Using SAP Master Data Technologies to Enable Key Business Capabilities in Johnson & Johnson Consumer

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Using SAP Master Data Technologies to Enable

Key Business Capabilities in Johnson & Johnson

Consumer

Terry Bouziotis: Director, IT Enterprise Master Data Management – JJHCS

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Agenda



Introduction



Master Data Management in Johnson & Johnson



Business needs drive technical solutions

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Who is Johnson & Johnson?



Global Leader in Health Care

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4

… a Global IT organization within J&J Consumer responsible for

… while aligning with business and enterprise initiatives.

BI and Data Center of Excellence

creating and fostering a vision, passion, and strategy for data management

partnering with business master data teams to develop and maintain

data

standards

driving and enabling a global

data governance strategy

implementing

SAP MDM

as a core global data management platform for the

consolidation of product, customer, and supplier master data

Empowering data stewards with tools and capabilities to monitor and improve

data quality

, leading to more trusted analytics

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5



Referee Syndrome – data only came into focus when there was problem



Strategic data issues permeated every aspect of our business

Post conversion data integrity lost over time

Error reconciliation dominated our data management activities

Data Management resource projections expanding globally



Internal “lessons learned” provided clear warning signs



“How can we get rid of the traditional data clerk role ?”

Traditional CoE model dictated hiring more and more resources

Motivational issues resulted in poor data metrics and quality issues

Tactical focus resulted in retention issues



We operated the “classic” Data Governance Model … NONE

!!

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MDM

Framework

 Workflow: Ability to effectively manage complex and cross functional master data scenarios consistently across sectors

 Data Integrity: Ability to consistently monitor data quality and demonstrate that we are measurably improving

 Data Strategy: Ability to enable, and build towards, end state (BtB model) while also positively impacting current state

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7

Technology and Capability Roadmap

LOW HIGH

Complexity

Increased Value Over Time Established Metadata Repository

• Master Data standards

• Industry Data Standards Repository

Data Governance

• Predictive Governance in all Regions

• Select rollout of Active Governance capabilities

Master Data Management

• 100% master data visibility for Product, Customer, and Supplier

• Platform upgrades

• Raw Material Repository Version 1.0

• Data Synchronization rolled out to 3 regions and 10 markets

Standardized Business Processes

• New Product Introduction (NPI) Process

Standardized Technologies

• Data Consolidation

• Process Orchestration / Active Governance • Data Stewardship Tools

• Data Synchronization

Data Governance

• Regional Governance Projects • Data Quality Assessments

• 60% master data visibility for product and customer data • Data Synchronization Pilot

• Data Enrichment Services (3rd_Party)

• Integration w/ Enterprise MDM initiatives • Chemical ingredient synchronization • Raw Materials 2.0

• Integrated R&D and Supply Chain data • Digital asset management

Investigate New Capabilities

• Data Quality Scorecards • External Data

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Enterprise Master Data Management (EMDM) Program



The EMDM Program was established to:

• Establishment of an enterprise governance model (non-affiliated) to drive

acceptance and compliance

• Core set of foundational data standards (for our most critical and

cross-functional information sets)

• Organizational accountability and alignment to the core data standards

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Enablement /

Innovation

Business

Discovery / Definition

/ Ownership

Successful programs maintain a balanced effort between the Business and IT

• Infrastructure • Application configuration • Deployment • Targeted Cleansing • Metric Dashboards • Support

• Refine data standards • Identify business scenarios • Refine Business Rules

• Define data maintenance roles • Define governance roles

• Utilize the system

• Re-prioritize focus areas • Define Business Metrics

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EMDM Objectives

Platform Optimization • Standard technology platforms Data Standardization • Primary standardization targets, business rules, baseline compliance Required Capabilities

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IT Partner Examples Business Partner

Examples _{EMDM Governance Council}

Enterprise Data Governance Board

Master Data Teams

Data Standards & Architecture IT Architecture Portfolio Management Enterprise Data Stewards Regional Data Leaders IT Quality & Compliance Regional / sector Supply Chain Finance HR Enterprise IT Sector IT External Partners Local Strategy & Capability Executive Sponsors Executive Sponsors

Provide business strategy and handles escalations

Master Data Teams

• Provide input to data standard development • Govern master data maintenance activity

Global Process Owners

Enterprise Data Governance Board

• Develops, monitors and prioritizes enterprise data standards and maintenance processes • Provides tactical direction for data standardization and reliability improvement efforts

EMDM Governance Council

• Provides strategic direction for data management across the Enterprise • Aligns EMDM and IT efforts in support of business need, and Enterprise

strategies and initiatives

• Provides decision making and oversight for governing the Enterprise data framework

Business Partner Examples

Provide business needs for data and information

IT Partner Examples

• Provide input to technical data design • Provide technical

delivery of data architecture

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Workflow for Data Point of Entry Governance Data Integrity Monitoring Business Glossary Data Profiling

Consolidation Single _{Version of} the Truth Data Quality Measurement Data Cleansing

Identifying Required

Capabilities

The ability to rationalize master data

The ability to measure the reliability of our data against desired dimensions of quality

The ability to remediate data quality issues

The ability to know how our data is being used

The ability to centralize data terms and definitions

The ability to consolidate disparate sources of data The ability to manage

the process of maintaining data The ability to enforce business rules, actively,

before data is entered

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Identify Standardization

Targets

Active Data

Governance

(SAP MDG)

Predictive Data Governance

Procedural Data Governance

Data Quality and Validation Rules SAP Configuration Policies & Procedures

Discovery Interviews

Governance Rule Composition Cycle

(SAP Information Steward)

Operational Data Hub

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• Determine Program Goals

• Identify Required Capabilities

• Evaluate and Select Tools

• Identify Key Enablers

• Measure Readiness

• Close Gaps and execute

Successful Tool

Selection and

Deployment

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• Consolidation • ‘Golden’ Record • De-duplication • Cleansing • Workflow • Synchronization • Operational Data Hub (SAP

MDM)

• Active Data Governance (SAP MDG)

• Predictive Data Governance (Information Steward) • Data Services

• Improved Analytics • Decision-Making • Operational Efficiency • Reduced Cycle Times • Improved Compliance Implement Data Governance Capabilities What do you want to achieve ? What’s our focus? What capabilities

are required to achieve our goal ? What tools best

match these requirements ? Are we ready to be successful ? • Ownership • Data Standards • Business Rules • Org Alignment • Change Management

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• Govern data at point of creation with discrete business rules and validations

• Workflow processing • Approvals to control when

data is transactable in downstream systems • Publish master data to downstream systems

• Cleanse , normalize, and enrich disparate data from various sources

• Create a single “Golden Record” of merged data from multiple systems • Identify and eliminate

duplicate data • Consolidate

master data from various systems (SAP ECC and non SAP systems)

Consolidation _{Data Cleansing}Normalization,

Data and Process Orchestration Data

Synchronization

SAP MDG

SAP MDM

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SAP MDG

and

Information

Steward

Workflow for Data Point of Entry Governance Data Integrity Monitoring Business Glossary Data Profiling

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Program Maturity

Level

Timeline (Key Milestones)

•Data Standards Repository •Governance Projects •Rule Collection / Creation •Data Policies / Procedures

•‘Integrated’ Standards and Change Management •Data Strategy

•Data Quality Metrics •‘Managing’ Data Actively

• Data Mgmt Platform • Data Process Optimization • Collaboration Platform • Business-Centric Metrics

DEVELOPMENTAL

REACTIVE

ESTABLISHED

OPTIMIZED

Capture the right information to baseline tools across All levels of

maturity required for success

DEVELOPMENTAL

Consolidation / Discovery with MDM - Procedural Governance

Predictive Governance with SAP Info Steward

Active Governance with MDG

Targeted Tactical Use of DG Tools

Tactical Use of Analytics (Likely) •Informal Data Standards

•Request Forms

•Silo’d Data Applications •Transactional Data Design

Enablers

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Operational Data Hub(s) will be leveraged to create, manage, and in some cases, distribute ‘critical’ master data attributes across our core data entities (e.g. Product, Customer, Supplier, FI, etc ..) Operational Data Hubs will also provide a ‘single source of truth’ of this ‘critical’ data for analytical applications (e.g. EDW)

Reference Data Model(s) built using

Data Standards

Data Migration Services (Initial & Repetitive)

Predictive Data Governance (System Monitoring) Workflow Based Data Governance (Point of Entry)

….

Existing ERP Landscape Global Template

Data Standards / Business Rules (Common Repository)

Data Services Info Steward SAP MDG

Integrated SAP EIM Suite

_SAP

MDM

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Supplier Reliability & Forecast Reporting • Consolidated and Enriched Supplier

Information

NPI Sales vs. Forecast NPI SKU/Country

• Consolidated product information linked to forecast

Net Trade Sales: COT/Franchise Customer Spend Waterfall

• Consolidated Customer Master • Complex Hierarchy Management Spend Analytics

• Consolidated and Enriched Supplier Information

• Raw Material Visibility

Point of Sales Analytics • Standardized

product hierarchies Regional Dashboards

• Standardization of master data for KPIs and Metrics

Central global master data repository: • Product & Customer & Supplier

Data

Key Analytical Capabilities…

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SAP HANA based Next Gen BI Concept

• Single point access & Integration • Leverages single

HANA DB engine to host all regional SAP and Non SAP BI. • Near Real-Time

reporting access ECC data via SLT • Ability to merge structured and unstructured data for Agile data marts • Superior

performance • Flexibility to meet

changing business needs

• Best in class tools.

HANA DB engine

Common Regional Information & Solutions Global Information & Solutions / Enterprise Layer

SAP BW 7.3 Extended BI SAP BW 7.3 Extended BI

SAP BW 7.3 Extended BI

Strategic Dashboards

(SAP Xcelsius) Visualization (Tableau) (SAP BOBJ, COGNOS)Operational Reporting

Integration & Consolidation of regional SAP BW and non-SAP platforms

NA EMEA LATAM ASPAC

MDM/G Information Steward SAP DataServices SAP SLT DataRep NA ECC APO xxx LATAM ECC APO xxx ASPAC ECC APO xxx EMEA ECC APO xxx