The Quest for Customer Data Integration
Smart CIOs are experimenting with new Web-based technologies to integrate their customer data applications without having to rip out their legacy systems. But before they plunge into the implementation, they need to craft a data management strategy.
For the first couple of years after the mergers, UnumProvident used a homegrown data-store solution as a Band-Aid. But by 2004 the $10 billion disability insurer felt compelled to embark on a new master data management strategy aimed at uniting the company’s disparate pockets of customer data, including account activity, premiums and payments. Core to UnumProvident’s strategy would be a customer data integration (CDI) hub, built on service-oriented architecture (SOA), using a standard set of protocols for connecting applications via the Web (in effect, Web services). The project, begun in early 2005, has already improved data quality, soothed the multiple customer records headaches and created the possibility for a companywide, in-depth customer analysis. But as Dolmovich acknowledges, there’s still a long way to go. Of those original 34 systems, he has been able to get rid of only four to date. But he’s still optimistic.
"The desired end state is a CDI hub that has information about all customers across all products," he says.
The Quest for the CRM Holy Grail
Despite the long, slow slog, Dolmovich is hoping that the new CDI approach will ultimately give his company the 360-degree view of the customer that has been promised by vendors since the dawn of CRM. In the late ’90s, enterprise software vendors like Oracle, PeopleSoft and Siebel sold the single-customer view as CRM’s holy grail. But implementation flameouts and legacy integration nightmares soured many CIOs on these expensive enterprisewide rollouts. More recently, on-demand CRM has generated a lot of buzz, but it too has run into scaling and integration problems, particularly at large companies. (See The Truth About On-Demand CRM.)
A CDI hub differs from a traditional CRM solution in that a CDI hub allows a company to automatically integrate all of its customer data into one database, while ensuring the quality and accuracy of the data before it is sent to the hub’s central store for safekeeping. A standalone CRM system can’t do that because it can’t be integrated with the billing, marketing, ERP and supply chain systems that house customer data, and it has no way to address inconsistent data across platforms.



