3M Global enterprise data warehouse ( gedw )

1. 3M Global enterprise data warehouse (gedw) Jennifer Dawn Dudley – BUS 550 Fall 2010

2. Brief History of 3m’s GEDW – Global enterprise data warehouse • According to a November 2000 Bloomberg Businessweek article ,3M grew from a modest seller of sandpaper to a $15.7 billion per year company that sells more than 50,000 products in 200 countries and has more than 70,000 employees • As of the calendar year end for 2009 the company sold $23.1 billion with more than 55,000 products in 200 countries and has more than 76,000 employees – 47% increase in sales

3. Brief History of 3m’s GEDW – Global enterprise data warehouse • Before 1995 3M was ignoring it’s customer service relationships by being organized into 50 different product centered divisions with their own IT groups, strategy, products and markets • Customers had to deal with a host of 3M divisions to purchase all the products they needed for their business

4. In 1995 3M restructured into 7 market segments • Industrial – abrasives, adhesives, construction, industrial tape • Transportation – aerospace, automotive, marine, traffic safety • Health Care – dental, drug delivery systems, food safety, infection prevention • Graphics and Safety - Privacy filters, presentation products, touch screens • Consumer and Office - ergonomics, mounting, packaging, Post –it products • Electro and Communications - communication technologies, electronics design • Specialty Material– home improvement, first aid, air cleaning, fly fishing • Each segment was charged with serving customers better and efficiently meeting their needs.

5. 3M Videos • Glass Bubbles • http://www.youtube.com/watch?v=T6ZBRoJdz9o&feature=related • Love story – story of post-its • http://www.youtube.com/watch?v=owXj_TWPI94

6. Global enterprise data warehouse is born • Alan L. Messerli of 3M started an initiative to build an integrated database that would help develop better customer relations by providing easy to get to sales and product reports – gets initial funding in mid 1996 • Before the GEDW was created it was easier to ask a customer how much it spent with 3M than to research the figures internally

7. Global enterprise data warehouse • 3M spent $30 million initial development costs + 2.6 million per year in maintenance • 3M is saving more than $10 million a year in maintenance costs of antiquated division systems • All reporting and decision support applications could be driven from a single, consistent source of data

8. Global enterprise data warehouse • More efficient and accurate sales reporting saves $2.5 million a year • Helps boost sales force productivity up 10% in 1999 to $220,000 per employee • 3M went from a product-centric to a customer-centric organization

9. Global enterprise data warehouse • 3M’s GEDW is the foundation for it’s CRM (Customer Relation Management) initiatives throughout the company • Before 3M had centralized data they were competing against themselves, one country or division against another because they could not accurately show who was buying what from where and at what pricing levels

10. Global enterprise data warehouse challenges • Five different platforms were tested and they had to have the following requirements: • The hardware had to be $2M or less, configured any way the vendor desired • The systems would have to respond to specific queries. • The process included (1) load the database and see how long it takes, (2) run the queries and see how long it takes and (3) scale up the number of users from one to 200. • NCR's Teradata was the only platform that completed the entire benchmark test.

11. Global enterprise data warehouse challenges • Messerli's team built the data model and the data standards according to what was needed for the future 3M organization, not according to what was currently done. • This meant that often there was not an exact match between the existing systems and the data model for the GEDW

12. Global enterprise data warehouse challenges • The effort positioned the GEDW for meeting long-term needs. Now that GEDW data standards exist, 3M finds that when new operational systems are designed, the GEDW data standards are used as the basis for data within the new systems. • The data management team spent more than 20 people years standardizing data globally. They created more than 1,000 tables and 3,000 data elements.

13. Global enterprise data warehouse challenges • The strongest resistance to the GEDW came from the IT groups, who were losing control of their data as it shifted decision-support applications away from the legacy platforms even though the savings from making this shift were significant and the data was of higher quality

14. Global enterprise data warehouse today • The GEDW includes data for every 3M order, shipment, customer and product. Direct sales, indirect sales (POS), price, gross margin, service metrics, demand, forecasts, inventory, supply plans, procurement, vendor and financial data are all included • Ultimately the GEDW team compromised on forcing all data into a set of completely standardized global tables. They now allow local users to put some of their own local tables in the warehouse to better meet local needs

15. GEDW AND THE GLOBAL CRM ARCHITECTURE • It is now clear that customers, markets and the competitive business environment are converging on the need for global decision support and global CRM • GEDW initiatives are ongoing, and additional users and applications are continually added • The GEDW team is now shifting from application training to more general global data warehouse training

16. The benefits of GEDW • The warehouse was justified based on • IT savings from eliminating dozens of independent data marts; • Re-engineering sales reporting processes and reducing the people resources required to report sales and reward sales forces • Value of understanding customers and markets across all 3M business units globally • Improving sales force and customer service productivity

17. The benefits of GEDW • Reducing 3M and channel partner cost of providing product information to customers (marketing communications cost) • Speeding the product commercialization process • Improving growth and profits by increasing customer satisfaction • Based on these and other hard benefits, the GEDW return on investment is 56 percent, substantially exceeding 3M's investment threshold

26. Lessons learned from GEDW • Selling the warehouse to the organization takes more than DBMS skills and experience • Designing a data warehouse requires very good people who understand the data and the business • A substantial savings can be achieved by creating a single, well-managed platform that serves as the single source of data for reporting and decision support • Do not underestimate the resistance to change • Do an extensive benchmark

27. Test questions • What does GEDW stand for: • Global enterprise data warehouse • Global enterprise database warden • Globally extrinsic document warehouse • Globacom enterprise data warship • How does the boy in the video make sure the girl gets his message: • He pledges his undying love • He gives her a wedding ring • He puts his message on a Post-It • He tells her girlfriend • The strongest opposition to the creation of the GEDW came from: • Management • Existing IT Staff • Clerical Staff • Mid Level management

28. References • http://www.businessanalysis.cn/tutorial/Idea.Group.Publishing.Organizational.Data.Mining.eBook-LiB/6518final/LiB0110.html • http://solutions.3m.com/en_US/index.html • http://www.business.illinois.edu/kpmg-uiuccases/cases/3M/3M%20Case%20Part%20B.pdf