Session Code: 906 Spotlight on Information Governance and Johnson & Johnson s use of SAP NetWeaver Master Data Management and Global Data Synchronization Terry Bouziotis Global Consumer Data & Analytics Johnson & Johnson Michael Briles Senior Solution Manager Enterprise Information Management SAP Labs LLC Ian McDonald VP & Consumer Industries Director Industry Solutions SAP (UK) Ltd May, 2011
Agenda What is Information Governance How Global Data Synchronization (GDS) plays a role SAP s solution for Master Data Management and GDS Spotlight on Johnson & Johnson s use of SAP NetWeaver MDM / GDS Collaboration on Development (SAP & J&J) Release Information & Roadmap 2011 SAP AG. All rights reserved. 2
What is Information Governance?
What is Information Governance? (Change Definition) Information Governance*, also referred to as Data Governance, is the set of multi-disciplinary structures, policies, procedures, processes and controls implemented to manage information on all media in such a way that it supports an organization's immediate and future regulatory, legal, risk, environmental and operational requirements * Wikipedia So what does that really mean? Why is it important to my business? 2011 SAP AG. All rights reserved. 4
Why is information Governance important? To answer any question or complete any task successfully, you first need information. 2011 SAP AG. All rights reserved. 5
Why is information Governance important? Information is a part of every business process and every transaction Customer Support Design to Production Order-to-Cash Sales Forecasting Pipeline Analysis * Wikipedia 2011 SAP AG. All rights reserved. 6
Why is information Governance important? It is stored in many places in a variety of forms SAP Other Application/ Data Sources Social Media Content Unstructured Content OLAP Servers, Data Warehouses & Marts Web / Internet 2011 SAP AG. All rights reserved. 7
Why is information Governance important? And accessed in many ways Mobile Browsers On Demand Services Dashboard/ Report MS Office Enterprise Portals 2011 SAP AG. All rights reserved. 8
Why is information Governance important? If you can t find the right information when you need it, then your chances of success are low. 2011 SAP AG. All rights reserved. 9
What is Information Governance? Information is growing at an explosive rate Data Doubles Every 18 months 80% of Enterprise Data Is Unstructured Access to Real- Time Data is Critical It s a gold mine. You just have to know where to dig! 2011 SAP AG. All rights reserved. 10
What is Information Governance? So what does Information Governance really mean? 2011 SAP AG. All rights reserved. 11
What is Information Governance? So what does Information Governance really mean? 2011 SAP AG. All rights reserved. 12
What is Information Governance? So what does Information Governance really mean? Order To Cash 2011 SAP AG. All rights reserved. 13
How Global Data Synchronization Plays a Role
Maintaining Product Data Integrity Within a Complex Business Network is Challenging Complex global demand and supply networks require timely, accurate and consistent product coding Product Proliferation High volume, granularity and change frequency Inconsistent and / or inaccurate product information Management and error handling increases costs and complexity Partner Collaboration Inaccurate item information creates errors, increases costs Reconciling product codes slows orders, returns & claims Inconsistent view of shared codes disrupts customer service Emerging Global Standards Retailer mandates driving manufacturer process changes Maintaining consistent data across a global supply network Data synch needs extend to other topics: sustainability, traceability 2011 SAP AG. All rights reserved. 15
Industry data confirm the data management challenge Fortune 1000 enterprises will lose more money in operational inefficiency due to data quality issues than they will spend on data warehouse and CRM initiatives. [Gartner] Data management is challenging throughout the business network 1 15% of organizations rate their data quality as high or very high Only 30% of companies deploy data quality tools to improve the situation 21% of companies say poor data quality costs $10 MM to $100 MM a year; only 14% say costs are less than $1MM a year 13% of companies have 100+ systems storing customer data 11% have over 100+ systems storing product data Top retailers are requiring suppliers to standardize and share data Wal-Mart has a renewed focus to ensure all our trading partners are taking advantage of the efficiencies of Data Synchronization. (2) Sources: 1 The Information Difference, June 2008; 2 Letter to suppliers from Wal-mart posted on 1SYNC website http://www.1sync.org/home.html 2011 SAP AG. All rights reserved. 16
What is the solution Global Data Synchronization The standardized exchange of product information from a manufacturer to a retailer via one common network, the Global Data Synchronization Network Benefits of the GDS Network Smoother and quicker business processes Improved accuracy of orders Fewer forms to fill out Data Pool Fewer duplicate systems and processes A proven way to drive unnecessary costs out of the supply chain Price Synchronization with Retailers Global Regist ry SYNCHRONIZATION Data Pool 2011 SAP AG. All rights reserved. 17
SAP s Solution for Master Data Management and Global Data Synchronization
SAP Master Data Management Integrated Solution to Address Every Customer Landscape Data Services Enterprise Content Mgmt Master Data Management Information Governance Data Warehousing Event Processing Enterprise MDM Solutions Product Supplier Customer Financials Embedded MDM Enterprise MDM solution to manage trusted product, customer, supplier master data and global data synchronization Embedded MDM solution to enable master data governance within the SAP Business Suite Data Int. & Quality Foundation Workflow & Services User Interfaces Pre-packaged IT and business solutions Compose cross-application processes in SOA with consistent master data Consolidate, harmonize, and centrally manage master data of SAP and heterogeneous environments SAP 2011 AG SAP 2011 AG. All rights reserved. // Page 19
GDS Process - How It Works! Load SAP ERP material data Create trade items Enhance GDS relevant info Register Trade Items Publish to trading partners SAP NetWeaver GDS Console Subscribe and Synchronize data pools MDM Global Registry PI Data Pool Data Pool GDSN Retailer CP Manufacturer 2011 SAP AG. All rights reserved. 20
Spotlight on Johnson & Johnson s use of SAP NetWeaver MDM / GDS
Johnson & Johnson Consumer Products Master Data Management Terry Bouziotis Johnson & Johnson Consumer Companies
Who we are... Johnson & Johnson s family of companies comprises the world s: Premier consumer health company Largest and most diverse medical devices and diagnostics company Sixth-largest pharmaceuticals company Employs over 114,000 people worldwide Consists of more than 250 unique operating companies Operates in 60 countries worldwide Sells products in more than 175 countries Johnson & Johnson Consumer Companies 23
Background Single instance of SAP NW MDM 7.1 servicing J&J Consumer Companies Globally Direct interfaces with 5 Primary SAP R/3 instances Data feeds from multiple non-core ERP and non-sap systems Two repositories in production Customer (~350K records) Product (~225K Records) Currently running GDS version 2.1 Multiple countries live in EMEA, Latin America and North America Johnson & Johnson Consumer Companies 24
J&J Consumer MDM Business Value Drivers Examples of Business Value & Services Delivered Full visibility of Customer and Finished Products across J&J Consumer through the establishment of direct connections with regional ERP systems and SAP MDM SAP MDM platform on latest version to take advantage of Vista compliance, improved performance, and enhanced data modeling capability Management of enterprise customer hierarchy for Consumer for improved data quality Management of product linkages to corporate product hierarchy Investigating cross-sector usage of existing SAP MDM Consumer platform General Rule of Thumb: Unless Data is needed in ERP for: Transaction processing Operational reporting Compliance Leverage MDM to house and manage this data eg CPSIA, GDS attributes, etc Johnson & Johnson Consumer Companies
Business Ready Master Data Enterprise data Standards procedural alignment J&J Consumer MDM Landscape Current Business Data Owners Product Repository Trade Item Repository Customer Repository Master Data Transaction Data Global Sales Reporting Spend Analytics North America EMEA Meta data Standards procedural alignment Rochade MD std setup 26 ASPAC LATAM Meta data Standards procedural alignment Johnson & Johnson Consumer Companies
Foundation Evolution Consumer MDM Scenarios CONSOLIDATION REGISTRY COEXISTENCE TRANSACTION Central MD Central MD Central MD Central MD MD Golden view Global ID Virtual view MD Skeleton Virtual repository MD central Repository MD central Repository MD Transactional data Data WH MD Transactional data Data WH MD Transactional data Data WH Transactional data Data WH Transactional System BI Transactional System BI Transactional System BI Transactional System BI Transactional Systems Analytical Systems Transactional Systems Analytical Systems Transactional Systems Analytical Systems Transactional Systems Analytical Systems The consolidation style of MDM architecture has a physically instantiated, golden record single view of master data stored in the central hub. This usually supports reporting; however, it can also be used for reference operationally. If used for reporting, it may be referred to as a downstream system of reference for reporting needs It consists mainly of metadata with small amounts of master data, such as a global identifier. It is a relatively lightweight and non-invasive approach. For creating an accurate, consistent and up-to-date single view of master data. Typically faster and easier to implement For enterprise it needs greater governance. It doesn t fix data-quality problems in the source systems and depends on their availability at runtime. MD is authored and stored in numerous locations, but includes a physically instantiated golden record in the central location and harmonized master data across the enterprise applications. The golden record is constructed in the same manner as the consolidation style Often consolidation-style evolves into the coexistence style. It is a central MDM system publishing selected master data out to the subscribing enterprise systems Central MDM system hosts a central, physically instantiated version of the MD. Transactional applications can read and write master data to the new MDM system. This style often evolves from the consolidation and coexistence styles. In a similar way, it physically instantiates a golden record single view of master data in the central database. The key difference is that the master data is authored in the center 27 Johnson & Johnson Consumer Companies
CPSIA Leveraging the SAP MDM Foundation Solution Advantages: No need to customize SAP ECC for the 75-100 attributes required (mainly address information) SAP MDM contained all US Finished Products Role based security to restrict access to data SAP EP Portal / Adobe Flex user interface for web based data management SAP ECC 6.0 Material Master BOMs SAP MDM 7.1 SP6 Product Customer ELMO Technical Activities Enhanced integration between SAP ECC 6.0 to import Sales BOMs into SAP MDM Custom UI developed in Adobe Flex to facilitate data entry Certificate data syndicated to ELMO system to generate PDF renditions of certificate Business rule and data validations built into the SAP MDM solution SAP EP Portal Adobe Flex Key Wins Single Source of Truth for all CPSIA certificate data (SAP MDM) Workflow notifications to users when new products require certificate Opens SAP MDM to a new user base (Packaging, QA) Provides syndicated data to ELMO, Transaction Data which allows retailers to retrieve certificates on demand Aligned with our data strategy 28 Johnson & Johnson Consumer Companies
Global Data Synchronization Data Synchronization The ability to send product information electronically to our trading partners in a standardized way for all trading partners Customer: It enables the accuracy of data our retailers use for their business processes Information exchange will enrich EDI commercial transactions Continuous flow of product data to our customers Data sync for future initiatives in sustainability, compliance and product safety Johnson & Johnson Consumer Companies 29
SAP XI SAP XI webmethods Conceptual Global GDS Solution SAP (EAME) SAP (US) 1SYNC Retailers SAP MDM SAP GDS 1SYNC Data Pool Local Data Pool(s) Other Retailers SAP (LatAm) SAP (Asia Pacific) Johnson & Johnson Consumer Companies 30
SAP GDS 2.1 Experience Key automation features critical for the US implementation Full integration with MDM enabling quicker time to market for new countries and regions Multiple improvements in usability features throughout the application Implementation of end state integration architecture Functionality for GS1 MR4 release Johnson & Johnson Consumer Companies 31
SAP Partnership SAP MDM Influence Council J&J Consumer is an active member Multiple requirements already delivered with more on the way Extensive knowledge sharing and networking with other SAP customers SAP GDS Participated in initial designs and all 3 ramp up programs for GDS SAP MDM and SAP GDS Integration Master Data Governance Providing input and requirements to upcoming MDG capabilities Johnson & Johnson Consumer Companies 32
Collaborative Development of SAP NetWeaver MDM / GDS
Collaboration Highlights Johnson & Johnson actively contributed content into the development of the solution Direct line into SAP development team Access to Johnson and Johnson content experts Regular sprint reviews to evaluate solution in progress Collaborating to address gaps What is needed vs what can be delivered Open communication on all levels from implementation team to executive management Addressing everything from technical details via process optimization to organizational set-ups Extending and continuing the collaboration into the broader MDM/MDG topic 2011 SAP AG. All rights reserved. Internal 34
Release Information & Roadmap
Solution Today for Consumer Products Overview Key Needs Innovation Highlight Release Extract and Enrich Ensure Data Quality Exchange Establishing and maintaining a global framework for consistent data management Enforcing global data standards Enabling compliant standards for data exchange and business partner collaboration Inconsistent, non-compliant processes for local exceptions and error reconciliation Lack of standards for product data updates, attributes and properties increases inconsistencies & errors Inability to spot data errors and process breaks Manual, inefficient labor-intensive processes for exception management and validation Inability to measure data quality KPIs and targets = inability to assess costs of errors Predefined GS1 content Certified Solution Price exchange End-to-end solution Backend extractors Default values Automation P2P catalogue exchange Change tracking Approval processes Data quality framework with predefined rules Manual/role based/automated rule enforcement Enhanced cross application process logging Event based workflows Role based access API to SAP BI SOLUTION TODAY SAP NW MDM GDS 2.0/2.1 SAP ERP >4.6c SP50 SAP NW MDM GDS 2.0/2.1 SAP ERP >4.6c SP50 SAP NW MDM GDS 2.0/2.1 SAP ERP >4.6c SP50 2011 SAP AG. All rights reserved. Internal 36
SAP NetWeaver MDM global data synchronization Addressing the next generation GS1 standard SAP enables GS1 standards compliance while improving usability, extending automation of processes, traceability, cross-functional process integration and adding use cases Solution Enhancements Support of GS1 MR5 Adapt to NW 7.3 and further integration of NW MDM technology stack Enhance P2P catalogue exchange capabilities Further increase profiling of trade partners Extend price sync capabilities Add configuration flexibility to data inbound and handling Further embed into SAP solution portfolio Key Benefits Compliance to next GDSN standard, Tighten the integration with other MDM use cases and SAP applications Increase scope of GDS to incorporate broader base of trade partners Extending automation capabilities Reduce efforts and implementation costs Improve use of existing master data Extend GDS use case PLANNED INNOVATIONS 2011 SAP AG. All rights reserved. Internal 37
Thank You! Contact information: Michael J Briles Senior Solution Manager Enterprise Information Management E-mail: michael.briles@sap.com Ina Mutschelknaus Senior Solution Manager Information Governance E-mail: ina.mutschelknaus@sap.com