combining innovative solutions with a collaborative approach

_TechnOLOGIeS

CAMELOTITLABCuSTOMERSuCCESSSTORy

_PrODucTS & SOLuTIOnS _SAP APPLIcATIOnS

Global Material Master Data Management at Merck

Merckhasemphasizedandgivenprioritytoglobalmaster

datainasignificantexcellenceprogram.Managementex-

ecutiveshaveidentifiedtheneedtoestablishcorporate-wide

standards–“onecommonlanguage”–whenmoreefficiency

andagilityisrequiredforprocessmanagement“inthedigi-

tizingbusinessprocessworld”.Toaddressthesestrategic

objectives,theexecutiveboarddevelopeditsglobalmaster

datamanagementvision–reachingoutforexcellenceinall

areasofcorporateMDM.Consequentlyaholistictransfor-

mationprogramhasbeenlaunchedcoveringMDMstrategy,

organization,governance,processes,dataqualityand

technology.

FromInnovationstoSolutions.

“Only with correct and reliable data can an organization have the necessary transparency to fully understand developments in the business, provide supe-rior service, and make the right decisions to drive a successful strategy.”

karl-Ludwig kleyChairmanoftheExecutiveBoard,

Merck

Statement

CAMELOTITLABCuSTOMERSuCCESSSTORy

Global Material Master Data Management at MerckCombining innovative solutions with a collaborative approach

MDM strategy Definecorporate MDM strategy andimplementationroadmap

Module 1 Buildthebasicsandimprovethe technological basis / -platform

1

Module 2 Enhancecapabilitiesandalign processesandorganization

2

Module 3 DeliverMDMexcellencebytrackingdata quality andremovingremainingtechnicalrestrictions

3

Module 4 LeverageglobalMDMbenefitsincludinglocal attributesandrolling out globally harmonized concepts

4

The project approach

InafirststepanMDMstrategyprojectwasconductedby

MercktogetherwithCamelotconsultants.Theprojectdefined

theconceptsforthemainaspectsofglobalmaterialmaster

datamanagementatMerck.Itwasdecidedtolaunchaglobal

programcreatingaconsistentapproachtocapturingand

managingmasterdataacrossthecompanytorunabetterand

moreprofitablebusiness.

The Material Master Data Management program had the

following overall ojectives:

• Establishandre-alignclearrolesandresponsibilitiesfor

corporatemasterdatamanagement

• Implementationofaharmonizedapproachforglobal

productintroduction

• Enableglobalmanagementofmaterialsoveritsentire

lifecycle

• ReplacementoftheexistingMDMsystemwithnew

state-of-theartMDMtechnology

• Extendthescopeofgloballygovernedmaterials

Theprogramwasdividedintofourmodulestobedelivered

successivelyinthetimeframeoftwoyears.Eachmodule

consistedofindividualprojectsthatweremanagedbyMerck’s

GlobalMasterDataManagementteamsupportedbyCamelot

consultantsandbyrepresentativesfromthebusinessunits.

Joerg SchwambergerProgramManagerM3,Merck

“We were looking for a master-data governance application with a future – one that would enable us to harmonize master data for unified processes across our global business.”

Statement

MDM strategy: “Building up and mobilizing corporate MDM strategy” ThefutureMDMstrategyhasbeendevelopedandalignedwithbusinessprioritiesandstakeholders.

Mobilizationacrosstheorganizationwithintensivecommunicationandtransformationactionshavebeenconducted.

Module 1: “Building the technological basis / -platform” Inmodule1,theexistingSAPMDM3.0systemwasreplacedwiththecurrentstate-of-the-arttechnologySAPMDG-M

(MasterDataGovernance–Materials).WhereasCamelotManagementConsultantssupportedthesolutiondesign,the

implementationofthesolutionwasrealizedbyCamelotITLabconsultants.Closeco-operationandefficientprocesses

betweenallparties,businessandIT,ledtoasuccessfulandsmoothgo-live.SAPMasterDataGovernancewasimplemented

onscheduleandwithinbudget.SAPMasterDataGovernancesolutionprovidesMerckwitharobust,extensibleframe-

workforharmonizingthecollection,managementanduseofmasterdataglobally.

Module 2: “enhancing the MDM capabilities in the organization”Inmodule2,thefocuswasonthedefinitionandintroductionofnewrolesandenhancedworkflowcapabilitiesformate-

rialmasterdatamaintenance.Aconceptwasdesignedandimplementedformateriallifecyclemanagementasastand-

ardizedprocesstophaseoutmaterialsacrossallERPsystemsandthecompany’sglobalreportingsystems.Alsothescope

ofgloballygovernedmaterialswasextendedbymigratingformerlylocallymanagedmaterialsintotheglobalMDG-M

system.ThisisregardedasamajorcornerstoneinstrengtheningMerck’scentralmasterdatagovernance.

Module 3: “Introducing advanced and sustainable Data Quality concept”Inmodule3,MerckandCamelotstartedamasterdataqualityprojectwiththeobjectivetoimplementasolutionfordata

qualitymeasurement.Asafirststep,keyperformanceindicatorstomeasuredataqualityweredefined.Inasecondstep,

SAPInformationSteward–asystemusedtocalculateandvisualizedataqualitybasedonpre-definedbusinessrules–was

implementedbyCamelotITLab.Supportedbyreportsandscorecards,thismodulehasenabledMercktoquicklyassess

itsmasterdataqualityonarepeatablebasis.Incorrectdatacaneasilybeidentifiedandcorrectedwithmassworkflows

directly.

Module 4: “establishing end-to-end workflows for the new MDM governance model”Inmodule4,thecoredeliverablewasthestandardizationofend-to-endmaterialmaintenanceworkflows.Thismeansthe

maintenanceandapprovalof“globalattributes”inMDG-Mtriggersthesubsequentmaintenanceof“localattributes”in

ERPbyanintegratedworkflow.Afterthestandardtemplatewithallnecessaryworkflowstepswasdesigned,SAPBusi-

nessProcessManagementwaschosenastooltoimplementtheworkflowsequence.Mercknowhastheabilitytosteerthe

materialmaintenanceprocessthecreationofglobalattributesuntilthematerialisready-for-executiononplantlevel.

1

2

3

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The results

TheMDMprogramatMerckhasdefinedtheindustrybest

practicebyleveraginglatesttechnologiesandbyaconse-

quentimplementationofinnovativeconceptswithinallMDM

areas.

Oneofthekeysuccessfactorswastheholistic approachand

thedriveoftheteamduringtherealizationofthecomplete

program.Startingwiththeoverall MDM strategy to the

development and implementation of global concepts and

systemsformasterdatamanagement,CamelotManagement

ConsultantsandCamelotITLabsupportedMerckinatwo

yearssignificant transformation programuntilfinalresults

havebeensuccessfullydelivered.

AllconceptsintroducedweretailoredtofittotheMerck

businessrequirementstogetherwithMerck’sGlobalMaster

DataManagementteam.Thisveryclosecollaborationaswell

asthetrustfulandintegratedco-operationbetweenbusiness

andITwasanotherimportantsuccessfactorduringtheMDM

program.

Jürgen JostHeadofGlobalMasterDataManagement,Merck

”First the MDM implementation took Merck one major step further on the way to process excellence in material master data management and more is still to come. One of the most important success factors so far was the close and trustful collaboration between both parts of the team - business and IT. “

Statement

Bjoern ebelingAssociateDirectorInformationServicesMDMandIntegrationApplications,Merck

“By deploying SAP Master Data Governance, we are able to meet our high requirements for the quality of our master data. This innovative and stable solution also supports ownership policies and harmonized processes in material master data management.”

Statement

RoadshowofMDMprogramatMerckDarmstadt

Organization• Productownershipconceptrolled-out:newroletoenable

centralizedportfoliomanagementbycontrollingmaterial

creationsandsteeringphase-outprocesses.

• Fieldownershipconceptrolled-out:newroletoenable

clearresponsibilitiesfortheusageofglobalattributesand

thedefinitionofrelatedbusinessrules.

Governance• Complexbusinessrulesimplemented:around350different

validationandderivationruleshavebeenandimplement-

edtoenablethe“first-time-right”principletosupport

dialogusers.

• MetadatamanagementwithMDG-X:theSAPMDGframe-

workwasusedtodevelopacustomizedapplicationforthe

consistentmaintenanceofproducthierarchies.

Processes• Lifecyclecontrolestablished:globalprocesssupporting

productownertomanagetheirportfoliobydifferent

materialstatuswithadirecteffectonERP-transactions.

• Massmaintenanceenhanced:massworkflowswereimple-

mentedwithdataerrortracingfunctionalitiestoreduce

manualeffortincaseofdatacorrections.

The MDM transformation highlights at Merck

Data quality• Dataqualityreportingimplemented:tocalculatedata

qualitybasedonpre-definedbusinessrules,SAPInfor-

mationStewardwasimplementedtovisualizereporting

resultsonscorecards.

• Inheritanceconceptrolled-out:fieldvaluesgetinherited

betweenmasterrecordsandassignedmaterials.Inherited

valuescannotbechangedbydialoguserstoensuredata

consistency.

Technology• Processperformancereportingimplemented:SAPBusiness

ContextViewerwasimplementedtomeasureworkflow

cycletimesandthenumberofchangerequestswith

drill-downoptions.

• End-to-endworkflowsimplemented:SAPBusinessProcess

Managementwasimplementedtoguideusersfromthe

maintenanceof“globalattributes”inMDG-Mtothe

subsequentmaintenanceof“localattributes”inERPby

anintegratedworkflow.

Dataqualityscorecardin

SAPInformationSteward

Product/MaterialLifecycleManagementatMerck

Numberoftransactionsonmaterialno.

X-plant material statusin SAP MDG-M

Phase

10 20 30 40 50 60 70 80

Time

Launch phase Active phase Phase out period Inactivation phase

Draft (ToBe)Distributed

Globallyapproved

Tobephasedout

Phasedout

Tobeinactivated

Inactivated(avail.forreporting)

Archived/retired

_ The MDM TrAnSfOrMATIOn hIGhLIGhTS AT Merck

CAMELOTITLABCuSTOMERSuCCESSSTORy

_ cAMeLOT’S hOLISTIc MDM APPrOAch

cAMeLOT ServIceS

MDMStrategyRequirementAnalysis&BusinessCaseMDMProviderSelection

MDMOrganization&GovernanceMDMProcesses&ArchitectureBlueprint&TechnicalSpecification

TechnicalImplementationOrganizationalChangeTrainings&Know-howTransfer

DataQualityManagementMasterDataServiceManagementMDMKnowledgeManagement

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camelot ITLab

CamelotITLabisaprocess-orientedITconsultancywithstrong

focusonSAPmodulesMDG,SRM,SCM,CRM,TMandBI.

EstablishedpartnershipswithleadingITproviderslikeSAP,

IBM,OracleandMicrosoftinconjunctionwithcustomer

focusedsolutionsandinnovativeblueprintsmakeCamelot

ITLabtheconsultancyofchoiceforend-to-end-processes.

CamelotprovidesinadditiontoSAPStandardsindependent

solutionsliketheAdd-OnSupplierManagementCamelot

CSx.AspartofCamelotInternationalGroupweprovide

combinedstrategy-,organizational-andIT-consultancy

services.HeadquartersarebasedinMannheim.

camelot ITLab Gmbh

HolgerReimer

HeadofSAPTechnology

Theodor-Heuss-Anlage12·68165Mannheim·Germany

Phone+4962186298-800·www.camelot-itlab.com

your contacts

Merck

Merckisaleadingpharmaceutical,chemicalandlifescience

companywithtotalrevenuesofEuR11.2billionin2012,a

historythatbeganin1668,andafutureshapedbyapprox.

38,000employeesin66countries.Itssuccessischaracterized

byinnovationsfromentrepreneurialemployees.Merck’sop-

eratingactivitiescomeundertheumbrellaofMerck,inwhich

theMerckfamilyholdsanapproximately70%interestand

freeshareholdersowntheremainingapproximately30%.In

1917theu.S.subsidiaryMerck&Co.wasexpropriatedand

hasbeenanindependentcompanyeversince.

Merck kGaA

JürgenJost

HeadofGlobalMasterDataManagement

FrankfurterStraße250·64293Darmstadt·Germany

Phone+49615172-0·www.merckgroup.com