Medtronic: Managing Customer Master Data Integration to Build a Singular and Authoritative View of Customers. Himanshu Mishra

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1 Medtronic: Managing Customer Master Data Integration to Build a Singular and Authoritative View of Customers Himanshu Mishra

2 Agenda 1. Medtronic and SAP NetWeaver MDM 1.1. About Medtronic 1.2. MDM Project Drivers 1.3. Master Data Implementation Planning and Project Team Structure 1.4. Medtronic Customer Master Landscape 1.5. MDM Vision Customer Master 1.6. Data Maturity 1.7. Enterprise Data Stewardship 1.8. Application Architecture 1.9. Third Party Data Enrichment Centralization Process Flow Challenges Lessons Learned 1.14.MDM Initiatives 3. Demo 4. Questions and Answers

3 Medtronic: History and Background Founded in 1949 as a medical equipment service company First external wearable pacemaker Expanded into implantable technology, other devices for chronic diseases Today: 7 business lines, Revenue: 13.5B (FY08) Beyond Innovation Changing the Way the World Manages Chronic Disease

4 Medtronic Today Treating Many Chronic Conditions Cardiac Rhythm Disorders Cardiovascular Disease Spinal Conditions and Musculoskeletal Trauma Neurological Disorders Urological and Digestive Disorders Diabetes Ear, Nose and Throat Conditions World s Largest Independent Medical Technology Company

5 Definition What is Master Data Management? Key tenets Master data describe the key business entities of an enterprise High quality master data is the foundation of efficient business process execution and well-founded business decisions Master Data Management provides competitive differentiation and is a requirement for enterprise SOA initiatives Definitions Master Data Is the key entity to defining core business entities such as customer, employee, location, product etc. Is static, non-transactional, constant Interacts with and is referenced by transactional data Is highly shared across several applications Has a definition independent of other data (ASUG Influence council) EMPLOYEE PRODUCT MDM SUPPLIER CUSTOMER Master Data Management Is the practice of defining and maintaining consistent definitions of master data, then sharing them via integration techniques across multiple IT systems within an enterprise (TDWI MDM research)

6 Customer Data Integration One View of Customer Information Anytime Anywhere our focus Jane Peters Smith Analysis 4418 North St. Chicago, IL Jane Smith 4418 N. Str. Chicago, IL Jane Peters 199, 3 rd Street Palo Alto, CA Extensive matching framework Provides web services to customer data access SAP & Non-SAP integration SAP 2008 / Page 6

7 Project Drivers Business Challenges More Complex Business Relationship The Physician Payments Sunshine Act Legislation Information Challenges No Single version of Customer Master Data Ongoing Acquisitions Operational Silos and lack of ownership Customer Master CDI Hub Heterogeneity of operational IT applications and data fragmentation Lack of data standardization and consistency No "closed loop" between operational and analytical

8 Master Data Implementation Planning and Project Team Structure Data Quality Master Data Management Improve data quality in steps Release1 Consolidatio n Release2 Harmonizati on Future Release Centr al MDM Time CONSOLIDATION Establish a unified view on master data originating from various sources HARMONIZATION Cleanse and distribute across entire landscape CENTRAL MDM Create consistent master data from the start centrally

9 Implementation Continuum Customer Master Process Management Customer Data Synchronization Customer Data Council Define Enterprise Customer Data Model Need for MDM/ CDI Solution Evaluate MDM Technology Plan Data Consolidation MDM/ CDI Workshop Introduce Data Governance Build Global Data Model Extract, Standardize and Load Source Records Provide an environment to manage de-deduplication across systems Third Party Data Enrichment Enrich Source Data Define Process for Source System Merge Merge Records in Source Systems Define System of Records for Entity Type Build Customer Relationship based on Third Party Load Customer Affiliations Manage Customer Data De-duplication Provide Unique Customer Master Information to downstream applications Provide Customer Master Relationship to Reporting application Controlled access in Source System Centralized Management of Customer Data Creation Process Seamless Integration of Source Systems and Data Quality Tools with MDM Transactional applications built on top of customer definition across sources Manage business process associated with customer data/ transaction management

10 Customer Master Landscape - Today Controlled Data Entry Less Controlled Data Entry LA/PR Can Single point of entry CV Neuro CRDM RDA* (SHV) ENT/NT Spinal * Americas Regional Data Admin team DRS Device Registration Implanting physician Referring physician Patient Expense Report Physician Spend Text-only customer names CRDM Multiple points of entry Neuro Spinal DART Multiple points of entry SAP R/3 Customer & Vendor Data Customer Vendor data DIH Siebel Contacts SAP Accounts Siebel Account & Contact Data Vendors Types: Sold-to Ship-to Bill-to Payer Vendors:Contract Types: Accounts (from SAP) Contacts Customer Categories Organizations People ecats Physician Contracts EDW Hospital Buying Group Clinic Physician Patient Researcher Reporting Medical Practice Corporations Prospect KOL Government/ Municipalities Student/Intern

11 Why do we need MDM for Customer Data? Customer = Any person, other than an individual patient, including, without limitation, any medical or health care professional or entity in a position to purchase, lease, recommend, use, influence or arrange for the purchase or lease of, or prescribe Medtronic products. Encompasses: Physician, Contact, Key Opinion Leader, Researcher, Prospect, Subscriber, Student/Intern, Hospital, Clinic, Buying Group, Medical Practice, Business Entity, etc. Medtronic Customer Master data management landscape characterized by: Multiple Systems. There are many different systems used across Medtronic to manage various interactions with customers Duplicate Records. Contact records (referring physicians, patients, consultants, clinical study leads, etc.) are entered and spread across all these different systems, creating duplicate records for the same contact Weak and Varied Standards & SOPs. Weak standards and varied data entry practices are obstacles to preventing duplicates and relating all valid separate records for a single customer We need Master Data Management (People, Processes, & Technology) to enable 360 degree view, use and reportability of all interactions with an individual customer to support all functional needs across sales, marketing, compliance, etc.

12 MDM-CM Project Urgent Business Driver: Physician Arrangements Tracking Physician spend tracking and reporting (aka, CIA) MDM-CM Project Objectives: Provide a data hub Enable expense tracking to Unique IDs Store customer master affiliation Duplicate check for new Customer Request Key Scope Notes: No customer creation / maintenance in MDM No patient records in MDM

13 MDM Vision - Customer Data Mgmt Portals & Dashboards Siebel SAP Transactional Data Warehouse MDM Multiple customer records linked through MDM DRS John Stanton-Smith Expense Reporting Single Best Customer Record assigned a unique ID that relates all valid separate records

14 Medtronic MDM Process and Technology People Governance Structure Executive Governance Committee CM Data Council Standards Working Group CM Stewards & Administrators Data Process Create new customer Maintain customer Global change process Standards Timely-Accurate-Consistent - Data Standards - Quality Metrics - Cleansing - Controls Technology Central repository Data Quality & Stds check Match/Merge & Unique ID Process/governance tools

15 Data Maturity Roadmap Increasing Maturity of CDI Optimized Unaware Isolated Customer Records in Source Aware Duplicate Exists in Source Systems Reactive Identity duplicate customers Enterprise Data Standard Proactive Build Control in the Source System Global LOV Merge Records Managed A unifying vision emerges Centralized Master Data Management MDM is the way we do things around here Managing master data as an asset Continuing to learn and improve Level of CDI Maturity

16 MDM Application Architecture Expense Reporting PI Customer Information Unique identifier for Source Records Best Record and Best Address Customer Affiliation Siebel SAP VM SAP CM Oracle Fusion/ Siebel WebService Informatica WSII Web Service SAP MDM PI MDM Maintenance Cleansing De-Duping Matching UID Assignment Best Record Best Address Informatica Global Business Partner Elements Unique Global ID CIA Reporting SAP MM PI Informatica First Logic Integration CBSA Score Aggregate Physician spend Enhanced data enables (one source of truth, consistent, accurate)

17 Third Party Data Enrichment Architecture

18 Centralization: New Contact Request Process Sales Rep logs into application Create Expense Report Customer Record not found Submit a Request for New Contact SOA Application Website Notification to Integrated Stewards Portals Compare Records and Take Action Identify Potential Duplicates Review New Contact Request Create Contact in Siebel SOA Siebel Web Service Reject Expense Express Request with valid reason Create Record in Siebel Manually and update Siebel Row ID in Request SIEBEL Creates new contact in Siebel

19 High-Level Process Flow CRM Siebel MDM Assign Siebel Potential Match Relationship Siebel Merge Siebel Steward by BU Assign Across System Sibling Relationships CP SAP Integrated Steward Assign Unique ID and Best Record Expense Reporting Data Hub Enterprise Reporting

20 MDM Matching and Relating Source Stewards perform the following in MDM: Review customer records for entries that do not conform to data standards Search and flag duplicate customer records within their Source Integrated Team Stewards perform the following in MDM: Relate sibling records for the same person from across systems Assign a Medtronic Unique ID to the one or more records that represent a single person or entity Select a best record that is the most complete and accurate for a particular person or entity Identify a best address for a Best Record Should be related Should not be related Lowest possible score Don t link Manual review Link Highest possible score Lowest threshold Upper threshold

21 Key Challenges Existing Customer Master Data Variety of data models Customer structures are not consistent across Source Systems Duplicate data Duplicate data exists in customer and address records in Source System Duplicate data exists in one system and also across system Process Data entered casually from many sources Multiple points of data integration No proper duplicate check Lack of consistency in approach to data modeling Need for data governance, stewardship, and information quality strategy Data Governance & Standards MDM Tool and Technology External Data Providers MDM Tool integration With Data Quality New Customer & Relationship Centric Business Processes Customer Identification, Correlation & Grouping Data Acquisition, Distribution & Synchronization Information Quality CDI Consuming Applications Data Enrichment Service Oriented Architecture Data Standards

22 Lessons Learned Customer data quality is more about enterprise wide consensus and process than technology. Review your organization's capabilities and challenges in creating and using a single view of customer record Issues impacting data were people, processes and tools Established goals and scope What are we solving for? Adopted a phased approach Don t boil the ocean Beware of Scope Creep - Data/ System/ Process Initial Data De-duplication Involve Data Stewards, Business Units Leverage Third Party Changes to legacy systems and applications to support enterprise wide data standards Apply best practices for data governance and change management

23 MDM-IT Key Initiatives Customer Master FY09 SAP SBL MiniMed Expense Express Sales Structure Mapinfo Server MDM DIH SAP R/3 FY10 Product Master DART Portrait Focus 360 etc

24

25 Same Source Match and Relate Process Source: IFO/ Siebel Contact: Contact: Execute Matching Strategy Relate Records Choose Parent (Survival) Download File for Merge Source: SAP CP Sold To: Sold To: Execute Matching Strategy Data Stewards communication Relate Records

26 Across Systems (Different Sources) Match and Relate Process Unique ID, Best Flag and Best Record Source: IFO Contact: Source: SAP CP Sold To: Vendor: Execute Matching Strategy Relate Records Assign UID Choose Best Record Source: SAP MM Customer : Choose Best Address Vendor :

27 Record:

28 Record:

29 Record:

30 Record:

31 Record:

32 Physician Payments Sunshine Act: Basics Requires manufacturers to submit reports to HHS disclosing a wide range of payments made directly or indirectly to physicians. Threshold is $25 Fairly broad set of state laws or regulations relating to reporting and disclosure requirements of drug and device manufacturers Applies to reporting or disclosure requirements regarding payments or other transfer of value to physicians Payments of all sizes and types The Physician Payments Sunshine Act Legislation

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