How Keurig Brewed a Better Path to SuccessMike Quinn & Eileen Hanafin: Keurig

Will Crump: DATUM LLC

SESSION CODE: CP1380

An innovative

technology-driven

values-based

personal beverage-system company.

A unified direction…

PURPOSE: Create the ultimate beverage experience in every life we touch, from source to cup – transforming the way the world understands business.

MISSION: A Keurig® brewer on every counter and a beverage for every occasion.

VISION: Become the world’s leading personal beverage systems company.

Growth drove call to action

Two primary growth axes

A Keurig® brewer on every counter and a beverage for every

occasion

INST

ALLE

D B

ASE

OF

BREW

ERS

1992 2007 2010 2014

5

The Gateway to Growth program will touch every aspect of our business and will change Keurig

Green Mountain “ways of working”. Business transformation will streamline, standardize and optimize our processes, enhance operational efficiency, and restructure IT architectures and IT strategies.

Transforming the way Keurig Green Mountain does business

Systems the way we interconnect & enable

Strategythe way we think & plan

People the way we lead & motivate

Processes the way we create value & manage

Transform the Business

– Competitive Position– Operations

• Common processes• Consistency• Shared services

– Technology• Supportable Platform• Standard Architecture• Scalability to support growth

“This Program is Mission Critical”

Foundation to Transformation

Gateway to Growth Structure

MASTER DATA MANAGEMENT

TRAINING

ORGANIZATIONAL CHANGE MANAGEMENT

BUSINESS INTELLIGENCE REPORTING

APPLICATION DEVELOPMENT

TECHNICAL SOLUTIONS AND ARCHITECTURE

SELL TO ORDER

DISTRIBUTION TO CASH

FORECAST TO PLAN

DESIGN TO PRODUCE

PROCURE TO PAY

RECORD TO REPORT

PROGRAM MANAGEMENT OFFICE

INTEGRATION LEADERSHIPPROGRAM MANAGEMENT OFFICE

EXECUTIVE LEADERSHIP

Info

rmati

on T

rust

wor

thin

ess

Time

ERP Data Readiness

ERP

Trig

ger

Dip in Data Trust

Mobilization Point

OrganizationData Gov. Policy

Stewardship

Tools

Recognition of Lost ROI

The Scramble How Could That Be? We Own It Let’s Start with Data!

RISK REDUCTION

VALUE CREATION

Mobilize Earlier!

The Trusted Information ERP Lifecycle

Mobilize your Organization at least 3 months before Go live

Engage business leaders early and update often

Socialize your MDM strategy early in the project

Document Key Decisions

Develop and deploy new Business Processes

Know and target the critical business fields

Spend focused time with your data validation resources

Establish an End User Network engaged in testing and training

Schedule business readiness reviews with executive leadership

Master Data Best Practices

Master Data Scope & Structure

Migration Team

Developers & Technical resourcesDevelopment of conversion objectsTechnical SpecificationsFunctional specificationsGeneration of validation and cleansing reportsConversion and cutover executionDefect resolution

Business Process Team

Process Definition DocumentsData cleansingDefect resolutionChange ImpactsBusiness processesStandard Operating proceduresJob functions & Security roles Organizational readiness

Operations Team

End User Network resourcesTesting resourcesFunctional TrainersBusiness process trainingBuilt a Central MDM teamStarted with existing resourcesBuilt capability

10

Order to Cash – Corporate Financials

Enabling Technologies Leveraged

11

SAP Data Services

Extraction• From ERP and

Data Construction Worksheets

Transforms and rule validations

Loads and Queries

SAP IDocsLSMWSQL• Identify

Cleansing• Validation

Reports

SAP Information Steward

Profiling to support Cleansing Efforts Post Go Live Reporting• Consistency Reports

(Compare counts and fields)

• Data Audits DATUM Information Value Management (IVM)

Design center for Business Rules – Standards – Resources – Operating model

Transition to a New Culture 20

13 –

Pre

sent

2000

– 2

013

Data Providers Data ConsumersMaster Data Management

Information Validation Feedback

New Product Introduction

Fix data

Plan, Procure Order

Ship & Bill

Share Trusted Data

Consuming processes Improved Visibility Better decisions Improved results

People: Clear Ownership Defined Processes & Standards Tools: Automation

Manage Rules & Standards Governance Processes Scorecard Quality Build Organization Capability Educate Data Providers

Govern

Hero Culture

Our Methodology Delivers a Consistent Process for Prioritizing Business Value and Information Governance

Insights

Information

Data

KPI’s / Measures

Our governance focus needs to be on the attributes and information that drive key insights – what we call a “Decision Data Model”

Selection of data at the system level (tables and fields) e.g., SAP ECC – VBAK – GBSTA – Overall Processing Status

As required to satisfy business stage gates and processes e.g.,

Order Fulfillment, Deliver Ready

To monitor the effectiveness of our processes e.g., Order Fill Rate

To shape strategy and drive continuous improvement e.g.,

Improving order cycle time

Critical Data

Tactical MDM Focus

Strategic MDM Governance Focus

Transition to a Governance Council and expand beyond Item.

Currently the GTG PMO. Transition to the ELT

Keurig Organization Framework

New Item Steering Committee• Establishes Business Process Strategy and Accountability • Aligns Data Management and IT efforts in support of business needs, corporate strategies

and initiatives• Provides decision making and oversight for governing master data• Provides direction and escalation support from the Master Data Governance Board

Executive SponsorsProvide strategic business direction and handles escalations

MDM Master Data Support Organization• Tactical data management activities aligned with processes, standards, and business rules• Govern master data within area of ownership• Provide support for master data applications

MDM Governance Organization• Defines data and processes consistent with Council’s strategy• Develops, monitors and prioritizes master data standards, maintenance processes and

quality metrics for measurement• Provides direction for data standardization and reliability improvement efforts

RoadmapAu

tom

ation

/Sta

ndar

diza

tion

Immediate Near Term Sustainment

Refine Data StrategyEstablish DG FrameworkDG Council and Org Model

Agree to the Data Roadmap and Success Criteria

Develop Shared Services >Data StewardsInstitutionalize an Operating ModelBusiness Rules, Standards & PoliciesKPI’s and Metrics for EDM and Business

2H - 20151H- 2015 2016 +

Leverage Info Steward / DS, MDG

Strategy/Framework

Refine and Adapt

Establish Data Governance Operating Model

Expand MDG and Sustain

Connect metrics to standards & rules to drive data trust and measure impact

Expand beyond initial key data objects

Refine, adapt, promote

Integration Managers were key to solving cross stream conflicts

Early identification of data standards, operating rules and owners

Define clear R&R between the migration and business teams

Never do too much testing – set entry and exit criteria

Freeze data sets for test cycles to assist in validation

Code change approvals by IT3 - freeze code changes by UAT

UAT mimics production cutover

Impose Data Moratorium during cutover and communicate broadly

Ensure validation process meets SOX requirements ( Really important)

Key Learnings

Take good care of your team!

“No business transformation is successful if you burn out your resources along the way “

Build black out dates into your schedule Everyone loves to be fed, lunch and dinner were a hit Encourage breaks, walks ,stress relievers

Data Best Practices

Given her unavoidable absence, Eileen is open to any follow up benchmark sessions for anyone who would like to further explore any part of our journey in more detail.

Contact Eileen for any follow up questions: Director, Master Data Business Process Eileen Hanafin Eileen.hanafin@keurig.com Cell 339-293-2510

Thank you John for pinch hitting for me.

Keurig Green Mountain

Thank you for Participating

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