Presentation on theme: "Soluzioni IBM per il Product Information Management"— Presentation transcript:
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 informationLOB Goal: Serve customers as a single ‘brand’, regardless of which channel or touch-point and drive preference of their products over other substitutes/complementary optionsIT 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 silosCustomersTransparency and ConsistencyWebSocial NetworksCall CenterDistributionSystemsKioskPurchaseMobileDespite 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 ‘06Most 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 resolveRetailers and suppliers estimate that at any given time, 5% of their active SKUs or on average, some 40,000 records contain inaccuracies IBM/Agentrics SurveyInconsistent and inaccurate data throughout trading partner collaboration network in an environment of increased competition & churnExpansion to global markets hindered by inability to cascade updated product information to all systems, channels and users that leverage product informationSlices of product information are maintained in multiple application and repository silos hindering the introduction speed of new products to marketPoor visibility of product location throughout the supply chain in an increasingly collaborative environmentThere is greater than $40B in excess inventory in the retail supply chain. Industry ECRRetail Out of Stock approaching 30%, order lead times greater than 264 hours, and New Product Introductions greater than 90 days.Global Commerce InitiativeLet’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 AdvantageFinancialRisk InsightWorkforceOptimizationDynamicSupply ChainBetter BusinessOutcomesCustomer & ProductProfitabilityMulti-ChannelMarketingBusiness OptimizationOptimizationLeverage information to better understand and optimize business performanceEstablish accurate, trusted information for a single version of the truth, managed over timeFlexible Architecture for Leveraging Existing InvestmentsAn efficient and solid foundation for managing data and content over its lifecycleAutomationOther Information& Application Sources
5 Multiform master Data Management Characterized By Multiple Users, Multiple Usages Operational Business ApplicationsOperationalData UsageApplication-unique Functionality & DataApplication-unique Functionality & DataApplication-unique Functionality & DataApplication-unique Functionality & DataCommon Functionality & DataCommon Functionality & DataCommon Functionality & DataCommon Functionality & DataReal-time SOA data accessCollaborativeData UsageMultiform Master Data ManagementAnalyticalData UsageCollaborateOperationalizeAnalyzeDefine, create and synchronize Master InformationDeliver Master Information as a service for business operationsDrive real time business insightApplication-unique Functionality & DataCommon Functionality & DataParty (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.DataWarehousesReporting &AnalyticsBusinessApplicationsAnalyzemaster dataDefine and createmaster data
6 Multiform Master Data Management Addressing Our Clients Most Critical Business Issues UnderstandCleanseTransformDeliverUnified DeploymentIBM Information ServerUnified Metadata ManagementParallel ProcessingRich Connectivity to Applications, Data, and ContentMultiform MDM manages data domains critical to business processesFocused on critical information intensive business problemsMultiform MDM leverages merged, cleansed and standardized data via the Information ServerIndustry Models & AssetsCustomer CareProduct and Service OptimizationRisk and ComplianceThreat and FraudCollaborateOperationalizeAnalyzeParty, Product, Account, LocationCreate and DefineReal-time business servicesInsight and AnalysisMDM FunctionMDM Data DomainMultiform Master Data Management
7 Master Data Management and Data Warehousing Analytic Services(DW Models,Identity Services & Predictive Analytics )CollaborateOperationalizeAnalyzeParty, Product, Account, LocationCreate and DefineReal-time business servicesInsight and AnalysisMDM FunctionMDM Data DomainMultiform Master Data ManagementServicesDataMetadataMDM and the Data Warehouse Complement each otherMDM differs in 2 ways – latency and feedbackMDM and DW have different use casesMDM 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 systemDW systems are a multidimensional collection of historical transactional data that may leverage Master Data to determine trends and create forecastsIntroducing MDM enhances the value of existing DWs by improving data integrity and closing the loop with transaction systemsKey points for this slideSome 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 BoulangerInfoSphere 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 workflows6) Leveraging this information via many internal and external electronic and human touch points4) Workflow and solutions for supporting multi-departmentand multi-enterprise business processes5) Exchanging and synchronizing this information externally with business partners3CPFRPromotionsMgmtPricingOptimizationReturnsWebsiteBrochuresProductSpecsShelf Tags &SignageKiosks &Info-StationsRFIDContentLeverageNewProductIntroEnd ofLife1SyncAgentrics1) A flexible, scalable repository managing and linking product, location, trading partner, organization, and terms of trade information and structures2) Tools for modeling, managing, capturing and creating additional information with high user productivity and high information qualityBrowser-basedMulti-enterpriseSaaSProductProductRetailPortalUnlimitedAttributesStandards-basedPOWER 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.”WholesalePortalMultipleCategorizationsSecurity andAuditEDI3) Integrating, cleansing and synchronizing this information with enterprise systems, provide information and process services / SOA on demandBroker & RetailDirectMaster Data Integration Services
10 InfoSphere PIM for Commerce offering integrates best of breed IBM products across channels, systems and business usersIntegrate and deliver consistent product content for use inside and outside enterprisePartners & VendorsFinanceMarketing &SalesContent ManagersCategory ManagersB2C websiteB2B websitePortalsCall centersStore shelf spaceOperational decisionsSuppliersVendorsKiosksInfoSphereMaster Data Management Server for PIMInfoSphereMaster Data Management ServerPublishing PlatformWebSphere Commerce PlatformInformationServerIntegrated InfoSphere SolutionFrom Supplierss & SpreadsheetsPOSDB2IBM ECMBI, EDWPIM for Multi-Channel
11 InfoSphere MDM Server for PIM Multi-Channel Case Study ChallengeImprove ability to respond quickly to competitive pressuresEnhance customer experience.Expand array of products available to customers.BenefitsCustomers 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.SolutionMDM Server for PIM used for product enrichment in coordination with corporate ERPIn-store queries for updated product information and sends updates to in-storeFuture 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 investments5ProductSelection &ApprovalsGaining control over product information results:Errors in data – 30% of data in retailers systems is wrongLost productivity – 25 minutes manual cleansing per SKU, per yearSlow time to market – 4 weeks to introduce new productsInvoice deductions – 43% of invoices result in deductionsFailed scans – up to 70,000 per week (1 large US Retailer)Lost sales – up to 3.5% per yearSource: A.T. Kearney, GMA, AMRIndustry 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)34MerchandisingHTML CreationUpdate ScheduleITDescription (enriched)CategorizationPricing & PromotionCopyImage ResolutionColor ImagesPage LayoutsMarketingReviews &ApprovalsDescription (Internal)SKU’sSize, size, colorImages / Photos67PublishQuality AssuranceThe 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 informationOnly 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 products260 man hours communicating with trading partners>17 days to manage & route a new item throughdifferent departments>19 minutes per item to correct errorsTypical Bottom-line:$1,350,000 is spent per retailer in managing item informationIBM/Agentrics Survey Dec 2006If 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.2Key ChallengesLabor intensive processes with inherent delaysError prone manual entry requiring significant quality assuranceDiverse silos of master information, and diverging use of information obtained from these silosLack of tools that automate processes end-to-end (numerous point solutions)Buyer1Vendors / SuppliersPIM for Enterprise – NPI
13 Widespread “product misinformation” occur because the data is managed without a single referential system, despite a variety of IT investmentsMarketingPricingLogisticsSKU setupBuyerSupplierStep 1Step 2Step 3Step 4Step 5Step 6Retailers spend on average:≥ 5 people to review & approve new products260 man hours communicating with trading partners>17 days to manage & route a new item throughdifferent departments>19 minutes per item to correct errorsTypical Bottom-line:$1,350,000 is spent per retailer in managing item informationIBM/Agentrics Survey Dec 2006Cost of highly manual, multi-database, multi-person dependent process?Bottom-line: $1.5M is spent per retailer in managing item information for new productsOnly 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 practicesStep 1Step 2Step 3Step 4Step 5Step 6SupplierBuyerSKU setupMarketingPricingLogisticsAddress 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.AutomatedDataValidationReviewEnrichApprovePublishSKUSetupCategoryAssignmentAside 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 processNEED: 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 internallyValidations 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 itIBM Recommendations & Best PracticesLeverage WPC workflow functionality to apply approval steps where neededApply approval logic to:Apply rules to allow items to bypass approval stepsUtilize WPC workflow time-out functionality to avoid process hang-upsEnsure approvals are not process bottlenecks – leverage parallel taskingAutomate publication processes where applicableImplementation of an EAI solutionOne Source of record for referential productScenario: 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 WorkflowUser InterfaceInfoSphere MDM Server for PIMAccessPrivilegesAggregate andsyndicate dataBusiness processalignmentData Model
15 Case Study Panasonic Europe Business needsConsolidate product information from dozens of factoriesTranslate product information using automated workflow into 15 different languagesFeed accurate, detailed product information into eCommerce system and into print catalogs, in-store displays and leafletsSpecific requirements for the different countries and markets are neededProcess driven by different Product Managers for different segments with high demand on resources and coordinationThe distribution of product information needs adjusted timing for their releaseAccurate and detailed product information for the web systems are needed…Multiple Plants are delivering informationDifferent product manager to coordinate the different productsRequirements for countries and marketsLaunching products in European markets
16 Case Study Panasonic Europe The solutionCentralized repository for a single source of comprehensive product information about all Panasonic models sold in EuropeFlexible workflow capabilities for product information translation, enrichment and approval resulting in 30% higher productivity for global product launch processSynchronization of price changes from SAP ERP with web site, ecommerce store front as well as advertising and promotional material to ensure consistency across sales channelsFeeds up-to-date product information to stream live to in-store displays at 60+ Panasonic stores in UKFuture rollout will include global data synchronization as well as RFID enablementDescriptionsCategorizationTechnical AttributesSpecification SheetsImagesPromotional InfoEditorial ContentShipping TermsSKU NumberPricingProduct AssociationsMarketing ClaimsSafety InformationLogisticsContract InformationUnits of MeasurePhysical Specs…
17 Case Study Panasonic Europe The result: Tangible Business BenefitsProcess OptimisationAllows 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 errorsSales SupportIncreased revenue from information accuracy and greater customer satisfactionOne product database with the all content needed to effectively merchandise productsConsistent product information across all markets and all media for the product lifecycleReturn on InvestmentTime taken to gather product data is dramatically reducedReduced costs from streamlined processes, automation, and effective resource usageScalable, secure software technology that integrates seamlessly into our environmentSpeed to market: 2 weeks extra sales on new itemsTime handling item data: 5-10% reductionReduce cost of external partners by 25%Reducing data entry errors from 5% to 0.1%
18 PIM For Data Publishing ERPs (SAP, …)WebTechnical DataCDROMPublishing MDM (per market, country, brand, medium, customer segment, channel, etc)PLMecatalogsLegal DatabasesFlyersMarketingDigital Asset ManagementPaperOther ISOther IS
19 PIM For Data Synchronization Retailer 1ManufacturersRetailer …PartnersDataSyncMDMRetailer NPublic DatabaseProviderWebOther ISOther IS
20 PIM For Centralizing Data & Processes MerchandisingSystem 1VendorMerchandising System NCentral Repository data and processes centralization, brand, country specifics, etcPartnerLegacyLegal databasesData PoolMarketingPublic DatabaseDigital Asset ManagementOther SIPartner IS
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