Enterprise master data services in BP

Andy WalkerNovember 15th 2007 – CDI MDM Summit, New York

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Agenda

• Introduction

• Business drivers and benefits

− Vendor and customer

− External enrichment providers

• MDM implementation in BP

− Current status and Roadmap

− Architecture

− Design principles

− Workflow

− Demo

• Key messages

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1.

2.

(2000)

(2002) (2002)

(2000)

(1999)

(1996)(2000)

(2001) (2001)

BP has inherited a large variety of processes and systems

Context - BP growth

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Enterprise master data in BP

Subject Business Owner Environment Status

Customer R & M SAP MDM Development

Financial FC&ASAP R/3 Global Financial Template (GFT)

Live

Equipment/Plant To Be Determined SAP R/3 Development

Geography/Identity DCT Enterprise Services -Bespoke Live

Vendor PSCM - Group SAP MDM Live

Material R & M Procurement SAP MDM Live

Product R & M SAP MDM Development

Employee HR SAP R/3 – HR Instance Development

Link

ed –

Bus

ines

s P

artn

er

Link

ed

Mat

eria

l M

aste

r

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Why manage master data?Two fundamental procurement questions

Who do we buy from?

• What materials do we buy?

• Where are these materials used?

• Who orders these materials?

• How much do we pay for similar materials?

• What services do we buy?

• Where are these services used

• Who orders these services?

• Who are our suppliers?

• Where are our suppliers located?

• What are our suppliers’capabilities?

• How stable are our suppliers?

• Should we be trading with these suppliers?

What do we buy?

Vendors - a business partner to whom payables are owed for products supplied or services rendered.

Materials – products purchased to be consumed in operations or for resaleServices – Work performed by a vendor for pay (repairs, maintenance, install)

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Why manage vendor master data ?

• Financial and trading risk information on suppliers − Risk of trading with ‘denied’ parties

• Inefficient master data management processes− Duplicate vendors within a system − Same vendor set up in multiple systems with multiple identifiers

• Implications− Harder to track spend and leverage the scale of the company− Spend data is incomplete and not classified− Difficult to understand when we are trading with the same supplier, or

branches of the same supplier− Harder to track issues such as health and safety status− Reaching out to suppliers for supplier enablement purposes is difficult

due to the lack of contact information data− Purchasing controls are difficult to implement

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D&B business partner hierarchy

• Business Partner Hierarchy

− Vendors

− customers

• The D&B DUNS Number is a unique, nine-digit; non-indicative identification number assigned to every business entity in D&B’sdatabase.

• D&B provides linkages for

− Branch to headquarter

− Subsidiary to parent

− Domestic ultimate

− Global ultimate

• Lifecycle management processes are enabled by quarterly refreshes of data

D&B hierarchy

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D&B web service

• Provides a unique Duns Number for the Vendor

• World base package information (100+ attributes) for the company structure

• The Query is triggered by the executing workflow steps. MDM Enrichment Architecture provides a real time response as follows:

Workflow step triggers syndication of the request

Enrichment Controller routes query to Enrichment Adapter

Adapter passes the query to D&B web service

D&B Sends the world base information for the company that Matches the query

Enrichment Controller sends this info packet to the MDM import process

Query Enriched Data

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Customer design

• Customer is a “mirror” of supplier

− External services (D&B) will provide the business party legal entity hierarchy

− D&B will maintain business partner over the Corporate lifecycle

− DUNS number will be a unique primary key to identify the business partner legal entity

− Credit checking will be carried out against the appropriate level of the business partner corporate structure with D&B as the service provider

MDM design and implementation

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Evaluation of MDM - 2006

• Proof of Concept (Apr 06 – Aug 06)

− Fifteen BP systems were considered in the repository design

− Vendor

− Hierarchy was configured in MDM

− A new vendor creation request workflow involving five different roles was configured using SAP Portal and MDM

− Material

− The UNSPSC hierarchy was configured in MDM

− The SMD Intermat Classification for materials was configured in MDM and presented via the Portal

− BW integration was demonstrated by reporting spend analysis against the MDM hierarchies (from D&B)

• Conclusion

− Proceed with the implementation of vendors and materials in MDM

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Programme update September 2007

Object Vendor Material Customer Product

Business

process

MDM Design and build In process

MDM System live Q1 2008 Q1 2008

Governance & organisation In process In process

Data quality enhancement

Data conversion process In process

Live systems 2007 1 1

Planned live systems 2008 6+ 4+ 1 1

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SAP Applications

MDM –Record of Reference

•Material

•Vendor

•Customer

MDM systems architecture

R/3 PFM&S

R/3 E&P

XILayer

Enterprise Portal

Intermat

SRM

R/3 PFManufacturing

SRM

Dun & Bradstreet

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MDM technical architecture

• Assembly

− Combination of automated and manual cleansing and consolidation

− Enrichment Services ( D&B and Intermat)

• Distribution using shared infrastructure

− MDM Syndicator

− XI

− MFT

Data Distribution

Service(DDS)

( Access ServicesDelivery Services)

Legacy Application

Data Warehouse

SAP R/3

Maximo

Portals

SAP

Data SourcingAnd

Harmonization

(DHS)

RecordOf

ReferenceSAP

SIEBELLegacy

RecordOf

Reference

Master Data

ManagementProcesses

IntermatD&B

Operational Applications

Portals

Assembly Data Distribution ServiceRecord of ReferenceManagement

SAP MDM•Vendor•Material•Customer•Product

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Portal principle

• Principle

− SAP Portal (internet facing) provides the main user interface with MDM

• Why?

− Internet facing – living life on the web

− One Portal / workflow engine to develop and administer

• Implications

− Need to define process/procedures for multiple portal instances (R&M, E&P, etc) maintaining MDM data.

− Requirement for Federated Portal

− Develop guidelines around roles to update SAP MDM data across portal environments (defining limitations, by master data object, by implementation, by roadmap etc.)

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MDM instance strategy

• Principle

− Single SAP MDM instance will be shared within and between projects/landscapes.

• Why?

− Time to market and flexibility

− Reduces development across SAP landscape.

− One interface to record of origin e.g. Dun & Bradstreet, Intermat

− One Portal / workflow engine to develop and administer

− Provides an opportunity for better utilization of infrastructure resources.

• Implications

− Need to define process/procedures for shared central instances servers for handling change control, resource allocation

− Develop guidelines around which SAP MDM products repositories should be shared (defining limitations, by master data object, by implementation, by roadmap etc.)

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MDM business partner repository design

XI Interfaces

D&B External

D&B Internal Business Partner

Repository

Vendor, Custom

er, US Vendor

MD

M ID

Harmonized US Vendor

Repository

Centralized Vendor Repository

CentralizedCustomer Repository

US Account Groups

GFT Account Groups

SAP MDM

Enrichm

ent Architecture w

ith W

eb services Call

PR5

PR4

PRC

PR1

PRV

PRE

PRO

PRE

ERP’s

Visual Composer

Search

Web services Call to D&B Internal

Adobe off line form

Portal Applications

User Interfaces

Web dynpro – MDM API connection

.Net User Interface

GFT Account Groups

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Workflow in MDM

• Universal Work List is a key design feature

• Attached example illustrates the create vendor process including Dun & Bradstreet enrichment process

• *** DEMO ****

Start Review RequestSet Request Received

Send for companysearch

Select the record for WB search

Enrichment Information Received

Set Distribution Flags

StopSelect Address Set Address Selection Complete

Send Notifications

NotifySet Dist Flag

WaitBranch

No match found in company

search

Stop (2)

Send for WBsearch

Wait2

Branch (2)

Worldbase information not

imported

Stop (4)

Worldbase information imported

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Progress summary

The MDM project has successfully implemented a live solution for suppliers and materials as part of the Process Fitness BP Rotterdam implementation.

The solution includes the MDM service organisation, data cleansing and maintenance processes and procedures based on SAP MDM software.

The system has been extended to include Customer and Product MDM ready for implementation with Process Fitness in Iberia in 2008.

An appraisal for implementing MDM for suppliers in the US during2008 is being completed in September in order to gain significant scale for global mastering via MDM

System enhancements are being developed to enable global roll out.

In summary, the programme has met all its 2006 and 2007 milestones to date, within budget and is planning to move to a global solution in 2008 to enable the business case to be realised as soon as possible.

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Key messages – Business

• Design the business processes

− Agreeing the master data ownership and the management processes is essential to implement MDM effectively

• Prepare the data

− Business users at site and segment operations levels to be accountable for the quality of the converted data

− Define the data structures – legal entity, delivery address, invoice address, payer details

− Define the essential data quality elements – no duplicates, mandatory fields to have ‘business ready’ master records at global and local(R/3) levels

− Data clean-up should be started early

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Key Messages – Technical

• Technical delivery is driven by the business design

• SAP MDM provides:

− Links to Record of Origin

− Dun & Bradstreet enrichment web services

− Links to consuming systems

− R/3 - vendor, customer material

− Netweaver integration

− Portal, Workflow, XI

− Each component requires Change Management processes to be established across the global landscape

• MDM provides the required capabilities, but should be carefully managed as future enhancements and releases are incorporated