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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.
Table of Contents
Summary.......................................................................................................................................... 1 Author Bio ........................................................................................................................................ 1 Start with a bit of strategy............................................................................................................. 2 Focus on SRM Catalog.................................................................................................................... 4 SRM-MDM Catalog, your preferred solution ................................................................................... 4 SRM-MDM Catalog main process steps ......................................................................................... 5 Migrating to SRM-MDM Catalog...................................................................................................... 5 Conclusion ....................................................................................................................................... 6 Copyright.......................................................................................................................................... 7
This is crucial to understand. On the same master data management (MDM) system, different type of master data can be stored, managed and consumed (example for procurement business processes: catalog items with suppliers, products and categories). The applications which consume these master data (such as SRM, ERPs) share the master data across the platform. Catalog items are considered as a flavor of master data and are now an integral part of the master data management strategy. From a software solution offering standpoint, SAP had to make a number of decisions to address this significant market change. Basically, after the years during which SAP offered a partnership solution bundled with our e-procurement solution (B2B, EBP, SRM), it has been decided to go for the fully integrated / very low TCO solution (i.e.: SAP CCM) that can be deployed as an add-on to the ABAP layer. This would have been a good move, at least up until market demand changed 180 degrees (this is a U turn, not a temperature). So at the end of 2005, we, from the SAP SRM group, have decided to accelerate the adoption of SAP Netweaver MDM. As catalog items are a form of master data, the concept is to use a master data application to run a catalog engine. Primarily, MDM as a SRM catalog (namely SRM-MDM Catalog) is the showcase of the adoption of MDM by the SAP SRM application. Many other MDM based scenarios will follow. Here are listed the ones which are being developed as we speak:
SRM 2007: Duet simple buying. MDM is used a product catalog engine searchable from Microsoft Outlook when the user creates a shopping cart. SRM 7.0: Supplier registration and qualification. MDM is used a central hub for all supplier data shared across the landscape (ROS. SUS, SRM server and multiple ERPs). Purchasers will be able to consolidate, harmonize and distribute the supplier data within the landscape. SRM 7.0: Supplier Directory. MDM is used as a directory of suppliers which can be connected to SRM thru the Open Partner Interface (OPI).
We will have many opportunities to discuss these scenarios with more details. If there is one point to go home with, this is to consider SAP MDM now as a strategic component of your SAP SRM application, and far beyond the simple product catalog scenario. This is true for SAP SRM, is also true for other mainstream SAP applications. This is not a well kept secret that SAP CRM may soon adopt MDM as well, although no dates or precise plans have been communicated yet. At least, I do not know them with sufficient details to share them with you. The value of Netweaver MDM is then decupled (which means multiplied by 10 not to confuse with decoupled as many of you could think), as the SAP applications are on their way to adopt it with standard, high value integration scenarios. I have been told the license fees will not be decupled, which makes the model even more attractive! But for sure current MDM strategies may need to be revisited. Recently, I had the opportunity to present the SRM 7.0 supplier registration scenario to a top-class SAP customer, who is currently running as many MDM projects are there are master data types. The discussion, which is still ongoing, rapidly turned into a debate: Should we promote a central master data management deployment, or an application driven MDM deployment? On one side, suppliers are centrally created once in MDM. MDM has to syndicate out the supplier data to the applications (SRM and eventually multiple ERPs). On the other side, the creation of the supplier is initiated by the end-user (a supplier online or a purchaser) directly into the application (SRM). The supplier data are then replicated into MDM, which keeps track of key mapping across all the other applications. Which one deployment should be chosen? I believe the pragmatic answer is both. The 2 deployments do not overlap but complement each other. As a matter of fact, the central creation scenario is a subset and simplified deployment of the other one. I
believe it is necessary to enable a great flexibility in deploying one or the other. Later on, during the ASUG/SAPPhire conference in Atlanta, I could confirm with other customers this is the right thing to do.
Because I tell you. At the end, being the product manager of all SRM catalog solutions, I have made my choice. So why not picking my pick? More reasonably, SRM-MDM Catalog offers, even with v1.0, a significant level of functionality, which is for sure much better than SAP CCM 2.0, 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. 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. MDM was being marketed for quite some time already. In other words, there is no reason to believe the solution is not mature. For the particular SRM catalog scenario, the only portion of the code which is new is the search engine end user interface. This consists of a set of a dozen of screens which have been specifically developed to standardize the SRM catalog search experience. It is the first step of your global MDM strategy. For sure, any customer has to solve the master data problem. Why not starting with the easier part, product catalog, to get familiar with the MDM solution, and then expand towards a more global adoption of MDM on other type of master data. When you learn SRM-MDM Catalog, you know most of MDM.
I am sure most of you agree that running a non-supported catalog solution is not a comfortable experience. There is a level of risk associated, even so that particular catalog solution is arguably quite stable and does not necessarily require additional support. I dont like to create more panic than necessary, but it is highly advisable to think about a migration to, guess what, SRM-MDM Catalog. 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. Typically, the IT manager would order the installation CDs (which are DVDs now) and give them to his kids to play with. 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 6.0. Although this might be true for some (most) of SAP applications, it happens to not be true with SRM-MDM Catalog v1.0, as so for two reasons: 1- There are no DVDs for SRM-MDM Catalog. The software has to be downloaded from the SAP service marketplace (http://service.sap.com.swdc Download Support Packages and Patches Entry by Application Group SRM Catalog SRM-MDM Catalog 1.0). 2- As mentioned a bit earlier, the solution relies on a mature platform. Only the user interface is new. Still, for the ones who cannot implement the v1.0, the v2.0 will be made available (unrestricted shipment) on July 2nd 2007. Which are the key questions to keep in mind? 1- Assuming the business process is clear for all (this is simple catalog management after all), the data model has to be finalized. SAP delivers a predefined data model for catalog items, which can be appended with many more fields and table of a variety of data type, depending on the complexity of the business process and variants. Data Modeling has to be the lion share of your implementation time. 2- Only when the data model is crystal clear, go for a prototype to validate the data model. Gain experience on the loading and mapping techniques. Work on your workflows. 3- Validate the solution with power and key users. Think 3 dimensions: content managers, purchasers, end users 4- Deploy and roll out the solution. Think 3 dimensions: per commodity, per purchasing organizations, per contracts The IT folks may care about deployment models, architecture, available platforms and sizing. To address all these fundamental and very exiting questions, there a very good presentation posted on the SAP service marketplace, titled SRM-MDM_Details. It can be found at: http://service.sap.com/srm - SRM in Details SRM 5.0 Catalog Content Management SRM-MDM Catalog.
Conclusion
As we come to the end of this article, that I hope you found interesting, I would like to collect your feedback. Please send me an email at david.marchand@sap.com, or post a public comment about this article in the forums.
Copyright
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