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Orange County Convention Center Orlando, Florida | May 15-18, 2011

Colgates Approach to Globally Manage Product, Supplier, Finance, and Other Data
Jian Ming Se, Colgate Andreas Seifried, SAP

Real Experience. Real Advantage.

Agenda
Colgate MDM Program
MDM Program principles

Our progress to-date


Our collaboration with SAP & MDM Tools

Our next steps

SAP MDM Update

CP Overview

Our Vision

To Become the Best Truly Global Consumer Products Company

Global Scale

$15.6B global consumer products company Products sold in 223 countries

Operations in over 80 countries


82% of sales from international operations (excluding Hills Pet Nutrition) 38,000 Colgate people worldwide

Among the Worlds Most Recognized Brands

Balanced Geographic Division Split


Hills 14%

North America 19%

Greater Asia/Africa 19%

Latin America 27% Europe/South Pacific 21%

Focused on FOUR Core Categories


Oral Care 43% Personal Care 22%

Home Care 22%

Pet Nutrition 13%

Global IT Structure
Global Development &

Europe/Africa
Dublin

GSSO
Mumbai

Americas
(New Jersey)

Asia Pacific
Kuala Lumpur

98% of our business is on SAP Same System, Same Information, Same Performance, Same Process

- EVERYWHERE -

Sales Increasingly Driven by CPs Global Brands

Sales From Global Brands

85%

56%
24% 1980 1990 2010

Current Enterprise Systems Infrastructure


Europe/Africa
North America

Asia Pacific

Latin America

The Master Data Challenge


The language of doing business
Master data is stored in multiple, disconnected systems/databases Master data describes key areas of your business Customers (name, address, phone number, ) Products (product attributes, list price, ) Suppliers (parent entity, address, parts offered, ) Employees (ID, name, title, address, org unit, ), etc. Unmanaged master data is notoriously inaccurate, full of discrepancies, incomplete and leads to poor business decisions

Is this the same customer?


CustID Name W. Smith 6 Street 100 Park Av.

CustID Name W0605 Bill Smith

Address 100 Park St.

Page

Colgates MDM objectives - 2007


Harmonize 4 big objects across R/3 instances and other applications Setup global master data management organization as a part of Shared Service Organization Create global master data repository and manage master data centrally Global Data Synchronization solution integrated with Material Master

6 year plan
Data Sync with Retailers (GDS 2007)) Vendor (first priority) Finance (GL Account/Cost Center) Product Customer

MDM Domain

Vendor

Vendor Domain Principles


MDM Vendor Domain
Vendor Attributes
Global Standards Global Management of 130+ Attributes New Vendor Numbering

Governance
MDM Organization Business Processes Business Rules

Technology
MDM Tools Workflow/ User Interface Downstream system

Continuous Improvement
KPI reports Business process Simplification Data Cleansing

Vendor

MDM Netweaver 5.5 2007 (Vendor)

General Requestor

Procurement Requestor

Composite Application Logic Business Workflow + Rule Engine Staging Area

Colgates Development

Change Log, WorkFlow History

Application Server

MDM ABAP API

eBuy
Central Repository Transaction Systems BI KPI Analytical Reporting

TaxWare

ECC 6.0 / R/3 4.6 ECC 6.0 / R/3 4.6 ECC 6.0 / R/3 4.6

MDM NW 5.5

BI

Vendor-MDM: Business Roles


Business Functional Areas

General Requestor
Initiator of a Vendor Request Enter 20+ basic fields about the vendor

Procurement Data Specialist


Decision making

Finance Data Specialist


Finance Information/Data

Procurement Approver
Validates basic data about the new Vendor. Validates Vendor meets procurement policy

Finance Approver
Additional approval

Data Validator
Final review

Admin activities

MDM Vendor
Business Scenarios Create Update Extend Block Unblock Mass Create/Change

All vendors maintenance via MDM - Global All ECC txn code for vendors maintenance removed
Live - Globally Latin America 2008 Europe Division 2009 Asia-Pacific 2009 North America 2009 Hills 2009 2010 Vendors KPI Reports Quarterly Block Program

Change Management

KPI Sample

MDM Domain

Finance

Finance Domain Principles


MDM Finance Domain
GL Accounts
Rationalize GL Accounts Harmonise/Standardize GL Accounts

Cost Centers
Rationalize Cost Centers Standardize Cost Centers Definitions

Governance
Organization KPI reporting Centralised Process

Technology
Phase 1 Solution Manager (GL/CC) Phase 2 MDGF (CC) Phase 3 - MDGF (GL)

Solution Strategy of Master Data Governance

Deliver outof-the-box

Object Model

Reusability & Extensibility

Solution Strategy

Data Maintenance

Data Replication

Master Data Governance Applications (MDGx)


Key Messages Mission is to build applications that provide master data governance (MDG) for Sydney has to allow for generic object modeling by data steward overcoming the need for technical consultants process centric, selected master data types
External Services
(DUNSNo. )

External providers
MDG Process Flow from End-User Perspective

Processing in MDG Data Maintenance Validations & Data Quality Checks Approval

MDG

Central maintenance of master data


3rd party systems

Replication via enterprise services

Request master data change Validate & approve request Analyze process quality Identify & resolve exceptions Analyze data quality Replicate data Local adaption

Local adaptations in operative systems

Business Suite systems

Leveraging SAP for Integrated Process

Business Processes
SAP 2009 / MDM Strategy and Direction - 23

MDGF - Approval WorkFlow for Cost Centers


Casual User or Data Specialist Data Validator MDGF ECC

Raise request and enter data on a webpage

Create/Update Master Data Review Request Activate Master Data

Update revised data

Approve?

YES

NO

Confidential Cost Center?

YES

YES Need to revise data? NO

NO

Changes Are Distributed NO Alternate Hierarchy Exists?

Close Request?

NO

YES YES Update Alternate Hierarchy

Close Request

End

End

CONFIDENTIAL

MDM - Finance
2010 Solution Manager Cost Center Governance GL Account Governance P&L account rationalisation Aligned to Corporate Chart of Account Blocked 9,000 accounts globally 2011 MDGF (EhP5) Cost Center Governance Balance Sheet GL account rationalisation GL account mapping GL account Governance Scenarios Create Update Extend Block/Unblock Mass create/change

MDM Domain

Product

Product Domain Principles

GLOBAL

MDM Product Domain through data quality and superior insight


Product Hierarchy
PH attributes Govern PH Attrib Category, Sub Category, Segment, Brand, Sub Brand, Variant

Product Attributes
Standards 500+ Attributes SKU Number

Governance
Organization Processes Create/Change/ Block/Unblock Mass Change KPI Reporting

Technology
MDGM Workflow/User Interface Design

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MDM - Product

SKU Attributes Global SKU # structure 500+ attributes Finished goods Governance Scenarios In-house manufacture Purchase finished goods Co-pack Division SKUs Single request multiple SKUs Multiple extend capabilities Mass Load/Change MDGM selected as the choice (tool) Development in-progress Target Go-Live (Phase 1) - early 2012

Master Data Vision - End-State (Journey)


One standard global process and definition for each domain

One organization to maintain consistency, drive accuracy and effectiveness


One system platform which will send master data to all applications One source for data One Truth !

Challenges

Business resources availability Savings quantification

Standard business definitions and processes


Risk management Downstream systems remediation

Legal Disclaimer SAP AG

2011 SAP AG. All rights reserved.

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SAP Master Data Management


Portfolio Overview
SAP Solutions for Master Data Management

SAP Master Data Governance Out-of-the-box, domain-specific governance applications to centrally create, change, distribute master data with a focus on SAP Business Suite Ensures that all master data is ready for use in SAP Suite applications (Embedded MDM)
SAP NetWeaver Master Data Management Application-agnostic infrastructure to consolidate and harmonize master data in heterogeneous environments Complements SAP Master Data Governance for additional Enterprise MDM use cases

Establish trust in your key information


Integrated Solution Suite for Master Data Management

SAP Business Objects Data Services


High performing extract, transform and load capabilities Industry leading data quality tools including comprehensive support for profiling, matching, data enrichment and address validation
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2011 SAP AG. All rights reserved.

SAP Master Data Governance


In Business Suite 7 Innovation 2010 (shipped Dec 2010)
Master Data Governance for Financial Data
Create or change Chart of Accounts, GL Accounts and Hierarchies, (Group) Companies, Profit and Cost Centers and their Hierarchies, Cost Elements and Hierarchies Data distribution to operational systems via Enterprise Services (SOA) or ALE

General Available May 12

Master Data Governance for Supplier Data


Create or change corporate, company, or purchasing attributes of supplier master data Mass data upload and mass change capabilities Data quality services such as duplicate check and address validation Data distribution to operational systems via SOA or ALE

Master Data Governance for Material Data


Create or change identifying and descriptive attributes of material master data, including governed classification Mass data upload and mass change capabilities Data quality services such as duplicate check Data distribution to operational systems via ALE

Master Data Governance for Custom Objects


Framework for data modeling, UI configuration, validation, and distribution of custom-defined master data objects
2011 SAP AG. All rights reserved. 33

SAP Master Data Governance EhP5 Version


Customer projects along the Product Lifecycle (as of April11)
Quality

General Available May 12

Dec.2010 Ramp-Up Program Start Development Close

May-12, 2011 Unrestricted Shipment

Productive Quality

Ramp Up Customer Validation

Gen. Availability Release to every customer

Design Partners / Co-Innovation Design Partners (EhP5&6)


Automotive (Supplier, Material, UserDefined) CP (Financials, Supplier, Material, UserDefined) HT (Financials, Material, Cust. Object) SAP AG(Customer) CP (Material, Supplier)

2011 SAP AG. All rights reserved.

Design Partners / CoInnovation

Proof-ofConcept

Special program only for limited no. of customers. Period to build market credential and scale-out field, service & support. Proof-of-Concept

Ramp Up
No further ramp-up seats available >30 active projects Implementations ongoing Several project go-lives before end of ramp-up

Completed
CP & Insurance (Financials) Automotive (Supplier) 2 CPs, HT & Pharma (Material) HT (Custom Object)

Customer Validation

Completed
Chemicals (Financials) Consumer P. (Material)

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SAP Master Data Governance


Roadmap Overview Summary of Currently Planned Key Innovations
TODAY PLANNED (6 18 months) FUTURE

SAP ERP 6.0 Enhancement Package 5


(shipped Dec.2010)

GA

SAP MDG for financial data (accounts, companies, profit and cost centers, cost elements and respective hierarchies) SAP MDG for supplier data (focus on corporate, company and purchasing-related data ) SAP MDG for material data (focus on corporate data for identification and classification) SAP MDG for custom-defined objects Mass data transfer and mass change capabilities Data replication to operational systems via enterprise services, ALE or files

2011 SAP AG. All rights reserved.

35

SAP Master Data Governance


Roadmap Overview Summary of Currently Planned Key Innovations
TODAY PLANNED (6 18 months) FUTURE

SAP ERP 6.0 Enhancement Package 5


(shipped Dec.2010)

SAP Master Data Governance


Next Versions
Enhancements to standard data models and validations for existing SAP MDG domains SAP MDG for customer data (focus on corporate data) Enhanced flexibility of user interface configurations and of change request processes Remote search on the hub (from client) and ad-hoc replication scenarios Improved search and matching as well as data enrichment Improved distribution via ALE and enterprise services Process quality analytics (e.g. based on Service Level Agreements)
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GA

SAP MDG for financial data (accounts, companies, profit and cost centers, cost elements and respective hierarchies) SAP MDG for supplier data (focus on corporate, company and purchasing-related data ) SAP MDG for material data (focus on corporate data for identification and classification) SAP MDG for custom-defined objects Mass data transfer and mass change capabilities Data replication to operational systems via enterprise services, ALE or files

2011 SAP AG. All rights reserved.

SAP Confidential Information This is the current state of planning and may be changed by SAP at any time.

SAP Master Data Governance


Roadmap Overview Summary of Currently Planned Key Innovations
TODAY PLANNED (6 18 months) FUTURE

SAP ERP 6.0 Enhancement Package 5


(shipped Dec.2010)

SAP Master Data Governance


Next Versions
Enhancements to standard data models and validations for existing SAP MDG domains SAP MDG for customer data (focus on corporate data) Enhanced flexibility of user interface configurations and of change request processes Remote search on the hub (from client) and ad-hoc replication scenarios Improved search and matching as well as data enrichment Improved distribution via ALE and enterprise services Process quality analytics (e.g. based on Service Level Agreements)

SAP Master Data Governance


Future Versions
Further extensions to the standard data models for SAP MDGs master data domains, pot. industry-specific Additional investments in MDGs application foundation regarding extensibility, flexibility, usability, and ease of consumption Further analytical capabilities and deeper integration with SAPs Enterprise Information Management and Information Governance portfolio

GA

SAP MDG for financial data (accounts, companies, profit and cost centers, cost elements and respective hierarchies) SAP MDG for supplier data (focus on corporate, company and purchasing-related data ) SAP MDG for material data (focus on corporate data for identification and classification) SAP MDG for custom-defined objects Mass data transfer and mass change capabilities Data replication to operational systems via enterprise services, ALE or files

SAP Master Data Governance for selected reference data domains

2011 SAP AG. All rights reserved.

SAP Confidential Information This is the current state of planning and may be changed by SAP at any time.

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Andreas Seifried
Product Manager SAP Master Data Management SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf, Germany E andreas.seifried@sap.com Please visit www.sap.com/mdm

Want to learn more about Meet us at the EIM Demo Pod in the SAP Master Data Governance? Business Analytics campus (#112)

ASUG customer presentations related to SAP Master Data Governance Day Mon. Wed. Time Room ID Title 10:30am S220A 01:30pm S220A 0901 How Bunge Defines Their Master Data Strategy 0911 Colgates Approach to Globally Manage Product

Questions?

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