Acolyance: Applying MDM to Drive ERP Success & ROI

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Acolyance (€522M+revenues) is a leading French agriculture and wine cooperative serving a network of 3,500 agriculture members and 7,000 wine producers. Management is very focused on innovation and is …

Acolyance (€522M+revenues) is a leading French agriculture and wine cooperative serving a network of 3,500 agriculture members and 7,000 wine producers. Management is very focused on innovation and is preparing a large-scale transformation for 2014 wherein ERP will be deployed to support most of business processes (finance, accounting, harvest, retailing, procurement, sales, …). Unlike traditional viewpoints with ERP systems as the solution to manage all master data within their perimeter because they were intended to be *the* company core system, Acolyance has decided to make its master data program a prerequisite of its ERP implementation. By having an MDM approach synchronized with the ERP strategy, Acolyance is convinced that ERP will be able to concentrate on its core business processes and to deliver quicker and better. Additionally, MDM enlarges the ERP scope by facilitating collaboration with trading partners. In this session, topics to be discussed include:

- Applying MDM as a key approach to secure ERP implementation projects
- Leveraging MDM to fill in functional weaknesses of ERP systems
- Using MDM to facilitate the update cycle of master data that cannot be updated directly in production systems without ERP customization

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  • 1. ACOLYANCE – MDM Summit Applying MDM to drive ERP Success and ROI Date : 20 May 2014 Supported by
  • 2. Introduction Contacts Alaa HOBLOS System Integrator & MDM Advisory Sébastien MENUS MDM Project Leader Applying MDM to drive ERP Success and ROI
  • 3. 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 Applying MDM to drive ERP Success and ROI
  • 4. 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 Applying MDM to drive ERP Success and ROI
  • 5. 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 Applying MDM to drive ERP Success and ROI
  • 6. 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 Applying MDM to drive ERP Success and ROI
  • 7. 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 + Finance 2. Arable Services 3. Cereal Seeds activity is out of scope Applying MDM to drive ERP Success and ROI
  • 8. 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 Applying MDM to drive ERP Success and ROI
  • 9. 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 Applying MDM to drive ERP Success and ROI
  • 10. 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 Applying MDM to drive ERP Success and ROI
  • 11. 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 Business Case 1: Party Third party modeling Third party Farmer Supplier Legal Entity 2 . . . Is Within Legal Entity 1 Legal Entity 2 Legal Entity N Within Retail customer Within Farmer Retail customer Supplier Applying MDM to drive ERP Success and ROI MDM Project Current Target
  • 12. Current Target Business Case 1: Party 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 Applying MDM to drive ERP Success and ROI MDM Project
  • 13. 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 Applying MDM to drive ERP Success and ROI
  • 14. Business Case 1: Party Synthesis Applying MDM to drive ERP Success and ROI 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
  • 15. 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 Applying MDM to drive ERP Success and ROI
  • 16. 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 Retail Farmer Supply & services Applying MDM to drive ERP Success and ROI
  • 17. Business Case 2: Product The ERP Project brings its own challenges Applying MDM to drive ERP Success and ROI 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?
  • 18. Business Case 2: Product Possible architecture for Product MDM Applying MDM to drive ERP Success and ROI 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 MasterERP Master
  • 19. Business Case 2: Product Synthesis: Why did we chose MDM as Master? Applying MDM to drive ERP Success and ROI 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) Benefits for ERP Project 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
  • 20. Business Case 2: Product MDM as ERP bumper Applying MDM to drive ERP Success and ROI 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 Eurosem GVSE / COFAC BI ERP Nomad Agro Phytodata Eurosem GVSE / COFAC BI ERP Nomad Agro Phytodata Eurosem GVSE / COFAC BI The ERP has to take into account the constraints of other applications.
  • 21. Business Case 2: Product MDM as ERP bumper Applying MDM to drive ERP Success and ROI 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 Eurosem GVSE / COFAC BI ERP Nomad Agro Phytodata Eurosem GVSE / COFAC BI MDM ERP Nomad Agro Phytodata Eurosem GVSE / 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
  • 22. 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 Applying MDM to drive ERP Success and ROI
  • 23. 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 Applying MDM to drive ERP Success and ROI
  • 24. Business Case 3: Reference Data Deployment Strategy Be Pragmatic ! Applying MDM to drive ERP Success and ROI Consolidate referenced data of each domain Leverage XREF Administration to enrich the repository Move from consolidation mode to centralization mode
  • 25. Business Case 3: Reference Data Synthesis Applying MDM to drive ERP Success and ROI Bring consistency with existing IT system for accurate reporting Facilitate integration with existing IT Systems (XREF) Involve business users in managing reference data Benefits for ERP Project 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
  • 26. 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 Applying MDM to drive ERP Success and ROI
  • 27. 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 Applying MDM to drive ERP Success and ROI
  • 28. 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 as an ERP Success Driver MDM initiative Key Benefits to ERP Programs Applying MDM to drive ERP Success and ROI 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
  • 29. 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 MDM as an ERP Success Driver MDM initiative Key Benefits to ERP Programs Applying MDM to drive ERP Success and ROI 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
  • 30. 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 MDM as an ERP Success Driver MDM initiative Key Benefits to ERP Programs Applying MDM to drive ERP Success and ROI 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
  • 31. MDM as an ERP Success Driver Key Benefits Synthesis Applying MDM to drive ERP Success and ROI Data Governance Functional scope Project team maturity Risk mitigation Third party collaboration External growth 1 2 3 4 5 6 ERP Project
  • 32. 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 Applying MDM to drive ERP Success and ROI
  • 33. 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 Applying MDM to drive ERP Success and ROI
  • 34. Feedbacks on our MDM Project 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 Applying MDM to drive ERP Success and ROI
  • 35. Feedbacks on our MDM Project Key Success Factors Applying MDM to drive ERP Success and ROI 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
  • 36. Feedbacks on our MDM Project Key Success Factor for ERP & MDM program Applying MDM to drive ERP Success and ROI 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
  • 37. Applying MDM to drive ERP Success and ROI Thank You! We will be at Orchestra Networks booth to answer your questions!