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Managing Master Data for Supply Chain Excellence
Greg Valdez Director, Master Data Engineering Intel Corporation 2/6/08
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Managing Master Data for Supply Chain Excellence
Why focus on Master Data? Intel’s Experience Applying Quality Methods to Information Strategies for Best Results Q&A
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Why Focus on Master Data?
Every Supply Chain Activity is Dependent on High Quality Master Data Visibility Agility Planning Execution
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The Master Data Foundation
Consistent Master Data Enables Faster & Better Decisions Across the Enterprise Transaction Systems (ERP,MES) Planning, Analytics Systems & Y Master Data Supports the universe of Transactions & Decisions Supports ALL business processes Transactions at a Planning and Execution Level Customer Supplier Employee Organization Product BOM Item Financial Location
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Formalizing Information Quality at Intel
Corporate wide information quality initiative began in 2001 Formed a dedicated Information Quality Organization Included targeted training & objectives tied to bonuses Elevated Awareness Across the Enterprise Data is an asset - “It outlives the systems” Quantified the impact of poor data quality Redundancy, Excessive process TPT, scrap & rework Mindset change to manage master data as a business capability, not IT infrastructure
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Quality Methods for Information
Blueprint Product Specification Data Definitions (re)-Building Manufactured Information TIQM ® Define it Measure it Cost of Non Quality Improve the Data Improve the Process Establish IQ Environment P1 Assess Data Definition & Information Architecture Quality P2 Assess Information P3 Measure Nonquality Costs P4 Reengineer And Cleanse Data P5 Improve Process P6 Establish the Information Quality Environment Value/Costs Cleansed Data Improvement Define it Measure it Impact ? Fix the Data Fix the Root Issues Paradigm Shift ? Quality Methods Drive the Right Sustainable Result ® TiQM is a register trademark of InfoImpact Inc.
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Strategies for Best Results
Right Timing Leverage & Drafting One Size Does Not Fit All ‘Mainstream’ Roles Competency Development Strategic Partnerships Good idea before its time can kill momentum, and a good idea that’s late to the party creates re-work and maybe never sees the light of day. This is about seizing the opportunity for change and making sure the core elements of change enablement are all present and ready. Using leverage is about drafting behind a major change or re-engineering initiative. It can also be the leverage from a pain point in the business that traces back to master data as the root of the problem or from the envy of success at another company. One solution design does not fit all subject areas. It is somewhat counterintuitive to a standardization initiative but it is necessary to match the solution to the problem. Use what works and don’t try to force fit something that doesn’t (i.e. process, technology, governance model). Mainstream roles refers to positions such as Asset manager or Product manager. These are roles that are typically found and their purpose is to ensure that the asset or product they are responsible for is producing value. Value is measured by ROI of the capability and customer satisfaction. In this case it is about evolving each master data subject area capability to ensure it meets the needs of the enterprise. Competency development is all about building a sustainable future. This is not a project that comes and goes. It is a business solution that has a set of technology components that will continue to evolve, improve and integrate with other business solutions. Strategic partnerships is all about working both internally and externally to deliver more value than you could do otherwise working independently. In some cases it is absolutely mandatory, such as business units and IT working together; meet in the middle, not just dumb-down the IT speak. Externally it’s about getting your solution providers to have appropriate skin in the game….tying their success to yours.
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An Orchestration of Strategies
Master Data Management ROO/ROR For each attribute Distribution Consolidation Administration UI Workflow DSS App Business Owned Create/Maint/Steward Profile & Dashboard Industry References Trans, Apps Disparate Sources SQL Server, SAP Teradata, Oracle, MD Use Cases Trans Business Rules Mapping Standardize Merge Cleansing Governing To The Design Standards The Design: Business Data Application Technology The Blueprint/ Design Spec Inspect for Compliance to the Design/Standards The Architect The Customer The General (deliver the solution) Solution Business Process Engineering Software Engineers Hardware The Blueprint Improved Master Data MDM Capabilities Governance & Asset/Product Mgt Roles I am missing the BOM Corporate mandate to re-implement Standard SAP PLAN: Master Data Product Management ▪ Capability roadmaps, funding & alignment with process capabilities DESIGN: Master Data Solutions ▪ BDAT blueprints ▪ Working across multiple stakeholder groups to create the designs BUILD: Master Data Program Management ▪ All programs & projects that deliver and integrate master data capabilities RUN: Ongoing Product Management ▪ Governance to designs ▪ Establishing accountability within the business to measure/improve the quality and user satisfaction The Missing Link! Leverage Business ‘Pull’
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Data Management Capability Reference Model
Business Owned Create/Maint/Steward Master Data Management ROO/ROR For each attribute Administration UI Workflow Distribution DSS App Profile & Dashboard MD Use Cases ERP non-ERP, EDW, Other DB’s Trans Apps Consolidation Industry References Trans, DSS Apps Disparate Sources ERP non-ERP, EDW, Other DB’s Business Rules Mapping Standardize Merge Cleansing Develop & sustain MDM competencies
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Supplier Master Data Capability Roadmap
For Illustrative Purposes Supplier Master Data Capability Roadmap If required Supplier Add / Change TPT Reduction Portal w. workflow (Rev. 1) Portal w. workflow (Rev. 2) Integrated Services: Search & Select, Change Notification, Regulation Business Process Search & Select (Basic) Role-based Security Regulation Biz Process (Manual) External UI Create / Change Conversion Execution (Stage 1) Privacy Compliance Conversion Execution (Stage 2) Conversion Strategy Data Lifecycle (Rev. 1) EOL SDB Change Notification (Manual) Lifecycle (Rev. 2) Spends Hierarchy D&B Data (DUNs, Family Tree, Diversity, etc) DQ Monitors DUNS Data Quality CIP Supplier Interim Next Gen ROO Preferred Supplier Next Gen ROO Goal State ROO Compliant ROO/ROR EOL PSG & PSMT SAP BI ROR Enable EOL CVM Search & Select (Basic) capability will not include service integration across the biz suites with transactions (will only go against ROO) Change Notification: Notification of changes to the data and sending those changes to everywhere needed. Teradata ROR ROO / ROR Reduction Information Blueprint v. 1.0 Training / Education Add Spec to SGB Governance Information Blueprint Continuous Improvement Information Blueprint v. 2.0 Q Q Q Q Q Q Q Q4 Master Data Product Manager Drives Stakeholder Alignment
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Summary Managing Master Data for Supply Chain Excellence
Focus on Building a Strong Master Data Foundation Practice the use of Information Quality Methods Orchestrate Strategies for Best Results
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Q & A 2/6/08
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