MDM for ??Master Data Management for Manufacturing Enterprise Master Data Management Christopher Dwight Director MDM Field Strategy @

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  • Master Data Management for ManufacturingEnterprise Master Data Management

    Christopher DwightDirector MDM Field Strategychristopher.dwight@oracle.com

  • 2010 Oracle Corporation 2

    Agenda

    Master Data Management Defined

    The Need for Master Data Management

    What Can Go Wrong

    Indicators for MDM Challenges

    MDM Solutions

    Where To Start

  • 3

    What is Master Data?

    Transaction Data[ record of an event ]

    In essence, a date/time and a quantity

    Definitions according to IDC Research

    Reference Data[ Data to classify and reference events ]

    Product Type / Account / Cost Center

    Master Data[ Enterprise reference data ]

    Agreed-to reference data that spans more than one system

  • 4

    What Makes Master Data Special?

    Transaction

    Data

    Static once recorded, transactionsthemselves do not change

    Reference

    Data

    Can change over time, redefining how historical and/or future transactions are classified

    Master

    Data

    Can change over time, changes must be coordinated across multiple systems, timing sensitive

  • 2010 Oracle Corporation 5

    Master Data Management Defined

    "MDM is a set of disciplines and processes

    for ensuring the accuracy, completeness,

    timeliness and consistency of the most

    important types (or domains) of enterprise data

    across different applications, systems and

    databases, multiple business processes,

    functional areas, organizations, geographies

    and channels."

    Dan Power, Hub Solution DesignsDan Power, Hub Solution Designs

  • 2010 Oracle Corporation 6

    Agenda

    Master Data Management Defined

    The Need for Master Data Management

    What Can Go Wrong

    Indicators for MDM Challenges

    MDM Solutions

    Where To Start

  • 2010 Oracle Corporation 7

    Companies

    Changing Information Presents a ChallengeMaster Data Facts

    240 businesses will change addresses

    150 business telephone numbers will change or be

    disconnected

    112 directorship (CEO, CFO, etc.) changes will occur

    20 corporations will fail

    12 new businesses will open their doors

    4 companies will change their name

    Source: D&B, US Census Bureau, US Department of Health and Human Services, Administrative Office of the US Courts, Bureau of Labor Statistics, Gartner, A.T Kearney, GMA Invoice Accuracy Study

    5,769 individuals in the US will change jobs

    2,748 individuals will change address

    515 individuals will get married

    263 individuals will get divorced

    186 individuals will declare a personal bankruptcy

    Individuals

    Master data changes at rate of 2% per month.

    Products

    On average 20% duplicates in product data

    90% product introductions fail

    Retailers lost 40 billion or 3.5% of total sales lost each year due to item info inefficiencies

    60% error rate for all invoices generated

    Global Data Sync will realize 30% lower IT costs

    In one hour In one hour In one year

    Compounded, 2% monthly change is 27% per year, 61% in two years, 104% in three years!!!

  • 2010 Oracle Corporation 8

    Report: Top Items by YTD SalesReport: Top Items by YTD Sales

    If Only Things Were Simple!If there were only one system, capturing and managing change would be easy!

    ETL

    BI/

    DW

    EBS

    Prod ID: 910Prod ID: 910--300A02300A02

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 9/27/2009Last Update: 9/27/2009

    Rank Prod ID Type YTD Orders

    1 028-3029A09 Screen 12,152

    2 A04989-2 Hi-Flow 9,434

    3 910-300A02 Mesh Element 8,739

    4 02903-390 Hi-Flow 7,543

    5 020-29398A TopSpin 7,350

    6 020-08002 TopSpin 6,518

    7 09203-098 Hi-Flow 6,189

    8 M029-1820 PK-Type1 5,152

    Single View of Single View of

    ItemItem

  • 2010 Oracle Corporation 9

    Most Organizations Are ComplexChanges occur anywhere and everywhere, leading to information disparity

    ETL

    ETL

    BI/

    DW

    JDEAPAC

    Lawson

    LATAMEBS

    SAPEMEALegacy

    ContractsASCPDemandPlanning

    LegacyMktg

    Prod ID: 910Prod ID: 910--300A02300A02

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 9/27/2009Last Update: 9/27/2009

    Prod ID: A02Prod ID: A02--02000B02000B

    Type: Element, MeshType: Element, Mesh

    Family: TrucksFamily: Trucks

    Last Update: 11/03/2009Last Update: 11/03/2009

    Prod ID: MEProd ID: ME--AA--910910--0202

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 1/27/2010Last Update: 1/27/2010

    Prod ID: C910Prod ID: C910--000000--001001

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 12/2/2009Last Update: 12/2/2009

    US View of ItemUS View of Item EMEA View of ItemEMEA View of Item

    Contracts View of Contracts View of

    ItemItem

    Creating a Creating a Top ItemsTop Items report report

    is easy, but can you really is easy, but can you really

    trust the results?trust the results?

    Report: Historical Item DemandReport: Historical Item Demand

    Rank Prod ID Type YTD Orders

    1 028-3029A09 Screen 12,152

    2 A04989-2 Hi-Flow 9,434

    3 910-300A02 Mesh Element 8,739

    4 02903-390 Hi-Flow 7,543

    5 020-29398A TopSpin 7,350

    6 A02-02000B Element, Mesh 6,518

    7 09203-098 Hi-Flow 6,189

    8 M029-1820 PK-Type1 5,152

    Demand Demand

    Planning View of Planning View of

    ItemItem

    How do I understand How do I understand

    my inventory positions my inventory positions

    if I cannot identify if I cannot identify

    identical items?identical items?

    How do I correctly How do I correctly

    aggregate demand aggregate demand

    signals when each signals when each

    business unit has business unit has

    different product IDs?different product IDs?

  • 2010 Oracle Corporation 10

    MDM Manages Ongoing Information ChangeConsolidate, Cleanse, Standardize, Cross-Reference, Govern, and Share

    ETL

    ETL

    Middleware

    Application Integration ArchitectureBI/

    DW

    JDEAPAC

    Lawson

    LATAMEBS

    SAPEMEALegacy

    ContractsERP 2DemandPlanning

    LegacyMktg

    MDM

    Global ID: ME910Global ID: ME910--1020 1020

    US ID: 910US ID: 910--300A02300A02

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 2/27/2010Last Update: 2/27/2010

    Global ID: ME910Global ID: ME910--1020 1020

    DemandtraDemandtra ID: MEID: ME--AA--910910--0202

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 2/27/2010Last Update: 2/27/2010

    Global ID: ME910Global ID: ME910--1020 1020

    Contracts ID: C910Contracts ID: C910--000000--001001

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 2/27/2010Last Update: 2/27/2010

    A global, reliable cross A global, reliable cross

    reference makes consolidating reference makes consolidating

    information from disparate information from disparate

    systems both systems both easyeasy and and

    accurateaccurate..

    Each department and system is sharing the same information Each department and system is sharing the same information

    easily understand a consistent item definition.easily understand a consistent item definition.

    Report: Historical Item DemandReport: Historical Item Demand

    Rank Prod ID Type YTD Orders

    1 ME910-1020 Mesh Element 12,152

    2 A04989-2 Hi-Flow 9,434

    3 02092-380 TopSpin 8,739

    4 02903-390 Hi-Flow 7,543

    5 020-29398A TopSpin 7,350

    6 20309-029 Hi-Flow 6,518

    7 09203-098 Hi-Flow 6,189

    8 M029-1820 PK-Type1 5,152

    Global ID: ME910Global ID: ME910--1020 1020

    EMEA ID: A02EMEA ID: A02--02000B02000B

    Type: Mesh ElementType: Mesh Element

    Family: AutoFamily: Auto

    Last Update: 2/27/2010Last Update: 2/27/2010

  • 11

    Trusted Master Data

    Trusted Master Data

    What Does MDM Do?

    Web ServicesLibrary

    Web ServicesLibrary

    Publish &SubscribePublish &Subscribe

    Transports &Connectors

    Transports &Connectors

    AuthorizationAuthorization

    RegistryRegistry

    Profile & Correct

    Profile & Correct

    History& AuditHistory& Audit

    PrivacyMgmt

    PrivacyMgmt

    Events & Policies

    Events & Policies

    Import WorkbenchImport Workbench

    Identification & Cross-Reference

    Identification & Cross-Reference

    Source DataHistorySource DataHistory

    SurvivorshipSurvivorship

    ParseParse

    Cleanse & StandardizeCleanse &

    StandardizeEnrichEnrich

    Manage Decay

    Manage Decay

    Match & Merge/ Unmerge

    Match & Merge/ Unmerge

    Roles &

    Relationships Party

    Vertical Variants

    Related Data

    Entities

    Roles &

    Relationships Party

    Vertical Variants

    Related Data

    Entities

    MDM provides MDM provides

    critical critical data data

    management management

    servicesservices to to

    consolidate, consolidate,

    cleanse, share cleanse, share

    and govern and govern

    key enterprise key enterprise

    datadata

    These data These data

    management management

    services services are are

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