SAP Master Data Management Overview

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 NetWeaver

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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


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


Increased cross-border trading

Multiregional coverage

Increased collaboration

Data Synchronization with business partners

Emerge of global industry standards EANUCC

External Business Drivers


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!


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


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

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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 ==

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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.

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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

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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

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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

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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

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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

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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


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

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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:

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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

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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

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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

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MDM A secure, role based and easy to use application

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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 NetWeaver

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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

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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.


How SAP MDM is pre-integrated with NetWeaver

SAP NetWeaver

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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

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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 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

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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

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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