atelier ibm avec témoignage l'oréal - part 2

TCP-5162B - Case Study:Enhanced Product 360 at L'Oréalwith InfoSphere MDMand Watson Explorer

Las Vegas - 10/29/2014

Session speakers

Xavier Rodriguez Program Director – L’Oréal

Email : xavier.rodriguez@loreal.com

Marc LegrouxExecutive Architect – IBM-GBS

Email : marc.legroux@fr.ibm.com

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Abstract reminder

� L'Oréal is a total beauty care company that combines the latest in technology with the highest in quality for the ultimate in luxury beauty

� l'Oréal selected InfoSphere Master Data Management (MDM) to support their product information management (PIM) needs

� Attendees will get a deep understanding of the L'Oréal group's MDM PIM solution including business challenges and Lessons LearnedAttendees will get insight into the architecture including ERP interfaces as part of a full global deployment

� The session will also introduce the Enhanced Product 360 leveraging IBM's Watson Explorer in conjunction with InfoSphere MDM to provide a full view of both structured and unstructured data related to a single product

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Agenda

The L’Oréal Group

Product Information Management

transformation project

Product 360°

Lessons Learned

1

2

3

4

The L’Oréal Group

Our business One mission

One ambition Values

One strategy

The L’Oréal Group

Ethical principles

Beauty

Offer all women and men worldwide the best

of cosmetics innovation in terms of

quality, efficacy and safety to meet the infinite

diversity of beauty needs and desires

all over the world.

Win over one billion new

consumers

Passion, innovation,

entrepreneurial spirit, open-

mindedness, quest for excellence

and responsibility

The universalisation of

beauty

Integrity, respect,

courage and transparency

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The L’Oréal Group : 27 international brands *

*International brands with annual sales of more than 50 million euros*International brands with annual sales of more than 50 million euros

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The L’Oréal Group : 2012 Key figures

stCOSMETICS GROUPWORLDWIDE

611 PATENTS REGISTERED IN 2012

22.5 BILLION EUROS OF SALES IN 2012

130COUNTRIES

72,600EMPLOYEESINTERNATIONAL

BRANDS(1)

27

(1) International brands with annual sales of more than 50 million euros

10

The L’Oréal Group : 2012 consolidated sales by division

L’Oréal Luxe

Consumer Products

Active Cosmetics

Professional Products

51,5 %

10,713 M€

26,8 %

5,568 M€

14,4 %

3,003 M€7,3 %

1,528 M€

% of cosmetics sales / million euros

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New MarketsOf which: 20.6% / 4,287 M€ Asia, Pacific8.8% / 1,827 M€ Latin America6.7% / 1,405 M€ Eastern Europe3.3% / 683 M€ Africa, Middle East

Western Europe

North America

The L’Oréal Group : 2012 consolidated sales by geographic zone

39,4 %

8,202 M€

35,6 %

7,400 M€

25 %

5,211 M€

% of cosmetics sales / million euros

Product Information

Management

transformation project

Context

Retailers

(Carrefour, Walmart,

Sephora…)

Affiliates

(CPD France, LUXE UK, …)

MSL (Market Supply Log)

(CPD EUR, LUXE EUR, …)

Plants

(Rambouillet, …)

MarketingResearch & Innovation

Dev. Pack.

x 280(70 countries x 4 divisions)

x 42x 10

L’Oréal internal processes

Elixpedia scope

Local

products

management

International

products

management

Consumers

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Shampoo Elsève Hidramax Used by Mkt, Consumer

7891234567891 GTIN 13, Used by Client, Consumer

H1234500Internal code, used by Supply Chain

Controlling

P2142210Product Hierarchy, used by

Controlling, Mkt

44559Retailer Brasil Code, Used by

Retailer purchasers, Customer Care

Product definition

Key Use

15

Example of non quality issues

MSL Affiliate

Inaccurate product information means higher costs for our distribution partners,

which impacts L’Oréal in many forms.

Weight & measurements data

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Elixpedia

Significant savings through data quality improvement

Align product information across all parties in extended Supply Chain : operational interruptions caused by poor information are disappearing

Key enabler for many strategic cross-functional initiatives

ObjectiveImprove L’Oréal operational results through leveraging product information

Benefits

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As Is codification landscape

19 SAP hubs for Affiliates� 2 in North America

� 8 in Europe

� 3 in Latin America

� 6 in Asia/Pacific

7 solutions for MSL� 1 in North America

� 4 in Europe

� 1 in Latin America

� 1 in Asia/Pacific

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� Aims to be L’Oréal finished goods referential

� Will rely on IBM MDM CE solution

� Will contain both:

� MSL catalogues for international finished goods

� Affiliates catalogues for international/local finished goods

In a few words

� Unify existing finished goods data models

� GS1 compliance

� Extend finished goods data model to cover international and local ambitions

� Increase data quality

� Optimize productivity (process harmonization)

� Data quality manager empowerment

What is ELIXPEDIA ?

ELIXPEDIA objectives

GS1 : Global Standards

� All finished goods: sold SKU, POS1, POS2, invoiceable services

� All entities: Plants, MSL and Affiliates

ELIXPEDIA scope

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Data model

Network dataPublishing Date or DGAF

Suscribing Entity CodeArtwork data

Formula Infos or Packaging

Language Code

General product

features

Internal Product Code or

Localised Country of Origin

Safety & security data

– cu & formulae

Maximum Transport

Temperature or Aerosol Level

Code

Product hierarchy GPC or DIM Code Flow specific dataSupply Management Infos or

Production Run Size

Pricing data – internal

prices only Transfer price or Currency Code Sales specific data

Local Code TARIC or Coupon

Identification Number

Weights & dimensions

data– CU & TUTrade Unit or DPGPF

Sustainable

development data

Localised CARB Product or

Ingredient To Be Traced

Packaging data CU Packaging Infos or Packaging

ComponentE-com & com data

Multimedia Kit URL Domain

or Local Multimedia

Description

Families: Elixpedia manage more than 470 attributes distributed in 12 families

List of 12 families

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Hierarchies

Illustration with product hierarchy

List of 11 hierarchies defined in Elixpedia

The content of these hierarchies is specific for each Division but the structure remains common to all Entities

The content of these hierarchies is specific for each Market but the structure remains common to all Entities

ALL

DIV

ISIO

NM

AR

KE

T

Target

Hierarchy

Publisher

Hierarchy

Product

Class Hierarchy

Global

Product

Classification

International

Product Hierarchy

International

Market

Hierarchy

International

Project

Hierarchy

Local Product

Hierarchy

Local

Market

Hierarchy

Local

Client Hierarchy

Local

Project

Hierarchy

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Workflows

• Name & featuresof the product

Marketing

• Content, volume, packaging type etc

Product Devp& Pckg • Product

Hierarchy

• DIM & Pricing

Financial Accounting

• Supply chainparameters

• Catalogue & Network data

MSL Planners• Ensure data

quality

• Application of business rules

PIM

Master Data validation cycle based on MDM CE workflows

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Legend

Modify product

Business process

Homepage

Dashboard

View BOM components

Browsing & searching

Product Creation

Promo Creation

Display Shipper Creation

Product Creation

POS2 Creation

BOM Creation

Service & Consumer

Creation

Product duplication &

Index Evolution

Product duplication &

Index Evolution

Product Duplication

- Despectrage

- Tri Creation

- POS2 Creation

- Tester Creation

- Service creation

My Products data

Modification

Inter. Products

- Localization

- ata Modication

Local Products data

Modification

- Modification

- Respectrage

My Products

transportation data

Modification

My Products Handling

and Dimension data

Modification

Inter. Products

Handling and

Dimension data

Modification

My Products data

Modification

Inter Products data

Modification

All Products Descriptions

data Modification

All Products BOM data

Modification

My Products Palletization

data Modification

My Products Marquage

data Modification

All Products SAP Info data

Modification

My Products data

Modification

Inter Products data

Modification

My Products GTIN Codes

Creation

My Products GTIN Codes

Copy

Palletization comparing

Common

MSL CPD

MSL

Selective

Market

CPD

Market

Selective

Product completion

Product Publishing

View product Create product Duplicate product

Publish product

Each business process is decomposed into business functions that are common

or specific to each solution

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Key figures

FTE since 2011

Flows / day

Validation rules

3054

145 000300

SKU (undead)

Declared users600Attributes/product450

975 Out/Inbound files / day

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Macro plan

� Live entities � MSL CPD EUR (since Apr. 2013) : 9 factories for 31 affiliates with 54 567 SKU

� MSL LUXE EUR (since Dec. 2013) 3 factories for 39 affiliates with 38 611 SKU

� MSL APAC (all Divisions, since Jan. 2014) : 5 factories for 95 affiliates with 15 965 SKU

� Affiliate CPD FR (Go Live on June 2013) : 19 032 SKU

� Next Go live� MSL PPD EUR (since Oct. 2014) : 1 factory for 50 affiliates with 12 062 SKU

� MSL ACD EUR (since Oct. 2014) : 3 factories for 70 affiliates with 5 390 SKU

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MDM architecture

ELIXPEDIA

MSL LUXE

EUR

LUXE FR

International products

catalog LUXE MSL EUR

International and local

products catalog LUXE FR

Products Hierarchies Value listsConsistency

checks

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Integrated architecture: 200 federated MDM catalog

AsiaPacificAmericasEMEA

MagellanMagellanMagellan BPGBPGBPGBPGDIFTDIFTISISISISMagellan

MSLCPD

MSLLUXE

MSL ACD

MSL PPD

Affaire DPGP 1

Affaire DPGP 2

Affaire DPGP n

Affaire DPL 1

Affaire DPL 2

Affaire DPL n

Affaire DCA 1

Affaire DCA 2

Affaire DCA n

Affaire DPP 1

Affaire DPP 2

Affaire DPP n

Entreprise Service Bus / Managed File Transfer

MSLCPD

MSLLUXE

MSL ACD

MSL PPD

Affaire DPGP 1

Affaire DPGP 2

Affaire DPGP n

Affaire DPL 1

Affaire DPL 2

Affaire DPL n

Affaire DCA 1

Affaire DCA 2

Affaire DCA n

Affaire DPP 1

Affaire DPP 2

Affaire DPP n

MSLCPD

MSLLUXE

MSL ACD

MSL PPD

Affaire DPGP 1

Affaire DPGP 2

Affaire DPGP n

Affaire DPL 1

Affaire DPL 2

Affaire DPL n

Affaire DCA 1

Affaire DCA 2

Affaire DCA n

Affaire DPP 1

Affaire DPP 2

Affaire DPP n

ESB / MFT

Magellan DIM FDL ISIS DIFT BPG Other appL’OréalDirectory

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Affaire 1

Autres SI (L’oréal ou externes)

Autres SI (L’oréal ou externes)Local legacies

SAP AffairesSAP

AffairesSAP ECC

SAP AffairesSAP

AffairesSAP ECC

Autres SI (L’oréal ou externes)

Autres SI (L’oréal ou externes)Local legacies

SAP AffairesSAP

AffairesSAP ECC

Autres SI (L’oréal ou externes)

Autres SI (L’oréal ou externes)Local legacies

Data

Quality

Reports

Analysis

n 1 3 3 n n

Internal ESBCoordination

inter instance

Coordination

inter instance

Coordination intra

instance

Coordination intra

instance

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Applicative & technical scope

� Based on IBM hardware (P750 & x86) & software� Centralized in L’Oréal datacenters (Primary site and backup sites)� Environments: Dev / Quality / Pre production / Production� Service level agreements

� RPO (Recovery Point objective): 24h� RTO (Recovery time objective): 24h

ELIXPEDIA / ELIXPEDIA Explorer

Application

Software

Database

Hardware

IBM MQ Series IBM MDM CE

IBM DB2

IBM AIX

IBM Power 750

Operating System MS Windows

IBM x86

IBM Watson Explorer

Product 360°

Product

referential

Notification

E-COM

DAM

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Organization

Call center

Turin 00 to 19

Production / monitoring

ELIX CC

5 locations in Europe managed by Single Point of Contact in L’Oréal Headquarters,

France coordinating relationship with software & hardware vendor

Design

Authority

Delivery center

Roll out

AMS

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1. IBM Watson Explorer Proof of Concept

2. Demo:

- ELIXPEDIA explorer solution

- Product 360°

3. Unlocking new strategic benefits

Product 360°

Vincent BIRASMDM Solution Architect – IBM-GBS

Email : vincent.biras@fr.ibm.com

Bruno DEBATWATSON Explorer Tech Sales – IBM

Email : bruno.debat@fr.ibm.com

IBM Watson Explorer Proof Of Concept

Initial requirements

� Demonstrate free text search capabilities, allowing to access management workflows depending on search results in compliance with ELIXPEDIA users access rights

� Compare product data sourced from L’Oréal Paris E-com frenchwebsite and L’Oréal Paris France MDM catalog

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ELIXPEDIA explorer

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Product 360°

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Product 360°

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Unlocking new strategic benefits

� Not only IBM Watson Explorer was successful, it revealed high potential of unforeseen opportunities and business value

� 11 identified opportunities improving global efficiency, productivity, data quality and time to market

� Other data sources to index

� Examples: � New product introduction� Global Data sharing� Traceability improvement� Support Data Governance

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Conclusion

Lessons Learned

Elixpedia

� Single Point of Contact� Due to complex organizations …

� Transparency� Requires editor’s involvement in all program aspects (program management, risks

management, change management, value realization…)

� IBM in direct contact with L’Oréal business (not only with IS)

� Dedicated management committee� At CIO level, quarterly meetings to share risks, strategic decisions and problems

Partnership ?� Solution

� Complex requirements,� IBM as hardware/software vendor, solution integrator and solution supporter

� Communication� IBM’s notoriety at Executive & Investors level� Program supported by a global partner

� Program quality � IBM global engagement

Partnership Golden rules

WIN / WIN relationship38

The Product referential 360 - Lessons learned

� ELIXPEDIA exceeds initial scoping, currently used as a primary and key solution for operations. Business requirements and Service Level Agreement are growing

� Sophisticated architecture in response to L’Oréal’s requirements: MDM concepts reflect the Group’s matrix organization leading to federated catalogs

� Data cleansing “project in the project” increases workload by up to 30%. Data quality needs to be measured before and after

� Data governance at Corporate level is a key element for fast and efficient decision making

� The principle objective of ELIXPEDIA is to guarantee cross organizational data alignment: “Data is a Group asset not an asset by Entity”

� Main focus on Core Product Data: dimensions, environmental, legal and regulatory data

� Primary objective is to increase data quality, productivity is secondary

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The Enhanced Product 360 leveraging IBM's Watson Explorer – Lessons learned

� An excellent enabler to demonstrate the value of "Data alignment" to the business data consumers

� Enabler of 360°vision for Product Information

� The Proof of Concept (Poc) approach is very relevant for this kind of solution : 10 days lead time

� A selection of high value uses cases with ongoing discovery

� Enable product information sharing across all entities

� Manage urgent requests to L’Oréal from the Poison Centers

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Questions

Answers&

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