Data tends to pile up and can be rendered unusable or obsolete without careful maintenance processes. Reference and Master Data Management (MDM) has been a popular Data Management approach to effectively gain mastery over not just the data but the supporting architecture for processing it from a master/transaction perspective. This webinar presents MDM as a strategic approach to improving and formalizing practices around those data items that provide context for organizational transactions – its master data. Too often, MDM has been implemented technology-first and achieved the same very poor track record (1/3 succeeding on-time, within budget, achieving planned functionality). MDM success depends on a coordinated approach involving typically Data Governance and Data Quality activities. Program learning objectives include:
• Understanding foundational reference and MDM concepts
• Why they are an important component of your Data Architecture
• Awareness of Reference and MDM Frameworks and building blocks
• What consists of MDM guiding principles and best practices
• How to utilize Reference and MDM in support of business strategy
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DataEd Slides: Unlock Business Value Using Reference and Master Data Management Strategies
1. Reference &
Master Data Management
Copyright 2020 by Data Blueprint Slide # 1Peter Aiken, Ph.D.
Unlocking Business Value
• DAMA International President 2009-2013 / 2018
• DAMA International Achievement Award 2001
(with Dr. E. F. "Ted" Codd
• DAMA International Community Award 2005
• I've been doing this a long time
• My work is recognized as useful
• Associate Professor of IS (vcu.edu)
• Founder, Data Blueprint (datablueprint.com)
• DAMA International (dama.org)
• CDO Society (iscdo.org)
• 11 books and dozens of articles
• Experienced w/ 500+ data
management practices worldwide
• Multi-year immersions
– US DoD (DISA/Army/Marines/DLA)
– Nokia
– Deutsche Bank
– Wells Fargo
– Walmart … PETER AIKEN WITH JUANITA BILLINGS
FOREWORD BY JOHN BOTTEGA
MONETIZING
DATA MANAGEMENT
Unlocking the Value in Your Organization’s
Most Important Asset.
2Copyright 2020 by Data Blueprint Slide #
Peter Aiken, Ph.D.
2. Copyright 2020 by Data Blueprint Slide # X
• Data Management Overview
• What is Reference and MDM?
• Why is Reference and MDM important?
• Reference & MDM Building Blocks
• Guiding Principles & Best Practices
• Take Aways, References & Q&A
Reference & Master Data Management - Unlocking Business Value
IT Business
Data
Perceived State of Data
4Copyright 2020 by Data Blueprint Slide #
3. Data
Desired To Be State of Data
5Copyright 2020 by Data Blueprint Slide #
IT Business
The Real State of Data
6Copyright 2020 by Data Blueprint Slide #
Data
IT Business
4. Blind Persons and the Elephant
7Copyright 2020 by Data Blueprint Slide #
http://www.dailymirror.lk/print/opinion/editorial-we-need-to-become-channels-of-peace/172-27164
It is like a fan!
It is like a snake!
It is like a wall!
It is like a rope!
It is like a tree!
8Copyright 2020 by Data Blueprint Slide #
Unrefined
data management
definition
Sources
Uses
Data Management
5. 9Copyright 2020 by Data Blueprint Slide #
More refined
data management
definition
Sources
ReuseData Management➜ ➜
10Copyright 2020 by Data Blueprint Slide #
Data Governance
Data Assets/Ethical Framework
Sources
➜ Use
➜Reuse
Better still data management definition
➜
6. Data Management Practices Hierarchy
You can accomplish
Advanced Data Practices
without becoming proficient
in the Foundational Data
Management Practices
however this will:
• Take longer
• Cost more
• Deliver less
• Present
greater
risk
(with thanks to Tom DeMarco)
Advanced
Data
Practices
• MDM
• Mining
• Big Data
• Analytics
• Warehousing
• SOA
Foundational Data Management Practices
11Copyright 2020 by Data Blueprint Slide #
Data Platform/Architecture
Data Governance Data Quality
Data Operations
Data Management Strategy
Technologies
Capabilities
Data$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
DMM℠ Structure of
5 Integrated
DM Practice Areas
Data
Governance
Data
Management
Strategy
Data
Operations
Platform
Architecture
Supporting
Processes
Maintain fit-for-purpose data,
efficiently and effectively
12Copyright 2020 by Data Blueprint Slide #
Manage data coherently
Manage data assets professionally
Data life cycle
management
Organizational support
Data
QualityData$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
Data$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
Data$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
Data$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
Data$Management$
Strategy
Data Management Goals
Corporate Culture
Data Management Funding
Data Requirements Lifecycle
Data
Governance
Governance Management
Business Glossary
Metadata Management
Data
Quality
Data Quality Framework
Data Quality Assurance
Data
Operations
Standards and Procedures
Data Sourcing
Platform$&$
Architecture
Architectural Framework
Platforms & Integration
Supporting$
Processes
Measurement & Analysis
Process Management
Process Quality Assurance
Risk Management
Configuration Management
Component Process$Areas
Data architecture
implementation
7. Your data foundation
can only be as strong
as its weakest link!
Data architecture
implementation
Data
Governance
Data
Management
Strategy
Data
Operations
Platform
Architecture
Supporting
Processes
Maintain fit-for-purpose data,
efficiently and effectively
13Copyright 2020 by Data Blueprint Slide #
Manage data coherently
Manage data assets professionally
Data life cycle
management
Organizational support
Data
Quality
Data
Governance
Data
Quality
Platform
Architecture
Data
Operations
Data
Management
Strategy
3
3
33
1
Supporting
Processes
Optimized
Measured
Defined
Managed
Initial
Optimized
Measured
Defined
Managed
Initial
Optimized
Measured
Defined
Managed
Initial
Optimized
Measured
Defined
Managed
Initial
Optimized
Measured
Defined
Managed
Initial
Copyright 2020 by Data Blueprint Slide # X
• Data Management Overview
• What is Reference and MDM?
• Why is Reference and MDM important?
• Reference & MDM Building Blocks
• Guiding Principles & Best Practices
• Take Aways, References & Q&A
Reference & Master Data Management - Unlocking Business Value
9. Definitions
• Planning, implementation and control activities to ensure
consistency with a "golden version" of contextual data values
• … as opposed to mobile device management
• Gartner holds that MDM is a
discipline or strategy
– "… where the business and the IT organization
work together to ensure the uniformity, accuracy,
semantic persistence, stewardship and accountability
of the enterprise's official, shared master data."
• Sold as technology-based solution
• Official, consistent set of identifiers - examples of these core entities include:
– Parties (customers, prospects, people, citizens, employees, vendors, suppliers, trading
partners, individuals, organizations, citizens, patients, vendors, supplies, business partners,
competitors, students, products, financial structures *LEI*)
– Places (locations, offices, regional alignments, geographies)
– Things (accounts, assets, policies, products, services)
17Copyright 2020 by Data Blueprint Slide #
Definition: Reference Data Management
• Control over defined domain values (also known as vocabularies),
including:
– Control over standardized terms, code values and other unique identifiers;
– Business definitions for each value, business relationships within and across
domain value lists, and the;
– Consistent, shared use of
accurate, timely and
relevant reference data
values to classify and
categorize data.
18Copyright 2020 by Data Blueprint Slide #
Current Customer
Ex-Custom
er?
Potential Customer
VIP-Custom
er?
Residential
Customer
Commercial
Customer
Customer
12. Copyright 2020 by Data Blueprint Slide # X
• Data Management Overview
• What is Reference and MDM?
• Why is Reference and MDM important?
• Reference & MDM Building Blocks
• Guiding Principles & Best Practices
• Take Aways, References & Q&A
Reference & Master Data Management - Unlocking Business Value
+ 1 Year
• Confusion as to the system's value
– Users lack confidence
– Business did not know how to use
"the MDM"
• General agreement
– Restart the effort
• "Root cause" analysis
– Consensus
– Poor quality data
– Inadequate training
• Response
– Get data quality-ing!
• Inexperienced
– Immature data quality practices
– Tool/technological focus
– Purchased a data quality tool
24Copyright 2020 by Data Blueprint Slide #
13. 25Copyright 2020 by Data Blueprint Slide #
Garbage In ➜ Garbage Out!
My most profound lesson! (so far)
26Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Garbage
Data
Garbage
Results
Data
Warehouse
Machine
Learning
Business
Intelligence
Block ChainAIMDM
Data
Governance
AnalyticsTechnology
GI➜GO!
14. 27Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Garbage
Data
Garbage
Results
Data
Warehouse
Machine
Learning
Block Chain
AI
MDM
Analytics
Technology
Data
Governance
GI➜GO!
Business
Intelligence
GI➜GO!
28Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Quality
Data
Garbage
Results
Data
Warehouse
Machine
Learning
Business
Intelligence
Block Chain
AI
MDM
Analytics
Technology
Data
Governance
15. 29Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Quality
Data
Garbage
Results
Data
Warehouse
Machine
Learning
Business
Intelligence
Block Chain
AI
MDM
Analytics
Technology
Data
Governance
GI➜GO!
30Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Quality
Data
Garbage
Results
Data
Warehouse
Machine
Learning
Business
Intelligence
Block Chain
AI
MDM
Analytics
Technology
Data
Governance
GI➜GO!
16. 31Copyright 2020 by Data Blueprint Slide #
Perfect
Model
Quality
Data
Good
Results
Data
Warehouse
Machine
Learning
Business
Intelligence
Block Chain
AI
MDM
Analytics
Technology
Data
Governance
Quality In ➜ Quality Out!
Version 1
32Copyright 2020 by Data Blueprint Slide #
Data
Strategy
Data
Governance
Data
Quality
Improving
operations in
3 data
management
practice areas
BI
Warehouse
17. Version 2
33Copyright 2020 by Data Blueprint Slide #
Data
Strategy
Data
Governance
BI
Warehouse
Metadata
Improving
operations in
3 data
management
practice areas
Version 3
34Copyright 2020 by Data Blueprint Slide #
Data
Strategy
Data Governance BI/Warehouse
Reference &
Master Data
Perfecting
operations in 3
data
management
practice areas
18. A good way to begin practicing data
• Select 3 data
management
functions (parts
of the DM BoK)
– Data
Governance
– Reference and
Master Data
Management
– Data Quality
Management
35Copyright 2020 by Data Blueprint Slide #
Interdependencies
36Copyright 2020 by Data Blueprint Slide #
Data Governance
Master DataData Quality
makes the
case and is
responsible for
is a necessary but
insufficient prerequisite
to success
MD capabilities
constrain governance
effectiveness
19. Inextricably intertwined implementations and …
37Copyright 2020 by Data Blueprint Slide #
Organized Knowledge 'Data'
Improved Quality Data
Data Organization Practices
Operational Data
Data Quality
Engineering
Master Data
Management
Practices
Suspected/
Identified
Data
Quality
Problems
Routine Data Scans
Master Data Catalogs
Routine Data Scans
Knowledge
Management
Practices
Data that might benefit from
Master Management
Sources( (
Metadata(Governance(
(
Metadata(
Engineering(
(
Metadata(
Delivery(
Uses(
Metadata(Prac8ces((dashed lines not in existence)
Metadata(
Storage(
Interactions
38Copyright 2020 by Data Blueprint Slide #
Improved Quality Data
Master
Data
Monitoring
Data
Governance
Practices
Master Data
Management
Practices
Governance
Violations
Monitoring
Data Quality
Engineering
Practices
Data
Quality
Monitoring
Monitoring
Results:
Suspected/
Identified
Data
Quality
Problems Data
Quality
Rules
Monitoring
Results:
Suspected/
Master
Data &
Characteristics
Routine
Data
Scans
Master
Data
Catalogs
Governance
Rules
Routine
Data
Scans
Monitoring
Rules
Focused
Data
Scans
Operational Data
Data
Harvesting
Quality
Rules
20. Multiple Sources of (for example) Customer Data
Payroll Application
(3rd GL)Payroll Data
(database)
R& D Applications
(researcher supported, no documentation)
R & D
Data
(raw) Mfg. Data
(home grown
database)
Mfg. Applications
(contractor supported)
Marketing Application
(4rd GL, query facilities,
no reporting, very large)
Marketing Data
(external database)
Finance
Data
(indexed)
Finance Application
(3rd GL, batch
system, no source)
Personnel App.
(20 years old,
un-normalized data)
Personnel Data
(database)
39Copyright 2020 by Data Blueprint Slide #
Sample Solution Framework
40Copyright 2020 by Data Blueprint Slide #
SORs
SOR 1
SOR 2
SOR 3
SOR 4
SOR 5
SOR 6
SOR 7
SOR 8
Repository
Indicator
Extraction
Service
(could be
segmented by
day of week
month,
system, etc.)
Update
Addresses
Latency
Check
Service
Ch 1
Ch 2
Ch 3
Ch 4
Ch 5
Ch 6
Channels
Ch 7
Ch 8
External Address
Validation Processing
Customer
Contact
23. "180% Failure Rate" Fred Cohen, Patni
45Copyright 2020 by Data Blueprint Slide #
http://www.igatepatni.com/bfs/solutions/payments.aspx
MDM Failure Root-Causes
• 30% of MDM programs are regarded as failures
• 70% of SOA projects in complex, heterogeneous
environments had failed to yield the expected
business benefits unless MDM is included
• Root-causes of failures:
– 80% percent of MDM initiatives fail because of ineffective leadership,
underestimated magnitudes or an inability to deal with the cultural impact of the
change
– MDM was implemented as a technology or as a project
– MDM was an Enterprise Data Warehouse (EDW) or an ERP
– MDM was an IT Effort
– MDM is separate to data governance and data quality
– MDM initiatives are implemented with inappropriate technology
– Internal politics and the silo mentality impede the MDM initiatives
46Copyright 2020 by Data Blueprint Slide #
24. Task vs. Process Orientation
• What is meant by a task
orientation?
– Industrial work should be broken down
into its simplest and most basic tasks
• What is meant by a process
orientation?
– Reunifying tasks into coherent
business processes
• What else must be part of the
analysis?
– Identify and abandon outdated rules
and assumptions that underlie current
business operations
47Copyright 2020 by Data Blueprint Slide #
Task 1
Task 2
Task 3
Task 4
Task 5
Task 6
Task 7
Task 8
Task 9
Task 10
Task 11
Task 12
Task 1
Task 7
Task 9
Automating Business Process Discovery (qpr.com)
48Copyright 2020 by Data Blueprint Slide #
• Benefits
– Obtain holistic perspective on roles
and value creation
– Customers understand and value
outputs
– All develop better shared
understanding
• Results
– Speed up process
– Cost savings
– Increased compliance
– Increased output
– IT systems documentation
25. Activities and Flows with amounts and durations
49Copyright 2020 by Data Blueprint Slide #
50Copyright 2020 by Data Blueprint Slide #
Process Flows and Durations
27. 53Copyright 2020 by Data Blueprint Slide #
MDM Business Process Overview
54Copyright 2020 by Data Blueprint Slide #
Attributed to Steven Steinerman
33. Copyright 2020 by Data Blueprint Slide # X
• Data Management Overview
• What is Reference and MDM?
• Why is Reference and MDM important?
• Reference & MDM Building Blocks
• Guiding Principles & Best Practices
• Take Aways, References & Q&A
Reference & Master Data Management - Unlocking Business Value
15 MDM Success Factors
1. Success is more likely and more frequently observed once users and prospects understand the
limitations and strengths of MDM.
2. Taking small steps and remaining educated on where the MDM market and technology vendors are
will increase longer-term success with MDM.
3. Set the right expectations for MDM initiative to help assure long-term success.
4. Long-term MDM success requires the involvement of the information architect.
5. Create a governance framework to ensure that individuals manage master data in a desirable
manner.
6. Strong alignment with the organization's business vision, demonstrated by measuring the
program's ongoing value, will underpin MDM success.
7. Use a strategic MDM framework through all stages of the MDM program activity cycle — strategize,
evaluate, execute and review.
8. Gain high-level business sponsorship for the MDM program, and build strong stakeholder support.
9. Start by creating an MDM vision and a strategy that closely aligns to the organization’s business
vision.
10. Use an MDM metrics hierarchy to communicate standards for success, and to objectively measure
progress.
11. Use a business case development process to increase business engagement.
12. Get the business to propose and own the KPIs; articulate the success of this scenario.
13. Measure the situation before and after the MDM implementation to determine the change.
14. Translate the change in metrics into financial results.
15. The business and IT organization should work together to achieve a single view of master data
66Copyright 2020 by Data Blueprint Slide #
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Workforce Performance
Monday, 3/23/2020 @ 1:30 PM PT
April Webinar:
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Tuesday, April 14, 2020 @ 2:00 PM ET/11:00 AM PT (UTC-5)
May Webinar:
Data Management Best Practices/Practicing Data
Management Better
Tuesday, May 12, 2020 @ 2:00 PM ET/11:00 AM PT (UTC-5)
Sign up for webinars at:
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