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Automate Your Master Data Processes for Shared Service Center Excellence
The document discusses the challenges of managing master data in organizations, emphasizing the complexity and inefficiencies in manual processes reliant on spreadsheets. It advocates for automation platforms to improve data management, streamline workflows, and enhance business processes, presenting case studies that highlight significant time and cost savings from automation. Ultimately, the document highlights the strategic benefits of adopting technology for better data quality, operational agility, and competitive advantage.
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Automate Your Master Data Processes for Shared Service Center Excellence
- 1. Automate your master dataprocesses for Shared Service Center Excellence Andrew Hayden | Precisely Explore the full potential of your master data to create value across your processes
- 2. Master Data Challenge#1 See if this sounds familiar: • You use Excel workbooks to create and manage product data – one workbook per product • Product managers own the workbooks • Worksheets, columns in worksheets, or even individual cells can be owned by various individuals • Data is collected and managed in the workbook before being manually entered in ERP system • Data updates, changes, and additions are tracked manually What happens when you create a new product, need real-time process status, or have to scale? 2
- 3. Master Data Challenge#2 You need to make a change to a subset of material records, say from “Manufactured to “Kitted” as an ongoing project • This change will affect bills of materials, routings, sales orders, etc. • Making these changes manually in the application interface will take about 60 hours/100 material records … and you have thousands of records to update. • This means you need to hire and train new staff at a cost of about $4000/100 materials There has to be a better way… 3
- 4. Agenda • Challenges withmaster data • Material master data • Digital transformation, data and processes • The value of an automation platform • Success Stories • Key takeaways • Questions
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- 7. Complexity is multidimensional Data complexity •Complexity of master data records • High-volume data processes • Challenges data complexity creates for manual data entry and management processes 7 Process complexity • Complex, data-intensive business processes involving multiple constituents are a challenge to automate • Process governance and tracking • Human-in-the-loop processes pose unique challenges for automation Organizational complexity • Multi-departmental processes • Competing business priorities • Short-term gains vs strategic initiatives
- 8. Material Master: Central to Operations 8 Production& Mfg Purchasing & Prcmt Inventory Mgmt Sales & Marketing Finance & Acctg Connects multiple business use cases and activities Material Master
- 9. Material Master Records= Complexity 9 300 18 Typical number of data objects in a record Avg 18 “screens” (out of 36 possible)
- 10. Materials Record Challenges Presentation name 10 Data Creation& Management Processes Data Quality & Maintenance Process Simplification & Standardization Process Complexity & Inconsistencies
- 11. Operational Red Flags Order Fulfillment Errors Production Delays Inconsistentor inaccurate material data can lead to: Wrong products shipped, incorrect pricing, and customer dissatisfaction Missing components or inaccurate BOMs halt production lines, costing time and money Inventory Mismanagement Financial Reporting Inaccuracies Overstocking or understocking lead to wasted resources and lost sales opportunities Misleading profitability calculations and compliance issues 11
- 12. Why automation? Data Creation Data Validation Materials managementis a perfect example of the interdependence of process and data Data Movement Scalability Presentation name 12
- 13. Technology is ameans to an end: Data is the currency of digital transformation - HfS Research Blog
- 14. Data Process Interdependence of processand data Interdependence of process and data
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- 16. A complete automationplatform Excel to SAP Exchange data with SAP quickly and easily using Excel Form & Workflow Automate and accelerate SAP business processes with integrated forms and workflows Excel Workflow Automate and accelerate SAP business processes through Excel file management workflows Process Automation Data Automation
- 17. 17 Replace multiple GUI screenswith business- friendly Excel
- 18. A complete automationplatform Excel to SAP Exchange data with SAP quickly and easily using Excel Form & Workflow Automate and accelerate SAP business processes with integrated forms and workflows Excel Workflow Automate and accelerate SAP business processes through Excel file management workflows Process Automation Data Automation
- 19. Excel workflow forfile governance Validate against ERP Automation platform Database or ERP
- 20. A complete automationplatform Excel to SAP Exchange data with SAP quickly and easily using Excel Form & Workflow Automate and accelerate SAP business processes with integrated forms and workflows Excel Workflow Automate and accelerate SAP business processes through Excel file management workflows Process Automation Data Automation
- 21. Form-based automation Build in data guardrailsto ensure your data is right the first time. 21 New Materials Process Create Materials Validate
- 22. Form & Workflow Automate record creationwith forms and workflow across multiple contributors Process Initiator Enter basic account information Contributor 1 Contributor 2 Contributor 3 Approver Start with create form SAP Automate Evolve Outside Contributor Portal Participan t
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- 24. Make an impactacross your business Financial Accounting Controlling Sales and Distribution Materials Management Plant Maintenance Asset Management Project Systems Production Planning Quality Management Human Resources
- 25. Empowering business teams tomake an impact
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- 27. CUSTOMER STORY: Energy DrinkCompany 27 CHALLENGE • Slow, manual processes causing product launch bottlenecks • Lack of visibility into launch project status SOLUTION • Digitized three launch processes • Reduced product launch cycle times by 50-75% • Increased visibility and improved governance • Achieved repeatable, predictable processes
- 28. CHALLENGE Dorman speeds through masterdata changes • Change subset of materials from ‘Manufactured’ to ‘Kitted’ • Update BoMs and Routings • Change sales order to reflect non-kitted materials RESULTS • Minimal business impact • Improved data quality Hours Total Cost Difference Manual Processes 60 $4,500 Using Automation 5 $375 $4,125 saved 3,000 materials converted in 1st quarter after implemantation Savings = $123,750 Per 100 materials
- 29. Broad Automation Benefits AgilitySpeed Improved data quality Business team focus Automation flexibility Scalability More precise reporting & forecasting Process visibility
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- 31. Strategic business benefits Increased efficiency & cost savings Enhanced customer experience Higher-qualitydata and well-governed processes support digital transformation and data integrity. Improved decision making Competitive advantage Presentation name 31
- 32. The global leader indata integrity software Our data integrity software, data enrichment products, and strategic services deliver accuracy, consistency, and context to power confident business decisions. Brands you trust, trust us Data leaders partner with us of the Fortune 100 99 Customers in more than 100 2,500 employees customers 12,000 countries Integrate Enrich Locate Verify Data Integrity Suite
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- 38. A major transformation CASE STUDY:ENERGY DRINK COMPANY
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- 40. Then a global distributiondeal happened…. …and their product launch processes became a bottleneck
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- 42. Multiple, different launch types Product launch types New productsProduct changes Geographical expansion New innovation Line extensions ingredient/ label change Seasonal / Promotional products Legal/ regulatory change others Plant extensions Sales org. extensions
- 43. Projects identified Point ofSale Materials Raw Materials Production Process
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- 45. Visibility Governance Repeatable Reducedcycle times by 50-75%
Editor's Notes
- #2 Alternative Headlines: - Alternative Sub-Headlines: Hyperautomation for your digital transformation dreams Driving digital transformation success
- #5 What are we going to talk about today…
- #6 Note to sales: Use this slide to explain that there’s a ton of SAP master data outside of the big four domains. SAP MDG is designed just to govern a few core attributes in the big four domains, but our products can digitize and accelerate processes that span master data objects while improving data quality and compliance.
- #8 Complexity is a multi-dimensional barrier to automation and optimization Complexity is a recurring theme throughout this survey. Organizations running SAP ERP systems make it clear in their responses that complexity is a significant pain point across multiple dimensions. It presents challenges to implementing automation and is a barrier to process optimization. At the same time, SAP users are looking to automation as a way to overcome the complexities presented by SAP itself. For this to happen, we need to understand the multiple dimensions of complexity at play in the SAP environment and how they intersect with automation and optimization. Data complexity The complexity associated with SAP data creation and maintenance. SAP master data records are complex, data-intensive, and, when managed manually, prone to error. Frequently, SAP records have complex data structures with dozens of objects and fields, all of which must be correct to support the business effectively. As the pace of data growth accelerates, data complexity becomes an even greater challenge for organizations. Process complexity The complexity associated with the business processes needed to create and manage SAP data. Many of the most critical SAP processes require the participation of constituents across an organization. Processes such as account creation, materials management, and the updating or extension of records must be governed and tracked to remain compliant. Due to their complexity, these human-in-the-loop processes are often some of the last to be automated, yet they can deliver some of the highest ROI when automated properly. Organizational complexity The complexity associated with business organizations and priorities. The organizational interdependencies associated with processes that cross multiple departments inside large organizations are not always well understood. Moreover, business priorities of individual departments are often in conflict. Getting everyone on the same page and agreeing to a set of priorities is challenging. If developing an automation solution takes too long, it can be de-prioritized in favor of a different program that delivers short-term gains.
- #9 The Central Nervous System of Your Enterprise: SAP Material Master Data Imagine the human body. The nervous system, a complex network of cells and pathways, coordinates and regulates every function, from blinking to breathing to digestion. Similarly, in an enterprise, SAP Material Master data acts as the central nervous system, connecting and informing a wide range of crucial operations. Data Threads Weaving Through Every Department: Sales & Marketing: Accurate product descriptions, pricing, and availability in the Material Master fuel accurate quotes, orders, and customer interactions. Purchasing & Procurement: Material specifications, lead times, and supplier information guide efficient sourcing and cost negotiation. Inventory Management: Stock levels, reorder points, and storage locations in the Master data optimize warehouse operations and prevent stockouts. Production & Manufacturing: Bill of materials (BOMs) linked to the Master data ensure the right components are available for production, minimizing delays and waste. Finance & Accounting: Costing data in the Master feeds accurate product pricing, profitability analysis, and financial reporting. A Tangled Web, But Worth Untangling: Maintaining data integrity across these interconnected functions is crucial. Inconsistent or inaccurate material data can lead to: Order fulfillment errors: Wrong products shipped, incorrect pricing, and customer dissatisfaction. Production delays: Missing components or inaccurate BOMs halt production lines, costing time and money. Inventory mismanagement: Overstocking or understocking lead to wasted resources and lost sales opportunities. Financial reporting inaccuracies: Misleading profitability calculations and compliance issues. Mastering the Master Data: To harness the full potential of Material Master data, companies need to: Centralize and standardize data: Implement master data management (MDM) solutions to ensure a single source of truth for all material information. Automate data integration: Use data integration tools to seamlessly update material data across different systems and departments. Enforce data governance: Establish clear ownership, access controls, and quality standards for data maintenance. Train employees: Educate all personnel on the importance of data quality and best practices for data entry and validation. By treating SAP Material Master data with the respect it deserves, companies can unlock a world of improved efficiency, accuracy, and profitability. Remember, just like a healthy nervous system keeps the body functioning smoothly, accurate and well-maintained Material Master data keeps the enterprise running like a well-oiled machine. Visualizing the Connections: Imagine a spider web: Each strand represents a department or function connected to the central hub of Material Master data. Think of a traffic light: Green light for smooth operations with accurate data, yellow light for potential issues with inconsistencies, and red light for complete chaos with unreliable data. Picture a puzzle: Each piece of Material Master data contributes to the bigger picture of a well-functioning enterprise. By understanding these connections and actively managing your Material Master data, you can empower your enterprise to reach its full potential.
- #10 A typical SAP Materials record has over 300 data objects that span an average of 18 screens in the SAP GUI. Trying to manage materials data manually introduces innumerable opportunities for errors and problems with both process efficiencies and data quality. Fiori Apps potentially complicate this further by often requiring the user to access and enter data in multiple Fiori apps to manage a single materials record. While the number of fields and data objects in an SAP ERP Material Master record remains approximately 300, managing them through Fiori presents unique challenges and considerations: 1. Navigation and Complexity: Multiple Fiori Apps: Material data is often spread across multiple Fiori apps, each with its own navigation and data views. This can make it challenging for users to locate and manage all relevant information. Adapting to New Interface: Users accustomed to traditional SAP GUI transaction codes may need training to adapt to Fiori's tile-based interface and search-driven navigation. 2. Data Consistency and Validation: Decentralized Updates: Fiori's user-friendly interface can encourage more users to create and update material data, potentially increasing the risk of data inconsistencies if proper validation and governance controls are not in place. Validation Rules: It's crucial to ensure Fiori apps enforce the same validation rules and data quality checks as traditional SAP transactions to maintain data integrity. 3. Customization and Integration: Custom Fiori Apps: Companies often create custom Fiori apps for specific material management needs, which can introduce compatibility issues with standard apps or integration challenges with other systems. Integration with Non-Fiori Systems: Material data accessed through Fiori might need to be integrated with other enterprise systems that don't use Fiori, requiring additional data mapping and synchronization efforts. 4. Data Governance and Change Management: Access Controls: Fiori's role-based access control features need to be carefully configured to ensure appropriate data permissions and prevent unauthorized modifications. Change Management: Implementing Fiori for material management involves organizational change management to ensure user adoption, effective training, and adherence to data governance policies. 5. Performance and Offline Capabilities: Network Dependencies: Fiori's reliance on web technologies can make it susceptible to network performance issues, potentially affecting material data access and updates. Offline Functionality: Limited offline capabilities in some Fiori apps might restrict material data management in scenarios with unreliable internet connectivity.
- #12 Identifying a company's struggles with material master data can be like detecting a faint illness – the symptoms might be subtle, but they point to deeper issues. Here are some telltale signs to watch out for: Operational Red Flags: Frequent inventory discrepancies and stockouts: Inconsistent or inaccurate data leads to miscalculated inventory levels, resulting in missed sales opportunities or production delays. Order fulfillment errors: Wrong products shipped, incorrect pricing, and customer complaints can indicate data inconsistencies between sales and material master records. Production delays and disruptions: Missing components or inaccurate BOMs in the master data can halt production lines, causing costly downtime. Increased procurement costs and lead times: Difficulty sourcing materials due to inaccurate supplier information or product specifications in the master data can lead to higher costs and delays. Data integration issues: Difficulty synchronizing material data across different systems, like ERP and CRM, can point to underlying inconsistencies and lack of standardization. Financial Woes: Inaccurate financial reporting: Misleading profitability calculations and cost overruns can be symptoms of flawed costing data within the material master records. Increased audit risks: Inconsistent or incomplete data raises red flags for auditors, potentially leading to fines and reputational damage. Wasted resources due to overstocking or understocking: Inaccurate inventory levels due to poor data management lead to unnecessary spending on excess inventory or lost sales due to stockouts. Behavioral Clues: Employee frustration and complaints: Confusion and inefficiencies due to unreliable data can lead to employee dissatisfaction and decreased productivity. Lack of data ownership and accountability: If no one takes responsibility for data quality, it implies underlying governance issues and potential data inconsistencies. Resistance to data standardization and cleansing initiatives: Employees hesitant to update or adjust inaccurate data might indicate a culture of data silos and reluctance to confront data challenges.
- #14 This quote does a great job of summing up the importance of data in executing digital transformation. It sets up our discussion for the interdependence of process and data and sets Precisely apart from many of the other process automation providers.
- #17 Our Automate platform delivers a complete set of automation capabilities from data automation to complex process automation. Data automation enables you to automate mass data creation and management activities such as pricing or materials changes using Excel. On the process automation side Excel workflow enables you to manage the data automation files through a complex workflow. A prime example of Excel workflow is for journal entries in finance. There is a good chance that you are already managing your journal entries in Excel. Excel workflow allows you to manage these Excel files through a contingent review and approval process that uses your business rules to determine the routing and approval process. And once the final approval is received, the data is automatically posted to SAP. No manual data entry at the end of the process.
- #19 Our Automate platform delivers a complete set of automation capabilities from data automation to complex process automation. Data automation enables you to automate mass data creation and management activities such as pricing or materials changes using Excel. On the process automation side Excel workflow enables you to manage the data automation files through a complex workflow. A prime example of Excel workflow is for journal entries in finance. There is a good chance that you are already managing your journal entries in Excel. Excel workflow allows you to manage these Excel files through a contingent review and approval process that uses your business rules to determine the routing and approval process. And once the final approval is received, the data is automatically posted to SAP. No manual data entry at the end of the process.
- #20 McKesson The Precisely Automate Enterprise Journal Entry solution This is an example of an SAP-only automation process where everything happens in Precisely Automate Once the JE data is in Excel, we manage the validation against, routing of the Excel files (centralized through server) and auto-posting approved files to SAP. Journal entries from many sources Consolidated in to Precisely Automate enabled Excel files Precisely Automate validates data against SAP Files routed for approval Approved files queued on server for auto-posting to SAP Precisely Automate Enterprise Journal Entry Solution – Built on our Foundation platform, it offers complete control over your journal entry processes from script management to flexible, conditional file routing and tracking, to data validation against SAP, and auto-posting approved files.
- #21 Our Automate platform delivers a complete set of automation capabilities from data automation to complex process automation. Data automation enables you to automate mass data creation and management activities such as pricing or materials changes using Excel. On the process automation side Excel workflow enables you to manage the data automation files through a complex workflow. A prime example of Excel workflow is for journal entries in finance. There is a good chance that you are already managing your journal entries in Excel. Excel workflow allows you to manage these Excel files through a contingent review and approval process that uses your business rules to determine the routing and approval process. And once the final approval is received, the data is automatically posted to SAP. No manual data entry at the end of the process.
- #22 Note to sales: Use this slide to introduce our data stewardship capabilities with Evolve.
- #23 For example, if you are creating a new G/L account, the person who initiates the process enters basic account information in the form. Based on this information, and rules, that are defined and setup by the customer, the Precisely Automate solution determines who the appropriate contributors are, who needs to approve the final form and then can auto-post the approved data to SAP, thus creating the new account. No more manual routing processed, error-prone data entry or ungoverned files being shared via email.
- #24 Note to sales: Getting more visibility into these strategic data processes is one of the key reasons customers are looking for an automation solution. If customers are tackling these processes with spreadsheets and email it’s really tough and time consuming to find out where a request is in the process. Develop dashboards and reports for process participants and management with your tool of choice View status of in-process projects to keep projects on track View historical data to continuously improve processes
- #26 Mention citizen development and our history of enabling business teams to develop and deploy automation
- #27 Mention citizen development and our history of enabling business teams to develop and deploy automation
- #28 Note to sales: This is a one slide version of the Monster story. The NPI section of the deck has the bigger story. Please watch the webinar on Precisely.com to hear the full story.
- #29 The particular use case I’d like to highlight was changing a subset of materials from manufactured to kitted, which effected BoMs, routings and sales orders.
- #30 Agility to quickly adapt to changes in your business environment through flexible workflow automation Also – Low code/no code environment enables faster solution development through citizen development Speed for faster, more efficient processes Improved initial data quality through elimination of manual data entry and integrated data stewardship capabilities Visibility throughout a complex process for: Reporting Process Intelligence Process linking - real-time process tracking (Does this get called out separately?) Audit support Historical comparison/analysis Business team focus – Low code/no code environment enables business teams and those closest to a process to develop automation solutions Automation flexibility - to determine best automation route (attended vs unattended, form or Excel interface, connection to other systems of record through APIs for end-to-end process automation) Scalability to process almost any amount of SAP data as needed by a process step Proven track record – Nearly twenty years of SAP ERP process automation success has demonstrated why Evolve is the leading process automation platform/solution for thousands of customers world-wide.
- #32 Improved decision-making: Accurate and reliable information: Clean data ensures business decisions are based on accurate insights, reducing the risk of costly mistakes and missed opportunities. Enhanced visibility: Well-governed data provides a consistent view across departments, enabling leaders to make informed decisions based on the complete picture. Data-driven strategies: High-quality data becomes the foundation for powerful analytics and insights, supporting proactive strategies and competitive advantage. Increased efficiency and cost savings: Reduced rework and errors: Clean data minimizes errors in processes like marketing campaigns, customer service, and logistics, saving time and resources. Optimized operations: Consistent data enables streamlined workflows and improved resource allocation, reducing operational costs. Simplified compliance: Strong governance ensures data adheres to regulations, saving time and avoiding hefty fines. Enhanced customer experience: Improved personalization: Clean customer data allows for targeted marketing, personalized offers, and better customer service interactions. Reduced customer churn: Accurate data helps identify and address customer issues promptly, improving satisfaction and loyalty. Stronger brand reputation: Data-driven insights enable proactive customer service and product development, leading to a positive brand image. Additional benefits: Competitive edge: Access to reliable data empowers innovation and agility, setting the company apart from competitors. Improved risk management: Data quality enables proactive identification and mitigation of potential risks across the organization. Stronger regulatory compliance: Well-governed data processes ensure adherence to industry regulations and data privacy laws.
- #39 I would like to share with you Monster Energy's process transformation story.
- #40 This Energy Drinks was using spreadsheets and emails to track their product launches (They call it NPW – New Product Worksheet). Their process even required project managers of new products to invest hours each day tracking down status to report back to meetings and management – just another task that was eating up time. In their words it was “organized chaos”. <click>
- #41 Then the energy drinks company entered into a partnership with a major global soft drinks company. This gave the energy drinks company access to aspects of their global distribution network <click> and dramatically increasing the number of new product launches (it quadrupled the number of open projects). Their current manual process simply couldn’t scale… <click> [Notes: To be clear the soft drinks company doesn’t own the energy drinks company, however they do have a 17% stake in the company] and getting the data into SAP for all the global sites soon became the bottleneck holding Monster back. So, let me share with you a little about the Energy Drinks company’s transformation journey. <click>
- #42 First, we mapped out their existing process – something they had never done before – and there were some real aha moments here. This is where Precisely’s professional services team really began to shine – by looking beyond just the tools. Like any good process transformation project, we reviewed the people, process and technology. This was the beginning of the true Transformation that included automation, process redesign and organizational changes needed to allow the Energy Drinks company to move at a faster pace. <click>
- #43 One of the key learnings from the workshops was that there are many different product launch types … and the Energy Drinks company was faced with examples of almost all of them.
- #44 Out of the process workshop we identified 3 different business solutions, Point-of-Sale Materials (these are salable materials for items like T-shirts, hats and stickers – Note that Merchandise is a big part of the Energy Drinks company revenue stream), Raw materials (ingredients) and the product manufacturing process – the overall process needed to launch a new product. The product production solution includes more than 8 SAP product data objects, and our modular architecture allows you to dynamically link the sub processes needed for each specific launch, even calling the independent raw material process if needed. It was obvious that the Energy Drinks company needed to help immediately <click>
- #45 Highlevel overview – our solution can handle a lot of complexity and being able to process projects independently of plant was huge for the Energy Drinks company… Total steps = 23
- #46 At the first pass they have already reduced their product launch cycle times by 50-75% depending on launch type. They now have tools and controls in place that easily allows them to collect the right data at the right time from the right people. They have the visibility they need to effectively manage their product launches, and the governance in place to allow business teams to take true ownership of “their” data. This gives the Energy Drinks company trust in a repeatable process that allows them to bring new products to market faster than ever before!