Driving SAP upgrade or consolidation success with harmonized material masters

Today’s Technology and Services to drive material data performance.
Welcome to our December Webinar
Driving SAP Upgrade or Consolidation Success with Harmonized Material Masters
ASR-Group and Verdantis highlight how Harmonized Material Masters impact SAP Rollout ROI
© 2014 Verdantis Inc. All Rights Reserved.

Today Speakers
Jose Bobrek–Central Master Data Management, ASR-Group
Jose is a Team Leader within the Central Master Data Management team at ASR-Group, responsible for MRO and Vendor master data. ASR-Group is the largest vertically integrated sugar cane refiner in the world with brands such as Domino Sugar, C&H, Florida Crystals, Tate & LyleSugars and Redpath. ASR-Group utilized the services of Verdantis back in 2002 to harmonize their legacy data. Since then Jose’s team has maintained the integrity of the master data with a home-grown system called CMDM which in 2011 was replaced with Verdantis Integrity -a more robust tool to govern large amounts of materials. During their last 3 acquisitions in Europe and North America, Verdantis categorized & standardized 40,000 materials and translated in 3 languages 3,000 materials that were loaded in to Integrity to become part of the 250K global repository of harmonized materials used by the ASR- Group.
Arthur Raguette -Executive Vice President, Verdantis Inc.
Arthur is very passionate about the application of innovative technologies to solve real-world business problems with a strong emphasis on large enterprise solutions. He has more than a decade of experience of working with Software for Master Data Management and Data Governance for multiple domains and across industries. Arthur’s prior technology passions included high performance B2B middleware and hybridized SaaS applications for HR, Employee and Education related domains.
Copyright 2014 Verdantis Inc.

•Why ERP consolidations fail ? How can M&As leverage the larger procurement organization? Arthur Raguette –EVP, Verdantis Inc.
•The secret sauce, and why should Business careArthur Raguette –EVP, Verdantis Inc.
•Getting it Clean and Keeping it CleanArthur Raguette –EVP, Verdantis Inc.
•How ASR-Group safeguarded their SAP ERP investment Jose Bobrek –MRO Team Lead, ASR-Group
•Your data holds locked value –See for yourselves with a free Proof of ValueArthur Raguette –EVP, Verdantis Inc.
Agenda

•ERP Systems Are Indispensable to Business Operations in Large Organizations
•Master Data Has a Material Impact on the Financial and Operational Health of an Organization
•Master Data Quality affects the Accuracy, Efficiency, and Reliability of business processes
•Consistent Data Management keeps Enterprise Applications effective
•Master Data Standardization and Rationalization Is a foundation for increasing the ROI of an existing ERP Investment
Background

The items it makes
The items it buys
The employees who work there
The customers who buy
The suppliers it buys from
Master Data Quality Issues Ripple Across the Enterprise
Common Master Data Domains
The Role of Master Data in the Enterprise

Customer Master
CRM Teams
Vendor Master
Procurement/Accounts Payable
Item Master
No clear Owners
A disorganized approach toward Maintaining Master Data Is more common than you may think…
A Challenge of Master Data in the Enterprise

Business Stakeholders
Enterprise Applications
Information Technology
Has specific functionality
Rules in its own fashion
Handles the business context of data
Individual understanding of data attributes
Global Data
Synchronization
Processes related to
Customers
Materials
Products/Services
Vendors
Information is inconsistent across the organization
Sharing and synchronizing information across enterprise applications further creates complexities
Conflicting data across business factions
Lack of stakeholder ownership
Delayed request for information
Lost ROI from ERP investment
Heterogeneity
Multi-domain MDM Challenges

•Various master record formats
•Various systems of record
•Incongruent naming standards or no naming standard
•Lack of a standardized classification convention
•Incomplete fields and missing data elements
The Effect of Bad Master Data on Business Initiatives Is Profound
•Merger and Acquisition Activities
•ERP System Consolidation
•Enterprise Spend Management
•Sourcing Strategies and the make-v/s-buy process
•Inventory Visibility
•Decreased Plant and Equipment Availability
•Part Reuse in Design
•Decreased Employee Productivity
Current Issues in Master Data Success: The Root Cause is Data Quality

ETL Solutions
(Extract, Transform, Load)
These solutions are too generic in functionality to deal with the complexities of item master records. ETL solutions do not perform classification and attribute enrichment. Moreover, there is considerable effort and expense in setting up these solutions for repeated use.
Asset Management Solutions
Asset management solutions typically target only a subset of item master data, namely MRO (maintenance, repair, and operations) items. This is
not sufficient for ERP consolidation or for comprehensive spend analysis. In addition, there is significant manual effort involved.
Commerce Catalog Solutions
Commerce catalog solutions tend to focus only on the items sold, rather than those procured. These solutions are less experienced in tapping the various internal and external sources of item data and fail in the subject-matter expert department. Furthermore, they do not automate the attribute enrichment, automating instead only the workflow.
Manual Content Factories
Manual content factories, or manual approaches in general, were common before the advent of artificial intelligence tools for master data rationalization. The manual approach cannot scale nor can it meet the throughput demands of large projects.
Incomplete Approaches towards Master Data Rationalization

•How repeatable is the process?
•Can the system learn?
•What is the throughput of the system?
•How strong are the algorithms used for the automated processing?
•Can the process be integrated into daily operations?
Limited Scope of Organizational Data
Narrow Focus
Lack of Scalability
High manual intervention
Multiparty data manipulation
Key Issues with Concurrent
MDM Approaches
Proper Master Data Management requires a consistent automated process!

Master Data Management (MDM) of the Key Masters has to be part of the ERP blueprint
ERP initiatives, the importance of data migration & the emergence of Master Data Management (MDM)
During Data Migration, multiple masters are migrated
•Small Masters -Chart of Accounts Master, Currency Master, etc
•Key Masters -Material, Vendor, Customer, etc
Handling of the key masters during migrations is the key to unlocking the ROI from an ERP investment
•Material Master ROI
•Supplier Master ROI
•Customer Master ROI
Handling Key Masters need a specialist
•IT services provider or ERP implementation partners cannot do it
•Data migration of Key masters needs strong domain expertise
•Specialized cleaning tools and knowledge repositories are needed
83% of data migration projects fall/overrun
•Half exceed timescales by three-quarters
•Budgets are exceeded by two-thirds
•A third of these fail entirely
Integrating Master Data Rationalization Into ERP Consolidation or Upgrade Planning

Demonstrable ROI in
•Greater and quicker ROI realization form ERP Investments
•Increased Leverage of the existing systems
•Increased Contract Compliance
•Spend Leverage through supplier consolidation
•Global Inventory optimization
•Reduction of Inventory Carrying costs
•Increased Plant Uptime
•Increased Worker productivity
•Reduced Mean Time to Delivery of Products
Extraction and Aggregation
Cleansing
Classification
Attribute Extraction and Enrichment
Final Duplicate Record Identification
Building the right business Case for Master Data Rationalization
Material Master Data Rationalization

•Clean, Reliable Master Data Enables Successful Enterprise Initiatives
•Master Data Rationalization Is Required to Ensure Master Data Quality
•Build Master Data Rationalization Into ERP Consolidation Planning
•Master Data Rationalization Is a Key Component to Achieve Data Quality Maturity
The bottom line

VERDANTIS AUTOMATED MDM SOLUTION SUITE
GET IT CLEAN
VERDANTIS
HARMONIZE®
Automated solution
for historical master
data harmonization
Fully automated
solution to cleanse
and enrich historical
master data
Offered historically as
a Turn-key service
Now also offered as
Licensed SaaS Platform
Automated solution
for real-time on-going
data integrity
VERDANTIS
INTEGRITY®
KEEP IT CLEAN
MDM/MDG application
to prevent duplication,
and ensure on-going
data integrity
AutoClass
AutoSpec
AutoNorm
AutoCrawl
Classification into
pre-determined
codes
Attribute extraction
& de-duplication
software for
Material master
Normalization
& validation of
MFG, MPN and UOM
Intelligent web
spidering tool for Data harmonization
Verdantis Knowledgebase
Dynamic content Repository
AI Technology
AI-based Software Tools
AutoClass AutoSpec
AutoNorm AutoCrawl
© Verdantis, Inc. 2014
ProcessCombination
Its not just about data quality –it is business information quality

•Task and Batch Management Improvesworkflow and Increasesthroughput
–A graphical process builder is used to create a project or batch process/data flow
•Individual Processes can be ordered per project or per batch to set the automation linkages and tie in the human team members
•Having multiple batches per project allows optimization of team members while managing interim deliverables across a global team
Project and Batch Management

•EmbedAdvancesin categorization, classification, and clustering
–Next Generation of Artificial Intelligence based classification combined with post processing closed-loop feedback
Automation of Categorization

•Automatedcontext-aware attribute, characteristic, and value identification and extraction
–Domain and Taxonomy specific modules for materials and industrial products
•Extendable intelligence for Industry and Geography coverage
•Extensible modules configurable by customers or by Verdantis
Automated Attribute Extraction

Encapsulated Best Practices for Material Master

SaaS Based Approach is great for Organizations who
–Are facing ERP/MRP/EAM and Transformation Projects
–Have the internal resources to do the work
–Also those
•with Non-Standard Domains with specific domain requirements, or
•Target continuous M&A or Joint Ventures
–Want to leverage a Force Multiplier of x 10 through clustering, fuzzy logic matching, and Learn By Example
Automated Standardization, Normalization and Element Extraction lets one person run Thousands of records per day!
Automation = Internal Team x 10

GlobalOil and Gas producer with revenues over $100 Billion
•Our Software forms the backbone of the Customer’s Material Master Data System -which combines into a common SaaS platform:
•Self Service Catalogue Master Cleansing and Loading capabilities for the Global Supplier Ecosystem.
•Indirect Goods Master management
•MRO Material Master management
•Engineered Part Master management
•The historical data alignment process covered more than 6 different types of data and nearly a million SKUs
More than Just Consolidations –Procurement Transformations

Growth by acquisition created a need to migrate new plants onto a common ERP and Item and Supplier Master Catalogue. Integrity managing on-boarding and governance of both.
•Harmony modelling for 2 ERP systems
•250K Items, 30 Plants
•300 Named Users
•2 languages plus English
•1000 plus new materials monthly
Fortune 500 –Worlds Largest Sugar producer, American Sugar has FCC and Domino’s as household brands
Jose Bobrek
Team Leader (MRO & Vendors)
Florida Crystals Corporation
ASR-Group
American Sugar Refining Group –Team Lead, Central MDM

Item Master
•250 K Items: Stock and Non Stock, as well as Direct Materials in English plus 2 Languages Spanish and Portuguese,
•300 requesters with 1000 requests monthly across 30 Plants
•6countries in the Americas and Europe and 5 time Zones
•2 SAP systems with real-time integration
•UNSPSC taxonomy and custom Spec Sheets
•Direct as well as indirect materials are processed through integrity. this includes:
•MRO (indirect materials)
•Industrial Supplies (indirect materials)
•Chemicals
•Empty Packaging Materials (Direct Materials –form part of our finished good materials)
•Ingredients (Direct Materials –form part of our finished good materials)
Complex material master data scenario

•Project Initiative:
•Replaced home grown portal CMDM
•Centralized Master Data Management
•Evaluated SAP MDM and other MDM options
•Now live for over 3 years on Verdantis Integrity
•Selected Verdantis for domain expertise, performance, automation and value
Leveraging technology to meet business goals

•Verdantis supported ASR-Group through 3 acquisitions
•Acquisitions in London and Portugal in March 2012 (Tate and Lyle Sugars)
•Brought onboard 40,000 material items into our system
•Verdantis classified and translated into 2 additional languages – Portuguese and Spanish-prior loading to Verdantis Integrity and SAP ECC 6.0
•Acquisition in Canada in November 2013
•Brought onboard 3,000 materials into our system
•Used Harmonize to standardize materials, prior loading to Verdantis Integrity and SAP ECC 6.0
Driving SAP Implementation success with Integrity

Integrity is a data governance solution that supports cross functional collaboration, approval routing, and real-time master data governance and stewardship.
Now live for over 3 years on Verdantis Integrity

Integrity: Driving in data control and driving out duplicates
•There are two ways to a user can initiate creating a Material
–By Entering The manufacturer and part Number
–by describing the material

•User will enter a category description and Integrity will suggest classes

•After selecting a classification Integrity will show the material attributes or characteristics that need to be

•After populating the attribute values and selecting the “Check Duplicates” button Integrity will suggest similar materials under the same classification and it will highlight in green similar attributes

•Integrity will ask the user to select a plant

•In this screen Integrity displays the Basic Data view with a standardized description

•Improved timely material creation across the enterprise serving over 300 users (mostly plant maintenance)
•Eliminated the creation of duplicate materials
•Ensures maintaining of MDM standards globally
•Promotes the reduction of inventory of spare parts by identifying duplicate items and equivalent parts. Also by sharing some common expensive items.
•Supports all locations:
–Ability to change the UI in 3 languages.
–Creates materials with descriptions in 3 languages
•Supports SAP implementations through master data uploads
Benefits of Implementing Integrity at ASR-GROUP

•Determine POV Objectives and Scope
•# of Item Masters and Source Systems
•Select Data Sample
•Select Taxonomy & Attribute Templates
•Verdantis Processes Data
•Fully Classify POV data set
•Fully Cleanse a subset of data
•Non Source Enrich a subset of data
•Flag duplicates for processed Items
•On-site Review of Deliverables
•Data Analysis and Output
•Draft Budget Proposal
•Business Case Recommendations
0
200
400
600
800
1000
1200
1400
1600
1800
0
5
838
1,656
Segment
Family
Class
Commodity
Learn:
•Quality of Data
•Compatibility to automated approach
•Potential duplicate levels
•Estimated budget
•Recommended Scope & Resources
We can help: Verdantis Free Proof of Value

Quality Master Data for Improved Business Performance
Q & A

www.verdantis.com
info@Verdantis.com
Toll Free +1 866 987 4463
Get access to many more research papersand case studies in our
Knowledge hub!
Master Data Management Solutions

Driving SAP upgrade or consolidation success with harmonized material masters

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Driving SAP upgrade or consolidation success with harmonized material masters

Similaire à Driving SAP upgrade or consolidation success with harmonized material masters (20)

Dernier

Dernier (20)

Driving SAP upgrade or consolidation success with harmonized material masters