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www.silvercreeksystems.com Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit, August 26, 2009

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Page 1: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

www.silvercreeksystems.com

Product Data Mastering for Successful MDM

Silver Creek Systems & Cardinal Health

MDM Summit,August 26, 2009

Page 2: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 2

Agenda

Automated Data Mastering• The Product Data Problem• Semantic-based Product Data Mastering

Cardinal Health: Product Data Mastering of MDM• Background and Data Challenges• MDM Initiative• Product Data Quality & Governance• Tools and Approach• Status and Business Benefits

Page 3: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

www.silvercreeksystems.com

Automated Product Data Mastering

Page 4: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 4

The Data Problem

What is this?

How many different ways can you receive information?

How many ways do you need it?

10hp motor 115V Yoke mount10hp motor 115V Yoke mount

mtr, ac(115) 10 horsepower 115voltsmtr, ac(115) 10 horsepower 115volts

MOT-10,115V, 48YZ,YOKEMOT-10,115V, 48YZ,YOKE

This 10hp yoke mounted motor is rated for 115V with a 5 year warrantyThis 10hp yoke mounted motor is rated for 115V with a 5 year warranty

10 Caballos, Motor, 115 Voltios10 Caballos, Motor, 115 Voltios

TEAO HP = 10.0 1725RPM 115V 48YZ YOKE MTRTEAO HP = 10.0 1725RPM 115V 48YZ YOKE MTR

Motor, TEAO, 1725 RPM, 48YZ, 15 Voltios, Montaje de Yugo, hp = 10Motor, TEAO, 1725 RPM, 48YZ, 15 Voltios, Montaje de Yugo, hp = 10

Item MotorClassification 26101600Power 10 horsepowerVoltage 115Mounting Yoke

Item MotorClassification 26101600Power 10 horsepowerVoltage 115Mounting Yoke

Page 5: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 5

Typical Product Data ProblemsThe greatest threat to your PIM/MDM initiative

Product ID Manufa-cturer

Description Product Type Power Voltage Mount

ABC123 AA Inc. 10hp motor 115V Yoke mount Motor, AC/DC 10hp 115V Yoke

abc-123 A.A. mtr, ac(115) 10 horsepower 115volts AC/DC Motor 10 115 AC.

ABC/123/Q AA/Craft 10 Caballos, Motor, 115 Voltios Mot-AC 10 H-pow 115

QA-ST5 Craft TEAO HP = 10.0 1725RPM 115V 48YZ YOKE MTR 26101604

Z99 Z99 MOT-10,115V,48YZ,YOKE Z99

Motor powered pulley, 3/4" Motor

Product ID Manufa-cturer

Description Product Type Power Voltage Mount

ABC123 AA Inc. 10hp motor 115V Yoke mount Motor, AC/DC 10hp 115V Yoke

abc-123 A.A. mtr, ac(115) 10 horsepower 115volts AC/DC Motor 10 115 AC.

ABC/123/Q AA/Craft 10 Caballos, Motor, 115 Voltios Mot-AC 10 H-pow 115

QA-ST5 Craft TEAO HP = 10.0 1725RPM 115V 48YZ YOKE MTR 26101604

Z99 Z99 MOT-10,115V,48YZ,YOKE Z99

Motor powered pulley, 3/4" Motor

Inconsistent names (representing same business)

(Often) Rich information, but mostly non-standard

Attributes non-standard, missing or invalid

Mis-classified item (not a motor)

Companies struggle with the basics of PIM80% companies are not confident in the

quality of their product data73% find it “difficult” or “impractical” to

standardize product data‘PIM Business & Technology Trends - Survey’, Sept 2007

Inconsistent formats (extra characters

often added)

Inconsistent classifications & misclassifications

Widespread duplication (often hard

to spot)

Page 6: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 6

Typical Product Data Challenges

Current methods [for product data quality] often don’t work 66% companies use “manual effort” or “custom code”

• 75% say it is too unreliable• 64% say it is too slow• 56% say it is too expensive• >50% say ‘all of the above’

‘PIM Business & Technology Trends - Survey’, Sept 2007

Too complex for custom code

Too ‘messy’ for traditional tools

Too much volume for manual effort

“Poor” data• Little structure• Few standards• Incomplete information

High volumes/Turnover• 10k to 10M items• 5 to 500% turnover (annual)

Multi-domain, Multi-attribute• 5 to 5 thousand “domains” per system• 2 to 30 required attributes per domain/item• Many requirements, validations, rules per attribute

Page 7: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 7

Product Data MasteringProduct Data Mastering

Product Data Mastering - Semantic Architecture at the Core

Semantic recognition for extraction, standardization & transformation based on meaning and context

Get your data right and keep it right

Combination of Data Quality, Data

Integration & Data Governance to recognize, to recognize,

cleanse, match, govern, cleanse, match, govern, validate, correct and validate, correct and

repurpose product data from repurpose product data from any source to any targetany source to any target

Quality Governance – Data Steward Dashboard

StandardizeStd. Classification(s)Std. AttributesStd. DescriptionsTranslate (inbound)

MatchDe-duplicateMerge

RepurposeTranslate (outbound)(Re-)classify(Re-)standardize(Re-)format

Exception Management – Validation & Remediation

EnrichClassify Extract/append info

Semantic Recognition – Contextual understanding & learning

Page 8: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 8

Next-Generation Approach

Semantic – Looks for meaning, not patterns

Syntactic – looks for repeated patterns

Basic technology:

Hand-coded – written & maintained by IT

Procedural – IT writes code

Auto-learning – system teaches itself

Code-free – Business user points & clicks

Rules are:

Learning from exceptions:

Traditional Systems DataLens System

Page 9: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 9

• “One of the most difficult type of data to master is undoubtedly product data – the items, assemblies, parts and SKUs that are core to many businesses.

• Product data is inherently variable, and its lack of structure is generally too much for traditional, pattern-based data qualityapproaches.

• Product and item data requires a semantic-based approach that can quickly adapt and ‘learn’ the nuances of each new product category. With this as a foundation, standardization, validation, matching and repurposing are possible. Without it, the task canbe overwhelming and is likely to include lots of manual effort, lots of custom code – and a whole lot of frustration.”

Andrew White, Research VP, MDM and Supply-chain

Product Data Mastering

Page 10: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Silver Creek Systems ©2009 10

Customer Base: Industry Leading Companies

Leading Healthcare GPO• Eliminate $5MM per year of manual effort• Improve information quality, timeliness and customer

service levels

Office Supplies Company• Reduce manual effort while scaling operations • Increase revenues through better customer experience

and merchandising of high margin items

Industry Leading Food Distributor• Saved at-risk MDM project • Automated a manual process to scale operations

Global Manufacturer• Enforce corporate-wide data standards to accelerate systems

migration• Eliminate large amounts of manual effort and workarounds

Global Retailer• Increase online conversions and search usability • Go live with 1000 product categories in 10 weeks• Empower merchandisers with 40x faster rule changes

Global Healthcare Company • Automating product data quality – as an enterprise-wide

service• Key component of integrated MDM strategy

Page 11: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

Product Data Mastering for MDM

Richard HoytMDM Architect

Page 12: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Introduction to Cardinal Health

• Founded in 1971 as Cardinal Foods, Inc.• Cardinal Health is a global healthcare company

providing products and services that help improve quality, safety and efficiency all along the chain of care

• $91 billion in annual revenue in FY2008

Page 13: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Broad Healthcare Offerings

• Distribute 1/3 of all medicine prescribed in the U.S.

• Manage 275 hospital pharmacies• Dispense 5 million doses every day

through Alaris® and Pyxis® products• Manufacture or distribute products

used in 50% of all surgeries• Products used by 90% of hospitals• Manufacture or package 100 billion

doses of medicine every year

Page 14: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Becoming One Company…

eon

CPSI

From a distribution company… To a portfolio of market leaders…

Our MissionTo make Healthcare safer and more productive

To a global healthcare leader

Our RequirementModernize our systems and synchronize our data

Page 15: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Product Data Quality – an Industry-Wide Problem

• Average cost to research and correct a single reconciliation exception ranges from $15-$50 per error.

• 30% of item data in product catalogues is in error – Each of those errors cost $60 - $80 to reconcile

• 60% of ALL invoices generated have errors– Each invoice error costs $40 - $400 to reconcile– 43% of all invoice errors result in deductions

• Item master, charge master & case management systems are out of sync

• Any QRA violation can lead to fines - $50,000 per incident

• The cost of low data quality is significant!

1 Source: Rand Ballard, “Strategic Supply Cost Management, Physician Preference Without Deference,” Healthcare Financial Management, April 2005, pp 78-84

A study by the Healthcare Distribution Management Association (HDMA) estimates

Page 16: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Cardinal Health – Business Situation & Opportunity

Business Opportunities– Customers experience improvement

with product search and cross reference when ordering online

– Increased sales opportunities

Proposal– Overhaul product data mastering

(cleansing, matching etc.) practices to reduce cost, improve scalability and quality etc.

– Improve enterprise-wide data leverage via MDM for Product Data

Product Data Problems– Expensive to create and maintain

• Largely manual processes• Unable to keep up with data volumes

– Poorly leveraged across the business• Lack of clear ownership and accountability• Disparate systems and processes

Business Benefit– Improved customer satisfaction

• Improve ability to find and purchase desired items

• Identifying alternatives reduces stock-outs– Increase revenues

• Better product lookup• Ability to recommend preferred substitute

items.– Reduced costs

• Reduced manual effort• Improved scalability • Improved quality

Page 17: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Data Mastering for MDM

Business Unit View Enterprise Common View Enterprise Functional View

All Business Units

Match&

Cleanse

BU View

Enterprise Applications

Enterprise Finance

Business Unit 1

EnterpriseDataHub

Unique View

Business Unit 2

Business Unit 3

BU View

BU View

Sales & Customer Service

Enterprise Operations En

terp

rise

Dat

a W

areh

ouse

Common View

Business UnitLegacy Systems

(as needed)

Common View

Enterprise Data Managment

Dat

a E

ntry

Business Unit 4 BU View

• Analyze• Parse• Clean• Standardize

• Process metrics• Process improvement• Data review • Exception management

• Match• Merge• Enrich

Cleanse & Match

Data Stewardship

• Persistent View • Data Management• Data Distribution• Master Data Services

Page 18: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Legacy ‘Cleanse & Match’ Operations

• HSCS-Pharmaceutical Distribution– Product cleansing and management

operations + ongoing maintenance

• HSCS-Medical Distribution– Product cleansing and management

operations + ongoing maintenance – Partial automated processes and

inefficiency to handle volumes.

• SupplyLine– Internal service group– Strong category management

capabilities– Homegrown solution, largely manual

There have been numerous parallel and largely redundant efforts

Proposal– Eliminate redundancy – Build single,

enterprise-wide ‘service’ for product data clean-up

– Automate – use best available technology to reduce costs, increase scalability

– Enterprise leverage – use MDM to make reliable data available enterprise-wide

Page 19: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Automation of Data Quality - Evolution

• Manual– Only basic field-level validations– Expensive and hard to scale

• 1st Generation – Basic pattern recognition – Intensive IT coding & maintenance– Constant tuning through trial and error– High level of exceptions & false-positives– Questionable results

• 2nd Generation – Advanced pattern recognition– Potential for context-sensitive recognition, may require good

amount of IT effort to leverage it– Can take a long time to deploy– No provision of business users– Requires ongoing maintenance by IT

• 3rd Generation – Semantic recognition – Leverages context and business-generated rules– Designed for non-technical business user (avoids– Relatively rapid deployment – High quality results with few errors

Each evolution in data quality technology has reduced TCO by reducing labor costs – both IT and business operations

Manual 1stGeneration

2ndGeneration

3rdGeneration

Labor

Purchase Costs

TCO

Quality Levels

Page 20: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Selected Vendor – Silver Creek Systems

• Better use of resources – Business tool powered by IT, not

an IT tool used by the business

– Requires fewer advanced business resources in order to be effective

– Requires fewer IT resources to support

• Lowest total cost of ownership

• Quicker time to value

Silver Creek provides a solution that empowers the business to control the quality of the data with little dependency on the IT group

and does so at a more than competitive TCO

Why Silver Creek Systems?• Advanced semantic technology

• Auto Learning leverages existing corporate knowledge

• Built for business users

Page 21: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Cardinal Overall MDM Landscape

• Cardinal Health’s current MDM environment consists of multiple technologies working together

• Silver Creek provides a unique methodology to approach data quality for the product domain

• Silver Creek is used as the standard for product cleansing and matching and is incorporated into the remainder of the environment

Many aspects of MDM are similar between Customer to Product data. Data Quality has the least amount of

similarities!

Page 22: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Why is Product Data different? Variability & subjectivity

Graduations?

Immersable?

Type? Usage?Accuracy?

Autoclaveable?Manufacturer?

Auto-off?Control type?

Certifications?

Item Category = ?“Thermometer”

Page 23: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Product Data ‘Rules’ are Category-Specific

Graduations FarenheitImmersion Water resistantChemical type DigitalUsage OralAccuracy 0.2 FAutoclaveable Not autoclaveableManufacturer AllegianceAuto-off 5 minutesCertifications NoneControl_type None

ThermometerDisposableLengthSterilityStyleGuageStyletWingSubclass_nameHandleReprocessedODSizeNeedle_nameNeedle_attachmentDiameter

Needles_EpiduralDiameterEnd_typeMaterialMouth_typeUsageManufacturerClass_gradeVolumeDisposable_reusableAutoclavableHandlesBase_typeGraduationsGraduatedStackable

BeakersFirst_nameLast_nameStreet_addressCityZIP - 5ZIP - 9

Party Information

CDI/Party Data rules are mostly uniform

1. Product Data rules are mostly category-specific

• Required attributes• Allowable values• Vocabulary• Abbreviations

2. Cardinal Health has over 1,600 categories…

• Inferences• Validations• Exception handling…

Page 24: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Product Data Hierarchy & Volumes

Categories

Product Lines

Class

Clinical Product Descriptions

Manufacturer SKUs

Distributor SKUs

Unique items

Match to alternates

Cleanup, validate, enrich

Classification

Item definition level Specify standards

Existing hierarchy and cross-reference of internal and external products

Page 25: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Phased Silver Creek Rollout Delivers Immediate Value

Phase 1: Initial Deployment • 3 months • 25% of original (manual process)

team assigned to the DataLens System

• Select high priority product categories for greatest impact

• ‘Work out the kinks’ – incorporate learning

– New & improved processes– Ways to work faster and more

effectively• Refocus team from line-by-line effort

to building reusable rules & process

Phase 2: Full rollout• 9 months • Double team size to accelerate

roll-out• Rapidly broaden coverage • Tackle DQ item backlog• Further develop item cross-

referencing • Further integration into other

business processes• Deploy as enterprise-wide data

service

Enabling a fundamental change in process and effectiveness

Page 26: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Phase 1 – Initial Results

• Non-technical – Clinicians are able to perform work with minimal concerns about the technical environment

• Easy to integrate – Installation and configuration within the Cardinal environment has been good

• Short time to value – The team has been able to quickly provide value on high-priority products

• Identified substitutes per product have been increased by 5x

• Increased sales opportunities and customer satisfaction

• Foundation for MDM

The experience with the Silver Creek technology has been extremely positive

We are already seeing 1) good results and 2) more opportunities!

Page 27: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

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Bottom-Line…

The combination of Automated Data Mastering and MDM solves a critical need for the business

Automated Data Mastering will– Significantly reduce operating costs– Improve output quality and scalability– Identify more substitute items

(improved customer satisfaction and revenues)

MDM for Product Data will– Ensure all systems are using the

‘right’ trusted data– Leverage the value of the data being

created

– Increased revenues – through better customer service, choice and functionality

– Reduced cost – of running the business

– Business flexibility – the ability to respond quickly to new opportunities

– Increased trust – in the validity and reliability of the information supply chain

Sustainable competitive advantage!

Page 28: Product Data Mastering for Successful MDM › MDM09 › pdf › Tues › PIM › BOY… Product Data Mastering for Successful MDM Silver Creek Systems & Cardinal Health MDM Summit,

www.silvercreeksystems.com

Product Data Mastering for Successful MDM

Silver Creek Systems & Cardinal Health

MDM Summit,August 26, 2009