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MDM for the Manufacturing and High-Tech Industry

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  1. MDM for the Manufacturing and High-Tech Industry Name Title

  2. Agenda Why MDM critical for Manufacturing Industry? Oracle MDM Solution and Use Cases for Mfg Case Studies of Mfg Industry Leaders 2

  3. Master Data Mgmt Mgmt At-a-Glance Transform & Govern Synchronize Extract & Load • Capture all updatesinto central master • Push updates to all linked applications • Link to 3rd party and legacy applications • Import data intoa centralizeddata model • Identify and resolve duplicates and errors • Enrich datawith external information Publish • Create business reports and other documents What is Master Data? • Objects upon which transactions are executed • Application-specific data remains federated • Dimensions around which analysis is done What is Master Data Governance? Framework that specifies decision rights and accountability on the data and all data-related processes

  4. “How can I enable innovation the next generation products, to drive profitable new revenue growth?” Innovation Customer-Centric Business “How can I improve customer satisfaction, reduce churn and maximize customer lifetime value?” “How can I reduce cost and improve control across the business?” Cost Reduction “How can I ensure compliance to government and industry regulations and manage risk ?” Governance and Compliance Challenges in Manufacturing and Hi-Tech“It’s all about competition …”

  5. TDWI Research Master Data Management: Consensus-Driven Data Definitions for Cross-Application Consistency, Philip Russom, Sr. Manager of Research And Services, TDWI What Works, Volume 22

  6. As-Is Enterprise Architecture of Mfg Companies • Islands of Data Created by: • Mergers and Acquisitions • Going Global • Rushing to Market • Departmental Priorities and Politics • Best-of-Breed Applications • IT Quality Gaps Occurring from: • Not able to meet business needs • Not able to meet Supplier / Customer Mandates (e.g., GDSN*) • Product data quality issues • Isolated Business Processes “70% of the organizations surveyed admit to making short-sighted IT decisions to meet their users’ immediate needs.” – IT Spending and Demand Survey *Global Data Synchronization Network CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

  7. CRM SCM FS ERP CRM PLM FS ERP CRM FS ERP FS SCM CRM CRM ERP SCM PLM The Enterprise Today – Fragmented Data • Islands of Data Created by: • Mergers and Acquisitions • Going Global • Rushing to Market • Departmental Priorities and Politics • Best-of-Breed Applications • IT Quality Gaps Occurring from: • Not able to meet business needs • Not able to meet Supplier / Customer Mandates (e.g., GDSN*) • Product data quality issues • Isolated Business Processes “70% of the organizations surveyed admit to making short-sighted IT decisions to meet their users’ immediate needs.” – IT Spending and Demand Survey

  8. Web site Fusion Apps Call Center SFA SFA Partner Fusion Apps ERP 1 ERP 1 Legacy Legacy SCM SCM HR HR Why do you need to treat product master data differently? Master data is in constant state of flux be it Product or Customer Master data is fragmented across application silos Master data has to be dealt with at every project Ignoring data mgt impacts ability to deliver key enterprise functions

  9. Lack of MDM Creates Challenges in Every Functional Area R&D and Operations Customer Service • Ineffective Cross-sell/Up-sell • Lower call center productivity • Increased marketing costs • Weaker penetration in channels • Delays in new product introductions • Increased sales order error • Redundant sourcing and mfg costs • Mediocre campaign response rate Risk, Compliance Management Increased IT Agility • Heightened credit risk costs • Costly adherence to regulatory standards • Potential non-compliance risk • Likely report generation costs • Increased integration costs • Exponential Resource consumption • Proliferation on problems across multiple applications • Disconnected processes

  10. Research Data “Data quality problems cost North American businesses more than $600B a year.” -- The Data Warehousing Institute (TDWI) “…recent study cited poor data qualityas the biggest inhibitor to successful CRM implementations…” “Only 30% of BI/DW implementations fully succeed. The top two reasons for failure? Budget constraints and data quality.” “Data integration and data qualityare fundamentalprerequisites for the successful implementation of enterprise applications, such as CRM, SCM, and ERP.”” “A manufacturer can expect to save from $800,000 to $1.2 million for every $1 billion in sales by achieving data sync.”

  11. To-Be Enterprise Architecture of Mfg Companies Web site Call Center Fusion Apps SFA Partner Middleware HR SCM Fusion Apps ERP 1 Legacy MDM provides the ability to… • Consolidate/Federate master & shared information into one place • Cleanse and Enrich data centrally • Distributedata as a single point of truth as a service to consuming applications, enterprise business processes and decision support systems ETL Real-time / near real-time Master Data BI/DW MDM Real-time / near real-time Master Data ETL

  12. Gartner Maturity Model

  13. Agenda Why MDM critical for Manufacturing Industry? Oracle MDM Solution and Use Cases for Mfg Case Studies of Mfg Industry Leaders Detailed Case Study of 13

  14. EBS SAP Custom Apps External Apps Oracle Enterprise Master Data ManagementThe most complete MDM offering in the market today Data Governance Operational Systems Analytical Systems Analytical MDM Apps Operational MDM Apps Dashboards Siebel DW Customer Supplier Product Financial Analytical Site BI &Datamarts PeopleSoft Planning Oracle / Hyperion Data Relationship Management JDE Oracle Customer Hub Oracle Product Hub Oracle Site Hub Financial Consolidation Application Integration Architecture Budgeting Oracle Fusion Middleware

  15. Siebel Siebel EBS EBS SAP SAP JDE JDE PeopleSoft PeopleSoft Custom Apps Custom Apps Other BI Key Components of Oracle Hub ProductsThe source of clean data for your enterprise Trusted Master Data • Consolidate & maintain a unique, complete and accurate master information across the enterprise for customer, supplier, employee, product, asset, site & financials data • Distributes this information as a single point of truth to all operational & analytical applications just in time

  16. Change Management Catalog Admin& Security Profile & Correct Events &Policies Import Workbench Access& Search TrustedMaster Data Publish &Subscribe Identification& Cross-Reference Items Customers Suppliers Attributes Documents … Registry Source DataHistory Transports &Connectors Blended Record Reporting Standardize Validate Match &De-Duplicate Parse Enrich MDM Solution Components

  17. Oracle Master Data Mgmt : Trusted Master Data Model Master TrustedProduct Data Master TrustedCustomer Data Attributes Policies Trading Partners Catalogs Documents Locations Relationships Configurations Party Roles & Relationships Related Data Entities Vertical Variants Govern Trusted Master Data Share Consolidate • UI based extensible and configurable data model, UI and processes • Supports all business models and industries • Provides localizations for multiple geographies (languages, units of measure, currencies) Cleanse

  18. PackConfigurations Item-SupplierRelationships Alternate Hierarchies Item-LocationRelationships Operational, Custom,and GDS Attributes Single UI Access to Product InformationView and Manage All Information for Product of Interest

  19. Oracle Master Data Mgmt:Consolidate Govern Consolidate Import Workbench Siebel EBS Trusted Product Data Identification & Cross-Reference Share SAP GDSN Source DataHistory Other Blended Record Cleanse • Aggregate Master Data from Multiple Sources into Repository • Match and de-duplicate data to create a single blended record • Make attribute changes in Excel and upload directly to repository

  20. Oracle Master Data Mgmt:Cleanse Govern Trusted Product Data Share Consolidate Cleanse Standardize Validate Parse Enrich Match & De-Duplicate • Extract & standardize attributes • Normalize data via item # and description generation rules • Enrich customer data with external data sources like D&B and Axciom • Identify duplicates and prevent future occurrences • Merge records to prevent duplicates data repository • Step-by-step workflows

  21. Integrated Enrichment CapabilitiesSupplement Customer Information with 3rd Party Content • D&B • Create or supplement customer records with out-of-the-box integration • Automatically create and expand corporate hierarchies • Import data in real-time or batch mode • Access D&B data within the natural flow of applications • Choose from 7 different D&B data packets • Address Validation Vendors • Standardize and validate existing addresses • Apply validation during bulk import process • Use pre-packaged adaptors (e.g., Trillium) orcreate custom adaptors using open, documented,OAG-compliant messaging

  22. Oracle Master Data Mgmt:Govern Govern Change Management Catalog Admin& Security Events &Policies Profile & Correct Trusted Product Data Share Consolidate Cleanse • Information data governance and change control • Control Access to Data without Compromising Usefulness • Prevent Duplicate records and Control the Process • Rapidly Apply Changes to Groups of records Meeting Specified Criteria

  23. Oracle Master Data Mgmt:Share Govern Share Web Services Library Siebel EBS Trusted Customer Data Publish &Subscribe Consolidate SAP Transports &Connectors Custom Apps Authorization BI Registry Cleanse

  24. Common Object Model (EBOs) MDM Consolidated, Authoritative, Cleansed, Governed Master Data MDM & Application Integration Architecture Pre-Built & Reusable Siebel Siebel EBS EBS PFST JDE JDE SAP SAP Portal iFlex iFlex

  25. SOA Suite / Data Integrator Data Governance & Compliance Oracle SAP R/3 Siebel PSFT Others The Heterogeneous Enterprise Other Oracle Information Management Framework MDM Applications Data Integrator BI Applications Data Warehouse MDM Data

  26. Agenda Why MDM critical for Manufacturing Industry? Oracle MDM Solution and Use Cases for Mfg Case Studies of Mfg Industry Leaders Detailed Case Study of 26

  27. “[Oracle has] the largest customer base of all MDM vendors.” MDM Institute , March 2008 Oracle is #1 in Master Data Management

  28. Manufacturing & Distribution Belgium Post Master Data Management CustomersOver 750 Customers Across Industries & Around the World High Technology Communications, Media & Utilities Life Sciences and Healthcare Financial Services Public Sector Retail & CPG Libyan Min. of Interior

  29. CUSTOMERPERSPECTIVE “Oracle is now the master for all product information. It stores data in a format that all the ERP systems understand.” Matthias Kenngott, IT Director COMPANY OVERVIEW • World´s largest manufacturer of metal-polymer plain bearings • 50,000 customers, 1,000 users, 19 countries • Main production in Germany, France, U.S., and Slovakia • RESULTS • Consolidated product definition to asingle system for engineering, sales, and manufacturing without disrupting existing business processes • Improved speed and accuracy of creating complex part numbers • Continuously cleanses and enriches product data and synchronizes with source systems • CHALLENGES / OPPORTUNITIES • Wanted a consistent, single source of product data to eliminate duplicate effort and redundant entries for the same part • SOLUTIONS • Product InformationMgmt Data Hub • Order Mgmt • Inventory Mgmt • Discrete Mfg • Purchasing • Financials

  30. In-Side • Central enterprise product record • References to all design and manufacturing systems • Single source of truth • Buy-Side • Component Supplier Management • Procurement and Sourcing support across multiple systems Product MDM Use CasesManage product master across buy side, in-side and sell side information complementary to PLM ProductMaster Record Source of truth or reference across system Sell-Side • Sales Configurations • Customer support • Multi-Channel commerce – Catalogs, attributes, marketing, policies

  31. Network Appliance COMPANY OVERVIEW • $1.2B provider of data storage solutions • Customers in over 70 countries CUSTOMERPERSPECTIVE “The real-time nature of Oracle Customer Data Hub not only enables us to make decisions quickly and consistently but helps us make very good decisions based on accurate information.” Scot Klimke, CIO • CHALLENGES / OPPORTUNITIES • Stored customer records in 20 systems and manually cleansed data using 10 full time employees • Siloed data made total view of the customers and prospects impossible • RESULTS • Significantly reduced number of customer records • Ensured same definition of customers across all transaction systems • Reduced average order processing time by 96% (from 2 days to 2 hrs) • SOLUTIONS • Customer Hub • Customer HubData Steward • Discrete Manufacturing • Order Mgmt • Financials • On Demand

  32. More Case Studies Provide Nokia logistics, sales, care and marketing with timely and clean customer data in a multi-channel interaction context Customer and Product data fragmentation due to growth through acquisition in multi-tier distribution channel Why: Oracle Customer Hub implemented with TCS and Oracle OCS in 3 months (phase 1) Centralized product, customer and pricing in one instance with Oracle MDM What: Significant increase in productivity, lower operational costs and higher customer satisfaction Time-to-market performance and streamlines operations Results:

  33. For More Information search.oracle.com Master Data Management or go to www.oracle.com/master-data-management

  34. The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.