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Marc HalpernTwitter: @mrhalpern4353

Master Data Management: A Manufacturing Solution or Sinkhole? It Depends on Your Planning!

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. Why will master data management (MDM) play a more pivotal role in the manufacturing IT landscape?

2. What are the software tradeoffs for manufacturers seeking to enable MDM?

3. What are manufacturers' top priorities to maximize chances of successful MDM implementation?

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. Why will master data management (MDM) play a more pivotal role in the manufacturing IT landscape?

2. What are the software tradeoffs for manufacturers seeking to enable MDM?

3. What are manufacturers' top priorities to maximize chances of successful MDM implementation?

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Manufacturing Master Data Has Many Masters!

Org

an

izati

on

Product and Process Life Cycle

Production

Process

Production

Unit

Machine

Plant

Enterprise

ProductionResearch &Development

Process Design &

Development

Extended

Supply

Chain

Customer

Trading

Exchanges PLM

Workflows

Notifications

Signoffs

ERP

Supplier Management

Procurement

General Recipe Management

Production Planning

CRM

Recipe Management

SystemsLIMS

Batch Execution/

MES

LIMS

Asset Management

PIM

SCADA/

HMIHistorian

Machines, Automation & Controls

Formulation Systems

R&D Formulation

General Recipe Development

CAD/CAM Product Design

Engineering &

Process Design

EDMS

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Three Rings of Information Governance

1. "Stable Core" — Systems of Record

2. "Dynamic Applications" — Systems of Differentiation

3. "Fluid Services" — Systems of Innovation

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

How We Organize Information Is Not the Same as How Users "See" or Use Information

• Systems of innovation.

• Unique, next practice:

- Someone else's master data?

- Other data for each process/apps.

Product Life CycleManagement

Manufacturing

Supply Chain

Customer RelationshipManagement

E-Commerce

Role-based data (color denotes master data domain)

Big Data

Users' View

ERP

}

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Top 5 Reasons Why Manufacturers Need Master Data Management

1. Master data has many masters

2. Effective new product development and introduction (NPD&I) requires unstructured collaboration

3. Complex manufacturing chains make product data harder to track

4. Too costly and complex to orchestrate different enterprise applications

5. High business risks and costs of product data errors

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. Why will master data management (MDM) play a more pivotal role in the manufacturing IT landscape?

2. What are the software tradeoffs for manufacturers seeking to enable MDM?

3. What are manufacturers' top priorities to maximize chances of successful MDM implementation?

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Top 10 Functional Priorities for Manufacturing MDM Support

(Etc.)PLM ERP MES MRO

Master Data Management

1. APIs

PLM master data

ERP master data

MES master data

MRO master data

a1

a3 a4 a5

a2

b1

b2

b4 b5

b3

b6

c1 c2

c3c5

c4p3

p2

p1 d1

d2

d4 d5

d3

d6

3. Add/Remove attributes

4. Search

5. Flexible editing

6. Change mgmt./reporting

7. Traceable data history

8. Compare datasets

9. Create role-based views

10. Manage data life cycles

Source: Gartner, 2014

2. Make or break relationships

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Four Most Likely Ways Manufacturers Manage Their Master Data

Where Manufacturers Manage Master

Data

Spreadsheets

(E.g., Microsoft)

MFG Specialty MDM (e.g., manage BOMs)

(E.g., Aras, Arena Solutions, Eurostep)

ERP-based MDM

(E.g., Oracle, SAP)

Pure play MDM

(E.g., Riversand, Stibo Systems)

Source: Gartner, 2014

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Comparing Manufacturing MDM Options

No.

Spread-

sheets

ERP-based

MDM

MFG Specialty

MDM

Pure Play

MDM

1 APIs/Interfaces

2 Relationships

3 Attributes

4 Search

5 Editing

6 Change Mgmt.

7 Traceable History

8 Comparing Data

9 Role-based Views

10 Data Life Cycles

11 Ease to Implement

12 Ease of Use

13 Cost

Best

Worst

Source: Gartner, 2014

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

The Four MDM Options Serve Different Manufacturer Needs

Source: Gartner, 2014

Spreadsheets

(E.g., Microsoft)

• Quick niche evaluations

• Integrated with other

MDM software

• System of record needed

• To understand data structure

ERP-based MDM

(E.g., Oracle, SAP)

• With other business applications

from the same vendor

• When ERP and PLM software

come from a different vendor

• Low budget initiatives

MFG Specialty MDM

(E.g., Aras, Arena

Solutions, Eurostep)

• Product-related data across the

product lifecycle

• When master data goes beyond

product data (e.g. HR data,

financial records)

Pureplay MDM

(E.g., Riversand, Stibo)

• Heterogeneous data

(e.g. customers, HR, financial,

product)

• Multiple vendor business apps

• Low budget initiatives that

specialty MDM can address

Software Option When to Use When Not to Use

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. Why will master data management (MDM) play a more pivotal role in the manufacturing IT landscape?

2. What are the software tradeoffs for manufacturers seeking to enable MDM?

3. What are manufacturers' top priorities to maximize chances of successful MDM implementation?

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Align MDM Strategies to Focus Objectives With the Greatest Payback

Systematic Mapping of IT Planning to Business Goals

Source: Gartner, 2014

Focus What business philosophy

drives MDM priorities?

What are the data-driven

processes requiring MDM?

Priorities • How does MDM align with

business objectives?

• What organizational

changes are needed?

• What cross-enterprise

process changes

are needed?

• How must MDM interface

with other applications?

• What data is needed?

• How should MDM

functionality be prioritized?

Responsible

Primaries

Which business stakeholders

should participate?

Which IT stakeholders should

be involved?

Mindset Layer Toolset Layer

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Managing BOMs: A High Leverage MDM Initiative Impacting Life Cycle Performance

P

Specs

Deploy

Susta

in NP

I

PLM

ERP

MES

xBOM

Cycle

Customer

Value

Proposition

RFP to ERP OM &

PLM Requirements Tracking

ERP to Svc.

Item/BOM Master

cBOM eBOM

mBOMsBOM

Bills-of-material Impact:

Product costs

Product quality

Sourcing

Tooling

Factory layout

Customer options

Service efficiency

MRO

Source: Gartner, 2014

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommendations

IT strategists should adopt MDM as a data hub for content authored in different business applications

CIOs should insist that users replace spreadsheets with enterprise MDM for data with long life cycles

Executives should prioritize focused MDM projects with high impact as an early program:

- E.g., Managing BOMs, managing product costing data

Executives need to invest in business transformation and user training to enable successful MDM

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research

Best Practices in Bills-of-Material and Recipe ManagementMarc Halpern, Ray Barger Jr (G00253418)

Magic Quadrant for Master Data Management of Product Data SolutionsAndrew White, Bill O'Kane (G00251785)

Consider Three Specific Scenarios for MDM of Product DataAndrew White (G00239383)

Toolkit: Building the Business Case for Master Data ManagementMichael Smith, Andrew White (G00218013)

Interfacing PDM and MDM for Cross-Enterprise NeedsMarc Halpern, Andrew White (G00170034)

A Look at the Differences and Interactions Among PDM, PLM and MDMAndrew White, Marc Halpern (G00169693)

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