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SAP NetWeaver Master Data Management Harmonized IT landscapes with clean master data EIM Solution Management October 2011

SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

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Page 1: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

SAP NetWeaver Master Data Management Harmonized IT landscapes with clean master data

EIM Solution Management

October 2011

Page 2: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 2

Agenda

Customer Challenges with Master Data

Consolidate Master Data In Heterogeneous Landscapes

Current Release: SAP NetWeaver MDM 7.1

Customer Adoption

Conclusion and Key Take Aways

Page 3: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 3

Master Data Challenges Materialize Across the Organization

Reduced Sales Effectiveness

Lack of consolidated view of customer data across all channels

Customer transactions are compromised due to limited view of the facts

Sub-optimal Procurement Decisions

Lack of transparency relating to suppliers and products

High costs due to insufficient supplier selection and rationalization

Delayed Go-to-Market Process

Failure to capitalize on market opportunity when introducing new products

Lack of real-time collaboration with front office, thus hindering customer services

Ineffective Business Decisions

Lack of consistent information impedes to make critical decisions supporting innovation

Compromised business dynamics with negative impact on managing resources effectively

Page 4: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 4

Overall Impact From Bottom Up By poorly managed master data

Business Execution

Analytics

Master Data

Time

Qualit

y le

vel

Quality of master data dramatically impacts transactional and analytical

processes

What is worse, you’ll only notice it after the damage is already done

M&A

One-off cleansing

Page 5: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 5

Establish Trust in Your Key Information SAP Solutions for Master Data Management

SAP’s solutions for Master Data Management facilitate data consistency across

multiple systems for streamlined business processes (operational MDM) and

enterprise reporting (analytical MDM) while ensuring data stewardship and master

data governance.

Multi-domain coverage supporting diverse implementation styles and usage types

Generic infrastructure plus domain-specific business packages and ready-to-run

applications

Support for SAP Business Suite-centric and heterogeneous landscapes

Industry-specific and horizontal use case coverage

Page 6: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 6

SAP Enterprise Master Data Management Integrated Solution Suite Addressing All Customer Needs

SAP Master Data Governance SAP NetWeaver MDM

Out-of-the-box, domain-specific

governance applications built on SAP

Business Suite to centrally create,

change and distribute master data

Multi-domain capability

to consolidate and share

master data across

system landscape

SAP BusinessObjects Data Services/Information Steward

Industry leading data quality, integration, profiling & visualization

Page 7: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 7

SAP NetWeaver Master Data Management Multi-domain coverage and versatile use across the enterprise

Consolidate and Harmonize Your Master Data

Extract, load and de-duplicate master data from SAP or non-SAP systems

Provide key mapping information and align key data across the entire organization

Build Business Processes on Excellent Master Data

Create and maintain master data in a collaborative and controlled process

Increase Data Quality

Guarantee high data quality with SAP NetWeaver MDM and SAP BusinessObjects Data Services capabilities

Apply Pre-defined Business Scenarios

Product Information Management

Customer Data Management

Global Data Synchronization

Page 8: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 8

MDM

Consolidation with Sustained Data Quality Using native MDM capabilities and BusinessObjects Data Services

Load data from SAP and non SAP

sources

Leverage native MDM capabilities

and/or SAP Business Objects

Data Services to raise master

data quality

Cleansing

De-duplication

Validation

Enrichment

Use MDM processing layer for

Mass maintenance

Workflow-orchestrated

processing

Provisioning of key mapping

Manage

Data Quality

A1 = B2

Page 9: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 9

MDM

Load data from new systems

Match new data to internal,

already consolidated data

Quick access to consolidated

information

Provide key mapping information

to subsequent

migration tools

Acquisition

acq1000 i4711

acq1001 i0815

Merger & Acquisitions (System Consolidation) Integrate the heterogeneous world while raising data quality

Create

Key Mapping

Page 10: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 10

Harmonization Through Data Distribution Raise data quality in heterogeneous landscapes

Subscribe remote systems to enrich master

data with centrally consolidated globally

relevant information

Distribute data to remote systems

(SAP and non-SAP)

Perform local completion of master data

with application-specific information if

required

MDM

Distribute Consolidated

Master Data

… … … …

Page 11: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 11

Collaborative Data Creation Ensure consolidated master data from the beginning

Collaborative data creation

process leveraging SAP

Business Process

Management, involving

Multiple approval levels e.g.

different managers or

departments

Sustained data quality checks

and global duplicate checks

prior to data creation ensure

high quality master data

MDM repository contains

consolidated and reliable

master data fueling enterprise

business processes

SAP NetWeaver BPM

NW

MDM

Create

and syndicate

Request

Search

Check Approve

Web Service calls

Page 12: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 12

Jane Smith

4418 N. Str. Chicago, IL 60611

Leverage best-in-class data quality

capabilities (cleansing, house

holding/address validation, fuzzy

matching, auto-merge, and survivorship)

Predefined business content for

customer data facilitating integration

with SAP landscapes

Open interfaces for use in

heterogeneous environments

Configurable export mechanisms for

SAP analytical applications

Customer Data Management One view of customer information anytime anywhere

Analysis

Jane Peters

North Street Chicago, IL 60600

Jane Peters Smith

4418 North St. Chicago, IL 60610

Page 13: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 13

Predefined business content for

product data facilitating integration

with SAP landscapes

Rich product content management

Product classification, hierarchy and

relationship management fueling

cross- and up-sell potential

Print/web publishing including layout

and production

GEAR

Parts 1038-GID

Product Information Management One view of product information anytime anywhere

A124K

Parts

GEAR

Publish

Gears BR-2K

SPIDER GEAR

Page 14: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 14

Optimized Supplier Spend Reporting Building the Basis to Optimize Supplier Maintenance

Cleanse Consolidate Analyze

MDM

Extract

BW

ERP 1

Part:

0815

Legacy

Supplier

791979

ERP 3 Supplier

851981

Enable consistent view on supplier

spend data

Provide trusted data enabling accurate

reporting facilitating the right business

decisions

Easy-to-deploy with predefined content

and data flows

Direct business impact

Page 15: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 15

Aggregate Physician Spend Enable consistent view on physician spend data

Mr Michael Schmidt Dr.

St. Joseph's Hospital

330 East 63 Avenue Suite

10B

New York NY 10021-7706

Total Expenses : $ 5,000

Mike Schmidt

University of New York

330 S 63rd St # 1000

Manhattan, NY 10012

Total Expenses: $ 4,000

Mr. Micheal Schmidt

Holy Family Clinic

330 E 63rd Road

New York NY 10065

Total Expenses: $ 1,800

Mr. Michael Schmidt, Dr.

Schmidt Practice

330 E 63rd St Ste 1000

New York, NY 10065-7706

Total Expenses:

$ 10,800

Enable consistent view on physician

spend data

Determine when total expenses

exceed spend limit

Provide trusted data enabling accurate

reporting to prevent violation against

legal requirements such as “Physician

Payment Sunshine Act” in the US NW

MDM

Page 16: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 16

Data Pool

Global Data Synchronization Leverage master data consistency across the supply chain

Reduce supply chain costs

with comprehensive

solution for consumer

product companies

Certified to publish

enriched product data to

1Sync data pools

Unidirectional

communication with R/3

Data Pool

Global Registry

SYNCHRONIZATION

Page 17: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 17

NW

MDM

SRM

Supplier Catalog Management Manage supplier catalogues seamlessly in the procurement process

Supplier Catalogues

Load of supplier catalogues into

SRM/MDM catalogue

Quick data access by

in-memory enabled parametric

search

Integration into procurement

process within SRM and ERP

Procurement

Manage

Supplier Catalogues

Page 18: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 18

SAP NetWeaver Master Data Management 7.1 Cross-domain MDM Infrastructure

Lexmark wins Gartner MDM Excellence award 2011

Great flexibility in data modeling and support for complex data structures

Optimized inbound & outbound processing, e.g. Native MDM adapter for SAP NetWeaver PI

Option to use SAP BusinessObjects Data Services for integration of external data sources

Integration with SAP NetWeaver standard administration and life-cycle components

Optionally leveraging SAP BusinessObjects data quality and data integration capabilities

Model-driven generation of Web services

Integration with SAP NetWeaver BPM for collaborative data management

Page 19: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 19

SAP NetWeaver MDM 7.1 SP08 Availability

What’s the current release?

SAP NetWeaver MDM 7.1 SP08 in unrestricted shipment

Where to find further information about SAP NetWeaver MDM?

Go to SDN

> General information: https://www.sdn.sap.com/irj/sdn/nw-mdm

Where to download MDM 7.1?

http://service.sap.com/swdc

> SAP Software Distribution Center

> Download

> Installations and Upgrades

> Entry by Application Group

> SAP NetWeaver > SAP MDM > SAP NetWeaver MDM 7.1

Page 21: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

SAP NetWeaver MDM Customer examples

The system properly supported master data centralization,

harmonization and syndication

The system “played well with others” and was not dependent on

purchasing other SAP systems

We liked where SAP was going with NetWeaver and the vision of

enterprise SOA

Increased quality in master data

Increased efficiency (internally & our vendors)

Platform for consolidation of common Nordic master data

Ease of use – making life easier for our users

Where to be used: R/3, other ERP, POS, internet, print

To be able to consolidate vendor data from our local SAP and non-

SAP systems

A tool compatible with our global SAP landscape and it’s current

deployment of NetWeaver components

Support growth to other vital areas of Global Master Data

Management within Ericsson

Page 22: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

SAP NetWeaver MDM Customer examples

Web-based ecommerce for retail and wholesale products

Customers can place orders, check inventory, pricing, search and find

across thousands of items

Meet compliance mandates for better reporting

Business optimization based on single view of customers, suppliers,

materials and employees

Enterprise MDM for consolidation, harmonization for all object

domains i.e. 6m customer, 180K vendors/ supplier, 1.8m material

masters

Early ROI estimates at $10-18M

Page 23: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

SAP NetWeaver MDM Customer examples

Managing one view of product data

Reduced administrative costs

Improved response time to distributor requests

Reduction in SKU cost from $19/SKU to $ 5.80/SKU

60 % fewer FTE’s required

40% increase in Web Sales

30 % reduction in headcount for data maintenance

Product data updates automatically as opposed to manual efforts that

took 11+ hours

Page 24: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 24

A few years ago we did a survey of our internal supply chain within our internal

companies and discovered that 40% of our orders got stuck at some point due to

master data inconsistencies. This highlighted the need to focus on increasing the

consistency of our master data in order to get more effectiveness in how we run

our business. We see big things coming from MDM and the acceptance level

from our master data team suggests that we have a winner here and we want to

make use of it.” Roderick Hall, Project Manager for Business Information, Ericsson – High Tech

Customer Testimonials

The number of systems and the number of interfaces we are reducing are quite

significant, and we expect to lower our SG&A costs.” Gabriele Bauman, SAP Technology Lead, Nortel Networks

Page 25: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 25

SAP NetWeaver MDM – Success Stories Learn how MDM can help companies realize meaningful value

Page 26: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 26

Summary Key Take Aways

SAP NetWeaver MDM being the cross-domain infrastructure

technology for enterprise-class master data is one key

constituent in the SAP Master Data Management portfolio.

With SAP NetWeaver MDM 7.1 customers can benefit from

substantial data modeling enhancements, optimized data

inbound and outbound operation, and additional connectivity

options.

SAP will lead the industry in helping our customers to turn master

data into a differentiating corporate asset facilitating best-run

business execution and decision-making.

Page 27: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 27

Social Media on the Rise: Be always up-to-date with what’s going on in MDM

Follow our MDM Twitter account: @SAPMDMgroup

Regularly check our MDM sites on SCN @

http://www.sdn.sap.com/irj/sdn/mdm

Page 28: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

Thank You!

Contact information:

Markus Ganser

EIM Solution Management

[email protected]

Page 29: SAP NetWeaver MDM Overview Harmonized IT Landscapes With Clean Master Data

© 2011 SAP AG. All rights reserved. 40

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