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SAP Master Data Management


Overview Presentation
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Combining Web Services standards where appropriate with its proven library of
open APIs for other cases, SAP will progressively evolve its architecture to an
Enterprise Services blueprint. As the clear leader of this market, its clients look
upon SAP to help them transform the promise of Web Services into tangible
business benefits. This time, the new business requirements that add to others
and do not replace them are flexibility and heterogeneity. The technology
advances we can leverage to satisfy those while dramatically improving the
performance of our applications (this time in terms of usability and scalability) is
Web Services or more precisely Services Based Architectures.
With ESA, we have the architecture concept that will fuel our Customers growth for
the next 3 to 5 years.
SAP AG 2003, Title of Presentation, Speaker Name 2
Continual Evolution To Meet Customer Requirements
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SAP AG 2003, Title of Presentation, Speaker Name 3
SAP NetWeaver Delivers on the Vision of ESA
Enterprise
Services
Architecture
Empower all participating
people
Manage all information
(structured and unstructured)
Encompass all systems (SAP
and non-SAP)
SAP delivers its business
solutions using an Enterprise
Services Architecture. An
Enterprise Services
Architecture (ESA) should:
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Open SQL for Java
(foundation for DBMS abstraction and upgrade capabilities)
Web Dynpro Java: runtime and tools
<cool> service layer: Java frontend + ABAP backend
J2EE 1.3 compliance
Web Service infrastructure (Java)
Eclipse based NetWeaver Developer Studio
Support of Web Dynpro, Open SQL, J2EE
Java System management and software logistics
Java Connector Architecture, security features
SAP NetWeaver Developer Studio (Eclipse based IDE)
Adobe interactive forms support
SAP AG 2003, Title of Presentation, Speaker Name 4
SAP NetWeaver
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PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
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SAP NetWeaver
SAP NetWeaver
Synchronized date of solution
deliveries
All SAP NetWeaver solutions
are based on one set of
solution versions (e.g. all
based on Web AS 6.40)
Further integration between
SAP NetWeaver solutions
Basis for new application
developments in 2004
One documented installation
procedure
Harmonized documentation
SAP NetWeaver in-a-box
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SAP AG 2003, Title of Presentation, Speaker Name 5
Integration & Maintenance costs
The sheer data volume
Inaccuracies and redundancies
The effort to provide all the required
information per master data
Analytics
Unreliable reports
Duplicate data
Bad information for sourcing processes
Cost Drivers in Master Data Management
An estimated $25-$50 billion in extra costs due to these problems could be
greatly reduced through industry-wide Data Synchronization
Source: Grocery Manufacturers of America, Inc
Its Time to Consolidate & Harmonize
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SAP AG 2003, Title of Presentation, Speaker Name 6
Increased cross-border trading
Multiregional coverage
Increased collaboration
Data Synchronization with business partners
Emerge of global industry standards EANUCC
External Business Drivers
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SAP AG 2003, Title of Presentation, Speaker Name 7
OPERATION
CONSOLIDATION
INNOVATION
Today Future
Reduce Master Data Maintenance Cost
Reduce IT Integration Cost
Save Cost and Increase Revenue by Analytics
Increase Successful Collaboration
SAP MDM Value Potentials
TCO under Control!
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SAP AG 2003, Title of Presentation, Speaker Name 8
SAP Master Data Management (SAP MDM)
SAP MDM supports an
incremental approach to a
cohesive master data
management in a
distributed and hetero-
geneous environment
Content
Consolidation
Master Data
Harmonization
Central Master
Data Management
1
3
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SAP AG 2003, Title of Presentation, Speaker Name 9
Content Consolidation
Content Consolidation
Cleanse, normalize data
Aggregate, search, and cross
reference data from connected
systems
Duplicate finding
Examples:
Business-wide analyses
(e.g. global spend Analysis),
Creation of central catalogs
(e.g. of supplier products)
MDM
MDM
Client
SAP
Client
non SAP
Client
non SAP
Client
SAP
Client
non SAP
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SAP AG 2003, Title of Presentation, Speaker Name 10
Content Consolidation
MDM
MDM
Client
SAP
Client
non SAP
Client
non SAP
Client
SAP
Client
non SAP
Content Consolidation
Core Process Steps:
1. Load of master data objects
as they were maintained in
their local applications
(clients)
2. Matching of uploaded master
data objects to identify
duplicates
3. Providing ID Mapping
Information based on
matching results
4. Providing ID Mapping
Information for subsequent
usage (i.e. in Business
Intelligence)
5. Run Analytics for business-
wide analyses based on
consolidated master data
Description of a master data object:
Identifying Attributes
Other application specific data
Analytics
Load
J. Doe Ami Arad
Non-SAP SAP
P Silva John Doe

?
Matching
Non-SAP SAP
John Doe J Doe ?
ID Mapping
=
Non-SAP SAP
ID CIF345 P782
John Doe J Doe
=
=
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SAP AG 2003, Title of Presentation, Speaker Name 11
Customer Example: SHELL
Company
Shell produces ~ 3 % of the worlds oil supply
in 55 refineries in 33 countries
Daily purchasing bill in the millions
Problem: How to efficiently manage suppliers
worldwide?
Solution
mySAP SRM with Content Consolidation
Partner in Strategic Dev. Project to develop
cross system Master Data Management
Enables Shell to synchronize data across the
landscape
Global Spend analysis will enable
Successful purchasing negotiations
Right business decisions
Sustained competitive advantages
SAP Master Data
Management will enable us
to consolidate and harmonize
master data for our
applications and users
worldwide...
We expect to derive more
value out of previous IT
investments, and look
forward to added savings
and synergies from SAP
MDM as we continue its
global deployment.

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SAP AG 2003, Title of Presentation, Speaker Name 12
Master Data Harmonization
MDM
MDM
Client
SAP
Client
non SAP
Client
SAP
Client
non SAP
Master data harmonization
All of Content Consolidation
PLUS
Central management and
distribution of global attributes
Post editing in client systems
Controlled distribution of
local changes
Examples:
Business Partner administration
Central provision of sales
articles
Definition and administration of
non-variable parts
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SAP AG 2003, Title of Presentation, Speaker Name 13
Master Data Harmonization
MDM
MDM
Client
SAP
Client
non SAP
Client
SAP
Client
non SAP
= ?
Matching &
ID Mapping
Distribution
Central
Creation
Master data harmonization
Core Process Steps:
1. Central Creation of master data
objects just covering the global
information of the master data
object
2. Local Creation within the master
data environment of the
application system (client) and
distributing their global
information to MDM
3. Continuous matching processes
identify duplicates and result in
ID Mapping between them
4. Distribution of global master data
information to the various clients
5. Local Completion of master data
within the local environment
6. Use of ID Mapping information
for Analytics like business-wide
analyses etc.
Description of a master data object:
Globally relevant Data
(Client) specific Data
13.282.401 $
=
737.108 $
4.002.531 $
634.237 $
6.674.288 $
1.234.237 $

Analytics
Local
Completion

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SAP AG 2003, Title of Presentation, Speaker Name 14
Customer Example: Tesoro Petroleum
Company
Fortune 500, independent refiner and marketer
of petroleum products
Operates six (6) refineries in CA, WA, AK, UT,
ND and HI with crude capacity of 560,000
barrels / day
762 Tesoro retail stations of which 319 are
Company-owned
Problems:
Lack of Timeliness, Accuracy and
Completeness of Data Transactions
Lack of Business Rule Enforcement
Duplication, Redundancy
Downstream Error Solution Costs
Downstream Process Break Downs
Data Reconciliation
Inconsistent Metadata and Data Schemas
Solution: SAP MDM, SAP XI, SAP EP
The MDM Integration Project
will put in place the
architecture and the policy
framework that Tesoro will
use in the future to control
the entry of master data and
the subsequent distribution
of data to current systems as
well as allowing for the
efficient integration of new
systems.
NetWeaver presents total
platform for Tesoro
Architecture and required
common services

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SAP AG 2003, Title of Presentation, Speaker Name 15
Central Master Data Management
Central Master Data
Management
All of content consolidation PLUS
All of master data
harmonization PLUS
All master data information
resides centrally
One-stop data maintenance
Examples:
Definition of synergy parts
Central product data pool supplying
product data to multiple locations
for production, assembly, sales
and distribution
MDM
MDM
Client
SAP
Client
non-SAP
Client
SAP
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SAP AG 2003, Title of Presentation, Speaker Name 16
Central Master Data Management
MDM
MDM
w/o Local
Maintenance
Central Master Data
Management
Core Process Steps:
1. Central Creation of master data
objects covering the complete
information as used later in the
local application systems
(clients)
2. Distribution of centrally
maintained master data
information as individual objects
as they are defined in the local
application systems
3. Use of master data within local
application processes w/o local
maintenance
4. Use of ID Mapping information
for analysis through SAP BI
Description of a master data object:
Common Identifying Data
Complete master data info
Central
Creation
=
ID Mapping
Analytics
Distribution
13.282.401 $
=
737.108 $
4.002.531 $
634.237 $
6.674.288 $
1.234.237 $

Client
SAP
Client
non-SAP
Client
SAP

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Customers want to be served efficiently and according to their specific and ever-
changing needs
Customer information is often dispersed loosely over multiple application systems.
Without consolidating this information the processes rely only on their locally
available information which can be incomplete or even obsolete
All employees involved in customer interactions rely on the given customer data
Harmonized customer data can
be crucial to the success of a enterprise within an customer-oriented business
both in terms of cost efficiency and customer loyalty
SAP AG 2003, Title of Presentation, Speaker Name 17
Local
Bill Smith
123 Sinai St.
(212) 512-2134
Internet Service
William Smith
213 Sinai St.
(212) 152-2134
Wireless
B. Smith
123 Sinai St.
(212) 512-2143
Bill Smith
123 Sinai St
(212) 512-2134
Bill Smith
123 Sina St
(212) 512-2134
Bill Smith
123 Sinai St
(212) 512-2134
SAP Master Data Management
Update Your Information Once See it Everywhere!
Bill Smith call his phone company
Bill Smith
Ensuring one view of the customer
Telecom Company X
Fortune 500
6 sister companies across
North America
High volume transactions
Problems:
Customers now have a
choice of
ordering telecom service
bundles
Each area maintains a
separate
customer data file
Customer has to call each
division separately for
changes
Customer receives
duplicate
marketing materials
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SAP AG 2003, Title of Presentation, Speaker Name 18
MDM Enables Better Process Excecution
Pre-packaged change management forms, and
workflow
Pre-configured reporting and matching rules
Pre-defined data model
reduces overall data maintenance costs by preventing multiple
processing in different systems.
accelerates process execution by providing sophisticated data
distribution mechanisms to connected applications.
ensures data consistency and accuracy and therefore reduces
error-processing costs due to inconsistent master data.
improves corporate decision making in strategic sales and
purchasing by providing up-to-date information to all people.
SAP Master Data Management provides business content:
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SAP AG 2003, Title of Presentation, Speaker Name 19
5,000,000 master data
10,000 new master data p.a.
10% of them are duplicates
10 connected systems
SAP MDM accelerates business processes, ensures competitive
advantages and lowers total cost of ownership through ...
avoiding duplicates:
10,000 x 10% x $1000 = $1,000,000
reduced maintenance:
5,000,000 x$ 0.1 = $500,000
better decision making:
$1,000,000
controlled distribution:
10 x $200,000= $2,000,000
... more than $4,5 million savings p.a.
SAP Master Data Management
Bottom Line Benefits From SAP MDM - Example
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SAP AG 2003, Title of Presentation, Speaker Name 20
What the analysts are saying
By 2H07 [2nd half 2007], SAP customers using MDM instead of
manual methods will realize 60 percent lower master data
management costs for the integration of SAP data and non-SAP
applications (0.7 probability).
Source: Gartner Research SAP's MDM Shows Potential, but Is Rated 'Caution, Sep 16
th
, 2003
SAP, with its Collaborative Master Data Management offering, illustrates an
approach to solve the breadth of the problem by bringing numerous
technologies together. As such, it will be worthy of consideration in 2003, and
also offers an instructive view of how multiple technologies can be brought
together to solve a complex problem.
Source: Toward a common view of reference data, META Group, Feb. 2003
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SAP AG 2003, Title of Presentation, Speaker Name 21
Industry Benefits Some examples
Financial Services
Optimized customer views
Lower sales and service costs
Increased effectiveness of
marketing campaigns
Retail
Increase profitability margins
Lower logistics costs
Improved financials
All Industries
Harmonized data
Accurate Analysis
Accurate Reporting and
sourcing
SAP MDM provides business benefits in many industries
Consumer Goods
Meet Retail demands
Minimize distribution errors
Increased flexibility in
maintaining/sharing product
codes
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SAP AG 2003, Title of Presentation, Speaker Name 22
MDM A secure, role based and easy to use application
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SAP NetWeaver is an application and integration technology platform that helps unify and align people, information and business processes across technologies and organizations; It is a comprehensive, best-in-class, integrated technology based on an intimate and longstanding experience in developing mission-critical business solutions
in more then 20 industries. SAP NetWeaver helps leverage your existing IT investment, today - and is the foundation for future, innovative cross-enterprise processes.
Open
A standards and Web-services based architecture that supports a heterogeneous IT landscape
Fully interoperable with .NET and J2EE environments
Built for business
Reliable, secure, scalable and geared to run mission critical applications
SAP NetWeaver, enables the Enterprise Services Architecture with the following capabilities:
People Integration
Portal Infrastructure
Collaboration
Multi-channel access (mobile, voice, RFID)
Information Integration
Knowledge Management
Business Intelligence
Master Data Management
Process Integration
Integration Broker
Business Process Management
Application Platform
J2EE & ABAP engine
DB and OS abstraction
Composite Application Framework
Solution Life Cycle Management
Portal (Infrastructure)
Combines industry leading portal technology with an unequalled depth and breadth of business content. Drives efficiencies into business processes that span customers, suppliers, partners and employees. An open, standards-based portal, mySAP Enterprise Portal brings collaboration, knowledge management and role-based access to
existing IT systems and Web Services. Through its support of Web-based, mobile and wireless interfaces, the SAP Enterprise Portal provides an immediate enhanced return on existing IT investments.
Collaboration
Collaboration roomand real time collaboration capabilities that promote dynamic communication within permanent and ad hoc teams or communities. Shared email, calendars, threaded discussion and document stores are managed by local administrators who can independently update memberships and access rights.
Multi-channel access
Provides access to your enterprise systems via mobile devices, voice or RFID.
This key capability of SAP NetWeaver allows enterprises to extend their business processes to where business occurs, thus leveraging their existing investment and enabling new user communities. Through SAP NetWeavers Mobile Infrastructure companies can extend mission critical mobile business applications to their users in either a
connected or disconnected environment either utilizing SAPs ready-made applications or developing their own via a standardized development framework.
Knowledge management
Open KM platformwith user-centric services that provide a single access point to 3rd party repositories and SAPs own content management systems that delivers integrated search, taxonomy, classification, content management and publishing and the respective workflow processes.
Business Intelligence Platform
SAPs Business Intelligence platformis an end to end, solution for all of your BI needs. The scalable architecture and open-standards-based technology enables organizations to integrate, analyze, and disseminate relevant and timely information. It integrates data from various sources providing consistent information for analysis quickly, in
the right context, and at the appropriate level of detail. It also provides a robust suite of BI tools to easily create and deploy customized, interactive reports and applications, supporting decisions at every level throughout and beyond the enterprise walls.
Master Data Management
See next slide
Integration Broker
In addition to enabling XML/SOAP based communication between application components fromvarious sources and vendors, the SAP Exchange Infrastructure includes the capabilities to define software components, interfaces, mappings and content-based routing rules. This so called shared collaboration knowledge represents meta
knowledge or business semantics describing integration relevant facts based on open standards
Business Process Management (BPM)
Business Process Management addresses the needs of modeling and driving processes in a dynamic landscape. It allows combining underlying applications into adaptive end-to-end processes spanning the entire value chain. It also enables ad-hoc creation and execution of workflows by end users.
Application Platform(J2EE and ABAP)
Provides full support for platform-independent Web services, business Web applications, and open standards-based development built on key technologies such as Java 2 Enterprise Edition (J2EE) and ABAP. As a result, customers can leverage existing technology assets while building and deploying the dynamic e-business applications
and Web-service oriented solutions that drive today's collaborative business.
Solution Lifecycle Management
Centralized technology for all stages of the solution life cycle, fromdesign, development, deployment, implementation, versioning and testing through ongoing operations like administration and change management. Provides tools for developing, testing, and deploying Web applications through the entire software life cycle.
Composite Application Framework
Composite Application Framework is the factory in which xApps are built, many times, quickly and easily. It contains the tools, methodology, rules and patterns that allow SAP and its partners to efficiently develop xApps.
Unique Attributes
Most reliable, scalable and proven architecture
30 years of experience building business applications with 18,000 leading-edge customers and 50,000 installations. Combine this with native Web technologies such as Java/J2EE, XML, and Web services and you get the industrys most scalable, and reliable infrastructure for running mission critical business solutions
Only integrated platformto provide complete information integration
SAP NetWeaver integrates both structured data, with best-in-class business intelligence capabilities, and unstructured data, with knowledge management capabilities. BI capabilities include a robust BI Platform, a complete suite of BI Tools including reporting, analysis and information delivery, data warehouse management and
administration, and Extract, Transformation and loading (ETL). Knowledge Management offers user-centric services that provide a single access point to 3rd repositories and SAPs own content management systems. It delivers integrated search, taxonomy, classification, content management and publishing and supports customized
workflow processes.
SAP AG 2003, Title of Presentation, Speaker Name 23
SAP NetWeaver
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PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Knowledge Mgmt Bus. Intelligence
PROCESS INTEGRATION
Integration
Broker
Bus. Process
Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
...
Master Data Management
R/3 CRM CRM Legacy Legacy
Procurement Sales Shipment
Enabling Cross-industry Solutions With SAP MDM
SAP MDM enables
information sharing
between diverse
applications like ERP,
CRM etc.
Users can share
updated customer
information in sales,
marketing, fulfillment
etc.
Users in engineering,
design, production
etc. can collaborate
with product
information
With streamlined
processes, resources
can be shifted from
maintenance to
innovation
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SAP MDM lowers TCO by pre-integrating other NetWeaver applications such as
Business Intelligence for analysis and reporting, Enterprise Portals for a consistent,
ease to use, role based paradigm, Knowledge Management for consistent way of
associating information such as parts specifications or other sources of related data
to master data in MDM.
Such pre-integration is more than the sum of just bundling products together. Pre-
Integration delivers a significantly lower TCO as well the installation. It enables
companies to go to market much sooner and save on consulting costs that may be
incurred by trying to integrate so called best of breed solutions together.
SAP AG 2003, Title of Presentation, Speaker Name 24
How SAP MDM is pre-integrated with NetWeaver
SAP NetWeaver
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PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
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SAP & non-SAP system connectivity
Routing, Transformation, Mapping
Web Services Exposure
MDM to BW seamless extraction
Standard Analysis/Reporting
Common Web Server
ABAP & J2EE support
Associate structured content with master data
E.g. parts specification document with part
master
User and Role management
Collaboration
Portal based User Interface
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SAP AG 2003, Title of Presentation, Speaker Name 25
SAP MDM 2.0: Scope and Delivery Schedule
Business Partner
Product Master
Technical Asset
Product Structure
Documents
Change Management
Development
Closed
28.02.2003 Q3.2003
Start Product Ramp-Up
SAPPHIRE `02 Lisbon
SAP MDM first
announcement
Sep 4
th
Sep 6
th
2002
Sep 30
th
, 2003 SAP MDM 2.0
has shipped on schedule to
ramp up customers
SAP MDM supports an
incremental approach to a
cohesive master data
management in a
distributed and hetero-
geneous environment
Content
Consolidation
Master Data
Harmonization
Central Master
Data Management
1
3
2
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Q: How can I nominate customers for the ramp-up?
A: Please contact one of the ramp-up contacts for SAP MDM. Checklists are
available to verify the customer requirements.
EMEA: Jochen Unterburg jochen.unterburg@sap.com
Americas: Clemens Weis Clemens.weis@sap.com
SAP AG 2003, Title of Presentation, Speaker Name 26
SAP MDM 3.00: Scope and Delivery Schedule
Industry focus:
Financial Services (Banking)
Consumer Products
Cross group reporting/Global Spend (Discrete & Process industries)
Infrastructure / Development Enhancements:
Object model enhancements
Improved distribution & monitoring capabilities
Enhance matching/cleansing capabilities
Additional Services
Industry specific enhancements
Spring, 2004
Code Complete
Summer, 2004
Start Product Ramp-Up
Summer, 2003
Requirements
Analysis
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SAP AG 2003, Title of Presentation, Speaker Name 27
Ramp-up Roadmap MDM 2.0
The Ramp-Up Process for each customer will be conducted in two steps:
Ramp-Up Preparation phase
Ramp-up customers will be selected and nominated
Feasibility checks on Ramp-Up customer site supported by SAP consultants
Creation of Implementation Plan and Risk Management Plan for each
Ramp-Up customer
Ramp-Up Implementation Start
Implementation projects on customer site will start
Regular feedback provision (via project managers to SAP Ramp-Up owner and
SAP Backoffice)
Ramp-Up runs until end of July 2004
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SAP AG 2003, Title of Presentation, Speaker Name 28
SAP NetWeaver MDM Partner Program
Partner Ramp up Program
MDM is part of the SAP NetWeaver Partner
Program
Initial Partners have been trained
HP offers SAP MDM specific hardware
bundles for EMEA customers
Simple and cost efficient
implementation of SAP MDM
The Starter Kits for SAP Master Data Management
are try & buy packages

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