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DATA QUALITY IS THE FOUNDATION FOR SUCCESSFUL BUSINESS INITIATIVES

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Value Drivers

Business Initiatives

Cost Optimization

Stock ReductionDemand Planning

Strategic Sourcing

Key Enabler: Data Quality

Better operational efficiencies and

productivity

Improved decision making and opportunity

creation

Enterprise wide coordination

Supply Chain data opacity and ambiguity are issuesthat affect 100.000+ global companies

Large multinational corporations rely on ERPs or SRM Platforms for all their critical procurement processes where most ofthe relevant data in Purchase Orders, Invoices, Material Master Data and Catalog items is unstructured, multilanguage andsometimes even categorized in different taxonomy structures.

Crucial and large corporate initiatives succeed or fail based on data quality, like:• Business Intelligence• Spend Data Analysis for strategic procurement and sourcing optimization• Purchased Material Master Data and stock Management

The issue____

“80% of this data is unstructured, but most of the business value is in there” (Gartner)

The “holy grail” of spend management is the full and correct automated classification of spend data that drives 10% plus of potential saving (Aberdeen)

Digitalizing supply chain operations can “lower procurement costs by 20%, reduce supply chain process costs by 50% and increase revenue by 10%” (The Center for Global Enterprise - CGE)

gasketfor pump

pumpwith gasket

paperورقة

papier

Kâğıtбумага

紙 종이papel纸 papper

papirCryptic & Domain specific

Multilingual

Ambiguous

MANAGER

MaterialMaster Data

Supplier CatalogsInvoices

PurchaseOrders

Free-text orders

Contracts

The Complexity of Supply Chain Data

____

Creactives’ Applications

SPEND

ANALYSIS

TSV8

MATERIAL MASTER

DATA GOVERNANCE

TAM 4

REAL TIME

CATEGORIZATION

MG PROMPT

creation of the correct data

from the very beginning in

ERPs or P2P Platforms

harmonization & categorization

of already existing spend or material

master data

ARTIFICIAL INTELLIGENCE BASED SOLUTIONS

CONTINUOUS

CLEANSING

CATEGORIZER

REAL TIME

SEARCH

MATCHER

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CLEANSINGCreactives’ Data quality

configuration engine

supports the setup of our

applications as well as the

one-off cleansing projectsKNOWLEDGE ENGINEERING

PLATFORM

ONE-OFF

PROJECTS

Data quality process

configuration and automation

Categorization

Enrichment

Matching

DELIVERY OF PROJECT SETUP THROUGH CREACTIVES’ COLLABORATIVE PLATFORM

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Knowledge Base

Machine Learning/

NLP

SPEND

ANALYSIS

MATERIAL MASTER DATA

GOVERNANCE

Creactives’ Knowledge Engineering Platform

Domain experts

feedback

ONE-OFFCustomer’s Domain

Experts

Creactives

More than

100 Millionsof descriptions

analyzed

More than

languages under management

Multilanguage

25

Standards:

UNSPSCeCl@ssCPV…

More than

100 different

taxonomiesimplemented

Flexible Taxonomy

Standard or Custom

#1World’s

MultilanguageReusable Knowledge Base of Industrial

components

LARGEST

>4 million rules 4K Technical attributes

>14 Million of Producer Codes/ 700K patterns

>3.500 Brands under management

CREACTIVES’ KNOWLEDGE BASE: THE STARTING POINT

Categorization

UNSPSC

Brand & Code

(Enrichment)

Attribute

extraction

(Enrichment)

Description

Normalization

(Cleansing)

FOCUS ON THE MAIN OUTCOMES OF THE DATA QUALITY PROCESS

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Customer Input Creactives Output

Description Material Number Original Material Group UNSPSC Category

Circuit breaker 2P / 25A / 300mA 5236942364Production Equipment and Machinery

Repairs & Maintenance39121601 - Circuit Breakers

SIEMENS Disyuntor 7854123099 Spare Parts 39121601 - Circuit Breakers

Leistungsschalter 400V 5SY4310-7 7896325632 MROM Supplies 39121601 - Circuit Breakers

Original Description

6FX8002-2AD00-1AE0 Kábel Siemens

Long Normalized Description

Signal Cable Siemens 6FX80022AD001AE0

Original Description

DIN 912 M 12x210 8.8Long Normalized Description

Socket screw DIN 912 12mmx210mm Class 8.8

Short Normalized Description

Signal Cable Siemens 6FX80022AD001AE0

Short Normalized Description

Socket screw DIN 912 M12x210 8.8

Ca

teg

oriza

tion

En

rich

me

nt

Ma

tch

ing

Category 31161518 – Socket Screws

UNSPSC Category 26121604 - Signal Cable

UNSPSC Category

EXAMPLES OF CREACTIVES’ CUSTOMERS

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Matcher : Item Search Assistant

____

• High-performance full-text search engine forunstructured and structured data contained inClient’s Material Master Data, Internal Catalogs,Frame Contracts;

• Cross-language engine that recognize andmatch equivalent items described in naturallanguage

• Retrival accuracy of 95% for each search

www.yourwebsite.com

MG Prompt : Material Group

Search Assistant____

MG Prompt, perfectly integrated in the PR transaction,understands the natural language of the Requisitioner andproposes the 5 more consistent Categories over the Customercategorization system that can be :

• Standard (UNSPSC/eCl@ss)• Custom Taxonomies• Both

Accuracy of 95% on the proposed list of most suitable categories.

Smart CreationMaster Data

Creation Assistant____

Real time classification support in the customand/or standard taxonomy ( UNSPSC, eCl@ass)

Search and check if an already existing, equal orsimilar Material is available in current MaterialMaster Data :

- If the item already exist a duplicate creation isavoided,

- If the item doesn’t exist, the system support thecreation with the right categorization andeventual technical attribute normalization.

TAMInventory Optimizer

____TAM is a web-application for Material Master DataGovernance and enable a continuous and automateddata cleansing of purchased products.

Cleanse- up historical master data:

• Find duplicates items• Support enrichment• Normalize descriptions

Keep clean future material master data:

• Categorize• Warn on similar items• Detect missing technical attributes• Normalize descriptions

Procurement Data

Optimizer____

www.yourwebsite.com

Cleansing and enrichment of Spend data (POs, IR, GR…):• Enhanced categorization on:

• Standard Taxonomy (UNSPSC/eCl@ss)• Custom Taxonomy

• Brand & Producer code extraction from line item description• Supplier Group detection• 25+ Languages under management – without any upfront translation to English

Front end options:

Spend Analytics/ BI tools already in place: cleansed and enriched data ready to beexploited by customers’ stand alone Business Intelligence (BI) tool or embedded inSource to Pay platforms

Spend Analytics ++: Spend analysis for large enterprises developed by SAS Institute in collaboration with Creactives as part of SAS Continuous Monitoring solution for procurement optimization and fraud detection

TSV 8: stand alone Spend analysis tool developed by Add Value in collaboration with Creactives’ Technology

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Massive Cleansing on historical data and automated periodic data refreshes with 95% Accuracy certified

Non-invasive solution____

ERPP

RO

CU

RE

ME

NT

INV

EN

TO

RY

PURCHASEORDERS

SPARE PARTS

SPARE PARTDESCRIPTION

SPARE PARTDEFINITION

MATERIAL GROUPCLASSIFICATION/PART NUMBER

/CONTRACT ITEM

PURCHASE ORDERDESCRIPTION

DATAOWNER

DEDUPLEDSPARE PARTS

SPARE PARTSINITIAL UPLOAD

PURCHASE ORDERSINITIAL UPLOAD

SPENDANALYSTS

CLASSIFIEDPURCH. ORDERS

SPEND ANALYSIS

1

2

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“Add-on” applications working on top of the client’s ERPs / SRM using standard connectors

MASTER DATA CREATION

ITEM SEARCH

MONTHLY UPD.PURCH. ORDERS

SPARE PARTSUPDATE

MATERIAL MASTER DATA MANAGEMENT

MATERIAL GROUP SEARCH 3

P2P

MDM/MDG

Huge bottom line benefits

____Recurring savings

2-10 % 0f the year spendingSpend Analysis efficiency improvement

Quality improvement30-50% 0f the Material Group precision

Huge efficiency improvement of the Supply Chain processes

Warehouse optimization3-12%+ of the stock value

The revamping of material stock and the deduplication optimization are coupled

with continuous and precise governance

To take better advantage of the Data Driven Transformation, it’s essential to have trusted, governed, relevant and authoritative data.

Business model

____ Set-up project

Depending on

#LANGUAGES #TAXONOMIES,

#ITEMS

Elapsed

FROM A FEW DAYS

TOA FEW WEEKS

SaaS

Depending on

#LANGUAGES #ITEMS#USERS

#ERPs

Composed by

FIXED PART

+PAY AS YOU GO

Set-up project + SaaSLearning from examples to

build the Deep Neural Net andadapt the Semantic Knowledge Base

The variable part depending on the additional effective usage

Reference use cases:

____Creactives’ applications

are used by many prominent organizations from all

around the world.

An intelligent assistant suggesting the Material Group classification structure of the company for Purchase Orders

19 languagesDanish, Dutch, English, French, German, Italian, Mandarin (Chinese), Portuguese, Russian, Spanish, Arabic, Bulgarian, Croatian, Czech, Finnish, Greek, Hungarian, Japanese, Norwegian,

Polish, Swedish, Turkish

Suggestions Indirect: 1 Mio Catalog/ 0,5 Mio Free text PO lines/year

Divisions already implementedOne SRM/One SRM China

Energy management

Customer’ structure2.000+ Material Groups (ESN)

Accuracy95%

Environment1 centralized SRM

dozens of SAPs (6 main divisions)

1 centralized Data warehouse

Classification Assistant

“There is plenty of suppliers claiming to support supply chain with AI, but those guys coming from Verona are doing great things”

Thomas Holzner, Digital Program Manager, Siemens At Data Intelligence technology forum 2018

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Service de soudage

An intelligent assistant suggesting theMaterial Group classification structureof the company for Purchase Orders

10 languages

English, French, Italian, German, Spanish,

Portuguese, Dutch, Chinese, Korean, Japanese

Suggestions 250.000+ per year

Users5.000+ in 18 countries

Customer’ structure1.700+ Material Groups

based on eCl@ss

Accuracy99%

Environment1 SAP system

Classification Assistant for a leading Chemistry Company

“MG Prompt is a powerful contribution for Intelligent-ERP transformation and enable Industry 4.0 in chemicals”

Director Procurement 4.0

A comprehensive Master Data Governance solution: data harmonization, classification and deduplication of several warehouses coupled with the Material Smart Creation to avoid mistakes forever.

Material Master Data

1.200.000+ items

Environment

2 target harmonized SAP systems

(source

8 SAP systems)

Users

2.000+ in 20 countries

Accuracy95%

Inventory Optimizer + Master Data Creation Assistant

“The massive cleansing of material master data allowed ENEL to significantly reduce complexity and improve efficiency in spare stock management worldwide”

Mario Mosca - Head Materials, Equipment and Logistic at Global Infrastructure & Network

8 languagesItalian, Spanish, Portuguese, English, German, Rumanian, Russian, Greek

TAM 4 : a comprehensive Master Data Governance solution: data harmonization, classification and deduplication of several plants coupled with the Material Smart Creation to avoid mistakes forever.

Material Master Data

370,000+ items

Material Master Data (on Scope)

83.500+ codes

Potential Duplicates

55.000+ duplicates (15% overall)

Project Elapsed Time

35 weeks

Categorization before Project:

39 % at level 2 or higher

Categorization after Project:

98 % at level 3 including over 75% at level4

Nothing categorized as ‘Spare Parts’ (level 1) any more

Accuracy

+95%

EMEA Inventory Optimizer +

Master Data Creation Assistant

5 languagesEnglish, German, Ukrainan, Russian, Dutch

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Procurement Data Optimizer

Spendingamount

1+ B €/year

Item / year 1,2 millions Invoices

Accuracy95%

Environment8 ERP

Continuous categorization of spend for corporate BI tool in use

with monthly refresh harmonizing Coperion and Hillenbrand

data.The operations of the group are in EMEA and USA

4 language

English,German,Italian and Chinese

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Procurement Optimizer

Spendingamount

1,6+ B€/year

Item / year 6 millions lines online

Accuracy95%

Environment5 SAP System

40 Countries

The engine categorizes according to Heraeuscorporate Taxonomy and enriches the data withinformation such as brand and producer codes toenable price comparisons and supplier basereduction initiatives.

11 languages

English, German , Spanish, Russian, Romanian,

Portuguese, Chinese, Japanese, French, Greek, Korean

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Procurement Optimizer

Spendingamount

1+ B€/year

Item / year 1,2 millions lines online

Accuracy95%

EnvironmentMigration from Baan

to 1 SAP System5 Countries

UNSPSC Categorization of the spend data:

The engine categorizes according to UNSPSCand enriches the data with information such asbrands and producer codes to enable pricecomparisons and supplier base reductioninitiatives.

4 languages

English, , Spanish, French, Polish

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DACH

SPAIN

OTHERS

Our customer portfolio ____

INDUSTRIAL

ITALY

BASIC MATERIALS

UTILITIESCONSUMER

GOODS & SERVICES

FINANCIAL

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2

4

4

4 NUMBER OFAPPLICATIONS Procurement Optimizer + Inventory Optimizer is the most solicited combination of applications;

The optimal solution is the combination of products to exploit the potential of Creactives’ technology4

2

2

22

2

10 #1

Used by

15

More than

150

Standards:

UNSPSCeCl@ssCPV…

>95%

of the top

100companies

European 100 LIST

More than

100implemented

Company data analyzed

>Years of

Experience in Combining

knowledge engineering & Machine Learning

World’s

MultilanguageReusable Knowledge Base of

Industrial components

LARGEST

More than

languages under management

of accuracy

Multilanguage

25A unique combination of

Machine Learning and

Knowledge engineeringachieving

Flexible Taxonomy

Certified

ISO 9001:2015Standard and Custom

>4 million rules

4K Technical attributes

>3.500 Brands under management

>14 Million of Producer Codes/ 700K patterns

THANK

YOU

Creactives S.p.A.

We empower businesses

to smartly interpret their data opening unique technology doors.

Creactives’ headquarters are in Verona – Italy.

Subsidiary in Germany (Frankfurt)

Local offices are located in Spain (Madrid) and France (Paris).

Adriano.garibotto@creactives.com