Taking Control of your Master Data with SAP Information ...fm.sap.com/data/UPLOAD/files/Taking...

Taking Control of your Master Data with SAPInformation GovernanceAnthony Tranchita, Senior Solutions Engineer

July 23rd, 2013

© 2013 SAP AG. All rights reserved. 2

Agenda

The Need for Master Data Governance

SAP Master Data Governance Overview

The Benefits of Master Data Governance

Summary


Master data management is a business imperative

High master datamaintenance costsNeed for multiple systemsto manage master data indifferent domainsLack of flexibility in dynamicbusiness environments

Lack of consolidated viewof customer data across allchannelsCustomer transactions arecompromised due to limitedview of the facts

Lack of transparencyrelating to suppliers andproductsHigh costs due toinsufficient supplierselection and rationalizationLoss of potential for benefitrealization (i.e. discounts,conditions, centralcontracts)Limited availability of up-to-date master data in mybusiness network

Inconsistent financialmaster data across theenterpriseManual efforts to updatefinancial master data inlocal financial systemsRisk of non-compliance toIFRS, SOX etc.Slow group closesLack of transparency aboutchanges (Who, what, when,why?)

Organizations & Roles

Challenges

IT

CIOCFO VP of Supply Chain,VP of Planning

Financials Sales

(S)VP of Sales, (S)VPof Sales & Marketing

Supply Chain


What happens if you don’t get it right?

Reduced Sales Effectiveness

Lack of consolidated view of customer data across all channelsCustomer transactions are compromised due to limited view of the facts

Sub-optimal Procurement Decisions

Lack of transparency relating to suppliers and productsHigh costs due to insufficient supplier selection and rationalization

Delayed Go-to-Market Process

Failure to capitalize on market opportunity when introducing new productsLack of real-time collaboration with front office, thus hindering customer services

Ineffective Business Decisions

Lack of consistent information impedes to make critical decisions supporting innovationCompromised business dynamics with negative impact on managing resources effectively


Getting master data right in thiscomplex landscape requiresbetter information governance

MillProducts

Mining

Chemicals

Automotive

Defense & Security

Oil & Gas

Healthcare

Engineering,Construction& Operations

Industrial Machinery& Components

HighTech

Aerospace& Defense

Life Sciences

Retail

Utilities

HigherEducation& Research

Insurance

ConsumerProducts

WholesaleDistribution

Professional Services

PublicSector

Banking Media

Telecommunications

Travel &LogisticsServices

Master data is the “DNA” of the enterprise

Enterprisemaster

data

Procurement Supply chain

CRM* PLM**

Finance Manufacturing

* Customer Relationship Management** Product Lifecycle Management


Questions that Will ShapeYour Information Governance Program

What business priority is enabled most by quality information?

What data fields and aspects of data are the most important to govern?

What are the potential benefits of governing this information?

Who are the stakeholders for the business priority?

What is the perceived and actual level of data quality?

What processes and systems are used to create and update information?

Are there standards in place today?

What business process/technology is used to govern information today?

How can I ensure success?

What does great information management look like?

© MCV LLC

1

2

4

5

6

3

7

8

9

10


Agenda




Summary


EnterpriseInformation

EmployeeData Entry

CustomerSelf-Service

DataMigrationProjects

ITApplication

Updates

Purchasedor RentedExternal

Data

Operational Data Governance Best PracticeBusiness Process - Point of entry and Continuous Data Quality Monitoring

Implementing InformationManagement early eliminatesrepetitive work downstream andincreases productivity andaccelerates ROI

Monitoring on-going data qualityensures business standards aremaintained


SAP Master Data GovernanceCentrally govern master data on top of SAP Business Suite

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

ConsistentData

Delivers consistent definition, authorization and replicationof key master data entities for SAP. Eliminates error pronemanual maintenance processes for master data in multiplesystems

Integration Native integration with SAP Business Suite, SAP ERP andNON-SAP integration

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

Data QualityIntegrates with SAP Data Services for data quality and dataenrichment as well as SAP Information Steward for dataremediation

SAP provides out-of-the-box, domain-specific governance to centrally create, changeand distribute master data across the entire landscape.”

Aaron Zornes, Chief Research Officer, The MDM Institute

“


SAP Master Data Governance capabilitiesFacilitating utmost business process performance

SAP MasterData Governance

IntegratedObject Model

Robust DataReplication

Governance,Collaboration& Data Quality

Re-Usability& Extensibility

DeliveredOut-of-the-Box


TCO and Business/IT ValueDelivered Out-of-the-Box

Low TCOIntegration services for NON-SAP systemsFull Integration to SAP Systems

Flexibility Workflow flexibility closely integrated frameworkfor defining business rules

Ease ofconsumption

Deliver roles on a web based UIDeliver process-centric solutionDeliver predefined Data Quality Services

Best Practice Deliver a Data Model proven by severalapplications & industries

ProcessTransparency

Reuse of existing logic of the SAP Business Suiteand process monitoring and analysis

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


Bas

ic&

Cla

ssifi

catio

nD

ata

Material

Fina

ncia

lsan

dC

ontr

ollin

g

Financials

Business Partner Attributes

Supplier Attributes Customer Attributes

Supplier & Customer

Org

.Uni

tDat

aVa

lue

Cost ElementCost Element

Org. Units:CompanyGroupsProfit CenterCost Center

Org. Units:CompanyGroupsProfit CenterCost Center

Chart of AccountsChart of Accounts

GL AccountGL Account

FIN StatementVersions

FIN StatementVersions

Central DataCentral Data

Bank DetailsBank Details

Tax NumbersTax Numbers

RolesRoles

Industry SectorsIndustry Sectors

General DataGeneral Data

Comp. Code DataComp. Code Data

Purchasing DataPurchasing Data

Addresses with Usage and VersionsAddresses with Usage and Versions

ClassificationClassification

General Data& DescriptionsGeneral Data

& Descriptions

Units of MeasureUnits of Measure

Sales DataSales Data

Plant DataPlant Data

Valuation& CostingValuation& Costing

EAN, UPCEAN, UPC

Business Partner RelationshipsBusiness Partner Relationships

IdentificationIdentification

General DataGeneral Data

Comp. Code DataComp. Code Data

Sales Area DataSales Area Data

Tax IndicatorsTax Indicators

SAP Master Data GovernanceIntegrated Pre-delivered Data Models and Flexible Custom domains

Out-of-the box delivery of proven data models for operational and master data and custom domains

SDN MDGM/S ExtensibilityMDGF Data Model

ConsolidationUnits

ConsolidationUnits

Custom

Custom datadomains e.g.

Commodity,location, etc…

Custom datadomains e.g.

Commodity,location, etc…

Custom dataextensions

Non-SAP andSAP

Custom dataextensions

Non-SAP andSAP


Principles of the master data business process

Roles, responsibilities and task authority(e.g. create, change, approve)

Collaborative and flexible businessprocesses (workflow) to distributeresponsibilities across business units

Can be adapted and configured based oncustomer business processes

Linear or distributed & workflow based

Extend the business process by addingbusiness logic and integrate data qualityor external services

In process data stored in a separatestaging repository, transferred tooperational database after final approval Approval

Business LogicBusiness Logic


User centered designWork center provides work lists, search and applications


Data Quality Embedded within the Business Process

Duplicate PreventionChecked early and embedded in theprocessHigh quality of matching usingEnterprise Search or Data Services

ValidationsRe-use of existing validation logic inSAP ERPCustom defined validations (e.g. codelists, simple checks, or modeled rulesvia SAP BRF+)

Address EnrichmentSimple check and selection listsIntegration with content provided bySAP Data ServicesAutomatically add Tax Jurisdiction Codere-using existing interfaces / providersEmbedded Data

Quality


Process transparency via AnalyticsChange Request Reporting and Service Level Agreements

Change request SLA definition (e.g. max.processing time per change request type andpriority)Reporting on change request duration and SLAcomplianceMonitor and visualize information graphicallyMonitor the progress of My Change RequestsCustomers can add content to Side Panel(Floor Plan Manager/CHIPs)

CompleteSupplier

Data

RequestCreation/Change

ReviewChangeRequest

CompleteData

ApproveChangeRequest

Enrich inLocal

System

Business User MD Experts Business User MD Steward Local MD Steward

Revise

Create and Change Business Process Workflow


Data Quality Dashboards and Remediation ProcessMaster Data Governance and Information Steward

Information Steward DataQuality Scorecards fullyintegrated with Master DataGovernance BusinessProcesses

Cleansing Case can becreated directly from failedrecords (highlighted)

Predefined validation rulesand DQ Scorecards

Records dynamicallyfiltered based on drill downin Scorecard

Short demonstration: Data Quality

Create ChangeRequest fromfailed records


MDG Data ReplicationKey Capabilities supporting replication processes

Data Replication Framework (DRF)

Replicate selected data to SAP andNon-SAP systems by defining filters

Replication triggered via Workflowapproval, scheduled Automatically orManually invoked

Supports Key Mappings between objectinstances in non-harmonized scenariosbased on Unified Key Mapping Service(UKMS) and Value Mapping

Peer-to-peer Replication via SOAServices (ALE, RFC, File, CIF) orMediated communication supported withSAP NetWeaver Process Integration

Monitoring of replication activities,failures with drill-down capabilities

Non-SAP SystemSAP System

P2P

Mediated

MDG HubSupplier ID: 3140

Target system B(Non-Harmonized)Supplier ID: 4766

Target system A(Harmonized)

Supplier ID: 3140Target system C

(Non-Harmonized)Supplier ID: 13452


Reusability & extensibility

Reuse standard contentReuse existing data structures andfunctionality of SAP Business Suite

Enhance functionalityBe able to enhance MDGfunctionality based on predefinedcontent (e.g. plant or sales data) orcustomer-specific extensions

Extend data structuresProvide easy-to-use extensibilitycapabilities for enhancing:

data modeluser interfaceprocessesdata replication

Central Team

CoreProcesses

Extended

IndividualProcesses

Tasks

Reused


Central Hub for Master Data Processes Client Systems

ERP/FIN

ERP/OPS

ERP + PLM

SCM

SRM

CRM

Integrated in Application Server (ABAP)

Data QualityInterface

Data QualityInterface

Search /Dupl. Check

Search /Dupl. Check

ChangeRequestChangeRequest AnalyticsAnalytics

Key/ValueMapping

Key/ValueMapping Rules EngineRules Engine UI FrameworkUI Framework MetadataMetadata

Master Data Governance Applications

Mat

eria

l

Cus

tom

er

Supp

lier

C.O

fAcc

ount

s

Cos

tCen

ter

Prof

itC

ente

r

Com

pany

Cus

tom

er-d

efin

ed

User InterfacesUser Interfaces

Data OwnershipData Ownership

Data ReplicationData Replication

ValidationsValidations

WorkflowsWorkflows StagingStaging

3rd Party

SAP Master Data GovernanceArchitecture Overview

SAP InformationManagement SuiteSAP Information

Management Suite

EnterpriseSearch

EnterpriseSearch

Data ServicesData Services

InformationSteward

InformationSteward

PortalPortal NWBCNWBC


Agenda




Summary


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

Manage financial master data centrallyOut-of-the-box master data governance application to centrallycreate, change and distribute financial master data with focus onSAP Business SuiteUpfront accuracy of chart of accounts and other elements such asgeneral ledger, hierarchies, org units etc.Change requests organized as Editions to steer approval processDeliver consistent data across corporate group and local systemsPre-built validation against SAP business logic

ReleaseEdition

DistributeEdition

Adjust inTarget System

CreateEdition

CollectComments

CreateChange

Request

ChangeRequests

FinalApproval

Approvalby

Business

ExecuteChangesCorporate Master

Data Steward

Corporate MasterData Responsible

Master Data Council

BI Responsible

Local Accountant

Local Accountant/Corporate Accountant

Head of CorporateMaster Data

Local Accountant

CorporateAccountant

Head of CorporateMaster Data

Now that masterdata is consistent

throughout, creatinga new cost centertakes less than 30minutes instead of

several days.”

Jian Ming Se,Global IT

Associate Director,Colgate-Palmolive

“


Colgate-Palmolive Supports Information GovernancePrograms with SAP

“With SAP enterprise information management solutions, we can profile govern andmeasure our enterprise data more effectively. We utilize packaged and extensiblesolutions that support governance program, automate compliance and leverage ourinvestments.”Jian Ming Se, Associate Director, Colgate-Palmolive Company

Improved EfficiencyOf business processesthrough greater dataaccuracy

Increased reliabilityof analysisThrough greater trust inbusiness information

Improved processcontrol across globallandscape

Company or OrganizationColgate-Palmolive Company

Headquarters or LocationNew York City

IndustryConsumer products

Products and ServicesHousehold, personal and oralcare, and pet nutrition products

Employees39,000

Web Sitewww.colgatepalmolive.com

SAP SolutionsSAP Master Data GovernanceSAP Information StewardBusiness Context Viewer (sidePanel)

ObjectivesSupport Information Governance for both global and regionalbusiness unitsImplement company-wide standards for master data, starting withvendor, financial and material domainsMeasure and control quality of information to make it a valuable assetthroughput the enterprise

Why SAPEnterprise-strength master-data management solutionBusiness user interface for profiling and measuring data qualityin planning reports extracted from SAP ERP and SAP AdvancedPlanning & Optimization (SAP APO)Tight integration with SAP Business Suite across the IT landscape

BenefitsIncreased accuracy of data and reports through centralizedmaintenance of master data and ongoing data qualitymonitoringFaster financial close and improved efficiency for financialreportingBetter data quality to drive process improvement across multiplebusiness channels


Central creation and maintenance of supplier master data asa governed process within supplier lifecycle management

Reduce procurement costs based on global visibility of relationshipsImprove cycle time for new contract creation by creating andmaintaining supplier master data as a governed process acrosssupplier management processesCentralized supplier management as part of procurement to ensureSLAs are met, simplify contract management, and mitigate risk

Govern supplier master dataManage mission critical data for procurement organizations

Requestor• Central Data• Comp. Code• Purch. Org

Specialist• Review• Complete

Info

PurchasingSpecialist• Review• Purch. Info

FinancialSpecialist• Review• Finance Info

Reject/Rework

Purchasing OrgData Required?

Submit for

approval

Approve

Cancel/ChangeRequest

Company CodeData Required?

Stop

SAP solutions forinformation

governance havebrought many

benefits, such asvisibility into global

spending persupplier, whichimproved price

negotiationleverage.”

Global Data Lead,Oil & Gas Company

“


Global Auto Maker Enables Operational Excellencewith Information Governance

Headquarters or LocationEurope

IndustryAutomotive

Employees15,000+

Products and ServicesSAP Master Data GovernanceSAP Data ServicesSAP Data Quality ManagementSAP Information Steward

ObjectivesAutomate and accelerate business processes, while ensuringregulatory compliance

Lower supply chain costs and accelerate time to market

Increase customer service, satisfaction and retention

Why SAPComplete solution that includes data integration, quality, and profiling,as well as master data harmonization and syndication

Ability to manage multiple master data domainsPart of a larger ERP consolidation/harmonization project

Benefits• Ensure fast yet accurate and compliant close by governing financial

master data such as chart of accounts across corporate and localsystems

Reduce procurement costs by gaining global visibility into supplierrelationships and spendImprove accuracy of dealer sales and delivery date quotes as wellcustomer order fill rates by harmonizing data across the entire order todelivery process

“Organizations that strategically manage spend realize 30% higher average annual savings.”SAP Performance Benchmarking Study

IncreasedOperational efficiency

GreaterTransparency across thesupply chain

ImprovedCustomer buying andownership experience


Central creation and maintenance of customer master dataas a governed process managing the customer lifecycle

Obtain insight across customer interactions and leverage this insightto align marketing and sales and focus sales efforts on the mostprofitable customer opportunitiesMaintain the integrity of CRM processes allowing for improvedcampaign effectiveness, opportunity management, sales, andcustomer serviceImprove sales force productivity by eliminating duplicate customerrecords, duplicate opportunities, and ensuring complete contactinformation

Govern customer master dataEnable consistency towards your clients across all business units

RequestorMaintainCentral Data

Reject/Rework

Submit for Approval Approve

Cancel/ChangeRequest

Stop

ActivateData &Replicate

Master DataSpecialist• Review

Central Data

Central Data

Thanks to SAP wehave a solid

customer datafoundation to

support our growthobjectives.”

VP Sales,Telecommunications

Provider

“


PT Telkom: Improves Information Governancewith SAP Master Data Governance

“We are very happy with SAP's ability to help us with our information governanceefforts. PT. Telkom Indonesia had a lot of data spread out across different CRMsystems. Using SAP Data Services we were able to identifying duplicates and createcleansed and standardized records for all of our customers. The next step was toproactively manage the creation of our customer data using SAP Master DataGovernance (MDG). Now we have a solid data foundation, which is critical to help usstandardize on SAP CRM and support our significant growth expectations.”PT Telekomunikasi Indonesia, Tbk

ObjectivesConsolidate corporate customers across 3 separate CRM systemsImprove cross sell and up sell across home, business, and mobile customerbase

Why SAPComplete solution that includes data integration, quality, and profiling,as well as master data harmonization and syndicationAbility to handle big data requirements of telecommunications industry 100Mcustomers includes “individuals” and “organizations” by end of 2012.Enabled consolidation and standardization without disruption totransactional CRM systemsAdoption of SAP HANA for MDG in 2013

BenefitsImplemented proactive information governance modelCreated consolidated, cleansed and standardized master data repositorySet the data foundation needed to move to a single CRM system

ReducedDuplicate customerrecords

IncreasedControl and compliancewith data standards

Company or OrganizationPT Telekomunikasi Indonesia,Tbk.

Headquarters or LocationIndonesia

IndustryTelecommunications

Employees26,000

Web Sitewww.telkom.co.id

Products and ServicesSAP Master Data GovernanceSAP Data Services


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

Manage material master data centrallyReduce time to market through central creation of consistent,correct and complete material master data as a governed processthroughout design and enterprise operations processesReduce cost of new product development and introductionthrough centralized governance of material data from engineeringto manufacturing resulting in stable and high quality productReduce manufacturing cycle time through central creation ofproduct master data as a governed process as part of enterpriseplanning and control processes feeding trusted master datathrough plant-level operations and manufacturing execution

RequestCreation/Change

CompleteMaterial

Data

ReviewChangeRequest

CompleteMaterial

Data

ApproveChangeRequest

Enrich inLocal

System

Business User MD Experts Business User MD Steward Local MD Steward

Revise

Material CreationBusiness Workflow

Material ID 4711Change Request A1

By deploying SAPMaster Data

Governance, weare able to meet

our highrequirements forthe quality of our

master data.”

Bjoern Ebeling,Associate Director,

Merck KGaA

“


Agenda




Summary


Benefits of SAP Master Data Governance

Point of entry, central creation of master dataenables high data quality and leads to significantbusiness improvements.

Out-of-the-box, process-centric applicationsprovide centralized governance for master datadomains such as financial data, supplier data,customer data, material data.

Native integration with SAP Business Suite usingexisting business logic and infrastructure leads tolow TCO.

Provides flexibility in heterogeneous environments,from configurable workflows and extensible datamodels, up to custom built applications.

SAP provides out-of-the-box, domain-specific governance to centrally create, changeand distribute master data across the entire landscape.”

Aaron Zornes, Chief Research Officer, The MDM Institute

“


Thank you!

Anthony TranchitaSolutions Engineer

SAP America, Inc.Highland Landmark III3010 Highland ParkwayDowners Grove, IL 60515T 773-283-0231M 773-213-4007F [email protected]


No part of this publication may be reproduced or transmitted in any form or for any purposewithout the express permission of SAP AG. The information contained herein may bechanged without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietarysoftware components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of MicrosoftCorporation.IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x,System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer,z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server,PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER,OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP,RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX,Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registeredtrademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks orregistered trademarks of Adobe Systems Incorporated in the United States and/or othercountries.Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin aretrademarks or registered trademarks of Citrix Systems, Inc.HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, WorldWide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license fortechnology invented and implemented by Netscape.SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer,StreamWork, and other SAP products and services mentioned herein as well as theirrespective logos are trademarks or registered trademarks of SAP AG in Germany and othercountries.

© 2013 SAP AG. All rights reserved

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, CrystalDecisions, Web Intelligence, Xcelsius, and other Business Objects products and servicesmentioned herein as well as their respective logos are trademarks or registered trademarksof Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybaseproducts and services mentioned herein as well as their respective logos are trademarks orregistered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respectivecompanies. Data contained in this document serves informational purposes only. Nationalproduct specifications may vary.The information in this document is proprietary to SAP. No part of this document may bereproduced, copied, or transmitted in any form or for any purpose without the express priorwritten permission of SAP AG.

This document is a preliminary version and not subject to your license agreement or anyother agreement with SAP. This document contains only intended strategies, developments,and functionalities of the SAP® product and is not intended to be binding upon SAP to anyparticular course of business, product strategy, and/or development. Please note that thisdocument is subject to change and may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in this document. SAP does notwarrant the accuracy or completeness of the information, text, graphics, links, or other itemscontained within this material. This document is provided without a warranty of any kind,either express or implied, including but not limited to the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct,special, indirect, or consequential damages that may result from the use of these materials.This limitation shall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has nocontrol over the information that you may access through the use of hot links contained inthese materials and does not endorse your use of third-party Web pages nor provide anywarranty whatsoever relating to third-party Web pages.

Taking Control of your Master Data with SAP Information ...fm.sap.com/data/UPLOAD/files/Taking...

Documents

Transcript of Taking Control of your Master Data with SAP Information ...fm.sap.com/data/UPLOAD/files/Taking...