building the mdm business case
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Agenda
HOW TO build a basic business case for MDM and governance
STARTING SMALL with MDM
Top THREE REASONS for failed MDM business cases and how to avoid them
© Talend 2010 2
Nimesh S. JaspalCTO :: Decision Technologies
Jaspal@DecisionTechnologies.com
Jim WalkerMDM Prod Mktg :: Talend
jwalker@talend.com
© Talend 2010
Level Set – Defining MDM
PartnersCustomers
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Data Is EVERYWHERE•Difficult to maintain•Multiple versions of the “truth”, no sharing•Redundant systems, apps & databases•Inconsistent data and limits cooperation•Difficult to agree on a shared format, politics•No collaboration between systems & users
… enterprise data is dispersed across the organization in disparate silos, in varying formats and under different access rights.
Four step plan to build an MDM biz case
© Talend 2010 5
Step 1: Get a Quick Win
Step 2: Collect Value Statements
Step 3: Align with Corporate Objectives
Step 4: Present short pain/long term gain
Four step plan to build an MDM biz case
Step 1: Get a Quick Win
Find a simple domain and lay the MDM foundationSome sample “other” MDM domains include:Reference data, Employees and LocationsMastering a simple domain allows you to implement basic MDM technology, presenting a platform for the future
Demonstrates “real” value in the business caseAbility to show a real return in the business planAllows a wide audience to see the future and sets you up for success in the next step
© Talend 2010 6
Four step plan to build an MDM biz case
Step 2: Collect Value Statements
Present the basics of MDM and let peers “stir”Create and deliver a basic understanding of MDM to your peers with sample value statementsInclude business and technical resourcesCollect a list of ways MDM might be valuable to them
Gains alignment, involvement and visibility Creates a common understanding go MDM to help project and future data governanceProvides you with valuable “bullets” for your biz case
© Talend 2010 7
Sample MDM Business Cases
Supplier consolidationUniversal cross line or BU offers catalogDevelopment Reference Data CatalogPromotions across LOBIT Project, Resource UtilizationCustomer / Account AggregationSunset legacy ERP systemCustomer PortalCustomer profitability / risk profileTranslating Scientific to operational dataMulti-Account collections & recoveriesCustomer Privacy preferences across LOBs
Four step plan to build an MDM biz case
Step 3: Align W/ Corporate Objective
Understand what’s important to the C-suiteEvery organization has objectives and MDM can have a positive affect on each of themGather the objectives and align each value statement to one or more, assigning importance and complexity
Gain Buy-in, demonstrates valueSpeak the language of the c-suiteDifficult to extend ROI without a valid, tangible business case
© Talend 2010 9
Four Basic ObjectivesIncrease revenueDecrease CostsMitigate RiskComply w/ Regulations
Sample MDM Business Cases
Supplier consolidationUniversal cross line or BU offers catalogDevelopment Reference Data CatalogPromotions across LOBIT Project, Resource UtilizationCustomer / Account AggregationSunset legacy ERP systemCustomer PortalCustomer profitability / risk profileTranslating Scientific to operational dataMulti-Account collections & recoveriesCustomer Privacy preferences across LOBs
Sample MDM Business Cases
Decrease CostIncrease RevenueDecrease CostComply w/ RegulationsDecrease CostIncrease RevenueDecrease CostDecrease CostMitigate RiskIncrease RevenueMitigate RiskComply w/ Regulations
Supplier consolidationUniversal cross line or BU offers catalogDevelopment Reference Data CatalogPromotions across LOBIT Project, Resource UtilizationCustomer / Account AggregationSunset legacy ERP systemCustomer PortalCustomer profitability / risk profileTranslating Scientific to operational dataMulti-Account collections & recoveriesCustomer Privacy preferences across LOBs
Four step plan to build an MDM biz case
Step 4: The short and long term Case
Lay out Short term pain and long term gainChoose two to three value statements that will provide the biggest bang for your buckMap each to the corporate objectives and present a business caseUse your “quick win” from step one as the baseline for the project to demonstrate momentumUse this foundation as the beginning of your technical case
Firm foot in the now with an eye on the future…Solve short term pain, address long term gain
© Talend 2010 12
Typical MDM Business Case
Supplier consolidationUniversal cross line or BU offers catalogDevelopment Reference Data CatalogPromotions across LOBIT Project, Resource UtilizationCustomer / Account AggregationSunset legacy ERP systemCustomer PortalCustomer profitability / risk profileTranslating Scientific to operational dataMulti-Account collections & recoveriesCustomer Privacy preferences across LOBs
PHASE ONEBUSINESS CASE
Servicing: Commit to enabling multi-account servicing for the new web launch
Alignment:align data to improve analytics for better product development
Regulatory Pressure: consistent privacy preferences for all customer records
Phase one, overcome inertia and demonstrate tangible business value
Typical Technology half of the MDM case
Master Data Management Platform
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PHASE 1 PHASE 2 PHASE 3
Sketch a big picture but start small
Master Data Management
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Single, high value business case pays for the MDM infrastructure
Pick a single business case or two and get specific on eachLong term platform is secondaryDemonstrate short term gains to sell long term opportunities
Build detailed business case with the projects people can rally around
Easier for executives to envision the value and focus on short term gains, while understanding the long term goals
Commit to dates - demonstrate understanding effects on major business processes
PHASE 1
Solutions@DecisionTechnologies.com
Business Use Case
Customer Satisfaction Issues due to parts availability
Global capital equipment manufacturer
Razor thin profit margins
Materials Master identified as leading candidate to enable service teams
Solutions@DecisionTechnologies.com
Business challenges
No single view of the materials master
20+ manufacturing sites world wide
15 source systems (9+ flavors of ERP systems, via acquisitions)
3,000,000+ material records
200,000 suppliers listed in database
Same material from different countries (country of origin issues)
Solutions@DecisionTechnologies.com
Business challenges
Different procurement processesDifferent regulatory requirementsDifferent payment systems and gatewaysDifferent banking systemsDifferent tax lawsDifferent export restrictionsDifferent transport and logistic structures
World Wide Customers and Material Sourcing
Solutions@DecisionTechnologies.com
Approach
Data consolidation and analysis –collected all material master candidate attributes
De-duplication and data quality – RMF analysis
Limited number of attributes -- 45 attributes qualified for phase 1
Governance
Automate Workflows
Solutions@DecisionTechnologies.com
Hugely Successful Project – Re-cap
Starting SmallFocused on 45 attributes vs. boiling the ocean with 100’s
Service function only vs. Procurement, Engineering, Manufacturing, Trade and Finance
Business Benefits$30+ million in first years savings: Project paid for itself 10 XParts count reduced to 1.2 million (started with 3,000,000)Can now perform parts analytics by machine, customer and use
Fact based ask for additional funding and resources
Solutions@DecisionTechnologies.com
Phase 2 – Building on the Materials Master
International Trade
DoD oversight and compliance needs
Added ~10 new attributes to the materials master
The MDM platform has became the single go-to place to resolve all Customs and DoD issues with parts.
Why you CAN start small now
Why the simple MDM case never existed• Cost• Complexity• Speed• Flexibility
Market characteristics at work on this problem• MDM is more mainstream, effects price, makes more attainable• No need to boil the ocean• You are already doing “MDM”• General MDM solutions are now available… tackle “other” domains
© Talend 2010 22
A Simple Data Integration Project
Data Integration
ORACLE
Web CMS
WebStore
Migration and synchronization of product catalog from oracle to IBM
Master Data – Project Extension
ORACLE
INGRAM
IBM WCC
WebStore
MDM Server
Talend MDM Web UI
Added Workflow for
approvals
Added Data Quality for Augmentation of data 1
3Product Hub for
future use
Simple extension, major value…Persist and maintain product data in a hub
2
Mastering “things” for a quick win...
© Talend 2010 25
Reference Data
Employees
Product Catalog
Shipping Routes
Locations
IT Projects/Consultants
Categories
Customers
Three reasons MDM biz case fails
1. Plan doesn’t address data governanceInvolve others, gain alignmentCreate and document a DG plan
2. Too big… too expensive… too muchStart small, grow bigSet attainable and realistic milestones\Priorities change over time… your MDM value will as well
3. Doesn’t resonate with c-class suiteMap value of MDM to corporate objectivesMake it real, start with a quick win
© Talend 2010 26
Agenda
HOW TO build a basic business case for MDM and governance
STARTING SMALL with MDM
Top THREE REASONS for failed MDM business cases and how to avoid them
© Talend 2010 27
Nimesh S. JaspalCTO :: Decision Technologies
Jaspal@DecisionTechnologies.com
Jim WalkerMDM Prod Mktg :: Talend
jwalker@talend.com
© Talend 2010 28
Talend Highlights
A high adoption rate8 million downloads
400,000 users
1,200 customers
1 download of Talend Open Studio
per minute
100 new customers per month
Talend MDMdownloads
in six months
The Open Source Data Management Company
Solutions@DecisionTechnologies.com
Decision Technologies LLC
End to End Data Management expertsMDM Data GovernanceData MigrationData IntegrationData Improvement projects
Core architecture & database layer expertise of SAP & Oracle eBiz, Peoplesoft, J D Edwards, Seibel & BaaN, OBIEE and BO platforms
Real world experience in business and global processes
Clients leverage our experience to guarantee their success
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