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A White Paper
by J.T. Taylor
J.T. Taylor
J.T. Taylor is the chief technology officer of iWay Software, an innovator of enterprise integration solutions. Mr. Taylor brings more than 25 years of experience in information technology to his position, with 14 years in the commercial software industry developing and marketing enterprise products. Strategically focused and internationally experienced, Mr. Taylor is a recognized industry leader with extensive experience in the application integration, systems management, and Internet e-commerce markets. Prior to joining iWay Software, Mr. Taylor was the founder and CEO of Semantic Solutions, an independent software vendor and reseller targeting the application development market. Previously, he held the position of senior director of Global Product Marketing and chief software architect at Software AG, a $2 billion independent software vendor in the database, application development, and application integration markets. Prior to Software AG, Mr. Taylor was vice president and chief technology officer of SingleShop, an Internet e-commerce startup, responsible for development and support of the companys innovative software as a service (SaaS) e-commerce products. Mr. Taylor is a decorated veteran of the U.S. Army.
Table of Contents
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Master Data Management: What It Is and Why You Need It How Master Data Management Works The Primary Business Drivers and Requirements Behind MDM Synchronization: One of MDMs Greatest Challenges Data Quality Management and MDM: What Is the Correlation? Master Data Management: A Real-World Scenario iWay Master Data Center Conclusion
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Information Builders
In addition to clients/customers, most companies maintain the following data in multiple disparate sources, and should create master data objects for each related record:
Products. Product data often exists in systems, such as engineering, production, sales, and inventory management Parts/materials. Information about the countless components used in the manufacturing process or the office supplies a company keeps on hand to support day-to-day activities can typically be found in inventory, production, and procurement systems Suppliers/vendors. Accounting teams, as well as engineering and production departments, often keep data about suppliers and vendors in their various business applications Employees. Employee data is stored in human resource management applications, IT help desk systems, payroll packages, and other disparate databases Branches/stores/locations. Data about the various offices and branches a company operates may exist in sales, shipping and distribution, human resource management, and accounting applications
These items are ideal candidates for master data and can typically be found in virtually any organization. However, master data strategies are flexible and can be easily made to conform to any unique or specific business need. In fact, nearly any item, person, or process described in corporate information sets can be incorporated into a master data plan.
Consolidation
Source
Source
Master is single version of truth Data quality management at master Updates occur at sources Updates propagated to master
Master
Source
Source
A single, physical instance of master data is created and maintained. Updates to master data are made at source systems, then transferred back to the central repository.
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Registry
Source
Source
Multiple versions of truth Data quality management is ongoing Updates occur at sources Keys and metadata updated in registry Updates propagated to other sources (optional)
Master
Source
Source
All master data resides in its original databases, while a virtual repository of keys is maintained to aid in the synchronization of MDM records across different information assets. When an update is made to master data at its source, it is harmonized with the associated key and then redistributed among other related back-end systems.
Coexistence
Source
Source
Master is single version of truth Data quality management is ongoing Updates occur at sources or master Updates propagated to other sources
Master
Source
Source
All master data attributes are stored in a central repository, but the master data itself can be generated, stored, and updated either in the MDM database or within the individual applications and back-end systems. Changes, regardless of where they are made, are dynamically disseminated among related sources.
Transaction
Source
Source
Master is single version of truth Data quality management at master Updates occur at master Updates propagated to sources
Master
Source
Source
Master data is read and written to a central repository in its transactional context, in real time upon event execution. Updates are also managed at the source and propagated to the MDM database.
Data Synchronization
Asynchronous harmonization of master data dynamically occurs, in batch, among systems across the entire infrastructure. Updates are recorded at the source, then shared with other sources at pre-determined intervals. There is no right method when it comes to master data management. What will work best for one company may be the wrong approach for another. In order to choose, according to renowned industry blog BeyeNETWORK,1 firms need to carefully evaluate their unique and specific master data management needs, such as:
Timeliness: the speed at which new master data must be available within the environment Latency: the desired time for master data to be delivered when requested Currency: the frequency at which master data should be refreshed Consistency: the degree to which each applications view is like others across the enterprise, and/or the ability of the environment to return the same results each time data is requested, no matter which sources are queried
No matter which style of MDM an organization chooses, a common, standardized master data model is a crucial element. Although it will serve different purposes in different strategies, an MDM model ensures seamless synchronization of all master data among the countless operational systems that use it. For example, when the consolidation method is used, the master data model acts as the hub database, which shares its information with various back-end systems. In the registry approach, the master data model is used for building queries that will collect and transform related application data. For companies that choose the coexistence model, the MDM model will serve as a hub for storing common information attributes. Unique data characteristics are mapped and transformed back to the data model, much in the same way that queries gather source data in the registry approach.
Loshin, David. Master Data Synchronization Assessing Requirements, BeyeNETWORK, January 2008.
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Competitive growth and profitability Increasing customer demands High data management costs Regulatory compliance Low sales conversions Customer defections
The requirements that create a true urgency for MDM across an organization can be viewed from three distinct perspectives business, IT, and data.
Business
Master data management can solve many business challenges and goals. By enhancing the consistency and correctness of information as it flows across and beyond a business, organizations can dramatically improve:
Risk and fraud mitigation Compliance with Sarbanes-Oxley, Basel II, and other regulations Functional initiatives, like sales and marketing programs Corporate-wide performance management Mergers, consolidations, and acquisitions
IT
Master data management can play a crucial role in a variety of mission-critical IT initiatives. In fact, many companies deploy their MDM solutions in conjunction with important technology projects, including:
Infrastructure overhauls such as the creation of service-oriented architectures (SOAs) or the implementation of enterprise resource planning (ERP) packages and other front-end applications. Analysts predict that by 2012, 70 percent of complex SOA projects will compromise business goals unless MDM is implemented Consolidation of disparate architectures as a result of mergers and acquisitions Systems integration efforts
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Master Data Management Business Drivers, All Things Data, May 2009. Master Data Management: The Approach Determines the Results, Aberdeen Group, May 2008.
Data
Companies who embark on master data management plans will realize more significant return on many data-related initiatives, such as:
Governance Quality management Data enrichment and extension via third-party sources Single view of customer, patient, etc. Application migrations
Information Builders
Splitting Records
In many scenarios, duplicate records are uncovered during the course of master data management efforts and are then joined together for the sake of consistency. For example, various systems that house customer information may contain records for a John W. Smith. If these records contain similar details, it may be determined that they are, indeed, the same client. The golden record will then be created, unifying the information that existed in the separate records, and distributing it among all enterprise source systems.
However, as new information enters the environment, it may become clear that there are, in fact, two separate and distinct customers named John W. Smith. Supporting technologies must then be able to split these records back up, using a full data lineage to determine where each portion of the joined record came from, so the right information makes its way back into the right systems.
Information Builders
Kelly, Jeff. Master Data Management Market Trends and Expert Forecasts for 2009, SearchDataManagement.com, January 2009. Loshin, David. Master Data Management Readiness, BeyeNETWORK, June 2008.
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Information Builders
iWay MDC is built on a component architecture that can easily plug and play into any technology environment. Its main modules include:
MDC Storage, which houses and manages original records waiting to be processed, as well as records that have been validated and consolidated. Pre-defined and customizable vertical data models for key master data objects, such as customers, contacts, and products, are utilized MDC Master Data Services, used for processing and maintaining master data. It is comprised of more than 100 elementary and component methods that can be fully configured directly from the administration console MDC Data Quality Services, data process, and quality measures, such as automated record verification, designed to improve information integrity
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MDC Adapters, industry-standard interfaces that enable bidirectional connectivity to virtually any application or data across an enterprise MDC Master Data Manager, an interface for business users and data stewards that provides intuitive visualization and job management MDC Hierarchy Manager, a specialized interface for more advanced end users who need to oversee jobs dealing with hierarchal master data, such as product categories or organizational structures MDC Metadata Interface, which allows users to export metadata from iWay MDC to other systems and metadata repositories MDC Server, a JavaTM server platform for on-demand processing that integrates with iWay Service Manager, IBM WebSphere, BEA WebLogic, SAP NetWeaver, and a variety of other IT infrastructure logging and monitoring services MDC Repository, an internal repository used in on-demand application mode to optimize and accelerate data access
Vertical business models for healthcare, financial services, insurance, and government that have been optimized for customer, contact, and product. These leverage pre-defined and preconfigured master data management services, including profile searches and unification with additional business entities Advanced data quality and unification techniques designed specifically for customer data A Java-based infrastructure based on open standards that is fully compatible with a wide range of popular platforms. This accelerates deployment by simplifying integration with existing IT infrastructures Bundled administration applications for fast and easy configuration and operation, without the need for third-party tools Parallel data processing methods that ensure maximum scalability, as well as full support for incremental data processing in batch or on-demand online modes using ETL, ESB, or SOAstyle integration
And best of all, iWay MDC combines power and functionality with affordability and budgetfriendliness simplifying project complexity and reducing the time from initial development to delivery, at a fraction of the cost of other tools.
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Information Builders
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Conclusion
Master data management (MDM) is a comprehensive technique that synchronizes similar information across disparate sources to ensure enterprise-wide information consistency, no matter how complex or multifaceted the underlying technology environment is. By creating a single, accurate reference point for all common data elements such as customers, products, or employees MDM can help organizations to enhance productivity and operational performance by improving information accuracy and data exchange within and beyond the company. Additionally, MDM can significantly mitigate corporate risk and boost the effectiveness of compliance efforts. There are many challenges when it comes to designing, deploying, and administering an MDM strategy. There are many different MDM models to choose from and companies must closely evaluate each, compare them with their unique business and information requirements, and determine which approach is the best for them. They also must outline and prioritize the key candidates for master data within their business. Additionally, firms must think beyond the initial creation, storage, and dissemination of master data, and clearly define how it will be updated, expanded, and maintained on an ongoing basis, to ensure continued success of the plan. Finally, they must select the right tools and technologies to support their MDM initiative. iWay Softwares Master Data Center (MDC) is a powerful, comprehensive MDM platform that addresses data consistency challenges by delivering the highest quality master data. With robust features, a modular plug and play design that facilitates seamless integration with existing infrastructures, and the flexibility to support virtually any MDM approach, iWay MDC makes unified and validated master data instantly available to ERP and CRM systems, self-service portals, analytical tools, data warehouses, and other applications throughout an enterprise.
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