driving business value with mdm business value with mdm jolene jonas mdm data architect/product...

Driving Business Value with MDM

Jolene JonasMDM Data Architect/Product Manager

Intel Corporation

Nimish MehtaSenior Vice President, EIM

SAP Labs LLC.

Driving Business Value With Data Unification

Nimish Mehta

SVP, EIM

SAP LABS LLC.

Data Unification with SAP NetWeaverCustomer Success Stories

The Data Problem

Data Unification withSAP NetWeaver

Best Practices and Getting Started

© SAP AG 2006, Data Unification / 4

The New Integration ChallengeDisparate technologies do not support process innovation

Inflexible, slows process change“Hardwired” process

IT silos can’t meet LOB needsIT silos prevent delivering composites

Costly to maintain, ties up budgetExponential # of integrationsNo cohesive master data

ApplicationServer

PortalBusiness

Intelligence

Messaging

Security

Master Data Mgmt

Enterprise Integration

CRM

SRMERP


Bad Master Data hinders process innovationsince every department has a different version of it

Master data is data about your customers, products, suppliers etc.

M & A’s are worsening the problem

Call Center

Jane Smith4418 N. Str.Chicago, IL

60611Part: 2574

SRM

Part: 8975

VENDOR:ABC123

Logistics

VENDOR:XYZ456

YOUR VALUE CHAIN

ERP

Jane Peters199, 3rd StreetPalo Alto, CA

Part: B7521


Costs and Complexity increase over timeAs business events continue to impact the data

57% of marketing content work was to mitigate errors

40 % orders getting blocked due to master data problems

$6 billion Maytag merger

Data Quality

Time

Without Master Data ManagementDoing business is expensive

Data Warehousing One-off

cleansing

M & A

Outsourcing

New product launch

http://www.ericsson.com/


ConsolidationEnsure consistent master data across systems

HarmonizationCleanse and distribute across entire landscape

Central ManagementCreate consistent master data from the start, centrally

Managing Master Data ActivelyIs Imperative to ensuring optimal process innovation

Data Quality

Time

New Product Launch

Master Data ManagementImprove data quality in steps

M&AOutsourcing

Consolidation

HarmonizationCentral MDMData

Quality

Time

Without ConsolidationDoing business is expensive

Data Unification with SAP NetWeaverCustomer Success Stories

The Data Problem

Data Unification withSAP NetWeaver

Best Practices and Getting Started


SAP NetWeaver – A Strategic Platform for Enterprise SOAMaster Data is an integrated capability of the Platform

SOA ProvisioningStable, scalable coreOpen, standards-basedService-enabling processes, information, events

Composition EnvironmentFast paced “edge” of the businessDon’t just code – compose!Lean consumption


Master Data Managementwith SAP NetWeaver

Compose cross application processes in SOA with consistent master data

Infinitely configurable schema options

Support consolidation, harmonization, central mgmt

Pre-packaged IT and business scenarios

500+ customers

Manage Any Master Data


Benefits:

Complex product and relationship management

Print/web publishing including layout and production

GEAR

Parts1038-GID

Example: Product information is consolidated and enriched and published internally or externally

A124KParts

GEAR

Rich Product Content ManagementOne view of product information anytime anywhere

Publish

GearsBR-2K

SPIDER GEAR


Jane Smith

4418 N. Str.Chicago, IL 60611

Extensive matching framework

Provides web services to customer data access

SAP & Non-SAP integration

Customer Data IntegrationOne view of customer information anytime anywhere

Analysis

Jane Peters

199, 3rd StreetPalo Alto, CA 94304

Jane Peters Smith

4418 North St.Chicago, IL 60610


Understand your most profitable products, best customers and cheapest/reliable vendors

Gain insights by integrating transactional data from heterogeneous systems with master data for analysis

Improved Business IntelligenceDeliver unique insights with an integrated platform

+

TRANSACTIONAL DATA

MASTER DATA =

BUSINESS INSIGHT


CONSOLIDATING HAS NEVER BEEN EASIERConsolidate, harmonize and centrally manage master data

Instance Consolidation from R/3 and other sources

Direct ODBC System Access, extract flat files, 3rd party application data, XML sources, many more..

Single pass data transformation, Auto-mapping, Validation Rules, Exception handling

Business Users can define matching rules, complex matching strategies, conduct data profiling, enrich data

Data Enrichment Controller to use 3rd party sources like Trillium, D & B and other partners for address completion, company validation and enriching data

Search and compare records, identify sub-attributes for consolidation in sub-second response times

Merge Records seamlessly, tracking source systems with built in key mappings

Leverage out of box data models for consolidated data


CONSOLIDATING HAS NEVER BEEN EASIERConsolidate, harmonize and centrally manage master data

Leverage built in workflow to manage compliance process, ensure administrators can validate imported records

Enforce data governance through user roles, security, workflow, audits to prevent future data problem

Syndicate master data in XML or to any SAP or non-SAP applications

Works with SAP and non-SAP distribution technologies for easy fit in heterogeneous environments

Centrally manage master data

Leverage validation rules to enforce data integrity

Manage rich content set and relationships associated with master data record


IDENTIFY SUPPLIER MANAGE CUSTOMERVERIFY AVAILABILITYTAKE ORDER

Why Customers are choosing SAP ?One solution for ALL master data in your industry specific process

SAP NetWeaver One master data solution for all business processes

Who is my customer?

Do I have the right product?

Who is my best vendor?

Which employeeshould we assign to?


First step to enterprise SOAAccelerate new business processes with accurate master data

Unify any dataUnify customer, product, employee, supplier and user defined data with one solution to build robust business processes

Industry insightsSupports 1Sync (UCCnet, Transora), configurable for other industries

Easy deploymentPre-built data models, mappings and iViews

Master Data Management at Intel

Jolene Jonas

SAP MDM Product Manager

SAP Data Architect

Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A


Intel is the world's largest chip maker, and a leading manufacturer of computer, networking and communications products.

Founded in 1968, first microprocessor shipped 1971

Worldwide Presence124 Offices in 57 countries97,000 employees + 39,000 Contingent workersOver 450 products & services2005 revenues $39 billionInformation Technology Group– 6,469 Employees + 2,254 Contingent workers– 79 IT Sites in 27 countries– 26 data centers all running Intel® architecture-based servers

SAP* since 1996, key of our ERP implementation– Centrally-located infrastructure – Distributed implementation by business functions– Future: Replatforming SAP and moving to SOA*

* SOA – Service Oriented Architecture

Company Background


Formalizing Data Quality

Effort began in 2001

Elevated awareness corporate wideData is an asset– Systems are temporary but Data lasts forever

Quantified impact of poor data, the pain of poor Master Data– Per Data Quality Experts - assume 10% error rate due to poor quality– High TCO*

- 25+ Customer Apps all doing same work- No single place where Customer is created- Lack of an integrated view

Formed an Information Quality OrganizationMessage given tops downTargeted training classes– Management and detail level

TCO – Total Cost of Ownership


Formalizing Data Quality

Defined data quality goals:Single terms/definitions - One languageSingle Record of Origin for Configuration and Master DataIncrease reuseMonitors & audits to track improvementStreamline business processes

Standards & Governance:Data Architects– Lead Data Architect per subject area

- Finance, Location, HR, Customer, Supplier, Item– Owns standards, governance, project deliverables– Defined a Data Model driven approach for development

Business gatekeepers– Focused Change Control Boards


First - What is Master Data?

Includes Master Data & Config

Persistent (lifecycle outside a single business process)Has a CRUD* process outside of the business processes where consumedDefinition independent of other data– i.e. Item is Master Data, BOM is not as it is dependent on Item

Highly reused – (Used in more than one business process)

Primarily created for use in other processes

* Create, Read, Update, Delete


Tops Down Approach to Data

First - Define the conceptual layerSets the foundation, the business frameworkBrings Intel to one data dictionary– Single terms and definitions

Second – Seed the logical layer from the conceptualReuses approved conceptual entities Adds all the facts/attributes, business data ruleGrows as new needs are identifiedActs as blueprint for physical designServices being designed based on the model

Third - Use logical model to “seed” the physical modelsEnsures reuse of approved entities and attributesPhysical representation of the applicationsWhy?– Links application speak to Intel speak– Roadmap for enhancements/integration/reuse– Impact analysis


Pre- Enterprise Commodity Data Model

ReportingSAP CRS

Material Master (CIM)

Material Group = Commodity

Tax Man

Spends Analyst

Spends Manager

MaterialPlanner

Summarize by taxable area

Planning Categories

Summarized Grouping

Lowest Detail

One Term, Many Definitions


Enterprise Driven Commodity Data Model

Reporting

SAP CRSMaterial Master (CIM)

Material Group = Commodity DetailNew Commodity Hierarchy

Tax Man

Spends Analyst

Spends Manager

MaterialPlanner

Summarize by taxable area

Summarized Grouping

Commodity plusHierarchy

Detail CommodityReport

CommodityGatekeeper

Controlled Entry

Single Definition per Term


Enterprise Item Conceptual Model

Item

Product

Subassembly

Material

Finished Good

Kit

Service

Direct Material Indirect Material

Manufacturing Indirect Material

BOM

Intangible Product

Subject AreaProduct

Subject AreaMaterial

Subject Area Item


Intel Master Data Direction

Finance dataCurrently using SAP R/3 as single Record of Origin– Minimal gaps– Meets business need

Therefore – move to SAP ECC^

Location dataSAP R/3 works well– But has data gaps

- Effective dating, status codes, type codes

Therefore – move to SAP ECC Build out SAP NetWeaver MDM to close data gaps– Utilize SOA to glue them together

ECC – Enterprise Central ComponentMDM – Master Data Management

Determining Best Fit for Record of Origin


Intel Master Data Direction

Item (Material Master) & CommodityCurrently use R/3 as authorized Record of OriginLarge gaps in data & business rules Therefore, targeting Record of Origin as SAP NetWeaver MDM

Customer/ SupplierCurrently use R/3 for Direct Customer and Supplier– Indirect Customers in many other apps

Building out mySAP CRM and SRM in 2007Long term goal is SAP NetWeaver MDM as Record of Origin

Integrated SAP Netweaver BI Distribution from authorized Record of Origin only– Requires controlled distribution attribute by attribute

Requires strict control of Master Data number ranges

Determining Best Fit for Record of Origin

*ROO – Record of Origin – Single point of create for unique identifier


SAP NetWeaver MDM will run on Intel®Architecture

Certified on 64-bit Intel® Xeon® processor

BenefitsPremier performance, scalability, and the highest reliability at a fraction of the cost of proprietary systemsIntegrated, advanced RAS features for highest standards of system availability and uptime Greater range of optimized solutions than proprietary platforms support, at a lower cost Optimized SAP solutions to run best Intel architecture via massive Intel and SAP engineering investment


SAP NW MDM Live at Intel since Nov 2006

Started with our logical data models

Built our own physical data model due to Intel specific needsMDM plugged into existing infrastructure– Redundant applications will be phased out over time as in-house expertise is

gained with new application– Allows us to identify gaps and work with SAP for closure

1.8m Materials, 180K Suppliers = ~$10-15Bn spend, 6m Customers2007/2008 will see further rollout of MDM to business applications

Collaborating with SAP on a Master Data Service/xAppGet Supplier, Search SupplierLeverages MDM Web Services delivered in latest release– 6 week effort

OOB – Out Of Box


Lessons Learned

Being an early adopter has benefitsStrong influence on SAP strategy for central maintenance– Customer champion on the Influence Council

Many product enhancements at Intel requestAlignment with SAP SOA team on a Master Data ServiceVery strong support from SAP enabling our success

Go with SAP data modelMore complete integration back to core SAPExtend what is delivered


Summary: ROI savings estimated at $10-18m

Benefits of a Data Model Driven ApproachGrounds Intel on common languageEnsures fully integrated, reusable designProvides consistent blueprint to development communityReduces Total Cost of Ownership (TCO) through Record of Origin– Cost Avoidance - reduction in applications (infrastructure and headcount)

Delivers better data quality

Must have management buy-in to succeed

SAP NetWeaver MDM has a key role in Master Data ManagementBoth as an Record of Origin and Record of Reference

driving business value with mdm business value with mdm jolene jonas mdm data architect/product...

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