1. There’s more to Master Data
Management than Mastering Data
Andrew Bonanni, Dataport Solutions
abonanni@dataportsolutions.com

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Organizations that follow a disciplined
approach to cross-functional workflow
and recognize the importance of data
governance are more likely to succeed at
implementing a Master Data Management
(MDM) strategy. They are quick to understand
that MDM is not some technological silver bullet for
all their information woes. Rather, it is a technology-
enabled approach in which business and IT
collaborate to improve data accuracy, uniformity, and
consistency.
Although defined many different ways, master data is essentially the “core data that is critical
to the operations of an organization”. It is utilized by different applications along with its
associated metadata, attributes and definitions. Master data typically relates to three business
components. The first component is the interaction that exists between customers and
business. The second component relates to enterprise transactions, workflow and
communication. The third component relates to supply chain detail and managing costs of
production and or service offerings. Managing the relationship between individuals, assets and
locations across each component drives the true benefit of an MDM strategy.
As an organization continues to grow, it places more demands on its resources and the flow of
information. Fragmented customer data promotes revenue leaks, creates sales force
deficiencies, and diminishes customer loyalty. Fragmented enterprise data slows time-to-
market initiatives, creates workflow inefficiencies and drives up compliance costs.
Fragmented supply data reduces supply chain efficiency and can negatively impact your cost
of goods.
Therefore, it’s not hard to imagine the benefits of an effective MDM strategy. It becomes
much more difficult to acknowledge that MDM is not a “one size fits all” approach to
managing data. Nor can it be parochial in its deployment. Management must think broadly
and accept the fact that poor data quality affects the entire profitability of the organization.
They must understand the correlation between a successfully deployed MDM strategy and
insight into customer behavior, robust communication across the enterprise and supply
channel efficiency.
While the focus of this article is on organizational readiness and not the detailed steps behind
MDM deployment, it is worth mentioning some common steps for implementing MDM.
Many organizations begin the process by creating a central or “federated hub” for their master
data. This is the location where you maintain the correct definition of the data. Once this hub
is in place, you will need to develop the appropriate architecture to synch data between the
hub and the various underlying systems connecting to it. A key next step is to implement a
robust data quality tool that continuously profiles your core data to ensure proper
synchronization and updates. This is particularly important for organizations acquiring new
assets and technology.

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As is the case with most business improvement strategies, premature investments in
technology can lead to a poor return on investment. Investments in MDM are most effective
when stakeholders understand the challenges and are truly committed to changing “business
as usual” behavior. To begin with, make sure that all business functions have a clear line of
site into your MDM strategy and how it is designed to meet their needs. Common barriers
include cross-functional coordination, buying into the value proposition and resource time and
availability. By committing yourself to the following steps you will considerably improve
your chances for a successful MDM strategy.
First, develop a shared vision across the organization. Your vision
must have senior sponsorship and its scope must be clearly defined.
To ensure success, your vision must include the integration of
technology, people and process. Lack of integration drives waste,
promotes skepticism and reduces overall enthusiasm for the vision.
Therefore, you must clearly demonstrate how your vision supports
the organizations strategic objectives and why it belongs at the top
of your initiatives.
Next your strategy for realizing your vision must be developed. This must include how to
capture and manage master data throughout the organization. Developing your strategy begins
with measuring how well you are presently performing against your objectives. With this data,
management can assess the value of its existing information workflow and application
readiness. This by no means will happen overnight. Detailed mapping tools, cross-
departmental analysis and contributions are required to effectively flush out critical
dependencies and identify where there is value or chaos. Although this process can take
months, it is well worth the investment in time and resources.
Once you have developed your strategy and implementation plan, you should begin
developing an effective governance structure to manage challenges, drive accountability, and
create ongoing metrics. Your MDM metrics should align with other core business metrics.
Without effective metrics and governance, an MDM initiative will likely fail. Therefore, it is
vital that your governance framework is addressed early in the process. Remember that each
department has different dependencies on master data and therefore, their input and output
into the process must be measured and well-defined.
No doubt employees will resist this change but with the
appropriate business and technology sponsorship you will
overcome their objections. Create a core team to oversee the
collective process and become your master data stewards. This
will help you with authoring, validating, updating, distributing
and consuming the master data. You will need to update and
re-prioritize each of the steps throughout this process as
employees become more familiar with the data.
This is where the lines of communication need to remain open and departments can no longer
work in silos. Master data must be routinely profiled to determine its quality and the
appropriate corrective action taken if users begin to notice problems or discrepancies. If

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managed properly, this will provide a healthy tension that will help you identify new
improvement opportunities and drive scalability.
Your MDM technology capabilities are a critical component of delivering information across
the enterprise. These capabilities must build on underlying technologies, such as middleware
and your data integration infrastructure. The size of your organization will help dictate your
ability to manage the process internally or look to external service providers for help.
Remember organizational preparedness means that stakeholders are willing to commit to your
MDM strategy, speak up over flawed processes and make the changes required to
continuously drive improvement. This type of preparedness requires serious organizational
commitment and incentive based frameworks designed to reward the creation and
maintenance of high quality data. If managed thoughtfully, your MDM strategy will drive
significant financial returns to your business while improving the moral of your workforce.

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References:
Three Business-Centric Approaches to Master Data Management, Capgemini, September 2012
The State of Master Data Management, Building the Foundation for a Better Enterprise, Aberdeen
Group, May 2012