SAP Develops Collaborative Master Data Management Solution

SAP Delivers Cost-Effective Way to Harmonize Data for Collaborative Business Processes in Heterogeneous IT Environments

LISBON, Portugal - September 05, 2002 - SAP AG (NYSE: SAP) today announced the development of SAP Collaborative Master Data Management (SAP CMDM), a revolutionary product designed to solve the widespread challenges of data integration from multiple systems, physical locations, and diverse vendors and then utilize the harmonized data to support collaborative e-business scenarios in heterogeneous IT system landscapes. The announcement was made at SAPPHIRE® '02, SAP's international e-business conference being held in Lisbon, Portugal, September 4-6.

With the proliferation of data, systems, and ever-changing business environments, companies are seeking flexible ways to integrate and consolidate master data trapped in multiple systems using existing infrastructures. SAP CMDM is the first standardized offering of its kind that allows companies to establish and maintain a cohesive environment that ensures consistent data is used for all participants in business processes.

"Redundant and irrelevant data diffused across diverse systems lowers enterprise efficiency, raises cost of maintenance, and impedes good decision making, but with SAP CMDM, companies will be able to lower IT infrastructure and master data maintenance costs, speed business process execution, and enable better decision making with more reliable and up-to-date information," said Claus Heinrich, executive board member of SAP AG. "For distributed environments, SAP CMDM is a necessity for process integration and complements SAP's existing solution offering while being very attractive to enterprises outside the current SAP customer base."

Leading companies such as Dow Chemicals, Motorola Semiconductor Products Sector, and Nokia are advising in the development of SAP CMDM.

"Nokia uses several application platforms in its business operations. On the other side we need true business integration and efficient collaboration internally and with business partners," said Markku Rajaniemi, chief architect of Nokia System Landscape. "Efficiently managed customer-, vendor-, and product-master-data is a necessity for true business orchestration and collaboration."

Compared to pure enterprise application integration (EAI) engines, SAP CMDM offers both the ability to integrate the data as well as the applications necessary to support business processes around collaborative master data management. There are three core ways SAP CMDM can be utilized. First, SAP CMDM can help align master data by providing services and analytics that recognize identical master data objects and keeps them consistent. In addition, it enables the consolidation of business processes by providing consistent distribution mechanisms of master data objects into other systems, both within the company and externally. Finally, CMDM can be used for central data maintenance that allows for objects that logically belong together to be changed and distributed together.

The unified master data information can be easily accessed through its personalized mySAP™ Enterprise Portal, as well as via open standards that allow Web services to assure flexible and cost-effective external access to master data.

"Master data management is so important to the enterprise that the promise of a platform-independent solution that takes a truly collaborative approach should make the technology industry sit up and take notice," said Bruce Richardson, senior vice president of research for AMR Research. "Even at its simplest level, the opportunity for companies to efficiently access clean data across disparate systems will help traditional ERP systems, as well as supply chain and customer relationship management solutions, achieve new, previously unreachable levels of business value."

SAP CMDM will be built leveraging mySAP™ Technology, a comprehensive, open, and integrated Web services infrastructure that masters heterogeneity by aligning and unifying people, information, and business processes across technologies. In addition to the SAP Exchange Infrastructure, a part of mySAP Technology, CMDM consists of a master data server, a content integrator, and adaptors.

SAP Collaborative Master Data Management is scheduled for customer shipment in the third quarter of 2003, will be marketed to both SAP and non-SAP customers, and will not require companies to implement an SAP solution footprint.