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Master Data Management with SAP Supplier Relationship Management

Master Data Management with SAP Supplier Relationship
Management

Summary
This article describes the evolution of the SRM Catalog.
Author(s): David Marchand
Company: SAP Labs
Created on: 11 May 2007

Author Bio
David Marchand works for SAP Labs in Palo Alto as SRM product manager for catalog and
master data management. David started with SAP France 10 years ago as an MM consultant,
then moved to Walldorf at the end of 2000 when SAPMarkets was created. In early 2006, he
moved to Palo Alto. Through all these years, he has kept his French accent, which makes any
of his presentations rather fun to listen to. David holds a MS in Engineering and an MBA in
supply chain management.

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© 2007 SAP AG 1

............................................. independent software providers had to look for other potential revenue streams.: multiple procurement systems / supply chain systems)............... which is located underneath................................... From an architecture standpoint......sap.....................com BUSINESS PROCESS EXPERT COMMUNITY | bpx........... but certainly the catalog management functionalities requested in 2000 are significantly different than the ones of today’s market..................... resulting of the consolidation of externally sourced content (i............................ SAP customers consider their catalog items data as a flavor of their master data...... 1 Start with a bit of strategy….............. But on the typical range of commodities addressed with a procurement focused catalog engine................................. from a total cost of ownership (TCO) / architecture standpoint.. from pure innovation to commoditization and retirement......sap........ We have seen significant market consolidation over the last 2 to 3 years............ any observer of catalog management market over the past years has noticed the evolution of both technology and market demand..........com © 2007 SAP AG 2 ............... and I believe this is going to persist for the next few years. Master data management systems do not run on the application layer............... and not a system on its own anymore 2...... I am not sure which one is driving the other.................... Some players have been acquired every year..... Master Data Management with SAP Supplier Relationship Management Table of Contents Summary.. SAP DEVELOPER NETWORK | sdn.......... several times in a row... Catalog engine becomes a functionality of a master data management system........... 5 Conclusion .................................. There are no reasons anymore to manage catalog data in a different way than any other type of master data............... The right approach......... we are witnessing the combination of 2 moves: 1........... Most of them tried to market a variety of data management services..................... In other words....... For now........ Independent players........................... there is no need to run a catalog engine next to the application which consumes the data (such as procurement or ERP system)..... 4 SRM-MDM Catalog main process steps ................... 4 SRM-MDM Catalog. preferably with more integration with operational systems (typically procurement systems)... the business case is far from being lucrative............. 2 Focus on SRM Catalog.................. but on the platform layer........................... Catalog management software solutions have followed the typical Geoff Moore path.............................e..................... 7 Start with a bit of strategy… Arguably.. after surfing the lucrative wave of “let us have fun on the web” (i................................. Which customer would spend a cent on cleansing its MRO catalog data? Probably none. 6 Copyright.................... At the same time.....e................... is to run the catalog engine as a service shared across the entire landscape....................: suppliers) and internally sourced data (i........................................................: years 999-2001) during which the use case was to publish suppliers provided content on a catalog search engine. your preferred solution ........................... The business case failed miserably..... or at least not too many.................e............ as a service shared to all applications..... the right move was to plug a catalog engine next to the procurement application................................... 5 Migrating to SRM-MDM Catalog.................................................................... where leaders of yesterday do not even exist today...................................................... Furthermore................................. as it relates to software development................................................ 1 Author Bio ...... have consolidated over the years 2002-2005 and tried to provide cheaper Total Cost of Ownership solutions....

0 supplier registration scenario to a top-class SAP customer. Basically. MDM is used as a directory of suppliers which can be connected to SRM thru the Open Partner Interface (OPI). although no dates or precise plans have been communicated yet. Primarily. rapidly turned into a debate: Should we promote a central master data management deployment. MDM is used a central hub for all supplier data shared across the landscape (ROS. Recently. On the other side. I have been told the license fees will not be decupled. This is not a well kept secret that SAP CRM may soon adopt MDM as well. not a temperature). who is currently running as many MDM projects are there are master data types. harmonize and distribute the supplier data within the landscape. As a matter of fact. which makes the model even more attractive! But for sure current MDM strategies may need to be revisited. The supplier data are then replicated into MDM. or an application driven MDM deployment? On one side. At least. suppliers are centrally created once in MDM. the creation of the supplier is initiated by the end-user (a supplier online or a purchaser) directly into the application (SRM). this is to consider SAP MDM now as a strategic component of your SAP SRM application. at least up until market demand changed 180 degrees (this is a U turn. MDM as a SRM catalog (namely SRM-MDM Catalog) is the showcase of the adoption of MDM by the SAP SRM application. SRM server and multiple ERPs). Purchasers will be able to consolidate. Here are listed the ones which are being developed as we speak: • SRM 2007: Duet “simple buying”. From a software solution offering standpoint. managed and consumed (example for procurement business processes: catalog items with suppliers. MDM has to syndicate out the supplier data to the applications (SRM and eventually multiple ERPs). different type of master data can be stored. If there is one point to go home with.e. On the same master data management (MDM) system. We will have many opportunities to discuss these scenarios with more details. the central creation scenario is a subset and simplified deployment of the other one. The 2 deployments do not overlap but complement each other. which is still ongoing. it has been decided to go for the fully integrated / very low TCO solution (i. have decided to accelerate the adoption of SAP Netweaver MDM. SAP had to make a number of decisions to address this significant market change. and far beyond the simple product catalog scenario.0: Supplier Directory. Which one deployment should be chosen? I believe the pragmatic answer is both. SRM). The value of Netweaver MDM is then decupled (which means multiplied by 10 – not to confuse with “decoupled” as many of you could think…). is also true for other mainstream SAP applications. Many other MDM based scenarios will follow. I do not know them with sufficient details to share them with you. as the SAP applications are on their way to adopt it with standard.sap. I had the opportunity to present the SRM 7. high value integration scenarios.0: Supplier registration and qualification. I SAP DEVELOPER NETWORK | sdn. products and categories). This would have been a good move. The discussion. SUS. which keeps track of key mapping across all the other applications. Master Data Management with SAP Supplier Relationship Management This is crucial to understand. the concept is to use a master data application to run a catalog engine.: SAP CCM) that can be deployed as an add-on to the ABAP layer. • SRM 7.sap. ERPs) share the master data across the platform. As catalog items are a form of master data. MDM is used a product catalog engine searchable from Microsoft Outlook when the user creates a shopping cart. we. after the years during which SAP offered a partnership solution bundled with our e-procurement solution (B2B. Catalog items are considered as a flavor of master data and are now an integral part of the master data management strategy.com © 2007 SAP AG 3 . • SRM 7. EBP. The applications which consume these master data (such as SRM. This is true for SAP SRM. So at the end of 2005.com BUSINESS PROCESS EXPERT COMMUNITY | bpx. from the SAP SRM group.

I would like to thank them for their trust. which will soon be made available on the SAP Education framework. I could confirm with other customers this is the right thing to do. When you learn SRM-MDM Catalog. and then expand towards a more global adoption of MDM on other type of master data. which is for sure much better than SAP CCM 2.com © 2007 SAP AG 4 . For the particular SRM catalog scenario. Later on. As far as I could see. I have made my choice. • It is the first step of your global MDM strategy. MDM was being marketed for quite some time already. and most if not all other third party catalog solutions I know (and I know many of them) • Netweaver MDM is itself a mature solution. software has been downloaded 202 times and we report at least 34 projects ongoing.com BUSINESS PROCESS EXPERT COMMUNITY | bpx. EDS. the only portion of the code which is new is the search engine end user interface. SRM-MDM Catalog offers. So why not picking my pick? • More reasonably. a significant level of functionality. SRM-MDM Catalog. Master Data Management with SAP Supplier Relationship Management believe it is necessary to enable a great flexibility in deploying one or the other. such as Bristlecone (bcone. We also trained a bunch of SAP consultants and partners. Not a secret why they are leaders in their respective domain of expertise. Inquera (inquera. Some of these customers have gone live already and are sharing their experience at SAPPhire US and EMEA this year.0. I believe these are the kind of partners who do not hesitate to adopt new solution earlier than others. for an duration of 3 to 4 months in average. For sure. based on the traffic on OSS. We met our internal Key Performance Indicators (KPIs) earlier than expected and have decided to end the restricted shipment period 3 weeks in advance. even with v1. The first projects on which they are involved are successful. Focus on SRM Catalog We launched SRM-MDM Catalog v1. during the ASUG/SAPPhire conference in Atlanta.com). you know most of MDM. your preferred solution Moving forward.sap. the software has been downloaded in average 9 times a week by distinct customers (not inclusive internal or partner downloads). Accenture.com).0. following in details most of these customer projects. Why not starting with the easier part. Projects have rapidly started afterwards. with a newly dedicated training course. product catalog. to get familiar with the MDM solution.sap. I trust many other partners will follow soon. SAP partners. At the end. being the product manager of all SRM catalog solutions. under the code SRM270. Some people could say this is due to the fact SAP has not built it on its own… (Just kidding)…SAP acquired the solution from A2i in 2004. I would like to give you a few hints on why SRM-MDM Catalog should be considered as your preferred catalog solution: • Because I tell you. there is no reason to believe the solution is not mature. In other words. SAP DEVELOPER NETWORK | sdn. As we speak. the efforts vary from 30 days to 100 days to migrate from a previous catalog solution to SRM-MDM Catalog. This consists of a set of a dozen of screens which have been specifically developed to standardize the SRM catalog search experience. Partners are very important to the success of our joint customers.0 in restricted shipment on September 18th 2006. Since that date. We invited our very first customers for complementary trainings (VIP lunch and dinner included) in Palo Alto and in Walldorf. IBM and others are investing on the solution and send some of their good consultants to the trainings we have organized. any customer has to solve the master data problem. on December 8th 2006.

Not only are the fields mapped. in the same repository. Enrich content: Running the SAP MDM Data Manager. a catalog item 4711 (for some reasons.sap. the Open Catalog Interface (OCI) settings and the display settings of the user interface (sequence and visibility of fields). 6. you probably know the support and maintenance provided by SAP has ended on December 31st 2006. from different sources and of different types. repeatedly and as a background process. This enables simultaneous maintenance of multiple keys for the same object. Walldorf time (which is CET). Within a repository. using the Microsoft Visio Pro plug-in. workflows (which are a sequence of steps in a guided procedure) can be designed. Alternatively. using quite advanced mapping techniques. An advanced key mapping technique.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap. hierarchies and schema do we need? Which administration procedures should be run? All these tasks are managed with the SAP MDM Console 2. midnight. Work can be saved in the form of maps. hyperlinks. reject) can be assigned to a user or a group of users in the organization. the catalog items are modeled (SAP delivers a predefined data model). which can be re-used afterwards. pdf documents and so on. Migrating to SRM-MDM Catalog Now that you know what SRM-MDM Catalog is capable of doing for you. Search items: The SAP Java Webdynpro based user interface renders the content of the repository and enables end users to search (and find) items with different search methods. If you know the reason why. most of examples or demos in SAP literature refer to the code 4711. but also the values. the SAP MDM Import Server is capable of doing the same tasks automatically. 5. normalized or converted as being mapped. if XYZ happens to be Requisite Bugseye . in respect of the multiple sources. For example. the content manager has the ability to map the source data to the repository catalog items data structure. Import and Map: This is the process step in which the data. SAP DEVELOPER NETWORK | sdn. which can be split.0b). tables should be created? How many users do we need? Which roles? How many concurrent taxonomies. with a more functional role here. who will be able to configure the masks or named searched (as known as views in reference to SAP CCM). the very next concrete question is: how to organize a migration from XYZ catalog to SRM-MDM Catalog? First of all. may be found very efficient to map different sources of content to a unique data structure. So. Master Data Management with SAP Supplier Relationship Management SRM-MDM Catalog main process steps A standard catalog process consists of 6 steps: 1. or be changed massively (e. Manage the repository: A repository is a placeholder in which your catalog data reside. The administrator. advanced search. Approve content: Still running the SAP MDM Data Manager. Among other tings. XYZ in SRM or 123 at a given supplier. find out how much in a hurry you might be.com © 2007 SAP AG 5 . 3. or refinement by attributes and values. This could be images. Enable web catalog: This is the last step of the process for catalog managers. the task to check the price and make a decision (approved. but happens to be very valuable to harmonize your data across. As an example. relying on the concept of remote systems.: change the material group of all selected items at the same time) 4. such as keywords search. or transferred to another repository. items may be moved from one category to another. The SAP Note 485884 gives you a bit of useful information (I wrote the note…). Also. The SAP MDM Import Manager is the client module the content manager works with. send me a mail. The th 4711 good response will win a free training on MM module of SAP R/3 4. Depending on validations (which are rules detecting events such as the increase of price by more than 10% for example). one could add structured and unstructured content to catalog items of the repository. if he likes to perform this step manually. This a bit complex first hand.g. hierarchy browsing. MDM will store the matrix of systems and values as key mappings. are loaded into the repository. the catalog item 4711 could be coded as ABC in ERP1. has the ability to make a number of decisions related to the repository: which new fields.

2.0. To address all these fundamental and very exiting questions.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.com. purchasers. per purchasing organizations. I don’t like to create more panic than necessary. Only the user interface is new. I know most of SAP customers who know SAP for quite some time do not like to install the first version of any SAP application.SRM in Details – SRM 5. 3. It can be found at: http://service. Still. Which are the key questions to keep in mind? 1.swdc – Download – Support Packages and Patches – Entry by Application Group – SRM Catalog – SRM-MDM Catalog 1. titled SRM-MDM_Details.Deploy and roll out the solution. end users 4.0 – Catalog Content Management – SRM-MDM Catalog.sap. Please send me an email at david. 2. but it is highly advisable to think about a migration to.Validate the solution with power and key users. the solution relies on a mature platform.0. depending on the complexity of the business process and variants. per contracts The IT folks may care about deployment models.0). for the ones who cannot implement the v1. Master Data Management with SAP Supplier Relationship Management I am sure most of you agree that running a non-supported catalog solution is not a comfortable experience. architecture. the v2. The software has to be downloaded from the SAP service marketplace (http://service. go for a prototype to validate the data model.0….There are no DVDs for SRM-MDM Catalog. Typically. available platforms and sizing. SAP DEVELOPER NETWORK | sdn.sap. as so for two reasons: 1. or post a public comment about this article in the forums.Only when the data model is crystal clear. Conclusion As we come to the end of this article.0 will be made available (unrestricted shipment) on July 2nd 2007. Gain experience on the loading and mapping techniques.Assuming the business process is clear for all (this is simple catalog management after all).sap. Think 3 dimensions: per commodity. Think 3 dimensions: content managers. I would like to collect your feedback. even so that particular catalog solution is arguably quite stable and does not necessarily require additional support.com/srm .com © 2007 SAP AG 6 .com. Although this might be true for some (most) of SAP applications. Work on your workflows. there a very good presentation posted on the SAP service marketplace. SAP delivers a predefined data model for catalog items. There is a level of risk associated. SRM-MDM Catalog. which can be appended with many more fields and table of a variety of data type.sap.As mentioned a bit earlier. guess what.marchand@sap. Data Modeling has to be the lion share of your implementation time. it happens to not be true with SRM-MDM Catalog v1. the IT manager would order the installation CDs (which are DVDs now) and give them to his kids to play with. that I hope you found interesting. the data model has to be finalized. You cannot imagine so much fun you could have with SAP logo-ed DVDs… I have 2 kids and recently ordered the 84 installation DVDs of SRM 6.

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