Mastering Your Data

Copyright © 2008 Accenture All Rights Reserved.

 Agenda
• What are executives saying about their data?
• What is master data management?
• Why businesses need master data management
• Making it real…
• Accenture’s approach to master data management
• Why SAP NetWeaver Master Data Management?
• The master data journey
• Accenture’s capabilities
• Leading practices

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 What are executives saying about their data?
Clients are experiencing business pains related to ineffective
master data management
“I get two different results from two different
systems and, guess what, they are both wrong.”

“Our business strategy is for us to be an

information-driven company and to justify our
decisions with hard data, but that data is usually
unclear and inconsistent when I receive it.”

“I call them products, other people call them parts,

one system calls them SKUs – and our customers
call them by their catalog names and numbers –
are they all the same thing?”

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 What CIO’s are telling us…
Accenture Surveyed 160+ CIOs in Europe and North America in 2007

• CIOs recognize the need for an information management strategy that

spans the enterprise and includes structured and unstructured data.
– 75 percent of CIOs plan to develop an enterprise-wide information
management strategy in the next three years
– Today, almost 40 percent are focused on point solutions
• Effective information management is the way to outperform the competition
– 62 percent chose ‘outgrowing the competition’ as the single reason for
investing in information management
• CIOs plan to focus spending on back-end knowledge and capabilities
– 30 percent of information management investments in next 12-18 months
will be on data management and architecture (including master data
management)

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 What is master data management?

Master data is core data that is critical to

business operations.

Master data management is the combination

of organizational, process, and technology
components that work together to ensure that
master data is coordinated across the
enterprise.

When implemented holistically, master data

management provides a unified master data
service that provides timely, accurate,
consistent, and complete master data across
the enterprise and to business partners.

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 Why businesses need master data management

Drivers: Cost and margin

• ERP helped. What’s next?
• Consolidation – System and/or business
• Strategic Decision Making – Need information

Drivers: Business and industry

• Maximize the value of mergers and acquisitions
• Address business globalization and centralization
• Synchronization with partners and vendors
• Improvement in customer service
• Government regulations and standards

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 Why businesses need master data management
Drivers: Cost and margin
• ERP helped. What’s next?
• Consolidation – System and/or business
• Strategic Decision Making – Need information
Drivers: Business and industry
• Maximize the value of mergers and acquisitions
• Address business globalization and centralization
• Synchronization with partners and vendors
• Improvement in customer service
• Government regulations and standards
Proprietary to Accenture. © Accenture 2008.
But barriers include:
• Data integration challenges
• ERP systems lack flexibility in handling growing data
requirements
• Fragmented and inconsistent master data
• The strategic nature of data standardization and proper data
control
• Significant resources required to find, understand, cleanse and
reconcile data
• No one has the responsibility to make data decisions
6
 Why businesses need master data management

Drivers: Cost and margin But barriers include:

• ERP helped. What’s next?
• Consolidation – System and/or business
• Strategic Decision Making – Need information
Drivers: Business and industry
• Maximize the value of mergers and acquisitions
• Address business globalization and centralization
• Synchronization with partners and vendors
• Improvement in customer service
• Government regulations and standards
• Data integration challenges
• ERP systems lack flexibility in handling growing data
requirements
• Fragmented and inconsistent master data
• The strategic nature of data standardization and proper data
control
• Significant resources required to find, understand, cleanse and
reconcile data
• No one has the responsibility to make data decisions

Data management
breaks down these barriers
allowing companies to achieve their business goals
Standards Sales growth
& governance

Plan &
Data integration Centralizing data Analysis & mining forecast
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 Driving business value…

Integrated master data management:

• Improves “bottom line”
• Consolidates data for a single view
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• Creates standardization and data control

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• Protects companies by safeguarding

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• Reduces redundant data

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Enterprise insight
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• Allows executive decision-making to be

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based on accurate and complete data

• Improves planning/forecasting abilities
Master data management • Increases business process efficiency

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 Let’s make it real: Scenarios
Customer care
• Outbound call center applications: Your company calls a customer because they are
eligible for a special promotion. The customer is not interested. Your company calls the
same customer again for the same promotion on the same day and now the customer
asks to be removed from any outbound calling lists. Master data management could have
saved that customer.
• Order management: One of your customers would like you to customize their order
management system. Master data can help you quickly decide if that customer is worth
the investment needed to customize their order management.
Procurement
• Your company requires a specific type of screw to manufacture one of your leading
products. You manufacture it in the US, Brazil and China. By leveraging your master data
environment you find that even with shipping costs you can save $3,000 a month by
procuring in the US, on one type of screw.
Acquisition
• Your company has just acquired a competitor and you want to know which customers you
have in common. How quickly can your current data platform provide that information?

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 Root causes of bad master data
Strategy
Value of master data is not directly tied to business value

Process
No true cross-functional processes defined for the lifecycle of master data

People
Ownership of - and responsibility for - data is unclear

Data
Packaged applications reduce the attention paid to master data

Technology
Every application is built with the assumption it is the center of the universe

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 Accenture’s data management approach is holistic
A master data management initiative should be driven by the
business, with input from IT, in the following sequence:
Strategy
Understand where the journey will take the business both in the short and long term

People
Plan and establish a data governance organization with definitive authority, roles, responsibilities,
objectives, and success metrics early in the master data management journey

Data
Understand your data and start the process of data cleansing

Process Reengineering
Evaluate and redefine current data management processes

Technology
Develop a technology roadmap to achieve the vision outlined in the master data management strategy
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 Accenture’s data management approach is holistic

Data a. Technology, process, and

Retirement Data organizational changes to
Creation more effectively deliver master
data across the enterprise and
Data business partners.
Data Management
Usage & Architecture
Capabilities Data
Storage
Data
Movement

a.
Data Data Data Master Data Data Data
Governance Structure Architecture & Metadata Quality Security
• Data Ownership • Data Modeling • Data Migration • Master Data • Data Profiling • Data Privacy
• Data Stewardship • Data Taxonomy • Data Storage Management • Data Cleansing • Data Retention
• Data Policies • Data Access • Reference Data • Data Monitoring
Management
• Data Standards • Data Archiving • Data Compliance
• Metadata
• Data Retirement Management • Data Traceability

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 MDM in Accenture’s data management framework

Data Data Data Master Data Data Data

Governance Structure Architecture & Metadata Quality Security
Process

• Data Policies • Data Quality Rules &

• Data Taxonomy • Data Definitions • Compliance & Security
• Data Standards • Data Sizing & Storage Policies
• Logical Data Models • Master Data Policies
• Business Data • Data Retention Policies • Data Cleansing
• Business Process • Metadata Standards • Local, National &
Ownership • Physical Data Models
Flows • Reference Data International Laws
• Data Workflow • Compliance Rules

• Data Administration
People

• Data Stewards • Solution Architects • Business Data • Data Quality Services

• Enterprise Data • Corporate Security
• Business Data Owners • Storage/ Administration Team
Architects • Auditors
• Data Czar or Mgt. Technical Architects • Data Stewards • Data Governance
• Data Modelers • Compliance Dept.
Committee • DBAs • Data Owners • DBAs
Technology

• Master Data Mgt.

• Archiving Tools Tools • Data Profiling, Quality • Security Software
• Data Rules Library & Monitoring Tools
• Data Modeling Tools • Storage Management • Access Rights
• Automated • Reference Data
• Design/CASE Tools & Hardware • ETL Tools Management
Notifications (Workflow) Architecture
• Technical Architecture • Audit Reports • Data Audit Trails
• Metadata Repository

SAP MDM
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 Accenture’s approach to integrating SAP
NetWeaver MDM 5.5 helps clients achieve
consistent, correct and complete core data

SAP NetWeaver Master Data

Management 5.5:
A stand-alone master data
management technology

• Can handle any master data entity,

across any industry
• Flexible data model
• Works in conjunction with other toolsets
• Does not require SAP ERP – works
standalone or with other systems
• Successful Accenture deployments with
additional projects underway

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 The master data journey
Phase I Phase II A MDM Prep Phase III A MDM Services
MDS Strategy &
Value Analysis Phase II B MDM Pilot Phase III B MDM Infrastructure

• Business Case A – MDM Prep

• Assess Data • Operationalize quick wins Operate & evolve
• Begin data quality initiatives MDM
• C-Level
Commitment • Kick-off data governance
• Prioritize
• Scope Quick Wins B – MDM Pilot
• Data Governance • Gather requirements
Proposal Develop full
• Perform MDM tool selection scale MDM
• Roadmap • Build infrastructure for one
data entity
• Monitor & evaluate

Build basic MDM

infrastructure
Assess
MDM

Time
6-12 Weeks 3-6 Months ~ 1 Year

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 The master data journey
A holistic master data management initiative typically includes the
following key components:
Data governance Data Governance is how an enterprise manages its data assets. Governance includes the
rules, policies, procedures, roles and responsibilities that guide overall management of an
enterprise’s data. Governance provides the guidance to ensure that data is accurate,
consistent, complete, available, and secure.

Process reengineering Process reengineering is an approach to increase the efficiency and effectiveness of an
enterprise’s master data processes by modifying or eliminating non-value adding activities.

Data profiling Data Profiling is the systematic analysis of data to gather actionable and measurable
information about its quality. Information gathered from Data Profiling activities is used to
assess the overall health of the data and determine the direction of Data Quality initiatives.

Data cleansing Data Cleansing is the process of detecting and correcting erroneous data and data anomalies
both within and across systems. Data Cleansing can take place in both real-time as data is
entered or afterwards as part of a Data Cleansing initiative.

Data monitoring Data Monitoring is the automated and/or manual processes used to continuously evaluate the
condition of an enterprise’s data. Information obtained from Data Monitoring activities is used
to plan and focus data improvement initiatives.

Master data management A collection of toolsets that work together to consolidate, cleanse, harmonize, and deliver
master data across the enterprise and business partners.
technologies

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 Accenture’s SAP NetWeaver Master Data
Management capabilities
• Dedicated SAP NetWeaver Master Data
Management/data engineering organization
• 500+ trained and experienced MDM consultants
• 40+ formal assets (including methodologies,
accelerators, data modeling guides, etc)
• Industry-specific offerings have been developed or
are under way
• Robust delivery center capabilities
– Accenture’s Innovation Center for SAP
NetWeaver (Germany)
– SAP NetWeaver Delivery Centre in India
– Plans to expand Accenture’s Global Delivery
Network to focus on MDM in Chicago, Spain and
Israel
• More than 25 MDM projects in various stages of
delivery
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SAP’s MDM Strategic Data
Center in Karmiel, Israel
Accenture and SAP-exclusive,
strategic initiative enables:
• Vital relationship-building with
SAP executives / developers
• Sharing of thought leadership
Accenture’s Data Engineering
Group works directly alongside
SAP securing:
• Leading deployment practices
• Exceptional technical mastery of
SAP NetWeaver MDM 5.5
17
 Top leading practices

• Align the MDM initiative with corporate strategy

• Build a detailed business case
• Define success and measurements up front
• Implement a data stewardship process early
• Scope the project to produce quick wins with
measurable ROI
• Develop a proof of concept early in the initiative
• Avoid complex data architecture and integration science
projects.
• Select a proven approach and proven technologies.

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 What will you create with Accenture?

Accenture brings more than thirty years of key

learnings and best practices in SAP-based
solutions to clients. We have gathered these
insights from the delivery of thousands of SAP
projects ranging from straightforward technical
implementations to enterprise-wide
transformational change initiatives. We design
programs that are tightly aligned with client
business objectives, drive towards tangible,
measurable business results, and build the
capabilities that allow our clients to sustain and
extend business improvements. Learn more
about how Accenture works with clients to drive
performance through SAP NetWeaver Master
Data Management at
www.accenture.com/sapmdm.

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