delivering product information management (pim) · delivering product information management (pim)...

© 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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오신것을환영합니다

Welcome

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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


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



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




Product

ItemItem



category schema

CategoryCategory



• 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




Product

ItemItem



category schema

CategoryCategory



• 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)



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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)



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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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WebSphere Product Center Customer Base

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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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감사 - Thank you