five step guide to mdm (master data management)

Zero to Five:A Stepwise Progression For MDM and Data Governance

Jill Dyché, Partner, Baseline Consulting

Evan Levy, Partner, Baseline Consulting

Moderator - Daniel Teachey, Director of Corporate Communications, DataFlux

www.baseline-consulting.com

Copyright © 2007, Baseline Consulting. All rights reserved. Do not copy, print, or distribute without written permission 2


Zero to Five:

A Stepwise

Progression For MDM

and Data Governance

Jill Dyche and Evan LevyPartners, Baseline Consulting

A Webcast for DataFlux

November 20, 2007


Today’s Agenda

The Current Perspective of MDM

The IT Conversation: MDM Evolving

The Business Conversation: Data Governance Moves in Lockstep

Q & A


Common MDM Misperceptions

Hey. They just

put me in

charge of

MDM.

Awesome!

What’s MDM?

This isn’t that hard. We can do it with our… ERP system

Data warehouse

Enterprise service bus

It’s the same as metadatamanagement, and we have that.

We just need to hire a data modeler.

We have a data steward—isn’t that his job?

We have a Single Version of the Truth. We’re done.


And These Misperceptions Lead to…

No documented requirements

Lack of clear ownership

Uninformed technology selection

Overinvestment

Underinvestment

Lack of educated business sponsorship

Underestimation of data governance issues

No clear success metrics

Shoot. I

thought you’d

know.

Awesome!

What’s MDM?


Views of MDM from the Industry

"Master data management is a discipline involving people, process and technology, which helps enterprises define, link and maintain consistent definitions of "master" business objects such as customers, suppliers or products.”

"MDM is much more than a single technology solution; it requires an ecosystem of technologies to allow the creation, management, and distribution of high-quality master data throughout the organization"

“The discipline in IT that focuses on the management of reference

or master data that is shared by several disparate IT systems and

groups”


The Details of MDM

Content

• Subject Area Details

• Identification Attributes

• Item Names

• Definitions

• Value Representation

• Format Standardization

Relationship

• Party Identity (“Like” Attributes)

• Groupings (Rules/Logic)

• Hierarchy (Parent/Child)

• Relationship Rules / Situations

Processing

• Match and Identification

• CRUD Processing

• Data Correction

• Data Change Logging

• Survivorship Rules

Admin

• Data Mgmt Configuration

• Data Change And Approval

• Security / Access

• Data Maintenance


Clearing Up the Confusion

Master data management isn’t a universal set of functions

The goal is to deliver business (and/or technical) value,

not a laundry list of capabilities

There’s no such thing as “one size fits all.” Start with a small set of functions, and build out if you need to.

MDM requires centralized management, not centralized data

Data management rigor allows for location flexibility

Data access and change management must be rigorous

Expect to evolve your MDM environment over time

Plan against long term goals; deliver against short term needs


The Evolution of MDM Deployment

Level 0 Level 1 Level 2 Level 3 Level 4 Level 5

Evolution of MDM Deployment

Pro

cessin

g M

atu

rity

ListProvisioning

Peer-Based Access

CentralizedHub

Processing

Business Rule & Policy

Support

EnterpriseData

Convergence

No MDM


Level 0: No Master

Application

SystemApplication

System

Application

System

App Data App Data

App Data


Level 1: List Provisioning

DataHost

MasterList

MasterList

Application

System

App Data

Application

System

App DataMasterData


Level 2: Peer-Based Access

Data Changes& Corrections

MasterList

Data Changes& Corrections

MasterList

Application

System

App Data

Application

System

App Data

DataHost

MasterData


Level 3: Centralized Hub Processing

Master Data Hub

MasterData

Application

System

App Data

Application

System

App Data

Application

System

App Data


Level 4: Business Rule and Policy Support

Business Rules

Policies

Master Data Hub

MasterData

Application

System

App Data

Application

System

App Data

Application

System

App Data


Level 5: Enterprise Data Convergence

Application

System

App Data

Application

System

App Data

Application

System

App Data

Master Data Hub

MasterData

Business Rules & Policies





Pro

cessin

g M

atu

rity

ListProvisioning

Peer-Based Access

CentralizedHub

Processing


Support

EnterpriseData

Convergence

No MDM


Industry Views of Data Governance

“The overall management of the availability, usability, integrity, and security of the data employed in an enterprise. A sound data governance program includes a governing body or council, a defined set of procedures, and a plan to execute those procedures.

“Data governance encompasses the people, processes and

procedures required to create a consistent, enterprise view of a company's data...

" Data Governance is the organizing framework for establishing strategy, objectives, and policies for corporate data.”


Governance versus Management

Executive Management

IT Governance

Data

Management

Data

Requirements

Data

Quality

Data

Administration

Privacy and

Security

Metadata

Management

Data

Governance

Data

Management

Protect, enhance, and

fund the asset

Provide oversight,

assess compliance,

manage risks to the

asset

Develop and support the

asset per governing

policies and standards

Data Governance


Data Governance and Decision Rights

Decision rights implies business-IT alignment

The business owns key data decisions

IT often drives the need for data governance

Most companies lack formal means of assigning decision rights

The “squeaky wheel” syndrome is the determinant

Politics is the de-facto way to assign decision making authority

Governance without decision rights isn’t governance

“…how effective an organization is at making high-quality decisions consistent with its mission and objectives… is a prime determinant of its

ability to compete in the marketplace.”

From “Decision Rights: Who Gives the Green Light?” Harvard Business Review

The concept of “decision rights” establishes WHO is responsible for making WHAT types of decisions


MDM and Data Governance Evolve Together


Evolution of Data Governance & MDM

Pro

cessin

g M

atu

rity

MDM Maturity

Data Governance Maturity

ListProvisioning

Peer-Based Access

CentralizedHub

Processing


Support

EnterpriseData

Convergence

EnterpriseData

GovernanceProgram

DataGovernance

CouncilData

Stewardship

Application-BasedData

StandardsNo Data Governance

No MDM


The MDM Development Habitat

Program Management

Data Governance

Council

Data Management

Team

IT

Architecture

Application

Development

MDM

ProgramTeam


What We’re Telling Our Clients

Align MDM requirements with specific business needs so you know where to start

Determine existing data management capabilities

Business rule support requires enterprise rule management

Be honest about your culture supporting decision rights and embracing change

Be ready to claim a“bigger slice of the pie”

OperationalData

AnalyticData


Questions and (Hopefully) Answers


Thank You!

The Baseline on MDM: 5 Levels of Maturity for MDM

Download the White Paper!


five step guide to mdm (master data management)

Documents

data modeler

data steward isnt

data governancejill

mdm level

written permission

baseline consulting

whats mdm

mdm environment