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Sap mdg overview

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  • 1. SAP MDG Overview November 2013
  • 2. 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 © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 2
  • 3. All Lines of Business are Impacted by Master Data Quality Organizations & Roles Financials IT CFO Sales Supply Chain (S)VP of Sales, (S)VP of Sales & Marketing CIO VP of Supply Chain, VP of Planning Challenges   Inconsistent financial master data across the enterprise Manual efforts to update financial master data in local financial systems  Risk of non-compliance to IFRS, SOX etc.  High master data maintenance costs  Need for multiple systems to manage master data in different domains  Lack of consolidated view of customer data across all channels Customer transactions are compromised due to limited view of the facts Lack of flexibility in dynamic business environments  Lack of transparency about changes (Who, what, when, why?)    Slow group closes    © 2013 SAP AG. All rights reserved.  SAP Master Data Governance - Overview Lack of transparency relating to suppliers and products High costs due to insufficient supplier selection and rationalization Loss of potential for benefit realization (i.e. discounts, conditions, central contracts) Limited availability of up-todate master data in my business network Customer 3
  • 4. SAP Master Data Governance Centrally Govern Master Data on top of SAP Business Suite SAP MDG is a natural extension of the business processes running in SAP Business Suite, providing out-of-the-box, domain-specific master data governance to centrally create, change and distribute master data. Governance Enables governance, compliance and transparency through integrated staging, approval and central audit trail Consistent Data Delivers consistent definition, authorization and replication of key master data entities for SAP. Eliminates error prone manual maintenance processes for master data in multiple systems Integration Native integration with SAP Business Suite and SAP ERP, as well as supplier qualification (via SAP SLC), and NW MDM Re-use Re-use of SAP data model, UI and existing business logic and configuration for creation and validation of master data Flexibility Allows to extend the existing models or define new objects and related processes in order to govern own master data domains Data Quality Leverages SAP Data Services for data quality and enrichment as well as SAP Information Steward for data remediation © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 4
  • 5. SAP Master Data Governance Process Flow Archetype External Providers External Services Master Data Governance Re-Use existing business logic Integrate external services Data Enrichment, Address Cleansing, Duplicate Check Central maintenance of master data in staging area Maintain Validate Collaboration Adaptable Workflow Auditable Change Process Approve Automatic replication to non-SAP and SAP systems Replicate 3rd party systems 5 Business Suite systems Adapt Adapt Adaptation / Enrichment in local systems 5 Business Processes © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 5
  • 6. User Centered Design Work Center Provides Work Lists, Search and Applications © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 6
  • 7. Creating a Change Request Let the System Check for Business Consistency and Duplicates © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 7
  • 8. Role-specific User Interfaces For Example, a Lean Request for a new Vendor Lean Request for New Vendors  Very easy / intuitive user interface focusing on the data to get the process started  Enable all people in the company to submit a request for a new vendor, also people without ERP knowhow  Can replace any forms or paperbased process, with full integration into data validation, workflow process, e.g. no “move” of data from a form to the master data management system needed  Specialist will pick-up the process and then complete the data  Several attributes can be derived automatically from data provided by the user © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 8
  • 9. SAP Master Data Governance Capabilities Establish Best Quality Master Data to Optimize Business Processes 1 Deliver Out-of-the-Box 5 Re-Usability & Extensibility 2 Integrated Object Model SAP Master Data Governance Governance, Collaboration & Data Quality 4 Robust Data Replication © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 3 9
  • 10. SAP Master Data Governance Capabilities – Element 1 Deliver Out-of-the-box Low TCO Full Integration to SAP Systems as a client Offer integration services for non-SAP client systems Flexibility Workflow flexibility closely integrated to a framework for defining business rules Ease of consumption Deliver roles on a web based UI Deliver process-centric solution Deliver predefined Data Quality Services Best Practice Deliver a Data Model proven by several applications & industries Process Transparency Reuse of existing processing logic Integration Out-of-the box data replication mechanisms, using stable mechanisms © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 10
  • 11. SAP Master Data Governance Capabilities – Element 2 Integrated Object Model Material Cost Element/ Hierarchies Cost Center/ Hierarchies Profit Center/ Hierarchies Company Consolidation: Item, Group & Hierarchies, Unit, Break Down Category © 2013 SAP AG. All rights reserved. Basic & Classification Data Financial Reporting Structures: Balance Sheet, P&L Statement Supplier & Customer Business Partner Attributes General Data & Descriptions Central Data Roles Units of Measure Bank Details Identification Quality Data Tax Numbers Industry Sectors EAN, UPC Addresses with Usage and Versions Classification Business Partner Relationships Storage & Warehouse Data Supplier Attributes Customer Attributes General Data Logistics Data GL Account/ Chart of Accounts Value Accounting ,Controlling and Consolidation Financials General Data Comp. Code Data Comp. Code Data Purchasing Data Sales Area Data Valuation & Costing Sales Data Plant Data SAP Master Data Governance - Overview Tax Indicators Customer 11
  • 12. SAP Master Data Governance Capabilities – Element 3 Governance, Collaboration… Linear or distributed & workflow based Possibility to extend the process by adding business logic and thereby bringing in data quality Business Logic Has roles and responsibilities and also Task authority (e.g., create, change, approve) Can be adapted and tailored based on customer needs © 2013 SAP AG. All rights reserved. Data in process stored in a separated repository, will be transferred to operational database after final approval Approval Flexible enough to respect the distributed responsibilities existing in a company across various business units SAP Master Data Governance - Overview Customer 12
  • 13. SAP Master Data Governance Capabilities – Element 3 …and Data Quality Prevent creation of duplicates for increased effectiveness and efficiency  Checked early and embedded in the process  High detection quality of matching using Enterprise Search or SAP Data Services Validations  Re-use of existing validation logic in ERP  Custom validations can be modeled and programmed (e.g. code lists, simple checks, or modeled rules via SAP BRF+) Address Enrichment  Simple check and selection lists  Integration with content provided by SAP Data Services  Automatically adding Tax Jurisdiction Code re-using existing interfaces / providers © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 13
  • 14. SAP Master Data Governance Capabilities – Element 4 Robust Data Replication Replication   User Automatic or manual replication to SAP and nonSAP systems Peer-to-peer or mediated Replication Techniques  DRF controlling replication mechanisms like  ALE for SAP ECC, R/3 and non SAP systems  SOA service for SAP and non SAP systems  RFC and File for SAP and non SAP systems  CIF for SAP SCM and MW for SAP CRM and SRM Process Replication Features Data Replication  Non-SAP System SAP System Flexibility to replicate selected data only to a specific client system by defining filters (controlled by DRF)  Support of different object IDs or customizing keys between hub and client systems (via mapping in MDG or NW PI) Monitoring and error handling  © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 14
  • 15. SAP Master Data Governance Capabilities – Element 5 Reusability & Extensibility Reuse standard content  Individual Processes Tasks Enhance functionality  Extended Reused Reuse existing data structures and functionality of SAP Business Suite Be able to enhance MDG functionality based on predefined content (e.g. plant or sales data) or customer-specific extensions Extend data structures  Core Processes Provide easy-to-use extensibility capabilities for enhancing nodes and fields  data model  user interface  processes  data replication Central Team © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 15
  • 16. Govern Financial Master Data Speed-up Your Financial Close With Consistent and Reliable Data Manage financial master data centrally • Out-of-the-box master data governance application to centrally create, change and distribute financial master data with focus on SAP Business Suite • Upfront accuracy of chart of accounts and other elements such as general ledger, hierarchies, org units etc. • Change requests organized as Editions to steer approval process • Deliver consistent data across corporate group and local systems • Pre-built validation against SAP business logic “ Now that master data is consistent throughout, creating a new cost center takes less than 30 minutes instead of several days.” Jian Ming Se, Global IT Associate Director, Colgate-Palmolive Local Accountant Local Accountant/ Corporate Accountant BI Responsible Create Change Request Head of Corporate Master Data Create Edition Final Approval Corporate Master Data Steward Collect Comments Change Requests Head of Corporate Master Data Approval by Business Execute Changes Release Edition Corporate Accountant Distribute Edition Adjust in Target System Local Accountant Master Data Council Corporate Master Data Responsible © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 16
  • 17. Govern Supplier Master Data Manage Mission Critical Data for Procurement Organizations Central creation and maintenance of supplier master data as a governed process within supplier lifecycle management • Reduce procurement costs based on global visibility of relationships • Improve cycle time for new contract creation by creating and maintaining supplier master data as a governed process across supplier management processes • Centralized supplier management as part of procurement to ensure SLAs are met, simplify contract management, and mitigate risk “ SAP solutions for information governance have brought many benefits, such as visibility into global spending per supplier, which improved price negotiation leverage.” Purchasing Org Data Required? Global Data Lead, Oil & Gas Company Purchasing Specialist Reject/Rework • Review • Purch. Info Submit for Requestor • Central Data • Comp. Code • Purch. Org approval Approve Specialist • Review • Complete Info Stop Cancel/Change Request Company Code Data Required? © 2013 SAP AG. All rights reserved. Financial Specialist • Review • Finance Info SAP Master Data Governance - Overview Customer 17
  • 18. Govern Customer Master Data Enable Consistency Towards Your Clients Across all Business Units Central creation and maintenance of customer master data as a governed process within customer lifecycle management • Obtain insight across customer interactions and leverage this insight to align marketing and sales and focus sales efforts on the most profitable customer opportunities • Maintain the integrity of CRM processes allowing for improved campaign effectiveness, opportunity management, sales, and customer service • Improve sales force productivity by eliminating duplicate customer records, duplicate opportunities, and ensuring complete contact information “ Thanks to SAP we have a solid customer data foundation to support our growth objectives.” VP Sales, Telecommunications Provider Central Data Reject/Rework Activate Data & Replicate Submit for Approval Requestor Approve Master Data Specialist Maintain Central Data • Review Central Data Stop Cancel/Change Request © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 18
  • 19. Govern Material Master Data Integrated, Centralized Product / Material Data for Process Excellence Manage material master data centrally • Reduce time to market through central creation of consistent, correct and complete material master data as a governed process throughout design and enterprise operations processes • Reduce cost of new product development and introduction through centralized governance of material data from engineering to manufacturing resulting in stable and high quality product • Reduce manufacturing cycle time through central creation of product master data as a governed process as part of enterprise planning and control processes feeding trusted master data through plant-level operations and manufacturing execution “ By deploying SAP Master Data Governance, we are able to meet our high requirements for the quality of our master data.” Bjoern Ebeling, Associate Director, Merck KGaA Material Creation Business Workflow Revise Request Creation/ Change Business User Complete Complete Material Material Data Data MD Experts Review Change Request Business User Approve Change Request MD Steward Enrich in Local System Local MD Steward Material ID 4711 Change Request A1 © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 19
  • 20. SAP Master Data Governance Application Foundation The Basis for Your Central Master Data Management Extend SAP’s data model Standard models provided Pre-configured data models, user interface configurations, workflows, and data distribution are available Changes expected You can extend the existing models with your own master data attributes, change the UI configuration to your users’ needs, and customize the workflow and distribution to define your specific governance processes Define your own Tools allow you to define new objects and related processes in order to govern your own master data domains © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 20
  • 21. SAP Master Data Governance High-level Architecture Overview Optional Parts Central System for Master Data Processes Client Systems Portal / NetWeaver Business Client ERP SAP Master Data Governance SRM User Interfaces, Roles, Work Centers Information Steward Data Services Enterprise Search NetWeaver MDM SAP Information Management Suite SAP HANA Integrate services for data cleansing, matching & consolidation © 2013 SAP AG. All rights reserved. Workflows Financials Material Business Partner Custom Objects CRM Staging Validation SCM Change Request, Governance Model, Search & DQ Adapters, UI Framework, Analytics, Replication, Key / Value Mapping On Premise Apps SAP ERP 6.0 Cloud Systems AS ABAP 3rd Party Tight integration into SAP Business Logic and leveraging standard AS ABAP SAP Master Data Governance - Overview Client systems are integrated via various channels (such as SOA, ALE, RFC, File) Customer 21
  • 22. SAP MDG Deployment Options Consciously Decide for a Central hub or Co-deployment Deploy SAP MDG… SAP MDG SAP ERP SAP SCM … … as standalone system / master data hub … on top of an operational ERP SAP SRM 3rd party systems, … SAP MDG & SAP ERP SAP ERP, SCM, CRM, SRM … 3rd party systems, … Customers typically choose to… … create a dedicated master data hub and distribute to all operative systems from there, or … co-deploy*) with their single instance SAP ERP (or pick one of their SAP ERP’s as the master for a particular domain) and create and distribute master data from there *) if speed of innovation in their ERP systems does not allow for quick introduction of SAP MDG, some customers create a separate system first, and re-combine later © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 22
  • 23. Using SAP HANA in the Context of SAP MDG as Primary or Secondary Database SAP MDG 7.0 can be installed on both EhP6 or EhP7 for SAP ERP 6.0 If installed on EhP7, it can run on SAP HANA as primary database Option 1: HANA Side-by-Side SAP MDG 7.0 Option 2: MDG on HANA duplicate-detection and similarity-ranked search EhP6 or EhP7 for SAP ERP 6.0 Any Database © 2013 SAP AG. All rights reserved. SAP MDG 7.0 EhP7 for SAP ERP 6.0 replicate SAP HANA SAP Master Data Governance - Overview SAP HANA Customer 23
  • 24. What’s new in SAP Master Data Governance? SAP MDG 7.0 – Ramp-up Start in November 2013 Faster search with SAP HANA, duplicate detection, cleansing and matching Better usability for all standard and custom-defined master data objects More flexible foundation for higher business efficiency and refined process control  HANA-based innovations – Advanced duplicate-detection and similarity-ranked search based on SAP HANA’s fuzzy search capabilities – Find instead of search using multi-attribute drill-down selection  Strengthening the core – – – – – – Parallel change requests on different parts of the same master data object allow more agile governance Continued enhancements across all of SAP MDG’s out-of-the-box master data domains Flexible Edition Management with enhanced scheduling, intuitive access and better transparency (i.e. for Financial data) Improved mass data import into MDG’s “flexible mode” models, i.e. for Financial master data and custom objects Enriched integration scenarios, e.g. with SAP CRM for Customer master data Enhanced data replication supporting governance processes for custom objects, including SAP Configuration data  Enabling broader usage – Data cleansing through merging and correcting duplicate business partners – Improved usability, e.g. dedicated role-based Work Centers for Accounting, Controlling and Consolidation data, as well as improved user interfaces for the maintenance of Financial master data and custom objects – Dedicated user interface for multiple-record processing with a first focus on Material master data – Governance processes for SAP Business Partner (in addition to Supplier and Customer provided earlier) – Support usage of SAP ERP Document Management System for attachments to material master data © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 24
  • 25. SAP Master Data Governance 7.0 Summary of the key Capabilities Master Data Governance for Financial Data  Create or change Chart of Accounts, GL Accounts, Companies, Profit and Cost Centers, Cost Elements and respective hierarchies  Data distribution to operational systems via Services (SOA) or ALE Master Data Governance for Material Data  Create or change a broad range of material master data attributes, including governed classification  Mass data upload and mass change capabilities  Data quality services such as duplicate check  Data distribution to operational systems via SOA or ALE Master Data Governance for Supplier and Customer Data  Create or change a broad range of supplier or customer master data attributes as well as the underlying business partner attributes  Mass data upload and mass change capabilities  Data quality services such as duplicate check and address validation  Data distribution to operational systems via SOA or ALE Master Data Governance for Custom Objects  Framework for data modeling, UI configuration, validation, and distribution of custom-defined master data objects © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 25
  • 26. SAP’s Understanding of a State-of-the-art Master Data Governance Solution  Deliver process-centric solution  Workflow closely integrated to a framework for defining business rules Solution Strategy  Full Integration to SAP Systems and integration services for non-SAP  Deliver roles on a web based UI  Deliver a Data Model proven by several applications & industries  Reuse of existing processing logic  Out-of-the box data replication mechanisms  User-centricity : Central work center for the maintenance of materials Ensure Master Data Governance Basic Principles  Governance: Change requests with built-in approval process  Workflow: standardized but flexible processes incl. rules management and tracking  Architecture: Staging area to maintain inactive versions of material data    Work lists (My Change Request, Display Change Requests, Change Documents)  Duplicate Check  Key- and Value-Mapping Data Replication  File Upload / Initial Load  Extensibility of Data Model & User Interface  © 2013 SAP AG. All rights reserved. Create, Change, Mass Change, Mark for Deletion  Common Services Search & Display Deployment on top of operational ERP or as standalone hub SAP Master Data Governance - Overview Customer 26
  • 27. Benefits Through SAP Master Data Governance Up-front, central creation of master data enables high data quality and leads to significant business improvements. Out-of-the-box, process-centric applications provide centralized governance for master data domains such as financial data, supplier data, customer data, material data. Native integration with SAP Business Suite using existing business logic and infrastructure leads to low TCO. SAP Master Data Governance provides flexibility, from configurable workflows and extensible data models, up to custom built applications. © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 27
  • 28. © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. © 2013 SAP AG. All rights reserved. SAP Master Data Governance - Overview Customer 29

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