DDMA Dag van de Datakwaliteit 2011 - Presentatie Philips Electronics Nederland

Master Data Management

Strategy put into action

November 1, 2011

Willem Albers

Program Manager MDMPhilips Corporate Functions

Introduction - SpeakersWho is presenting to you ?

John Wenmakers

Execution Manager MDMPhilips IT Applications

Philips, November 1, 2011 2

An Introduction to PhilipsAn Introduction to Philips


26%

39%

A strong diversified industrial group leading in health and well-being

“…a global company of leading businesses creating value with meaningful innovations that

Founded in 1891Headquartered in Amsterdam, Netherlands

Sales of €22.3 billion in 20101

Growth Markets32% of 2010 sales generated in

Who we are Our businesses Our mission

2010

Philips, November 1, 2011

35%

innovations that improve people’s health and well-being.”

32% of 2010 sales generated in growth markets

Globally recognized brand (world top 50)Our brand value doubled to $8.7bn since 20042

120,000 employeesSales and service outlets in over 100 countries

€1.5 billion investment in R&D, 7% of sales

Healthcare

Lighting

Consumer Lifestyle

2Source: Interbrand1Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation4

Philips and Master DataPhilips and Master Data


Seamless End2End processesExecute with high speed and excellence through effective End2Endcustomer value chains

Market to Order

Idea to Market

Order toCash

Develops products and services to meet customers desires and feedback

offers and presents these in the most appealing way

and delivers exactly on time to meet customers demands


customers desires and feedback appealing way customers demands

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Transactions rely on High Quality DataA huge amount of transactions is running through our systems

Market to Order

Idea to Market

Order toCash





Transactions depending on business relevant, consistent, accurate, timely available, unique, complete

Master Data


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Examples of potential impact of poor data qualityFaulty data impacts sales, customer satisfaction and operation excellence

Market to Order

Idea to Market

Order toCash






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A structured approach moving forwardMDM improvements as a program, using business initiatives as carrier

Market to Order

Idea to Market

Order toCash






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

Key conditions for successOur learning's - based on experiences and outside in


� 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

Strategy put into action Strategy put into action


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 :

MDM4BP ….a true global projectSome key figures and achievements …


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

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A fully integrated cleansing environmentAutomated initial and delta processing


Current consolidation scenario Data processing (based on example)Steps of the cleansing & matching processAutomated initial and delta processing

Golden repository


Communication is key for success Reporting stakeholders via newsletters, movies, social media, …


Results (specimen) of our cleansing exerciseWe are not only cleaning, we also check consistency and add missing fields.


Specimen of metrics KPI’s are used to drive improvements, closing the loop (PDCA)


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

Lessons learnedTakeaways


� 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

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Questions and Answers


Tremendous amount of parameters to manageLooking for the perfect balance …
