Driving Business Value with MDM

Jolene Jonas
MDM Data Architect/Product Manager Intel Corporation

Nimish Mehta
Senior Vice President, EIM SAP Labs LLC.

Driving Business Value With Data Unification

Nimish Mehta SVP, EIM SAP LABS LLC.

Data Unification with SAP NetWeaver

The Data Problem Data Unification with SAP NetWeaver Customer Success Stories Best Practices and Getting Started

The New Integration Challenge

Disparate technologies do not support process innovation

CRM

Inflexible, slows process change

Enterprise Integration

Hardwired process
Business Intelligence

Portal

IT silos cant meet LOB needs

IT silos prevent delivering composites
Messaging

Master Data Mgmt

Security

ERP SRM

Costly to maintain, ties up budget

Exponential # of integrations No cohesive master data

Application Server

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Bad Master Data hinders process innovation

since every department has a different version of it

YOUR VALUE CHAIN

SRM
Part: 8975 VENDOR: ABC123

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

Logistics
VENDOR: XYZ456

M & As are worsening the problem

ERP
199, 3rd Street Palo Alto, CA

Jane Peters

Part: B7521

Call Center
Jane Smith 4418 N. Str. Chicago, IL 60611 Part: 2574

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Costs and Complexity increase over time

As business events continue to impact the data

Without Master Data Management

Data Quality Doing business is expensive

57% of marketing content work was to mitigate errors

New product launch

M&A Outsourcing

Data Warehousing

40 % orders getting blocked due to master data problems

One-off cleansing

Time

$6 billion Maytag merger

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Managing Master Data Actively

Is Imperative to ensuring optimal process innovation

Master Data Management
Data Quality Improve data quality in steps

Outsourcing
Without Consolidation
Data Quality Doing business is expensive

M&A New Product Launch Consolidation Harmonization Central MDM

Time

Time

Consolidation
Ensure consistent master data across systems

Harmonization
Cleanse and distribute across entire landscape

Central Management
Create consistent master data from the start, centrally

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Data Unification with SAP NetWeaver

The Data Problem Data Unification with SAP NetWeaver Customer Success Stories Best Practices and Getting Started

SAP NetWeaver A Strategic Platform for Enterprise SOA

Master Data is an integrated capability of the Platform

Composition Environment
Fast paced edge of the business Dont just code compose! Lean consumption

SOA Provisioning
Stable, scalable core Open, standards-based Service-enabling processes, information, events

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Master Data Management

with SAP NetWeaver

Manage Any Master Data

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

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Rich Product Content Management

One view of product information anytime anywhere
1038-GID Parts

Publish

GEAR

A124K Parts

BR-2K Gears

Benefits:
Complex product and relationship management Print/web publishing including layout and production

GEAR

SPIDER GEAR

Example: Product information is

consolidated and enriched and published internally or externally

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Customer Data Integration

One view of customer information anytime anywhere

Jane Peters Smith 4418 North St. Chicago, IL 60610

Analysis

Jane Smith 4418 N. Str. Chicago, IL 60611

Jane Peters 199, 3 Street Palo Alto, CA 94304

rd

Extensive matching framework Provides web services to customer data access SAP & Non-SAP integration

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Improved Business Intelligence

Deliver unique insights with an integrated platform

BUSINESS INSIGHT

MASTER DATA

TRANSACTIONAL DATA

=
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

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CONSOLIDATING HAS NEVER BEEN EASIER

Consolidate, 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 EASIER

Consolidate, harmonize and centrally manage master data
Centrally manage master data Leverage validation rules to enforce data integrity Manage rich content set and relationships associated with master data record

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

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
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Why Customers are choosing SAP ?

SAP NetWeaver
One master data solution for all business processes

One solution for ALL master data in your industry specific process

TAKE ORDER

VERIFY AVAILABILITY

IDENTIFY SUPPLIER

MANAGE CUSTOMER

Which employee should we assign to?

Do I have the right product?

Who is my best vendor?

Who is my customer?

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First step to enterprise SOA

Unify any data

Accelerate new business processes with accurate master data

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

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

Easy deployment
Pre-built data models, mappings and iViews

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Master Data Management at Intel

Jolene Jonas SAP MDM Product Manager SAP Data Architect

Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation
Summary/Q&A

Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation
Summary/Q&A

Company Background
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 Presence
124 Offices in 57 countries 97,000 employees + 39,000 Contingent workers Over 450 products & services 2005 revenues $39 billion Information 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

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Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation
Summary/Q&A

Formalizing Data Quality

Effort began in 2001 Elevated awareness corporate wide
Data 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 Organization

Message given tops down Targeted 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 language Single Record of Origin for Configuration and Master Data Increase reuse Monitors & audits to track improvement Streamline 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

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Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation
Summary/Q&A

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 consumed Definition 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

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Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation
Summary/Q&A

Tops Down Approach to Data

First - Define the conceptual layer
Sets the foundation, the business framework Brings Intel to one data dictionary
Single terms and definitions

Second Seed the logical layer from the conceptual

Reuses approved conceptual entities Adds all the facts/attributes, business data rule Grows as new needs are identified Acts as blueprint for physical design Services being designed based on the model

Third - Use logical model to seed the physical models

Ensures reuse of approved entities and attributes Physical representation of the applications Why?
Links application speak to Intel speak Roadmap for enhancements/integration/reuse Impact analysis
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Pre- Enterprise Commodity Data Model

One Term, Many Definitions

Material Planner

Summarize by taxable area

Tax Man

Planning Categories SAP CRS Material Master (CIM) Material Group = Commodity

Reporting

Lowest Detail

Spends Manager

Summarized Grouping

Spends Analyst

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Enterprise Driven Commodity Data Model

Single Definition per Term
Commodity Gatekeeper
Controlled Entry

Material Planner Tax Man

SAP CRS Material Master(CIM) Material Group= Commodity Detail New Commodity Hierarchy

Summarize by taxable area Commodity plus Hierarchy Reporting

Summarized Grouping

Detail Commodity Report

Spends Manager

Spends Analyst

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Enterprise Item Conceptual Model

Item BOM Subject Area Item

Material Product

Subassembly Subject Area Material Subject Area Product Kit Direct Material Indirect Material

Service Finished Good Intangible Product

Manufacturing Indirect Material

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Company Background Formalizing Data Quality What is Master Data? Data Modeling Approach Tops Down Physical Implementation Summary/Q&A

Intel Master Data Direction

Determining Best Fit for Record of Origin
Finance data
Currently using SAP R/3 as single Record of Origin
Minimal gaps Meets business need

Therefore move to SAP ECC^

Location data
SAP 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 Component MDM Master Data Management

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Intel Master Data Direction

Determining Best Fit for Record of Origin Item (Material Master) & Commodity
Currently use R/3 as authorized Record of Origin Large gaps in data & business rules Therefore, targeting Record of Origin as SAP NetWeaver MDM

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

Building out mySAP CRM and SRM in 2007 Long 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

*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 Benefits
Premier performance, scalability, and the highest reliability at a fraction of the cost of proprietary systems Integrated, 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 needs
MDM 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 Customers 2007/2008 will see further rollout of MDM to business applications

Collaborating with SAP on a Master Data Service/xApp

Get Supplier, Search Supplier Leverages 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 benefits

Strong influence on SAP strategy for central maintenance
Customer champion on the Influence Council

Many product enhancements at Intel request Alignment with SAP SOA team on a Master Data Service Very strong support from SAP enabling our success

Go with SAP data model

More complete integration back to core SAP Extend what is delivered

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Summary: ROI savings estimated at $10-18m

Benefits of a Data Model Driven Approach
Grounds Intel on common language Ensures fully integrated, reusable design Provides consistent blueprint to development community Reduces 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 Management
Both as an Record of Origin and Record of Reference

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