Acolyance: Applying MDM to Drive ERP Success & ROI

ACOLYANCE – MDM Summit

Applying MDM to drive ERP Success and ROI

Date : 20 May 2014 Supported by

Introduction

Contacts

Alaa HOBLOSSystem Integrator & MDM Advisory

Sébastien MENUSMDM Project Leader


Agenda

1 Acolyance Presentation & Context

2 Business Case 1: Party

3 Business Case 2: Product

4 Business Case 3: Reference Data

5 MDM as an ERP Success driver

6 Feedbacks on our MDM Project


Introduction

Acolyance in few words

545 M€ Revenue

3 500 Farmers & members

1 500 000 ton collected

450 employees

90 silos & 35 stores

Buy & Sell Cereals

Supply & Services

Seeds

Retail

We are an Agricultural Cooperative Company located in the East of France (Champagne area)

Our activities Key features


� Prepare Acolyance Development

� Improve Quality Of Service to Members

� Attract new members by proposing adapted offering

� Dissociate Farmer supply services & Retail activities to bring agility

� Follow business regulation changes

Introduction

Acolyance challenges

Business

� Provide appropriate applications for each activity

� Rationalize Acolyance applicative portfolio

� Build a flexible framework to support Acolyance development

� Secure operation of key applications

IT


Transform IT Team

Organization

Introduction

Our IS Strategy

Replace Obsolete

Application

Replace Office based (Excel,

Word, …)

Redesign processes to

ease collaboration and improve productivity

Increase our IT agility

� Each step must focus on bringing benefits to users daily work


Introduction

Our IT Transformation Roadmap

MDM

1

� Build multi-domain framework

� Start with Party Data

Middleware

2

� Insource competencies

� Start with parties master data integration

ERP

3

� Progressive deployment Strategy:

1. Retail + Finance2. Arable Services3. Cereal

� Seeds activity is out of scope


Introduction

Focus on Master Data

• Data are managed in each system. No real master

• Data not regularly updated• No formal processes• Numerous rekey• Poor security management

Current Situation

• Ease data exchange & integration

• Increase data quality• Enforce data security• Gain operational productivity

Stakes• Data are managed centrally

with MDM as Master• Data quality is monitored• Data Governance Processes

spread & monitored

Target situation


Agenda








Business Case 1: Party

Context

• Context

– Low data quality : missing business rules in business applications

– Very distributed and shared data

– No semantic alignment

– Lack of productivity (manual update into multiple systems)

– A central data administration team is in place (keyboarding work)

– History of merging acquisition with other companies.

• heterogeneous IT system that manages parties

• Main stakes

– Have a unique shared version of Parties at a central level

– Gain in productivity

– Enhance data quality

– Be prepared for coming merging and acquisition


� Each third party can have different activities with Acolyance� Each activity can be done within multiple legal entities� One legal entity can be related to different roles of the same third party

i


Third party modeling

Third party Farmer

SupplierLegal Entity

2

.

.

.

Is Within Legal Entity 1

Legal Entity 2

Legal Entity N

Within

Retail customer

Within

Farmer Retail customer

Supplier


MDM Project

Current Target

Current Target


Third party applicative architecture

NAIA Elodie

BIEurosem

Business requesters

Central admin team

Business teams

Business teams

Excel sheets

Excel sheets

MDM

NAIA

Elodie

BI

Eurosem

ERP


MDM Project

Business Case 1 : Party

MDM deployment strategy main steps

• Build MDM first release quickly then enrich with business maturity improvement

• 3 steps to prepare data migration• 2 steps to deploy new organization & processes• Party MDM will be ready before ERP first deadline



Synthesis


� Single source system for Parties master data (Migration + Run mode)

� No worries about data quality as it is already enhanced with MDM

� Ease ERP integration with the rest of the IT system

� Use the MDM to prepare bigger change with ERP

Benefits for ERP Project

� Central admin team up & running

� Business and IT drive the project together

Key Success Factor

Agenda








Business Case 2: Product

Current Context

• Each business activity has its own silo on organizational and applicative levels

• Lack of communication between silos– Seeds, Cereals and Farmer supplies share product data– Few shared product between Retail and Farmer Supplies & Services

• No unified business classification– impact on reporting

• A huge number of suppliers for Retail and farmer Supplies & Services– Opportunity to have a pre-referencing process

• No dedicated organization in any business activity for data management

• Low data quality level

Cereals Seeds RetailFarmer

Supply & services



The ERP Project brings its own challenges


ERP does not cover all Acolyance activities

How to insure Seeds activity communication with ERP based activities?

Three Years transformation program

How to secure business processes continuity?

Recasting of Business Process & Organization across Business

services

How to insure functional coordination between activities?

?Master data Management appeared to be a hot topic for the ERP Project

2 sensitive questions raised:

� Could we manage Product data within ERP?

� Do we really need to deploy MDM on Products?


Possible architecture for Product MDM


� One system for business users� Leverage Product data model

embedded in the ERP

� Process for data management� Version management� Toolbox for business rules� Built-in interfaces for data

acquisition and distribution

MDM Master ERP Master


Synthesis: Why did we chose MDM as Master?


� Enforce data governance initiative on top of each activity outside ERP (Orga+ Process + tool)

� Bring dedicated project organization to work on Product Master (global business glossary, design, data migration, …)

� Mitigate risk by avoid ERP to extend its functional perimeter (data management processes, business rules, applicative interfaces)

� Loose coupling with other systems on Master Data (next slide for details)


� Need to define an organization to administrate Product data� Define a global program governance on top of MDM & ERP initiatives to

insure consistency & decrease waist of time

Key Success Factor


MDM as ERP bumper


The MDM repository contributes to achieve ERP deployment and to secure its run mode.

ERP

Nomad

Agro

The ERP implements its core model

according to target vision : Target Data

Model, target business processes…

with some specific constraints

Phytodata

EurosemGVSE /

COFAC

BI

ERP

Nomad

AgroPhytodata

EurosemGVSE /

COFAC

BI

ERP

Nomad

AgroPhytodata

EurosemGVSE /

COFAC

BI

The ERP has to take into account the constraints of other applications.


MDM as ERP bumper


The MDM repository contributes to achieve ERP deployment and to secure its run mode.

MDM

ERP

Nomad

Agro

The ERP implements its core model

according to target vision : Target Data

Model, target business processes…

Phytodata

EurosemGVSE /

COFAC

BI

ERP

Nomad

AgroPhytodata

EurosemGVSE /

COFAC

BI

MDM

ERP

Nomad

AgroPhytodata

EurosemGVSE /

COFAC

BI

MDM

The ERP is safe from the impact of taking into account the constraints of other applications.

The MDM repository plays the role of a bumper that protects the ERP

Agenda








Business Case 3: Reference Data

Current Context

• Existing context

– ERP Project: recasting business processes and enlightening reference data

– Existing MDM initiative

– Inconsistency of reference data leads to Business transaction failure and irrelevant reporting

– Start of the middleware initiative to improve application interfaces monitoring

• Main stakes

– Solve applicative interfaces and reporting issues and recover trust of business users

– Ease X-reference management and usage

– Get business users to be actively involved in maintaining reference data



Deployment Strategy

Be Pragmatic !


Consolidate referenced data of each domain

Leverage XREF Administration to

enrich the repository

Move from consolidation

mode to centralization

mode


Synthesis


� Bring consistency with existing IT system for accurate reporting

� Facilitate integration with existing IT Systems (XREF)

� Involve business users in managing reference data


� Have a Technology able to share Reference Data with Business domain

� Define responsibilities over reference data

� Define efficient X-REF administration process between MDM & Middleware

Key Success Factor

Agenda








MDM as an ERP Success Driver

Main Master data for an ERP Project

Employees� Having a unique base for

employees / services providers and temporary workers

� Authorization management

Suppliers� Centralized process for

suppliers creation� Enhance purchasing reporting� Include suppliers in the

management of their data

Product� Catalog definition� Classification standardization� Pre-referencing process for

suppliers articles

Customers� Standardization of billing and

delivery addresses� Enhance the monitoring of

liabilities� Centralized process for creation

and updates

Chart of Accounts� Define group CoA and local

Legal Entity� Centralized process for data

creation and updates

Structure� Structure data management,

geographical and juridical data of entity

� Share reference data within the IT system


Will ERP Project be able to cover every business requirements to manage Master Data ?

� Define business glossaries & classifications� Identify source systems & define

collaboration procedures� Define data quality stakes & objectives &

roadmap� Go beyond ERP borders to insure a global

business coverage� Concentrate energy & time on master data


MDM initiative Key Benefits to ERP Programs


Data Governance

ERP system is Process centric where MDM system is Data centric…

� Enhance ERP standard capabilities with true data centric functionalities

� Do not bring not relevant information & business rules into the ERP

� Improve data quality continuously with no impact on ERP

� Flexibly update data model with minimum impact on ERP

� Ease cross application reporting

Functional scope

Are you sure ERP project has planned to allocate enough workforce to Master Data?

� Enhance your team maturity with MDM: get them prepared to ERP workshops

� Benefit from existing MDM organization to get answers about data and already defined transversal roles




Project team maturity

Consider highly sensitive topics from the beginning of the ERP Project

� Prevent ERP project from having to deal with other system master data constraints

� Prepare master data migration� Ease integration with existing IT system &

deployment phase� Guarantee semantic alignment between

ERP and existing system� Anticipate constraints related to ERP data � Prepare X-references

Risk Mitigation

Because Third Parties have their own Master Data …

� Let external partners update their own data� Pre-referencing their product

� Ease compliance with regulation constraints and facilitate reporting to control agency




Third-Parties collaboration

Do you have to wait to deploy your ERP to a new structure to be able to leverage its assets?

� New activities and new product catalogs� New customers database� …

Facilitate external growth


Key Benefits Synthesis


Data Governance

Functional scope

Project team maturity

Risk mitigation

Third party collaboration

External growth

1

2

3

4

5

6

ERP Project

Agenda








Feedbacks on our MDM Project

Efficient partnerships

MDM Software

– Leading Master & Reference Data Management vendor

– True Multi-Domain in a single tool!

– Full web

– Close support team

Software Integration & Data Governance Advisory

– Strong experience & references

– Dynamic & reliable support

– Pragmatic approach

– Preferred partner of Orchestra Networks



The good approach

Because business people do not have much time …

… we decided to adopt a pragmatic & iterative approach to:

– Have reasonable objectives

– Short timeframes

– Bring value quickly

– Let our team gain in maturity

Our partners helped us to succeed by:

– Using an iterative design phase

– Leveraging EBX flexibility to facilitate key-user understanding & adoption by build mock-ups

– Limiting the number of deliverables and shorten decision processes

Data model

Creation & update

processes

Quality processes

User Interfaces

Applicative interfaces

Security & Administr

ation



Key Success Factors


Because MDM project are not like usual software enablement project, some key points need to be well prepare to succeed:

Start by scoping your project

Define reasonable objectives

Anticipate data migration

Consider Applicative Interfaces

Prepare your organization to use it

Design a solution framework to ease next steps

1

2

3

4

5

6


Key Success Factor for ERP & MDM program


Address as a program, not as several projects1

Change Management2

Data migration3

Appropriate sizing & organization of IT Team4

MDM is not just a tool, it’s about having a strategy for master data management across the IT system5


Thank You!

We will be at Orchestra Networks booth to answer your questions!