Informatica Inc. (INFA) Earnings Call Transcript & Summary

Welcome to the What's New Webinar for Master Data Management SaaS. My name is Alap Maithani. I'll be covering the latest enhancements released from May leading into July with an MDM SaaS. Before I begin the webinar, I'll present a quick disclaimer. The information being provided here is for informational purposes only. Statements made herein are based on information currently available, which is subject to change. Actual product services or functionality may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled Risk Factors. Now within this webinar, we've structured into 7 key areas. The first 6 would cover key enhancements with demos. The seventh will list all the enhancements released as part of releases from May into July. First one being automated creation of integration mappings. Second, ESG extension for Supplier 360, followed by workflow support for crosswalk mapping in Reference 360. Fourth, export error records. Fifth, improved hard delete capabilities. Sixth, private link for MDM services in AWS. And the last section covering all the other minor and miscellaneous enhancements. With that, let's go on to our first topic. Automated creation of integration mappings. What this feature covers is using the power of CLAIRE copilot. Within CDI and MDM, the process of creating mapping from sources to MDM business entity is automated. What it means is that you can take an MDM data model out of the box or any custom data model and trigger a process to automate the mapping process using CLAIRE capabilities. Once you've defined your source systems in MDM, you can go in the [ BI ] canvas tool, click on the auto mappings button as we will show in the demo. And clicking on it will take you in this process where source systems you are looking to map and whatever your target model it is, CLAIRE would automatically help you through that process, assisting you in the mapping. What this capability really does is it streamlines the mapping process by giving you a really good starting point, introduce ease in the whole mapping process and make it easier for you to build on the automated mapping provided by CLAIRE. Now auto mapping is only available through MDM. We are looking how we can make it part of CDI as well. But for now, within MDM, this is intended to help accelerate the data addition for any data source. Now the benefit here is we believe it would result in almost up to 70% of reduction of effort in creating mappings. With that, let's go in the demo. Let's start by finding the entity in which we need to load data. Once we arrive in the data modeling canvas of the respective entity for our demo purposes, we're using the organization entity, the current version of MDM after the data modeling process is done, one really has to go through a laborious manual process to create CDI mappings to load the data. One has to go in the application and do the necessary step to create this integration. First is the switching. Second, you have to go through the process of configuring your source definition and the target business entity. And third, you have to configure transformations manually coming to load data into MDM, such as filtering the data configuration expressions to hard [ code ] values, creating primary keys or using normalizers to pivot data. Given the list of these steps, the mapping process can be a very tedious multistep experience for our users. And this is something the auto mapping feature intends to improve following the July release. Let me walk you through what this looks like. Now a quick note, you will hear me refer to CLAIRE throughout the webinar. CLAIRE is Informatica's AI engine, and it uses unified metadata intelligence, to provide AI copilot capabilities that automate different data management tasks, driving efficiency and productivity. Now how CLAIRE is integrated in the auto mapping process is once a data modeling canvas is ready, you'd now see a new option for auto mapping up here. Clicking on this option directly takes the user from the data model to trigger an automated mapping process to map the source systems to the business entity they just arrived from. In this interface, we can now connect a source system to the entity that we just arrived from. I can click on add sources. And in this case, I want to onboard Salesforce information. I'd select that. Now when I click on it, the right-hand side shows me all the different objects available from the source. Now because I'm onboarding organization information, I understand that the information I'm trying to bring in is in the account object. So I would make that selection, and I'll click on add. Now what's happening in the background is CLAIRE is intelligently inspecting the source system metadata, understanding all the information that is necessary to map to target business entities and is proposing the automated mapping. What it's done is it's not only mapped the source to the target, but also introduced the transformations that it deemed necessary, like filtering, expressions and normalizers that will go over. Now what you're looking in the middle row is the proposed mapping that CLAIRE is recommending. What you can also see that there are some scores beside these mappings and the scores indicate how confident CLAIRE is in its recommendations. Now as I start scrolling down further, I can see the different attributes being mapped from source to our data model. And if I scroll all the way to the bottom, I can also see there are some fields being mapped that have lower scores. These indicate that maybe CLAIRE was not so confident within -- for these specific attributes. These can be edited later. Now if I ever wanted to drill into more details about which fields are mapped where, I can click on a specific dial, and it gives me the path. In this case, I'm comfortable with how CLAIRE has recommended the mapping, and I want to go ahead and generate the mapping. To do so, I'm going to click on create mapping button here, and it will automatically bring me into the cloud data integration, but I can see the mapping that has been generated. Now in this case, I can see that I am connected to my Salesforce object, and I can also see that it has gone through a process where a filter was automatically created with the condition to bring over only active records. Now if I go into expressions, I can also explore that I can start seeing those different hard-coded value expressions. For instance, telephone or fax are needed a hard-coded value that has been brought in and has also generated primary keys by concatenating some fields together. Now as we see in this flow, it is going to automatically start normalizing data as well, which will then be ultimately loaded to my target, the organization business entity. So to summarize, the user can now quickly autogenerate mapping triggered directly from the business data modeling canvas in Business 360, and this not only connects to the source system, but also creates a lot of the logic that is necessary to transform the data in an automated way. This, we expect to save up to 70% of the effort time it takes to be able to create mapping from source systems to the target BI. With that, we will proceed on to the next webinar topic. ESG extension for Supplier 360. Now before we go into details of this particular enhancement, let me provide a context of what ESG is. An ESG score is a way to assign a quantitative metric to the environmental, social and governance efforts undertaken by a specific organization. An organization score will include a variety of ESG metrics that span the environmental sustainability, human resource practices, business ethics, along with our external socials and overall corporate governance concerns related to an organization. Now why is ESG data important to master alongside your supplier entity? There are 3 main drivers of ESG tracking and reporting. Number one, to comply with regulations. There are several regulations that require organizations to report ESG information like CSRD, SFDR, EBA Pillar 3, and the number is growing. The second driver is to maintain and improve the company's perception as a responsible organization when it comes to their environmental, social and governance practices in the communities they operate in. And third, to attract ESG-driven investments. As per Bloomberg Media, global ESG investments are expected to surpass $50 trillion, an account of 1/3 of all global assets under management by 2025. Given its rising importance, more than 90% of S&P 500 companies now publish ESG reports in some form. Given its importance, Informatica has now introduced an ESG extension for Supplier 360 to support ESG data attributes from Dun & Bradstreet and Sustainalytics. These extensions will now help you with the following business drivers. First, supplier identification. You can identify suppliers with higher or lower ESG risks and supplier with the highest emission impacts. Second, supplier data collection. You can identify and prioritize supplier selections based on emission footprint of those specific suppliers. You'd also be able to collect primary data related to Scope 3 emission calculations for suppliers, which entail how our suppliers' emission footprint contributes towards your business. And third, supplier compliance and screening. Be able to screen suppliers based on their ESG data points and scores and select the ones that would contribute least towards your own allocated emission footprint from that supplier. Now the demo that we will proceed in would cover the following things. First, the supplier data model extension, which I will display in the business entity canvas with the ratings to show the 2 supported providers, Dun & Bradstreet and Sustainalytics. I will also give you an overview of the new entity emissions, which will maintain supplier emissions data for scope 3 reporting. The supplier entity and emission entity will be related by -- reported by relationship, alongside will showcase different UI page layout, validation rules and reports as part of this extension. With that, let's proceed into the demo. Now when you log into your Business 360 console, you'd be able to discover the supplier entity and an emission entity with this extension. The supplier entity you'd see now contains additional data fields to be able to track these ESG metrics from D&B and Sustainalytics. Additional data fields come with this extension are classified into these 3 field groups, one for Dun & Bradstreet and other were standard attributes from Sustainalytics. These attribute extensions are also have been baked into the UI page layouts that will go over in the demo subsequently. There's also another entity called emissions, which has the data attributes that would track emission-related information for specific suppliers and their allocation to your particular organization. UI page layouts and details for this specific entity will also be going over in this demo as well. Switching on to the business UI, let's look at how this information is consumed from the ESG context. Once the data is populated in the ESG attributes inside the data model, both for supplier and for the mission's entity, these records can be related to each other using a relationship called reported by. First, let's go over a supplier record, as it is today. You'll notice that there are additional field groups showing information that has been brought in from the enrichment sources which could be Dun & Bradstreet or Sustainalytics. You can also design your page layouts to show all the information ESG-related provided by Dun & Bradstreet. As I scroll through this information, different things like environmental reasons, social reasons, governance reasons explaining the different scores allocated by the provider can also be displayed in the UI. Similarly, for Sustainalytics, we're able to see information that is provided for a specific supplier, in this case is Gorman Manufacturing Company, and it can give you a breakdown of the different metrics coming from Sustainalytics for the supplier. Now this supplier record can be connected to different records in the emissions entity. So for instance, the material inputs of purchased goods is related to Gorman Manufacturing. And these are different ESG activity data related to this emissions at record, which is now related to the supplier we earlier viewed. Same goes for transportation. I'm able to see that the transportation emissions record is again related to Gorman Manufacturing, and this is a different activity data for that specific transports. And thirdly, waste outputs by supplier information for that is also provided as activity data, which is again related to Gorman Manufacturing. Now you can see that different information such as allocation in terms of how much of the Gorman Manufacturing's footprint ESG-wise or the emissions data is allocated to myself. In this case, it is 0.2. This information can be edited and updated and having these records related, let's now when you go in Gorman Manufacturing record, you're able to clearly see different emissions record connecting back to you that you can then use for your own scope 3 calculations. So in a nutshell using the supplier entity and the emissions entity, the 2 data points for emissions from different activities of the supplier and the supplier itself, the data from ESG score for D&B -- Dun & Bradstreet and Sustainalytics, these data points can be sourced from these suppliers and enriched within your master data record alongside your other information. That concludes the demo for this section. With that, we'll go on to the next topic. Workflow support for crosswalk mappings in Reference 360. This enhancements now brings in workflows when crosswalk mappings are being edited in the whole process where a user can click a lock button in crosswalk mapping to exclusively lock the crosswalk and bring it into a draft mode. This draft mode would allow the active users to manage the crosswalk mappings. Now any updates on crosswalk draft can be submitted for approval or bypass the workflow process and publish directly. Workflows can be configured for each crosswalk. Now the approver assigned can view the changes in the comparison view on opening the task and the crosswalk value mapping history before approving or rejecting the specific edit and update. With that, let's proceed into the demo. Once you log into Reference 360, let's proceed with finding the crosswalk that we wish to edit. For our demo purposes, we have a global regions crosswalk that maps different global regions to countries. Let's open this crosswalk. Now before we proceed into editing, you'll notice that a workflow tab is now available that allows you to add approval tasks if any edits are made to this specific crosswalk. I'm able to add an approval task, define where it is required or optional and be able to save it. We can also sign specific approvers, who would be able to approve the specific task. For demo purposes, we already have an approval task in place, which is for proving edits of crosswalks. Let's proceed with back to going in value mapping. Before we proceed with the edit, we would click on the lock item to lock the crosswalk editing to yourself. Now over here, as we can see that incorrect countries are mapped to these crosswalks. Costa Rica, Puerto Rico, Denmark, these are incorrect countries that are mapped on during [ creations ]. So let's proceed with deleting them first. So we delete the first mapping, we delete the second mapping, and we delete the mapping of Denmark and North America. Now I'd also like to add some mappings here. So let's proceed with adding these specific countries to these regions. Let's add Canada to North America and lets add France to EU. So what we've done is to remove incorrect mappings and added 3 mappings that we believe to be correct. Now at this stage, you can compare this draft status with the published version. The color coding allows you to quickly see the red ones are the mappings that were deleted. And the green ones are the ones that were added. You can also view the published version while you are editing it. Let's go back to our draft version. And at this stage, we would proceed to submit. Now given the workflow was configured for this crosswalk, you've noticed that a send for approval dialogue box has opened up. We can hereby denote the priority of this approval, low, medium, high and critical. Say, for example purposes, we select high. Due date, say, it's due 28. And the comment we can add, for the approver to view, 'please approve.' While you're submitting this task, you can also notice the comparative view of the versions below to see what changes you're submitting to the approver. At this stage, you'd click submit. Now once the workflow is submitted for the edit with this specific crosswalk, you'll notice that a lock icon has now come on this crosswalk that prevents any further editing. You'll also notice that the edit options to be able to edit this crosswalk are no longer available. You as the user who started the workflow can cancel the approval request, which will revert back this crosswalk to original status. Now let's go in the approver view, going for workflow inbox, refresh, we're now able to see that task come in our inbox. The task gives us appropriate details that are needed for the approver to approve this crosswalk, a competitive view, the individual who submitted this change, and the data was created, modified and it's due on. For demo purposes, I would approve this request. Once this workflow is completed, if I were to go back to the original user and reopen our crosswalk, you'll notice that the changes have now been approved and persisted. You'll also notice that the edit icons to lock, delete and so on and so forth have also been made available. Now to see these changes that were made, you can go in the history tab and in the value mapping history, the list of such changes are tracked in a tabular format. You're also able to see who has modified this specific code list and who it was approved by the change when a workflow was involved. Workflows can be made optional. You are not required to have workflows necessarily on every crosswalk edit. Now the entire process of editing mappings will also apply if you were to import a mapping via CSV. This concludes the demo for workflow support for crosswalk mappings in Reference 360. With that, we'll proceed on to the next demo. Exporting at error records. We're now giving the users the ability to export records by error validation status. What this would allow the users to do is, in their egress process, they would be able to filter out records specifically based on whether they're valid, which means they don't have any DQ rule violations, such as error, info or warning or whether they have a validation flag tag to them due to not qualifying a data quality rule for that particular record. Additional error related metadata fields will be provided with records, with validation errors, and the subsequent demo will go over those. With that, let's proceed into the demo. When you arrive in your Business 360 console, do start an egress job. Let's say, we call it error egress job, click okay. When you arrive on this page, select MDM egress. Now upon selection, you'll notice that there are new options available to you in terms of validated status being a filter. By default, all the records could be exported, which means records that are valid, i.e., that qualify all the data quality rules in place or records with validation errors, that means that one or more attributes inside that record is not qualifying the data quality rules set in place. All is the default option. However, if you were to select valid or validation errors as the option, only that specific subset of records will be exported in this egress. Now note that when you select all, you can always filter these records using the flags that I'll show you in subsequent demo. Now let me go in data integration and show you what those attribute fields look like? When you're home and you go in the relevant mapping task, you go and field mapping, you will now start observing that for every entity and for individual records, attributes in that entity. There are additional raise provided. So for instance, for the personal entity, we can see we have parent ID, error column, error severity, rule name and error message. I'll be showing you these attributes in an export file shortly. The same attributes are now also provided for every single field group. So for example, if I were to select phone as a field group, I can see the phone has the same attributes as an error array. Same thing for event address and social handle. These attributes are provided as part of the egress. Now let us look at some of the files. We've already run a job and we have files to see what that egress looks like. Now if we were to export a file [ of root ] with errors, with exporting records with validation errors, these are the columns that would be provided to you in the egress. Parent ID, the error column, also the attributes on which the error is, error severity, which is error, info and warning. These are defined when you're creating your data quality rule in MDM. The data quality rule name and the error message as defined by the customer. This export shows you all the error records, the specific error messages that has attached to those and the severity of those errors for those specific attributes, giving you a view of the records that need to be fixed either in Business UI or from source systems for these data quality validations to be valid. Now if you were to export the entire entity, you would just be able to export a file, like root, and in this case, for specific records, you'd be able to get a new flag that we are providing called validation status that would suggest if that specific record has passed or failed the validation that are in place for the attributes utilized in that entity. This new flag would also allow you to filter records based on their validation status post egress. This concludes the demo for exporting error records. Let's proceed on to the next segment in this webinar. Improved hard delete capabilities, also known as purge data. Now you can purge the data of any business entity with an MDM SaaS. When you purge data, you will be permanently deleting data from the data store without deleting the data model and any underlying configuration details. Note that this capability only specifically deletes the data inside your [ org ] and not the configurations related to it. Now the 2 main pillars of these capabilities are, you will now be able to purge all the data in the dev, QA and production environments of your organization in a simple one-step process. You can choose to purge all business entity records, source records and relationships along with historical data through this process. If you want to purge the business entity records, relationship records and historical data for a specific business entity, you will be able to do them as well. Right now, the capability is limited to be able to purge up to 1 million master records for a specified business entity, which means that if you have an excess of 1 million records, you'll have to trigger the process a few times to be able to get to that point. Now guidelines for purging data is before purging data, make sure no users have logged in, make sure no jobs are running on that specific data, also ensure that all workflow tasks related to the data that you're about to purge are complete. Also ensure not to update the metadata of any business entity, while a purge job is running. And do not train any machine learning models on the data that is about to be purged. Now setting up the data purge is what we will go through in the demo. With that, let's proceed into it. Now to be able to purge data, you would need to log into Business 360 console. Once you log in, if you have the appropriate privileges of an admin under global settings, you will now see an option to be able to purge data. To start the purge setup, click on start, this will welcome you to this dialogue box, where you have to specify what exactly are you trying to purge. Now take note that you cannot recover the purged data. So this is an irreversible process. Once data is purged, it will be gone. There's 3 menu options provided to you in this menu. First is purge all. This would delete all the data and the historical data from business entity records and data from source systems and relationships. The second is to purge the history of all records. This one would specifically delete all the historical data from business entity records, hierarchies and relationships. Third one becomes a little more specific. It allows you to delete the business entity record, relationship records and historical data that belong to the specific business entity that you would specify in this dialogue box. For demo purposes, let's select the third option. And we'd go ahead and select a business entity among the list of entities we have. So let's say we select household, click select. Once the entity is selected, click next. Now that we've selected the entity, as you can see, if we go into the business UI and we utilize search to search for household entity, we do see records inside the household entity as of now, prior to the purge. To proceed with the data purge, ensure the following guidelines are heard. No users have logged onto the business applications, ensure that no jobs are running. Make sure all workflow tasks related to the record you are about to purge are complete. Don't update the metadata of any business entity, while the purge job is running and don't train any machine learning models on this specific data. These are good guidelines to follow before triggering a purge. To proceed with the purge, the process specifically asks you for your organization ID. This is to ensure that the data being deleted is in the correct [ org ] and security check to ensure that the correct org is being implied the purge process. To get a org ID, we can go in business UI, [ org config ] UI, copy that, come back in the process, paste the org ID. At this point, you'll see the purge option activated for you. Clicking on purge would then trigger a new job, that starts the purging of data in that specific entity. Now if you go in my jobs, you can see that a specific data per job is running, which is actively purging the data of that entity we have selected. Once the job is complete, it would look something like this. It will give you the start time, end time and the duration it took to purge that records. Post purging of record, the entities reindex for searching, and if you would go in your business UI, you would find no records in there. That in a nutshell covers the purging of data for specific business entity in MDM. With that, we will go on to the next topic. Private link for MDM services in AWS. Now this enhancements allows customers to utilize private links in AWS. So for context, most customers today, when they go through Informatica's cloud services, they utilize public Internet. However, we do have customers with use cases who would not want this data over public Internet. So if customers have an AWS account as well, they are now able to create a private link right from their server forms directly into Informatica cloud. What this would do is, it will ensure that all the data is going through private connection directly to Informatica. The two key benefits of this are customers can securely access IDMC in AWS over private network connections reducing their to cybersecurity threats, and it also enables organizations to connect to AWS services without using public IPs, the internet or traversing the public network. Now this does not impact things like APIs and other things like customers can be in a public environment and be able to connect to our services. But if they're going there through a VPC, then they can have a direct connection to our MDM services in [ IICS ]. Now quick notes that right now in the current release phase, private link at platform level is supported only in North America, and there is a 3- to 4-week configuration time to enable it on Informatica front. Note that an additional Informatica SKU will be needed for this capability to be enabled for specific customers, who have a need for it. So in a nutshell, our private link in AWS, it'll enable customers, establish a private connection between their VPCs and MDM SaaS services. With that, we'll go on to the next topic. We now arrived in the last segment of this webinar miscellaneous enhancements. There's a whole host of capabilities that were delivered from May leading into July, both on the configuration side of MDM and on the business UI. I won't necessarily go over each of them in detail, but I'll show you how you can find yourself the entire list of new capabilities that are delivered in MDM within the product itself. When you navigate into a Business 360 console or any of these solutions, such as Customer 360, Product 360 that you have access to, click on online help. When arriving in the help section, on the top left, you'd notice the what's new section that gives you a release by release breakdown of our monthly features and enhancements. So for example, for July, I can quickly see important notices for new capabilities for which preview has been initiated and for ones that preview has been lifted. The new features and enhancements can be found under this tab, and any changes in behavior can be explored here as well. This segment can give you the most up-to-date information of all the new enhancements and changes brought about in MDM SaaS products. With that, I would like to thank you for your time for the webinar today.

Thank you for doing such a great job today, Alap, with the highlights of what's been introduced since May. I'm Monica Mullen, responsible for Product Marketing for MDM and Informatica. And while I have you here, and before I let you go, I'd like to call attention to a few other items that you might be interested in. First, starting this year, each quarter will walk you through the latest capabilities that have been introduced in our cloud-native solutions for intelligent MDM and 360 applications. If you missed the one in May, Alap reviewed the highlights much like he did today of what had been introduced since December of 2022. I encourage you to join it by scanning the QR code on this slide. In August, our global customer services team, or GCS, will run 2 in-depth Tech Tuesday webinars in the best practices captured for tough cloud-native Informatica MDM implementations and matching and merging with Informatica intelligent MDM. Again, the QR codes there will take you to those registration pages. And if you're looking to learn from others, here are 3 webinars featuring the experiences of our customers and how they are gaining value from their data. The QR code here on this slide will take you to our landing page for all of our webinars and you can find these webinars there. Coming up at the end of August, Boehringer Ingelheim, a global pharmaceutical company, will discuss how they're managing the deluge of data at a worldwide level. If you're struggling to get business buy-in, I highly encourage you to listen to the EDC Webinar here in the center of the slide. it's just 32 minutes, and I learn something every time I hear them speak. They are on the fast track with MDM because their business supports what they are doing, and they're getting measurable value from it. Listen to hear how. And lastly, a few months ago, Informatica MDM partner, [ Blumetra ] Informatica and Kwik Trip talked their MDM SaaS and Customer 360 implementation at Kwik Trip from both a business and technical perspective. They share the implementation best practices that are supporting the convenience stores digital transformation. Now if you're aching for an in-person event and want to join us, we're taking Informatica World on the road once again this year. And this year, we'll be in 6 cities worldwide, including Tokyo, London, Chicago, Melbourne, Toronto and Singapore. And you guessed it, the QR code here will take you to the registration page where you can learn more about the agenda, the locations and the speakers. And if you can't make it to one of these 6 cities, we'll also have a virtual event on November 9 in North America and Europe and November 22 in Asia Pacific. Now if you haven't joined the 9,000 other Informatica MDM enthusiasts in our LinkedIn group yet, I invite you to scan the QR code here and join us. It's where you'll be able to find the latest on Informatica in general. You'll be able to connect with peers. And yes, perhaps you can even share your own MDM stories or ask a question or 2 of the group. And lastly, tell us what you thought about this webinar today. Do you like the format in the demos? How can we do better? What is it that interests to you? Take a moment to complete the survey that will pop up and let us know. Until next time, I hope to see you again soon. This concludes our webinar for today. Thank you once again for joining us. I hope you got some value out of it, and we'll join us next quarter. Thanks again.