According to Gartner, the #1 reason for MDM failure is the lack of a business case to qualify and quantify data management value creation. In this second session, learn more about how you select the ‘why’ for your project and paint an effective picture of the value of MDM in another informative & lively discussion with Bill O’Kane – Profisee VP & MDM Strategist, Harbert Bernard – Profisee Director of Value Management and Christopher Dwight – Profisee VP of Customer Success.
Listen to the Podcast!
Read part 1 on organizational readiness if you missed that session.
Are you in the right place where you can have a successful MDM implementation today?
In this session, we will go a little deeper on figuring out the why for your project and discuss justification, prioritization, and rightsizing the scope of your efforts. It is easy to get lost in the what and how of a project, but you will want to focus your solution around the why and how you justify moving forward with your MDM project.
When projects are focused around:
- Increasing market share
- Reducing the sales cycle
- Improving ability to cross sell/up-sell
- Improving vendor terms
- Refine low inventory model
Then, you are able to get into specific details and plans to build the business case around that strong why. When they are more focused around the left side of the image above, you get less granularity and hence less often get the approval for funding. Bill shares a tool he uses to help facilitate these further discussions. It’s easy to get overwhelmed and this diagram really helps you simplify the complex and figure out the best way to move your project forward.
The bigger picture here is finding ways to look for impact or outcome results from your project. Focusing on efficiencies for the sake of it, gets a CFO to say, “yeah, that’s really not that compelling” or “sure, we could redeploy those resources to something else, but we probably won’t, so I don’t see the reality of those potential savings.”
When you want to really show the value of an MDM project and get into the justification for it, you’ve got to look at the whole business outcome potential. Can we drive new sources of revenue from the trusted data foundation created by our MDM project? Can we fix a broken process, that when repaired eliminates redundancies that were costing X millions of dollars which goes straight back to the bottom line? An effective roadmap lets you look for specific quick wins to prioritize around business outcomes to show the value of the MDM project that creates that data foundation which can drive many numbers of projects and opportunities for increasing revenue and decreasing costs. This roadmap is what we call the Business Impact Roadmap (BIR) and what we work on with our prospects and customers.
Example of the BIR analysis:
Harbert shares the analysis will help you understand where you and your company are in the process of being ready for a successful MDM project. Involving the key stakeholders across the entire organization and getting the input to see if there is a business outcome identified, there is justification for solving that pain point, prioritization that the company is ready to work on it, and able to focus on the first quick win and build from there. Included within the BIR is a board ready presentation packet with everything you need to share internally to get the buy-in from senior leadership.
Christopher shares how he has seen priorities and interests develop during the roadmap exercise, where at one point, a low value, low return problem is identified but after the stakeholder interviews and studies – a much higher potential problem is identified and that makes the roadmap exercise interesting and exciting. Most roadmap programs are completed across 5-15 days with the sweet spot of 6 to 10 stakeholder interviews and right now about 50% of companies utilize this free service. We often find existing customers even come back and ask to do the roadmap to help with proving the early results and help lay the groundwork for fully expanding so that this way of data management becomes imbedded in every aspect of their company.
And this leads us to the last pillar of MDM success, right-sizing the scope of your initial project. Christopher talks about his work with a healthcare provider who has gone through several acquisitions and how they know they want to begin with looking at cleaning up their Provider data. But even just thinking about cleaning that up across now 4 different EMRs becomes too overwhelming, and so they right-sized their scope and are going to begin in one of the acquired companies and create the process for cleaning and providing a trusted data foundation of Provider data, and then duplicate that process across the other companies. And when that is complete you can bring together all the companies into one picture of clean, trusted Provider data which can then be used to layer on the next area to address within the company.
In summary, we learned:
You want to think big, but start small! Having a clear understanding of the big picture at the same time as a clear directive of solving a business problem. You don’t want to use a million-dollar project to solve a $100,000 problem. You have to understand the value of what you are getting out of the project, understand the scale of the problem, and what it means to solve it.
In tomorrow’s session, we will get into more depth on how you calculate the total cost of ownership (TCO). Until then!