The document outlines Philips' master data management strategy, detailing its importance for executing high-quality customer value chains and the impact of poor data on sales and customer satisfaction. Key success factors include executive sponsorship, integration with business transformation, and clear ownership of data elements. The project resulted in a consolidated global master data repository and highlighted the need for effective communication and resource planning throughout the process.

1. Master Data Management
Strategy put into action
November 1, 2011

2. Introduction - Speakers
Who is presenting to you ?
Willem Albers John Wenmakers
Program Manager MDM Execution Manager MDM
Philips Corporate Functions Philips IT Applications
Philips, November 1, 2011 2

3. An Introduction to Philips
Philips, November 1, 2011 3

4. A strong diversified industrial group leading in
health and well-being
Who we are Our businesses Our mission
Founded in 1891
Headquartered in Amsterdam,
“…a global company
Netherlands of leading
26% businesses creating
Sales of €22.3 billion in 20101
39% value with
Growth Markets 2010 meaningful
32% of 2010 sales generated in innovations that
growth markets
improve people’s
Globally recognized brand 35% health and well-
(world top 50) being.”
Our brand value doubled to
$8.7bn since 20042
Healthcare
120,000 employees
Lighting
Sales and service outlets in over
100 countries
Consumer Lifestyle
€1.5 billion investment in R&D,
7% of sales
1Note 2
- All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation Source: Interbrand
Philips, November 1, 2011 4

5. Philips and Master Data
Philips, November 1, 2011 5

6. Seamless End2End processes
Execute with high speed and excellence through effective End2End
customer value chains
Idea to Market to Order to
Market Order Cash
Develops products and services to meet offers and presents these in the most and delivers exactly on time to meet
customers desires and feedback appealing way customers demands
Philips, November 1, 2011 6

7. Transactions rely on High Quality Data
A huge amount of transactions is running through our systems
Idea to Market to Order to
Market Order Cash
Develops products and services to meet offers and presents these in the most and delivers exactly on time to meet
customers desires and feedback appealing way customers demands
Transactions depending on
business relevant, consistent, accurate, timely available, unique, complete
Master Data
Philips, November 1, 2011 7

8. Examples of potential impact of poor data quality
Faulty data impacts sales, customer satisfaction and operation excellence
Idea to Market to Order to
Market Order Cash
Develops products and services to meet offers and presents these in the most and delivers exactly on time to meet
customers desires and feedback appealing way customers demands
Philips, November 1, 2011 8

9. A structured approach moving forward
MDM improvements as a program, using business initiatives as carrier
Idea to Market to Order to
Market Order Cash
Develops products and services to meet offers and presents these in the most and delivers exactly on time to meet
customers desires and feedback appealing way customers demands
Philips, November 1, 2011 9

10. Key conditions for success
Our learning's - based on experiences and outside in
Business and Governance
Organize executive sponsorship and strong governance, secure
(management) commitment on all levels
Make sure the MDM program is connected to business
transformation programs, business must be in the driver seat
Define clear ownership for data elements
Define clear roles and responsibilities
Identify, activate and enable your MDM network
Define expert teams integrating Business, DM and IT
Strategy and Approach
Find the sweet spot, harmonize and standardize only where it
makes sense, don’t overact
Think big, start small, show success and scale fast
Recognize and accept that MDM is a multi year data journey
Balance parallel transformation activities
Perseverance
Philips, November 1, 2011 10

11. Strategy put into action
Philips, November 1, 2011 11

12. MDM4BP ….a true global project
Some key figures and achievements …
During the project :
We analyzed roughly 1.5 Million Business Partners (Vendors and
Customers)
Covering more than 220 Countries
With the help of the regional and local Master Data Community
Which resulted in :
A consolidated and cleansed Global Master Data repository
A fully integrated cleansing environment
Delta processing, coordinated by a new defined standing organization
Interfaces to our surviving ERP kernels, One BI environment and CRM
solutions
Multiple reporting functionalities and KPI’s
Covering Multi Languages and double byte
Philips, November 1, 2011 12

13. A fully integrated cleansing environment
Automated initial and delta processing
Philips, November 1, 2011 13

14. Steps of the cleansing & matching process
Current consolidation scenario
Automated initial and delta processing example)
Data processing (based on
Golden repository
Philips, November 1, 2011 14

15. Communication is key for success
Reporting stakeholders via newsletters, movies, social media, …
Philips, November 1, 2011 15

16. Results (specimen) of our cleansing exercise
We are not only cleaning, we also check consistency and add missing fields.
Philips, November 1, 2011 16

17. Specimen of metrics
KPI’s are used to drive improvements, closing the loop (PDCA)
Philips, November 1, 2011 17

18. Lessons learned
Takeaways
Project Organization
Communication to stakeholders is key for success
Plan your resources, knowledge is scares
Take care of business change management
Project Approach
Define a MDM IT reference architecture and a roadmap
Pilot one country to understand the full E2E process
Put effort in the validation, standardization and completion
Business validation session, needed to validate and agree
Use 80/20 rule when defining cleansing rules
Using technology to the full extend leads to the unexpected
Store your source data in your central repository as well
Standardizing COMPANY data is challenging
Cluster countries instead of cleansing country by country
Philips, November 1, 2011 18

19. Questions and Answers
Philips, November 1, 2011

21. Tremendous amount of parameters to manage
Looking for the perfect balance …
Philips, November 1, 2011 21