Presentation from Elemica's reveal2014 Conference

1. From Big Data
to Value
The Power of Master
Data Management 2.0
Sergio Juarez
SVP Elemica EMEA & LATAM
Reveal Oct 2014

2. Why
Now?
What
To
Do?
How
To
Do
It?
What’s
Next?
Agenda
Master Data Management

3. Today’s Topic
3
Defini6on
Master
Data
Management
(MDM)
combines
Data
Governance
Prac6ces
with
SoCware
Tools
in
an
effort
to
help
organiza6ons
achieve
a
"single
version
of
the
truth"
of
informa6on
across
systems
and
business
units.

4. Why Now?

5. Market Trends
5
1. MDM
in
the
Cloud:
“On-­‐premises
MDM
solu6ons
are
increasingly
integrated
with
soCware-­‐as-­‐a-­‐service
applica6ons,
and
we
see
MDM
technology
star6ng
to
be
deployed
in
the
cloud
for
line-­‐of-­‐business
purposes
and
specific
business
ini6a6ves.”
Source:
John
Radcliffe,
Research
Vice
President
at
Gartner
1. MDM
in
the
Cloud
2. Maturing
SoCware
&
Technology:
The
sales
of
MDM
soCware
grows
at
21%
annually
es6mated
to
an
$
2,8
bn
in
2014.
Source:
Gartner
1. MDM
in
the
Cloud
2. Maturing
SoCware
&
Technology
3. Rise
of
Informa6on
Flow:
Worldwide
informa6on
volume
is
growing
at
a
minimum
rate
of
59
percent
annually
Sources:
Gartner
&
The
Data
Management
Associa6on
(DAMA)
1. MDM
in
the
Cloud
2. Maturing
SoCware
&
Technology
3. Rise
of
Informa6on
Flow
4. Acknowledgement
of
the
Importance
of
Data:
By
2015,
25%
of
large
global
organiza6ons
will
have
appointed
Chief
Data
Officers
(CDO):
as
Big
Data
is
changing
the
way
organiza6ons
do
business
there
is
both
opportunity
and
risk
in
informa6on.
Source:
Debra
Logan,
Research
Vice
President
at
Gartner
1. MDM
in
the
Cloud
2. Maturing
SoCware
&
Technology
3. Rise
of
Informa6on
Flow
4. Acknowledgement
of
the
Importance
of
Data
5. Costs
of
Data
Pollu6on:
Approximately
15-­‐25%
of
opera6ng
expense
of
almost
all
organiza6ons
are
wasted
due
to
data
quality
issues.
Source:
The
Data
Management
Associa6on
(DAMA)
1. MDM
in
the
Cloud
2. Maturing
SoCware
&
Technology
3. Rise
of
Informa6on
Flow
4. Acknowledgement
of
the
Importance
of
Data
5. Costs
of
Data
Pollu6on
6. Corporate
Data
Silos:
Data
is
the
lifeblood
of
every
digital
organiza6on,
but
businesses
are
struggling
to
access,
share,
and
analyze
much
of
the
data
they
already
have.
Through
2015,
85%
of
Fortune
500
organiza6ons
will
be
unable
to
exploit
Big
Data
for
compe66ve
advantage.
Source:
Gartner

6. Why Do It?

7. Value Enablers
7
Supply
of
Goods
&
Services
Supplier
Mgt
Strategy
Development
Governance
&
Organisa6onal
Development
Category
Planning
Sourcing
IT
People
DATA
Managing the Enablers
Supply
Planning
&
Control
Demand
Mgt
V
a
l
u
e
€
1
3
4
Policies
&
Processes
lock
in
Value
Years
Sourcing
&
Procurement
Value
Genera9on
Supply
Chain
Organiza9onal
Pyramid
Demand
Data
Insight
Enables
Value
Sourcing
Creates
Value
eSourcing
Accelerates
Value
These Enablers are prerequisites for success…
Sourcing won’t create value without Demand Data Insight.
eProcurement
Sustains
Value

8. Many Value Areas of
Improved Master Data
8
Your
Customers
and
Suppliers:
“The
use
of
industry
standard
classifica6ons
makes
us
all
speaking
the
same
language
which
allows
instant
recogni6on
of
parts
and
services,
eg
for
price
quota6ons.”
Your
Engineers:
“Our
produc6vity
went
up
with
15%
due
to
the
increased
accuracy
and
availability
of
parts,
while
we
managed
to
reduce
down
6me
with
2%!”
“Our
Inventory
Costs
went
down
by
an
average
8%
as
we
improved
stock
insight,
removed
dead
stock
and
duplicates.”
Your
Procurement:
“We
managed
to
bring
costs
down
as
we
improved
on
Demand
Insight,
product
descrip6ons
to
tender
with,
alterna6ve
products
for
lower
costs
or
higher
quality,
and
we
easily
iden6fy
suppliers
to
buy
from!”
Your
Stores
Manager:

9. How To Do It?

10. Common Data Issues
Iden6fied,
verified
and
amended
Duplicated
Items
1
Standardized
Automa6on
Inconsistent
Naming
Conven6ons
3
Include
different
dic6onaries
and
language
packs
Different
Languages
across
mul6ple
Regions
4
Linking
(meta)
data
enriches
and
classifies
available
data
Poor
or
Non
Existent
Part
Descrip6ons
5
Cleansed
Data
can
be
fed
back
into
your
ERP
(SAP,
Oracle
etc)
Different
copies
of
Master
Data
6
Common
DATA
ISSUES
Poten9al
SOLUTIONS
Replace
with
Technical
Data
or
use
bemer
wording/defini6ons
Descrip6ons
include
Commercial
Data
or
don’t
fit
audience
2
10

11. How to Organize?
ERP
Add on
Tool with
connector
11
With
this
func6onality
your
data
goes
through
a
process
to
become
more:
1. Complete:
Required
amributes
are
available
for
all
needs
and
users,
including
suppliers,
engineers,
foreign
countries.
2. Consistent:
Naming
conven6ons
are
applied
consistently.
3. Conformed:
Industry
standards
and
classifica6ons
are
applied
correctly.
4. Accurate:
Data
free
of
typo’s
and
misleading
abbrevia6ons.
The
Data
Cleansing
Tool
is
connected
to
your
ERP
and
brings
the
new
func6onality.
On-
or Offline
Knowledge
updates

12. Initial Cleansing Process
Product
Iden9fica9on
1
2
3
4
Standardiza9on
&
Enrichment
Language
Transla9on
Duplicate
Removal
1. Interpret
Data;
including
Abbrevia6ons,
Typos
etc
2. Match
Parameters
3. Score
Outcome
as
to
Funnel
Manual
Workforce
to
Problem
Areas
1. Enrich
Data
with
External
Sources
like
Supplier
Catalogues
2. Apply
Naming
Conven6ons
3. Replace
Commercial
Data
with
Technical
Data
4. Classify
to
Deepest
Category
of
Various
Standards
5. Separate
Vendors
from
Manufacturers
1. Recode
Fields
for
different
Target
Groups
like
Suppliers,
Engineers,
Procurement
2. Transla6on
into
Different
Languages
12
1. Iden6fica6on
of
Duplicate
Parts
2. Iden6fica6on
of
Similar
Parts
eg
OE
vs
Commodity,
or
Single
Items
vs
Kits
3. Insight
on
Volumes
for
Duplicate
Parts,
Stock
Value
and
Store
Loca6ons

13. What’s next?

14. Next Steps
14
1. Get
Your
Priori6es
Straight:
Focus
on:
• Short
Term
vs
Long
Term?
• Manual
vs
Automated
Cleansing?
• Outsourced
vs
in-­‐house?
• Category
Items
vs
All
Supply
Chain
Items?
• Reduce
Pain
Points
vs
Increase
Value
Areas?
Value
Streams
As
is
Time
line
THINK
BIG
start
small
Scale
Fast
To
be
1. Get
Your
Priori6es
Straight
2. Scope
the
Ini6a6ve:
• Which
Categories
And
Geographical
Loca6ons
Are
In
Scope?
• Which
Languages
And
Classifica6on
Standards
To
Implement?
• Which
Domain
Strategy
Shall
Be
Considered?
• Which
Tools
And
Processes
Are
Affected?
1. Get
Your
Priori6es
Straight
2. Scope
the
Ini6a6ve
3. Assess
Opportunity:
Experience
shows
the
following
metrics
could
be
achieved:
KPI
Potential
Savings
Typical
Savings
Inventory
cost
reduction
5-­‐15%
8%
Procurement
cost
reduction
2-­‐10%
5%
Equipment
downtime
reduction
2-­‐5%
3%
Supply
chain
&
storage
cost
reduction
8-­‐12%
10%
Increased
procurement
&
engineering
worker
productivity
8-­‐20%
15%
Reduced
Accounting
Compliance
Risk
2-­‐5%
3%
1. Get
your
priori6es
straight
2. Scope
the
Ini6a6ve
3. Assess
Opportunity
4. Select
&
Implement
For
today
you
can:
a) Request
a
Demo
to
Elemica
b) Amend
the
Breakout
Session
‘Inside
view
on
Master
Data
mgt
Tooling’

15. Thank You
For Your
Attention…