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Master Data Management:A Manufacturing Solution orSinkhole? It Depends onYour Planning!Marc HalpernTwitter: @mrhalpern4353 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed inany form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted ongartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner di sclaims all warranties as to the accuracy, completenessor adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's researchorganization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include adiscussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and itsshareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of thesefirms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further informationon the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
Key Issues1. Why will master data management (MDM)play a more pivotal role in the manufacturingIT landscape?2. What are the software tradeoffs formanufacturers seeking to enable MDM?3. What are manufacturers' top prioritiesto maximize chances of successfulMDM implementation? 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues1. Why will master data management (MDM)play a more pivotal role in the manufacturingIT landscape?2. What are the software tradeoffs formanufacturers seeking to enable MDM?3. What are manufacturers' top prioritiesto maximize chances of successfulMDM implementation? 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Manufacturing Master Data HasMany Masters!ExtendedPLMSupplyWorkflowsChainR&D FormulationSupplier ManagementCAD/CAM Product DesignGeneral Recipe ManagementProduction PlanningEngineering &Process CRMProcurementSignoffsGeneral Recipe DevelopmentExchangesERPFormulation DMSBatchExecution/MESSCADA/HMIMachines, Automation & ControlsMachineResearch &DevelopmentProcessDesign &DevelopmentProductionProduct and Process Life Cycle 2014 Gartner, Inc. and/or its affiliates. All rights reserved.Customer
Three Rings of Information Governance1. "Stable Core" — Systems of Record2. "Dynamic Applications" — Systems of Differentiation3. "Fluid Services" — Systems of Innovation 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
How We Organize Information Is Not theSame as How Users "See" or Use Information Systems of innovation. Unique, next practice:- Someone else'smaster data?Customer RelationshipManagementERP- Other data for eachprocess/apps.E-CommerceBig DataUsers' View}Role-based data (color denotes master data domain) 2014 Gartner, Inc. and/or its affiliates. All rights reserved.Supply ChainManufacturingProduct Life CycleManagement
Top 5 Reasons Why Manufacturers NeedMaster Data Management1. Master data has many masters2. Effective new product developmentand introduction (NPD&I) requiresunstructured collaboration3. Complex manufacturing chains makeproduct data harder to track4. Too costly and complex to orchestratedifferent enterprise applications5. High business risks and costs ofproduct data errors 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues1. Why will master data management (MDM)play a more pivotal role in the manufacturingIT landscape?2. What are the software tradeoffs formanufacturers seeking to enable MDM?3. What are manufacturers' top prioritiesto maximize chances of successfulMDM implementation? 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Top 10 Functional Priorities forManufacturing MDM SupportPLMERPMES(Etc.)MRO1. d3d5d63. Add/Remove attributes7. Traceable data history4. Search8. Compare datasets5. Flexible editing9. Create role-based views6. Change mgmt./reporting 10. Manage data life cyclesMaster Data ManagementSource: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved.2. Make or breakrelationships
Four Most Likely Ways ManufacturersManage Their Master DataERP-basedMDMSpreadsheets(E.g., Microsoft)WhereManufacturersManage MasterDataMFG SpecialtyMDM (e.g., manage BOMs)(E.g., Aras, Arena Solutions,Eurostep)Source: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved.(E.g., Oracle, SAP)Pure playMDM(E.g., Riversand, Stibo Systems)
Comparing Manufacturing MDM ps3Attributes4Search5Editing6Change Mgmt.7Traceable History8Comparing Data9Role-based Views10Data Life Cycles11Ease to Implement12Ease of Use13CostSource: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved.ERP-basedMDMMFG SpecialtyMDMPure PlayMDMBestWorst
The Four MDM Options Serve DifferentManufacturer NeedsSoftware OptionWhen to UseWhen Not to UseSpreadsheets(E.g., Microsoft) Quick niche evaluations Integrated with otherMDM software System of record needed To understand data structureERP-based MDM(E.g., Oracle, SAP) With other business applicationsfrom the same vendor When ERP and PLM softwarecome from a different vendor Low budget initiativesMFG Specialty MDM(E.g., Aras, ArenaSolutions, Eurostep) Product-related data across theproduct lifecycle When master data goes beyondproduct 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 thatspecialty MDM can addressSource: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues1. Why will master data management (MDM)play a more pivotal role in the manufacturingIT landscape?2. What are the software tradeoffs formanufacturers seeking to enable MDM?3. What are manufacturers' top prioritiesto maximize chances of successfulMDM implementation? 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Align MDM Strategies to FocusObjectives With the Greatest PaybackSystematic Mapping of IT Planning to Business GoalsMindset LayerToolset LayerFocusWhat business philosophydrives MDM priorities?What are the data-drivenprocesses requiring MDM?Priorities How does MDM align withbusiness objectives? How must MDM interfacewith other applications? What organizationalchanges are needed? What data is needed? What cross-enterpriseprocess changesare needed?ResponsiblePrimariesWhich business stakeholdersshould participate?Source: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved. How should MDMfunctionality be prioritized?Which IT stakeholders shouldbe involved?
Managing BOMs: A High Leverage MDMInitiative Impacting Life Cycle PerformanceRFP to ERP OM &PLM Requirements rial Impact: Product costsPLMMROeBOMxBOMPCyclesBOMmBOMERPMESDeployERP to Svc.Item/BOM MasterSource: Gartner, 2014 2014 Gartner, Inc. and/or its affiliates. All rights reserved. SourcingNPISustaincBOM Product quality Tooling Factory layout Customer options Service efficiency
Recommendations IT strategists should adopt MDM as a data hub forcontent authored in different business applications CIOs should insist that users replace spreadsheetswith enterprise MDM for data with long life cycles Executives should prioritize focused MDM projectswith high impact as an early program:- E.g., Managing BOMs, managing product costing data Executives need to invest in business transformationand 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 ProductData SolutionsAndrew White, Bill O'Kane (G00251785) Consider Three Specific Scenarios for MDM of Product DataAndrew White (G00239383) Toolkit: Building the Business Case for MasterData 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)For more information, stop by Gartner Research Zone. 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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 c5 c3 c4 p3 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 .
