information governance for master data - sapfm.sap.com/data/upload/files/successful master data...

Information Governance for Master Data

© 2012 SAP AG. All rights reserved. 2

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Agenda

The Need for Master Data Governance

SAP Master Data Governance Overview

The Benefits of Master Data Governance

Summary


Getting master data right in this

complex landscape requires

better information governance

Mill

Products

Mining

Chemicals

Automotive

Defense & Security

Oil & Gas

Healthcare

Engineering, Construction

& Operations

Industrial Machinery

& Components

HighTech

Aerospace

& Defense

Life Sciences

Retail

Utilities

Higher

Education

& Research

Insurance

Consumer

Products

Wholesale

Distribution

Professional Services

Public

Sector

Banking Media

Telecommunications

Travel &

Logistics

Services

Master data is the “DNA” of the enterprise

Enterprise

master

data

Procurement Supply chain

CRM* PLM**

Finance Manufacturing

* Customer Relationship Management ** Product Lifecycle Management


What happens if you don’t get it right?

Reduced Sales Effectiveness

Lack of consolidated view of customer data across all channels

Customer transactions are compromised due to limited view of the facts

Sub-optimal Procurement Decisions

Lack of transparency relating to suppliers and products

High costs due to insufficient supplier selection and rationalization

Delayed Go-to-Market Process

Failure to capitalize on market opportunity when introducing new products

Lack of real-time collaboration with front office, thus hindering customer services

Ineffective Business Decisions

Lack of consistent information impedes to make critical decisions supporting innovation

Compromised business dynamics with negative impact on managing resources effectively


Master data management is a business imperative

High master data

maintenance costs

Need for multiple systems

to manage master data in

different domains

Lack of flexibility in dynamic

business environments





Loss of potential for benefit realization (i.e. discounts, conditions, central contracts)

Limited availability of up-to-date master data in my business network

Inconsistent financial

master data across the

enterprise

Manual efforts to update

financial master data in

local financial systems

Risk of non-compliance to

IFRS, SOX etc.

Slow group closes

Lack of transparency about

changes (Who, what, when,

why?)

Organizations & Roles

Challenges

IT

CIO CFO VP of Supply Chain,

VP of Planning

Financials Sales

(S)VP of Sales, (S)VP

of Sales & Marketing

Supply Chain


Agenda




Summary


SAP Master Data Governance Centrally govern master data on top of SAP Business Suite

Governance Enables governance, compliance and transparency through integrated staging, approval and central audit trail

Consistent Data Delivers consistent definition, authorization and replication of key master data entities for SAP. Eliminates error prone manual maintenance processes for master data in multiple systems

Integration Native integration with SAP Business Suite and SAP ERP

Re-use Re-use of SAP data model, UI and existing business logic and configuration for creation and validation of master data

Data Quality Integrates with SAP BusinessObjects Data Services for data quality and data enrichment as well as SAP BusinessObjects Information Steward for data remediation

NW MDM & MDG Can complement and extend SAP NetWeaver MDM

SAP provides out-of-the-box, domain-specific governance to centrally create, change

and distribute master data across the entire landscape.”

Aaron Zornes, Chief Research Officer, The MDM Institute

“


SAP Master Data Governance capabilities Facilitating utmost business process performance

SAP Master

Data Governance

Integrated

Object Model

Robust Data

Replication Governance,

Collaboration

& Data Quality

Re-Usability

& Extensibility

Deliver

Out-of-the-Box


Deliver out-of-the-box

Out-of-the box data replication mechanisms, using stable mechanisms

Deliver a Data Model proven by several applications & industries

Workflow flexibility closely integrated to a framework for defining business rules

Deliver roles on a web based UI Deliver process-centric solution

Deliver predefined Data Quality Services

Reuse of existing processing logic

Full Integration to SAP Systems as a client

Offer integration services for non-SAP client

systems Low TCO

Flexibility

Ease of consumption

Best Practice

Process Transparency

Integration


Bas

ic &

Cla

ss

ific

ati

on

Data

Material

Integrated object model F

ina

ncia

ls a

nd

Co

ntr

oll

ing

Cost Element

Org. Units:

Company

Profit Center

Cost Center

Chart of Accounts

GL Account

Consolidation

Unit / Group

Financials

Business Partner Attributes

Central Data

Bank Details

Tax Numbers

Roles

Industry Sectors

Supplier Attributes Customer Attributes

General Data

Comp. Code Data

Purchasing Data

Addresses with Usage and Versions

Supplier & Customer

Org

. U

nit

Data

Va

lue

Classification

General Data

& Descriptions

Units of Measure

Sales Data

Plant Data

Valuation

& Costing

EAN, UPC

Business Partner Relationships

Identification

General Data

Comp. Code Data

Sales Area Data

Tax Indicators


Governance, collaboration…

Can be adapted and tailored based on customer needs

Linear or distributed & workflow based

Has roles and responsibilities and also Task authority (e.g., create, change, approve)

Flexible enough to respect the distributed responsibilities existing in a company across various business units

Business Logic

Possibility to extend the process by adding business logic and thereby bringing in data quality

Data in process stored in a separated repository, will be transferred to operational database after final approval

Approval


…and data quality

Duplicate Prevention

Checked early and embedded in the process

High detection quality of matching using Enterprise Search or BusinessObjects DS

Validations

Re-use of existing validation logic in ERP

Custom validations can be modeled and

programmed (e.g. code lists, simple checks, or modeled rules via SAP BRF+)

Address Enrichment

Simple check and selection lists

Integration with content provided by

SAP BusinessObjects Data Services

Automatically adding Tax Jurisdiction Code

re-using existing interfaces / providers


Robust data replication

Replication

Automatic or manual replication to SAP and non-

SAP systems

Peer-to-peer or mediated

Replication Techniques

DRF controlling replication mechanisms like

ALE for SAP ECC, R/3 and non SAP systems

SOA service for SAP and non SAP systems

RFC and File for SAP and non SAP systems

CIF for SAP SCM and MW for SAP CRM and SRM

Replication Features

Flexibility to replicate selected data only to a specific

client system by defining filters (controlled by DRF)

Support of different object IDs or customizing keys

between hub and client systems (via mapping in

MDG or NW PI)

Monitoring and error handling

Process

User

Data Replication

Non-SAP System SAP System


Reusability & extensibility

Reuse standard content

Reuse existing data structures and

functionality of SAP Business Suite

Enhance functionality

Be able to enhance MDG functionality

based on predefined content (e.g. plant or

sales data) or customer-specific extensions

Extend data structures

Provide easy-to-use extensibility

capabilities for enhancing nodes and fields

data model

user interface

processes

data replication

Central Team

Core Processes

Extended

Individual Processes

Tasks

Reused


Short demonstration


Agenda




Summary


Govern financial master data Speed-up your financial close with consistent and reliable data

Manage financial master data centrally

• Out-of-the-box master data governance application to centrally

create, change and distribute financial master data with focus on

SAP Business Suite

• Upfront accuracy of chart of accounts and other elements such as

general ledger, hierarchies, org units etc.

• Change requests organized as Editions to steer approval process

• Deliver consistent data across corporate group and local systems

• Pre-built validation against SAP business logic

Release

Edition

Distribute

Edition

Adjust in

Target System

Create

Edition

Collect

Comments

Create

Change

Request

Change

Requests Final

Approval

Approval

by

Business

Execute

Changes Corporate Master

Data Steward

Corporate Master

Data Responsible

Master Data Council

BI Responsible

Local Accountant

Local Accountant/

Corporate Accountant

Head of Corporate

Master Data

Local Accountant

Corporate

Accountant

Head of Corporate

Master Data

Now that master

data is consistent

throughout, creating

a new cost center

takes less than 30

minutes instead of

several days.”

Jian Ming Se,

Global IT

Associate Director,

Colgate-Palmolive

“


Central creation and maintenance of supplier master

data as a governed process within supplier lifecycle

management

• Reduce procurement costs based on global visibility of

relationships

• Improve cycle time for new contract creation by creating and

maintaining supplier master data as a governed process across

supplier management processes

• Centralized supplier management as part of procurement to

ensure SLAs are met, simplify contract management, and mitigate

risk

Govern supplier master data Manage mission critical data for procurement organizations

Requestor • Central Data

• Comp. Code

• Purch. Org

Specialist • Review

• Complete

Info

Purchasing


• Purch. Info

Financial


• Finance Info

Reject/Rework

Purchasing Org

Data Required?

Submit for

approval

Approve

Cancel/Change

Request Company Code

Data Required?

Stop

SAP solutions for

information

governance have

brought many

benefits, such as

visibility into global

spending per

supplier, which

improved price

negotiation

leverage.”

Global Data Lead,

Oil & Gas Company

“


Central creation and maintenance of customer

master data as a governed process within customer

lifecycle management

• Obtain insight across customer interactions and leverage this

insight to align marketing and sales and focus sales efforts on

the most profitable customer opportunities

• Maintain the integrity of CRM processes allowing for improved

campaign effectiveness, opportunity management, sales, and

customer service

• Improve sales force productivity by eliminating duplicate

customer records, duplicate opportunities, and ensuring

complete contact information

Govern customer master data Enable consistency towards your clients across all business units

Requestor Maintain

Central Data

Reject/Rework

Submit for Approval Approve

Cancel/Change

Request

Stop

Activate

Data &

Replicate

Master Data


Central Data

Central Data

Thanks to SAP we

have a solid

customer data

foundation to

support our growth

objectives.”

VP Sales,

Telecommunications Provider

“


Govern material master data Integrated, centralized product / material data for process excellence

Manage material master data centrally

• Reduce time to market through central creation of consistent,

correct and complete material master data as a governed process

throughout design and enterprise operations processes

• Reduce cost of new product development and introduction through

centralized governance of material data from engineering to

manufacturing resulting in stable and high quality product

• Reduce manufacturing cycle time through central creation of

product master data as a governed process as part of enterprise

planning and control processes feeding trusted master data

through plant-level operations and manufacturing execution

Request

Creation/

Change

Complete

Material

Data

Review

Change

Request

Complete

Material

Data

Approve

Change

Request

Enrich in

Local

System

Business User MD Experts Business User MD Steward Local MD Steward

Revise

Material Creation

Business Workflow

Material ID 4711

Change Request A1

By deploying SAP

Master Data

Governance, we

are able to meet

our high

requirements for

the quality of our

master data.”

Bjoern Ebeling,

Associate Director,

Merck KGaA

“


Agenda




Summary


Master data management is a business imperative

High master data

maintenance costs

Need for multiple systems

to manage master data in

different domains

Lack of flexibility in dynamic

business environments





Loss of potential for benefit realization (i.e. discounts, conditions, central contracts)

Limited availability of up-to-date master data in my business network

Inconsistent financial

master data across the

enterprise

Manual efforts to update

financial master data in

local financial systems

Risk of non-compliance to

IFRS, SOX etc.

Slow group closes

Lack of transparency about

changes (Who, what, when,

why?)

Organizations & Roles

Challenges

IT

CIO CFO VP of Supply Chain,

VP of Planning

Financials Sales

(S)VP of Sales, (S)VP

of Sales & Marketing

Supply Chain


Benefits of SAP Master Data Governance

Up-front, central creation of master data enables

high data quality and leads to significant business

improvements.

Out-of-the-box, process-centric applications

provide centralized governance for master data

domains such as financial data, supplier data,

customer data, material data.

Native integration with SAP Business Suite using

existing business logic and infrastructure leads to

low TCO.

Provides flexibility in heterogeneous environments,

from configurable workflows and extensible data

models, up to custom built applications.

SAP provides out-of-the-box, domain-specific governance to centrally create, change

and distribute master data across the entire landscape.”

Aaron Zornes, Chief Research Officer, The MDM Institute

“

Thank You

information governance for master data - sapfm.sap.com/data/upload/files/successful master data...

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