Acolyance: Applying MDM to Drive ERP Success & ROI

ACOLYANCE – MDM Summit
Applying MDM to drive ERP Success and ROI
Date : 20 May 2014 Supported by

Introduction
Contacts
Alaa HOBLOS
System Integrator & MDM Advisory
Sébastien MENUS
MDM Project Leader

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

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

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

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

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 + Finance
2. Arable Services
3. Cereal
Seeds activity is
out of scope

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

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

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
Third party modeling
Third party Farmer
Supplier
Legal Entity
2
.
.
.
Is Within Legal Entity
1
Legal Entity
2
Legal Entity
N
Within
Retail
customer
Within
Farmer Retail
customer
Supplier
MDM
Project
Current Target

Current Target
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
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

Synthesis
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

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 Retail
Farmer
Supply &
services

The ERP Project brings its own challenges
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?

Possible architecture for Product MDM
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 MasterERP Master

Synthesis: Why did we chose MDM as Master?
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)
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

MDM as ERP bumper
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
Eurosem
GVSE /
COFAC
BI
ERP
Nomad
Agro
Phytodata
Eurosem
GVSE /
COFAC
BI
ERP
Nomad
Agro
Phytodata
Eurosem
GVSE /
COFAC
BI
The ERP has to take into account the constraints of other applications.

MDM as ERP bumper
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
Eurosem
GVSE /
COFAC
BI
ERP
Nomad
Agro
Phytodata
Eurosem
GVSE /
COFAC
BI
MDM
ERP
Nomad
Agro
Phytodata
Eurosem
GVSE /
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

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

Deployment Strategy
Be Pragmatic !
Consolidate
referenced data
of each domain
Leverage XREF
Administration to
enrich the
repository
Move from
consolidation
mode to
centralization
mode

Synthesis
Bring consistency with existing IT system for accurate reporting
Facilitate integration with existing IT Systems (XREF)
Involve business users in managing reference data
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

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

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 initiative Key Benefits to ERP Programs
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
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
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

Key Benefits Synthesis
Data Governance
Functional scope
Project team maturity
Risk mitigation
Third party collaboration
External growth
1
2
3
4
5
6
ERP
Project

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

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

Key Success Factors
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

Key Success Factor for ERP & MDM program
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

Thank You!
We will be at Orchestra Networks booth to answer your
questions!

Acolyance: Applying MDM to Drive ERP Success & ROI

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Acolyance: Applying MDM to Drive ERP Success & ROI