firmenich business case study governance … giraud_dr walid el... · 1 governance of dietary...

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GOVERNANCE OF DIETARY

STANDARDS AND PRODUCT

COMPLIANCE VIA DYNAMIC

& ADAPTABLE REGULATORY

DATA MANAGEMENT

Dr. Walid EL ABED

Dr. Anne GIRAUD

13 TH ANNUAL DATA QUALITY SOLUTIONS SUMMIT

October, 23-25 2012,

Santa Barbara, California

FIRMENICH BUSINESS CASE STUDY:

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INTRODUCTION

Global Data Excellence © 2012

Data Excellence Management©

Dr. Walid el AbedFounder & CEO

Global Data Excellence Ltd

Govern by value ©


Govern by value : the new paradigm shift

GDE : We are the Data Excellence company*

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Founded in 2007 by senior experts in

Global Business Excellence

Software company with a Swiss

culture of quality and innovation,

present in Switzerland, France, UK, US,

The Netherlands, Middle East, and

South Africa

* Gartner : GDE is a cool vendor that enables governance beyond master data.



A system embedding a Framework

to cultivate a value driven governance

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Data Excellence Framework (DEF©)

Systematic approach and method to

govern data as a company asset.

15 years of university and industry

research with practical execution in

large organizations.

Data Excellence Management System

(DEMS©)

Collaborative and revolutionary system

to fully support the implementation of

DEF capabilities.

* Top business schools (Paris Dauphine, IMD,…) are including DEF in their

leadership programs



The polarizer is the weapon

to maximize the business value of your enterprise data

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The data excellence rush

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http://www.philips.com/global/index.page


“A DIFFERENT GAME”

Information is transforming traditional business ”The Economist

For just one ingredient, vanilla, its American operation was

able to reduce the number of specifications and use fewer

suppliers, saving $30m a year. Overall, such operational

improvements save more than $1 billion annually.”

Nestlé’s Chris Johnson

“

“


Govern by value : the new paradigm shift9



Govern by Value : the new paradigm shift



Corporations are in a paradigm shift

from the industrial era to the information era…

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BASEL III CARBON

FATCA

ISO

SIX SIGMA

CLIENT DATA

SUPPLIER DATA

PRODUCT DATA

EMPLOYEE DATA

MARKET DATA

TRANSACTIONAL DATA

OPEN DATA

REFERENCE DATA

FINANCIAL DATASLABUSINESS

RULES

STANDARDS

REGULATORY

POLICIESBEST

PRACTICES

MASTER DATA

DODD-FRANK

MiFID

SOLVENCY II

UCITS IV

RULE

DATA

…tsunamis of rules and data are

now hitting the information era !

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BIG DATA



A golden opportunity

to cultivate your data asset for a sustainable success !

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TRUST

TRANSPARENCY

AGILITY

INTELLIGENCE



Govern by Value

What Value?



Corporate value is created

at the business transaction (your ultimate rendezvous)

“The business transaction is a

rendezvous between

shareholders and customers

where you convert expectations

into results

and when value is

created.”

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The Key Value Indicators are

your dashboard to enterprise value creation (or loss)

“The Key Value Indicator

(KVI) measures the impact

on the transaction :

a currency value for both

realised and missed results”

data

rule

s

KVI “A rendezvous (transaction)

fully succeeds when

available information (data)

meets expectations

(rules).”16



The enterprise role is to enable

flawless execution of the ultimate rendezvous along the

whole value chain

“Each enterprise function has critical intermediate rendezvous’ that each

contributes

to the

ultimate

enterprise

transaction

value”

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Govern by Value means

anticipate the flawless execution of each rendezvous

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FIRMENICH BUSINESS CASE

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FIRMENICH ESSENTIALS

Founded in Geneva, Switzerland, in 1895

Over 6’000 Employees

CHF2.9B annual Turnover FY2010

Since 1989, 7% average growth per year

Around 14% world market share

In our 5th generation of 100% family-owned leadership

The largest privately owned company in the fragrance and flavor industry

Vernon Sankey, Chairman & Patrick Firmenich, CEO

We have a world class reputation and a passion for smell and taste

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64 countries

26 manufactures

GLOBAL PRESENCE

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FIRMENICH ACTIVITY

FLAVOR

• Beverages: liquid carbonated, powder drinks, tea, coffee, alcoholic drinks, etc.

• Sweet Goods:bakery, desserts, cereals, dairy, etc.

• Savory Foods:snacks, soups, sauces, fats & oils, etc.

PERFUMERY

• Fine Fragrance:men’s and women’s perfume, eau de parfum, eau de toilette and eau de Cologne.

• Body Care:hair care, soaps, deodorants, body wash, cosmetics, etc.

• Home Care:surface care, laundry care, air care, etc.

INGREDIENTS

• Hedione®, Furaneol®, Iralia®,Muscone, Damascenone, Habanolide®, Polysantol®, Dynascone 10® and many more...

FIRMENICH CLIENTS:The world’s leading multinational manufacturers of beauty, household &

fabric care products, pharmaceuticals, food & drinks.

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GLOBAL CONTEXT

Muslim population ~1.8 bio, ~25 % of world population

35 % Expected increase in the next 20 years

Halal annual market : $ 650 billions / year

12 % in Europe and North America

Halal Supply Chain: is regulated by Halal standards

Is controlled by Halal certifying authorities

To Firmenich, developping a halal marketing model is:

A necessity A challenge An opportunity

For business For sustainability

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PARAMETERS OF THE EQUATION

X= Firmenich Halal Marketing Model

Muslim Population * n Halal Demands

Supply Capacity

Halal Compliance

y Products * z Operations

World

Compliance =Standard

Certification

n Rules + m Controls

c Data

Global

*

+

X =

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FIRMENICH STRATEGY

Process &

Operational

Control

Standard

Unification &

Data

Globalization

Systemic

Integration

Data

Management

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HALAL STANDARD

Raw Materials Screening

Raw Materials Sourcing

Product Design

Product Certification

ProductionCustomer’s

Demand

Halal standard is owned by certifying authorities who define the

guidelines, rules, constraints and limits that are applicable to

products (What) and processes: (How):

Ethanol content

Ethanol origin (fermentation, intrinsic, residual, etc.)

Animal origins (Dairy, Meat, Pork, etc.)

Biotechnology origins (Cells culture, yeasts, etc.)

Etc.

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EXTERNAL OPERATIONAL CONTROL/VALIDATION

Halal supervision

Halal certifying bodies: HFCE/IFANCA

MUI

Standards

Quality & Food Safety: ISO9001

FSSC22000/BRC

FPA-, GMA-Safe

HS&E: ISO14001

OHSAS18001

Compliance to

standard is

validated by

SGS, the

world’s leading

inspection,

verification,

testing and

certification

company.

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MANAGEMENT OF PRODUCTION PROCESSES

Halal

products

Products containing

pork

Intrinsically non-halal

products

PORK-FREE RESOURCE PORK RESOURCE

Good Manufacturing Practices & HACCP Allergen management

Cross contamination prevention

Labeling control

Hygienic design

CIP and QC validated cleaning procedures

Appropriate storage and conditionning

Production segregation

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PRODUCTS CONTROL

Halal Rules:

Ethanol content and origins (fermentation, intrinsic, residual, etc.)

Animal origins (Dairy, Meat, Pork, etc.)

Biotechnology origins (Cells culture, yeasts, etc.)

Etc.

Flavors, Fragrances and Chemicals complexity:

30-50 components average

Processing

Chemical reactions

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INGREDIENTS AND PRODUCTS MANAGEMENT

Each raw material is screened from

every vendor for compliance to specs:

> 200 individual pieces of

information on a standard

questionnaire

> 6000 available attributes

RuleMaterial

AttributesLimits

Allowed 100 %

Banned 0 %

Limited

Material attributes

Y %X %

Material

Y %<

= Allowed

X %<

= Banned

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FROM DATA MANAGEMENT TO GOVERNANCE

BY VALUE

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CONCEPT

Key Value IndicatorMeasured value and

impact of DEI

Data Excellence IndexMeasured compliance

Contextual PolarizationContext driven visualization of

DEI and KVI

COMPANY’S DATA Business Excellence Rule

Regulatory

Data

Business

Process

Contextual

Data

Master

Data

Transaction

Value

D

E

I

K

V

I

Proactive Data Governance

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REGULATORY BUSINESS CASE…

Business Excellence Requirements: Products that are required halal by customers must be certified halal.

Customer Production

Site

Product Product

Halal Status

Customer’s

Requirement

Sales Amount

($)

TCCC Firsa Lemon

Flavor

Halal

certified

Halal required 50’000

PepsiCo Firsa Strawberry

Flavor

Not Halal

certified

Halal required 25’000

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CONTEXTUAL POLARIZATION

Strawberry Flavor

Pro

duction S

ite

TCCC

PepsiCoLemon Flavor

Firsa

DEI 0 %

KVI 0

0 %

DEI 100 %

KVI 50’000

100 %

DEI 100 %

KVI 50’000

100 %

DEI 0 %

KVI 0

0 %

DEI 50 %

KVI 50’000

67 %

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EDM IN THE CONTEXT OF REGULATORY DATA

GOAL

Ensure compliance to standards and regulations in a pro-active and sustainable way

Identify and quantify risks for compliance to regulations

Identify the issues, prioritize and fix them

STRATEGY

Shift from data management to dynamic data governance by value

MEANS

Achieve alignment between business and data

Measure the value and business impact of data

firmenich business case study governance … giraud_dr walid el... · 1 governance of dietary...

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