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This edition published August 2008
White Paper
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Challenges in Managing Costs and Risks . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Making a Case for EIM Timely, Trusted Information Drives Operational
Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Impact of Time on the Value of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Explicit Links Between Information Management and Value. . . . . . . . . . . . . . . . . . . . . . . 5
Presenting the Value Link. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
About HP and Informatica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
HP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Informatica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
Executive Summary
Enterprise information management (EIM) is a key discussion topic for organizations working to
reduce costs and drive productivity. This discussion has raised many important questions: Can
we use information management as a discipline to drive operational efficiency beyond IT? What
architectural principles enable short-term savings while establishing a long-term foundation for
organizational excellence? How does timely, accurate information boost productivity?
In this white paper, we will discuss the success principles in building an enterprise data
foundation for driving efficiency and competitive differentiations while managing costs and risks.
We will cover:
Challenges in Managing Costs and Risks
Making a Case for EIM Why Timely, Trusted Information?
Case Studies
Key Success Principles
Our objective is to provide a guide for a chief information officer (CIO) to help steer his or her
organization toward managing enterprise data for increased operational efficiency and competitive
advantages. An IT executive plays a crucial role in rationalizing the technology investments for
faster, more cost-effective business operation by extending of the power of IT across an enterprise.
An effective IT leader can also champion the delivery of timely, trusted information to accelerate
time to market and achieve higher profits by being responsive to market demand.
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risks
Extensive manual reconciliation impeded timely access to needed financial information
Duplicate and nonstandard financial processes and systems taxed human capital and IT
The audit staff was unable to effectively manage risk and optimize capital assets due to lack of
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
When accurate, complete information is not available to frontline workers for decision making, the
intrinsic value of data is diminished to a point where it has minimal or no impact. Consequently,
much of the vital business insight in the information is lost, impeding users from taking actions
aligned with the strategic goals of an enterprise. The workers may have to either make less-thanoptimal decisions without access to the necessary facts or postpone actions because such
actions appear too risky or potentially costly. Once frontline employees have information that they
can trust when they need it, the value of that information is amplified by its tighter linkage with
day-to-day operational decisions, and business performance improves. For this reason, any cogent
strategy for operational excellence will involve an investment in building IM competencies across
an enterprise.
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Reduced
Costs
Data Quality
Third-Party Supplier
Management
Retail Store
Increased
Revenue
Data
Synchronization
Minimzed
Risk
Operational
Data Hub
Insurance Agent
Actuarial Service
Data Quality
Increased
Market Share
Real-time Data
Warehousing
Improved
Customer
Service
Call Center
Sales and Marketing
To further explore the impact of timely information, Figure 2 illustrates how the information supply
chain environment drives the process of generating value across the enterprise.
Acquiring high-quality information within minutes, instead of daily, is crucial for the business
activities shown here. Insurance agents and brokers can target individuals with more attractive
profiles to increase revenue. To reduce supplier costs, procurement may use updated, enterprisewide pricing history to increase negotiation power with its vendors. The actuaries can leverage
accurate customer information to extend competitive offerings while minimizing risk. While on
the phone, call center agents can easily review customers detailed history to improve customer
service and can recommend other services as cross-sell or up-sell offerings. Sales and marketing
can assess what offerings or channels are performing best and use such insights to refine
marketing campaigns or sales incentives to grow market share. In short, timely, trusted information
is the lifeblood of this firm
any format
Data synchronization: Synchronize up-to-date data across business applications
Data quality management: Obtain accurate, consistent, and complete sales data
Data security, transparency, and auditability: Ensure secure sharing of data with an appropriate
audit trail
Timely delivery to target users: Deliver right-time data to store managers, clerks, distributors,
and suppliers
Enterprise-class deployment: Process high volumes of data across partner and store networks
In response, a new breed of CIOs has emerged that understands the correlation between
operational efficiency and IM competency. Operational efficiency is not merely about reducing
costs; it also involves improving target business outputs while optimizing the use of time and
resources. Organizations typically look at revenue, costs, and assets as output metrics for efficient
business operations. Table 1 provides examples of how the six critical elements of information
management enable these business metrics:
ELEMENTS OF
INFORMATION
MANAGEMENT
REVENUE
GROWTH
COST
REDUCTION
ASSET
EFFICIENCY
Access to all
enterprise data
Aggregate customer
and product data
Rationalized supplier
data
Data synchronization
Synchronized CRM
and SFA data
Integrated treasury
and risk management
systems
Data quality
management
Complete, accurate,
and consistent
customer data
Quality-metric driven,
loss mitigation
Data security,
transparency, and
auditability
Automated review
model with crossbusiness context
Asset classification
and prioritization
Timely delivery to
target users
Right-time delivery of
supply chain data
Real-time, logistics
management
Enterprise-class
deployment
Adaptable enterprise
data model
Shared data
foundation for reuse
Optimized IT
expenditure
A CIO can reference the following set of best practices, which covers three metrics, when
developing requirements for an EIM program. Accelerated time to value across these performance
measures revenue growth, cost reduction, and asset efficiencyis the key concept of managing
right-time information enterprise-wide.
Revenue Growth
Aggregate customer and product data: Consolidate, retire, and maintain enterprise data in any
data by making customer relationship management (CRM) and sales force automation (SFA)
interoperate with the rest of enterprise applications.
Complete, accurate, and consistent customer data: Measure and improve data quality,
including the completeness, accuracy, and consistency of customer data. To create targeted
offerings, segment customer data, and its associated product data with accurate trend analysis
on purchasing and support.
Certified and securely shared data: Use certified data for revenue analysis and forecasting
across applications.
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Customer profile for frontline workers: Empower customer sales and support personnel with in-
depth, real-time analytics. Make up-to-date customer information available to extend targeted
offerings and beat competitors.
Adaptable enterprise data model: Deliver scalable, enterprise data model to manage cross-
divisional sales opportunities and pricing with expanded partner and distribution networks
without downtime. Increase your customers share of wallet with the use of purchase and
support history.
Cost Reduction
Complete, enterprise-wide supplier data: Leverage increased negotiation power with suppliers
and distributors by making transaction history and associated pricing data available to
purchasing staff across an enterprise.
Integrated supply chain management (SCM) and enterprise resource planning (ERP):
Rationalize and consolidate SCM and ERP to automate cost tracking and monitor cash flows.
Revisit vendor relationships, service level agreements, and road maps to build a better cost
model.
Quality-metric driven, loss mitigation: Lower operational costs by using a quality-metric
approach to detect or mitigate asset losses through ongoing monitoring of default loans and
collateral devaluation. Notify business owners and stakeholders when value exceeds the loss
threshold.
Automated review model with cross-business context: Avoid manual review and intervention by
automating impact analysis of linked databases, reporting systems, and applications across the
business and IT.
Direct, right-time information delivery: Minimize data movements and increase direct data
delivery to people across functional groups. Free business and IT resources from redundant
business processes, low or no-value added maintenance activities, and rework.
Common data foundation: Revamp the data architecture to reduce data overlaps and promote
reuse.
Asset Efficiency
Rationalized supplier data: Combine supplier data to detect waste and misuse of raw
contextual information. Maintain data integrity and privacy through system-based security to
make confidential data available only to the appropriate parties.
Real-time logistics management: Identify specific locations or functional areas where real-time
data availability is crucial for optimizing inventory and other asset classes.
Optimized IT expenditure: Catalog IT application and system assets to detect duplicates and
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
BUSINESS GOALS /
REQUIREMENTS
management
What kind of problems would your organization face if you
dont do this?
Missed revenue or inability to expand presence within
the market
Competitive issues market share, customer churn
areas?
How do you proceed from one subject area to the next?
CURRENT
CHALLENGES
specific projects?
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PROPOSED IM
SOLUTION
in?
What areas of IM competency will you focus on? (See
ARCHITECTURE AND
CAPABILITIES
competency?
What kinds of tools and methods are available to attain
such capabilities?
How do you orchestrate the interdependencies of business
EXPECTED BENEFITS
requirements change?
What fundamental changes are you making for longer-term
benefit?
What short- to mid-term benefits can you realize?
How much cost savings or revenue increase can you
One of the key goals of this EIM value map is to help align the executives and stakeholders
throughout the life cycle. In particular, when a CIO directs her staff to engage in architectural work,
project planning, technology selection, and deployment, the detailed technical implementations
can be traced back to the original business requirements.
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
Case Studies
Improve Decision Making Through a Single Version of Truth
A top pharmaceutical company embarked on a mission to establish a single source of truth for
research and development (R&D) data warehouses. The company felt that the complex, redundant
data environments and inconsistent master data impacted the speed of product development,
trials, and approvals. The company decided to take an Integration Competency Center (ICC)
approach to accelerate data integration efforts and use economies of scale as a competitive
advantage. The goal was to realize multi-million dollar savings in two years through centralization
and repeatable processes. It leveraged its centralized data infrastructure to submit more than
several dozen new drug applications in a year. This ability to break down information silos aided
the company in leveraging expertise from multiple divisions and accelerating the life cycle of
fundamental research, product development, drug approval, and product release. In addition,
the ICC approach helped reduce the licensing, infrastructure, and deployment costs of the data
warehousing and business intelligence environments compared to the previous case of one-off
deployments.
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Seek to Build a Foundation but Start with One or Two Key Subject
Areas
Many organizations are in the midst of institutionalizing a process for controlling and managing
data movements as part of the EIM program. To enforce such standards, it is essential to establish
an architectural foundation for the teams to pool resources across functional and geographical
boundaries. After establishing the long-term framework, it is important to select one or two key
subjects to start with. This is crucial because EIM is a discipline that an organization must learn
to adopt over time and as such, it requires time and effort to be successful. The best way for
an organization to show quick wins is in those selected areas. Typically, organizations zero-in on
specific areas such as finance or customer support so that this enhanced method can deliver
business results faster while the staff can adjust to the new standards and operating procedures.
For example, learning to use up-to-date customer information in contact centers as a phase one
initiative can help the second phase effort of improving cross-sell rates by making the customer
real-time analytics available to staff. In many cases, this subject-driven, phased approach can
reduce the risk of project overruns and delays, allowing IT to set a good precedent for advancing
the EIM initiative into other areas.
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
11
time for finance and IT to consolidate and reconcile data for reporting and audit processes?
Can I reduce the amount of rework and debates across departments if the up-to-date
information is available from multiple ERP and divisional reporting systems in one place?
How much time are we spending to eliminate duplication and correct data quality issues when
reporting cycles?
Many organizations use a combination of forced rank prioritization, direct cost estimates, and
ROI analysis to characterize and select the areas for investment across the IM discipline. This
helps them gain a better sense of which projects or investments represent the largest potential
business impact. For example, after an initial focus on data quality management, a major bank
company has reduced the time that the risk management and accounting staff spent reworking
the consolidation and reconciliation process. It also reduced the time to gather the supporting
information for revenue analysis and forecast by 20-30 percent. This has also allowed expensive
resources to spend more time on mission-critical tasks, instead of no- or low-value added tasks.
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Conclusion
Running a business is a continual cycle of business measurement, analysis, implementation, and
reinvention. Information is the lifeblood of this cycle. To help empower an organization to advance
its market leadership, the CIO can guide its course for building its IM competency the ability
to unify, coordinate, and control information delivery enterprise-wide. Such EIM excellence will
serve as a foundation for the organization to accelerate the rate of returns in operation how it
anticipates and manages the opportunities and risks in the market.
A well-managed EIM foundation helps IT deliver pervasive value to the enterprise. The benefits
are multifaceted involving higher revenue growth, lower cost structures, and improved asset
efficiency, going beyond the traditional concept of IT cost savings. This is why industry leaders
typically possess a higher level of IM maturity than their respective competitors. By taking the right
steps to ensure the availability of timely, trusted information, leading companies are positioning
themselves to meet the ongoing business demand of higher operational efficiency while
continuing to increase agility and competitive advantage in the long term.
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
13
Edition and additional options (Data Cleanse and Match, and Data Profiling options). This
solution can be extended to include PowerCenter Advanced Edition, PowerExchange,
Informatica Data Quality, Informatica Identity Resolution and Informatica B2B Data
Exchange.
Global IM solution architects and practitioners: Experts with extensive experience and training
64-bit upgradeability
14
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HP
HP (NYSE: HPQ) focuses on simplifying technology experiences for all of its customers from
individual consumers to the largest businesses. With a portfolio that spans printing, personal
computing, software, services, and IT infrastructure, HP is among the worlds largest IT companies,
with revenue totaling $110.4 billion for the four fiscal quarters ended April 30, 2008.
When it comes to business intelligence, HP clients view HP as a trusted advisor, strategic business
partner, and expert implementerand for good reason. With the acquisitions of Knightsbridge
Solutions and The Technology Partners, SpA, HP now offers the accumulated experience that
comes from more than 2,000 business intelligence projects. Having solved some of the toughest
data problems in the industry, we unite vision, talent, and experience to get the job done.
Our flexible portfolio ranges from a complete suite of services to customized end-to-end BI
solutionsall leveraging our deep strength in major BI platforms and tools and complemented
by infrastructure offerings from best-of-breed partners. The HP Neoview data warehouse
solution provides companies with broader access to operational business intelligence: real-time
business information that improves insight and decision making. The new version of HP Neoview
includes several industry-first, patented technologies for operational business intelligence that
simultaneously handle mixed workloads of massive queries along with thousands of short,
transaction-like queries. More information about HP Neoview data warehouse is available at www.
hp.com/go/neoview. More information about HP is available at http://www.hp.com.
Informatica
Informatica Corporation (NASDAQ: INFA) is the leading independent provider of enterprise data
integration software and services. With Informatica, organizations can gain greater business value
by integrating all their information assets from across the enterprise. More than 2,950 companies
worldwide rely on Informatica to reduce the cost and expedite the time to address data integration
needs of any complexity and scale.
Drawing on our proven, 13-year track record of innovation and leadership, Informatica has defined
the standard for data integration that has delivered competitive advantage and operational
excellence to leading Global 1000 companies and government organizations. The Informatica
platform enables an organization to automate the life cycle of accessing, discovering, and
integrating all its data assets in any format, historical and operational across the enterprise.
By deploying Informatica as a foundation for managing data movement in enterprise data
warehousing (EDW), an organization gains the advantages of minute-by-minute decision making,
cross-business unit visibility, synchronization of mission-critical operations, and transparency for
regulatory compliance, while reducing costs and implementation risk. More information about
Informaticas EDW solutions is available at:
http://www.informatica.com/solutions/enterprise_data_warehouse
More information about Informatica is available at http://www.informatica.com.
Driving Operational Efficiency: Key Success Principles for Enterprise Information Management (EIM)
15
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6882 (08/06/2008)