Driving Business Value with MDM Business Value with MDM Jolene Jonas MDM Data Architect/Product...
Transcript of 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.
Data Unification with SAP NetWeaverCustomer Success Stories
The Data Problem
Data Unification withSAP NetWeaver
Best Practices and Getting Started
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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?
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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
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
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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
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
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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
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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
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
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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
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
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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
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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
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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
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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
Company BackgroundFormalizing Data QualityWhat is Master Data?Data Modeling Approach – Tops DownPhysical ImplementationSummary/Q&A
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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
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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
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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
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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
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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
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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