Midwest User Group Meeting PLM MDM PDM CDM

Midwest User Group Meeting PLM, MDM, PDM, CDM, PIM etc. What Does It All Mean? September, 2011

Midwest User Group Meeting Agenda • What’s it all mean - Descriptions - Challenges Addressed - Value Proposition • Best Practices • QAD’s Product Offering • Recommended Actions

Midwest User Group Meeting What’s it all Mean 3

Midwest User Group Meeting Rudimentary Definitions • Many companies define master data as: customer, product, location, employee, asset • However, there is a lot of confusion around what master data is and how it is qualified. • Essentially there are 5 types of data in corporations: - Unstructured Transactional Metadata Hierarchical Master 4

Midwest User Group Meeting Why Should My Company Manage Data? • Because most data is used by multiple applications, an error in data can cause errors in all the applications that use it, for example; - An incorrect address in the customer master - An incorrect price on an item master can be a marketing disaster - An incorrect account # in an Account Master can lead to huge fines • Even if the master data has no errors, few organizations have just one set of master data. - Many companies grow through mergers and acquisitions. - This would not be bad if you could just Union the new master data with your current master data but in most cases; • Customer/part #s are assigned by the software • The chance that a customer/product has the same # in 2 databases is remote • Most likely equivalent parts are purchased from different vendors with different vendor numbers. 5

Midwest User Group Meeting Why Should My Company Manage Data? • Merging master lists together can be very difficult, but creating a clean master list has many benefits. - A consolidated bill saves money & improves satisfaction - Sending the same marketing literature to a customer from multiple customer lists wastes money & irritates the customer - Are your problem customers important to another division - Stocking the same item under different part numbers is a waste of money • The recent movements toward SOA and Saa. S make Master Data Management a critical issue. . 6

Midwest User Group Meeting Master Data Management (MDM) • Description - Technology, tools, and processes required to create and maintain consistent and accurate lists of master data. - Central repository for master data that can be accessed & utilized across applications. - Not Just a technology problem. . - Both Creating & Maintaining data. . 7

Midwest User Group Meeting Product Data Management (PDM) • Description - Process & tools to track and control data related to a particular product. • Technical specifications • Manufacturing & development specifications • Materials required to produce the product - Central knowledge repository for process and product history 8

Midwest User Group Meeting Product Data Management (PDM) • Challenges Addressed - Manage & track the creation, change & archive of all product information - Track costs associated with the creation and launch of a product - Ensures regulatory compliance • Value Proposition - Accelerate return on investment - Spend less time organizing & tracking design data - Improve productivity through reuse of product design data - Lower obsolescence cost - Enhance collaboration 9

Midwest User Group Meeting Customer Data Management (CDM) • Description - Encompasses the collection, analysis, organizing, reporting, and sharing of customer information throughout an organization. - This is usually accomplished through the use of a Customer Relationship Management (CRM) solution. 10

Midwest User Group Meeting Customer Data Management (CDM) • Challenges Addressed - Efficiently and productively respond to the demands of your customers - Build a "360 -degree view" of the customer • Value Proposition - Improve customer retention & satisfaction - Improve revenue • Increased cross-sell and up-sell successes • Improved sales forecasting 11

Midwest User Group Meeting Product Information Management (PIM) • Description - Synchronization and cleansing application - Connects and integrates disparate data from multiple Systems of Record. - Frequently used to distribute product data across companies & supply chains where different companies likely have different and often conflicting data definitions. - PDM verse PIM. . 12

Midwest User Group Meeting Product Information Management (PIM) • Challenges Addressed - Manage detailed product specifications. . - Address order entry issues due to inaccessible and poor product data - Proactively manage product relationships - Successfully track product changes - Speed the introduction of new products 13

Midwest User Group Meeting Product Information Management (PIM) • Value Proposition - Decrease Costs • • Reduced ordering errors Reduced cost to introduce new product Reduced sales team’s ordering time Reduced time to refresh website and catalog - Increased Sales • Reduced time to market • Better product information (print, web, etc. ) 14

Midwest User Group Meeting Product Lifecycle Management (PLM) • Description - Technology, tools, & processes used to enhance efficiencies related to a product’s billof-materials (BOM) - Specifically, PLM software enables manufacturers to optimize the management and evolution of a BOM throughout a product’s entire lifecycle – from conception to retirement 15

Midwest User Group Meeting Product Lifecycle Management (PLM) • Challenges Addressed - Manage obstacles with new product content and development process - Efficiently and effectively develop and manage complex information • Product designs • New product data • Service documentation • Regulatory submissions 16

Midwest User Group Meeting Product Lifecycle Management (PLM) • Value Proposition - Reduce Errors and Rework. . Improve Collaboration and Information. . Lower Development Costs Typical Results for “Best-in-Class” • • • 17. 5% reduction in product costs 75% reduction in ECO cycle times 25 -35% reduction in design cycles 10 -15% reduction in time-to-volume cycles 30 -40% reduction in part duplicates 15 -25% reduction in part search times 17

Midwest User Group Meeting Hierarchy MDM PLM NPD PDM PIM CDM 18

Midwest User Group Meeting Best Practices 19

Midwest User Group Meeting Best Practices Aberdeen Group, “Integrating the PLM Ecosystem” • 270 manufacturers surveyed about PLM Integration plans • 6 Key performance criteria evaluated • Shows gap in ability to profit from product innovation 20

Midwest User Group Meeting Best Practice: Integrating PLM Processes • Best-in-Class companies are going beyond basic one way flow of information. • Closed-loop processes with bi-direction flow creates significant advantages 21

Midwest User Group Meeting Recommended “Best-in-Class” Actions • • More likely to centralize product data Go beyond the basics Use multiple approaches Plan to adopt PIM and MDM Aberdeen Group, “Integrating the PLM Ecosystem”

Midwest User Group Meeting QAD Relevant Solutions 23

Midwest User Group Meeting QAD Product Data Management (PDM) Product Data Management • Fully Integrated module providing centralized control of key product information. . • Allows for product design and engineering changes to be quickly integrated into the system. . 24

Midwest User Group Meeting QAD Product Data Management (PDM) • Enables the management of complex product structures, formula process definitions, and product costs 25

Midwest User Group Meeting QAD Product Information Mgt (PIM) Product Information Management • Increase revenue by improving the customer experience in finding & understanding product information on-line • Achieve compliance when providing SC & Marketing product info to customers & partners • Reduce costs by centralizing all product info • Automate & distribute the process of collecting & changing product information to update subscribing systems 26

Midwest User Group Meeting QAD Product Information Mgt (PIM) • Ensures that product information is kept consistent across all information channels. . 27

Midwest User Group Meeting QAD Customer Relationship Mgt (CRM) Customer Relationship Management • • Provide visibility into the sales cycle Create accurate forecasts & track actual results Foster knowledge & understanding of the customer Coordinate and control information sharing across extended sales teams • Increase and optimize customer contact time 28

Midwest User Group Meeting QAD Customer Relationship Mgt (CRM) • Complete View of the customer • Best Pricing based on Quantity & Price Lists • Visualize key data through the built-in dashboard 29

Midwest User Group Meeting PTC Product Lifecycle Mgt (PLM) Product Lifecycle Management • • • Manage product versions & iterations View products through embedded 2 D/3 D viewer Build & maintain multi-level BOM configurations Enable workflow and management by exception Collaborate and report, and Archive product and project information 30

Midwest User Group Meeting PTC Product Lifecycle Mgt (PLM) • Provides a single source of product-related information with the control and configuration capabilities you need to collaborate across your extended enterprise 31

Midwest User Group Meeting Extended Data Management Solutions • Labor availability and skills information - Tugboat Software Labor Scheduling • Product quality information - Cebos MQ 1 Quality Management System • DSD/Route mgt & in-store data info - Numeric Computer Systems • Partner synchronization of product info - Lansa Data Synchronization Interface 33

Midwest User Group Meeting Conclusion

Midwest User Group Meeting Ten Best Practice for Data Management 1. 2. 3. 4. 5. 6. 7. Executive sponsor who is active and involved Business owns the data governance process & the project Strong project and organizational change management Use a holistic approach - people, process, tech & info. Ongoing & repeatable process, continuous improvement Ensure Mgt knows the importance of a dedicated team Understand your data model & how it integrates with your internal source systems and external content providers 8. Resist the urge to customize technology 9. Stay current with vendor-provided updates and patches 10. Test, test and then test again (Remember: This is a Journey - Not a Destination) 35

Midwest User Group Meeting Suggested Next Steps 1. Start Small, but Start!! 2. Build Carefully, and Measure as you go, and 3. Schedule an on-site Vision Engagement to let QAD help you develop a business case for data management improvements. Vision Engagement 1 Rapid value assessment 2 Map QAD potential solutions to business goals / strategies / tactics & processes 3 Recommendations & ROI analysis of high potential areas 4 Process QSCANs

Midwest User Group Meeting Questions? Hank Canitz Senior Director – Industry Strategy & Marketing HCC@QAD. com

Midwest User Group Meeting www. qad. com © 2010 QAD Inc 38