Management-Forum Strategic MDM

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1 Management-Forum Strategic MDM Frankfurt / Hilton Frankfurt Airport Value Chain Excellence. Strategy to Results.

2 Master Data Management Strategy Agenda 1 Survey MDM: Strategic Master Data Management (Extract) 2 Master Data Management Strategy (Extract) 3 Camelot Management Consultants & MDM Slide 2

3 Methodology of the survey The survey examines the development status of master data management, its specification and its benefits Data Industries 14 Automotive Chemical industry Pharma/Life Science Survey of 53 companies in Switzerland and Germany 20 personal interviews and 33 via online questionnaire Participants: decision maker from IT, MDM, Procurement, SCM and Marketing 5 21% 14 Revenue of participants 4% 8% 9% Fast Moving Consumer Goods Engineering Miscelleaneous < 100 Mio. Euro Mio. Euro 8% Mio. Euro Mio. Euro Mio. Euro 50% > Mio. Euro The survey offers a cross section of company from different industries and different sizes. Slide 3

4 Survey results Companies maturity level in MDM varies significantly Strategy 100% Operations & Support 75% 50% Processes 25% 0% Beginner (n=9) Advanced (n=30) Professionals (n=14) Average (n=53) IT-Systems Organization Master data The optimization of master data management focused on IT (MDM applications and data model). In the other areas there is a need for improvement. Slide 4

5 Survey results Master data management strategy as base for further development of master data management Strategy Processes Organization Master data IT systems Level of maturity 0% 25% 50% 75% 100% 33% 47% 40% 50% 63% 65% 63% 68% 63% 70% Why do companies need a master data management strategy? to determine a business process orientated vision to design the interaction of the design parameters to define a roadmap prioritizing the actions Operations & Support 29% 48% without MDM strategy (n=12) with MDM strategy (n=35) The strategy determines the objectives, guidelines and principles for design parameters of master data management and defines the actions for the implementation. Slide 5

6 Survey results Master data management leads to better process quality and more stable business processes Improved business process quality/stability Verbesserte Prozessqualität/-stabilität der Geschäftsprozesse 91% Faster business processes (Shorter lead times) Beschleunigung der Geschäftsprozesse (Verkürzung der Durchlaufzeiten) 60% Transparency on how master data influences business processes Transparenz über den Einfluss von Stammdaten auf Geschäftsprozesse Cost savings in master data maintenance (IT-systems) Kosteneinsparung im Bereich Stammdatenpfelege (IT-Systeme) 40% 40% Lower business risk through compliance with legal provision Verringerung von Geschäftsrisiko durch Einhaltung gesetzlicher Bestimmungen More flexible reactions to change (M&A, business process changes) Flexibilität auf Veränderungen zu reagieren (M&A, Geschäftsprozessänderung) 32% 32% * Multiple responses were possible The processes supplier evaluation, selection and qualifying in procurement, order processing in SCM, sales activities in sales benefit the most from high master data quality. Slide 6

7 Survey results The individual vision of master data management depends on the maturity level of the company Beginner Advanced Professional Unambiguous & unique maintenance processes on local and global level (e.g. common change process) Development of corporate data governance Harmonization and cleansing of master data on global level Integration of end-to-end workflows into business process Enhancement of data attributes & implementation of non-sap attributes (eclass / DUNS etc.) Optimization the existing MDM system for optimum deliveries to all SAP and non-sap systems Installation of cross-company master data maintenance Meta data management Data quality management (Measurement, reporting & sustainable improvement) * Selection of comments from participants The primary objective of a company is to ensure a high data quality throughout the complete lifecylce of the master data. Slide 7

8 Actions Areas Step-by-step approach to realize holistic master data management maturity level G Realization of innovative master data topics F Introduction of continuous data quality measurement & improvement E Harmonization & Standardization of master data processes- and attributes D Realization of business process requirements in data model & MD maintenance processes C Technical implementation and support B Implementation of organization & governance A MDM vision, strategy und roadmap Beginner Advanced Professional time Slide 8

9 Model approach Approach to optimize your master data management Strategy assessment & definition MDM concept & business blueprint Organizational & technical implementation Operation & continuous improvement Definition of MDM strategy based on a clear vision and derived from business requirements Develop concepts and detailed blueprints for data models, processes, governance and the IT architecture Implement the defined concepts within the organizations using appropriate MDM technologies Run day-to-day operations with continuous feedback from the organization regarding optimization potentials for introducing improvements Master data model & attributes Master data maintenance processes Organization & governance Information technology Slide 9

10 Master Data Management Strategy Agenda 1 Survey MDM: Strategic Master Data Management (Extract) 2 Master Data Management Strategy (Extract) 3 Camelot Management Consultants & MDM Slide 10

11 Why do companies need a clearly defined MDM strategy? Why does your company need an aligned & sustainable MDM strategy? Grown processes, multiple IT systems and unclear responsibilities require a restructuring of MDM based on a clear MDM vision Changing environment with high complexity and increased regulations confirm the need for a flexible, effective and holistic MDM solution Concurrently reduce costs without disregard to meet quality targets to gain or protect important competitive advantages To meet the MDM challenges is necessary but to continuously improve business processes is the most important objective of MDM! Slide 11

12 Why do companies need a clearly defined MDM strategy? Grown processes, multiple IT systems and unclear responsibilities require a restructuring of MDM based on a clear MDM vision From now MDM Strategy Definition to MDM Vision! Organization Processes Technology System & Integration & Access Data WF & UI xx Business User Local Content Res. Business User Local Content Res. BW ERP BW ERP 1 WFM Portal GUI Global Local ERP 2 GUI Lack of data quality Missing timely availability of information High data maintenance and consolidation effort Increase availability of data Improve quality of data Enhance process efficiency Global MD organization Synchronized processes over global and local MDM activities Sustainable technology The vision for MDM sketches the prospective MDM objectives and outlines how to handle master data - organizational as well as technical Slide 12

13 How to develop a MDM strategy? A MDM strategy has to consider all aspects that are required for holistic & sustainable MDM Strategy: Alignment of the MDM strategy with the companies business and IT strategy Processes: Interdependencies between business processes and master data management processes Organization: Organizational alternatives for the implementation of a best practice governance concept Master data: Master data model definition with global/local characteristics IT-systems: Alternative system environment to support holistic MDM Operation & support: Actions and tasks to assure a sustainable long term MDM solution and high master data quality Successful master data management requires the consideration of all aspects and the affected stakeholders regarding corresponding areas Slide 13

14 How to develop a MDM strategy? The MDM Vision is starting point of defining a strategy for each area of MDM Data MDM Vision MDM will enable effective, flexible and high-performing business processes (e.g. global planning) Consistent & complete view of inventory Confidence in quality of our planning make exactly the right amount Timely accurate access to information supported by trustful MD to steer the business processes efficiently to enable E- to-e inventory opportunity harmonisation of the global Supply Chain Transparency of Supply Chain (in stock) all the way to the customer Flexibility of internal & out-of-house Supply Chain Deliver savings from suppliers performance improvements & cost savings (e.g. reporting) Harmonised operations process underpinned by standardised data MDM ensures key operational performance metrics are measured and delivered Reduce overall costs for operations master data management (lowest possible cost of data) Clearly defined Set of global data Objects Conceptual Data Model considering global and local Attributes per object in Place Global Master Data Standards in place Processes Common Process for maintaining Master Data delivered through a central capability Local Maintenance processes follow common rules and global standardisation Master Data Quality management processes in place Governance & Organization Clear Governance structure considering local, regional and global requirements Ownership of Master Data are clearly defined throughout the whole organization All roles across Organisation take pride in data management & their role in it Technology One Central System as Single Point of Truth High degree of automation in harmonizing & cleansing master data Automatic distribution of MD from central system to local ERPs Slide 14

15 How to develop a MDM strategy? The MDM strategy should consider the organizational set-up of future MDM MDM board Representatives of head of the department Alignment of master data across functions (sales, operations, IT, ) Definition and coordination of corporate MDM strategy and processes MDM organization Full-time master data manager Central governance for master data management Realize MDM strategy & processes MD community Business and technical (IT) representatives Defines data quality targets Determines master data model adaption to changed business process requirements Position the MDM organization and MDM board as high as possible to assure awareness and reinforce the importance of MDM within the organization Slide 15

16 How to develop a MDM strategy? The strategic concept for data maintenance has to follow the business process requirements 1 global regional / local 2 global local Create Create / Enrich Enrich Consolidate The two main options for the master data maintenance: 1. Global creation / update and local enrichment Creation and update of master data is done on a global level (e.g. central instance) for global objects. Master data is enriched by local objects filled on local level. 2. Local creation / update global consolidation Master data is created and updated on local level and consolidated on global level (by an central level). Master data management processes are a balancing component between organization, business requirements, IT systems and services Slide 16

17 How to develop a MDM strategy? The MDM IT strategy has to be aligned with the overall IT strategy Workflow management Interaction between user and business processes Integrated workflows supporting the complete MDM process across multiple systems MDM system Central MDM system as single point of truth with a push-method for master data distribution to the target systems Leading MDM with push or pull-method as distribution and mapping to target systems User interface Interface for users and systems to access master data: Graphical user interface: web GUI, SAP GUI, portal Single point of access: portal based approach IT landscape aligned to business needs of data management enables and accelerates the effective business processes in the organizational functions Slide 17

18 How to develop a MDM strategy? The definition of the best fit MDM solution can be also part of the MDM Strategy Preparation Proof-oftechnology MDM Vendor Evaluation Camelot has conducted evaluations for all major MDM supplier assessing more than 500 functional requirement criteria Proof-of-technology analysis Pre-selection of 2-3 MDM vendors based on Camelot s vendor database and project experiences Evaluation of the vendors by Defining of proof-oftechnology scenarios Simulating defined processes in the vendors prototype Evaluating the vendors prototype (system) on basis of a criteria catalog Decision for system/ supplier A proof-of-technology analysis is the right approach to check the technology of the future MDM solution which best fits to the Business needs and the IT strategy Slide 18

19 How to develop a MDM strategy? Camelot has developed a project approach for defining the MDM strategy which is proven in many successful MDM projects Set-up Current State Analysis MDM Envisioning & Strategy Definition MDM Roadmap Definition Process Organization & Governance Master Data IT-Systems & Technology Analysis of the current MDM environment and gathering of specific process and data related MDM requirements considering preconditions like the IT strategy Definition of an individual MDM vision taking best practices for data objects & models, processes and governance into account Set-up of the MDM strategy roadmap based on actions for the master data objects in scope, processes and governance prioritized regarding concrete benefits of MDM Stakeholder Management Slide 19

20 Business value & critical success factors Business Value Gain efficiency in your business processes Meet customer expectation Improve deliverer accuracy and achievement of SLA s Less correction of wrong data during daily operation and more focus on core process activities Gain Process Efficiency Benefits Be compliant Better achieve compliance with legal requirements and internal guidelines Optimized your stock level and reduce safety stocks Improved stock levels Better Decision making Efficiency and accuracy in decision making process based on trustful information Slide 20

21 Business value & critical success factors Critical Success Factors for the MDM strategy as basis for a successful realization Take realistic steps Consider what your organization is capable to successfully deliver! Stay focused on the MDM Vision You can do a lot but not everything leads you to the target! Regularly review / readjust your MDM strategy What fits today may not fit tomorrow! Keep in mind the business value Providing business value is the core to get broad the commitment! Involve the right people Take advantage of peoples knowledge. Internal as well as external! Slide 21

22 Master Data Management Strategy Agenda 1 Survey MDM: Strategic Master Data Management (Extract) 2 Master Data Management Strategy (Extract) 3 Camelot Management Consultants & MDM Slide 22

23 Master data management Camelot has a holistic view on master data management to ensure a value adding realization within your company Master data management: Strategy Master data management vision Master data management roadmap Communication & change plan Processes Organization Master data IT-systems Master data creation & maintenance processes Standards (global vs. local) Process performance measurement Corporate governance concept Roles & responsibilities Standards & guidelines Master data model Nomenclature & semantics Integration external services Master data applications User interfaces Interfaces & integration Operation & support Professional & technical support Master data quality monitoring Training & knowledge management Slide 23

24 Camelot Company Overview & MDM References Why to choose Camelot as a partner for success in master data management? OUR CUSTOMIZED APPROACH OUR METHODS & TOOLS is adaptable to your business requirements A deep industry, application and MDM process know-how characterizes our... are well-proven and will accelerate your project success In multiple MDM projects we collected a... MDM Pharma Automotive SCM Discrete Chemical TEAM EXPERTS STRONG EXPERIENCE Slide 24

25 Management-Forum Strategic MDM In case of any questions please don t hesitate to contact us! Camelot Management Consultants AG Theodor-Heuss-Anlage 12 Mannheim, Germany Tel: Fax: Slide 25

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