Global Material Master Data Management at Merck Toolkits/The SAP...MDM strategy: “Building up and mobilizing corporate MDM strategy” The future MDM strategy has been developed and aligned with business priorities and stakeholders.

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  • 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

    standardsone common languagewhenmoreefficiency

    andagilityisrequiredforprocessmanagementin the digi-

    tizing business process world.Toaddressthesestrategic

    objectives,theexecutiveboarddevelopeditsglobalmaster

    datamanagementvisionreachingoutforexcellenceinall

    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

    consistedofindividualprojectsthatweremanagedbyMercks

    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

    (MasterDataGovernanceMaterials).WhereasCamelotManagementConsultantssupportedthesolutiondesign,the

    implementationofthesolutionwasrealizedbyCamelotITLabconsultants.Closeco-operationandefficientprocesses

    betweenallparties,businessandIT,ledtoasuccessfulandsmoothgo-live.SAPMasterDataGovernancewasimplemented

    onscheduleandwithinbudget.SAPMasterDataGovernancesolutionprovidesMerckwitharobust,extensibleframe-

    workforharmonizingthecollection,managementanduseofmasterdataglobally.

    Module 2: enhancing the MDM capabilities in the organizationInmodule2,thefocuswasonthedefinitionandintroductionofnewrolesandenhancedworkflowcapabilitiesformate-

    rialmasterdatamaintenance.Aconceptwasdesignedandimplementedformateriallifecyclemanagementasastand-

    ardizedprocesstophaseoutmaterialsacrossallERPsystemsandthecompanysglobalreportingsystems.Alsothescope

    ofgloballygovernedmaterialswasextendedbymigratingformerlylocallymanagedmaterialsintotheglobalMDG-M

    system.ThisisregardedasamajorcornerstoneinstrengtheningMerckscentralmasterdatagovernance.

    Module 3: Introducing advanced and sustainable Data Quality conceptInmodule3,MerckandCamelotstartedamasterdataqualityprojectwiththeobjectivetoimplementasolutionfordata

    qualitymeasurement.Asafirststep,keyperformanceindicatorstomeasuredataqualityweredefined.Inasecondstep,

    SAPInformationStewardasystemusedtocalculateandvisualizedataqualitybasedonpre-definedbusinessruleswas

    implementedbyCamelotITLab.Supportedbyreportsandscorecards,thismodulehasenabledMercktoquicklyassess

    itsmasterdataqualityonarepeatablebasis.Incorrectdatacaneasilybeidentifiedandcorrectedwithmassworkflows

    directly.

    Module 4: establishing end-to-end workflows for the new MDM governance modelInmodule4,thecoredeliverablewasthestandardizationofend-to-endmaterialmaintenanceworkflows.Thismeansthe

    maintenanceandapprovalofglobalattributesinMDG-Mtriggersthesubsequentmaintenanceoflocalattributesin

    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

    businessrequirementstogetherwithMercksGlobalMaster

    DataManagementteam.Thisveryclosecollaborationaswell

    asthetrustfulandintegratedco-operationbetweenbusiness

    andITwasanotherimportantsuccessfactorduringtheMDM

    program.

    Jrgen 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-

    edtoenablethefirst-time-rightprincipleandtosupport

    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

    maintenanceofglobalattributesinMDG-Mtothe

    subsequentmaintenanceoflocalattributesinERPby

    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

    PartnerHeadofMasterDataManagement

    Theodor-Heuss-Anlage1268165MannheimGermany

    Phone+4962186298-0www.camelot-mc.com

    ValueChainExcellence.StrategytoResults.

    Your contact

    Merck

    Merckisaleadingpharmaceutical,chemicalandlifescience

    companywithtotalrevenuesofEUR11.2billionin2012,a

    historythatbeganin1668,andafutureshapedbyapprox.

    38,000employeesin66countries.Itssuccessischaracterized

    byinnovationsfromentrepreneurialemployees.Mercksop-

    eratingactivitiescomeundertheumbrellaofMerck,inwhich

    theMerckfamilyholdsanapproximately70%interestand

    freeshareholdersowntheremainingapproximately30%.In

    1917theU.S.subsidiaryMerck&Co.wasexpropriatedand

    hasbeenanindependentcompanyeversince.

    Merck KGaA

    JrgenJost

    HeadofGlobalMasterDataManagement

    FrankfurterStrae25064293DarmstadtGermany

    Phone+49615172-0www.merckgroup.com

    Camelots holistic MDM approachCAMeLOT ServICeS

    MDMStrategyRequirementAnalysis&BusinessCaseMDMProviderSelection

    MDMOrganization&GovernanceMDMProcesses&ArchitectureBlueprint&TechnicalSpecification

    TechnicalImplementationOrganizationalChangeTrainings&Know-howTransfer

    DataQualityManagementMasterDataServiceManagementMDMKnowledgeManagement

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