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

Zero to Five: A Stepwise Progression For MDM and Data Governance
Jill Dyche and Evan Levy
Partners, Baseline Consulting A Webcast for DataFlux November 20, 2007
www.baseline-consulting.com
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Today’s Agenda

The Current Perspective of MDM The IT Conversation: MDM Evolving The Business Conversation: Data Governance Moves in Lockstep

Q&A

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Common MDM Misperceptions
This isn’t that hard. We can do it with our…
  

ERP system Data warehouse Enterprise service bus

Hey. They just put me in charge of MDM.

Awesome! What’s MDM?

It’s the same as metadata management, 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.
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And These Misperceptions Lead to…
No documented requirements Lack of clear ownership Uninformed technology selection
 

Awesome! What’s MDM?

Overinvestment Underinvestment

Lack of educated business sponsorship Underestimation of data governance issues No clear success metrics

Shoot. I thought you’d know.

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5

Views of MDM from the Industry
“The discipline in IT that focuses on the management of reference or master data that is shared by several disparate IT systems and groups”

"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"

"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.”

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The Details of MDM
Content
• Subject Area Details • Identification Attributes • Item Names • Definitions • Value Representation • Format Standardization

Relationship
• Party Identity
(“Like” Attributes)

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

• Groupings (Rules/Logic) • Hierarchy (Parent/Child) • Relationship Rules / Situations

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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

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The Evolution of MDM Deployment

Processing Maturity

Enterprise Data Convergence Business Rule & Policy Support

Centralized Hub Processing

Peer-Based Access List Provisioning No MDM

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

Evolution of MDM Deployment

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Level 0: No Master

Application System
App Data

Application System
App Data

App Data

Application System

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Level 1: List Provisioning

Data Host
Master Data
Master List

Application System
App Data

Master List

App Data

Application System

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Level 2: Peer-Based Access
Data Changes & Corrections

Data Host
Master Data
Master List

Application System
App Data

Data Changes & Corrections

Master List

App Data

Application System

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Level 3: Centralized Hub Processing
Master Data Hub

Application System
App Data
Master Data

Application System
App Data

App Data

Application System

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Level 4: Business Rule and Policy Support
Master Data Hub

Application System
App Data
Master Data

Application System
App Data

Policies

App Data

Business Rules

Application System

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Level 5: Enterprise Data Convergence
Master Data Hub

Application System
App Data

Business Rules & Policies

Application System
App Data

Master Data

App Data

Application System

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Evolution of MDM Deployment

Processing Maturity

Enterprise Data Convergence Business Rule & Policy Support

Centralized Hub Processing

Peer-Based Access List Provisioning No MDM

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

Evolution of MDM Deployment

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

“Data governance encompasses the people, processes and procedures required to create a consistent, enterprise view of a company's data...

“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.

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Governance versus Management
Executive Management IT Governance Data Governance Data Governance
Protect, enhance, and fund the asset

Provide oversight, assess compliance, manage risks to the asset

Data Management

Data Management

Develop and support the asset per governing policies and standards

Data Requirements

Data Administration

Metadata Management

Data Quality

Privacy and Security

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Data Governance and Decision Rights
The concept of “decision rights” establishes WHO is responsible for making WHAT types of decisions Decision rights implies business-IT alignment
 

The business owns key data decisions IT often drives the need for data governance The “squeaky wheel” syndrome is the determinant Politics is the de-facto way to assign decision making authority

Most companies lack formal means of assigning decision rights
 

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
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MDM and Data Governance Evolve Together

MDM Maturity

Processing Maturity

Data Governance Maturity

Enterprise Data Convergence Business Rule & Policy Support
Enterprise Data Governance Program

Centralized Hub Processing

Peer-Based Access List Provisioning No MDM No Data Governance ApplicationBased Data Standards Data Stewardship

Data Governance Council

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

Evolution of Data Governance & MDM

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The MDM Development Habitat
Program Management
Data Governance Council
Data Management Team

MDM Program Team

IT Architecture

Application Development

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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
embracing change

Be honest about your culture supporting decision rights and Be ready to claim a

Analytic Data

“bigger slice of the pie”
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Operational Data

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Questions and (Hopefully) Answers

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Thank You!
Download the White Paper! www.baseline-consulting.com

The Baseline on MDM:
5 Levels of Maturity for MDM

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