The what, why, and how of master data management
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Transcript of The what, why, and how of master data management
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MASTER DATA MANAGEMENT
THE WHAT, WHY AND HOW OF MDM
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INTRODUCTION
This presentation explains what MDM is, why it is important, and how to manage it, while identifying
some of the key MDM patterns and best practices that are emerging. This presentation is a high-level
treatment of the problem space.
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THE BEGINNING
LET US START OUR STORY FROM
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WHAT IS
MASTER DATA?
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THERE ARE ESSENTIALLY FIVE TYPES OF DATA IN CORPORATIONS
UNSTRUCTURED
Transactional
Metadata
Hierarchical
MASTER
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DECIDING
WHAT TO MANAGE?
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BEHAVIORMASTER DATA CAN BE DESCRIBED BY
THE WAY THAT IT INTERACTS WITH
OTHER DATA
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MASTER DATA CAN BE DESCRIBED BY
THE WAY THAT IT IS CREATED, READ,
UPDATED, DELETED, AND SEARCHED.
LIFE CYCLE
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2 Sample CRUD Cycle
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As cardinality (the number of elements in a
set) decreases, the likelihood of an element
being treated as a master-data element—even
a commonly accepted subject area, such as
customer—decreases.
CARDINALITY
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Master data tends to be less volatile
than transactional data. As it becomes
more volatile, it typically is considered
more transactional.
LIFETIME
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Simple entities, even valuable entities, are rarely a
challenge to manage and are rarely considered
master-data elements. The less complex an
element, the less likely the need to manage change
for that element. Typically, such assets are simply
collected and tallied.
COMPLEXITY
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The more valuable the data element is
to the company, the more likely it will
be considered a master data element.
Value and complexity work together.
VALUE
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While master data is typically less
volatile than transactional data,
entities with attributes that do not
change at all typically do not require a
master-data solution.
VOLATILITY
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One of the primary drivers of
master-data management is reuse.
REUSE
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WHY SHOULD I MANAGE
MASTER DATA?
Because it is used by MULTIPLE APPLICATIONS
an ERROR in MASTER DATA can cause errors in
ALL THE APPLICATIONS that use it.
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WHAT IS
MASTER DATA MANAGEMENT ?
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MDM PROJECT PLAN
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1IDENTIFY SOURCES OF
MASTER DATA
This step is usually a very revealing exercise. Some
companies find they have dozens of databases
containing customer data that the IT department did
not know existed.
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2IDENTIFY THE PRODUCERS AND CONSUMERS OF THE MASTER DATA
Which applications produce the master data identified
in the first step, and—generally more difficult to
determine—which applications use the master data.
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3COLLECT AND ANALYZE METADATA ABOUT FOR YOUR MASTER DATA
For all the sources identified in step one, what are the entities
and attributes of the data, and what do they mean? This
should include attribute name, datatype, allowed values,
constraints, default values, dependencies, and who owns the
definition and maintenance of the data.
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4APPOINT
DATA STEWARDS
These should be the people with the knowledge of the current
source data and the ability to determine how to transform the
source into the master-data format
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5IMPLEMENT A DATA-GOVERNANCE PROGRAM AND DATA-GOVERNANCE COUNCIL
This group must have the knowledge and authority to make
decisions on how the master data is maintained, what it
contains, how long it is kept, and how changes are authorized
and audited
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6DEVELOP
THE MASTER-DATA MODEL
Decide what the master records look like: what attributes are
included, what size and datatype they are, what values are
allowed, and so forth.
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7CHOOSE
A TOOLSET
You will need to buy or build tools to create the master lists by
cleaning, transforming, and merging the source data.
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8DESIGN
THE INFRASTRUCTURE
Once you have clean, consistent master data, you will need to
expose it to your applications and provide processes to
manage and maintain it.
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9GENERATE AND TEST
THE MASTER DATA.
This step is where you use the tools you have developed or
purchased to merge your source data into your master-data
list. This is often an iterative process requiring tinkering with
rules and settings to get the matching right.
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10MODIFY THE PRODUCING AND CONSUMING SYSTEMS
Depending on how your MDM implementation is designed, you
might have to change the systems that produce, maintain, or
consume master data to work with the new source of master
data.
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11IMPLEMENT
THE MAINTENANCE PROCESSES
As we stated earlier, any MDM implementation must
incorporate tools, processes, and people to maintain the
quality of the data.
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MDM IS A COMPLEX PROCESS
THAT CAN GO ON FOR A LONG TIME
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HOW DO I CREATE A MASTER LIST?
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NORMALIZE
DATA FORMATS
Make all the phone numbers look the same, transform
addresses (and so on) to a common format.
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REPLACE
MISSING VALUES
Insert defaults, look up ZIP codes from the address,
look up the Dun & Bradstreet number.
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STANDARDIZE
VALUES
Convert all measurements to metric, convert prices to a
common currency, change part numbers to an industry
standard.
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REPLACE
MISSING VALUES
Insert defaults, look up ZIP codes from the address,
look up the Dun & Bradstreet number.
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MAP
ATTRIBUTES
Parse the first name and last name out of a contact-
name field, move Part# and partno to the PartNumber
field.
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HOW DO I CREATE A MASTER LIST?
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HOW DO I MAINTAIN
A MASTER LIST?
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SINGLE-COPY APPROACH
MULTIPLE COPIES, SINGLE MAINTENANCE
CONTINUOUS MERGEUPDATE CONFLICTS
ADDITIONS MUST BE REMERGED
MAINTAINING CONSISTENT VALUES
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VERSIONING AND AUDITING
HIERARCHY MANAGEMENT
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Conclusion
CONCLUSION