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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 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
Citation preview
ACOLYANCE – MDM Summit
Applying MDM to drive ERP Success and ROI
Date : 20 May 2014 Supported by
Introduction
Contacts
Alaa HOBLOSSystem Integrator & MDM Advisory
Sébastien MENUSMDM Project Leader
Applying MDM to drive ERP Success and ROI
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
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
� 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
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
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 + Finance2. Arable Services3. Cereal
� Seeds activity is out of scope
Applying MDM to drive ERP Success and ROI
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
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
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
� 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
SupplierLegal 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
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
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
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
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
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 RetailFarmer
Supply & services
Applying MDM to drive ERP Success and ROI
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?
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 Master ERP Master
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
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
EurosemGVSE /
COFAC
BI
ERP
Nomad
AgroPhytodata
EurosemGVSE /
COFAC
BI
ERP
Nomad
AgroPhytodata
EurosemGVSE /
COFAC
BI
The ERP has to take into account the constraints of other applications.
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
EurosemGVSE /
COFAC
BI
ERP
Nomad
AgroPhytodata
EurosemGVSE /
COFAC
BI
MDM
ERP
Nomad
AgroPhytodata
EurosemGVSE /
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Applying MDM to drive ERP Success and ROI
Thank You!
We will be at Orchestra Networks booth to answer your questions!