Are your marketing and sales teams caught in that endless loop of finger pointing? B2B sellers who complain about lead quality/quantity and marketers who criticize sellers for poor follow up? After years of acknowledging their issues with each other, many B2B marketing and sales teams continue to be at odds. Just “google” marketing and sales relationships and see what you find. I did and I surfaced 98 million results! Titles such as: “The Rocky Road Between Sales and Marketing” and “How to Survive a Soured Sales and Marketing Relationship” show the dissonance and drama still very much in play.
Five years into the age of the customer and the modern B2B buyer has high expectations. They’re more knowledgeable, independent and self-directed than ever. They no longer rely on your sales people for product, pricing and other information. And they don’t want to be told what they already know. As I explore in our recently published report, B2B Buyers Mandate A New Charter For Marketing And Sales, the empowered B2B buyer is neither concerned with how your organization is structured and who’s responsible for the content on your website, nor are they interested in talking to a sales rep simply because they downloaded a white paper. Your buyers want contextual interactions with both human and digital assets across a holistic but non-linear journey. And, by in large, they want their experiences with sales people to be high value or frictionless. Think of a 2 or 5-star hotel experience – each has its merits - but 3 and 4-star hotels often disappoint.
Last week, I participated in a roundtable during a conference in Paris organized by the French branch of DAMA, the data management international organization. During the question/answer part of the conference, it became clear that most of the audience was confusing data management with data governance (DG). This is a challenge my Forrester colleague Michele Goetz identified early in the DG tooling space. Because data quality and master data management embed governance features, many view them as data governance tooling. But the reality is that they remain data management tooling — their goal is to improve data quality by executing rules. This tooling confusion is only a consequence of how much the word governance is misused and misunderstood, and that leads to struggling data governance efforts.
So what is “governance”? Governance is the collaboration, organization, and metrics facilitating a decision path between at least two conflicting objectives. Governance is finding the acceptable balance between the interests of two parties. For example, IT governance is needed when you would like to support all possible business projects but you have limited budget, skills, or resources available. Governance is needed when objectives are different for different stakeholders, and the outcome of governance is that they do not get the same priority. If everyone has the same objective, then this is data management.
Big data and Hadoop (Yellow Elephants) are so synonymous that you can easily overlook the vast landscape of architecture that goes into delivering on big data value. Data scientists (Pink Unicorns) are also raised to god status as the only real role that can harness the power of big data -- making insights obtainable from big data as far away as a manned journey to Mars. However, this week, as I participated at the DGIQ conference in San Diego and colleagues and friends attended the Hadoop Summit in Belgium, it has become apparent that organizations are waking up to the fact that there is more to big data than a "cool" playground for the privileged few.
The perspective that the insight supply chain is the driver and catalyst of actions from big data is starting to take hold. Capital One, for example, illustrated that if insights from analytics and data from Hadoop were going to influence operational decisions and actions, you need the same degree of governance as you established in traditional systems. A conversation with Amit Satoor of SAP Global Marketing talked about a performance apparel company linking big data to operational and transactional systems at the edge of customer engagement and that it had to be easy for application developers to implement.
Hadoop distribution, NoSQL, and analytic vendors need to step up the value proposition to be more than where the data sits and how sophisticated you can get with the analytics. In the end, if you can't govern quality, security, and privacy for the scale of edge end user and customer engagement scenarios, those efforts to migrate data to Hadoop and the investment in analytic tools cost more than dollars; they cost you your business.
The business has an insatiable appetite for data and insights. Even in the age of big data, the number one issue of business stakeholders and analysts is getting access to the data. If access is achieved, the next step is "wrangling" the data into a usable data set for analysis. The term "wrangling" itself creates a nervous twitch, unless you enjoy the rodeo. But, the goal of the business isn't to be an adrenalin junky. The goal is to get insight that helps them smartly navigate through increasingly complex business landscapes and customer interactions. Those that get this have introduced a softer term, "blending." Another term dreamed up by data vendor marketers to avoid the dreaded conversation of data integration and data governance.
The reality is that you can't market message your way out of the fundamental problem that big data is creating data swamps even in the best intentioned efforts. (This is the reality of big data's first principle of a schema-less data.) Data governance for big data is primarily relegated to cataloging data and its lineage which serve the data management team but creates a new kind of nightmare for analysts and data scientist - working with a card catalog that will rival the Library of Congress. Dropping a self-service business intelligence tool or advanced analytic solution doesn't solve the problem of familiarizing the analyst with the data. Analysts will still spend up to 80% of their time just trying to create the data set to draw insights.
Early this year a host of inquires were coming in about data quality challenges in CRM systems. This led to a number of joint inquires between myself and CRM expert Kate Legget, VP and Principal Analyst in our application development and delivery team. Seems that the expectations that CRM systems could provide a single trusted view of the customer was starting to hit a reality check. There is more to collecting customer data and activities, you need validation, cleansing, standardization, consolidation, enrichment and hierarchies. CRM applications only get you so far, even with more and more functionality being added to reduce duplicate records and enforce classifications and groups. So, what should companies do?
One of the biggest stumbling blocks is getting business resources to govern data. We've all heard it:
"I don't have time for this."
"Do you really need a full time person?"
"That really isn't my job."
"Isn't that an IT thing?"
"Can we just get a tool or hire a service company to fix the data?"
Let's face it, resources are the data governance killer even in the face of organizations trying to take on enterprise lead data governance efforts.
What we need to do is rethink the data governance bottlenecks and start with the guiding principle that data can only be governed when you have the right culture throughout the organization. The point being, you need accountability with those that actually know something about the data, how it is used, and who feels the most pain. That's not IT, that's not the data steward. It's the customer care representative, the sales executive, the claims processor, the assessor, the CFO, and we can go on. Not really the people you would normally include regularly in your data governance program. Heck, they are busy!
But, the path to sustainable effective data governance is data citizenship - where everyone is a data steward. So, we have to strike the right balance between automation, manual governance, and scale. This is even more important as out data and system ecosystems are exploding in size, sophistication, and speed. In the world of MDM and data quality vendors are looking specifically at how to get around these challenges. There are five (5) areas of innovation:
Spending time at the MDM/DG Summit in NYC this week demonstrated the wide spectrum of MDM implementations and stories out in the market. It certainly coincides with our upcoming MDM inquriry analysis where:
An IT mindset has dominated the way organizations view and manage their data. Even as issues of quality and consistency raise their ugly head, the solution has often been to turn to the tool and approach data governance in a project oriented manner. Sustainability has been a challenge, relegated often to IT managing and updating data management tools (MDM, data quality, metadata management, information lifecycle management, and security). Forrester research has shown that less than 15% of organizations have business lead data governance that is linked to business initiatives, objectives and outcomes. But, this is changing. More and more organizations are looking toward data governance as a strategic enterprise competence as they adopt a data driven culture.
This shift from project to strategic program requires more than basic workflow, collaboration, and data profiling capabilities to institutionalize data governance policies and rules. The conversation can't start with data management technology (MDM, data quality, information lifecycle management, security, and metadata management) that will apply the policies and rules. It has to begin with what is the organization trying to achieve with their data; this is a strategy discussion and process. The implication - governing data requires a rethink of your operating model. New roles, responsibilities, and processes emerge.
The last Forrester Wave for MDM was released in 2008 and focused on the Customer Hub. Well, things have certainly changed since then. Organizations need enterprise scale to break down data silos. Data Governance is quickly becoming part of an organization's operating model. And, don't forget, the big elephant in the room, Big Data.
From 2008 to now there have been multiple analyst firm evaluations of MDM vendors. Vendors come, go or are acquired. But, the leaders are almost always the same. We also see inquiries and implementations tracking to the leaders. Our market overview report helped to identify the distinct segments of MDM vendors and found that MDM leaders were going big, leveraging a strategic perspective of data management, a suite of products, and pushing to support and create modern data management environments. What needed to be addressed, how do you make a decision between these vendors?
The Forrester Wave for the Multi-Platform MDM market segment gets to the heart of this question by pushing top vendors to differentiate amongst themselves and evaluating them at the highest levels of MDM strategy. There were things we learned that surprised us as well as where the line was drawn between marketing messaging and positioning and real capabilities. This was done by positioning the Wave process the way our clients would evaluate vendors, rigorously questioning and fact checking responses and demos.
For decades, firms have deployed applications and BI on independent databases and warehouses, supporting custom data models, scalability, and performance while speeding delivery. It’s become a nightmare to try to integrate the proliferation of data across these sources in order to deliver the unified view of business data required to support new business applications, analytics, and real-time insights. The explosion of new sources, driven by the triple-threat trends of mobile, social, and the cloud, amplified by partner data, market feeds, and machine-generated data, further aggravates the problem. Poorly integrated business data often leads to poor business decisions, reduces customer satisfaction and competitive advantage, and slows product innovation — ultimately limiting revenue.
Forrester’s latest research reveals how leading firms are coping with this explosion using data virtualization, leading us to release a major new version of our reference architecture, Information Fabric 3.0. Since Forrester invented the category of data virtualization eight years ago with the first version of information fabric, these solutions have continued to evolve. In this update, we reflect new business requirements and new technology options including big data, cloud, mobile, distributed in-memory caching, and dynamic services. Use information fabric 3.0 to inform and guide your data virtualization and integration strategy, especially where you require real-time data sharing, complex business transactions, more self-service access to data, integration of all types of data, and increased support for analytics and predictive analytics.
Information fabric 3.0 reflects significant innovation in data virtualization solutions, including: