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Tetra Pak: Master Data Is A Corporate Asset

Nilly Essaides

In 2014, Jeff DeWolf of Tetra Pak put master data management (MDM) near the top of management’s priority list by treating it as a corporate asset. As the company’s director of global master data strategy, he framed master data within a strong business context. At the same time, he launched a data rejuvenation effort that completely overhauled the giant Swiss packaging company’s MDM model.

Tetra Pak already had a high level of maturity in its management of master data. It has an enterprise-level model and a single ERP instance. But the company was beginning to add new applications that had their own embedded data. Implementations were handled by a small group of individuals. Ownership was incomplete and scattered. Metrics varied. This led, for example, to problems with spare parts pricing, which in turn caused customers to complain. “The problem was we were not treating master data with respect,” DeWolf said.

The right framing

Between 2005 and 2013, the company had made many improvements by focusing on master data management rather than maintenance. But this was not enough to take the next giant leap forward. To do this, DeWolf changed the context of the program by framing it as a business imperative. “When I addressed the C-suite, I didn’t talk to them in terms of data, but in terms of customer realities,” said Dewolf.

For example, when the company developed a new product, it moved it to the ERP environment once it became commercially viable. Initially, there weren’t good checks and balances governing the use of data between the development and commercial environments. The item might have appeared to salespeople as available at a certain price. They would then proceed to quote the price to customers. But parts still in the design phase were constantly updated, leading to pricing changes.

“The result was that customers would keep getting new price confirmations in their inboxes, which customer representatives had to explain. In this case, the lack of clear data governance rules affected the end customer. We were exposing the customer to our own inefficiency,” DeWolf summed up. That got top management attention.

The three objectives

To put MDM back on the map, DeWolf set out three objectives:

  1. Automate the MDM workflow
  2. Remodel the MDM organization
  3. Change the kind of metrics used to measure the quality of the data

His first step was to transition the four master data domains (vendors, finance, customers, and materials) to a single system. To make this happen, he chose master data governance software—an off-the-shelf solution that allows users to centrally create, change, and distribute master data across the organization.

Next he turned to the way the group was organized. Prior to 2013, master data management was distributed among many regional master data teams. He wanted to centralize the expertise in a center of excellence (CoE) and chose Panama for its location, because Tetra Pak already had a global business services (GBS) operation there with some MDM staff. And there were several more in nearby Colombia who were willing to move. He ended up with 20 MDM experts (down from 50) who could work with global process owners around the world.

He says the role of the CoE will evolve overtime. Ultimately, he expects it to become a professional problem-solving operation. “The objective is to find areas of improvements, make suggestions, and feed them to the global process teams,” he notes. “We expect to have 70% of all manual MDM-related work automated by the end of this year.”

The COE has already made a huge impact. It reduced the number of MDM workflows by more than 85 percent, to just 400. Previously, each site had its own change-approval process. While some variations were minor, in the aggregate, the process was so unwieldy that it couldn’t be managed on a global level.

The next step is to reduce the 400 remaining workflows to four. Each will be supported by business logic that will allow customization within a context of standardization that would facilitate global process management.

The CoE is also going to be charged with very little data maintenance and focus more on proactively monitoring data quality and proposing solutions. That’s a role that didn’t exist before. The CoE staff will initiate cleanups based on materiality thresholds. It will then target areas with a potentially significant impact on the business, instead of waiting for problems to pop up.

Finally, DeWolf and his team of MDM experts are working on creating value metrics to replace traditional data-quality measures. For example, one metric DeWolf would like to introduce is linking data about the bills of materials accuracy to data about open sales orders. The idea is to measure the value (in terms of pending sales) that is at risk due to incorrect data. Erroneous bills of materials with open sales orders represent potential missed revenue. The idea here is to use business context to focus on what yields tangible business benefit. This is a non-traditional approach to master data quality.

There is an additional benefit to using value metrics: By translating data fields into value drivers, the MDM team moves the conversation with the business into a language that makes sense to them. If additional resources are needed to stop putting shipments at risk, this is a conversation that suddenly becomes possible.

Next steps

Next on DeWolf’s agenda is master data governance. Right now, the process owners are also the governors of the data, but they don’t have the time to do it. He wants to give the process and organizational structure time to settle in before assembling a data governance council. That piece will happen in 2018-2019. At the same time, Tetra Pak is already pulling in new kinds of data as part of other big data projects, creating data lakes (big reservoirs of varied data types) and considering the possibility of eventually selling data.

Another future goal is to extend the MDM model to other data areas where DeWolf feels the company could benefit, like people, brand, and category data.

DeWolf feels strongly that the project will retain its momentum because it continues to have strong support from Tetra Pak’s senior leadership. “Senior management may not understand the details, but they certainly understand the importance of MDM, and I can get an audience when I need it.” An important factor in maintaining that strong support is presentation style. “Speak with a focus on customer accounts,” DeWolf advises.

For more on how data management can benefit your business, see How To Use The Right Data At The Right Time For Better Customer Relationships.

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Nilly Essaides

About Nilly Essaides

Nilly Essaides is senior research director, Finance & EPM Advisory Practice at The Hackett Group. Nilly is a thought leader and frequent speaker and meeting facilitator at industry events, the author of multiple in-depth guides on financial planning & analysis topics, as well as monthly articles and numerous blogs. She was formerly director and practice lead of Financial Planning & Analysis at the Association for Financial Professionals, and managing director at the NeuGroup, where she co-led the company’s successful peer group business. Nilly also co-authored a book about knowledge management and how to transfer best practices with the American Productivity and Quality Center (APQC).

Fast – But Not Too Fast – Wins The Race In Supply Chain Management

Richard Howells

Bonnie D. Graham, host of The Digital Transformation of Your Supply Chain with Game-Changers podcast, opened her recent show by recounting the tale of “The Tortoise and the Hare.”

You know the story: A slow but steady turtle beats a swift yet arrogant rabbit in a footrace.

Bonnie used the Aesop fable to illustrate two points about supply chain management:

  1. If you respond too slowly to your customers’ needs, you risk being left behind.
  1. If you respond too quickly, you risk acting without the proper insight.

The truth is, you need to strike the perfect balance, responding in a timely fashion with sound information that adequately supports your response.

One of the panelists on the show, Eric Simonson, director of solution management at SAP, likened this to another well-known tale: “Goldilocks and the Three Bears.”

Your supply chain organization, he suggests, needs to respond to its consumers just right.

Don’t just respond – predict

Responding to the needs of your supply chain customers is one thing. Anticipating consumers’ needs is something else altogether.

“Basically, if we look back into what we’re trying to do traditionally in supply chain management and supply chain planning, specifically,” said guest Jeroen Kusters, senior manager of supply chain management at Deloitte, “is we’re trying to predict the future.”

He admits, however, that “we’re always a little bit wrong.”

How can we change this?

The key is gaining an optimal view of the information you have at your disposal. In addition to taking a deeper dive into your own data, it’s important to have some insight into your supply chain partners’ information. This will enable your company to respond earlier – with greater accuracy – and even help you predict future demand.

Supply chain in the year 2020 and beyond

At one point during the podcast, Bonnie asked her panel of experts what they think the future holds for supply chain management.

Jeroen envisions organizations better integrating their planning, response management, and other operations across the entire supply chain. This will allow companies and their partners to more easily share – and capitalize on – customer insight and other key data.

Eric foresees a world where digital collaboration is much more prominent.

“[M]aybe it’ll start with the supplier side of things,” he says, “and then, eventually … we can get to some of the customer collaboration type, too, to get some better demand visibility.”

With a more holistic view into what’s happening across the entire supply chain, your business is primed to provide well-informed, timely responses to ever-evolving consumer demands.

Srini Bangalore, managing director at Deloitte, believes the immediate future of supply chain revolves around digitalization. But his long-term outlook is more focused on cognitive intelligence.

“I look at cognitive supply chain as a 20-year journey,” he says, “where your machines and computing systems that you use within your supply chain have machine-based intelligence. They can learn, they can problem solve, and they can make decisions on your behalf in the processes in your extended supply chain. The role of a human being is to actually augment the machines.”

A first-rate lesson in digital response and supply chain management

As discussed on the show, predicting the future isn’t easy. But if you’re going to listen to anybody about what direction supply chain is headed in, it ought to be industry thought leaders like Eric Simonson, Jeroen Kusters, and Srini Bangalore.

Check out the entire episode of The Digital Transformation of Your Supply Chain with Game-Changers to hear more expert opinions on digital response and supply chain management from Bonnie and her panel of guests.

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Richard Howells

About Richard Howells

Richard Howells is a Vice President at SAP responsible for the positioning, messaging, AR , PR and go-to market activities for the SAP Supply Chain solutions.

McLaren Automotive: Racing Ahead With Real-Time Connected Intelligence

Richard Howells

McLaren Automotive’s entry-level 570S Coupé packs 562 horsepower that rockets the car from 0 to 60 mph in 2.9 seconds. But that’s nothing compared with the speed of the company’s real-time connected intelligence.

Based in Woking, England, McLaren designs and manufactures sports and luxury cars. Most are produced in-house at designated production facilities. And increasingly, the company relies on Internet of Things (IoT) technologies.

I caught up with Craig Charlton, CIO of McLaren Technology Group, in May at SAPPHIRE NOW, where we discussed McLaren’s IoT journey.

One strategy, four units, five transformers

McLaren is pursuing a single IT strategy: “to deliver core solutions, core platforms, and winning platforms.” But it needs to execute that strategy across four business units, each of which requires a different approach to IT:

  1. McLaren Automotive — Manufactures high-performance sports and luxury cars
  2. McLaren Racing — Races to win in Grands Prix and World Championships
  3. McLaren Applied Technologies — Applies advanced technologies and designs across markets as diverse as health and energy to achieve performance breakthroughs
  4. McLaren Commercial — Identifies and enriches partnerships to drive business success

The company is achieving its IT goals through its “Transformational Big Five:”

  1. Business platforms — Advanced business platforms support processes in each of McLaren’s four units.
  2. Cloud and mobility — With 2,800 of the company’s 3,400 employees on mobile devices, cloud is everywhere.
  3. Managed risk — By migrating from legacy systems, McLaren is reducing cybersecurity vulnerabilities and managing risk.
  4. People-centricity — IT is central to how McLaren’s people do business every day.
  5. Partners — McLaren has been co-innovating with SAP for more than 20 years.

Internet of (very fast) Things

But some of the most exciting IT at McLaren revolves around IoT. And as Craig explains, IoT is hardly new at McLaren. “We’ve been using IoT-type technology since 1993,” he says, “when we first put telemetry on our racing cars to analyze race performance.”

Today, at a typical race, the company has 150 to 300 car sensors tracking everything from tire pressure to brake wear to G-force. These sensors generate more than 100 GB of data every race weekend — producing 11.8 billion data points per season and 1080 race permutations in real time, so the race team can ask questions like, “How many times did Fernando Alonso pull 6G in the last race?” — and get the answer in two or three seconds.

“The data has truly transformed how we race,” Craig says. “Solutions like SAP HANA have allowed us to track billions of data points and look at historical data going back 24 years. In fact, we can analyze about 1 trillion data points.”

Fine-tuning race cars, transforming business models

What makes IoT mission-critical to McLaren is the ability to gain new insights to improve performance. By analyzing its Big Data, the company can identify nuggets that help it fine-tune its cars and be faster around the track.

But the company also expects to leverage real-time connected intelligence to improve the performance of its business. “IoT is going to change many organizations from being product-based to being service-based,” Craig predicts. “In the automotive industry, when we talk about autonomous cars, customers may be looking to buy a unit of travel rather than a car.”

For companies in the automotive and many other industries, business change is hardly slowing down. Real-time connected intelligence will help them stay ahead of the curve.

To learn more about McLaren’s IoT journey, watch Craig’s SAPPHIRE NOW presentation or listen to a one-on-one interview with Craig.

To see Craig and 50 other industry experts in person, attend SAP Leonardo Live, July 11 and 12 at the Kap Europa Congress Center in Frankfurt, Germany. The event will bring together a vibrant global community of up to 1,500 IoT, manufacturing, supply chain, R&D, and operations decision makers, influencers, analysts, and media. Learn firsthand from more than 50 SAP customer showcases how to connect IoT and core business processes to achieve digital transformation.

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Richard Howells

About Richard Howells

Richard Howells is a Vice President at SAP responsible for the positioning, messaging, AR , PR and go-to market activities for the SAP Supply Chain solutions.

Taking Learning Back to School

Dan Wellers

 

Denmark spends most GDP on labor market programs at 3.3%.
The U.S. spends only 0.1% of it’s GDP on adult education and workforce retraining.
The number of post-secondary vocational and training institutions in China more than doubled from 2000 to 2014.
47% of U.S. jobs are at risk for automation.

Our overarching approach to education is top down, inflexible, and front loaded in life, and does not encourage collaboration.

Smartphone apps that gamify learning or deliver lessons in small bits of free time can be effective tools for teaching. However, they don’t address the more pressing issue that the future is digital and those whose skills are outmoded will be left behind.

Many companies have a history of effective partnerships with local schools to expand their talent pool, but these efforts are not designed to change overall systems of learning.


The Question We Must Answer

What will we do when digitization, automation, and artificial intelligence eject vast numbers of people from their current jobs, and they lack the skills needed to find new ones?

Solutions could include:

  • National and multinational adult education programs
  • Greater investment in technical and vocational schools
  • Increased emphasis on apprenticeships
  • Tax incentives for initiatives proven to close skills gaps

We need a broad, systemic approach that breaks businesses, schools, governments, and other organizations that target adult learners out of their silos so they can work together. Chief learning officers (CLOs) can spearhead this approach by working together to create goals, benchmarks, and strategy.

Advancing the field of learning will help every business compete in an increasingly global economy with a tight market for skills. More than this, it will mitigate the workplace risks and challenges inherent in the digital economy, thus positively influencing the future of business itself.


Download the executive brief Taking Learning Back to School.


Read the full article The Future of Learning – Keeping up With The Digital Economy

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Dan Wellers

About Dan Wellers

Dan Wellers is the Global Lead of Digital Futures at SAP, which explores how organizations can anticipate the future impact of exponential technologies. Dan has extensive experience in technology marketing and business strategy, plus management, consulting, and sales.

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Why Millennials Quit: Understanding A New Workforce

Shelly Kramer

Millennials are like mobile devices: they’re everywhere. You can’t visit a coffee shop without encountering both in large numbers. But after all, who doesn’t like a little caffeine with their connectivity? The point is that you should be paying attention to millennials now more than ever because they have surpassed Boomers and Gen-Xers as the largest generation.

Unfortunately for the workforce, they’re also the generation most likely to quit. Let’s examine a new report that sheds some light on exactly why that is—and what you can do to keep millennial employees working for you longer.

New workforce, new values

Deloitte found that two out of three millennials are expected to leave their current jobs by 2020. The survey also found that a staggering one in four would probably move on in the next year alone.

If you’re a business owner, consider putting four of your millennial employees in a room. Take a look around—one of them will be gone next year. Besides their skills and contributions, you’ve also lost time and resources spent by onboarding and training those employees—a very costly process. According to a new report from XYZ University, turnover costs U.S. companies a whopping $30.5 billion annually.

Let’s take a step back and look at this new workforce with new priorities and values.

Everything about millennials is different, from how to market to them as consumers to how you treat them as employees. The catalyst for this shift is the difference in what they value most. Millennials grew up with technology at their fingertips and are the most highly educated generation to date. Many have delayed marriage and/or parenthood in favor of pursuing their careers, which aren’t always about having a great paycheck (although that helps). Instead, it may be more that the core values of your business (like sustainability, for example) or its mission are the reasons that millennials stick around at the same job or look for opportunities elsewhere. Consider this: How invested are they in their work? Are they bored? What does their work/life balance look like? Do they have advancement opportunities?

Ping-pong tables and bringing your dog to work might be trendy, but they aren’t the solution to retaining a millennial workforce. So why exactly are they quitting? Let’s take a look at the data.

Millennials’ common reasons for quitting

In order to gain more insight into the problem of millennial turnover, XYZ University surveyed more than 500 respondents between the ages of 21 and 34 years old. There was a good mix of men and women, college grads versus high school grads, and entry-level employees versus managers. We’re all dying to know: Why did they quit? Here are the most popular reasons, some in their own words:

  • Millennials are risk-takers. XYZ University attributes this affection for risk taking with the fact that millennials essentially came of age during the recession. Surveyed millennials reported this experience made them wary of spending decades working at one company only to be potentially laid off.
  • They are focused on education. More than one-third of millennials hold college degrees. Those seeking advanced degrees can find themselves struggling to finish school while holding down a job, necessitating odd hours or more than one part-time gig. As a whole, this generation is entering the job market later, with higher degrees and higher debt.
  • They don’t want just any job—they want one that fits. In an age where both startups and seasoned companies are enjoying success, there is no shortage of job opportunities. As such, they’re often looking for one that suits their identity and their goals, not just the one that comes up first in an online search. Interestingly, job fit is often prioritized over job pay for millennials. Don’t forget, if they have to start their own company, they will—the average age for millennial entrepreneurs is 27.
  • They want skills that make them competitive. Many millennials enjoy the challenge that accompanies competition, so wearing many hats at a position is actually a good thing. One millennial journalist who used to work at Forbes reported that millennials want to learn by “being in the trenches, and doing it alongside the people who do it best.”
  • They want to do something that matters. Millennials have grown up with change, both good and bad, so they’re unafraid of making changes in their own lives to pursue careers that align with their desire to make a difference.
  • They prefer flexibility. Technology today means it’s possible to work from essentially anywhere that has an Internet connection, so many millennials expect at least some level of flexibility when it comes to their employer. Working remotely all of the time isn’t feasible for every situation, of course, but millennials expect companies to be flexible enough to allow them to occasionally dictate their own schedules. If they have no say in their workday, that’s a red flag.
  • They’ve got skills—and they want to use them. In the words of a 24-year-old designer, millennials “don’t need to print copies all day.” Many have paid (or are in the midst of paying) for their own education, and they’re ready and willing to put it to work. Most would prefer you leave the smaller tasks to the interns.
  • They got a better offer. Thirty-five percent of respondents to XYZ’s survey said they quit a previous job because they received a better opportunity. That makes sense, especially as recruiting is made simpler by technology. (Hello, LinkedIn.)
  • They seek mentors. Millennials are used to being supervised, as many were raised by what have been dubbed as “helicopter parents.” Receiving support from those in charge is the norm, not the anomaly, for this generation, and they expect that in the workplace, too.

Note that it’s not just XYZ University making this final point about the importance of mentoring. Consider Figures 1 and 2 from Deloitte, proving that millennials with worthwhile mentors report high satisfaction rates in other areas, such as personal development. As you can see, this can trickle down into employee satisfaction and ultimately result in higher retention numbers.

Millennials and Mentors
Figure 1. Source: Deloitte


Figure 2. Source: Deloitte

Failure to . . .

No, not communicate—I would say “engage.” On second thought, communication plays a role in that, too. (Who would have thought “Cool Hand Luke” would be applicable to this conversation?)

Data from a recent Gallup poll reiterates that millennials are “job-hoppers,” also pointing out that most of them—71 percent, to be exact—are either not engaged in or are actively disengaged from the workplace. That’s a striking number, but businesses aren’t without hope. That same Gallup poll found that millennials who reported they are engaged at work were 26 percent less likely than their disengaged counterparts to consider switching jobs, even with a raise of up to 20 percent. That’s huge. Furthermore, if the market improves in the next year, those engaged millennial employees are 64 percent less likely to job-hop than those who report feeling actively disengaged.

What’s next?

I’ve covered a lot in this discussion, but here’s what I hope you will take away: Millennials comprise a majority of the workforce, but they’re changing how you should look at hiring, recruiting, and retention as a whole. What matters to millennials matters to your other generations of employees, too. Mentoring, compensation, flexibility, and engagement have always been important, but thanks to the vocal millennial generation, we’re just now learning exactly how much.

What has been your experience with millennials and turnover? Are you a millennial who has recently left a job or are currently looking for a new position? If so, what are you missing from your current employer, and what are you looking for in a prospective one? Alternatively, if you’re reading this from a company perspective, how do you think your organization stacks up in the hearts and minds of your millennial employees? Do you have plans to do anything differently? I’d love to hear your thoughts.

For more insight on millennials and the workforce, see Multigenerational Workforce? Collaboration Tech Is The Key To Success.

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