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Soluzioni IBM per il Product Information Management

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1 Soluzioni IBM per il Product Information Management
Soluzioni IBM per il Product Information Management Nicola Nodari Information Management Solutions Business Development Segrate, 25 novembre 2009

2 Transparency and Consistency
Merchandising, Commerce, Category Management, Logistics and Marketing teams do not trust their product information LOB Goal: Serve customers as a single ‘brand’, regardless of which channel or touch-point and drive preference of their products over other substitutes/complementary options IT Obstacle: IT environment silos and business processes not effectively aligned to provide the accurate, complete, trusted and compelling information to every touch-point in the customer continuum. All processes supported by disparate heterogeneous applications & information silos Customers Transparency and Consistency Web Social Networks Call Center Distribution Systems Kiosk Purchase Mobile Despite the availability of product information management tools for the past few years, many firms have yet to move away from using semi-manual processes across multiple databases and departments and continue to be plagued by data quality problems. According to Gartner, 25% of critical data within fortune 500 companies will continue to be inaccurate through This problem is compounded by the fact acquisitions such as SuperValu’s recent acquisition of Albertons, introduce duplicate processes, procedures and confusion all of which diminish master data quality. A recent report by Ventana research determined that almost half (47%) of organizations surveyed have made no attempt to estimate the costs of problems and errors directly attributable to errors in master data. The cost of errors due to unreliable and incorrect data as high as US$40 billion annually in retail business. As companies expand into global markets and the need for transparency over which goods are in which warehouses and available to which customers becomes a necessity for a successful rollout. The tolerance level for inaccurate data and the inability to share product data within a global network of trading partners is drastically reduced. Through acquisition or simply through organic growth, retailers have multiple business users managing pieces of product data in numerous disparate databases. This disparate data can result in procurement inefficiencies. For example, mismatched product definitions and supporting data can make it difficult to see what has been ordered, leading to high transaction error rates and incomplete records of spending against budget. Ultimately, the sale of goods will be delayed because incorrect items are sent and must be reprocessed. The result is lost revenue for all members of the trading partner network (manufacturers, distributors and retailers). Leveraged Gartner study: Market Share and Forecast: PIM Software, Worldwide, Sept ‘06 Most retailers lack workflows and protocols to the manage the data. Without a standardized, controlled process, data is often inaccurate because it is old/stale and not updated, it is incomplete and the lag time between initial entry and completion can be weeks long. As new products are introduced and old products are phased out, some data may be updated in a database, while other information is updated in excel spreadsheets in individual computers and exchanged through from department to department. According to a CapGemini Study from March 2005 (Global Data Synchronisation At Work in the Real World), inaccurate or error prone data exchanges lead to CP/Retail companies spending >$30B to rectify issues. Creating the ability to exchange data leads to ~1-3% supply chains costs savings.

3 Global Commerce Initiative
Product Information isn’t trusted because the following statistics are real problems that current IT investments have not been able to resolve Retailers and suppliers estimate that at any given time, 5% of their active SKUs or on average, some 40,000 records contain inaccuracies IBM/Agentrics Survey Inconsistent and inaccurate data throughout trading partner collaboration network in an environment of increased competition & churn Expansion to global markets hindered by inability to cascade updated product information to all systems, channels and users that leverage product information Slices of product information are maintained in multiple application and repository silos hindering the introduction speed of new products to market Poor visibility of product location throughout the supply chain in an increasingly collaborative environment There is greater than $40B in excess inventory in the retail supply chain. Industry ECR Retail Out of Stock approaching 30%, order lead times greater than 264 hours, and New Product Introductions greater than 90 days. Global Commerce Initiative Let’s talk more about how these challenges are creating opportunities for major improvement. First, let’s consider the changing behavior of the consumer. For those of you who attended Jay Wooten’s Industry presentation earlier today, you’ll recognize some of these issues facing retailers today. Three of the mega-trends he mentioned focus on the consumer or demand side, whereby consumer will focus on maximizing “personal value” in each shopping occasion: They will proactively share and seek out information. And they will “trade up” and “trade down”, seeking either higher-end products or rock-bottom prices, Mega-retailers will come to dominate their markets through unsurpassed breadth and scale, expanding rapidly across geographies, categories and segments. However, specialist retailers will continue to thrive by becoming expert at serving the unique needs of specific customer segments and shopping occasions. Considering the increasing difficultly of attracting and retaining loyal customers, it is even more critical for retailers to find ways to increase internal and collaborative efficiencies. Adoption of the infrastructural technology necessary to share these transactions hovers around 30% across both retailers and manufacturers, limiting collaboration opportunities Forrester Research

4 Business Optimization
Information On Demand Unlocking the Business Value of Information for Competitive Advantage Financial Risk Insight Workforce Optimization Dynamic Supply Chain Better Business Outcomes Customer & Product Profitability Multi-Channel Marketing Business Optimization Optimization Leverage information to better understand and optimize business performance Establish accurate, trusted information for a single version of the truth, managed over time Flexible Architecture for Leveraging Existing Investments An efficient and solid foundation for managing data and content over its lifecycle Automation Other Information & Application Sources

5 Multiform master Data Management Characterized By Multiple Users, Multiple Usages
Operational Business Applications Operational Data Usage Application-unique Functionality & Data Application-unique Functionality & Data Application-unique Functionality & Data Application-unique Functionality & Data Common Functionality & Data Common Functionality & Data Common Functionality & Data Common Functionality & Data Real-time SOA data access Collaborative Data Usage Multiform Master Data Management Analytical Data Usage Collaborate Operationalize Analyze Define, create and synchronize Master Information Deliver Master Information as a service for business operations Drive real time business insight Application-unique Functionality & Data Common Functionality & Data Party (customer, citizen, prospect, organization, supplier, distributor, etc.) Product (good, service, product bundle, catalogue, product component, etc.) Account (Agreement, financial account, reward program, etc.) Data Creators e.g., Administrators, trading partners, etc. Data Warehouses Reporting & Analytics Business Applications Analyze master data Define and create master data

6 Multiform Master Data Management Addressing Our Clients Most Critical Business Issues
Understand Cleanse Transform Deliver Unified Deployment IBM Information Server Unified Metadata Management Parallel Processing Rich Connectivity to Applications, Data, and Content Multiform MDM manages data domains critical to business processes Focused on critical information intensive business problems Multiform MDM leverages merged, cleansed and standardized data via the Information Server Industry Models & Assets Customer Care Product and Service Optimization Risk and Compliance Threat and Fraud Collaborate Operationalize Analyze Party, Product, Account, Location Create and Define Real-time business services Insight and Analysis MDM Function MDM Data Domain Multiform Master Data Management

7 Master Data Management and Data Warehousing
Analytic Services (DW Models, Identity Services & Predictive Analytics ) Collaborate Operationalize Analyze Party, Product, Account, Location Create and Define Real-time business services Insight and Analysis MDM Function MDM Data Domain Multiform Master Data Management Services Data Metadata MDM and the Data Warehouse Complement each other MDM differs in 2 ways – latency and feedback MDM and DW have different use cases MDM provides a “golden” source of truth that is used collaboratively for authoring, operationally in the transactional / operational environment and supports the delivery of "quality" Master Data to a DW system DW systems are a multidimensional collection of historical transactional data that may leverage Master Data to determine trends and create forecasts Introducing MDM enhances the value of existing DWs by improving data integrity and closing the loop with transaction systems Key points for this slide Some customers may think of the data warehouse as a master data solution and even base an MDM strategy on data warehouse technology (operational data stores). Reality is that data warehouses have many shortcomings in truly being the MDM hub, performance, latency (not up-to-the-minute info) and no facilities to feed information back to the enterprise system just being some key ones. More importantly MDM and data warehouses are synergistic. Key points are presented on the slide.

8 Sample IBM InfoSphere MDM Server for PIM Customers
Boulanger InfoSphere MDM Server for PIM’s customer base includes the largest companies in its markets as well as market leading companies in new industries

9 Functional View of InfoSphere MDM Server for PIM System capture and attribute changes within hierarchies across workflows 6) Leveraging this information via many internal and external electronic and human touch points 4) Workflow and solutions for supporting multi-department and multi-enterprise business processes 5) Exchanging and synchronizing this information externally with business partners 3 CPFR Promotions Mgmt Pricing Optimization Returns Website Brochures Product Specs Shelf Tags & Signage Kiosks & Info-Stations RFID Content Leverage New Product Intro End of Life 1Sync Agentrics 1) A flexible, scalable repository managing and linking product, location, trading partner, organization, and terms of trade information and structures 2) Tools for modeling, managing, capturing and creating additional information with high user productivity and high information quality Browser-based Multi-enterprise SaaS Product Product Retail Portal Unlimited Attributes Standards-based POWER STAT: According to June 2006 Aberdeen Group Supply Chain Benchmark Report “79% of large companies say that the lack of supply chain process visibility is their top concern”. 90% of all enterprises report global supply chain infrastructure is inadequate to provide information to support budget and cash flow planning and management. “Three quarters of firms lack enterprise-wide automation for global supply chain processes.” Wholesale Portal Multiple Categorizations Security and Audit EDI 3) Integrating, cleansing and synchronizing this information with enterprise systems, provide information and process services / SOA on demand Broker & Retail Direct Master Data Integration Services

10 InfoSphere PIM for Commerce offering integrates best of breed IBM products across channels, systems and business users Integrate and deliver consistent product content for use inside and outside enterprise Partners & Vendors Finance Marketing & Sales Content Managers Category Managers B2C website B2B website Portals Call centers Store shelf space Operational decisions Suppliers Vendors Kiosks InfoSphere Master Data Management Server for PIM InfoSphere Master Data Management Server Publishing Platform WebSphere Commerce Platform Information Server Integrated InfoSphere Solution From Suppliers s & Spreadsheets POS DB2 IBM ECM BI, EDW PIM for Multi-Channel

11 InfoSphere MDM Server for PIM Multi-Channel Case Study
Challenge Improve ability to respond quickly to competitive pressures Enhance customer experience. Expand array of products available to customers. Benefits Customers understand product differences and to choose the right product. Company to offer a range of products far superior to the competition (from 2,000 to 100,000) Sales staff stays informed about products and trends and to better serve their customers. Solution MDM Server for PIM used for product enrichment in coordination with corporate ERP In-store queries for updated product information and sends updates to in-store Future project phase – supply product information to client website

12 PIM for Enterprise – NPI
Widespread “product misinformation” occur because the data is managed without a single referential system, despite a variety of IT investments 5 Product Selection & Approvals Gaining control over product information results: Errors in data – 30% of data in retailers systems is wrong Lost productivity – 25 minutes manual cleansing per SKU, per year Slow time to market – 4 weeks to introduce new products Invoice deductions – 43% of invoices result in deductions Failed scans – up to 70,000 per week (1 large US Retailer) Lost sales – up to 3.5% per year Source: A.T. Kearney, GMA, AMR Industry Drivers: RFID, Waste Electrical and Electronic Equipment Recycling, Product Information Exchange Standards, Return of Hazardous Substances, Global Data Synchronization, Sarbanes Oxley, etc (Yankee Group, 2005) 3 4 Merchandising HTML Creation Update Schedule IT Description (enriched) Categorization Pricing & Promotion Copy Image Resolution Color Images Page Layouts Marketing Reviews & Approvals Description (Internal) SKU’s Size, size, color Images / Photos 6 7 Publish Quality Assurance The majority of retailers address product information through a variety of systems and processes, but seldom have an integrated approach to deliver consistent product information to all channels. Cost of highly manual, multi-database, multi-person dependent process? Bottom-line: $1,350,000 is spent per retailer in managing item information Only 18% of retailers use one process to enter product & customer information into ALL channels’ system of record (RSR report) Retailers spend on average: ≥ 5 people to review & approve new products 260 man hours communicating with trading partners >17 days to manage & route a new item through different departments >19 minutes per item to correct errors Typical Bottom-line: $1,350,000 is spent per retailer in managing item information IBM/Agentrics Survey Dec 2006 If we look at a representative process for obtaining new information, the individual steps may vary. For example, in some companies merchandising and marketing functions are shared or delineated differently. The key point is the process, however done today, is highly manual, fragmented, and prone with delays. By an IBM sponsored-study, we found the average time it takes to introduce a new product to the market takes 90 days on average. The number one tool used in most enterprises to manage this process is a set of spreadsheet tools. In this new shopping world, client expectations are increasingly being set by nimble web companies who add need products in a matter of days to hours versus months. Consider eBay, where the model is you post an item for sale and it’s online for consumers to bid on and purchase very quickly. Admittedly the process and model would not work for many retailers, but speed to market with new and innovative products is a competitive advantage for many retailers. While products get to market eventually for all retailers, it’s labor intensive, slow, and prone to errors. Process maps for any of the scenarios indicated on the previous page demonstrate similar issues with lack of enterprise tools, inconsistent processes, and organizational silos inhibiting optimization. 2 Key Challenges Labor intensive processes with inherent delays Error prone manual entry requiring significant quality assurance Diverse silos of master information, and diverging use of information obtained from these silos Lack of tools that automate processes end-to-end (numerous point solutions) Buyer 1 Vendors / Suppliers PIM for Enterprise – NPI

13 Widespread “product misinformation” occur because the data is managed without a single referential system, despite a variety of IT investments Marketing Pricing Logistics SKU setup Buyer Supplier Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Retailers spend on average: ≥ 5 people to review & approve new products 260 man hours communicating with trading partners >17 days to manage & route a new item through different departments >19 minutes per item to correct errors Typical Bottom-line: $1,350,000 is spent per retailer in managing item information IBM/Agentrics Survey Dec 2006 Cost of highly manual, multi-database, multi-person dependent process? Bottom-line: $1.5M is spent per retailer in managing item information for new products Only 18% of retailers use one process to enter product & customer information into ALL channels’ system of record (RSR report) PIM for Enterprise – NPI

14 New Product Introduction Workflow
Provide business users with a New Product Introduction Workflow IBM’s product information management solution with best practices Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Supplier Buyer SKU setup Marketing Pricing Logistics Address the root causes of inadequate NPI processes with a best practice workflow and validation schema while leveraging the industry leading MDM PIM tool, WebSphere Product Center. Automated Data Validation Review Enrich Approve Publish SKU Setup Category Assignment Aside from creating a collaborative item creation and workflow around new product introduction, as mentioned in the previous slide, approvals and validations from category managers is critical. Using IBM’s NPI solution for WPC you can make sure approval steps exist where necessary by applying approval logic rules to allow items to bypass approval steps, to utilize workflow time-out functionality to avoid process hang-ups and ensure approvals are not process bottlenecks – leverage parallel tasking. Iterative process between a retailer and a supplier to set up a new product: Ex: Walgreens estimates it takes 2 weeks to get information correct on an item setup form. This is prior to even executing Walgreens internal item introduction process NEED: more customer examples here. Vincent’s Barbie Doll example, add more color around this. What’s the magnitude? New folks in the audience here . . . Manual, paper processes to manage a new product introduction process internally Validations of new product information are manual and often inconsistent from dept to dept or even individual to individual. Problem Statement: Retailers data approval processes often lack controls or are time consuming due to: Current Systems lacking workflow and approval functionality. Manual Approval Hang-ups in control processes that do exist: Approval tends to be required for all items, when some may not require it IBM Recommendations & Best Practices Leverage WPC workflow functionality to apply approval steps where needed Apply approval logic to: Apply rules to allow items to bypass approval steps Utilize WPC workflow time-out functionality to avoid process hang-ups Ensure approvals are not process bottlenecks – leverage parallel tasking Automate publication processes where applicable Implementation of an EAI solution One Source of record for referential product Scenario: Demonstrates the effect of inefficiencies and bottlenecks in the NPI process. As I mentioned, the NPI process at most retailers is manual and paper-based. When a form is passed from desk to desk and the information is manually entered into multiple systems by multiple parties, there’s a lot of room for error. The example illustrated here comes from one of our retail customers (who prefers to remain nameless). This actually happened. A supplier faxed a new product form to a buyer at a retail partner. The new product was a hot new barbie doll and the retailer planned to capitalize on the popularity of the barbie by introducing the new product during the retail-friendly Christmas season. Unfortunately, the barbie fax got buried on the buyers desk under a stack of paper and the Christmas season came and went without the order being placed. This retailer missed out on an ideal market opportunity because of manual, paper-based NPI processes. They missed sales opportunity and lost revenue. In some cases, a scenario like this could force the retailer to sell the product at a discount because they’ve missed the window entirely for a product (new backpacks for back-to-school promotion). New Product Introduction Workflow User Interface InfoSphere MDM Server for PIM Access Privileges Aggregate and syndicate data Business process alignment Data Model

15 Case Study Panasonic Europe
Business needs Consolidate product information from dozens of factories Translate product information using automated workflow into 15 different languages Feed accurate, detailed product information into eCommerce system and into print catalogs, in-store displays and leaflets Specific requirements for the different countries and markets are needed Process driven by different Product Managers for different segments with high demand on resources and coordination The distribution of product information needs adjusted timing for their release Accurate and detailed product information for the web systems are needed Multiple Plants are delivering information Different product manager to coordinate the different products Requirements for countries and markets Launching products in European markets

16 Case Study Panasonic Europe
The solution Centralized repository for a single source of comprehensive product information about all Panasonic models sold in Europe Flexible workflow capabilities for product information translation, enrichment and approval resulting in 30% higher productivity for global product launch process Synchronization of price changes from SAP ERP with web site, ecommerce store front as well as advertising and promotional material to ensure consistency across sales channels Feeds up-to-date product information to stream live to in-store displays at 60+ Panasonic stores in UK Future rollout will include global data synchronization as well as RFID enablement Descriptions Categorization Technical Attributes Specification Sheets Images Promotional Info Editorial Content Shipping Terms SKU Number Pricing Product Associations Marketing Claims Safety Information Logistics Contract Information Units of Measure Physical Specs…

17 Case Study Panasonic Europe
The result: Tangible Business Benefits Process Optimisation Allows us to gather data from multiple divisions and manufacturing plants into a centralised masterdatabase from a variety of different sources (ERP systems, databases, spreadsheets) Unique business rules can be applied to cleanse and validate data, assuring that only clear, standardized information is offered to customers, partners, and employees. Improved information quality with fewer errors Sales Support Increased revenue from information accuracy and greater customer satisfaction One product database with the all content needed to effectively merchandise products Consistent product information across all markets and all media for the product lifecycle Return on Investment Time taken to gather product data is dramatically reduced Reduced costs from streamlined processes, automation, and effective resource usage Scalable, secure software technology that integrates seamlessly into our environment Speed to market: 2 weeks extra sales on new items Time handling item data: 5-10% reduction Reduce cost of external partners by 25% Reducing data entry errors from 5% to 0.1%

18 PIM For Data Publishing
ERPs (SAP, …) Web Technical Data CDROM Publishing MDM (per market, country, brand, medium, customer segment, channel, etc) PLM ecatalogs Legal Databases Flyers Marketing Digital Asset Management Paper Other IS Other IS

19 PIM For Data Synchronization
Retailer 1 Manufacturers Retailer … Partners DataSync MDM Retailer N Public Database Provider Web Other IS Other IS

20 PIM For Centralizing Data & Processes
Merchandising System 1 Vendor Merchandising System N Central Repository data and processes centralization, brand, country specifics, etc Partner Legacy Legal databases Data Pool Marketing Public Database Digital Asset Management Other SI Partner IS


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