application data management - adsotech · application data management is a technology-enabled...
TRANSCRIPT
Application Data ManagementEmpower business teams to get the data right
Run by 2000+ SAP customers
Content
1. The beginning – Trends impacting business today2. Data Governance and Data Stewardship3. MDM versus ADM4. ADM Technology Capabilities5. Product demonstrations Winshuttle6. ADM Adoption in the Enterprise7. Winshuttle and Adsotech presentation8. Summary and conclusions9. Lunch and networking
Trends Impacting Business Today
• Digital transformation
• Big Data
• Real time Analytics
• Data as a Strategic Asset
DATAis becoming a strategic asset that needs to be managed by the business and not by IT
Decisions
Operations
Inaccurate or
incomplete
Data Growth
25%ERP System
Importance of Data Management
Tax over time
Data Mgt.
“TAX”
Delays/
Errors
Speed/
Accuracy
Indirect CostsDirect Costs
How is data dirty entering the ERP system?
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00%
Dont Know
None
Other
Innacurate Data
Data entered into incorrect field
Typos
Duplicate Data
Outdated Information (not current)
Spelling Mistakes
Incomplete or missing data
Common data errors in customer/prospect/citizen data
What are the reasons to keep clean data?
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00%
We don't have a data quality strategy
None
Don't know
Other
To help the environment
Reduction of risk /fraud
To crate a single customer view
Compliance with industry /government legislation
To enable more informed decisions
To capitalise onmarket opputunities through customer profiling
Enhancement of customer /citizen satisfaction
Protection of organisation's reputation and brand
Increased efficiency
Cost Savings
Reasons for maintaining high quality records
Data Governance and Data Stewardship
1. Definition of Data Governance and Stewardship
2. The role of the Data Steward
3. Enforcement of Data Governance
4. The role of the CDO
5. Discussion
Data Governance and Data Stewardship
“Data Governance is the process
of implementing policies and
procedures that regulate the
creation, updating and deletion of
data assets throughout the
enterprise.”
“Data Stewardship is the
enforcement of the established
data governance policies.”
Data Governance and Data Stewardship
• (RDMS, ERP)
Structured Data
• (data marts)
Semi Structured Data
• (emails, social media web, etc)
Unstructured Data
Glossary of Terms - Common Business Terms ( Customer, Ship-to Address, Payment
Term)
Standards - Length, format, permissible values, Uniqueness, Name in Database
Rules - Calculation, Creation, Archiving, Validity, Usage in different applications
Data Governance and Data Stewardship
• Data preparation
• Data creation
• Data change
Maybe several Data Stewards in an organization, each
responsible for certain parts of the Application data as well as
Master Data
Maybe a full time responsibility or a part time responsibility
Typically based in business departments
Data Stewards do not draft policies, they execute them
If there is not a clearly defined ownership of data, it will
probably gradually result in degradation of data quality.
Data Governance Enforcement
Data Governance Enforcement can be implemented in a variety of ways:
• Manual enforcement by assigning people to roles such as Data Stewards
• Built it into ERP systems
• Reactive Governance
• Proactive Governance
By 2019, 90% of large organizations will have a Chief Data Officer.
Data Governance and Data Stewardship
Infrastructure and Applications
CIOCDO
Development of Data Governace and Stewardship processes
Data Governance and Data Stewardship
CDO
Digital transformation
Big Data Trends
Enterprise wide governance
Utilization of information
as an asset
Data Governance and Data Stewardship
Do you have
CDO?
Data Stewards?
Has the Data Governance been clearly defined?
How do you plan to tackle these topics?
MDM versus ADM
MDM versus ADM
Gartner and Wikipedia definitions
Trains and buses
Discussion about the differences and similarities
MDM according to Wikipedia
“In business, master data management (MDM) comprises the processes, governance, policies, standards and tools that consistently define and manage the critical data of an organization to provide a single point of reference.”
“Enterprise Master Data is the single source of common business data used across all systems, applications, and processes for an entire enterprise (all departments, divisions, companies, and countries).”
MDM according to Gartner“There is a great confusion in the market about what to store and govern in an MDM solution. Too
often we hear examples of successful MDM programs drowning in too much data as
more and more application data data is moved to the MDM “hub” since it seemed to provide an effective means to govern data.”
“The reality is that MDM solutions are designed and optimized to work flexibly with any number of applications for which the MDM data model is application neutral.”
“A solution designed and optimized to govern data for a specific, known business application would not be the same – indeed it’s data model would be identical to the target application.”
“Armed with this knowledge, we see a slow shift and recognition by users that MDM solutions should be used to govern master data outside of and independent of the application - business applications and application data management (ADM) solutions should be
used to govern data for known target business applications”
Managing things
Aquatic Animals Terrestrial AnimalsAmphibians
?
How to handle Master Data?
Master data Transactional dataApplication data
?MDM ERP
Supplier
Control/Governance Speed / Flexibility
Vendor Info Record
How to distinguish between MDM and ADM
Data Governance Standards & Policies
Master Data Management
Application Data Management
MDM is the Hub ERP is the Hub
Centralized Decentralized
Select master data All application data
Application neutral Application specific
IT-Driven Business-Driven
ADM
90% ERP Data
MDM10% ERP
Data
ADM is hub-less MDM
Source: Gartner
Co
ntr
ol
Spee
d /
Fle
xib
ility
MDM vs ADM
Both are business-led, IT-enabled discipline whereby an organizations seeks to govern and steward consistent:
- Andrew White, Gartner
MDM• master data across core business processes and systems. In this case, to
keep things simple, master data (is business metadata) are things like “customer” or “product” or “hierarchy” etc.
ADM• application data for use in a specific application or suite of
applications.Application data in this case concerns all the data stored and used by that application or suite.
MDM vs ADM data examples
Master DataShared across many different applications
Material numberDescriptionUnit of Measure
Material VendorCustomer
Application DataUsed only be a specific application
Storage binRoutingsClassificationsForecast parameters
Payment termsInfo recordsPurchasing organization
Customer numberDNS numberNameAddress
Bank detailsInfo recordsSales organization
Vendor numberDNS numberNameAddress
What is ADM - Conclusion
Application data management is a technology-enabled discipline designed to help users govern and steward the application (reference) data required to operate specific business applications, such as CRM, ERP or supply chain planning. Such data may include master data — even if there is a separate master data management (MDM) solution. It is implemented within the context of the specific application or suite, so typically it uses the same persistent data and data model. –Gartner 2016
ADM Technology Capabilities
Enterprise Information Management Tools
ETL (Extract Transfer and Load
DQ (Data Quality Tools)
Business Process Management Tools (workflows)
Low code development platforms (Excel based tools)
Analytics and Dashboards
Security and Governance
Trains and buses
PROS
• Carry more passengers• Advanced services (extra luggage, coffee kiosks)
CONS
• Big investment in infrastructure• Time-consuming• Requires a broad range of specialized skills• Can’t easily be modified or added to
Trains
PROS
• Affordable• Implemented immediately • Very flexible• Can serve all areas of a city• Easy to reroute
BusesCONS
• Fewer passengers
• Combo of trains & buses• Train line between major hubs • Reach outside of the main hubs
with network of buses
Long Term Strategy
ProcessOwnership
Centralized
Decentralized
ProcessMaturity
Ill-defined Well-defined
Balancing control, flexibility and speed in Data Management.
Fast and FlexibleSAP Data Management
MDM
Manual
”It is not about one tool being better than the other... We wanted autonomy for the business.”
Winshuttle Usage within ADM Areas
Data Management tools for SAP professionals
•Mass loads and mass changes to SAP application data
•Mass upload of transactional data
•Data Cleansing Processes
Simplifying the SAP End-User Experience
•Data Entry Simplification for End-Users
Business Process Innovation - Workflows
• Improve SAP and other business processes
• Overhaul old legacy MDM, SC, SD, FICO and HR transactional systems
Proactive
StrategicReactive
Excel based
Winshuttle
solution
Webforms based
Winshuttle
solution
Proactive
Excel based
process
automation
Winshuttle Overview
MDM HUB[SAP MDG]
OtherApplications
Data
Data
Decisions
Operations
ERP System
Time savings: 80 to 95%Quality Improvement
Process efficiency (50% shortened cycle)Governance
Developer Runner
Record
Map
Run
Benefits of Excel-SAP integration
T-Code T-Code Description Number of Customers Processing time saved by
automation
MM02 Change Material 751 86,5 %
MM01 Create Material 630 88,2 %
XD02 Customer Change 440 79,8 %
VK11 Create Condition Records 408 78,6 %
XK02 Vendor Change 392 86,7 %
XD01 Customer Create 341 93,6 %
XK01 Vendor Create 287 89,9 %
VK12 Change Condition Records 242 77,8 %
KS02 Change Cost Centre 178 74,6 %
KS01 Create Cost Centre 177 94,0 %
Workflow for data collection and approvals
New vendor request
Manager reviews
Upload to SAP
Accounting adds data
Example of customer who has reduced time for NPI
Food packaging - 11,000 employees - Revenue: $10 billion
Before
28 days for PCR
Now
14 days for PCR
Increasing Revenue
Master Data-related cost savings
ABB in Finland saved more than 6 months
during the first six months data cleansing
Stora Enso saved several months in the first factories
reorganization project
Outotec added all of an acquired company's
SAP employees data in 2 days
Statoil saved in 2016 over
110 000 hours by using Winshuttle products in various business units
(average saving 7300 h/ user per annum)
Master and Application Data related cost savings
Master Data-related cost savings
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
16 000 000
18 000 000
20 000 000
XD02 -
Customer
Change
VK11 - Create
Condition
Records
VD02 -
Customer
Change (Sales)
IE01 - Create
Equipment
IL02 - Change
Functional
Location
MM01 - Create
Material
MM02 - Change
Material
VK12 - Change
Condition
Records
MM42 - Change
Material &
ME12 - Change
Purchasing Info
Record
ME11 - Create
Purchasing Info
Record
Days saved vs Transactions processed
Transactions Processed H1 2016 Days Saved H1 2016
Master data management time consuming
Heavily relied on SAP business analysts
Linked scripts for MM01, MM02, CS01, CS02, & CA02
2 hours to 2 minutes
GBS Global Data Services productivity trends
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015
GBS Customer Data Maintenance
Transaction Volume Total Service Cost
Cost per Transaction
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015
GBS Material Data Maintenance
Transaction Volume Total Service Cost
Cost per Transaction
Customer Data
Maintenance 2009 -
2015
Transaction Volume 1 %
Total Service Cost -76 %
Cost per Transaction -79 %
Material Data
Maintenance 2009 -
2015
Transaction Volume 45 %
Total Service Cost -34 %
Cost per Transaction -58 %
Excel based Solutions
Excel based Workflows
Forms based Workflows
Demo
ADM Adoption in the Enterprise
ADM Adoption in the Enterprise
ADM Stages and Maturity
Key ADM activities and users
Customer Case
Transitional
Master Data Market
Master Data Maturity
Standardized processes and
platforms
No or few common
processes or
platforms
Organizational focus on master dataTactical Strategic
Mature
Tribal
Developmental
Reactive
Established
Optimized
Desktop
Workgroup
Enterprise
Organisational focus
Organisational
maturity
Tactical/Reactive Strategic/Proactive
ADM Vision – Key Capabilities & Benefits
Who What Benefit
Chief Data OfficerBuild data governance rules &
processes around ERP data
Improved confidence in data
and ability to participate in
digital business
Process ownersImprove data intensive
business processesImprove cycle time & velocity
Business analysts and solution
developers
Rapidly build data management
and data quality apps – batch
or real-time
Reduce dependence on
strained IT resources
Data stewardsKeep ERP data clean and up-
to-date
Uninterrupted business
operations
Business Users Enter ERP dataAdd real business knowledge
into the ERP
• New Product introduction 1500 material in a year
Customer Case:Consumer products Manufacturing Company
• 2000 secondary materials and material closing
• 200 people were involved in process
Indirect CostsDirect Costs
Data input:5 and a quarter hours (315 minutes) per new material.
Average time to process new material = 8 weeksAverage time for Material to get ready for Sales Planning = 4-5 weeks
MDM core team needed 3 days in month to report on status material creation
Dirty data: Significant but unmeasured negative impact to operations
Almost same number of materials needed to be closed annually.
Lots of unclosed material in the sytem as it took months to close material manually, some times a year.
Customer Case:Consumer products Manufacturing Company
Ownership Data Governance and Data Stewardship
Ownership
Project was initiated, approved and Governed by Supply Chain Organization.
Data related roles
Head of Product Master Data department is overall responsible of Data Governance.
Most of the Key users of solution are business side SAP experts who are Part time Data Stewards – they maintain business rules in solutions data their own area (Warehouse, APO, Purchase, etc. ) that allows automation and eliminates errors.
Key user also specified requirements and data model with Adsotech.
Project
IT run implementation project together with Adsotech.
Adsotech developed first solutions, now we are doing knowledge transformation on workflow development and co-operative development for additional material types.
Customer Case:Consumer products Manufacturing Company
Solution Overview
1. PLM –system creates core of SAP-master data
SAP MM
basic
Data
2. ADM-solution finds new material number and automaically starts workflow
3. Form is sent to all stakeholders to collect data controlled by workflow
4. Each paticipating team creates data using their own SAP accout.
DataSteward1
DataSteward2
DataSteward3
DataSteward4
5. As end result full SAP Material is created. Seperate notification is send when product is ready for Sales planning.
100 % SAP ERP Data
Customer Case:Consumer products Manufacturing Company
Results
Customer Case:Consumer products Manufacturing Company
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00%
We don't have a data quality strategy
None
Don't know
Other
To help the environment
Reduction of risk /fraud
To crate a single customer view
Compliance with industry /government legislation
To enable more informed decisions
To capitalise onmarket opputunities through customer profiling
Enhancement of customer /citizen satisfaction
Protection of organisation's reputation and brand
Increased efficiency
Cost Savings
Reasons for maintaining high quality records
Increase efficiency?Reduced workforce involved in process from 200 to 30, which meant 170 could be reassigned to other tasks.
Enhance customer satisfaction?Approx. 300 fields are updated, 85% of these are automatically filled based on form.
Enable more informed decisions?Instant reporting on status of material creation and bottlenecks
Cost/time savings?Reduced errors meant less time correcting errors.No mass mailings as notifications sent to correct teams at the correct time.Approval task for automated closing means materials are closed in one day.
Capitalise on market opportunities?”Ready for Sales” Planning time reduced from 4 weeks to 1 or 2 Weeks
Starting your Winshuttle journey
Installation
• Desktop software
• SAP functional module
Training
• 2-3 days onsite
• Exercises in your system
• Your use cases
Execution
• Launch first solutions
• Expand to new use cases
1 Week
Presented by:
1985
2000
2005
2016
today
Adsotech formed
SAP products
Winshuttle
80+ Winshuttle customers
FinlandSwedenDenmark Norway
6
4
Customers 1600 World wide
Thank you Visit winshuttle.com or Adsotech.com for more information.