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Tips & Tricks to drive effective Master Data Management & ERP Harmonization

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Quality Master Data for Improved Business Performance


Master Data Performance Solutions

Verdantis, Inc. is the evolution of Zynapse – a division of Zycus, Inc. to its own company with its own corporate identity Verdantis comes from the Latin word for truth – veritas - and the word verdant – meaning abundant and sustainable


Today Speakers Jeffrey Karson Project Manager, Business Integration Siemens Water Technologies Corp. About Jeffrey Karson Jeffrey is a Project Manager at SWT which is a division of Siemens AG. He has been active in the area of project management and material management for over 15 years. His current responsibilities involve the implementation of a new ERP system (SAP) at Siemens Water Technologies with focus on the loading of harmonized master data. Arthur Raguette Vice President, Business Development Verdantis Inc. About Arthur Raguette Arthur Raguette drives strategic partner development, industry alliances, and new business initiatives for Verdantis. His career of creating collaborative business relationships that deliver enterprise-class master data management and spend management solutions to Global 2000 customers spans over 15 years.


Unlocking ROI from ERP Investments – The Master Data Management Story

Arthur Raguette Executive Vice President Verdantis, Inc.


Introduction • ERP Systems Are Indispensable to Business Operations in Large Organizations • Master Data Quality affects the Accuracy, Efficiency, and Reliability of business processes • Master Data Has a Material Impact on the Financial and Operational Health of an Organization • Consistent Data Management keeps Enterprise Applications in Shape • Master Data Rationalization Is a foundation for increasing the ROI of an existing ERP Investment


The Role of Master Data in the Enterprise

The items it makes The items it buys The employees who work there The customers to whom it sells The suppliers it buys from

Master Data Quality Issues Ripple Across the Enterprise


A Challenge of Master Data in the Enterprise A disorganized approach toward Maintaining Master Data Is more common than you may think‌ Customer Master

CRM Teams

Vendor Master

Procurement/Accounts Payable

Item Master

No clear Owners


Multi-domain MDM Challenges Business Stakeholders Enterprise Applications Information Technology

Processes related to  Customers  Materials  Products/Services  Vendors

 Has specific functionality  Rules in its own fashion  Handles the business context of data  Individual understanding of data attributes

Heterogeneity

Global Data Synchronization

Information is inconsistent across the organization

Sharing and synchronizing information across enterprise applications further creates complexities    

Conflicting data across business factions Lack of stakeholder ownership Delayed request for information Lost ROI from ERP investment


Current Issues in Master Data Success: The Root Cause is Data Quality • Various master record formats • Various systems of record • Incongruent naming standards or no naming standard • Lack of a standardized classification convention • Incomplete fields and missing data elements The Effect of Bad Master Data on Business Initiatives Is Profound • Merger and Acquisition Activities • ERP System Consolidation • Enterprise Spend Management • Sourcing Strategies and the make-v/s-buy process • Inventory Visibility • Decreased Plant and Equipment Availability • Part Reuse in Design • Decreased Employee Productivity


Incomplete Approaches towards Master Data Rationalization

ETL Solutions (Extract, Transform, Load)

These solutions are too generic in functionality to deal with the complexities of item master records. ETL solutions do not perform classification and attribute enrichment. Moreover, there is considerable effort and expense in setting up these solutions for repeated use.

Asset Management Solutions

Asset management solutions typically target only a subset of item master data, namely MRO (maintenance, repair, and operations) items. This is not sufficient for ERP consolidation or for comprehensive spend analysis. In addition, there is significant manual effort involved.

Commerce Catalog Solutions

Commerce catalog solutions tend to focus only on the items sold, rather than those procured. These solutions are less experienced in tapping the various internal and external sources of item data and fail in the subject-matter expert department. Furthermore, they do not automate the attribute enrichment, automating instead only the workflow.

Manual Content Factories

Manual content factories, or manual approaches in general, were common before the advent of artificial intelligence tools for master data rationalization. The manual approach cannot scale nor can it meet the throughput demands of large projects.


Proper Master Data Management requires a consistent automated process!

Key Issues with Concurrent MDM Approaches

    

Limited Scope of Organizational Data Narrow Focus Lack of Scalability High manual intervention Multiparty data manipulation

How repeatable is the process?

Can the system learn?

What is the throughput of the system?

How strong are the algorithms used for the automated processing?

Can the process be integrated into daily operations?


Integrating Master Data Rationalization Into ERP Consolidation or Upgrade Planning 83% of data migration projects fall/overrun • Half exceed timescales by three-quarters • Budgets are exceeded by two-thirds • A third of these fail entirely Standish group Study 2008

ERP initiatives, the importance of data migration & the emergence of Master Data Management (MDM) During Data Migration, multiple masters are migrated • Small Masters - Chart of Accounts Master, Currency Master, etc • Key Masters - Material, Vendor, Customer, etc

Handling of the key masters during migrations is the key to unlocking the ROI from an ERP investment • Material Master ROI • Supplier Master ROI • Customer Master ROI Handling Key Masters need a specialist • IT services provider or ERP implementation partners cannot do it • Data migration of Key masters needs strong domain expertise • Specialized cleaning tools and knowledge repositories are needed

Master Data Management (MDM) of the Key Masters has to be part of the ERP blueprint


Master Data Rationalization

Demonstrable ROI in •

Greater and quicker ROI realization form ERP Investments

Increased Leverage of the existing systems

Increased Contract Compliance

Spend Leverage through supplier consolidation

Global Inventory optimization

Reduction of Inventory Carrying costs

Increased Plant Uptime

Increased Worker productivity

Reduced Mean Time to Delivery of Products

Building the right business Case for Master Data Rationalization


The bottom line •

Clean, Reliable Master Data Enables Successful Enterprise Initiatives

Master Data Rationalization Is Required to Ensure Master Data Quality

Build Master Data Rationalization Into ERP

Optimized Optimized Proactive Managed Reactive Aware Proactive Managed Reactive Aware

Consolidation Planning •

Master Data Rationalization Is a Key Component to Achieve Data Quality Maturity


Siemens Water Technologies

Master Data Management & ERP Harmonization Initiative

Jeffrey Karson Project Manager, Business Integration Siemens Water Technologies Corp.


About Siemens Water Technology Leading water & wastewater treatment company in the world

Siemens Water Technologies is a leading global provider of cost effective

and

reliable

water

treatment systems and services, offering

everything

emergency

water

conventional

from

supply

water

and

treatment

Has developed more than 850 products and technologies

processes to wastewater reuse systems, membrane bioreactors,

Siemens Water Technologies

Provides comprehensive water treatment solutions

UV disinfection systems and RO cleaning

contracts.

The

company's products and services are designed to help keep your city

safe,

profitable.

or

your

company

Company has over 200,000 installations; 174 office & plant locations

Has presence in the Americas, Europe, Middle East, Africa, & Asia-Pacific


The SWT Legacy- The Need For MDM Key Events • Siemens acquisition of US Filter in 2004

Identify common nomenclature for master data

• US Filter’ history of a lengthy series of mergers, acquisitions, and divestitures

Understand the Problem: • Fragmented business system landscape • No master data or process standardization

Enrich master data to populate missing attributes

• Virtually no information transparency

SWT's strategic goals • Partner/align with SAP implementation • Improve visibility and control of information

Identify and remove duplicates

• Improve operational efficiency • Improve working capital management and business process management • Comply with SIEMENS standards

Consolidated & Cleansed Master Data


The Challenges


SWT’ Master data harmonization requirements

LEGACY SYSTEMS • 8 brands in the U.S • 13 instances • 3 instances that consolidate businesses MATERIALS • 1,300,000 active materials • No common nomenclature for part descriptions or attribute callouts • Duplicates within and across legacy systems • No common or SIEMENS-required classification BUSINESS PARTNERS • 102K customers; 63K suppliers • No common protocol; duplicates across legacy systems • No global visibility into business partner relationships • Little industry classification


The MDM initiative at SWT • Planning

Design the Process & Roadmap:

• Stakeholders

• Harmonize primary legacy ERP master data

• Budgets

• Governance for new data creation, change & data life-cycle

• Timelines

management • Migrate legacy data to SAP • Comply with corporate global applications

Verdantis Harmonize for Historical Data Cleansing & Enrichment

Verdantis Integrity Solution to manage master data creation and maintenance going forward

The MDM Blueprint


Business vs. Technical Effort- Finding the balance Role of the Project Team –Design, Engage, Lead & Support •

Champion & Vision

Roadmap & Budget

Sell & Garner Support

Communicate & Demonstrate

Manage & Support Business Effort

Business people -Design, Definition & Acceptance Testing •

Harmonization & Solution Design/Acceptance

Knowledge of the business & requirements

Owners and experts of the data

Have the most at stake

More likely to drive & sponsor deployment, troubleshooting and continuous improvement

Other Support •

Executive & Business Leadership –Approval & Support for Business Resources

IT –Legacy Interfaces, Data Rationalization, Data Migration

Executive Sponsorship Business Leadership

Business Functional Process Owners

SAP Team

MD Project Core Team IT

Business Technical Engineering

Business Technical – Purchasing

The Stakeholders Centralized Core Team Decentralized Resources & Support


Harmonization Process and Team Roles

Legacy Master Data

BC Owner to Validate Inactive list

IT/Project Team/Technology tools

Legacy Interface

Rationalize Active Item List

Data Setup & Rationalization

Establish connectivity Create Rules for Inactivity Establish Metrics for Harmonization Deliver Data to Harmonizer consultant

Business to Provide details Necessary to Classify & enrich items

Business to Update legacy Data as appropriate

Consultant/Project Team/Business Technical Support

Classify Items

Harmonization

Complete Spec Attribute

Establish Numbering Scheme Select Classification Criteria Create Standard Attribute Requirements Transform Data

Eliminate Dupes & Assign Unique Number

Central Master Data Repository


The Governance Process Daily : Review & edit new records created in the Master Data Repositories

MDDM Team

Tools/Master Data Repository (MDR)

MDR

Accumulate KPIs for Monthly report

Review for quality and edit record In MDM

Daily Report of Newly created records

MDM

Feedback : Local Business

Noncompliant Record list sent To businesses

Business edit records

Monthly : Audit the ERP Databases Audit: Software tools

ERP Databases

Extract Master Records Legacy

ORACLE

SAP

Accumulate KPIs for Monthly report

Review for quality and edit record In MDM

MDM SAP

Non SAP Check record number type (system or assigned) Check for classification Check for other

Check for Master Control Number Check for classification Check for other

Feedback : Local Business

Noncompliant Record list sent to businesses

Business edit records


Data Governance -The MDM Lifeline Search

Define

Authorize

Create

Update

NO

Approve? Systems Legacy User

Tools/Master Data Repository

Master Data Repository

MDM YES NO

Approve?

SAP

Local Authorizer

Oracle User Record: Definition Classification

YES YES

Record: Definition Classification Control No.

NO

ORACLE

SAP User Potential Match? NO

AutoApprove?

YES

SYS Legacy (s)


Benefits of master data harmonization and governance initiatives at SWT

BUSINESS •

Process standardization drives continuous improvement

Provides consistent and actionable information

Enables elimination of duplicated data entry across applications

FINANCIAL • Improves spend and supply management • Enables part standardization and lean inventory

TECHNICAL • Improves success of SAP implementation • Facilitates interfaces between and among applications • Enables centralized maintenance and change management


Measuring Results and Performance Harmonization

Data count after rationalization

Classification Success

Number of Classification Specifications

Enrichment rate

Source active data count

Governance

Duplicates avoided

Non-compliant records in ERP systems

Non-compliant transformation turnaround

Data quality

Migration • Legacy data match up with basic views from Master Data Repositories Corporate Applications • Alignment of data common to multiple application • Eliminate duplicate creation & effort –feed from the most logical source • Quality of data feed • Quantity of rejected records


Driving People, Process & Cost Efficiency Financial: • Improved spend and supply management • Greater savings by empowering procurement with greater bargaining power • Enabled part standardization and inventory optimization driving reduced inventory cost Business Process • Greater visibility into and optimum utilization of enterprise assets • Enhanced overall procurement process and end-user efficiency • Elimination of duplicated data entry across applications and factories • Business process standardization drives continuous improvement End-Users: •

An easy-to-use bolt-on-SAP solution for ongoing MDM

Greater end-user productivity and adoption of data governance frameworks

Standardization of data by eliminating the perception difference between people and plants

Ensuring Value is Added!


Why we chose Verdantis? • Only provider that had a complete solution engineered specifically for what SWT needed • The Verdantis Harmonize Solution to harmonize existing data and bolt on the Verdantis Integrity Solution to control new information flowing into SAP • A detailed Proof of Concept to harmonize a subset of SWT's real material master data was a big success. • Verdantis parent company, Zycus already had a relationship with Siemens' Energy business in the related area of Spend Analysis • Expertise in the process of mapping Siemens' proprietary ESN materials coding system to the global standard UNSPSC coding system • The language agnostic nature of Verdantis artificial intelligence based automated MDM solution and the ability to handle large volume of cryptic and complex descriptions in a short turn-around time • The Easy-to-Use and Easy-to-Configure Verdantis Integrity Solution for maintaining data integrity and providing ongoing data management.


Quality Master Data to Improve your Business CLEANPerformance IT WITH HARMONIZE MATERIAL HARMONIZE

SUPPLIER HARMONIZE

CUSTOMER HARMONIZE

PRODUCT HARMONIZE

MATERIAL INTEGRITY (MI)

SUPPLIER INTEGRITY (SIM)

CUSTOMER INTEGRITY (CIM)

PRODUCT INTEGRITY (PIM)

KEEP IT CLEAN WITH INTEGRITY


Master Data Solutions

Get your copy of the Siemens ERP Harmonization case study here. Get access to many more research papers and case studies in ourwww.verdantis.com Knowledge hub! info@Verdantis.com Toll Free +1 866 987 4463


Q&A

Quality Master Data for Improved Business Performance

Tips & tricks to drive effective mdm & erp harmonization  
Tips & tricks to drive effective mdm & erp harmonization  

Tips & tricks to drive effective mdm & erp harmonization

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