Gartner Webinar

Seven Building Blocks for a Successful
MDM Plan

Presenter:
        John Radcliffe, Research Vice President


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© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
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                                    1
Seven Building Blocks for a
  Successful MDM Plan

                                                                                                                                                                  John Radcliffe
                                                                                                                                                                      6th April 2011




This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
Your MDM Program: Without a Good Plan, You
Will Probably Fail. What Do You Need to Do?

  STOP
                  Questions You Need to Answer                              STOP
                      in the First 100 Days




    Is there a        What does the         Does the business       Can you measure
  clear vision?     journey look like?       see the value?            success?




Has governance    What are the roles and     Is it really just a   Do we really want to
been addressed?     responsibilities?      technology project?      create a new silo?
Key Issues

1. How will organizations create an MDM vision
   and strategy that enables the business vision
   and strategy?
2. How will organizations address the governance,
   organizational and process challenges that are
   barriers to MDM success?
3. How will organizations create the technology
   infrastructure necessary for MDM success?
The Seven Building Blocks of MDM:
A Framework for Success

                         Vision

                        Strategy

                         Metrics
               Information Governance
                 Organization & Roles
                Information Life Cycle
                Enabling Infrastructure


       A Business-Driven, Holistic Approach to MDM
Create an MDM Vision That Enables Your
Organization's Business Vision
        Value Discipline Framework                               Questions to Answer:
                       "Best Product"
                                                                 1. What is the business
                         Product
                        Leadership
                                                                    vision of the
                                                                    organization?
                                        Product                  2. Who owns that
                                    Differentiation                 business vision?

         Operational                     Customer                3. How would a focus on
         Competence                     Responsive                  MDM enable the
                                                                    business vision?
                                                                 4. Who will provide
         Operational                   Customer                     executive-level
         Excellence                    Intimacy                     sponsorship?
       "Best Total Cost"          "Best Total Solution"
From "The Discipline of Market Leaders" by Treacy and Wiersema


The vision is the "what" and the "why."
      The strategy is the "how."
MDM Needs to Be Seen as Part of
Enterprise Information Management (EIM)

                             Vision

                           Strategy

                            Metrics
                 Information Governance
                   Organization & Roles
                   Information Life Cycle
                  Enabling Infrastructure
                Master   Analytic   Other   Social
      Content    Data     Data      Data    Data     …?

                         Master Data Management
What Will Shape Your MDM Strategy?

                        Industry

                      Data Domain
  Vectors of
    MDM                Use Case
  Complexity
                      Organization

                  Implementation Styles
MDM Maturity Model: Helps You Determine
Your Current and "To Be" States

 Increasing
 Maturity of
    MDM                                                                        Optimizing

                                                               Managed          MDM is the
                                                                                 way we do
                                                                               things around
                                                Defined          A unifying
                           Developing                              vision
                                                                                   here.
                            No vision.         OK, let's do emerges (with
               Initial      Firefighting is                                     Managing
                                              something (at      high-level
 Non-                        the answer.                                       master data
                                              the silo level). sponsorship).   as an asset.
existent    No vision,
           but, yes, we       Isolated,       Silo-oriented    Enterprise-
Problem?    do have a        bottom-up                                         Continuing to
                                               solutions.      wide MDM
  What      problem.         initiatives.                                       learn and
                                                                program.
problem?                                                                         improve.
   0              1               2                 3               4               5
                            Level of MDM Maturity
                Note: MDM must be deep, as well as broad, to be mature.
What Is the "Current State" of Your MDM
Maturity? What Is the "To Be" State?
                  Level 1          Level 2               Level 3               Level 4             Level 5
                   Initial        Developing             Defined              Managed             Optimizing
Vision               None           Bottom-up           Top down, but      Unifying vision for   Key enabler of
                                  initiatives only     limited in vision    cross-enterprise       business
                                                                                 MDM               success
Strategy             None         Reactive focus       Proactive focus      Consistent and           Ongoing
                                  on firefighting       on individual         integrated         investment and
                                    initiatives           domains              approach            improvement
Metrics          No metrics          Starting to      Successful use of    Using metrics to         Basis of
                 scheme for         develop DQ         metrics at the      measure success        management
                 master data          metrics           domain level        cross-domain         and investment
Governance        No one has      IT-led; lacking       Domain-level       Cross-enterprise      Well-established
                 responsibility      business           governance           multidomain         cross-enterprise
                                   involvement                               governance            governance
Organization       No data        Developing the      Potentially strong    Centralization or    Well-established
                   stewards       culture of data     team, but limited    federation of data    cross-enterprise
                                   stewardship            in scope          steward groups         stewardship
Processes       Silo based —      Starting to think   Focus on data life     Best practice         Continue to
                applications or   in terms of the      cycle at domain      shared across        optimize the life
                  functions        data life cycle           level          the enterprise            cycle

Technology      Few or no data     Data quality         MDM solution       Multidomain, but       Integrated and
                 quality tools     tools, but no      covering only one    not integrated or     consistent set of
                                  MDM solutions            domain             consistent            capabilities


               Most Organizations Today
Creating the MDM Business Case: The Basis
  of Achieving Buy-In and Creating the Metrics
                                                                  Questions to Answer:
           Use Business Process Metrics
           to "Connect to the Business"                           1. Do you have the
                                                                     business on board?
                                                                     Does it see value in
                                                                     the MDM program?
           Shareholders                    Bottom-Line
                           Financial         Results              2. How will MDM improve
                            Metrics                                  business processes and
                                                                     decision making?
                                              Feedback
       Executives         Performance        on Strategy
                            Metrics                               3. What business metrics
                                                                     are you linking the MDM
    Process          Business Process            Efficiency and      program to?
    Owners                Metrics                Effectiveness

                                                     Accuracy,
                                                                  4. What is the current level
  Data               Master Data Quality                             of those metrics, and what
Stewards                                             Timeliness
                          Metrics                                    does success look like?
      Stakeholder            Level                Focus
Understanding the MDM Process Life Cycle
 Is Key to Governance and Organization


          Author          Store       Pub/Sync       Enrich       Consume Archive
   B2B
            Collaborate      Enrich      Enrich        Enrich       Enrich   Enrich


  Product
            Marketing     Procurement   Operations    Logistics      Sales    Service
Development
                        Sample Life Cycle for Product Master Data



Questions to Answer:
1. What processes will you need to ensure the creation, management, publishing
   and leveraging of high-quality master data across your organization?
2. What business processes will the master data life cycle processes support?
MDM Governance — Who Is Responsible,
Accountable, Consulted and Informed?
                      R&D                         CRM                                                  ERP and SCM                                                                Shared Services




                                                                                                                                       Order Fulfillment


                                                                                                                                                           Transportation
                                                                                                         Manufacturing
                                                  Contracting &




                                                                                                                         Warehousing
                                                                                         Procurement
               Management

               Product Life




                                                                                                                                                                                                Functions
                                                                                                                                                                                                Corporate
                              Marketing




                                                                  Customer

                                                                              Sourcing




                                                                                                                                                                            Finance
                                                                    Service
                                                        Pricing
                     Cycle




                                          Sales




                                                                                                                                                                                      HR
 Customer




                                                                                                                                                                                           IT
 Common
                                 I        R/A          I             C                                                                   C                      I            C             C
 View
 Finance
                                          C            I              I                                                                      I                              R/A            C
 View
 Sales View                    C          R/A          I              I                                                                      I                                I            C
 Fulfillment
                                          C            I             C                                                       I         R/A                      I                          C
 View

                      R = Responsible, A = Accountable, C = Consulted, I = Informed

Questions to Answer:
1. How will you create and maintain an MDM governance organization that
   includes executive sponsorship, policymaking, decision arbitration and
   daily operational administration?
2. How will the governance structure enforce its will?
MDM Organization: Organizational
Structures, Roles and Responsibilities
        Organizational Structures, Roles and                                                   Questions to Answer:
                  Responsibilities
                                                                                               1. Who creates and
                                                                                                  consumes master data?
              Executive-Level                                                                     What are their roles?
                 Sponsor

                Information
                                                                Business                       2. Do you have data
             Governance Board
                                                                               IT                 stewardship roles, and are
                                                                                                  they seen as a business
                          MDM Team
                   (Centralized or Distributed)
                                                                                                  responsibility?
  Data
      Data
Steward
    StewardData
        StewardData                                      MDM Infrastructure Team
                                                                                               3. What organizational
             Steward                                             (Virtual)
                                                                                                  structure do you need to
                                                                                                  manage master data?
                              Modeling/             App.              System        Security
                              Metadata            Dev./Integ.         Mgmt.         Privacy
                                                                                               4. How will you manage the
                         Info.
                       Architect
                                           Data
                                          Quality
                                                                Monitoring
                                                                Reporting                         change that comes with
                                                                                                  new ways of working?
MDM Infrastructure: What Technology
Infrastructure Do You Need?
          A Tightly Integrated Set of                      Questions to Answer:
           Functional Capabilities
                                                           1. What technology
                                                              infrastructure do you
                                                              need to achieve your
                                                              MDM goals?
                     Information                           2. How do you source this?
      Data             Quality
      Model                           Integration and         How does this fit into the
                                      Synchronization
                                                              organization's overall
                      MDM
                                                              enterprise information
                                                              architecture?
Technology
    and                                Business Services   3. What architectural and
Architecture                             and Workflow         implementation styles are
                                                              appropriate for MDM?

           Manageability    Performance,
           and Security      Scalability
                           and Availability
Gartner MDM Excellence Award
   Winner: Johnson & Johnson HCS
           More                        Better              Faster              Efficient
    Accurate                      Compliance           Adaptation to        Expected Fewer
    transaction                   with regulations     market and OpCo      Resources required
    processing:                   requiring controls   changing             to manage data and
      • Payments                  over data:           requirements:        fix errors:
      • Rebates                     • SOX               • New OpCos &        • Contracting
                                    • GxP Validated       Companies          • Finance
      • Disputes
                                                        • New Products       • Supply Chain
      • Rosters Mgmt.
                                  Customer              • New Customers      • IM
      • Customer
        Creation                  Service levels:       • New Contracts
    Reliable reports and            • Error             • New Systems       Fewer Write-Offs of
    performance metrics               Prevention                            unresolved disputes
    Preventive data                 • Perfect Orders   Identification and   and deductions
    management:                     • Timely           resolution of
      • Proactive                     Payments         potential problems
        Problem Solving             • End-to-End
      • Consistent                    Experience
        Sourcing

Source: Johnson & Johnson Health Care Systems                         OpCo = operating company
Recommendations
   Vision: Create an MDM vision that enables the business vision.
   Strategy: Define the scope, perform a maturity assessment and
     prioritize initiatives to create a road map.
   Metrics*: Create an MDM metrics hierarchy during the business
     case development process.
   Governance*: Create a business-led governance structure with
     agreed roles, responsibilities and decision rights.
   Organization: Appoint data stewards for master data, build a
     multidisciplinary team and address change management issues.
   Processes: Think in terms of the master data life cycle.
   Technology Infrastructure: Buy or build the necessary
     capabilities. Choose the right implementation styles.

* The most difficult
Related Gartner Research
 "The Seven Building Blocks of MDM: A Framework for
  Success"
  (G00168103)
 "Use the Gartner MDM Maturity Model to Create Your
  MDM Road Map"
  (G00169865)
 "Creating an MDM Vision, Strategy and Road Map"
  (G00165636)
 "Creating a Business Case for Master Data Management"
  (G00160270)
 "Governance of Master Data Starts With the Master Data
  Life Cycle"
  (G00160018)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.
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Seven building blocks for MDM

  • 1.
    Gartner Webinar Seven BuildingBlocks for a Successful MDM Plan Presenter: John Radcliffe, Research Vice President Upcoming Webinars: www.gartner.com/webinars Looking for On-Demand webinars? Check out our Replay Archives link on the left in www.gartner.com/webinars This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved. 0
  • 2.
    Welcome! Thank you forjoining us on today’s Gartner webinar. 10,800 60,000 Client Clients Enterprises 100,000 5,500 IT End-User Benchmarks Inquiries 70% of 2.7 Million Fortune 1000 IT End-User 80% of Searches Global 500 750 Analysts 55 Serving Clients Conferences in 85 Countries 10,000 4,000 Media CIOs Inquiries 1
  • 3.
    Seven Building Blocksfor a Successful MDM Plan John Radcliffe 6th April 2011 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2011 Gartner, Inc. and/or its affiliates. All rights reserved.
  • 4.
    Your MDM Program:Without a Good Plan, You Will Probably Fail. What Do You Need to Do? STOP Questions You Need to Answer STOP in the First 100 Days Is there a What does the Does the business Can you measure clear vision? journey look like? see the value? success? Has governance What are the roles and Is it really just a Do we really want to been addressed? responsibilities? technology project? create a new silo?
  • 5.
    Key Issues 1. Howwill organizations create an MDM vision and strategy that enables the business vision and strategy? 2. How will organizations address the governance, organizational and process challenges that are barriers to MDM success? 3. How will organizations create the technology infrastructure necessary for MDM success?
  • 6.
    The Seven BuildingBlocks of MDM: A Framework for Success Vision Strategy Metrics Information Governance Organization & Roles Information Life Cycle Enabling Infrastructure A Business-Driven, Holistic Approach to MDM
  • 7.
    Create an MDMVision That Enables Your Organization's Business Vision Value Discipline Framework Questions to Answer: "Best Product" 1. What is the business Product Leadership vision of the organization? Product 2. Who owns that Differentiation business vision? Operational Customer 3. How would a focus on Competence Responsive MDM enable the business vision? 4. Who will provide Operational Customer executive-level Excellence Intimacy sponsorship? "Best Total Cost" "Best Total Solution" From "The Discipline of Market Leaders" by Treacy and Wiersema The vision is the "what" and the "why." The strategy is the "how."
  • 8.
    MDM Needs toBe Seen as Part of Enterprise Information Management (EIM) Vision Strategy Metrics Information Governance Organization & Roles Information Life Cycle Enabling Infrastructure Master Analytic Other Social Content Data Data Data Data …? Master Data Management
  • 9.
    What Will ShapeYour MDM Strategy? Industry Data Domain Vectors of MDM Use Case Complexity Organization Implementation Styles
  • 10.
    MDM Maturity Model:Helps You Determine Your Current and "To Be" States Increasing Maturity of MDM Optimizing Managed MDM is the way we do things around Defined A unifying Developing vision here. No vision. OK, let's do emerges (with Initial Firefighting is Managing something (at high-level Non- the answer. master data the silo level). sponsorship). as an asset. existent No vision, but, yes, we Isolated, Silo-oriented Enterprise- Problem? do have a bottom-up Continuing to solutions. wide MDM What problem. initiatives. learn and program. problem? improve. 0 1 2 3 4 5 Level of MDM Maturity Note: MDM must be deep, as well as broad, to be mature.
  • 11.
    What Is the"Current State" of Your MDM Maturity? What Is the "To Be" State? Level 1 Level 2 Level 3 Level 4 Level 5 Initial Developing Defined Managed Optimizing Vision None Bottom-up Top down, but Unifying vision for Key enabler of initiatives only limited in vision cross-enterprise business MDM success Strategy None Reactive focus Proactive focus Consistent and Ongoing on firefighting on individual integrated investment and initiatives domains approach improvement Metrics No metrics Starting to Successful use of Using metrics to Basis of scheme for develop DQ metrics at the measure success management master data metrics domain level cross-domain and investment Governance No one has IT-led; lacking Domain-level Cross-enterprise Well-established responsibility business governance multidomain cross-enterprise involvement governance governance Organization No data Developing the Potentially strong Centralization or Well-established stewards culture of data team, but limited federation of data cross-enterprise stewardship in scope steward groups stewardship Processes Silo based — Starting to think Focus on data life Best practice Continue to applications or in terms of the cycle at domain shared across optimize the life functions data life cycle level the enterprise cycle Technology Few or no data Data quality MDM solution Multidomain, but Integrated and quality tools tools, but no covering only one not integrated or consistent set of MDM solutions domain consistent capabilities Most Organizations Today
  • 12.
    Creating the MDMBusiness Case: The Basis of Achieving Buy-In and Creating the Metrics Questions to Answer: Use Business Process Metrics to "Connect to the Business" 1. Do you have the business on board? Does it see value in the MDM program? Shareholders Bottom-Line Financial Results 2. How will MDM improve Metrics business processes and decision making? Feedback Executives Performance on Strategy Metrics 3. What business metrics are you linking the MDM Process Business Process Efficiency and program to? Owners Metrics Effectiveness Accuracy, 4. What is the current level Data Master Data Quality of those metrics, and what Stewards Timeliness Metrics does success look like? Stakeholder Level Focus
  • 13.
    Understanding the MDMProcess Life Cycle Is Key to Governance and Organization Author Store Pub/Sync Enrich Consume Archive B2B Collaborate Enrich Enrich Enrich Enrich Enrich Product Marketing Procurement Operations Logistics Sales Service Development Sample Life Cycle for Product Master Data Questions to Answer: 1. What processes will you need to ensure the creation, management, publishing and leveraging of high-quality master data across your organization? 2. What business processes will the master data life cycle processes support?
  • 14.
    MDM Governance —Who Is Responsible, Accountable, Consulted and Informed? R&D CRM ERP and SCM Shared Services Order Fulfillment Transportation Manufacturing Contracting & Warehousing Procurement Management Product Life Functions Corporate Marketing Customer Sourcing Finance Service Pricing Cycle Sales HR Customer IT Common I R/A I C C I C C View Finance C I I I R/A C View Sales View C R/A I I I I C Fulfillment C I C I R/A I C View R = Responsible, A = Accountable, C = Consulted, I = Informed Questions to Answer: 1. How will you create and maintain an MDM governance organization that includes executive sponsorship, policymaking, decision arbitration and daily operational administration? 2. How will the governance structure enforce its will?
  • 15.
    MDM Organization: Organizational Structures,Roles and Responsibilities Organizational Structures, Roles and Questions to Answer: Responsibilities 1. Who creates and consumes master data? Executive-Level What are their roles? Sponsor Information Business 2. Do you have data Governance Board IT stewardship roles, and are they seen as a business MDM Team (Centralized or Distributed) responsibility? Data Data Steward StewardData StewardData MDM Infrastructure Team 3. What organizational Steward (Virtual) structure do you need to manage master data? Modeling/ App. System Security Metadata Dev./Integ. Mgmt. Privacy 4. How will you manage the Info. Architect Data Quality Monitoring Reporting change that comes with new ways of working?
  • 16.
    MDM Infrastructure: WhatTechnology Infrastructure Do You Need? A Tightly Integrated Set of Questions to Answer: Functional Capabilities 1. What technology infrastructure do you need to achieve your MDM goals? Information 2. How do you source this? Data Quality Model Integration and How does this fit into the Synchronization organization's overall MDM enterprise information architecture? Technology and Business Services 3. What architectural and Architecture and Workflow implementation styles are appropriate for MDM? Manageability Performance, and Security Scalability and Availability
  • 17.
    Gartner MDM ExcellenceAward Winner: Johnson & Johnson HCS More Better Faster Efficient Accurate Compliance Adaptation to Expected Fewer transaction with regulations market and OpCo Resources required processing: requiring controls changing to manage data and • Payments over data: requirements: fix errors: • Rebates • SOX • New OpCos & • Contracting • GxP Validated Companies • Finance • Disputes • New Products • Supply Chain • Rosters Mgmt. Customer • New Customers • IM • Customer Creation Service levels: • New Contracts Reliable reports and • Error • New Systems Fewer Write-Offs of performance metrics Prevention unresolved disputes Preventive data • Perfect Orders Identification and and deductions management: • Timely resolution of • Proactive Payments potential problems Problem Solving • End-to-End • Consistent Experience Sourcing Source: Johnson & Johnson Health Care Systems OpCo = operating company
  • 18.
    Recommendations Vision: Create an MDM vision that enables the business vision.  Strategy: Define the scope, perform a maturity assessment and prioritize initiatives to create a road map.  Metrics*: Create an MDM metrics hierarchy during the business case development process.  Governance*: Create a business-led governance structure with agreed roles, responsibilities and decision rights.  Organization: Appoint data stewards for master data, build a multidisciplinary team and address change management issues.  Processes: Think in terms of the master data life cycle.  Technology Infrastructure: Buy or build the necessary capabilities. Choose the right implementation styles. * The most difficult
  • 19.
    Related Gartner Research "The Seven Building Blocks of MDM: A Framework for Success" (G00168103)  "Use the Gartner MDM Maturity Model to Create Your MDM Road Map" (G00169865)  "Creating an MDM Vision, Strategy and Road Map" (G00165636)  "Creating a Business Case for Master Data Management" (G00160270)  "Governance of Master Data Starts With the Master Data Life Cycle" (G00160018) For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.
  • 20.
    Gartner Events Experiencelive analyst expertise plus much more at a Gartner event. Events for Business Intelligence & Information Management Professionals Business Intelligence Summit May 2 – 4, Los Angeles, CA Master Data Management Summit May 4 – 6, Los Angeles, CA Business Intelligence & Information Management Summit July 20, Tokyo, Japan Visit gartner.com/us/events 19
  • 21.
    Gartner Symposium/ITxpo: Theworld's most important gathering of CIOs and senior IT executives • Hundreds of analyst-led sessions, workshops, how-to clinics and more • Role-based tracks designed to address your key priorities and challenges • Immediately actionable take-aways—a clear action plan for the next 3, 6 and 12 months • Mastermind Interview Keynotes with industry leaders • ITxpo show floor with hundreds of top solution providers and exciting startups August 22 – 24 Cape Town, South Africa November 7 – 10 Barcelona, Spain October 3 – 5 Tokyo, Japan November 14 – 17 Gold Coast, Australia October 16 – 20 Orlando, FL November 21 – 23 Mumbai, India October 25 – 27 Sao Paulo, Brazil Visit gartner.com/symposium 20
  • 22.
    Simple steps forincreasing the value of today’s webinar experience • Visit gartner.com/webinars • Today’s presentation will be available in 24 hours • See a Schedule of upcoming Gartner webinars (plus on-demand webinars) don’t forget to share these resources with your colleagues • Contact your Gartner account executive with any additional questions, comments or for a complimentary copy of today’s presentation
  • 23.
    Simple steps forincreasing the value of today’s webinar experience • Visit gartner.com/webinars • Today’s presentation will be available in 24 hours • See a Schedule of upcoming Gartner webinars (plus on-demand webinars) don’t forget to share these resources with your colleagues • Contact your Gartner account executive with any additional questions, comments or for a complimentary copy of today’s presentation