Canadian Tire strategy for getting in control of Master Data

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Canadian Tire strategy for getting in control of
Master Data
Ayad Azzarouk Enterprise Architect Canadian Tire
Corporation ayad.azzarouk_at_cantire.com
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Agenda

• Introduction
• The Strategy
• Supporting components of the strategy
• Master Data Governance Policy
• Business Data Model
• Architecture
• Master Data entity change plan
• Where are we now?
• QA

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Canadian Tire

• Founded 1922
• Canadas largest retailer with more than 1,000
  stores and gas bars coast-to-coast
• Business operations in most major Canadian cities
• 48.000 employees working in the retail, financial
  services, petroleum and apparel businesses
• 10 Bill. CAD (6.9 Bil. ) in turnover. 558 Mio.
  CAD (390 Mio. ) in earnings.

More than 455 stores from coast to coast.
Offering customers a large selection of national
and retail brands within automotive parts,
accessories and service sports and leisure
products and home products.
Canada's largest supplier of unisex apparel,
offering an extensive collection of business
casual, weekend and work wear and accessories for
men and women. more than 325 stores across Canada
Automotive parts specialty chain with 47 stores
designed to meet the needs of major purchasers of
automotive parts - professional automotive
installers and serious do-it-yourselfers.
Offers a variety of financial products, primarily
branded credit cards, that give Canadian Tire
customers a choice of payment options, as well as
increased loyalty rewards.
Canada's largest independent retailer of gasoline
with more than 250 gas bars and more than 55
Simoniz car washes in Canada.
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Canadian Tire interest in MDM
Master data Is a key component of doing
business it is employed throughout Canadian Tire
processes from merchandising to procurement to
point of sales transactions. It describes our
core business entities (eg. Customers, vendors,
partners, products, materials, locations,
employees, chart of accounts, codes, etc.).
Master data is considered to be descriptive and
relatively static compared to transactional data.
Master data management (MDM) Is the practice of
gaining control of the organizations most
important and commonly shared enterprise
information assets. MDM solutions Are designed
to manage master data throughout operational
transactions and maintain a single operational
view, which serves as the system of record for
this data.
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Challenges affecting business on all levels
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Example123-12-12-1 WD-40 oil 250ml canOn deal
as a 400ml can, Same product number
Operational Challenge
Jan-07 to Apr-07 Brampton and AJ Billes
Rework vs. receiving 15.7
250 ml
400 ml
Picking Warehouse worker has to know that the
400ml can is on deal. Otherwise the 250ml can is
picked and packed.
Dealer The dealers warehouse cannot fit the
larger size manual work and repacking.
Transportation Number of pallets increases due to
volume same order amount. Rework fixing
over-height, overhanging pallets.
Goods received Boxes are bigger and cannot be
loaded on truck. Products Left On Dock.
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Technology challenges

• Master data is embedded in business applications
  which were defined to suit legacy processing
  requirements, and further complicated by 2 facts
• many of the application exists on technology that
  are not easily modified to support new
  requirements. ( existing inter-dependency and
  constructs)
• no measured advantage or disadvantage for a
  business initiative to take on the effort to
  manage the change on an organizational scope
• New applications are begin introduced but
  implementations are constrained by the above
  challenges, resulting in bolt on and EUC
  solutions to address functionality and data gaps.
• A business transaction system package was
  acquired to fulfill Canadian Tire MDM enterprise
  needs, however
• The package and implementation addresses mainly
  the merchants aspect.
• The implementation does not have the capacity to
  tackle the Master Data Management practice.

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Interdependency multiplies the complexity, scope,
and cost of projects
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• The bad news is
• There is no silver bullet for master data
  challenges.
• We cant buy a technology that will fix the
  problems.
• The good news is
• We have a strategy to get in control of Master
  Data

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Control of Master Data at Canadian Tire

• Organizational Scope
• The original scope was defined as all of Canadian
  Tire, including participants from all SBUs
  (Corp, CTR, PartSource, Petroleum, CTFS MWW).
• This scope was tested using the following
  criteria
• The level of Master Data currently shared across
  SBUs
• Plans to share data across SBUs based on the
  strategic direction of Canadian Tire
• It was determined that data was, to a large
  extent, not shared or planned to be shared beyond
  CTR, CTREL and PartSource and there was no
  indication from the corporate strategy that this
  would be a requirement in the near future. Hence,
  the organizational scope for the project was
  adjusted to CTR, CTREL and PartSource.

Decision
SBU Focus
CTR
Corp
PartSource
Petroleum
Original Scope Original Scope
CTR MWW
PartSource Petroleum
CTFS Corp
No apparent strategic need to share master data
across all SBUs to date.
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Master Data Entity (MDE) Scope

• Three key areas were identified as the highest
  priorities for the project to include in its
  scope. They are
• Product
• Vendor
• Store

MDE Candidate MDE Candidate
Competitor Product
Organization Store
Customer Vendor
Dealer Warehouse
Employee Trade Area
MDE Focus
Product
Store
Vendor
Assessment
Assessed by - Usage across systems processes -
Priorities (Risk, Benefits, Complexity)
As of the 2nd half of 2009 Customer and Supply
Chain Nodes are becoming business priority
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Implementing A MDM practice

• Implementing Master Data Management successfully
  requires
• Master Data ownership and accountability must be
  clearly defined.
• Master Data must be commonly defined amongst
  those who use the data.
• Master Data needs to be managed and used
  consistently across both business processes and
  IT systems.
• Technology must enable Master Data to be readily
  available to any IT system or business process
  that requires it.

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Core Strategy Element I Implement a governance
structure around Master Data Entities - MDE

• Organize master data governance by MDE instead of
  functional areas.
• Assign ownership and accountability at entity and
  attribute level within the business.
• Monitor and hold people accountable for the
  quality of the data.
• Integrate existing data stewardship as part of
  the entity based governance execution.
• Incorporate master data considerations into
  inform decision making within the organization.

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Core Strategy Element II Focus on Vendor,
Product, and Store entities

• Ensure a holistic view (across all relevant
  business functions) on requirements definition
  for designing and building out each of the MDEs.
• Within an entity, focus on attributes that are
  shared across business areas.
• Design and implement changes to business
  processes and IT systems by addressing problems
  at the source.
• Develop entity specific detailed plans for
  getting in control of Master Data.
• Implement changes in a series of controlled steps.

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Core Strategy Element III Establish an
authoritative source for Master Data

• Implement entity focused repositories that serve
  as data hubs for all IT systems that require
  Master Data.
• Ensure that data in the Master Data repositories
  builds only on ratified business definitions.
• Replace or remove off-strategy data integration.

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• Supporting Components

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Supporting Components
Master Data Management
-underlines the commitment to reach the
strategys goal -ensure protection and
management of the prioritized MDEs -main
enabler to get in control and sustain the
required Master Data.
Directs -how built IT systems. -how to
integrate data in support of the Master Data
Strategy.
Guides -how we design data integration -how we
design operational systems -how we design
reporting analysis
outlines the steps required to move forward in
controlling Master Data in CTR, CTREL and
PartSource
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What components are shared?
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Master Data Governance Policy

• The master data governance model and principles
  are comprised into a formal Master Data
  Governance Policy.
• The policy introduces principles, roles,
  ownership and accountabilities and is in
  alignment with the Board level Information
  Management Policy.
• A policy is put in place to ensure protection and
  management of the prioritized MDEs.
• The policy serves as an enabler to get in control
  and sustain the required quality in Master Data
  quality.

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Master Data Governance Purposed Model
A Master Data Governance Council consists of CTR,
PS and CTREL executives, and is formed to provide
support and strategic direction for the Master
Data Governance Policy. The council also serves
as the ultimate point of escalation in Master
Data related issues.
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Assign ownership at the attribute level
ILLUSTRATIVE
Executive Entity Owner defines the entity as a
whole
Executive Entity Owner (Vendor)
Business Data Owner A
Business Data Owner B
Business Data Owner C
Number Name Address Date Added . . . FOB . . . Currency Terms . . .
Marketing Marketing Marketing Marketing Marketing Supply Chain Supply Chain Finance Finance Finance
Attributes are defined and owned by different
business areas
Vendor Entity

• Distributing and grouping of attributes enables
  ownership to be assigned within the relevant
  areas of the organization
• A single person is still needed to define and
  endorse the entity as a whole

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An illustrative example of Master Data governance
focusing on the Vendor entity
ILLUSTRATIVE
Master Data Governance Policy Owner
The owner of the policy and the Business Data
Model
Vendor
The Owner of a Master Data entity
Executive Entity Owner Reg Mclay (VP Business
Development)
The Owner of the data maintenance process for a
subset of attributes
Entity level
Business Data Owner (Marketing) Mike de Paul
(Director, Imports)
Business Data Owner (SC) Anne McCourt (Director,
Order and Info Mgmt)
Business Data Owner (Finance) Gary
Conway (Director, Fin. Sys. Info Mgmt.)
Attribute level
Data Custodian Tanya Fitzgerald (Manager,
Ordering Operations)
Data Steward Bruce Harper (Operations Support
Team Lead)
The protector of data quality within his/her field
The expert on data within his/her field
Data Producer Helen Troiani (Placing Deal
Coordinator)
Enters and maintains data
New role (not headcount) Existing or modified
role Line Virtual
Note Names have been used for illustrative
purposes only
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Establish governance oversight and coordination
roles
Position roles with Policy Owner
Master Data Governance Council (including CIO,
CTR, PS CTREL Exec)
Master Data Governance Policy Owner
Evangelist
Governance Coordinator
Executive Entity Owner Glenn Butt (Store)
Executive Entity Owner Reg Mclay (Vendor)
Executive Entity Owner Duncan Reith (Product)
Business Data Owner
Business Data Owner
Business Data Owner
Business Data Owner
Business Data Owner
Business Data Owner
Data advisory council
Data Steward
Data Steward
Data Steward
Data Steward
Data Steward
Data Steward
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Master Data Principles

• The objective of the principles is to support the
  strategic direction and to make informed
  decisions not to pursue the principles at any
  costs.

1. Master data must have ratified definitions
2. Master data must have governance roles and
   responsibilities assigned
3. Master data quality issues must be addressed at
   the source of the problem
4. A Master data attribute must only have one System
   of Record (SOR)
5. A Master data attribute must only have one MDR
   and must only be source from there
6. Master Data definitions should align to
   industry/public/de-facto standards unless a
   proprietary definition provides better business
   value.
7. Master Data attribute could have Local or Shared
   relevance, which needs to be determined before
   being added to any IT system
8. Master Data must align to existing Data
   Principles
9. The same Master Data must be identifiable across
   multiple IT Systems

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Business Data Model
The Business Data Model is required to house all
ratified Master Data definitions

• The Business Data Model will our guide on how we
• Design data integration
• Design operational systems
• Design reporting analysis

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Logical Architecture

• A central Master Data Repository (MDR) component
  and a dedicated System of Entry are introduced.
• The MDR serves as the hub for systems requiring
  master data.
• In a physical world there can be several MDR
  components.
• The dedicated SOE component is devoted to data
  entry and storage for a set of attributes.
• The SOE and MDR can be the same physical system
  but it doesnt have to be.

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Canadian Tire MDM eco systems

• Attribute Maintenance
• Attribute maintenance will be distributed among
  business transaction systems.
• A master data attribute will be maintained only
  in one system.
• A dedicated system of entry might be introduced
  for the sole purpose of data entry without
  operational logic. This is intended to provide
  flexibility in deciding on where to place an
  attribute.
•  Master Data Repository (MDR)
• Logically there will be a Master Data Repository
  per Master Data Entity (MDE).
• The MDR will hold all shared master data
  attributes for an entity.
• The MDR will be the source of shared master data
  to all down stream application.
• The MDR assigns a common Master ID that is mapped
  to every source master record
• The MDR must consume published data changes from
  individual systems that maintain shared master
  data.
• Integrating Master Data 
• Routing transformation will be through the CTC
  integration layer

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Roles characteristics

• Dedicated system of entry
• Role
• Manages data entry for a set of attributes
  through an interface
• New attributes can be added as necessary
• Characteristics
• Data entry for a small set of attributes for an
  MDE with simple data validation and minimum
  operational functionality.
• Must accommodate addition and modification of
  attributes.
• Does not allow for direct data access, an
  interface must be used.
• There can be more than one such component
  physically, potentially one per MDE.
• Publish data change events for the purpose of
  data synchronization integration

• Master Data Repository
• Role
• Centralized data provider for shared Master Data
  attributes to support operational processing
• Becomes the source of master data to all down
  stream IT systems.
• Characteristics
• All shared attributed for a given MDE must reside
  in the MDR.
• Consume publish data change events for the
  purpose of data synchronization integration
• Downstream applications must only source shared
  master data from the MDR.
• The MDR controls the assignment of a common
  identifier for new Master Data records.
• Contains mapping between the common different
  systems keys at the record level.
• Enable in out bound data synchronization. (RT
  Batch)
• Support on demand master data requests

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Master Data Management Integration Platform
(Combined)

• Illustration of how the Master Data architecture
  and the Integration architecture works together

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Master Data Change Plan

• Outlines the steps required to move forward to
  get in control of Master Data in CTR, CTREL and
  PartSource.
• The change plan consist of 4 tracks in order of
  importance
• Central management Track
• Vendor Track
• Product Track
• Store Track

Getting in control step
Planning

• Detailed attribute/system/process analysis
• Define requirements
• Define common definitions and data model
• Assign Governance roles
• Design data quality KPIs
• Design entity change plan

• Design Develop Implement
• Integration
• Data harmonization
• Migration
• Maintenance processes / workflow
• System of Record
• Data quality monitoring
• IT system changes

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Where are we now?

• Current implementation approach
• Based on business functionality first and
  associated data
• Focused on program or initiative functional
  requirements

Strategic initiatives underway or completed
Strategic initiatives underway or completed
Vendor
Product
Vendor Management
Assortment Management
Store
Price management
Automotive management system
Parts Data Management
Legacy Simplification Decommissioning
Location (Store DC)
Vendor
Product
Product
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Ayad Azzarouk Enterprise Architect Canadian Tire
Corporation ayad.azzarouk_at_cantire.com
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Data Types
Operational Systems
B.I. Systems
Transactional Data
P.O., Invoices, Sales
Master Data
Analytical Data
Transactional Data
Consistent, accurate master data, synchronized
across applications with controlled data
maintenance
Business functionality Operational reporting
Consistent, accurate, integrated data for
analysis and reporting
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MDM components or capabilities

• Ownership Stewardship
• Governance Master Data Governance is the
  authority that decides how master data is
  maintained, what it contains, how long it is kept
  and how changes are authorized and audited.
• Data Stewardship Stewards are appointed by the
  owners of each master data entity they have
  knowledge of the data and business rules.
• Business Rules Master Data Stewards establish
  common business rules for updating and
  maintaining master data in each domain.
• Entity Life cycle Master Data Stewards define a
  workflow for creating and updating their master
  data according to the Business Rules.
• Platform
• Master data repository and services
• persists and maintains the authoritative master
  data record for a master data entity, such as
  customer or product, as well as for the
  relationships between them. Provides data and
  application services and logic that can update
  and access master data held within the database.
  Also contains logic for composite business
  services that represent business processes (for
  example, adding a product or a location).
• Consistent Unique ID Service Assigns a common
  Master ID that is mapped to every source master
  record. This cross-reference is maintained in the
  Master Data Repository.
• Business level services Provides services to
  integrate master data into business processes of
  each business unit.
• Master Data Integration Services Exposes common
  data integration services for creating, updating
  and synchronizing master data with other
  operational and analytic systems.
• Security authorization Controls transaction
  and attribute level authorization, as well as
  user access to critical master data.
• Events configuration and notification Detects
  transactions on master data (updated, added or
  deleted) or other events such as date driven
  events

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Master data management Target State
configuration
scope
Master data sharing scope