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More than 25 percent of all coffee consumed in the United States today comes from Keurig Green Mountain single-serve K-Cups.

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More than 25 percent of all coffee consumed in the United States today comes from Keurig Green Mountain single-serve K-Cups. Keurig Green Mountain, headquartered in Waterbury, Vermont, has expanded so rapidly over the past decade that it has over 75 brands and over 530 product variet-ies of hot and cold coffees (including Green Moun-tain), teas, cocoas, dairy-based beverages, cider, and fruit-based drinks. It also partners with other vendors such as Dunkin Donuts, Newman’s Own, and Starbucks to package and sell their products in K-Cup pods. The company has 5,700 employ-ees globally and generated $4.2 billion in revenue in 2016. A business this large and complex must maintain a very large amount of data. Keurig Green Mountain’s meteoric growth called for a better approach to managing that data. The company had relied on what it called a “hero culture” for that purpose. Different groups in charge of providing data would set up the data they were responsible for, such as customer records, vendor records, or material master data. The department receiving the data would correct any inaccuracies to make sure that the right prod-ucts were produced, orders were placed, and items were shipped. The data providers were called “heroes” because their work was of such high value to the company. This way of working suf-ficed before Keurig’s growth spurt took off. How-ever, because the data corrections that were made downstream were not always conveyed to the data providers, the process was not repeatable and cor-rections might have to be made again the next time the data were used. This added to the time and cost to conduct business. Additionally, having different groups of “heroes” fix the data only for their specific business processes meant that man-aging data from a companywide standpoint was limited. By 2013 Keurig Green Mountain had out-grown its legacy ERP system and switched to SAP ERP. This gave the entire company the opportu-nity to review how it was managing data and to take the necessary steps toward master data man-agement, well-defined processes, standards for the maintenance of data across the organization, and comprehensive data cleansing. Master data management (MDM) is the organizational effort to create one single master reference source for all critical business data, leading to fewer errors and less redundancy in business processes. By providing one point of reference for critical infor-mation, MDM eliminates costly redundancies that occur when organizations rely upon multiple con-flicting sources of data. Keurig Green Mountain enlisted DATUM LLC to help it establish a strong enterprise data management framework. This was necessary to ensure that as the company’s volume of data increased, it wouldn’t return to disparate data management practices that would negate the effi-ciencies and benefits of the SAP ERP software. DATUM LLC is an information management solutions company based in Annapolis, Maryland, that provides software and consulting services. Its Information Value Management® SaaS (software as a service) translates business objectives into functional designs that improve quality and pro-cessing speed. DATUM supplies expertise on defining data-centric processes, information value, and accountability. By incorporating best practices, Information Value Management® provides a framework of data standards, governance rules, business metrics, and business processes that is useful for analytics, business intelligence, process improvement, performance management, ERP implementation, and managing big data. Information Value Management® (IVM) can be integrated with SAP® Information Steward software, which provides a single environment to discover, assess, define, monitor, and improve the quality of enterprise data assets. Information Steward’s functionality includes modules for dis-covering data characteristics and relationships, creating and running data validation rules, iden-tifying bad data and improving data quality, cata-loging data, defining business terms for data, and organizing the terms into categories, as well as data cleansing tools. Information Steward helps ensure companywide reporting consistency so that the company’s data stewards can easily moni-tor hanging data and make sure these changes are reflected in the organization’s master data man-agement. IVM can also be used with other SAP solutions for enterprise information management (EIM), including data quality assurance, mas-ter data management, content management, and information lifecycle management. Keurig Green Mountain has used Informa-tion Steward to implement data quality reports. As data are collected, the tool alerts users to missing required fields. This capability lessens the need for a “hero culture,” repeated errors, and repeated fixes to data downstream. Better data quality leads to more informed business decisions, and users of company data will have more trust in the data behind their business processes. Keurig believes the entire company will be aligned to anenterprise-wide data strategy and standards won’t be completed by 2020.

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These are question,

1. Identify the problem described in this case.

2. What people, organization, and technology issues had to be addressed in order to come up with a solution?

3. What were the business benefits of improving enterprise-wide data management for Keurig Green Mountain?

4. How did better data management improve operations and management decision making?