5 Steps to Customer Master Data Integration presented at the GA Chapter ASUG on October 28, 2011

1. 5 Steps to Customer
Master Data Integration ]
October 28, 2011/
[ JUERGEN LINDNER
Mary Levins, CIBA VISION
[
SAP POINT OF CONTACT
MEMBER SINCE: 1998
Sofia Menchaca, Experian QAS
[ LINDA WILSON
ASUG INSTALLATION MEMBER
MEMBER SINCE: 1999
[ ATUL PATANKAR
ASUG INSTALLATION MEMBER
MEMBER SINCE: 2000

2. [ Agenda – 5 Steps to Customer Data Integration
 Overview - CIBA VISION/ Alcon/ Novartis Merge
 Overview - Experian QAS
 The Business Problem
 The 5 Steps – Challenge, Purpose and Approach
 Step 1 – Extract
 Step 2 – Standardize
 Step 3 – Match
 Step 4 – Group
 Step 5 – Maintain
 Technology as a solution
 Lessons Learned
Real Experience. Real Advantage. 2

3. [ Global Leader in Contact Lenses and Lens Care Products
 #2 Weekly / Monthly Contact Lens Continued Innovation:
Leveraging Core
 #2 Disposable Contact Lens Competencies
 #1 Multi-Purpose Solution
 #1 Peroxide Solution
Silicone Hydrogel Material Technology
Lightstream Process Technology
Lens Wetting Technology
Real Experience. Real Advantage.

4. [ Novartis is a world-leading healthcare company
 Leading market position
 One of 25 largest companies by market capitalization
 Among most respected companies globally
Key figures Sales by region – 2010
Canada/ Alcon, Inc.1
2010 USD billion Latin America
Europe
Net sales: 50.6
Asia/Africa/
Net income: 10.0 Australasia
R&D investment: 8.1
US
1 Regional data for Alcon, Inc. not available
Real Experience. Real Advantage. | Novartis company presentation | March 2011 | Business use only

5. We believe our portfolio best meets the varied and
[ often complex needs of patients and societies
Environment Patient needs Novartis portfolio
Pharmaceuticals
Innovative
medicines
Alcon
(Eye care)
Prevention
Full range
of healthcare Sandoz
options (Generics)
Affordable
options
Consumer Health
(OTC and Animal Health)
Self-care
Vaccines and
Diagnostics
Real Experience. Real Advantage. | Novartis company presentation | March 2011 | Business use only

6. [The New Alcon: World Leader in Eye Care
Surgical Pharmaceutical Vision Care
 Most complete line of  Products for chronic  Alcon Multi-purpose
ophthalmic surgical and acute diseases of disinfecting solutions
products the eye
• Cataract • Glaucoma
• Vitreoretinal • Allergy
• Refractive • Anti-infective / Anti-
inflammatory  CIBA VISION portfolio
• Dry eye of contact lenses and
lens care products
• Silicone hydrogel
• Daily disposable
 Novartis Ophthalmic • Color
portfolio • Hydrogen peroxide
= $3.2 bn = $3.5 bn = $2.7 bn
2010 pro-forma sales
Real Experience. Real Advantage.

7. [ About Experian QAS
 Contact data verification,
standardization, & enrichment
tools
 Division of Experian Marketing
Services
 11,000 global clients / 2,000 Enter our raffle contest!
clients in North America
 Thought leader in contact data
quality
 Best practice contact data
quality standards
Real Experience. Real Advantage. 7

8. [ Strategic Goals are Supported by Data
Productivity Compliance Satisfaction
New Business Customer Cost
Sales Retention Reductions
 Success is driven by the level of data quality collected,
stored, and managed on a daily basis
 Optimize CRM/ERP experience
 Create a singular customer view
 Biggest challenges:
 Not physical asset
 Identifying and consolidating across the right channels
Real Experience. Real Advantage. 8

9. Definitions: What is Master Data and Customer Data
[ Integration?
Master Data:
Data that is a critical company Finance/
asset used by multiple businesses, Credit
functions, and users across one or
many systems.
Web Services CRM
Customer Data Integration:
Wikipedia definition: “customer
data integration (CDI) combines
the technology, processes and Customer
services needed to set up and Master Data
maintain an accurate, timely,
complete and comprehensive
representation of a customer Marketing BI/ Reporting
across multiple channels, business-
lines, and enterprises — typically
from multiple sources of associated
data in multiple application systems ERP
(Transactions)
and databases”.
Single version of the Truth
Real Experience. Real Advantage. 9

10. [Primary Business Driver to Integrate Master Data
Novartis A single view of the
- Pharma Ophtha customer was
needed to support
1. New CRM/Sales
CIBA VISION Force Realignment
Alcon - Ophthalmologists, 2. Supply Chain and
Optometrist,
– Surgeons, Opticians; Retail Distribution Changes
Ophthalmologists, stores, other
Optometrist, Opticians,
Retail Stores, other
Real Experience. Real Advantage. 10

11. [Challenge: Create a Single View of the Customer
CIBA VISION Alcon
SAP CRM (Siebel)
Partner Functions Sales Calls
Banking Data
Customer
Address (Front Office) Sales Objectives
“F” Accounts Sales Sample Drops
Customer Master
Sold-to Party:
Dr. Joe Brown
Customer-to-Commercial
•
Address Account Affiliations
•
Partner Functions
•
Banking Data
ERP (JDE)
Commercial Commercial Commercial Commercial Commercial
(Back Office) (Back Office) (Back Office) (Back Office) (Back Office)
JDE Accounts JDE Accounts JDE Accounts JDE Accounts JDE Accounts
CTI Screen Pops CPaks ($$) IOLs ($$) Equipment ($$) Shipments
CS SRs TS SRs
TS Service
Agreements
Business Value: Minimize customer impact by ensuring customer data
is available to support integrated business functions. CARS Contracts
Real Experience. Real Advantage.

12. [ The 5 Steps to Customer Data Integration
 Step 1: Extract
 Step 2: Standardize
 Step 3: Match
 Step 4: Group
 Step 5: Maintain
Real Experience. Real Advantage. 12

13. [ Step 1 – Extract Data
Challenge: What data needs to be integrated?
Purpose: Identify data to be integrated
Approach:
 Identify all Source Systems
 Understand Data Model across source systems
 Data Attributes
 System of Record
 Define Criteria
 Account type
 Partner Function (Bill to/ ship to)
 Definition of „Active‟
 Complete Data Profile and Measures
 Manage Extract Date
“Devil is in the details”
Real Experience. Real Advantage. 13

14. [ Step 2 - Standardize
Challenge: How do we ensure we keep the right record?
Purpose: To support the matching process
Approach:
 Identify a common industry reference
 Standardize address data in extract file against the same
source
“Data is dirtier than you think”
Real Experience. Real Advantage. 14

15. [ Step 3 - Match
Challenge: How do we get to a single customer record?
Purpose: De-duplicate
Approach:
 Initial Match
 Standardized records
 Source to Target
 Detailed Match
 Custom Tool for Business to compare initial matches
 Define more detailed business rules (“Survivorship”)
 Automated Match
 Using verified business rules
“Survivorship”
Real Experience. Real Advantage. 15

16. [ Step 4 - Group
Challenge: How do we support the business integration
needs first?
Purpose: Categorize the work to prioritize
Approach:
 Define Categories
 High Match
 Low Match
 No Match
 Define Action for each category
“Get Quick wins”
Real Experience. Real Advantage. 16

17. [ Step 5 - Maintain
Challenge: How do we ensure customer master data
administration across multiple systems
Purpose: Minimize the risk while on separate ERP systems
Approach:
 Define a new system of record moving forward
 Define an on going maintenance process
 New customer accounts
 Changes to existing customers
“Centralize Data Administration”
Real Experience. Real Advantage. 17

18. [ How do we know if we are successful?
Impact
Order Customers Sales Force Data
Processes
Scenario
Customers easily 100% seamless and Higher level of 100% fully integrated
Best day identified transparent to the customers called on;
customer. increase in business;
dream Exceed customer no distractions
No data quality issues.
expectations. resolving data related
issues.
Able to take orders and Can meet customer Sales Reps are calling Majority of customer
ship in JDE or SAP. expectations. on the right account. data available in Alcon
As planned and stable. Volume of
new creates does not
overwhelm process.
Wrong customer Can‟t meet customer Customers not called Wrong accounts
Worst account or not expectations and lose on by Sales Rep matched, not available,
available, ship to wrong customers and resulting in loss of data quality degrades,
nightmare customer. business sales. duplicates created, CDA
process overwhelmed
High resource impact to
request new setup.
Real Experience. Real Advantage. 18

19. [Customer Master Data Integration – High Level Process
IT – CIBA VISION Extract Files IT – CIBA VISION
IT – Alcon
IT - Alcon
Proposed Address
Experian QAS Low Match Standardization Load Cross
(50%<X< and Reference
87%) Auto Match
Apply Rules to
Proposed Good
improve
IT - Alcon Matches (> 86%)
one to one Maintain
match
CDA Tool
Manual Verification
Alcon CDA One to One match Steps (high level)
1. Extract
2. Standardize
No Create as 3. Match
Alcon CDA One to One
New Alcon 4. Group
Match?
Customer
5. Maintain
Yes
CIBA VISION Verify results
Real Experience. Real Advantage.

20. [ Where Experian QAS Fits
 Data management needs to be a company-wide initiative
 An address is more than a physical mailing location
 Verification: accuracy
 Standardization: duplicate identification
 Enrichment: profiling & intelligence
 IT needs to empower data users (and eliminate the
potential for human error)
Customer Spotlight: CIBA VISION
% normalized • 64% High Match
versus • 27% Low Match
% requiring rework • 9% No Match
Real Experience. Real Advantage. 20

21. [ Products & Services
Products Data Verification
• Real-time verification • Addresses
• Bulk processing - Lists & • Email
DBs • Phone numbers
• De-duplication • Demographics
Deployment & Services
• Integrations in mySAP and other enterprise applications
• On premise & On-demand (hosted web services)
• Bureau Services
Real Experience. Real Advantage.

22. [ Experian QAS & SAP
 Seamless integration into every version of SAP ERP &
CRM
 12 year accredited software solution partner
 SAP‟s only provider of real-time interactive functionality
 Pre-packaged native integration
 The ideal solution:
 User-friendly
 Interactive
 Enforced
 Available across all channels: back office, web, call center,
and EDI/IDOC
Real Experience. Real Advantage. 22

23. [ The Journey of an Address
Lack of
knowledge Confusion
Metrics
Customer
volume &
diversity
Real Experience. Real Advantage. 23

24. [ Market Problems
 Organizations have multiple data collection channels
 Common errors :
 Incomplete responses
 Outdated information
 Misspelled entries
 Barriers to accurate data entry:
 Knowledge of changes
 Human error
 Budget
 98% say budget is wasted on contact data errors
 The average % of budget wasted was 16-20%
Real Experience. Real Advantage. 24

25. [ Current Strategies
 82% currently have a data quality strategy
 Data cleansing responsibilities lie within IT
 Data quality efforts tend to be manual
 Staff measurement
 Manual review
 Training
Real Experience. Real Advantage. 25

26. [ Key Lessons Learned
 Customer name and address are at the core of every
record
 Defining “success” up-front ensures project is aligned with
business drivers
 Focus on “quick wins” first
 Full circle: Point of capture and Batch tools
 High confidence in data quality and integrity unleashes
the potential of your SAP platform
Real Experience. Real Advantage. 26

27. [ Questions?
 Remember – visit us at the Experian QAS table following
this session. Learn more – and enter for a chance to win.
Real Experience. Real Advantage. 27

28. [
]
 Thank you.
Real Experience. Real Advantage. 28