OUR GROUP: ROSHASMAWI BIN ABDUL WAHAB MOHAMAD RIFQI BIN MOHD RAZALI FERDAUS BIN AHMAD

CASE STUDY Creates a Single Version of the Truth from Its Data

THE BACKGROUND. World’s leading electronic manufactures Operates under Matsushita Electric Industrial Co. Ltd. Business cover all over the globe Market leadership in plasma TVs Well received marketing identity “Panasonic: Ideas for Life” Successfully carryout company’s presidents transaction Has many business entities (Panasonic Europe – 15 sales distributions, 14 manufacturing facilities, 5 research and development center and 7 administrative center) Low profit margin – 5%

THE CHALLENGE Increasing profit margin from 5 percent to 10 percent (by 2010) To carryout cost reduction (in high administrative cost) To increase sales. (*Panasonic cannot expected to increase price due to consumers expectation)

THE PROBLEMS So many different sources of data (due to it’s world wide operation) – lead to inconsistence, duplication and incomplete data. Variety of data format (fax, , regular mail) – contribute to inefficiencies and inaccuracies Different business unit/entities using their own pools of data. Creating common set of data for product to launch globally consume time and took considerable effort – allow competitors to infiltrate markets.

THE SOLUTION To improved data management by creating “ single version of the truth ” for it’s data system

HOW TO DO IT? Replace data management system from “pull” to “push” model for data dissemination – more consistent product rollouts and product information and customers do not become confuses while researching their purchases. Data consolidate and data systematic process – gain more control over the data.

WHAT TO USED? Using master-data –management (MDM) software from IBM’s WebSpehere line.

THE RESULT Within a year and a half, Panasonic Europe;  Reduce the time-to-market for a product from five to six month to one to two month.  Spending 50 percent less time creating and maintaining product information.  Improved efficiency by a factor of 5  Saving of € 1 Mil. per year  Sales increase by 3.5%

QUESTION 1: EVALUATE PANASONIC’S BUSINESS STRATEGY USING THE COMPETITIVE FORCES AND VALUE CHAIN MODELS.

Evolution based on:- (Porter’s Five Forces model) a) Threat of new entrants : b)Bargaining power of buyers: c)Threat from substitutes: d)Bargaining power of suppliers: e)Rivalry Implementing “single version of truth in data management strategy

Six Business Infrastructure Functions of the value chain model; 1.Research and Development 2.Design of Products 3.Services or Processes 4.Production 5.Marketing and Distribution 6.Customer Service

QUESTION 2: HOW DID PANASONIC’S INFORMATION MANAGEMENT PROBLEMS AFFECT ITS BUSINESS PERFORMANCE AND ABILITY TO EXECUTE ITS STRATEGY? WHAT MANAGEMENT, ORGANIZATION, AND TECHNOLOGY FACTORS WERE RESPONSIBLE FOR THOSE PROBLEMS?

No standard format and database rules to record the data (include photo, product specification and description, manuals, pricing data and point of sales marketing information Employee efficiency to suit data needed by country and region. Different tools used by employee – , fax, telephone There is no data uniformity and similarity in data management system Panasonic was overshadow by administrative cost

QUESTION 3: HOW DID MASTER DATA MANAGEMENT ADDRESS THESE PROBLEMS? HOW EFFECTIVE WAS THIS SOLUTION?

The master-data-management (MDM) address Panasonic problems by  Business process analysis – systematizes business process related to data  Data assessment - fix discrepancies among database  Data consolidation and reconciliation – merging disparate records into one authenticated master file, fix discrepancies among the database used by various departments  Data migration - fix data integration issues  Development of a master data

With this solution, Panasonic Europe, within a year and a half, has;  Reduce time- to-market for a product from five to six month to one to two month  Spending 50 percent less time creating and maintaining product information  Improve efficiency by the factor of 5  Saving estimated € 1 mil.  Sales increase by 3.5%

QUESTION 4: WHAT CHALLENGES DID PANASONIC FACE IN IMPLEMENTING THIS SOLUTION?

Challenge face by Panasonic in implementing this solution are;  Convincing the “traditionalists” to support data-sharing  Reorganizing workflow and Consolidating product information  Require clear master data management rules  Convincing the corporate office in Japan that their data management strategy deserved global adoption.