Master Data Management: A Manufacturing Solution or...
Transcript of Master Data Management: A Manufacturing Solution or...
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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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