1 Master Data Validation with cbs MDV

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1 1 Master Data Validation with cbs MDV In the age of digitalization, Industry 4.0 and Internet of things (IoT) master data as digital copy of the real business objects like products, customers, suppliers, banks and others play an increasingly important role. High data quality of master data is an essential prerequisite for efficient business processes in customer order processing, purchasing, planning and production, etc. A thorough master data validation is needed to ensure the required master data quality for all business objects which leads to the desired business success and competition advantage. A lack of transparency threatens business success. The management in many companies has recognized that a sustainable maintenance of master data is indispensable, but nevertheless the situation looks in most companies as shown in the next graphic (saw tooth cycle): Source: Controller Magazin CM November/December 2016 Monetäre Bewertung von Stammdaten im Unternehmen cbs Corporate Business Solutions Latest update: /6

2 Often data cleansing projects are initiated or migration projects executed where the focus is on data validation. With high effort master data are meticulously reviewed and changed to improve the data quality. But after each completed project there is again a slump and data quality is getting worse again. To avoid the loss of data quality maturity, workflows are implemented for the creation and maintenance of master data, as well as governance initiatives are started that deal with the rules for the maintenance of the data and the related organization. This is the basis for the improvement of master data quality. But how can the proper processing of the defined master data maintenance process be controlled and ensured? It's essential to identify data defects before it comes to business process interruptions due to incorrect master data. Nowadays it s getting more important to show the increasing relevance and influence of master data for the competitiveness of the company. If the commercial value of master data can be demonstrated, then it can be avoided that master data projects and initiatives are cancelled always first due to budget cuts. The following questions are often coming up: How to check master data in a business process oriented manner? How to easy determine master data quality? How to determine the commercial (monetary) value of master data? The answers to these questions provides cbs MDV Master Data Validation. This tool is an add on for the ERP but also offers the possibility of connecting external systems. It consists of several modules and each module can also be implemented separately at the customer, depending on the initial situation: Module 1: Usage Module 2: Module 3: Data Quality Reproduction Cost cbs Corporate Business Solutions Latest update: /6

3 2 Management Summary The cbs MDV offers a business process oriented master data usage analysis, closely integrated in the measurement of data quality with the aim to determine the monetary and commercial value of the master data based on the reproduction cost (see following graphic reproduction cost oriented approach). Source: Controller Magazin CM November/December 2016 Monetäre Bewertung von Stammdaten im Unternehmen The cbs MDV is the perfect application to get insight into your master data. Where to start and what to do first will be the outcome of the validation. Waste of time due to massive data corrections for data which are not really used will be avoided. Top 12 Reasons for cbs MDV: 1. Determination of last usage as prerequisite for data quality checks 2. Target oriented measures to improve the master data quality due to the previously determined last usage 3. Valuation of master data as an asset 4. Linkage of master data with business processes 5. The tool is optimized for large amounts of data 6. User friendly interfaces (versioning and handling via different projects possible) 7. No separate hardware required (SAP add on in the cbs own name space) 8. SAP function modules can be integrated into the validation rules 9. Foreign key check (current value compared to the permitted value for example: Product hierarchy, materials group, bank data) and check of all mandatory fields 10. Additional functions from cbs ET Enterprise Transformer can be integrated (e.g. direct correction of master data based on the validation rules) 11. Option to connect to SAP MDG (Master Data Governance) 12. Connection to data bases from external systems cbs Corporate Business Solutions Latest update: /6

4 3 Master Data Usage (Module Usage) An optimized master data validation supports the company to discover and eliminate master data which are maintained not according to the defined rules. The data volume increases daily and the requirements for the correctness also. Many companies and business areas are struggling with the decision for phase out or for marking of master data for deletion. An overview where the master data were used last time is missing in most of the cases. The high cost of archiving data including the complex analysis processes, filtering out obsolete data and deleting them, leads over the time a growing data volume. Module 1 Usage checks which master data were used in the business processes for each business area. It provides information about which data was used in a specific, predefined period. This allows the responsible people to limit the volume and effort for future data quality checks and to direct the focus on the relevant master data. Waste of time for maintaining of outdated data will be avoided. 4 Master Data Quality (Module Data Quality) Master data quality has been recognized as a critical success factor and has already been established as a KPI by the top management in many companies. When it comes to improving the master data quality it s immediately recognized that in most of the cases the data volume is too high and nobody is sure which data to correct first. With the MDV module Usage, the volume of data to be processed can be sensibly and variably limited according to the business circumstances. Validation rules are defined and assigned to fields in a process oriented manner. A welltrained user can create simple standard rules direct in the production system. Complex validation rules can be implemented using the SAP function modules. (Example: Validation of product weight against sum of component weights of the corresponding bill of materials). Several validation rules can be created for each field. The validation results are versioned and details are always available at the push of a button. For this purpose, a user friendly interface is available. Figures can be aggregated on each reporting level. A drill down to the faulty data record is possible at any time. A data quality index is determined for each field and rule. Error lists can be distributed to the data manager (data steward). If needed, the data can be directly adapted via an approval process based on the validation rules. Processing or consolidation of master data from external systems with focus on company structure changes (Mergers & Acquisition) is often required by companies and is covered by the cbs MDV application. cbs Corporate Business Solutions Latest update: /6

5 5 Master Data Valuation (Module Reproduction Cost) For the determination of the master data asset value it's important to identify the master data creation and maintenance cost for each data object needed in the business process (reproduction cost of all data objects). If the involved parties and their effort for master data maintenance are identified, then with the related cost rates the reproduction cost for each data object can be calculated. Based on the reproduction cost the master data asset value will be calculated. The last usage of the master data and the data quality index will be considered as impairment in the final calculation of the data asset value (see following picture with example for customer master data value). Source: Controller Magazin CM November/December 2016 Monetäre Bewertung von Stammdaten im Unternehmen cbs Corporate Business Solutions Latest update: /6

6 6 cbs MDV Consulting Services The cbs consulting contains the following support: Technical Support & MDV Tool: Import MDV tool into relevant ERP system; Providing technical documentation and support Training: Basic training for customizing set up and handling of the tools, as well as technical training for development of complex rules Service: Providing pre defined rules for SAP standard fields; slight modifications are possible and included; complex adjustments of the rules can be done and will be charged. Results will be provided in a power point presentation and aggregated data analysis results will be delivered in excel format. Consulting: Consulting in running the tool. Support on developing process oriented rules and setting up the system. cbs Corporate Business Solutions Latest update: /6