other Tier 1 global service providers by innovating and branding, i.e., deliver on a next-generation “SOA-compliant MDM Framework” to support “master reference data” for more than just “customers”.  Concurrently, Cognizant must differentiate itself from mega software vendor’s maturing solutions (i.e., IBM, Oracle, and SAP have already moved to “MDM” and “process hubs” in their marketing and product plans).  Additionally, IBM and Oracle have telegraphed “registry style” offerings which will obviate market demand for Cognizant ECM’s current strengths.  Can an SI innovate like a start-up or mega vendor in providing future capabilites?  Or is the IS savvy enough to identify and partner with those best-of-breed vendors that meet such user requrements.  SIs close to the innovating software vendors are in the best position to learn from and influence the direction of these capabilities.  Thus this is a very symbiotic and intimate relationship and one that is vital for systems integrators to secure and leverage.  First, note that the SI gets early access to the latest and greatest software – and also knows painfully well the failings of such software.  Secondly, SIs with strong best-of-breed alliances will be better informed about the future direction of this software category.  And if the MDM software vendors are savvy, then the software vendor learns from the SI’s implemenations teams about requirements as well as the heartburn inherent in today’s MDM capaibiltities. And lastly, let’s note that SIs have leverage beyond that of a singular enterprise installation as they magnify and consolidate the requirements as well as the strengths and failings of the MDM software vendors’ products.  As a research team, MDM Institute analysts look to the SIs for such insights.

Bottom line:  Given the strategic nature of MDM projects, the capabilities of partner SIs must be given close scrutiny – not only in effort to contain costs, but also to insure success of this vital infrastructure investment.  Cognizant is clearly a leader in providing MDM and data governance services yet must define, announce and aggressively execute a more aggressively public MDM strategy centered around best-of-breed partnerships designed to flesh out its own “SOA-complaint MDM framework”.  During 2007, Cognizant must bolster its current “early mover” successes to counter the possibility of other nascent MDM global service providers taking this role —e.g., Infosys, Satyam, TCS, or Wipro.
                                                 

The Importance of SIs to MDM Success

To rhapsodize on the current “group think” of the MDM Advisory Council regarding the importance of evaluating new SI partners for their CDI-MDM projects, one could summarize their views as:

Alternatives abound to your historical SI partners.  During 1H2007, the MDM Institute will release its MarketPulse™ report titled on “MDM Systems Integration Services: 2007-08 Market Review & Forecast” which will include ratings for both 1st and 2nd tier consultancies as well as evaluation criteria and other findings based on surveys of the MDM Institute Advisory Council.  For a preview of the SIs and consultancies to be reviewed, browse our “Top 50” list.

Cognizant’s Target Markets

Cognizant’s current markets for its Customer Solution Practice include:

Near term (6-12 months), Cognizant needs to expand its markets for the below reasons:

Longer term (12-24 months), Cognizant needs to refine its current strategies to also:

While long term the plan may be to compete directly with the three mega vendors’ data hubs (IBM, Oracle-Siebel, SAP) for Global 5000 business with the ECM framework, initially it is impossible to go head first against them unless the solution requires: (a) mid-market systems footprint and pricing, and, (b) Cognizant-specific added value in vertical extensions, hierarchy management, process hub, data governance, etc.  
Furthermore, Cognizant needs to play to its strengths in:

 

Strategic Partnerships

Best-of-Breed MDM Partners

Cognizant must aggressively establish and grow partnerships with key best-of-breed MDM vendors who require sophisticated MDM capabilities yet are unable to invest as aggressively as IBM, SAP, and Oracle-Siebel.  For example:

Mega Vendor MDM Partners

Cognizant must also aggressively establish and grow partnerships with key mega MDM vendors who require additional functionality at speeds faster than available via internal R&D.  For example:

 

Ranking Cognizant’s MDM & Data Governance


#1 – Extensible Data Governance Methodology & Accelerators.   Too many times, our clients report to us that “our SI doesn’t understand us” which translates to “we asked for a CDI or MDM proposal and what our SI gave us was a rehash of their enterprise data warehouse method”.  Yes, EDWs and business intelligence systems in general are often feeder systems into a MDM solution, however MDM solutions are much more near real-time than the batch-style data warehouses that are endemic in the corporate IT world.  Moreover, MDM solutions both straddle and bridge the front- and back-office systems to provide shared services for master data CRUD functions such as enterprise-wide replicated customer address/marital/phone changes.

#2 – Industry-Specific Data Model Experience.  Data models are the top technical evaluation criteria of MDM software solutions, so it follows that the technical skills and expertise of the SI candidates must match your data model center of gravity – e.g., CSC Hogan, IBM Banking Data Warehouse, Oracle Trading Community Architecture, Siebel CRM, etc.  See also the DM Review special report “Which Technical Evaluation Criteria are Most Important to Your CDI Strategy?”

#3 – SOA Architecture Accelerators.   As noted in “extensible methodology” requirement above, the design point for 3rd generation MDM solutions is not batch, and is not isolated in either the operational or analytical (left brain/right brain) division of our enterprise.  Rather, the design point of such MDM software is typically shared services/policies/processes – a.k.a. service-oriented architecture (SOA) and the component-based application approach.  Quite commonly, a commercial MDM product is often an IT organization’s first “foray into SOA”.  And like anything major attempted a first time, it mandates an SI partner who has experience.

#4 – MDM Product Experience.  As you may have noticed, costs for MDM product-specific consulting are often out of line with other rank and file IT skill sets.  During 2007-08, acute skill shortages in mega vendor products such as IBM WCC, Oracle MDM (a.k.a. Siebel UCM), and SAP NetWeaver MDM will significantly exacerbate project costs. 

#5 – MDM Project Experience.  Additionally, shortages of MDM product-neutral skill sets will drive up costs for enterprise data architects, data stewards, and other individuals with strong affinity for data governance.  Clearly, demand will outstrip the market supply for individuals with actual experience as few individuals have one project under their belt, let alone more than one project.  This will create demand for such SI innovations as “rent-an-architect” and “rent-a-data-steward”. 

Competitive Strategy

Cognizant must plan for the inevitability of the mega database and application package vendors moving further into the IT services provider market.  And Cognizant must also protect itself from market maturation of mega software vendor solutions which will obviate market demand for Cognizant ECM’s current strengths (i.e. as IBM and Oracle roll out lighter weight “registry style” solutions they will have lower initial cost and faster time-to-value as does the current Cognizant ECM model).

In addition, Cognizant must differentiate itself from other Tier 1 global service providers by further innovating and actually branding ECM, e.g., “SOA compliant Customer Master Framework”.  Cognizant must aggressively evolve both its vendor partner strategy and its product development strategy to fend off the rapid arrival of global service provider competitors such as Infosys, Patni, Satyam, Tata, and Wipro.  This soon-to-crowded competitive landscape will also include:

Bottom Line (Redux)

Given the strategic nature of MDM projects, the capabilities of partner SIs must be given close scrutiny – not only in effort to contain costs, but also to insure success of this vital infrastructure investment. 

Through continuous innovation and savvy branding, Cognizant is well positioned to become an industry-leading provider of IT services for MDM in both mid-market and Global 5000 enterprises.

This is due to Cognizant’s current SOA-compliant Enterprise Customer Master (ECM) framework as well as strategic partnerships with leading MDM software vendors Initiate Systems, Oracle (Siebel UCM), Siperian, and Teradata.  This would be further reinforced if Cognizant were to further invest in the key areas of: data governance, hierarchy management, and process hubs.  Subsequently, Cognizant could assume ownership of the next-generation SOA-complaint framework by evolving into the preferred “SOA-compliant Enterprise MDM framework” which would further leverage the tremendous marketing budgets of IBM, Oracle and SAP as they heavily market the notion of “MDM.

Furthermore, Cognizant must differentiate itself from other Tier 1 global service providers by innovating and branding, e.g., “SOA compliant Customer Master Framework” into “SOA-compliant Enterprise MDM framework”.  Concurrently, Cognizant must protect itself from market maturation of mega software vendor solutions which will obviate market demand for Cognizant ECM current strengths.

In any case, Cognizant must define, announce and aggressively execute a public MDM strategy during 2007 which will bolster its current “early mover” successes (to counter the possibility of other nascent MDM global service providers taking this role —e.g., Infosys, Satyam, TCS, or Wipro).

Wikiography

  1. “Customer Data Integration: Are Your Systems Integrators Helping Your CDI Initiative?“ column published in DM Review Magazine January 2007 Issue by Aaron Zornes
  2. CDI-MDM Institute MarketPulse™ survey questionnaire – 4Q2006
  3. “The Forrester Wave™: Customer Hubs, Q4 2006” – Forrester Research, December 22, 2006
  4. “Magic Quadrant™  for CDI Hubs” – Gartner Research, May 26, 2006
  5. “CDI: Master Data Management Milestones, Part 2" DM Review article by Aaron Zornes | March 2006
  6.  "Taking CDI-MDM to the Executive Suite: How to Win Support and Influence Decision-Makers" DM Review article by Aaron Zornes | February 16, 2006
  7.  "CDI: Master Data Management Milestones, Part 1" DM Review article by Aaron Zornes | February 1, 2006
  8. CDI & MDM references / wikiograpahy
  9. DMOZ open directory project for MDM articles

 

 

                             

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