why is master data management getting both business …bcoaug.oaug.org/downloads/kaygen - bcoaug -...

Why is Master Data Management getting both

Business and IT Attention in Today’s

Challenging Economic Environment?

How Can You Gear-up For Your MDM initiative?

Tamer Chavusholu,

Enterprise Solutions Practice

Kaygen

Agenda

• Introductions

• What is Master Data?

• Making a Business Case

• Managing your Master Data

• Oracle Solutions Portfolio

• Recommendations and Action Items

Background

� Founded in 2003

� Oracle System Integration Partner

� Specialized and recognized team of ERP, CRM and Master Data Management (MDM) solution experts, functional and technical analystsMaster Data Management (MDM) solution experts, functional and technical analysts

� Master Data domain expertise using Oracle technologies� Customer

� Product

� Supplier

� Location

� Financial Consolidation

� MDM and Oracle User Community participation

Agenda

• Introductions






What is Master Data?

Transaction Data[ record of an event ]

In essence, a date/time and a quantity

Definitions according to IDC Research

Reference DataReference Data[ Data to classify and reference events ]

Product Type / Account / Cost Center

Master Data[ Enterprise reference data ]

Agreed-to reference data that spans more

than one system or process

Master Data definition according to Gartner:

“A set of consistent and uniform attributes and identifiers that

defines the core entities of the enterprise”

What Makes Master Data Special?

Transaction

Data

Static – once recorded, transactions

themselves do not change

Reference

Data

Can change over time, redefining

how historical and/or future

transactions are classified

Master

Data

Can change over time, changes

must be coordinated across

multiple systems and processes, timing sensitive

Master Data Entities by DomainOperational Financial &

AnalyticalLocationProductCustomer

TypicalCustomer(business)

Customer(individual)

Product(Finished Good)

Component

Store

Restaurant

Bank Branch

Chart of Accounts- Account- Cost Center- Entity

Dimensions

Somewhat Common

Fringe

(individual)

Supplier

Vendor

Student

Employee

Citizen

Contractor

Resource

WardInmate

Terrorist

Instrument or

Investment

Bill of Materials

Service

Package

Promotion

Material

Trading Area

Distribution Center

Delivery Location

Postal AddressProduct Classifications

Sales Territories

Security Structures

Dimensions

Reporting Hierarchies

Mappings

Agenda

• Introductions






Ever proliferating islands of information

…in disparate applications covering multiple channels, divisions & functions

…duplicated, incomplete, inaccurate

Core Problem: Data Fragmentation

Web site

Call

CenterSFA Partner

� Key enterprise processes based on

unclean / incomplete dataMarketing, sales, service & customer retention

processes, regulatory compliance, new product

introduction,…

� Unclean data makes analytics invalid

� Error prone integration

� Slow enterprise agility and innovationLegacy

Call

SCMPLM LegacyERP 1

Source: Oracle 2008

Business Consequences of Data Fragmentation

Steve Smith$13,000,000

in assets

Steve & Julie Smith$8,382 Joint

Checking

Stephen Smith10 days late

$128 minimum pmt

Wealth Mgmt Retail Bank Credit Cards

CRM

EBS

Trade

SAP

Legacy

CRM

Custom

iFlex DW

PeopleSoft

Billing

Mktg

ERP

Main Frame

Source: Oracle 2008

Variations on the Business Case Theme

Agenda

• Introductions






What is MDM?

• An IT competency.

• Set of technology tools to manage master data records.master data records.

• An organizational program to deal with data that is shared across business processes and lines of business.

• Another buzzword.

What is MDM?

“MDM is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official, shared master data assets.”Gartner, 2008

Components of MDM Complexity

Industry / Vertical

MDM Use Case

Design, Operational, AnalyticalDesign, Operational, Analytical

Organization

Data Domain

Technology / Implementation Approach

Industry/Vertical Examples

• Financial Services– Focus on customer. Product and account to

follow.

– Better customer experience

– Improved cross-selling, up-selling

– Risk management– Risk management

– Reduced data consolidation costs

– Reduced marketing costs

• Government– Focus on citizen, person of interest, taxpayer,

etc.

– Improved citizen services

– Improved national and local security

– Better law enforcement

– Better tax collection

– Better benefits distribution

Seven Building Blocks of MDM

Source: Gartner 2008

MDM Vision and Strategy

• MDM Vision reflects organization’s business vision (“what” and “why”):– Leadership in a chosen market

– Product or service differentiation

• MDM Strategy is “how” the program will achieve the MDM Vision:– Enabling revenue growth and

profits

– Improving efficiencies and cost optimization

– Establishing compliance and risk management

– Providing IT agility and innovation

MDM Metrics

� Is there a data quality metrics scheme associated with master data?

� Can you show data quality improvements?improvements?

� Are you measuring MDM program success by its impact on business KPIs?

� Are MDM-related metrics monitored as part of standard business operations across your organization?

MDM Process Lifecycle – e.g. Customer Data Domain

Customer Data in Process Y

Customer Data in Process X

•Roles

•Relationships

•Additional Attributes

Business Process

Campaign to Quote

(Marketing and Sales)

Order to Cash

(Order Fulfillment

and AR)

Procure to Pay

(Procurement)

Issue to Resolution (Service)

MDM Process

Author, Store, Enrich, Publish/Synch, Consume, Archive

Attributes

Core Customer Data

•Name

•Taxpayer ID, DUNS#

•Address

•Phone/Email

Who owns your Customer Master Data?

• The Enterprise.

• Data Stewards care for the data– Content– Content– Quality– Integrity– Business Impact– IT Needs/Relationships

• Data Stewardship is a business function (best-practice)

MDM Governance

• Who is – responsible

– accountable– accountable

– consulted

– informed

• Develop a RACI decision rights framework to agree on and document the different roles and responsibilities

Data Steward: Key to Data Quality and Governance

Source: Gartner, 2008

MDM Organization

Source: Gartner, 2008

Agenda

• Introductions






MDM technology will need to address

• Data Modeling• Data Quality• Data Integration and Synchronization• Business services and workflow• Performance, scalability, manageability and security

Trusted

Master

Data

Trusted

Master

Data

SiebelSiebel

EBSEBS

SAPSAP

PLMPLM

CustomCustom

SiebelSiebel

EBSEBS

SAPSAP

PLMPLM

BIBI

Data Integration Approach

• Leverage existing ETL and/or SOA technologies to share information across systems and platforms

• Goal: synchronized data across all systems

� Point to point integration requires large number of

2 Systems = 1 Integration

4 Systems = 6 Integrations

6 Systems = 15 Integrations� Point to point integration requires large number of interfaces

� Differences in keys, fields and data require intelligent interfaces with hard-coded rules & behavior

� Interfaces tend to be brittle – easily broken by new releases & data changes

� Changes can originate anywhere, requiring complex rules for survivorship

� Consuming systems may lack ability to capture all relevant data from source systems – incomplete information



System Standardization Approach

• Rip and replace redundant front and back office systems with global single instance of ERP, CRM, Data Warehouse, BI, and Performance Management

• Goal: One system yields one source of truthGlobal EPM

� Massive standardization initiatives are expensive (seven figures and up) and long-running projects (2-5 years)

� Studies have shown that 50% of these projects run over schedule and over budget

� Mergers and acquisitions re-introduce non-standard systems

� Can stifle systems agility and innovation

� May be impossible due to legal constraints

Global CRM

Global ERP Global DW

Global BI

Information Standardization: MDM

ETL

Web

siteCall

CenterSFA Partner

Fusion

App

� Consolidate/Federate shared

information into one place

� Cleanse data centrally

� Share data as a single point of truth as

a service

ETL

Middleware

Application Integration ArchitectureBI/

DW

Center App

Fusion

App

Call

SCMPLM LegacyERP 1

MDM

a service

� Get better information from

existing IT assets & infrastructure

� Deliver consistent definitions

across the enterprise

� Lower data management costs

� Better reporting

� Enterprise foundation for agility

& innovation

Oracle Enterprise Master Data ManagementThe most complete MDM offering in the market

Data Governance Manager

Analytical MDM

Analytical MDM

Operational MDM AppsOperational MDM Apps

OperationalSystems

SiebelSiebel

AnalyticalSystems

DashboardsDashboards

OracleProduct

Hub

OracleProduct

Hub

Fin

an

cia

lF

inan

cia

l

Oracle / Hyperion Data Relationship

Management

Oracle / Hyperion Data Relationship

Management

Pro

du

ct

Pro

du

ct

An

aly

tical

An

aly

tical

Oracle Fusion Middleware

Application Integration Architecture

OracleSiteHub

OracleSiteHub

Sit

eS

ite

EBSEBS

SAPSAP

Custom AppsCustom Apps

ExternalApps

ExternalApps

PeopleSoftPeopleSoft

JDEJDE

BudgetingBudgeting

DWDW

BI &DatamartsBI &Datamarts

PlanningPlanning

Financial Consolidation

Financial Consolidation

OracleSupplier

Hub

OracleSupplier

Hub

OracleCustomer

Hub

OracleCustomer

Hub

Cu

sto

mer

Cu

sto

mer

Su

pp

lier

Su

pp

lier

MDM Success Stories

As a result of the MDM program stakeholders can:

� Consistently roll-up product information at brand level and above for Marketing, Sales & Corporate functions

� Consistently roll-up cost information by function or other management groups (e.g., IS, HR, Finance) management groups (e.g., IS, HR, Finance)

� View total spend by vendor globally for Procurement

� View total revenue by customer globally for Sales & Customer Service

� View total spend by material globally for Procurement & Manufacturing.

• The ultimate benefits are the enablement of improved decision making, plus the enablement of growth, deliver cost optimization and regulatory compliance across business units and corporate functions.

MDM Delivering Growth

Why:Why:

What:What:

Major IT Rationalization initiative to support

Zebra’s growth strategy organic & external

Live with customer master with AIA. Product Hub What:What:

So what:So what:

Live with customer master with AIA. Product Hub

implementing. Rapid deployment < 3 months

� Increased Up/X-sell by 10%

� Improved campaign response rate by 20%

MDM Delivering Efficiencies

Challenges / Opportunities

� Product Data spread across 6 legacy systems with

Implemented Solution

� Deployed Oracle PIM Data Hub to centralize part

creation and product attributes. Standardized product

numbers and description generation.

� Integrated Oracle PIM Data Hub with 6 legacy systems

during phased transition from legacy to Oracle

systems.� Product Data spread across 6 legacy systems with

severe data discrepancies

� New part creation taking 2 weeks for part data

approvals and synchronization with multiple

systems.

� Product numbering and description is

inconsistent.

� Attribute level data security requirement with

ECN control

� Bill of Material introduction and approval-based

change control requirement depending upon the

product release phase

systems.

� Deployed Workflow driven Engineering Change

Control (ECO) process for product attribute and BOM

changes.

Results

� Workflow-driven new part creation and approval

process reduced the new part creation time from 10-

12 days to less than 1 day.

� Maintained SOX Compliance by leveraging granular

attribute group level data security.

� Centralized product data enabled accurate, efficient

reporting.

� Real-time data synchronization with multiple systems.

� Consistent data quality using attribute validation.

� IT agility by minimal impact to current systems.

Agenda

• Introductions






Why MDM? Why Now?

• For complex businesses, MDM is the

most cost effective way to align

informationinformation

• Capital budgets are stretched –

businesses require faster time-to-value

• MDM gets more information and value

from existing IT assets and investments

How and Why? – Gartner Strategic Assumptions

“Through 2010, due to the lack of sufficiently business-oriented

approach, appropriate governance and an accompanying metrics

structure, 30% of MDM programs will be regarded as failures.

“Businesses that use a formal, enterprise-wide strategy for Global Data

Synchronization will realize 30% lower IT costs in integration and data

reconciliation at the departmental level through the rationalization of

traditionally separate and distinct IT projects.”

“By 2012, MDM will lead to a 60% reduction in all costs associated

with the elimination of redundant master data.

Recommendations and Action Items

� Business-driven (vision and strategy) MDM program for any data domain

� Justify and evangelize your MDM program � Justify and evangelize your MDM program with Metrics (Business and MDM metrics)

� Governance and Organization charting that includes Data Stewardship is a keys MDM success

� Benefit from Oracle’s leadership and innovation in the MDM technology market

Contact Info

Tamer Chavusholu

Enterprise Solutions Practice

KaygenKaygen

4438 10th Ave West, Ste 521

Vancouver, BC V6R 4R8

778-242-2425 mobile

1 Technology Drive, Suite J723

Irvine, CA 92618

925-336-1831 mobile

[email protected]

why is master data management getting both business …bcoaug.oaug.org/downloads/kaygen - bcoaug -...

Documents