SAP NetWeaver MDM Overview SAP NetWeaver MDM EIM Solution Management August 2010 Legal Disclaimer The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non- infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. Agenda 1. Customer Challenges with Master Data MDM – Why is it Important? 2. Consolidate Master Data In Heterogeneous Landscapes 3. Current Release: SAP NetWeaver MDM 7.1 4. Customer Adoption 5. Conclusion and Key Take Aways 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 Overall Impact From Bottom Up By poorly managed master data Analytics Business Execution Quality level Master Data M&A One-off cleansing Time Quality of master data dramatically impacts transactional and analytical processes What is worse, you’ll only notice it after the damage is already done Agenda 1. Customer Challenges with Master Data – Why is it Important 2. Consolidate Master Data In Heterogeneous Landscapes 3. Current Release: SAP NetWeaver MDM 7.1 4. Customer Adoption 5. Conclusion and Key Take Aways SAP NetWeaver Master Data Management Bringing clarity on your master data Which employee should we assign? Do I have the right product? Who is my best supplier? Who is my customer? ERP 1 ERP 2 ERP 3 Part: 2574 = Part: 0814 = Part: 1235 SAP NetWeaver Master Data Management Multi-domain coverage and versatile use 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 … Consolidation with Sustained Data Quality Using native MDM capabilities and BusinessObjects Data Services Load data from SAP and non SAP sources Manage Leverage native MDM capabilities Data Quality and/or SAP Business Objects Data Services to raise master data quality MDM A1 = B2 Cleansing De-duplication Validation Enrichment Use MDM processing layer for Mass maintenance Workflow-orchestrated processing Provisioning of key mapping Merger & Acquisitions (System Consolidation) Integrate the heterogeneous world while raising data quality Load data from new systems Match new data to internal, Create Key Mapping already consolidated data Quick access to consolidated MDM information Provide key mapping information acq1000 i4711 to subsequent migration tools acq1001 i0815 Acquisition Harmonization Through Data Distribution Raise data quality in heterogeneous landscapes Distribute Consolidated Master Data Subscribe remote systems to enrich master data with centrally consolidated globally MDM relevant information Distribute data to remote systems (SAP and non-SAP) … Perform local completion of master data with … … … application-specific information if required 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. SAP NetWeaver BPM different managers or departments Sustained data quality checks and global duplicate checks Request Check Approve prior to data creation ensure Web Service calls high quality master data NW Create MDM repository contains MDM and syndicate consolidated and reliable master data fueling enterprise Search business processes Customer Data Management One view of customer information anytime anywhere Jane Peters Analysis Smith 4418 North St. Chicago, IL 60610 Leverage best-in-class data quality Jane Smith Jane Peters capabilities (cleansing, house 4418 N. Str. North Street holding/address validation, fuzzy Chicago, IL Chicago, IL 60611 60600 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 Product Information Management One view of product information anytime anywhere 1038-GID Parts Publish GEAR A124K BR-2K Parts Gears Predefined business content for product data facilitating integration with SAP landscapes SPIDER GEAR GEAR Rich product content management Product classification, hierarchy and relationship management fueling cross- and up-sell potential Print/web publishing including layout and production Optimized Supplier Spend Reporting Building the Basis to Optimize Supplier Maintenance Extract Cleanse Consolidate Analyze MDM ERP 3 Supplier 851981 ERP 1 Part: 0815 Legacy Supplier 791979 BW 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 Aggregate Physician Spend Enable consistent view on physician spend data Enable consistent view on physician Mr Michael Schmidt Dr. St. Joseph's Hospital spend data 330 East 63 Avenue Suite Determine when total expenses 10B New York NY 10021-7706 exceed spend limit Total Expenses : $ 5,000 Provide trusted data enabling accurate reporting to prevent violation against Mike Schmidt legal requirements such as “Physician University of New York NW 330 S 63rd St # 1000 MDM Payment Sunshine Act” in the US 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 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 Data Pool 1Sync data pools Unidirectional SYNCHRONIZATION Data Pool communication with R/3 Global Registry Supplier Catalog Management Manage supplier catalogues seamlessly in the procurement process Load of supplier catalogues into SRM/MDM catalogue Manage Quick data access by Supplier Catalogues in-memory enabled parametric search NW MDM Procurement Integration into procurement process within SRM and ERP SRM Supplier Catalogues Agenda 1. Customer Challenges with Master Data – Why is it Important 2. Consolidate Master Data In Heterogeneous Landscapes 3. Current Release: SAP NetWeaver MDM 7.1 4. Customer Adoption 5. Conclusion and Key Take Aways SAP NetWeaver Master Data Management 7.1 Cross-domain MDM Infrastructure 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 Two of the top three finalists of the Gartner MDM Excellence Awards 2010 are SAP NetWeaver MDM customers. Kraft Foods and BP were ranked 1st and 2nd by a team of Gartner analysts based on their successful implementations of very complex MDM projects. (Info: http://www.gartner.com/it/page.jsp?id=1204916) SAP NetWeaver MDM 7.1 SP05 Availability What’s the current release? SAP NetWeaver MDM 7.1 SP05 in unrestricted shipment as of CW 24 2010 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 Agenda 1. Customer Challenges with Master Data – Why is it Important 2. Consolidate Master Data In Heterogeneous Landscapes 3. Current Release: SAP NetWeaver MDM 7.1 4. Customer Adoption 5. Conclusion and Key Take Aways Customers Drive Value with Master Data Management Solutions from SAP AarhusKarlshamn ■ Comprehensive customer information ■ Improved productivity due to faster ■ Increased managerial efficiency providing sales people with insight new material introduction and more- ■ Standardized business processes into order history efficient problem resolution throughout corporation based on ■ Fast turnaround of quotations, ■ Faster extension of master data into central storage of master data improving customer satisfaction, new facilities ■ Reduced costs while providing central retention, and profitable transactions ■ Reduced complexity and lower access to technical documentation for ■ Accurate forecasting reports, enabling maintenance costs due to improved purposes of maintenance and user effective production based decision visibility and business rules creation access making ■ Improved quality of consolidated reporting “ Prior to using SAP NetWeaver MDM and SAP BusinessObjects solutions, our heterogeneous IT landscape made it very difficult for us to view our total product line, what our customers were buying, and how we could serve those customers better.” Joe Young Senior Manager, IT Lexmark International Inc. SAP NetWeaver MDM – Selected Customers Global 2000 companies are leveraging MDM today 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 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 SAP NetWeaver MDM Customer examples 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 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 Customer Testimonials “ 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 “ 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 SAP NetWeaver MDM – Success Stories Learn how MDM can help companies realize meaningful value Agenda 1. Customer Challenges with Master Data – Why is it Important 2. Consolidate Master Data In Heterogeneous Landscapes 3. Current Release: SAP NetWeaver MDM 7.1 4. Customer Adoption 5. Conclusion and Key Take Aways 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 Thank you!