“Only with correct and reliable data can an organization have the necessary transparency to fully understand developments in the business, provide supe-rior service, and make the right decisions to drive a successful strategy.”
Karl-Ludwig KleyChairmanoftheExecutiveBoard,
Merck
Statement
CAMeLOT MANAGEMENTCONSULTANTSCUSTOMERSUCCESSSTORy
Combininginnovativesolutionswithacollaborativeapproach
Global Material Master Data Management at Merck
ValueChainExcellence.StrategytoResults.
Merckhasemphasizedandgivenprioritytoglobalmaster
datainasignificantexcellenceprogram.Managementex-
ecutiveshaveidentifiedtheneedtoestablishcorporate-wide
standards–“one common language”–whenmoreefficiency
andagilityisrequiredforprocessmanagement“in the digi-
tizing business process world”.Toaddressthesestrategic
objectives,theexecutiveboarddevelopeditsglobalmaster
datamanagementvision–reachingoutforexcellenceinall
areasofcorporateMDM.Consequentlyaholistictransfor-
mationprogramhasbeenlaunchedcoveringMDMstrategy,
organization,governance,processes,dataqualityand
technology.
CAMeLOT MANAGEMENTCONSULTANTSCUSTOMERSUCCESSSTORy
The project approach
InafirststepanMDMstrategyprojectwasconductedby
MercktogetherwithCamelotManagementConsultants.The
projectdefinedtheconceptsforthemainaspectsofglobal
materialmasterdatamanagementatMerck.Itwasdecided
tolaunchaglobalprogramcreatingaconsistentapproachto
capturingandmanagingmasterdataacrossthecompanyto
runabetterandmoreprofitablebusiness.
The Material Master Data Management program had the
following overall ojectives:
• Establishandre-alignclearrolesandresponsibilitiesfor
corporatemasterdatamanagement
• Implementationofaharmonizedapproachforglobal
productintroduction
• Enableglobalmanagementofmaterialsoveritsentire
lifecycle
• ReplacementoftheexistingMDMsystemwithnew
state-of-theartMDMtechnology
• Extendthescopeofgloballygovernedmaterials
Theprogramwasdividedintofourmodulestobedelivered
successivelyinthetimeframeoftwoyears.Eachmodule
consistedofindividualprojectsthatweremanagedbyMerck’s
GlobalMasterDataManagementteamsupportedbyCamelot
consultantsandbyrepresentativesfromthebusinessunits.
Joerg SchwambergerProgramManagerM3,Merck
“We were looking for a master-data governance application with a future – one that would enable us to harmonize master data for unified processes across our global business.”
Statement
Definecorporate MDM strategy andimplementationroadmap
Buildthebasicsandimprovethe technological basis / -platform
Enhancecapabilitiesandalign processesandorganization
DeliverMDMexcellencebytrackingdata quality andremovingremainingtechnicalrestrictions
LeverageglobalMDMbenefitsincludinglocal attributesandrolling out globally harmonized concepts
MDM strategy
Module 4
Module 1
Module 2
Module 3
4
1
2
13
GlobalMaterialMasterDataManagementatMerckCombininginnovativesolutionswithacollaborativeapproach
MDM strategy: “Building up and mobilizing corporate MDM strategy” ThefutureMDMstrategyhasbeendevelopedandalignedwithbusinessprioritiesandstakeholders.
Mobilizationacrosstheorganizationwithintensivecommunicationandtransformationactionshavebeenconducted.
Module 1: “Building the technological basis / -platform” Inmodule1,theexistingSAPMDM3.0systemwasreplacedwiththecurrentstate-of-the-arttechnologySAPMDG-M
(MasterDataGovernance–Materials).WhereasCamelotManagementConsultantssupportedthesolutiondesign,the
implementationofthesolutionwasrealizedbyCamelotITLabconsultants.Closeco-operationandefficientprocesses
betweenallparties,businessandIT,ledtoasuccessfulandsmoothgo-live.SAPMasterDataGovernancewasimplemented
onscheduleandwithinbudget.SAPMasterDataGovernancesolutionprovidesMerckwitharobust,extensibleframe-
workforharmonizingthecollection,managementanduseofmasterdataglobally.
Module 2: “enhancing the MDM capabilities in the organization”Inmodule2,thefocuswasonthedefinitionandintroductionofnewrolesandenhancedworkflowcapabilitiesformate-
rialmasterdatamaintenance.Aconceptwasdesignedandimplementedformateriallifecyclemanagementasastand-
ardizedprocesstophaseoutmaterialsacrossallERPsystemsandthecompany’sglobalreportingsystems.Alsothescope
ofgloballygovernedmaterialswasextendedbymigratingformerlylocallymanagedmaterialsintotheglobalMDG-M
system.ThisisregardedasamajorcornerstoneinstrengtheningMerck’scentralmasterdatagovernance.
Module 3: “Introducing advanced and sustainable Data Quality concept”Inmodule3,MerckandCamelotstartedamasterdataqualityprojectwiththeobjectivetoimplementasolutionfordata
qualitymeasurement.Asafirststep,keyperformanceindicatorstomeasuredataqualityweredefined.Inasecondstep,
SAPInformationSteward–asystemusedtocalculateandvisualizedataqualitybasedonpre-definedbusinessrules–was
implementedbyCamelotITLab.Supportedbyreportsandscorecards,thismodulehasenabledMercktoquicklyassess
itsmasterdataqualityonarepeatablebasis.Incorrectdatacaneasilybeidentifiedandcorrectedwithmassworkflows
directly.
Module 4: “establishing end-to-end workflows for the new MDM governance model”Inmodule4,thecoredeliverablewasthestandardizationofend-to-endmaterialmaintenanceworkflows.Thismeansthe
maintenanceandapprovalof“globalattributes”inMDG-Mtriggersthesubsequentmaintenanceof“localattributes”in
ERPbyanintegratedworkflow.Afterthestandardtemplatewithallnecessaryworkflowstepswasdesigned,SAPBusi-
nessProcessManagementwaschosenastooltoimplementtheworkflowsequence.Mercknowhastheabilitytosteerthe
materialmaintenanceprocessthecreationofglobalattributesuntilthematerialisready-for-executiononplantlevel.
1
2
3
4
The results
TheMDMprogramatMerckhasdefinedtheindustrybest
practicebyleveraginglatesttechnologiesandbyaconse-
quentimplementationofinnovativeconceptswithinallMDM
areas.
Oneofthekeysuccessfactorswastheholistic approachand
thedriveoftheteamduringtherealizationofthecomplete
program.Startingwiththeoverall MDM strategy to the
development and implementation of global concepts and
systemsformasterdatamanagement,CamelotManagement
ConsultantsandCamelotITLabsupportedMerckinatwo
yearssignificant transformation programuntilfinalresults
havebeensuccessfullydelivered.
AllconceptsintroducedweretailoredtofittotheMerck
businessrequirementstogetherwithMerck’sGlobalMaster
DataManagementteam.Thisveryclosecollaborationaswell
asthetrustfulandintegratedco-operationbetweenbusiness
andITwasanotherimportantsuccessfactorduringtheMDM
program.
Jürgen JostHeadofGlobalMasterDataManagement,Merck
”First the MDM implementation took Merck one major step further on the way to process excellence in material master data management and more is still to come. One of the most important success factors so far was the close and trustful collaboration between both parts of the team - business and IT. “
Statement
Bjoern ebelingAssociateDirectorInformationServicesMDMandIntegrationApplications,Merck
“By deploying SAP Master Data Governance, we are able to meet our high requirements for the quality of our master data. This innovative and stable solution also supports ownership policies and harmonized processes in material master data management.”
Statement
RoadshowofMDMprogramatMerckDarmstadt
Organization• Productownershipconceptrolled-out:newroletoenable
centralizedportfoliomanagementbycontrollingmaterial
creationsandsteeringphase-outprocesses.
• Fieldownershipconceptrolled-out:newroletoenable
clearresponsibilitiesfortheusageofglobalattributesand
thedefinitionofrelatedbusinessrules.
Governance• Complexbusinessrulesimplemented:around350different
validationandderivationruleshavebeenandimplement-
edtoenablethe“first-time-right”principleandtosupport
dialogusers.
• MetadatamanagementwithMDG-X:theSAPMDGframe-
workwasusedtodevelopacustomizedapplicationforthe
consistentmaintenanceofproducthierarchies.
Processes• Lifecyclecontrolestablished:globalprocesssupporting
productownertomanagetheirportfoliobydifferent
materialstatuswithadirecteffectonERP-transactions.
• Massmaintenanceenhanced:massworkflowswereimple-
mentedwithdataerrortracingfunctionalitiestoreduce
manualeffortincaseofdatacorrections.
The MDM transformation highlights at Merck
Data quality• Dataqualityreportingimplemented:tocalculatedata
qualitybasedonpre-definedbusinessrules,SAPInfor-
mationStewardwasimplementedtovisualizereporting
resultsonscorecards.
• Inheritanceconceptrolled-out:fieldvaluesgetinherited
betweenmasterrecordsandassignedmaterials.Inherited
valuescannotbechangedbydialoguserstoensuredata
consistency.
Technology• Processperformancereportingimplemented:SAPBusiness
ContextViewerwasimplementedtomeasureworkflow
cycletimesandthenumberofchangerequestswith
drill-downoptions.
• End-to-endworkflowsimplemented:SAPBusinessProcess
Managementwasimplementedtoguideusersfromthe
maintenanceof“globalattributes”inMDG-Mtothe
subsequentmaintenanceof“localattributes”inERPby
anintegratedworkflow.
Product/MaterialLifecycleManagementatMerck
Dataqualityscorecardin
SAPInformationSteward
Numberoftransactionsonmaterialno.
X-plant material statusin SAP MDG-M
Phase
10 20 30 40 50 60 70 80
Time
Launch phase Active phase Phase out period Inactivation phase
Draft (ToBe)Distributed
Globallyapproved
Tobephasedout
Phasedout
Tobeinactivated
Inactivated(avail.forreporting)
Archived/retired
The MDM transformation highlights at Merck
Camelot Management Consultants
CamelotManagementConsultantsprovidesstrategicand
organizationalconsultingwithintheCamelotGroup.The
companyisoneoftheleadingmanagementconsultancies
fortheoptimizationofsupplychainsfocusingprimarilyon
thechemicalandpharmaceuticalindustries.CamelotGroup
ispresentworldwidewithmorethan1,400consultants;
200workinginGermanyandSwitzerland.Duetothestrong
collaborationwithrenownedtechnologyspecialists,Camelot
ManagementConsultantsguaranteesprojectsuccessinall
phasesofconsulting:fromstrategicdecision-makingto
evaluationandtechnicalimplementation.
Camelot Management Consultants AG
HenrikBaumeier
Partner·HeadofMasterDataManagement
Theodor-Heuss-Anlage12·68165Mannheim·Germany
Phone+4962186298-0·www.camelot-mc.com
ValueChainExcellence.StrategytoResults.
Your contact
Merck
Merckisaleadingpharmaceutical,chemicalandlifescience
companywithtotalrevenuesofEUR11.2billionin2012,a
historythatbeganin1668,andafutureshapedbyapprox.
38,000employeesin66countries.Itssuccessischaracterized
byinnovationsfromentrepreneurialemployees.Merck’sop-
eratingactivitiescomeundertheumbrellaofMerck,inwhich
theMerckfamilyholdsanapproximately70%interestand
freeshareholdersowntheremainingapproximately30%.In
1917theU.S.subsidiaryMerck&Co.wasexpropriatedand
hasbeenanindependentcompanyeversince.
Merck KGaA
JürgenJost
HeadofGlobalMasterDataManagement
FrankfurterStraße250·64293Darmstadt·Germany
Phone+49615172-0·www.merckgroup.com
Camelot’s holistic MDM approachCAMeLOT ServICeS
MDMStrategyRequirementAnalysis&BusinessCaseMDMProviderSelection
MDMOrganization&GovernanceMDMProcesses&ArchitectureBlueprint&TechnicalSpecification
TechnicalImplementationOrganizationalChangeTrainings&Know-howTransfer
DataQualityManagementMasterDataServiceManagementMDMKnowledgeManagement
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