How SAP Data Archiving has evolved into Information · How SAP Data Archiving Has Evolved Into Information Lifecycle ... zSAP data archiving moves master, transactional and ... How

Karin Tillotson

How SAP Data Archiving Has Evolved Into Information Lifecycle

Management (ILM)

Who am I?

SAP Data Archiving Technical Lead– Valero Energy Corporation, San Antonio, TX

SAP MentorASUG Archiving and ILM SIG Program Chair

Agenda

What is ILM?Why is ILM Important?Data Management vs. ILMLegal Hold Management and e-Discovery ASUG ILM Influence CouncilSAP ILM SolutionHow ILM Crosses Over Between Business and Technology

What Won’t be Covered Today

Microsoft’s Identity Lifecycle ManagementInternational Legal MattersIndustrial Light and MagicInteractive Loop MatchingInteractive Local Media

What is ILM?

What is ILM?

SAP defines ILM as– “ a combination of processes and technologies

whose goal it is to provide the right information at the right time, and at the right place, with the lowest possible costs, over the required life time of the data.” ( www.service.sap.com/ilm)

Why Is ILM Important?

Legal Retention RequirementsCompany PoliciesProduct Liability IssuesLawsuits/Litigation RisksAuditsDivestitures


“[in 2006] for billion-dollar companies, the number of lawsuits soared to 556 cases, with almost half facing 50 new lawsuits per year”

Third Annual Litigation Trends Survey Findings, Fulbright & Jaworski 2006

“62% of large companies have at least one lawsuit filed against them with $20 million or more at stake.”

Third Annual Litigation Trends Survey Findings, Fulbright & Jaworski 2006


Liability for getting rid of data too soon

Liability for keeping data too long

Data Management vs. ILM

Data archiving is a way to manage data by moving business complete data from the database to a secure content repository

ILM is a strategy to manage your data from creation to destruction


Data Management– Reduce data volume with:

PreventionAggregationDeletionData archiving

** SAP’s Data Management Guide


ILM– Achieve balance between TCO, risk and legal

compliance by managing:Data volumesData retention requirementsData destruction

Why all the “Buzz” about ILM?

There have been laws pertaining to civil litigation since 1938 (Federal Rules of Civil Procedure FRCP)

IRS– Rev Procedure 98-25, 97-22 - Electronic Records


Industry-Specific Regulations/OtherSEC Rule 17a-4NASD Rule 3110NYSE Rule 440FDA Title 21 CFR Part 11OSHAHIPPA

And …


Sarbanes-Oxley Act of 2002 (SOX)– Was initiated in response to a number major accounting

scandals:EnronTyco InternationalWorldCom

– Affects all publicly traded companies and public accounting firms

Pros – helped restore public confidence in capital marketsCons – created an overly complex work environment


Sarbanes-Oxley Act of 2002 (SOX) continued:– Section 404 – Assessment of internal control

Management is responsible to establish and maintain internal control structures and procedures for financial reporting

– Section 802 – Criminal penalties for altering documentsprovides for possible jail times up to 20 years, fines, or both where evidence has been knowingly altered, destroyed or concealed with the intent to impede or obstruct or influence the investigation from proper administration of any matter within the jurisdiction of any US department or agency


Sarbanes-Oxley Act of 2002 (SOX) continued:– Section 1107 – Criminal penalties for retaliation against

whistleblowersWhoever knowingly, with the intent to retaliate, takes any action harmful to any person, including interference with the lawful employment or livelihood of any person, for providing to a law enforcement officer any truthful information relating to the commission or possible commission of any federal offence, shall be fined under this title, imprisoned not more than 10 years, or both.

To be “in compliance” – a company needs to ensure retention policies are defined and consistently followed


ILM has become a current topic of interest due to the sheer volume of data that now needs to be managed

– paper documents – electronic data

EmailImagesSAP data

How is SAP Archiving Relevant?

SAP data archiving moves master, transactional and configuration data from the SAP database to a content repositoryImage/Document archiving can replace the storage and retention of paper documentsSince SOX, publicly traded companies have a new standard of corporate accountability

Legal Holds and e-Discovery

A legal hold is “a process which an organization uses to preserve all forms of relevant information when litigation is reasonably anticipated”

Recent amendments address the discovery of electronically stored information (ESI) - otherwise known as “e-discovery”

– These changes took effect in December 2006 and require organizations to hold all electronic records until each legal matter is formally settled.


What is at stake with a legal hold?– Inability to properly defend your company can lead to

sanctions such as fines, attorney fees and costs to the opposing party, summary judgment or dismissal, imprisonment

Zubulake v UBS– A $22.9 million jury verdict was awarded when it was

determined that UBS willfully destroyed potentially relevant emails that surfaced after depositions had been made which contradicted documented testimony

Source: ARMA Webex “Litigation Hold Best Practices: How to Implement an Effective Workflow Process” by Eriika Boggs

Zubulake Awarded $20.1 Million in Punitive Damages and $9.1 Million in Compensatory Damages.This exceptionally large award was ordered in a landmark employee discrimination case that addressed important e-discovery issues including the preservation of email, cost-shifting, and the restoration of backup tapes.Zubulake's counsel told the jury that UBS had destroyed email and its officials had lied in court.Judge Scheindlin instructed the jury to assume that email not preserved by UBS after Zubulake filed her complaint with the EEOC would have hurt UBS' case.UBS says that it will appeal.Source: www.ediscoverylaw.com

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Elements of a legal hold:– Early issuance of the legal hold notice– Periodic re-issuance of the legal hold notice– Requires acknowledgement and pledge to comply to the

legal hold notice– Incorporates the relevant personnel (IT, Records

Management, etc.)– Collection of relevant data– Contains an interview process with key players



6 Common Mistakes of a Legal Hold– Poor communications

Do the relevant individuals know what a legal hold is? And, do they know their responsibilities?

– Lack of knowledgeLegal hold requirements, document retention policy, IT Infrastructure, etc.

– No follow-upIt is not sufficient to just notify all employees of a litigation hold

– Failure to build a teamIn-house attorneys, outside counsel, records management personnel, IT personnel, HR

– Inability to properly track informationWho, What, Where, When and Why

– Failure to release the legal holdLeads to over-preservation of data



Questions to ask– How defensible is your companies legal hold notification

process?– Under what circumstances are legal hold notices issued?– How are recipients identified ?– Do you have an organizational data map?– Do you have a document retention policy? If so, is it

followed?– Who prepares the legal notice? How is it sent?– How is data collection managed?– Is the legal hold released when necessary?Source: ARMA Webex “Litigation Hold Best Practices: How to Implement an Effective Workflow Process” by Eriika Boggs

Role of SAP Technology in ILM

How do you manage archived SAP data for a global company?

– Same data can have different retention rules per country

How do you manage SAP data for a legal hold?– Currently, there isn’t a way to do this

How do you manage data destruction?– Currently, involves a very manual process

There has got to be a better way to manage legal holds – quality legal hold management software applications take into account the best practices and decrease the amount of resources an organization needs to devote to the management of legal hold while maintaining a defensible process that allows for improved communication and the ability to generate necessary tracking reports while being scalable.

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ASUG ILM Influence Council

Many SAP customers have been archiving data for several years that now needs to be destroyedA formal ASUG ILM Influence Council was formed

– SAP Sponsor– 11 ASUG Installation Member Companies

Data ArchivingRecords ManagementLegal Department

2 Phases– Phase 1 (started in 2003) – Archive Routing– Phase 2 (started in 2006) – SAP ILM Solution

ASUG ILM Influence Council

Documented Business Requirements– We provided:

What we neededWhy we needed it

SAP provided status updates

Information Lifecycle

Source: SAP Presentation: ILM Solution from SAP Overview

SAP’s ILM Solution

SAP’s 4 Phase Approach to ILM1. Analyze and categorize your data2. Define your retention policies3. Apply the retention policies4. Implement your ILM strategy

(combine phases 1-3)

Cornerstones of ILM: Archiving, Retention Management and Retention Warehouse

Source: SAP Presentation: Information Lifecycle Management Solution from SAP

SAP Data Archiving/Data Management

Standard SAP Data ArchivingArchive RoutingSAP supplied reorganization (delete) programs

SAP’s ILM Retention Management

The IRM tool is used for configuring and managing retention policiesIntegrates with ILM-aware storage solutions


SAP’s ILM Retention Warehouse


SAP’s Legal Case Management (LCM)


SAP’s ILM Solution

The ILM Solution from SAP aligns your information with business processes through management of policies and service levels associated with applications, metadata, information and data.

Source: SAP Presentation: ILM Solution from SAP Overview

Current Status of SAP ILM Solution

The SAP ILM Solution is currently scheduled for ramp-up soon for a select group of customers.

General availability will be later.

How ILM Crosses over between Business and Technology

ILM starts with analyzing your data and defining retention rules based on business and/or legal requirements

ILM ends with needing technology that will support managing information from creation to destruction

Additional ILM Related Sessions

LCM101 – Archiving, Retention Management, Retention Warehouse: Overview of the ILM Solution from SAP

LCM264 – Data Archiving and Retention Management: Managing the Entire Lifecycle of Your Information (Hands-on Session)

Safe Harbor Rule 37

No such thing as a perfect or fail-proof processIn December 2006, a new amendment in the FRCP Discovery Rules:

– Rule 37: Failure to make or cooperate in Discovery; Sanctions:

Safe Harbor for accidental deletion ESI– Unless exceptional circumstances, the court may not impose sanctions on

a party that has a result of lost data from routine standard operations– The defendant needs to have made a “reasonable good faith effort” to

ensure that information that is potentially relevant to litigation is being sequestered from destruction and will be made available for review

Summary

What is ILM?Differences between data management and ILMWhy is ILM important?Legal hold and e-DiscoveryASUG ILM Influence CouncilSAP’s ILM solution

Q&A

Sources of Information

Contact Information:– [email protected]

Additional Resources:– www.service.sap.com/ilm– Email: [email protected]– ASUG Archiving and ILM SIG

http://www.asug.com/Communities/SpecialInterestGroups.aspx?InterfaceID=2&Identifier=GT_EC&TaxonomyId=295

– SAP Insider Articles– SDN/BPX Blogs– Archiving Your SAP Data – SAP Press– ARMA (Authority on Managing Records & Information)

www.arma.org

Thank You For Attending!

Documents

How SAP Data Archiving has evolved into Information · How SAP Data Archiving Has Evolved Into Information Lifecycle ... zSAP data archiving moves master, transactional and ... How