© 2005 IBM Corporation
Delivering Product Information Management (PIM)
Sunil Mahajan Sunil Mahajan -- Center of Excellence Center of Excellence -- EuropeEurope
IBM Software Group
Information Management
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Agenda
Overview Product Information Management (PIM)
PIM Implementation Methodology & Approach
Summary case studies
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Master Data Management MarketMaster data management is a large, fast growing, highly fragmented market
– $4 billion software and services in 2005 (IDC)
– >15% CAGR (Compound Annual Growth Rate) through 2009
– Key infrastructure requirement across all industries
– Consolidation occurring across all segments– Complexity of integration, scalability, product
extensions, and service skills driving investments
IBM views this market as core to Services Oriented Architecture (SOA) strategies
– Enable the delivery of composite applications across heterogeneous environments
– Drive efficiencies and new processes in multi-product, multi-channel, multi-geography based companies
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What is Product Information Management ?
Product Information Management (PIM) is one component of Master Data Management that establishes a single, integrated, consistent view of product information inside and outside an enterprise.
As customers become global on demand e-businesses, a golden source of product information is needed to address business needs such as efficient New Product Introduction (NPI), ecommerce, supply chain management and trading partner management.
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Key Issues in Managing Product Information
High costs and long lead times of creating, maintaining and publishing product information
Richer information needed at the point of purchase to drive higher sales
Globalization driving the need to standardize product information internally and externally
Increasing number of sales channels & customer touch points with shorter product lifespan
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Marketing BenefitsMarketing Benefits
Cross
Cross -- Sell &
Up
Sell & U
p -- sellsell
Promo. PricePromo. Price
SizesSizes
ColorsColors
ImagesImages
Supplier Supplier DatabaseDatabase
Buyer Buyer Behavior Behavior
ModelModel
Supplier Supplier Content Content
RepositoryRepository
Supplier Supplier DatabaseDatabase
Finance Finance SystemSystem
Mfg. Mfg. SystemSystem
Web Hierarchy and CategoriesWeb Hierarchy and Categories
The breadth and variety of Product Information: 1,000 + attributes per product, touches every organization
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Addressing Strategic Business NeedsManaging Multi-Channel: How Is It Done Today??
The breadth and variety of Product Content: >1,000 elements per product, touching every organization
Long Description
Short Description
Comparisons
Web Hierarchy
Images
Price
Cross-Sell Relationships
Documents Technical Specifications
Typically scattered across the value chain
In support of individual marketing strategies, campaigns
Specific to channels
Structured & unstructured
Inconsistent across touch points
Requiring manual correction
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CollaborativePlanning
Forecasting &Replenishment
(CPFR)Merchandise
Planning MarkdownOptimisationNew
Productintro
Price Optimisation
PromotionsMgt
Productsourcing
End of life
New Item Form
ContractsAuthorize
/Reject
Category Managers
Vendor ManagersLogistics
IT
Price Update
Regional Managers
Brand Managers Customer
Support
Promotion Mgrs
Category Managers
Current Processes – Multiple Siloed Data Repositories, Duplicate Data Entry, EDI, paper, spreadsheets, phone, fax, email
SUPPLIERS
Data Pools e.g.Agentrics
3rd Parties
EDI &Manual Entry
Spread sheets
Images,DocsExcel
Best of BreedERP Print Systems
Flyers, Inserts,Catalogs
Website
Kiosks
Shelf Tags,Signage
RFID
Legacy
Call Centers
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Impact of Poor Product Data and Processes
Re-Keyed Data, Manual Labor
Lost Customer Satisfaction
Slow Time to Market
Order Mismatch
Inventory Overstock
Redundant Systems
Inaccurate Product & Price Data
Poor Insight into Defects
Can’t Scale to Support Strategic
Initiatives
Current Processes: Paper, Phone, Fax, EDI, Email…
SellDesign MarketManufacture Service Warranty
Current Processes: Paper, Phone, Fax, EDI, Email…
Lost SalesStock Returns
More than half of the automotive companies [surveyed] store their master product information in miscellaneous systems outside of ERP systems, contained in an average of six systems. What’s more, 40% of our survey respondents have a limited level of information sharing via batch data exchanges between product and customer systems while another 20% have no integration capabilities at all. “TREAD ACT: A Multi-Billion Dollar Black Hole”
“ “
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ItemItem
Core item attributesRelationship with other items• Packaging(each, pack, case, pallet etc)• Substitution• Complementary• Bundles/prepacks
Product
ItemItem
Core item attributesRelationship with other items• Packaging(each, pack, case, pallet etc)• Substitution• Complementary• Bundles/prepacks
Category specific attributes• e.g. Cigar Style, Cigar Ring Gauge• Item map to internal and external
category schema
CategoryCategory
Trading PartnerTrading Partner• Retailer warehouses that are
authorized to receive and stock the item
• Retailer stores that the item is sold through
Product
ItemItem
Core item attributesRelationship with other items• Packaging(each, pack, case, pallet etc)• Substitution• Complementary• Bundles/prepacks
Category specific attributes• e.g. Cigar Style, Cigar Ring Gauge• Item map to internal and external
category schema
CategoryCategory
• Retailer and target market specific trade conditions (pricing, promotion...)
• Retailer specific attributes (e.g. MOPS or commodity code)
Solve the Multi-Dimensional Business Problem
ProductOrganizationOrganization
Trading PartnerTrading Partner• Retailer warehouses that are
authorized to receive and stock the item
• Retailer stores that the item is sold through
Product
ItemItem
Core item attributesRelationship with other items• Packaging(each, pack, case, pallet etc)• Substitution• Complementary• Bundles/prepacks
Category specific attributes• e.g. Cigar Style, Cigar Ring Gauge• Item map to internal and external
category schema
CategoryCategory
• Retailer and target market specific trade conditions (pricing, promotion...)
• Retailer specific attributes (e.g. MOPS or commodity code)
• Business unit, brand family the item belongs to
• Brand or category manager responsible for the item
• Manufacturer/Distributor Warehouses that stock and ship item
LocationLocation
Locale specific attributes• Localized(French/German/Spanish…)
description of the item• Unit of measure (Metric Vs British),
net content, net weight• Currency• Local government compliance
(e.g.: gluten claim, nut/seed content claim etc)
OrganizationOrganization
Trading PartnerTrading Partner• Retailer warehouses that are
authorized to receive and stock the item
• Retailer stores that the item is sold through
Product
ItemItem
Core item attributesRelationship with other items• Packaging(each, pack, case, pallet etc)• Substitution• Complementary• Bundles/prepacks
Category specific attributes• e.g. Cigar Style, Cigar Ring Gauge• Item map to internal and external
category schema
CategoryCategory
• Retailer and target market specific trade conditions (pricing, promotion...)
• Retailer specific attributes (e.g. MOPS or commodity code)
• Business unit, brand family the item belongs to
• Brand or category manager responsible for the item
• Manufacturer/Distributor Warehouses that stock and ship item
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CPFRReturns
End ofLife
Browser-based
UnlimitedAttributes
MultipleCategorizations
Multi-enterprise
Standards-based
Security andAudit
ERPERP LegacyLegacySystemsSystems
DocumentDocumentManagementManagement
SystemsSystems
Images,Images,DocsDocsExcelExcel
NewProduct
Intro
PricingOptimization
PromotionsMgmt
TradeTerms
Product
Location
Organi-zation
TradingPartner
3) Integrating and synchronizing this information internally with legacy systems, enterprise applications, repositories and masters
I n t e g r a t e – T r a n s f o r m – H a r m o n i z e
4) Workflow and solutions for supporting multi-department and multi-enterprise business processes
2) Tools for modeling, managing, capturing
and creating this information with high user productivity and
high information quality
1) A flexible, scalable repository managing and linking product,
location, trading partner, organization,
and terms of trade information
T H E G O L D E N S O U R C E O F P R O D U C T I N F O R M A T I O N
5) Exchanging and synchronizing this
information externally with
business partners
6) Leveraging this information via
many internal and external electronic and human touch
points
SUPPLIER PORTAL
Data Pools e.gAgentrics
3rd Parties
EDI &Manual Entry
WEB FORMSFlyers, Inserts,
Catalogs
ATGWebsite
Kiosks
Shelf Tags,Signage
RFID
Call Centers
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Product Information Management - ROI
Reduce Costs• Labor costs (aggregating, re-keying, enriching, syndicating data)• Catalog, Invoice and shipping errors
Increase Revenue• Improve Channel Sales
• Speed New Product Introduction with current, localized product data• Tailor product mix and pricing by channel
• Increase Order Size and Accuracy• Increase cross-sell and upsell volume• Manage product inter-relationships: substitutes, accessories,
compatibilities• Ship the right products
• Improve Trading Partner Synchronization• Compliance with local mandates such as Transora, Sinfos, GS1/EAN,
WWRE, etc. (manage product, location and trade terms info)
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Agenda
Product Information Management (PIM)
PIM Implementation Methodology & Approach
Summary case studies
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Phased Implementation Approach Scope
Phase 1Phase 1
Content Model ImplementationSome connectivity solutions and workflow processes to support legacy systems Legacy Data Migration
Building the Foundation
Phase 3Phase 3
RFID, Location, EIM, etc.Configuration of localization requirements for user communities & rollout
Globalization& Rollout
Phase 2Phase 2
Content Model customizations for User & Operating Company requirements Expansion of workflow processes to support end-state legacy system de-commissioningConnectivity solutions and workflow processes to support data synchronization
Building theOrganization &
Data Synchronization
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Overall Implementation Methodology Approach
DEPLOYDEPLOYTESTTEST
DESIGNDESIGN
DISCOVERYDISCOVERYPLANPLAN
BUILDBUILD
DEVELOPMENT
The Development phase supports an incremental design and build effort in which each requirement is built towards supporting a WPC production environment. Throughout the Development phase, customer reviews will be conducted to ensure the right amount of review and feedback is obtained to ensure acceptance in the customer’s environment.
The purpose of the Discovery stage of the project is to dive deep into each of the key requirements identified in the Plan phase which will be used as the basis for the design of the WPC configuration.
Events leading up to and including go-live make up the Deployment Phase. In addition, any steps necessary to prepare the organization for the move to a production environment are completed.
The purpose of the test phase is to provide an evaluation period to validate all developed requirements through System, Performance, and User Acceptance Testing Scenarios.
The Plan Phase serves as a period to understand and confirm the overall program objectives as well as to solidify scope for an initial phase. A program roadmap will also be formally defined and documented. Budgets and resources are to be finalized during this phase.
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Plan PhaseOBJECTIVES
Validate and re-affirm customer expectations on delivery goalsGather high level requirements and lock down scope for Phase 1. Develop a program roadmap outlining high-level scope for future phases.Identify & Mobilize Phase 1 Project TeamDevelop and obtain a signed Phase 1 Statement of Work Agreement
DELIVERABLESPlan Phase Kick-Off PresentationPhase 1 Statement of WorkProgram Overview DocumentHigh-level Phase 1 Project Plan
Including detailed Discovery Phase planningHigh-Level Phase 1 Scope Requirements (Requirements Tracking Matrix)Deliverable Acceptance Certificate for Plan Phase
RESOURCESWPC: Practice Manager (part time), Project Manager, Solution ArchitectCustomer (as needed): Project Sponsor, Project Manager, Business SME, IT Architect, Business End Users, IT Systems Resources
PLANPLAN
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Discovery Phase
OBJECTIVESProvide WPC demo to customer stakeholders to ensure understanding of product and capabilitiesDocument and detail WPC scope requirements and obtain customer sign-off.Identification and preparation of systems environment. Finalize detailed Phase 1 Project Plan
DELIVERABLESWPC Detailed Requirements DocumentsUpdated High-Level Scope Requirements (Requirements Tracking Matrix)IT Environment SpecificationConfigured Development EnvironmentDetailed Phase 1 Project PlanDeliverable Acceptance Certificate for Discovery Phase
RESOURCESWPC: Practice Manager (as needed), Project Manager, Solution Architect, Sr. Consultants & Consultants, Technical Architect (part time)Customer (as needed): Project Sponsor, Project Manager, Business SME, IT Architect, Business End Users, IT Systems Resources
DISCOVERYDISCOVERY
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OBJECTIVESIncrementally design, build, and unit test functional and technical requirementsConfigure Test & Production EnvironmentsProvide user functionality reviews of unit tested functionality to customerEstablish a production migration plan to address legacy dataDevelop strategies for communication, test, and training
DELIVERABLESWPC Design DocumentsUnit & System Test Cases and ScriptsUser Acceptance Test CasesCommunications, Training, & Test PlansDeliverable Acceptance Certificate for Development Phase
ResourcesWPC: Practice Manager (as needed), Project Manager, Solution Architect, Sr. Consultants & Consultants, Technical Architect (part time)Customer (as needed): Project Sponsor, Project Manager, Business SME, IT Architect, Business End Users, IT Systems Resources
Development PhaseDESIGN
DESIGN
BUILDBUILD
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OBJECTIVESMigrate development environment to test environmentExecute end to end system testing on WPC implementation. (flow through, end-to-end testing including integration touch points)Provide high-level, informal training to User Acceptance TestersObtain User Acceptance of WPC Application through User Acceptance TestingDefine Production Cutover Requirements and prepare for deployment
DELIVERABLESTest Status & Issues TrackingProduction Cutover ChecklistDeliverable Acceptance Certificate for Development Phase
RESOURCESWPC: Practice Manager (as needed), Project Manager, Solution Architect, Sr. Consultants & ConsultantsCustomer (as needed): Project Sponsor, Project Manager, Business SME, IT Architect, Business End Users, IT Systems Resources
Test PhaseTESTTEST
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OBJECTIVESConduct end-user trainingProvide seamless migration from Test to Production EnvironmentConduct due diligence on migrated Production Environment prior to Go-LiveClient is live on WPC
DELIVERABLESEnd-User Training MaterialDeployed WPC Production EnvironmentDeliverable Acceptance Certificate for Deployment Phase
RESOURCESWPC: Practice Manager (as needed), Project Manager, Sr. Consultants & ConsultantsCustomer (as needed): Project Sponsor, Project Manager, Business SME, IT Architect, Business End Users, IT Systems Resources
Deploy PhaseDEPLOYDEPLOY
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OBJECTIVESProvide overall project status Track Issues and Action ItemsMaintain Project Timelines & BudgetManage ChangePromote WPC Solution and Program Quality Assurance checksMaintain Project Deliverables such as Contact Lists and Project Org Structure
TOOLSProject Status ReportProject PlanProject Budget Tracking ToolAction Items/Issues Tracking DocumentContact ListProgram & Solution QA DocumentWPC Support Transition List
Project Management On-Going Activities
DEPLOYDEPLOYTESTTESTDESIGNDESIGN
DISCOVERYDISCOVERYPLANPLAN
BUILDBUILD
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WebSphere Product CenterImplementation Methodology Benefits
Delivery of an on-time, stabile, and complete solution meeting the identified requirements of the project and the expectations of the client.
Project Management
WebSphere Product Center Implementation Best Practices
Change Management
Value Focus
Overall Customer Satisfaction
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Quality AssuranceAs part of the IPS-UP Implementation Methodology, a series of Quality Assurance Reviews are executed during the implementation.
Program Quality Assurance (PQA)
– Overall project health check performed by another SIM– Rough timing for execution
• End of inception phase and/or elaboration phaseSolution Quality Assurance (SQA)
– Overall solution health check• Competency teams and COE will help to further define and standardize
– Rough timing for execution• End of elaboration phase, coupled with PQA
Both the PQA and SQA reviews are independent review activities conducted at least once during an IPS implementation, and are used to help ensure high quality, profitable IPS solutions are implemented which fulfill our customer's requirements.
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Implementation approach - Major Work streams
Data Migration and CleansingScope of data to be migrated Variety of data sourcesAssess as-is data quality/cleansing and estimate gapNecessary scripts to be built for the first load
Business ProcessVariety of processes (automated, deferred, manually triggered, conditionally triggered, …)User interaction per process and per process stepAre processes common or specific across countries, geographies, user groups?User populations, and associated security settings (access rights)
Integration with Upstream & DownstreamVariety of data sources and data destinationsVariety of formats, content structures, …Integration dimensions (delta, synch/asynch, frequency, ….)Import controls and reporting level
Define the Data ModelEntities and relationshipsNumber of classifications and hierarchiesCategory specific attributes (product type, country, logistics, etc.)Validation rules, business rules, at the entity or attribute levelAttribute types (date, text, numeric, links, images…)Reference tablesLanguages
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Implementation Approach – Best Practice
Phased Approach– Quick wins avoid over-engineering – Promotes gradual assimilation – Reduces risk – Faster overall implementations – Increased business benefits
Define a Phase 1 Scope with the following objectives:– Manageable scope– Ability to rapidly demonstrate results– Can be used as a leverage to secure further funding
for other phases
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Implementation approach - Dimensions for ConsiderationPrioritisation of business needs– Time to accomplish a task (current versus need)– Acceptability of current solution
Identification of core business function– Frequency of a task (core = most frequent)– Breadth of business represented (core = widest breadth)
Identification of exceptional / edge requirements– Category-specific needs (data, validation, process, etc)
Identification of “known knowledge” and “grey areas”– Introduction of new business concepts– New processes and resulting business change requirements
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WPC Implementation Efforts: Main drivers
Number and complexity of
screens
Extending standard WPC functionality with custom screens
Customtooling
Number of processes
Number of steps and rules per
Step
Definition of the business processes that manage product information
Workflows
Number of RolesConfiguring roles and access rightsSecurity
Data cleansing required
Num. and complexity of data
types to load
Loading all items, suppliers, configuration data, etc…
DataMigration &
cleansing
Num. and formats of interfaces
Num. and complexity of controls
Import/Export of data via files, messages, web services
SystemInterfaces
Number of catalogues / hierarchies
Number of attributes, relations
Number and complexity of
business rules
Structure of the data to be managed: entities,
attributes, relations, basic business rules
Presentation of items within WPC standard
screens : views, tabs, standard searches.
Contentmodel
Main Effort DriversOverviewTopic
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Key Success FactorsA phased and shared vision with realistic ROI goals
Focused customer involvement in the structuring decisions (Design)
Steering Committee with a focus on risk mitigation and decision making
Use of a proven implementation methodology
A robust Data Model as the foundation of the PIM solution
Don’t underestimate change management, especially for business processes
Integration & Data Migration are dedicated « sub-projects »
Involvement of the key end-users is imperative they are the real customer
Good local resources are always a good long term investment
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Implementations Approach – RecommendationsJointly define feasible incremental phases, to:
– Lower complexity and risk
– Provide high-priority business benefit more quickly
– Ease the learning curve of a new system
Criteria to address for phasing
– Prioritisation of business needs
– Identification of core business function• Core product information and assurance (e.g. validations)• Core business processes• Core integration points
– Cost / benefit analysis against exceptional (non-core) requirements
– Up-front identification of “known knowledge” and “grey areas”
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Agenda
Product Information Management (PIM)
PIM Implementation Methodology & Approach
Summary case studies
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The most experience with Product Information Management implementations– Largest customers in the world
– Multi-faceted requirements
– Multiple verticals
Ranked as leader by industry analysts
Out of the box functionality
Excels in heterogeneous environments
IBM WebSphere Product Center
WebSphere® Product Center allows companies to create a single, up-to-date repository of product information that can be used throughout their organization for
strategic business initiatives.
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Use Case: NXP Semiconductors
– Integrate product design process with new product introduction sales & marketing processes
– Speed average time-to-market– Gain control over multiple fragmented processes– Deliver RosettaNet compliant product information to trading partners– Decrease litigation exposure via accurate data from central repository
– Improve global quality and integrity of product information– Reduce cost and time-to-market– Faster review cycles through automated workflow– Compliance with industry standards (RosettaNet)– Scalable and flexible source of product
information truth– Parametric search capabilities
Business Need
IBM WebSphere Product Center Solution
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Solution Value Proposition:Centralize clean and consistent product information Enable partner access and input of their product informationMake product information available for internal and external systems such as commerce
Brammer’s current product information processes were restricting the company from delivering superior customer service and reacting quickly to market changes.
Brammer wanted to address the following issues: (1) customer cross sell and up sell; (2) customer catalogs in native language; and (3) manage incoming and outgoing data changes throughout the supply chain
Pan-European value added wholesaler & industrial services group
Solution Results:The new master data repository manages 3-5 million items with over 15,000 item changes/additions and more than 300,000 price changes per year. Item information is synchronized with 10 country-level ERP systems (mostly SAP)New part introduction & updates via workflow, with attribute-level audit trail Supplier portal integration allows suppliers to create & maintain part information200-250 e-catalogs have been generated in different languages A scalable solution that can expand to manage supplier and employee information
Case Study: Responding to the ChallengeMDM for Product Optimization Customer Success Story
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Case Study: Responding to the ChallengeMDM for Product Optimization Customer Success Story
Overview: A Pan European value added distributor with over 220 locations in 10 countries providing parts and services for maintenance, repair and on-going operations of machinery. Their products include bearings, fluid power, gearboxes, health and safety, belts and pulleys, chains and sprockets, motors among others.
Business Challenges Business Goals
IncreaseRevenue
Improve Customer
Experience
Improve Trading Partner
Collaboration
Brammer could not cross sell and up sell their customers with the current system.
Brammer was not able to deliver product information to each customer in the appropriate native language.
Brammer wanted to be responsive to the dynamic market by reacting quickly to changes in products and prices.
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Product Data SynchronizationAn Essential Part of the Product Information ManagementProcess
Solution Components: IBM delivered an internal data synchronization solution to Brammer that included WebSphere Product Center. Brammer’s product information management solution gave Brammer a single repository which they will use to manage up to 3 million items.
Solution Business GoalsCreate master data repository to manage 3-5 million items with over 15,000
item changes/additions, 300,000+ price changes/yearSynchronize item information with 10 country-level ERP systems (mostly
SAP instances) and other applicationsConsolidate, standardize and create item master data in WebSphere Product
Center
Provide output to 200-250 e-catalogs in different languages and for various e-procurement systemsSupport business process for new part introduction and update via workflow
Integrate with supplier portal to allow suppliers to create & maintain part informationExpand repository in future to manage supplier & employee dataProvide scalable solution to handle Brammer’s growth requirements
IncreaseRevenue
Improve Customer
Experience
Improve Trading Partner
Collaboration
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Heinz – Master Data Management (core WPC) example… the customer’s problems
Captured master dataTrapped and siloed dataHindered cross-system collaborationMultiple data maintenance
Unaligned master data knowledgeInconsistent master dataNo duplicates recognitionCumbersome system-wide analytics
A patchwork of processesFlow is hindered by technical restrictionsPoint-to-point process linksHigh alignment efforts
BPCS
Movex
Mercia Lincs
Ariba
NDC
Universell
Manugistics
SAP
VIPER Data Pool
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IBM WPC Solution for Heinz
Shared master dataHarmonizedExtendibleOne-stop data maintenance
Aligned master data knowledgeCentral master data repositoryDuplicate recognitionSynchronized analytics
Federated processesAccelerated process flowImprove opening leadtimeFast track procedureOpen for localizationControlled replication
BPCS
Movex
Mercia Lincs
AribaUniversell
Manugistics
SAP
NDC
MDR/PC
Data PoolVIPER
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