Strategically manage Data Quality in an ERP rollout · Material Master ROI •Reduced inventory, Better reuse, Easier search •Less payment errors, de-duplicated repository Supplier

Cutting-edge Technology to drive ERP

Rollout success

Welcome to our September Webinar

Strategically manage Data Quality in an ERP rollout

Over a decade of strategic data quality experience in supporting ERP/EAM rollouts

distilled into a 40 minute webinar

About the Presenter

George Pasti

Regional Sales ManagerVerdantis, Inc.

[email protected]

George has over 15 years of experience in Master Data Management with a

primary focus on materials. Related experience in Data Warehousing,

International Supply Network, Supply Chain, Supplier Management, Content

Management, Engineering and Manufacturing software applications. He is

client value driven and has advised on many successful projects.

www.verdantis.com | [email protected]© 2018 Verdantis Inc. All Rights Reserved.

http://www.verdantis.com/

• Organizational mergers or ERP rollouts – Seeing the bigger picture

• The changing constant – Master Data

• Material Data Excellence – A stitch in time saves nine

• Customer success stories, and critical mistakes to avoid

• Unlock ROI – See for yourselves with a free Proof of Value

Agenda

© 2018 Verdantis Inc. All Rights Reserved.

Resolving ERP Project Challenges is dependent on Master DataOrganizations are consolidating ERP/EAM systems to drive global business performance…

Drive standardization

across enterprise

Higher business and operational efficiencies

Cost reduction and consistent growth

Faster time-to-market and

significant bottom-line savings

Value Chain Factors

➢ Common suppliers

➢ Common materials

➢ Common customers

➢ Multiple manufacturing locations

➢ Multiple Distribution locations & methods for same products

Corporate Factors➢ History of or Frequent acquisitions➢ Changing from country-based to global lines of

business organization➢ Disparate accounting practices globally➢ Lack of visibility➢ IT Operations Costs➢ Limited or no shared services➢ Need for global best practices


Challenges ERP Implementation ERP Consolidation

Resistance to Change ✓ ✓

Inadequate Training and Education ✓ ✓

Multiple business functions ✓ ✓

Different processes and standards ✓ ✓

Change management ✓ ✓

Software business process incompatibility ✓ ✓

Integration of multiple systems and applications ✓ ✓

Legacy system features loss ✓ ✓

Multiple ERP instances ✓

ERP systems optimized for different functions ✓

Lack of communication among the systems ✓

Inaccurate, duplicated and corrupt master data ✓ ✓

Inadequate master data definition ✓ ✓

Different standardized data formats, data conversion ✓

Different governance processes ✓

Enterprise-wide Master Data inconsistency ✓

PROCESS

PEOPLE

SYSTEMS

DATA

Resolving ERP Project Challenges is dependent on Master DataERP implementations are essentially business transformations with 360° challenges…



Program Preparation

Setup for Local Program

Organization

Adaptation for Strategic

Framework

Early Adoption of Best Business

Practice Processes

Data Management

Standards Implementation

Data Cleansing and Data

Preparation

Business Blueprint

General Program Management

Local Business Blueprint

Documentation

System Operation Strategy

Data Cleansing and Data

Preparation

Realization

General Program Management

Data Preparation & Data Migration

Simulation

Cutover Planning & Preparation

Final Preparation

End user Training

Business Simulation

Data Migration to Production

Pre-Go-Live Operations

Go Live and Support

Business support

Project closing

… Tackling these 360° challenges requires strategic planning at each stage






Agenda



Program Preparation

Setup for Local Program

Organization

Adaptation for Strategic

Framework

Early Adoption of Best Business

Practice Processes

Data Management Standards

Implementation

Data Cleansing and Data Preparation

- Inventory and Scope

Business Blueprint

General Program

Management

Local Business Blueprint

Documentation

System Operation Strategy

Data Cleansing and Data Preparation

Processing

Realization

General Program

Management

Data Preparation Complete

& Data Migration Simulation

Cutover Planning & Preparation

Final Preparation

End user Training

Business Simulation

Data Migration to Production

Pre-Go-Live Operations

Go Live and Support

Business support

Project closing

For Data Change Management – this means incorporating Strategic Data Quality in the ERP Blueprint

•Standardized, enriched and accurate master data

•High data reliability for improved decision making

•Ongoing data maintenance

Improve data quality, reliability and governance

•Better procurement and sourcing strategies

•MRO supply chain optimization

•Streamlined operations and greater process compliance

Minimize costs and maximize process efficiencies

•Lower inventory carrying costs

•Reduced plant downtimes and increased productivityGain enterprise wide visibility

•Enhanced cross-functional collaboration and performance

•Maximized benefits from M&A activitiesOptimize the ROI from ERP

implementations

MDM Accelerates the ROI from ERP Projects

•Reduced inventory, Better reuse, Easier searchMaterial Master ROI •Less payment errors, de-duplicated repository

•Standardized payment terms, Better Spend AnalysisSupplier Master ROI •Reduces invoice errors, Better reconciliation,

•Reduced incorrect transactions and Improved overall efficiencyCustomer Master ROI•Better sourcing strategies, Faster time-to-market

•Enhanced product visibilityProduct Master ROI

Enhanced Business Efficiencies after Go-Live

Strategic Data Quality enhances returns from the ERP rollout







Agenda


Strategic vs. Tactical approach to Material Data Quality

Focus of Data Governance tools for Keeping it Clean

Technology reinforced new master record creation prevents duplicates at source

Rudimentary tools like E-mail result in non-standardized creation of master records with little

or no control on duplicate-check

Specificity of Data Quality tools for Getting it Clean

Material Focused Data Quality tools, with in-built data templates

Generic DQ or ETL tools

Approach to Material Data Quality

Proactive approach - planned within ERP rollout blueprint

Reactive approach – If at all, might budget post ERP go-live


Demonstrable ROI in

• Greater and quicker ROI realization form ERP Investments

• Reduction of Inventory Carrying costs

• Global Inventory optimization

• Increased Plant Uptime

• Increased Worker productivity

• Reduced Mean-Time to Delivery of Products

• Increased Contract Compliance

• Spend Leverage through supplier consolidation

Data AggregationClassification / Categorization

Attribute Extraction

Attribute Enrichment

Duplicate Record Identification

Building the right business Case for

Master Data Rationalization


Material Master Data Rationalization – Getting it Clean

Search Define Authorize Create Update

Systems

Legacy User

Oracle User

SAP User

Tools/Master

Data

Repository

Record:

Definition

Classification

Local

Authorizer

Record:

Definition

Classification

Control No.

Potential

Match?

Approve?

Auto-

Approve?

Approve?

MDMMaster

Data

Repository

SYS

Legacy (s)

NO

YES

YES

NO

NO

NO

YES

YES

SAP

ORACLE

Material Master Data Governance – Keeping it Clean






• Locked value – See for yourselves with a free Proof of Value

Agenda


• Collaboration/ownership risks– Inconsistency in project leadership

– Scope is loosely defined/ Requirement gathering is arbitrary

– Definition of success not clearly understood by stakeholders

– Global mandate lacks execution in specific zones

• Quality Risks– Missed opportunity for stakeholder perception alignment during various stages

– Big bang approach

– Unrealistic expectations from non-source enrichment

• Schedule Risks– Stretching of timelines due to delay in sign-off for key stages

– Rework due to incompatible requirements in different regions


Mistakes to Avoid – From over 12 years of delivering Global Material Data Quality Projects

Key factors to look for in a Material Data Quality partner:

• Industry expertise

• Intellectual Property

• Speed

• Accuracy

• Automation

• Business model

• Access to top management

• Corporate focus on material data quality


Selecting a Material Data Quality improvement partner






Agenda


• Determine POV Objectives and Scope

• # of Item Masters and Source Systems

• Select Data Sample

• Select Taxonomy & Attribute Templates

• Verdantis Processes Data

• Fully Classify POV data set

• Fully Cleanse a subset of data

• Non Source Enrich a subset of data

• Flag duplicates for processed Items

• On-site Review of Deliverables

• Data Analysis and Output

• Draft Budget Proposal

• Business Case Recommendations

Learn:

• Quality of Data

• Compatibility to automated approach

• Potential duplicate levels

• Estimated budget

• Recommended Scope & Resources

We can help: Verdantis Free Proof of Value


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Documents

Strategically manage Data Quality in an ERP rollout · Material Master ROI •Reduced inventory, Better reuse, Easier search •Less payment errors, de-duplicated repository Supplier