atelier ibm avec témoignage l'oréal - part 2
TRANSCRIPT
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 : [email protected]
Marc LegrouxExecutive Architect – IBM-GBS
Email : [email protected]
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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
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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)
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(1) International brands with annual sales of more than 50 million euros
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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
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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 : [email protected]
Bruno DEBATWATSON Explorer Tech Sales – IBM
Email : [email protected]
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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