United Technologies, Hands On Reference Data Management For Corporate Finance And Beyond


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Presentation by United Technologies at the 8th MDM & Data Governance Summit New York

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United Technologies, Hands On Reference Data Management For Corporate Finance And Beyond

  1. 1. BEST  PRACTICES:     Hands  On  Reference  Data  Management   For  Corporate  Finance  And  Beyond   (Wally  Powell),  John  Nicoll-­‐SenM,  Larry  Keyser,  United  Technologies   Conrad  Chuang,  Orchestra  Networks     October  22,  2013   www.orchestranetworks.com                  @orchestramdm  
  2. 2. Agenda   ü  Quick  overview  of  reference  data   ü  Case  Study:  Legal  Data  Management  Challenges  at  United   Technologies   ü  Q&A     www.orchestranetworks.com                  @orchestramdm  
  3. 3. What  is  reference  data?   Reference  data  is  a  sub-­‐set  of  master  data  that  is  shared  or   connects  mulDple  master  data  domains.         CharacterisDcs     ü  FoundaDonal,  shared  between  domains   ü  LiIle/no  semanDc  overloading   ü  Two  flavors:  Private  and  Public   ü  Needed  in  both  operaDonal  and  analyDcal  use  cases     www.orchestranetworks.com                  @orchestramdm  
  4. 4. Reference Data Categories Multi-Domain RDM Use Cases Public (External) SemiPrivate? (Shared) Private (Internal) Countries & Subdivisions (FIPS10) Currencies (ISO 4217) Time Zones (ISO 8601) Industry Classification (NAICS, ISIC) Real-Time / Transactional RDM Use Cases Security Prices SWIFT BIC Codes (Payments) ICD-9/10 Codes (Healthcare) ACORD/ISO Codes (Insurance) Customized Public Reference Standards (e.g. customized D&B) Shared Private Data (Finance) Legal Entities Chart of Accounts Organizations Employees (i.e., much of HR & Finance Data) © 2012 The MDM Institute www.The-MDM-Institute.com Reference data required for transaction processing
  5. 5. How  master  data  domains  rely  upon  reference  data   Supply   Chain   Sourcing   Supply   Chain   OperaDons   ProducDon   MarkeDng   Sales/ MarkeDng   Sales   Overlay  FuncDons  (Finance,  HR,  GRC)   Cost/revenue  centers;   Corp  En00es/Divisions   Sales  territories,   Product  Mgmt   Contracts,  SLAs   HR   Finance   GRC   Private  RDM   Public  RDM   (Geographies,  Codes)   www.orchestranetworks.com                  @orchestramdm   5  
  6. 6. Reference  Data  Management  challenges   ü  Modeling   o  Business  rules/constraints  (on  values  and  relaDonships)   ü  Managing  RelaDonships     o  Between  domains   o  Between  versions  (past,  present  and  future)   ü  AdaptaDons/customizaDon  of  reference  data   ü  Governance  and  authoring   o  Subject  mater  experts  and  business  users  are  accountable!   o  Workflow,  approvals,  security   ü  IntegraDon  with  other  downstream  applicaDons/consumers   o  Access  (export/import)   o  DistribuDon   www.orchestranetworks.com                  @orchestramdm  
  7. 7. Managing  RelaYonships:  Public  to  private  mappings   Country  to  Official  Currencies   Country  to  Country  Group   Public  Reference  Data   Airport  to  Country   Airlines  to  Airport   AircraZ  to  on  route   Private  reference  data   www.orchestranetworks.com                  @orchestramdm  
  8. 8. AdaptaYons/customizaYon  of  Reference  Data   North  America     (According  to  Legal)   North  America   (According  to  Sales)   www.orchestranetworks.com                  @orchestramdm  
  9. 9. Managing Finance Reference Data at UTC (Wally Powell), John Nicoll-Senft & Larry Keyser 9
  10. 10. UNITED TECHNOLOGIES (UTC) OVERVIEW " MulDple  business  units   " 218,300  Employees   " 4,000  locaDons  in  71   countries   " 1,000+  legal  enDDes   " Conducts  business  in  about   180  countries   " 24th  largest  US  manufacturer   " 48th  largest  US  corporaDon   " 120th  largest  company  in  the   world   Building & Industrial Systems Aerospace 10
  11. 11. UTC OVERVIEW FY2012 11
  12. 12. THREE MAIN PROJECTS •  Supplier Management – “One Supplier” •  Vendor, Commodity Code, Supply Chain Org Structure (not finance!) •  Consolidated HFM •  Automate changes to HFM hierarchies (node changes, new entities, etc.) •  Tax Technology •  Integration between managerial, tax, legal entities (Not supply chain!) 12
  13. 13. Legal Entity Data Management Challenges 13
  14. 14. LEGAL ENTITY MANAGEMENT – WHY? " Issue Legal vs. Mgt vs. Tax entities Redundant data requests Significant manual effort to gather and reconcile data " Objective Single source of the truth Eliminate redundant data requests Focus organization on higher value tasks Enable legal entity financial reporting 14
  15. 15. CONSOLIDATED LEGAL ENTITY REPORTING CHALLENGES GEMS •  1,400 Legal Entities HFM •  7,000 Reporting Entities CORPTAX •  1,350 Int’l Tax Entities •  550 Domestic Tax Entities Mappings can be 1:1, 1:n or n:1 HFM has alternate hierarchies (roll-ups) and mappings e.g. Forecasting, Planning, Management performance calculations 15
  16. 16. TAX TECHNOLOGY APPLICATION Domains covered by the application: -  Financial (HFM) -  Legal (GEMS) -  Tax Compliance (CorpTax) -  Tax Planning (LongView) -  Real estate (BIG)
  17. 17. MANAGERIAL ENTITY (HFM) HFM metadata and relationships comes from BU HFM
  20. 20. GEMS WORKFLOW Distributed workflow Tasks distributed by function: Tax Technology, BU Tax Dept, Treasury Tabs can be hidden/shown based on permissions
  22. 22. FOREIGN TAX ENTITY Distributed Workflow: Tasks distributed by BU: Otis, UTAS, Pratt, CCS, Sikorsky & Foreign Corporate Tabs can be hidden/shown based on permissions
  24. 24. WHAT WE DID Reference Data Hub (EBX5) GEMS Legal Entities 1,400+ CORPTAX GEMS Int’l Tax Entities 1,350+ Dom Tax Entities 550+ HFM Mgmt. Entities 7.000+ Sikorsky Ledgers •  Governance for reference data, mappings, versions •  Phase I: 60+ CorpFin Users, 1 Admin/Dev, •  Phase II: Add tax reporting, real-estate SAP CCS Other CORPTAX Corporate UTAS JDE & SAP Otis JDE P&W SAP 24
  25. 25. SUPPLY CHAIN TRANSFORMATION Master Data Management Dashboards/ Reports BU ERP Systems Spreadsheets/ other sources of master data EBX maintains the golden record/single source of truth for commodities, suppliers and organizational structure 25
  26. 26. LESSONS LEARNED •  Get buy in from your business partners •  Easy to adopt technology enables business user self service and facilitates adoption of workflows •  Coexist with tools commonly used in your user community. MDM is gold standard, but we support imports/exports from/to Excel •  Don’t over engineer/over-plan use agile methods •  Getting people to use tool as early as possible provides feedback into the development process and builds support •  Easy-to-learn technology gets you productive more quickly •  Don’t boil the ocean •  Focus on projects that will deliverer value quickly •  Adopt technology that can be easily adjusted/customized to support changing business needs 26
  27. 27. Wally Powell United Technologies Corporation Walden.Powell@utc.com Larry Keyser United Technologies Corporation larry.keyser@utc.com John Nicoll-Senft United Technologies Corporation John.nicoll-senft@utc.com Conrad Chuang Orchestra Networks conrad.chuang@orchestranetworks.com