Himanshu Mishra

Medtronic: Managing Customer Master Data Integration to Build a Singular and

Authoritative View of Customers

1. Medtronic and SAP NetWeaver MDM1.1. About Medtronic1.2. MDM Project Drivers1.3. Master Data Implementation Planning and Project Team Structure1.4. Medtronic Customer Master Landscape1.5. MDM Vision – Customer Master1.6. Data Maturity1.7. Enterprise Data Stewardship1.8. Application Architecture1.9. Third Party Data Enrichment1.10.Centralization1.11.Process Flow1.12.Challenges1.13.Lessons Learned1.14.MDM Initiatives

3. Demo4. Questions and Answers

AgendaAgenda

Medtronic:History and BackgroundMedtronic:History and Background

BeyondInnovation

Changing the Way the World Manages Chronic Disease

� Founded in 1949 as a medical equipmentservice company� First external wearable pacemaker� Expanded into implantable technology,other devices for chronic diseases� Today: 7 business lines, Revenue: 13.5B(FY08)

Medtronic Today…Medtronic Today…

• Cardiac Rhythm Disorders• Cardiovascular Disease• Spinal Conditions and

Musculoskeletal Trauma• Neurological Disorders• Urological and Digestive Disorders• Diabetes• Ear, Nose and Throat Conditions

Treating Many Chronic Conditions

World’s Largest Independent Medical Technology Company

Definition – What is Master Data Management?Definition – What is Master Data Management?

•DDefinitions

Master Data– Is the key entity to defining core business entities such as

customer, employee, location, product etc.– Is static, non-transactional, constant– Interacts with and is referenced by transactional data– Is highly shared across several applications – Has a definition independent of other data

(ASUG Influence council)

Master Data Management– Is the practice of defining and maintaining consistent

definitions of master data, then sharing them via integration techniques across multiple IT systems within an enterprise (TDWI MDM research)

Key tenets� Master data describe the key business entities of an enterprise� High quality master data is the foundation of efficient business process execution and well-founded business decisions� Master Data Management provides competitive differentiation and is a requirement for enterprise SOA initiatives

Key tenets� Master data describe the key business entities of an enterprise� High quality master data is the foundation of efficient business process execution and well-founded business decisions� Master Data Management provides competitive differentiation and is a requirement for enterprise SOA initiatives

SUPPLIEREMPLOYEE CUSTOMERPRODUCT

MDM

© SAP 2008 / Page 6

Jane Smith

4418 N. Str.Chicago, IL

60611

� Extensive matching framework

� Provides web services to customer data access

� SAP & Non-SAP integration

Customer Data Integration One View of Customer Information Anytime AnywhereCustomer Data Integration One View of Customer Information Anytime Anywhere

Analysis

Jane Peters

199, 3rd StreetPalo Alto, CA

94304

Jane Peters Smith

4418 North St.Chicago, IL

60610

…our focus

Project DriversThe Physician

Payments Sunshine Act

Legislation

No "closed loop" between operational and analytical

Lack of data standardization

andconsistency

OperationalSilos and lack of ownership

Heterogeneity of operational IT applications and data fragmentation

Ongoing

Acquisitions

More Complex Business

Relationship

No Single version of

Customer Master Data

Customer Master

Business ChallengesBusiness Challenges Information ChallengesInformation Challenges

CDICDIHubHub

•CCONSOLIDATIONEstablish a unified view on master data originating from various sources

Master Data Implementation Planning and Project Team StructureMaster Data Implementation Planning and Project Team Structure

•HHARMONIZATIONCleanse and distribute across entire landscape

•CCENTRAL MDMCreate consistent master data from the start centrally

DataQuality

Time

Release1

Master Data Management

Improve data quality in steps

Release2Future

Release

Consolidation

Harmonization

Central

MDM

Implementation ContinuumImplementation Continuum

CustomerData Council

Plan Data Consolidation

Third Party DataEnrichment

Customer DataSynchronization

Customer MasterProcess

Management

�Build Global Data Model

�Extract, Standardize and Load Source Records

�Provide an environment to manage de-de-duplication across systems

�ManageCustomer Data De-duplication�Provide Unique

Customer MasterInformation to downstream applications�Provide

Customer MasterRelationship to Reporting application�Controlled

access in Source System

�Centralized Management of Customer Data Creation Process�Seamless

Integration of Source Systems and Data Quality Tools with MDM�Transactional

applicationsbuilt on topof customerdefinitionacross sources�Manage

business process associated with customer data/transactionmanagement

�Enrich Source Data

�Define Process for Source System Merge

�Merge Records in Source Systems

�Define System of Records for Entity Type

�Build Customer Relationship based on Third Party

� Load Customer Affiliations

�Define Enterprise

Customer Data Model

�Need for MDM/ CDI

Solution

�Evaluate MDM Technology

MDM/ CDIWorkshop

IntroduceData

Governance

Customer Master Landscape - TodayCustomer Master Landscape - Today

SAP R/3Customer & Vendor Data

SiebelAccount & Contact Data

Expense ReportPhysician Spend

Multiple points of entry

Singlepoint of entry

Text-onlycustomer names

DIH

EDW

Reporting

RDA*(SHV)

Can

LA/PR

CR

DM

SpinalE

NT/N

T

SAP Accounts

Siebel Contacts

CR

DM

Neuro

Spinal

DA

RT

* Americas’Regional Data Admin team

Types:• Sold-to• Ship-to• Bill-to• Payer

eCATSPhysician Contracts

Types:• Accounts (from SAP)• Contacts

Student/InternGovernment/ Municipalities

KOLCorporations

ProspectMedical Practice

ResearcherClinic

PatientBuying Group

PhysicianHospital

PeopleOrganizations

Customer Categories

Vend

ors

Vendo

rs:Con

tract

Controlled Data Entry Less Controlled Data Entry

CV

Neuro

Customer Vendor data

Multiple points of entry

DRSDevice Registration

Implanting physicianReferring physicianPatient

Why do we need MDM for Customer Data?Why do we need MDM for Customer Data?

•“Customer” = Any person, other than an individual patient,

– including, without limitation, any medical or health care professional or entity in a position to purchase, lease, recommend, use, influence or arrange for the purchase or lease of, or prescribe Medtronic products.

– Encompasses: Physician, Contact, Key Opinion Leader, Researcher, Prospect, Subscriber, Student/Intern, Hospital, Clinic, Buying Group, Medical Practice, Business Entity, etc.

•Medtronic Customer Master data management landscape characterized by:

– Multiple Systems. There are many different systems used across Medtronic to managevarious interactions with customers

– Duplicate Records. Contact records (referring physicians, patients, consultants, clinical study leads, etc.) are entered and spread across all these different systems, creating duplicate records for the same contact

– Weak and Varied Standards & SOPs. Weak standards and varied data entry practices are obstacles to preventing duplicates and relating all valid separate records for a single customer

We need Master Data Management (People, Processes, & Technology)to enable 360 degree view, use and reportability of all interactions with an individual customer

to support all functional needs across sales, marketing, compliance, etc.

MDM-CM ProjectMDM-CM Project• Urgent Business Driver: Physician

Arrangements Tracking– Physician spend tracking and reporting

(aka, CIA)

• MDM-CM Project Objectives:• Provide a data hub• Enable expense tracking to

Unique IDs• Store customer master affiliation• Duplicate check for new

Customer Request

• Key Scope Notes:• No customer creation /

maintenance in MDM• No patient records in MDM

MDM Vision - Customer Data MgmtMDM Vision - Customer Data Mgmt

John Stanton-Smith

Single “Best” Customer Recordassigned a unique ID that relates all valid separate records

Siebel SAP

ExpenseReporting

DRS

MDM

Multiplecustomerrecordslinked

throughMDM

“Transactional”Data

Warehouse

“Transactional”Data

Warehouse

Portals &DashboardsPortals &

Dashboards

Medtronic MDM Process and TechnologyMedtronic MDM Process and TechnologyPeople

Process Technology• Create new customer• Maintain customer• Global change process

• Central repository• Data Quality & Stds check• Match/Merge & Unique ID• Process/governance tools

Data

StandardsTimely-Accurate-Consistent

- Data Standards - Quality Metrics- Cleansing - Controls

�Executive Governance Committee�CM Data Council �Standards Working Group�CM Stewards & Administrators

Governance Structure

IncreasingMaturity of CDI

Level of CDI Maturity0 1 2 3 4 5

UnawareIsolatedCustomer Records in Source

Aware

DuplicateExists in SourceSystems

Reactive

Identityduplicatecustomers

EnterpriseData Standard

Proactive

Build Control in the Source System

Global LOV

MergeRecords

Managed

A unifying visionemerges

CentralizedMaster Data Management

Optimized

MDM is the way we do things around here

Managingmaster data as an asset

Continuing to learn and improve

Data Maturity Roadmap

MDM Application ArchitectureMDM Application Architecture

MDM Maintenance� Cleansing� De-Duping� Matching� UID Assignment� Best Record� Best Address

� Unique Global ID

�CIA Reporting

� AggregatePhysician spend

� Enhanced dataenables (onesource of truth,consistent, accurate)

Siebel

“ Global Business PartnerElements

PI

SAP

MD

M

Informatica

SAP CMSAP VM

Customer Information� Unique identifier for Source Records� Best Record and Best Address� Customer Affiliation

Informatica

Informatica

• First Logic Integration• CBSA Score

SAP MM

PI

ExpenseReporting

PI

WebService

WSII

Oracle Fusion/ Siebel

WebService

Third Party Data Enrichment ArchitectureThird Party Data Enrichment Architecture

Centralization: New Contact Request ProcessCentralization: New Contact Request Process

SIEBEL

Sales Rep logs into application

Siebel Web Service

Creates new contact in Siebel

Create Contact in Siebel

Reject Expense Express Request with valid reason

Create Record in Siebel Manually and update Siebel Row ID in Request

CreateExpenseReport

CustomerRecord not

found

Submit aRequest forNew Contact

Application Website Notification to Integrated Stewards

ReviewNew Contact

Request

IdentifyPotential

Duplicates

CompareRecords andTake ActionPortals

SOASOA

SOASOA

High-Level Process FlowHigh-Level Process Flow

DataHub

EnterpriseReporting

ExpenseReporting

CRM Siebel

Assign Siebel Potential Match Relationship

Assign Across System Sibling Relationships

Assign Unique ID and Best Record

Sieb

el S

tew

ard

by B

UIn

tegr

ated

Stew

ard

SiebelMerge

CP SAP

MDM

MDM Matching and RelatingMDM Matching and Relating• Source Stewards perform the following

in MDM:– Review customer records for entries that do

not conform to data standards– Search and flag duplicate customer records

within their Source• Integrated Team Stewards perform the

following in MDM:– Relate “sibling” records for the same person

from across systems– Assign a Medtronic Unique ID to the one or

more records that represent a single person or entity

– Select a “best” record that is the most complete and accurate for a particular person or entity

• Identify a best address for a Best Record

Manual reviewManual reviewLowestpossible

score

Lowestpossible

score

Highestpossible

score

Highestpossible

scoreDon’tlink

Don’tlink LinkLink

Lowestthreshold

Upperthreshold

Should be related

Should not be related

Key ChallengesKey Challenges

New Customer &Relationship Centric Business Processes

CDIConsumingApplications

CustomerIdentification,Correlation &

Grouping ServiceOriented

Architecture

Data Standards

Data EnrichmentData Acquisition,

Distribution &Synchronization

MDM Tool integration

With Data Quality

MDM Tool and Technology

DataGovernance &

Standards

InformationQuality

External DataProviders

� Existing Customer Master Data

– Variety of data models• Customer structures are not

consistent across Source Systems

– Duplicate data• Duplicate data exists in

customer and address records in Source System

• Duplicate data exists in one system and also across system

� Process– Data entered casually from

many sources – Multiple points of data

integration– No proper duplicate check

� Lack of consistency in approach to data modeling

� Need for data governance, stewardship, and information quality strategy

Lessons LearnedLessons Learned• Customer data quality is more about enterprise

wide consensus and process than technology.• Review your organization's capabilities and challenges in

creating and using a single view of customer record• Issues impacting data were people, processes and tools

• Established goals and scope • – What are we solving for?• Adopted a phased approach • – Don’t boil the ocean• Beware of Scope Creep…• - Data/ System/ Process• Initial Data De-duplication

• Involve Data Stewards, Business Units• Leverage Third Party

• Changes to legacy systems and applications to support enterprise wide data standards

• Apply best practices for data governance and change management

MDM-IT Key InitiativesMDM-IT Key Initiatives

•ProductMaster

SAP SBL MiniMedExpenseExpress

• Customer Master

FY09 FY10

SAP R/3DIHMDMMapinfoServer

DART Portrait Focus 360 etc…

• Sales Structure

Same SourceMatch and Relate ProcessSame SourceMatch and Relate Process

Source: IFO/ SiebelContact: 560310Contact: 560311

ExecuteMatching Strategy

ChooseParent

(Survival)

RelateRecords

Source: SAP CPSold To: 560303Sold To: 560304

ExecuteMatching Strategy

RelateRecords

DownloadFile for Merge

Data StewardsEmail communication

Across Systems (Different Sources)Match and Relate ProcessUnique ID, Best Flag and Best Record

Across Systems (Different Sources)Match and Relate ProcessUnique ID, Best Flag and Best Record

Source: IFO

Contact: 560310

Source: SAP CPSold To: 560303

Vendor: 560305

ExecuteMatching Strategy

RelateRecords

Source: SAP MMCustomer : 560306

Vendor : 560307

AssignUID

ChooseBest Record

ChooseBest Address

Record: 560310Record: 560310

Record: 560311Record: 560311

Record: 560303Record: 560303

Record: 560304Record: 560304

Record: 560305Record: 560305

Physician Payments Sunshine Act: BasicsPhysician Payments Sunshine Act: Basics• Requires manufacturers to submit

reports to HHS disclosing a wide range of payments made directly or indirectly to physicians. Threshold is $25

• Fairly broad set of state laws or regulations relating to reporting and disclosure requirements of drug and device manufacturers

• Applies to reporting or disclosure requirements regarding payments or other transfer of value to physicians

• Payments of all sizes and types

The Physician Payments

Sunshine Act Legislation