Transcript AIM Sales Presentations

SWOC DAMA
Master Data Management
Peter Lamb
January 24, 2007
Master Data Management with Kalido
 MDM – The Context
 Capabilities of Kalido MDM
 Commonalities with DIW
 MDM Capabilities
 How is MDM Used
 Types of problems customers are solving with MDM
 Benefits customers are deriving through the use of MDM
 Guidelines for an MDM Implementation




Importance of business involvement
Technology evaluation
Planning
Implementation
 Questions
2
Copyright © Kalido 2006
MDM – The Context
3
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Master Data Lifecycle
4
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Enterprise Wide / Cross Functional
Currencies
Customers
Regions
Brand Families
Cost Centers
Package Types
Market Segments
Business Lines
Products
Brands
Branches
Materials
SKUs
Sectors
Suppliers
Contribution Types
Departments
Product Groups
KPI definitions
Expense Types
Organization
Payees
Copyright © Kalido 2006
Assets
Units of Measurement
Channels
Sales Divisions
5
Employee Classes
Hundreds of
categories of
master data
Supply Locations
Tax Types
Why is Master Data Management So Difficult?
 Partial views scattered across enterprise
 In applications, data warehouses—even spreadsheets, etc.
 Inconsistent formats, codes, definitions
 Slow to reflect market consolidation, reorganizations, and
other business changes
 Data changes are uncontrolled—often made redundantly
and inaccurately
Finished Product
Target Industry
Segment
Catalog
SCM
Line Item
Master
Data
6
Product Usage
• Height
• Length
• Width
Partner
Master
Data
Copyright © Kalido 2006
ERP
ERP
DW
Master
Data
Product
Sub Group
Brand
Sub Group
Product Spec
Product
Product
Group
Brand
Product
• Size
CRM
Master
Data
Product
Manager
Product
• Colour
DW
Master
Data
How Well-Managed is Your Master Data?
Perception:
Reality:
• 1 definition of “Margin”
• 23 definitions of “Margin”
• Market 20,000 products
• Market 5,000 products
• Have 20,000 customers
• Have 6,000 customers
• Analysts analyze info
• Analysts spend 60% of their
time gathering info
(source: customer study)
30% of all operational errors are due to poor information quality
• Books closed in 8 days—not 3
• Millions lost annually on errant
shipments
• 30% of invoices are incorrect
7
Copyright © Kalido 2006
(Reuters)
• Incorrect commission, rebate
payments
• Customer goodwill lost
• Overspending in procurement
What an MDM Solution Provides
Enrich
Authorize
Browse
Master data model
Segment
Product
Sub Group
Brand
Sub Group
Product Usage
Product
Product
Manager
Product
• Colour
Product
• Size
Catalog
Finished Product
Line Item
Consolidation – 3600 view
Product
Group
Brand
Target Industry
Consistency – Harmonization
• Height
• Length
• Width
Control – Data governance
Product Spec
Finished Product
Target Industry
Segment
Catalog
SCM
Line Item
Master
Data
8
Product Usage
• Height
• Length
• Width
Partner
Master
Data
Copyright © Kalido 2006
ERP
ERP
DW
Master
Data
Product
Sub Group
Brand
Sub Group
Product Spec
Product
Product
Group
Brand
Product
• Size
CRM
Master
Data
Product
Manager
Product
• Colour
DW
Master
Data
Real Life MDM Solution
Oracle
ERP
Finance
Vendor
AP
SAP
Enrich
Authorize
Browse
Finance
Product
Vendor
Customer
Vendor
Customer
Employee
Kalido MDM
SAP
Planning
Product
Customer
Customer
Finance
Product
Call
Centre
DW
Master Data Repository
Product
Vendor
Customer
Legacy
Sales &
Dist
Data Quality
Reporting and
Analysis
Finance
Legacy
GL
User
Mailbox
User
Exchange
9
Copyright © Kalido 2006
Active
Directory
Job
Employee
HRIS
Product
Geography
Legacy
CDM
Active Information Management
DIW – Dynamic Information Warehouse
MDM – Master Data Management
MDM and DIW – Sister Products
 Capture and manage change over time
 Audit log of all changes to master data
 Define, hold and present business model
 Change and extend business model with minimal impact
 Publish master data for consumption by other applications
11 Copyright © Kalido 2006
MDM and DIW – Key Differences (current release)
DIW
MDM
Transactional and reference data
Defined for master data only
Data integrity strictly enforced
Holds data that does not conform to defined
business rules
Standard validation rules
Complex validation rules may be defined at
the attribute or subject level
No workflow
Supports workflow for business management
of new, amended or invalid master data
subjects
Client not intended for direct data entry of
master data
Web based interface intended for business
user access
Load from files or ODBC
Loads only from flat files in current release.
API supports real time updates
Manages delta detection
Delta detection, if required, must be managed
in external ETL
12 Copyright © Kalido 2006
Key Capabilities of Kalido MDM
MDM – Terms

Category


Attribute


Logical column or field defined in a category
Subject


Logical table or data set sharing common attributes and
business validation rules
Data member of a category
Catalogue

Grouping of objects in MDM – these could be model objects
such as categories or groupings of subjects selected from one
or multiple categories
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Key Capabilities - Model
 Generic Model
 Holds master data of any type as defined by the business
 Hold and Present the Business Model




Define categories and attributes
Define relationships
Define complex business rules to identify non conforming data
Present the model to consuming application and to business users
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Key Capabilities – Managing Invalid Data

Hold but identify data that does not conform to business
rules

Empty values for mandatory attributes

Incorrect number of values for an attribute

Invalid parenting

Invalid format or data types
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Key Capabilities – Complex Identification of Invalid Data
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Key Capabilities – Audit and Control

Time variant capture and management of master data
values by attribute

Full audit logging of all changes

Definable security
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Key Capabilities – Governance

Workflow



Definable workflow to direct subjects into the inbox of a party
(group of users)
Users can approve, reject, authorize subjects
Issues can be raised and addressed
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Key Capabilities – Standard Interface

Standard Interface

Simple, but users have accepted it well

Consistent

Searching / browsing capabilities

Mass update – basket operations

Mapping capabilities to simplify updates
20 Copyright © Kalido 2006
Basket Operations
•Delete
•Catalog
•Re-catalog
•Amend ownership
•Set security
•Edit fields
•Approve
•Authorize
•Reject
•Submit for approval
Key Capabilities – Customizable Interface

Customizable Data Management Forms

HTML Style Sheets
21 Copyright © Kalido 2006
Key Capabilities – Publishing / Implementation


Master Data Publishing

Category reporting scripts provide a simple and consistent presentation
for consumption of master data

Outbound publishing of non-conformant subject data for reporting

API access

Direct access possible to underlying tables
Fast to Deliver

Simple to build

Simple to change

Prototyping an option
Business Analysis, Not The Technology
22 Copyright © Kalido 2006
Benefits Derived from MDM

Cross functional data integration

Data quality

Data decoration

Audit logging

Workflow

Interface
23 Copyright © Kalido 2006
Implementation Guidelines
Guidelines / Best Practices - Business

Engage with the business early and at every step along the way

Business commitment is crucial

Not a ‘one-off’ project – success will drive more demand

Executive support

Definition of global master data standards
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
What constitutes master data in the organization
Define standards
Conflict resolution
Business Must Lead
Considerable Business Time Is Required
25 Copyright © Kalido 2006
Guidelines / Best Practices - Evaluation

Allow up to three months for the evaluation process

Interview reference customers

Consult Kalido P.S. to confirm suitability of MDM as the
solution

Proof of Value

Prove the technology

Set realistic business expectations

Build confidence, interest and excitement
Have Business Users Involved in the POV
26 Copyright © Kalido 2006
Guidelines / Best Practices - Planning

Set a clear scope

Limit scope, and extend as needs arise

Business prioritization for greatest return

Try to focus on a single subject area

Define the vision

Seek buy-in immediately
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Refer to existing business processes

Ensure commitment to new business processes
Step by step approach
27 Copyright © Kalido 2006
Guidelines / Best Practices - Implementation

Training personnel fully

Focus where it is required – may need multiple sessions

Engage P.S. – coaching during development

Include key business users in training – model definition as well
as interface

Get input from vendor consultants

Do not lose momentum

Iterative approach better than waterfall

Many lessons learned as first categories are implemented

Use real data and be ready for surprises that can change
priorities
28 Copyright © Kalido 2006
Guidelines / Best Practices - Model

Business involvement is critical in defining the model

Aim to resolve ambiguity – do not add to it

Use business definitions

Use business names for categories and labels

Identify business owner for each object

Identify system of record for each object

Identify data that will be maintained in MDM and the business
users that will be managing it

Define basic validation rules including unique identifiers

Publish the model for IT and business users

Graphic representation of category relationships

Detail on categories and attributes

Use MDM metadata
29 Copyright © Kalido 2006
Guidelines / Best Practices - Model

Understand where the business expects to be going –
build for current requirements, but keep long term plans
in mind

Expect to extend validation rules during the
implementation phase



Keep in mind how the data quality can be improved
How can value be added beyond initial requirements
Identify security requirements



Sensitive data must be secure or business owner is not likely to
make it available
Build confidence by demonstrating security
Split categories based on security if required to ensure control
30 Copyright © Kalido 2006
Guidelines / Best Practices – Data In and Out


Use real data during development

Load from spreadsheets rather than ETL for initial testing

Business will respond to real data and often ignore test data

Loading real data uncovers many conformance issues – do not
wait for ETL to load the data

Confirm unique keys

Expect model to change as data is loaded
Determine Outbound Requirements

Generic – an approach for all data

Specific – what feeds to consumer systems must be delivered
for the project to be successful

Define how invalid data will be handled – will it be published?
31 Copyright © Kalido 2006
Guidelines / Best Practices – Tracking and Purging


Track data - timestamp

Ideally, timestamp and track all data. This includes input feeds.

Normally multiple interfaces and sources, with many possibilities
of failure

No one likes to admit to a data problem

ETL

Source

MDM
Define an approach for deleting subject data

Focus is to get data in – data may need to be removed

May be physical delete - purge

May be flag values

Be clear - ‘inactive’ and ‘deleted’ are not the same
32 Copyright © Kalido 2006
Guidelines / Best Practices – Validity & Governance

Continuously review validation rules

Define workflow requirements


Workflow requirements may be defined in the initial model, but
clarity over data quality and ownership is likely to result in
changes

Monitor business processes that may be in place to integrate
MDM workflow where possible
Data volumes will have an impact
33 Copyright © Kalido 2006
Guidelines / Best Practices – Quality



Quality counts

Data and ETL quality is critical

Do not risk a loss in confidence – be able to prove that the data
is correct
Modularize ETL

Solid process control including error messaging required

Be prepared to restructure feeds – you may need to move from
daily to hourly
Outsourcing development not recommended
34 Copyright © Kalido 2006
Summary
Master Data Management with Kalido
SCM
Data Loader & APIs
ERP
ACTIVE INFORMATION
MANAGEMENT
Business Modeling
Change Management
Master Data Repository
EDW
Data Marts
Data
Warehouse
Manage
Notify
Workflow
Application Service (SOA)
Sources
Recipient
BI Systems & Users
Flexible storage
Data Stewardship
Output
• Business-model driven
• Extensible to all subject areas
• Handles non-conformant, invalid
and incomplete master data
• Enterprise-wide view
• Time-variant model and data
•
•
•
•
•
•
• Valid, authorized data
• Master data as a service
• EAI, Web Service, ETL & file
interfaces
36 Copyright © Kalido 2006
Search
Enrichment
Mapping
Authorization
Collaboration
Workflow-controlled
Intranet
Ventana Research Conclusions
 All respondents felt KALIDO MDM was an excellent
foundation on which to roll out master data management
 They spoke highly of the service provided by Kalido
consultants and commended their levels of commitment and
expertise
 Most were in the early stages of implementation and felt it
was too early to quantify benefits. Nonetheless, all were
convinced benefits were accruing and would eventually be
realized and measured
 Most organizations did not develop a formal business case
but they saw implementing KALIDO MDM as an essential
step toward effective information management
37 Copyright © Kalido 2006
Ventana Research – Why Kalido
 Flexibility to accommodate business change
 Effective dating – time dependency functionality
 Fast to implement – low dependence on IT
 Ability to build business rules and ensure compliance
 Supports and helps enforce need to address master data ‘challenges’
 Very often no business case developed as such


Often supported on basis of bigger initiative
Is ‘self evident’ that its needed
 Provides excellent ‘foundation’ for MDM
 Early to have ‘quantified’ business benefits but all convinced they are there
38 Copyright © Kalido 2006
Questions…
 Peter Lamb
 +1 416-538-6231
 peter.lamb@dataarch.ca