CASE STUDY

Data Governance for Global Product & Automation

CLIENT:

Automation and Testing Company

EMPLOYEES:

10,000+

INDUSTRIES:

Manufacturing

SERVICES:

Data Governance Advisory
Enterprise Data Strategy

PLATFORMS:

ABOUT:

This semiconductor manufacturing company, specializes in creating automation equipment for testing and industrial applications. Their innovations include smart devices, life-saving medical equipment, data storage systems and robotics. Their advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as designed. Their products are exported across the world.

CHALLENGE:

Navigating the complex landscape of exporting regulations is a critical aspect for organizations engaged in developing and manufacturing automation equipment, particularly when catering to a global market.  Global stringent regulatory frameworks such as the Military End User List (MEU) contribute to the complexity. The MEU, established by the U.S. Government identifies foreign parties that are prohibited from receiving items as they could be considered “military end users” and represent an unacceptable risk of use in or diversion to a ‘military end use’ or ‘military end user’ putting the US at potential risk.

For this organization, compliance with these regulations necessitates filing export licenses, a task fraught with difficulties due to inherent data challenges. The company faced a formidable obstacle in definitively identifying their recipients and the recipient’s end user, leading to a substantial and labor-intensive research and manual data assurance effort.

The repercussions of falling short of compliance are significant, with potential fines looming large. In this context, the inability to pinpoint any manufacturer linked to a restricted country or entity with a delivery to an MEU could have severe consequences for this organization.

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SOLUTION:

What we delivered:

The business impact was in mitigating the financial risk exposure associated with noncompliance. The stark reality for this organization was that non-compliance posed a 100% impact on the business, making the need for a robust solution imperative.

  • Utilizing MDM to obtain the identified critical business elements, analytics are performed to vet all parties related to an order before the product leaves the shipping dock. This proactive measure significantly reduced the risk of regulatory failure.
  • The tangible outcome was a more guaranteed path to compliance, providing a stark contrast to loosely defined measures. The strategic alignment of critical data elements and the meticulous vetting of all parties through analytics not only ensured compliance but also positioned the organization for success in the face of regulatory challenges. The business benefits were twofold: the elimination of financial risk exposure through compliance and the assurance of a seamless business operation, where success equated to no financial repercussions tied to regulatory adherence.

How we delivered:

In the pursuit of becoming data-driven and ensuring compliance with stringent regulatory measures, this organization enlisted the expertise of D3Clarity to lead their governance initiative. The primary objective was to unravel the complexities surrounding all parties involved in a purchase to navigate the intricacies of MEU legislation.

D3Clarity adopted a strategic data approach, placing a special emphasis on root customer analysis to comprehensively understand the transfer of control. Despite the organization’s established data management landscape, a crucial gap existed between technology and business processes. The solution involved a meticulous Critical Data Element (CDE) alignment process, delving into the nuances of each CDE needed for MEU compliance, its definition and its practical application.

Recognizing that all data is not equal, D3Clarity’s engagement reenforced the importance of being rigorous in the governing of critical data elements and ensuring their fitness for intended use across the enterprise. This approach was pivotal in establishing processes that enabled Teradyne to govern and maintain data appropriately, shedding light on the roles of external entities – including buyers, receivers, owners, service organizations, financiers, and logistics – in the sales process for any given equipment or component.

The delineation of processes played a vital role in ensuring that data was governed and leveraged effectively to comprehend the diverse roles external entities played in the sales cycle. This comprehensive understanding empowered the organization to identify areas for improvement, making their compliance efforts more robust and well-defined.

D3Clarity’s approach was to moderate the discussions and guide the internal stakeholders on how to progress beyond traditional data management, providing a roadmap to not only enhance the quality of CDEs but also to align them strategically with the intricacies of the business processes.

RESULTS:

Deliverables:

Business Value:

This case study delves into the intricate journey of a global semiconductor manufacturing company as they tackled data challenges head-on to ensure not only the success of their business but also adherence to crucial regulatory requirements.  D3Clarity’s approach translated into a tangible and quantifiable safeguard for the company’s financial well-being and operational success.

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