MDM implementation for Key retailers and wholesalers in Europe<br />Lessons learned<br />Ariel Aubry<br /><ul><li>EBC Busi...
Mail: Ariel.Aubry@edifixio.com</li></ul>September 2011<br />To Download this presentation, please visit our web site EBC B...
EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />Challenges of Information Ma...
Challenges of Information Management - Issues<br />EBC Business Consulting : MDM implementation for Key retailers and whol...
SKUs : 5 000  /  to 5 Millions
Stores : 1000s
Regions / Countries : 10s
Promotions : 1000s / year
Millions of hours spent yearly
Data is getting more complex
Prices
Distribution circuits
Product composition
Organization (WHS,POS,PD…)
Multiple Inbound and outbound channels
Multiple sources (vendor, datapool)
New channels, specific yet consistent
Mergers & Acquisitions</li></ul>An <br />Increasing<br />complexity<br />September 2011<br />
Challenges of Information Management - Benefits<br />EBC Business Consulting : MDM implementation for Key retailers and wh...
Consumer (Marketing, Environment)
Legal (Traceability)
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EBC Business Consulting - Lessons learned from successfully implementing mdm

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Increasing demand on business efficiency and increasing business complexity drive companies to deal daily with a growing amount of data, which needs to be processed instantly and seamlessly.

Information Management and Master Data Management becomes key to organize, control and leverage your reference data, so as to match the requirements of the departments in your Company.

This presentation details both the Challenges of Information Management as well as Best practices learned from successful engagement with major Retailers across Europe.

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Transcript of "EBC Business Consulting - Lessons learned from successfully implementing mdm"

  1. 1. MDM implementation for Key retailers and wholesalers in Europe<br />Lessons learned<br />Ariel Aubry<br /><ul><li>EBC Business Consulting - Partner
  2. 2. Mail: Ariel.Aubry@edifixio.com</li></ul>September 2011<br />To Download this presentation, please visit our web site EBC Business Consulting :<br /> - Blog – Here (Visit our blog)<br /> - Publication – Here (downlaod presentation)<br />
  3. 3. EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />Challenges of Information Management<br />Issues<br />Benefits<br />Solutions<br />MDM for Publishing Flow Optimization<br />MDM to optimize Business Partner Flows<br />MDM for Centralizing Data & Processes<br />Focus on Retail : <br />MDM For Centralizing Data & Processes <br />Typical Application Architecture<br />Comparing Custom, PIM and ERP implementation<br />Methodology and Main lessons<br />Implementing a Merchandise Repository is far from being just an IT project<br />Elements of attention – <br />Strategy & sponsoring<br />Governance & Scope<br />Architecture<br />Implementation & Change Management<br />MMain Lessons - Synthesis<br />September 2011<br />
  4. 4. Challenges of Information Management - Issues<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />3<br /><ul><li>Volumes increase
  5. 5. SKUs : 5 000 / to 5 Millions
  6. 6. Stores : 1000s
  7. 7. Regions / Countries : 10s
  8. 8. Promotions : 1000s / year
  9. 9. Millions of hours spent yearly
  10. 10. Data is getting more complex
  11. 11. Prices
  12. 12. Distribution circuits
  13. 13. Product composition
  14. 14. Organization (WHS,POS,PD…)
  15. 15. Multiple Inbound and outbound channels
  16. 16. Multiple sources (vendor, datapool)
  17. 17. New channels, specific yet consistent
  18. 18. Mergers & Acquisitions</li></ul>An <br />Increasing<br />complexity<br />September 2011<br />
  19. 19. Challenges of Information Management - Benefits<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />4<br /><ul><li>Information Demand increase
  20. 20. Consumer (Marketing, Environment)
  21. 21. Legal (Traceability)
  22. 22. Business Innovations (VMI)
  23. 23. Time to market Reduction
  24. 24. Shortened Product life cycles and acceleration of NPI
  25. 25. Delocalized production centers
  26. 26. JIT synchronization with production
  27. 27. Business Leadership
  28. 28. Business Innovations
  29. 29. Excellence in the Supply Chain
  30. 30. Large Offering
  31. 31. Improve Quality through Collaboration
  32. 32. Operational efficiency
  33. 33. Improve Service Level
  34. 34. Benchmark across regions/brand/competition
  35. 35. Reduce Operating Costs
  36. 36. Optimize resources allocation/rotation
  37. 37. Improve invoicing/payment</li></ul>An increased demand <br />from business <br />for operational efficiency<br />September 2011<br />
  38. 38. Lessons learned from successfully implementing MDM with key Retailers and wholesalers in Europe - Solutions<br />Master Data Management is meant to address the challenges of information management.<br />Three configurations emerge<br /><ul><li>MDM to optimize Publishing Flows
  39. 39. MDM to optimize Business Partner flows
  40. 40. MDM to optimize Internal Flows </li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />5<br />September 2011<br />
  41. 41. MDM for Publishing Flow Optimization<br />Publishing MDM(per market, country, brand, medium, customer segment, channel, etc)<br />ERPs (SAP, …)<br />Web<br />Technical Data<br />CDROM<br />PLM<br />ecatalogs<br />Legal Databases<br />Flyers<br />Marketing<br />Digital Asset Management<br />Paper<br />Other IS<br />Other IS<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />6<br />September 2011<br />
  42. 42. MDM to optimize Business Partner Flows<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />7<br />DataSync<br />MDM<br />Manufacturers<br />Retailer 1<br />Retailer …<br />Partners<br />Retailer N<br />Public Database<br />Web<br />Provider<br />Other IS<br />Other IS<br />September 2011<br />
  43. 43. MDM For Centralizing Data & Processes<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />8<br />Central Repositorydata and processes centralization,brand, country specifics, etc<br />Merchandising<br />System 1<br />Vendor<br />Merchandising System N<br />Legacy<br />Partner<br />Legal databases<br />Data Pool<br />Marketing<br />Public Database<br />Digital Asset Management<br />Other SI<br />Partner IS<br />September 2011<br />
  44. 44. Focus on Retail - MDM For Centralizing Data & Processes <br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />9<br />ERP<br />Listing Processes<br />CRM<br />Vendor<br />workflows<br />Data Quality<br />Merchandising<br />Data Pool GS<br />Productivity tools<br />POS<br />User roles and rights<br />Data Provider<br />Connectors<br />Tracking & RFID<br />ListingItems, Vendors, Organization, Classification, Pricing, Customer, etc<br />Other IS <br />PreListItems, Vendors<br />Datawarehouse<br />Ecommerce / catalogs<br />September 2011<br />
  45. 45. Focus on Retail - Typical Application Architecture<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />10<br />Listing Application<br />Item / Vendor / …<br />Offer<br />Construction & Mgt<br />Deals<br />Negotiation<br />…<br />Promotion Mgt<br />…<br />Vendor Portal<br />Sourcing<br />GDS<br />Pre Listing Application<br />Item / Vendor / …<br />Price Mgt & Optimization<br />Gestion <br />de Nomenclature<br />Referential<br />Item / Vendor / Trade Conditions / Locations / Classifications / Parameters<br />Supply chainLogistics, replenishment, warehouse Mgt<br />BusinessIntelligence<br />Accounting<br />Finance<br />Operations Management<br />…<br />September 2011<br />
  46. 46. ERP<br />Custom Development<br />PIM<br />Strengths<br /><ul><li>Built-in Consistency with Operational processes
  47. 47. Predefined data model and Business rules</li></ul>Strengths<br /><ul><li> Full ownership
  48. 48. Zero constraint
  49. 49. Ultimate Customization</li></ul>Strengths<br /><ul><li>Ease of implementation & evolution
  50. 50. IS Independent
  51. 51. Built-in “MDM functions”
  52. 52. Unlimited information enrichment</li></ul>Comparing Custom, PIM and ERP implementation<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />11<br />Weaknesses<br /><ul><li> Business User experience (GUI)
  53. 53. Performances for high volumes
  54. 54. Business Requirements definition
  55. 55. Solution limitations</li></ul>Weaknesses<br /><ul><li>Cost of ownership
  56. 56. Effort wasted on low level MDM
  57. 57. Maintenance issues
  58. 58. No Business Req. challenging
  59. 59. Blank page syndrome
  60. 60. Risk</li></ul>Weaknesses<br /><ul><li> Rigidity (cost and capacity)
  61. 61. No built-in MDM Function
  62. 62. MDM User experience (GUI)
  63. 63. Limited features (hierarchies, …)</li></ul>September 2011<br />
  64. 64. Methodology and Main lessons<br />A step by step methodology to:<br /><ul><li>Demonstrate quicks wins
  65. 65. Avoid “Boiling the Ocean”
  66. 66. Ensure gradual adoption
  67. 67. Lowering the risks
  68. 68. Increase ROI
  69. 69. Reduce time of delivery</li></ul>Defining at the same time a clear target roadmap:<br /><ul><li>Functional perimeter Short term/middle term
  70. 70. Organization
  71. 71. Ownership of data
  72. 72. Core system approach to be rolled out for multi countries/multi brands.
  73. 73. Technical fundamentals</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />12<br />September 2011<br />
  74. 74. Implementing a Merchandise Repository is far from being just an IT project<br />7 key Elements to Control before and during the Project<br /><ul><li>Business Strategy
  75. 75. Sponsoring
  76. 76. Governance
  77. 77. Scope
  78. 78. Architecture
  79. 79. Implementation
  80. 80. Change Management</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />13<br />September 2011<br />
  81. 81. Elements of attention – Strategy & sponsoring<br /><ul><li>Business Strategy
  82. 82. Position MDM with respect to the Company’s Business Strategy
  83. 83. … because nobody should do MDM for the hype
  84. 84. … because you should know your major focus at this stage (supplier negotiation, data quality, operational efficiency, etc.)
  85. 85. Identify an overall budget for the Operation
  86. 86. … because MDM will require to adapt your legacy and your organization more than you originally thought.
  87. 87. … Initiating a design to cost approach is therefore mandatory
  88. 88. Identify the expected Return on Investment, Key Drivers, KPI
  89. 89. … because from project kick off, each and every department will have terrific ideas for unplanned and unbudgeted new features, key to their business, but not on the MDM original Roadmap, nor aligned with the Company’s Business Strategy</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />14<br />September 2011<br />
  90. 90. Elements of attention – Strategy & sponsoring<br />Program Sponsoring <br /><ul><li>Identify One Sponsor at the highest level, fully dedicated
  91. 91. … because changing the way you manage your Reference Data impacts Roles and responsibilities across the Company, as well as for customers and suppliers. Arbitrage will be required at the highest level
  92. 92. Identify Program Manager and Core team
  93. 93. … because somebody needs to start working !
  94. 94. Communicate and assess overall perception
  95. 95. … because everybody will be impacted by the MDM initiative. Change Management should be started early on
  96. 96. Avoid effective leadership by operational managers
  97. 97. … because engaging in MDM is an opportunity to onboard new concepts and processes, not to just automate current data management practices</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />15<br />September 2011<br />
  98. 98. Elements of attention – Governance & Scope<br />Governance<br /><ul><li>Identify the ownership of the data
  99. 99. … because some data will be kept central, while some other data needs to be handled at the local (region, store, warehouse, country) level
  100. 100. Identify the organization and processes required
  101. 101. … because the point with MDM is precisely to redefine who does what with your data, when , in what sequence, etc.
  102. 102. Assess Change Management
  103. 103. … relating to the new organization, processes, and applications
  104. 104. Take for granted that you underestimated Data Migration and anticipate cleansing in Legacy
  105. 105. … because this is our conclusion after 30+ projects (incomplete data, duplicates, obsolete, etc)
  106. 106. … because your MDM initiative consist also in stricter quality controls, additional fields, new concepts, etc</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />16<br />September 2011<br />
  107. 107. Elements of attention – Governance & Scope<br /><ul><li>Scope
  108. 108. Identify short term / mid term / long term scope
  109. 109. … because you need to succeed on quick wins while setting a long term objective … because you need to communicate to business departments and onboard them at the right time
  110. 110. … because your business case depends on it
  111. 111. Cover Global issues
  112. 112. … because if you postpone critical analyses (such as item or supplier ID unification, price management, master/slave IS, etc), these topics we’ll haunt you and jeopardize the success of our initiative. Tackle all this early on
  113. 113. Prioritize to deliver rapidly and ensure momentum
  114. 114. … because due to their impact on systems, organizations and people, due to the hopes they generate, MDM project have more than any project a risk of getting stuck
  115. 115. Assess unplanned enhancements (GUI, etc.) versus cost and timeframe
  116. 116. … because business users will have every reason to require a user-friendly system for their daily tasks, but setting up custom GUI on MDM is always costly
  117. 117. Focus on the MDM expected value, not on a technical migration
  118. 118. … because otherwise you end up duplicating your legacy, with absolutely no added value for business</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />17<br />September 2011<br />
  119. 119. Elements of attention – Architecture<br />Architecture<br /><ul><li>Define as is and to be Information System Landscape
  120. 120. Define evolutions to current legacies, and their new responsibilities
  121. 121. … because legacy modification costs happened to be showstoppers on some projects (concepts, fields, etc.)
  122. 122. Prioritizeand implement evolutions to existing Information Systems
  123. 123. Define integration mechanisms and implement data flows
  124. 124. … because automating the sharing of data means new flows within your organization and your IS
  125. 125. Define and prepare data to migrate
  126. 126. Define and implement major processes and workflows
  127. 127. Estimate and follow key volumes (data and users)
  128. 128. Identify technical constraints
  129. 129. Define Service Level Agreement, per region, country, etc.
  130. 130. … because your MDM may endup critical for operational processes
  131. 131. Identify hardware, environments, infrastructure, operations requirements.
  132. 132. Identify maintenance and operating skills, per region, country, etc.
  133. 133. Onboard the Right technical Expertise</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />18<br />September 2011<br />
  134. 134. Elements of attention – Implementation & Change Management<br />Implementation<br /><ul><li>Identify major constraints (business deadlines, concurrent projects, resources availability, etc)
  135. 135. … because your MDM project will very likely end up being on the critical path of most of your portfolio projects
  136. 136. Select the solution best fitting the context (scope, technology, constraints)
  137. 137. … because some solutions are better for your specific requirements (collaborative, hub GUI, Volumes, etc)
  138. 138. Assess skills required, define team and assign roles and responsibilities
  139. 139. Define Deliverables, Q&A, Planning, tools, etc
  140. 140. Launch Implementation project</li></ul>Change Management<br /><ul><li>Communicate on the Change in the Organization and Processes before and during the Project
  141. 141. Make sure every Project participant is trained on the tool and its concept prior to the project start
  142. 142. Leverage the UAT phase to train the Users on both the tool and the processes.</li></ul>EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />19<br />September 2011<br />
  143. 143. Strong sponsorship<br />Global IT strategy & roadmap<br />Change Management<br />Business enabler<br />(New concepts enabler, Innovation engine)<br />Organizational Challenges<br />(MDM team and processes, skills)<br />IT challenges<br />(skills, technology and concepts)<br />Main Lessons - Synthesis<br />EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />20<br />September 2011<br />
  144. 144. EBC Business Consulting : MDM implementation for Key retailers and wholesalers in Europe<br />September 2011<br />

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