How Keurig Brewed a Better Path to Success. Mike Quinn & Eileen Hanafin: Keurig Will Crump: DATUM LLC SESSION CODE: CP1380
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1 How Keurig Brewed a Better Path to Success Mike Quinn & Eileen Hanafin: Keurig Will Crump: DATUM LLC SESSION CODE: CP1380
2 An innovative technology-driven values-based personal beverage-system company.
3 A unified direction PURPOSE: MISSION: VISION:
4 NORTH AMERICAN ROOTs 9 PRODUCTION FACILITIES 2 R&D FACILITIES 6,600 + EMPLOYEES 400 ENGINEERS & SCIENTISTS PATENTS ISSUED GLOBALLY PATENT APPLICATIONS PENDING GLOBALLY 2 1 end of year fiscal year as of September 2014
5 Our latest innovations Keurig 2.0 Keurig KOLD 5
6 Transforming the way Keurig Green Mountain does business The Business Transformation Program will touch every aspect of our business and will change GMCR ways of working. Business transformation will streamline, standardize and optimize our processes, enhance operational efficiency, and restructure IT architectures and IT strategies. CONFIDENTIAL: FOR INTERNAL USE ONLY 6
7 Foundation to Transformation This Program is Mission Critical Strategy the way we think & plan Competitive Position Operations Common processes Consistency Shared services Technology People the way we lead & motivate Transform the Business Processes the way we create value & manage Supportable Platform Standard Architecture Scalability to support growth Systems the way we interconnect & enable CONFIDENTIAL: FOR INTERNAL USE ONLY 7
8 Why Transformation? Catalyst for Change Explosive growth outpaced our investments in foundational business solution platforms and infrastructure. Current platform version is outside of maintenance support window. Currently operating on a 15 year old systems platform which is not scalable to support growth aligned with our strategic plan. Upgrade to existing solution is not cost effective as current install of PeopleSoft was heavily customized over the years. Oracle has changed their strategy and PeopleSoft platform is now targeted at Higher Ed and Healthcare Industry not CPG vertical. Investment is required now to build a strong foundation for future growth and enable the ability to introduce game changing innovations as part of the future solution roadmap.
9 GATEWAY TO GROWTH STRUCTURE EXECUTIVE LEADERSHIP PROGRAM PROGRAM MANAGEMENT MANAGEMENT OFFICE OFFICE INTEGRATION LEADERSHIP SELL TO ORDER DISTRIBUTION TO CASH FORECAST TO PLAN DESIGN TO PRODUCE PROCURE TO PAY RECORD TO REPORT MASTER DATA MANAGEMENT TRAINING ORGANIZATIONAL CHANGE MANAGEMENT BUSINESS INTELLIGENCE REPORTING APPLICATION DEVELOPMENT TECHNICAL SOLUTIONS AND ARCHITECTURE
10 Information Trustworthiness The Trusted Information ERP Lifecycle ERP Data Readiness VALUE CREATION Recognition of Lost ROI RISK REDUCTION Data Gov. Policy Organization Mobilization Point Mobilize Earlier! The Scramble How Could That Be? We Own It Let s Start with Data! Time
11 MASTER DATA BEST PRACTICES Mobilize your Organization 3 months before Go live Engage right business leaders at the right level at the right time Spend focused time with your data validation resources Know and target the critical business fields Document Key Decisions Document Standard Operating procedures Supplement staffing with experienced SAP operational resources to support the go live and hypercare They must understand e2e business impact
12 2013 Present Evolving our Data Validation Process Direct Data Dialogue New Product Introduction Information Validation Feedback Validate Data Providers Master Data Management Data Consumers USA EU People: Clear Ownership Defined Processes & Standards Tools: Automation Validate Manage Rules & Standards Governance Processes Scorecard Quality Build Organization Capability Educate Data Providers PRC? Consuming processes Improved Visibility Better decisions Improved results
13 Enabling Business Value & Insight Governance focus needs to be on the attributes and information that drive key insights Data Enables Timely & Accurate Decisions Delivering COMPETITIVE AGILITY Insight KPI s/ Measures (Analytics Digital, market expansion, etc.) (Reporting Sales, P&L, Volume, COPA, etc.) Information Data (Processes RTR, OTC, DTC, DTP, FTP, STO, etc.) (Transactions Customer pmts., GL, stock transfers, etc.) (Hierarchy Structures Customer, Sales, Materials, etc.) (Conditional Data Pricing, COGS, Source List, Contract Terms, etc.) (Reference Data Classification, UOMs, BOMs, country codes, etc.) (Data Records Customers, Suppliers, Finished Goods, Mfg Materials, etc.)
14 Business Critical Material Optimization 2015 Company Goals Material Master Data Deliverables Contribute to Company Goals Target Accelerate speed & quality of innovation in brewers, beverages & brands Deliver a breakthrough launch of Keurig Kold Migrate quality Master Data Create and implement a Data Governance model to support our Manufacturing processes for Kold. 100% data conversion 100% data validation Initial Governance model implemented Institute Change Control Board Build an efficient global product supply and IT infrastructure Deliver key capability growth projects COPA, MDG Develop material master strategy to support global expansion Migrate quality Master Data to support capability projects. Implement Data Stewardship of product hierarchy structures to support COPA Global Material Master Strategy aligned cross stream Financial reporting 100% adherence Generate productivity to reinvest in growth & capability Significantly improve the NPD execution process for faster and higher quality execution of innovation initiatives. Lead New Item set up process improvements in alignment with overall NPD and stage gate execution Rules Before tools Continue to improve and communicate standard core Operational rules for Material Master. Standardize data dictionaries cross domain Established New item Set up metrics Track success of timeliness of requests Metrics identify areas of improvement Ready to implement SAP MDG **End of performance period Goal rating: + = Exceeds; * = Fully Achieves; - = Partially Achieves/Significant Concern +End of performance period Leadership Dimensions and Values rating: + = Role Model; * = Effective; - = Developing
15 Keurig Organization Framework Executive Sponsors Provide strategic business direction and handles escalations Executive MDM Governance Council Establishes Business Process Strategy and Accountability Aligns Data Management and IT efforts in support of business needs, corporate strategies and initiatives Provides decision making and oversight for governing master data Provides direction and escalation support from the Master Data Governance Board Strategic MDM Governance responsibility to the existing IT, SC and FLT Global Master Data Organization Defines data and processes consistent with Council s strategy Develops, monitors and prioritizes master data standards, maintenance processes and quality metrics for measurement Provides direction for data standardization and reliability improvement efforts Operational MDM Governance team Master Data Support Tactical data management activities aligned with processes, standards, and business rules Govern master data within area of ownership Provide support for master data applications Tactical MDM team
16 Supporting the Path to Scale Capture of Business Inputs, Context and Value of Data for Governance and Trustworthiness OPTIMIZED Governance Maturity Level DEVELOPMENTAL Informal Data Standards Request ~0 Forms Standards Silo d ~110 Data Rules Applications (ZFERT) Transactional Data Design REACTIVE Data Standards Repository Governance Projects Rule Collection / Creation Data Policies / Procedures Integrated Standards and Change Management ~800 Standards Data Strategy Data Quality ~2000 Metrics Rules Managing Data Actively Timeline (Key Milestones) ESTABLISHED Data Mgmt Platform Data Process Optimization Collaboration Platform Business-Centric Metrics Ability to measure and link data metrics to Business Value Technology Execution Enablers Tactical Use of Analytics (Likely) Discovery and Tactical Reporting Targeted Tactical Use of DG Tools Predictive Governance Active Governance
17 Keurig Roadmap Expand EMDM Program Additional Program Engagement Establish enterprise data management competencies/skills Continued deploy of data program and applications globally 2015 & Beyond Master Data Track Operationalize Enterprise Data Governance Boards Enterprise Data Mgmt Application Architecture EMDM Organization (Global Components) Partner in large programs & initiatives Relational Data Track EMDM Organization (Glocal & Local Components) Metrics & Measures Strategy Capability Model (Policies, roles and executive alignment) Finalize Data Analysis Reporting Development Process Metrics & Measures Strategy Capability Model (Policies, roles and executive alignment) Define Global & Local Data Processes & Policies Define Global & Local Data Standards Q Q1 2015
18 LEARNING POINTS Integration Managers were key to solving cross stream conflicts Establish an End User Network engaged in testing and training Early identification of data standards, operating rules and owners Data Migration Manage scope and evaluate often Freeze Code changes by ITC3 UAT should mimic production cutover Ensure validation process meets SOX requirements Leverage migration tools for Hypercare and ongoing production support
19 DATA BEST PRACTICES Take good care of your people No data migration is successful if you burn out your resources along the way
20 A new keurig: a totally integrated business CONFIDENTIAL: FOR INTERNAL USE ONLY 20
21 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: #### For ongoing education on this area of focus, visit
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