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SAP Master Data Management Overview
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1SAP Master Data Management
Overview Presentation
2Combining 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
3 SAP AG 2003, Title of Presentation, Speaker Name 3
SAP NetWeaver Delivers on the Vision of ESA
EnterpriseServices
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:
4Open SQL for Java(foundation for DBMS abstraction and upgrade capabilities)
Web Dynpro Java: runtime and tools service layer: Java frontend + ABAP backendJ2EE 1.3 complianceWeb Service infrastructure (Java)Eclipse based NetWeaver Developer Studio
Support of Web Dynpro, Open SQL, J2EEJava System management and software logisticsJava 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
Com
posi
te A
pplic
atio
n Fr
amew
ork
PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PROCESS INTEGRATION
Integration Broker
BusinessProcess Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
Life Cycle M
gmt
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
5 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 begreatly reduced through industry-wide Data Synchronization
Source: Grocery Manufacturers of America, Inc
Its Time to Consolidate & Harmonize
6 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
7 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!
8 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
ContentConsolidation
Master DataHarmonization
Central MasterData Management
1
3
2
9 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)
MDMMDMClientSAP
Clientnon SAP
Clientnon SAP
ClientSAP
Clientnon SAP
10
SAP AG 2003, Title of Presentation, Speaker Name 10
Content Consolidation
MDMMDMClientSAP
Clientnon SAP
Clientnon SAP
ClientSAP
Clientnon SAP
Content ConsolidationCore 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 MappingInformation 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 DoeJ Doe ?
ID Mapping= Non-SAP SAP
ID CIF345 P782
John DoeJ Doe ==
11
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.
12
SAP AG 2003, Title of Presentation, Speaker Name 12
Master Data Harmonization
MDMMDMClientSAP
Clientnon SAP
ClientSAP
Clientnon SAP
Master data harmonization
All of Content Consolidation PLUS
Central management anddistribution 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
13
SAP AG 2003, Title of Presentation, Speaker Name 13
Master Data Harmonization
MDMMDMClientSAP
Clientnon SAP
ClientSAP
Clientnon 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 $
9
Analytics
Local Completion
9+
9+
9
14
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 TesoroArchitecture and required common services
15
SAP AG 2003, Title of Presentation, Speaker Name 15
Central Master Data Management
Central Master DataManagementAll of content consolidation PLUSAll of master data
harmonization PLUSAll master data information
resides centrallyOne-stop data maintenance
Examples:
Definition of synergy partsCentral product data pool supplying
product data to multiple locations for production, assembly, sales and distribution
MDMMDMClientSAP
Clientnon-SAP
ClientSAP
16
SAP AG 2003, Title of Presentation, Speaker Name 16
Central Master Data Management
MDMMDM
w/o Local Maintenance
Central Master DataManagement
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
= 9
ID Mapping
Analytics
Distribution 13.282.401 $
= 737.108 $
4.002.531 $
634.237 $
6.674.288 $
1.234.237 $
9
ClientSAP
Clientnon-SAP
ClientSAP
99
9
17
Customers want to be served efficiently and according to their specific and ever-changing needsCustomer 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 obsoleteAll employees involved in customer interactions rely on the given customer dataHarmonized customer data canbe 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 Smith123 Sinai St.
(212) 512-2134
Internet Service
William Smith213 Sinai St.
(212) 152-2134
Wireless
B. Smith123 Sinai St.
(212) 512-2143
Bill Smith123 Sinai St
(212) 512-2134
Bill Smith123 Sina St
(212) 512-2134
Bill Smith123 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 eachdivision separately for
changes
Customer receives duplicate
marketing materials
18
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:
19
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
20
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 16th, 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
21
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
22
SAP AG 2003, Title of Presentation, Speaker Name 22
MDM A secure, role based and easy to use application
23
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 environmentsBuilt for businessReliable, secure, scalable and geared to run mission critical applicationsSAP NetWeaver, enables the Enterprise Services Architecture with the following capabilities: People Integration
Portal InfrastructureCollaboration Multi-channel access (mobile, voice, RFID)
Information IntegrationKnowledge ManagementBusiness Intelligence Master Data Management
Process IntegrationIntegration BrokerBusiness Process Management
Application Platform J2EE & ABAP engineDB and OS abstraction
Composite Application Framework Solution Life Cycle ManagementPortal (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 room and 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 platform with 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 PlatformSAPs Business Intelligence platform is 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 ManagementSee next slideIntegration Broker In addition to enabling XML/SOAP based communication between application components from various 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 standardsBusiness 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, from design, 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 AttributesMost 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 solutionsOnly integrated platform to 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
CO
MPO
SITE
APP
LIC
ATI
ON
FR
AM
EWO
RK PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATIONKnowledge MgmtBus. Intelligence
PROCESS INTEGRATIONIntegration Broker
Bus. ProcessMgmt
APPLICATION PLATFORMJ2EEDB 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
24
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
Com
posi
te A
pplic
atio
n Fr
amew
ork
PEOPLE INTEGRATION
Multi channel access
Portal Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Master Data Mgmt
Knowledge Mgmt
PROCESS INTEGRATION
Integration Broker
BusinessProcess Mgmt
APPLICATION PLATFORM
J2EE
DB and OS Abstraction
ABAP
Life Cycle M
gmt
SAP & non-SAP system connectivityRouting, Transformation, MappingWeb Services Exposure
MDM to BW seamless extractionStandard Analysis/Reporting
Common Web ServerABAP & J2EE support
Associate structured content with master dataE.g. parts specification document with partmaster
User and Role managementCollaborationPortal based User Interface
25
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
DevelopmentClosed
28.02.2003 Q3.2003Start Product Ramp-Up
SAPPHIRE `02 LisbonSAP MDM first announcement
Sep 4th Sep 6th2002
Sep 30th , 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
ContentConsolidation Master DataHarmonization
Central MasterData Management
1
3
2
26
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 [email protected]: Clemens Weis [email protected]
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, 2004Start Product Ramp-Up
Summer, 2003
RequirementsAnalysis
27
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
28
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