Master Data Management
Content
Master Data Management (MDM)
Reaching a Single Version of the Truth
July 2010 Data Warehousing, Business Intelligence & Performance Management Practice
Cognizant
All rights reserved. The information contained herein is subject to change without notice. ©2010, Cognizant Technology Solutions
Agenda
Introduction Why Master Data Management? What is Master Data Management System? Master Data Domain Master Data Method of use Master Data Implementation Style Conclusion Q&A
2
| ©2010, Cognizant Technology Solutions
Confidential
Introduction
Organizational Challenges
Management of Core information (customers, products etc) becomes important when companies struggle to implement IS systems supporting changing business requirements. Core Information kept in many overlapping systems and is often of unknown quality. Difficulty implementing Architectural approaches such as Service-Oriented Architecture (SOA) because organization lacking common definition and management of its core information. Knowing Customers, Products and Services offered becomes fundamental to the organizations operation.
Opportunity
These above challenges has introduced a significant new opportunity called the master data management (MDM) ² how to organize an enterprise view of the organization's key business entities and to govern their quality, use, and synchronization.
3
| ©2010, Cognizant Technology Solutions
Confidential
Introduction
MDM Definition
Master data management is a collection of best data management practices that orchestrate key stakeholders, participants, and business clients in incorporating the business applications, information management methods, and data management tools to implement the policies, procedures, services, and infrastructure to support the capture, integration, and subsequent shared use of accurate, timely, consistent, and complete master data.
MDM Benefits
Comprehensive customer knowledge Improved Customer service Consistent reporting Improved risk management Improved Competitiveness Improved operational efficiency and reduced costs
MDM Benefits
Improved decision making Regulatory compliance Increased information quality Quicker results Improved business productivity Simplified application development
4
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Cross Line of Business
Lines of business capture and maintain unique representations of core business information (customer, product etc), each with their own unique slant on the usage and representation of that information.
Cross Channel
Each line of business may also have a number of distinct (distribution) channels to market. While these channels are often very similar, the resulting treatment of business information is often very different
5
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Cross Business Sub Domain
Different concerns across lines of business and channels often result in variation, not just in where and how business information is captured, but also in what information is required. e.g. customer data
Cross Application/Technology
Packaged systems are designed to manage their own master data and each of the packaged applications will likely only store the information it needs for its own operations²so when you have two or more of them deployed in an environment, there is no common definition of the master data elements. e.g. customers information is normally needed by both an ERP system and a CRM system ² neither represents a complete view of the customer information.
6
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Mergers and Acquisition
7
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Dimensions of MDM
Master Data Management Systems provide authoritative data to an organization. What kind of data? DOMAIN How do we work with the MDM System? IMPLEMENTATION STYLE How do we integrate the MDM System with the existing systems? METHOD OF USE
8
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Domain
Primary Domain
Categorized according to the kinds of questions they address ²³Who?,´ ³What?,´ ³How?´ and Where? Gaining agreement on the definition of an MDM domain can be challenging when different stakeholders within an organization have different requirements or look at the same requirements from different points of view
9
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Methods of use
Primary Usage/Role
Collaborative MDM MDM System coordinates a group of users and systems in order to reach agreement on a set of master data Operational MDM Under the Operational pattern, MDM System participates in the operational transactions and business processes of the enterprise, interacting with other application systems and people Analytical MDM Under the Analytical pattern, the MDM System is a source of authoritative information for downstream analytical systems, and sometimes is a source of insight itself
10
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Implementation
Implementation Style Types
Consolidated Implementation Style Registry Implementation Style Co-existence Implementation Style Transactional Hub Implementation Style
Consolidated Implementation Style
Master Data brought over from a variety of existing application into a Managed Master Data Management System hub. Acts as a System of Reference for other applications Acts as a trusted source for reporting and Analytics Is not bi directional (Doesn¶t go back and update the System of Records)
11
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Registry Implementation Style
Holds minimum required information to uniquely identify a Master Data Record. Easy to Implement Eliminates data redundancy Assumes source to adequately manage the Quality of data
Coexistence Implementation Style
Master Data brought over from a variety of existing application into a Managed Master Data Management System hub. Acts as a System of Reference for other applications Acts as a trusted source for reporting and Analytics Is bi directional (Goes back and update the System of Records)
12
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Transactional Hub Implementation Style
Accommodates required data extensions which is not in the source systems to the MDM system Acts as a System of Record for those added data extensions Highly Complex and Costly
13
| ©2010, Cognizant Technology Solutions
Confidential
Conclusion
Recap
Master Data Management Organization Challenges Master Data Management Definition Master Data Management Benefits Why do we need to Manage Master Data Cross Line of Business Cross Channel Cross Business Sub-Domain Cross Technology Master Data Management System Master Data Domain Master Data Method of use Master Data Implementation Style
14
| ©2010, Cognizant Technology Solutions
Confidential
Questions?
15
| ©2010, Cognizant Technology Solutions
Confidential
Thank you
16
| ©2010, Cognizant Technology Solutions
Confidential
Reaching a Single Version of the Truth
July 2010 Data Warehousing, Business Intelligence & Performance Management Practice
Cognizant
All rights reserved. The information contained herein is subject to change without notice. ©2010, Cognizant Technology Solutions
Agenda
Introduction Why Master Data Management? What is Master Data Management System? Master Data Domain Master Data Method of use Master Data Implementation Style Conclusion Q&A
2
| ©2010, Cognizant Technology Solutions
Confidential
Introduction
Organizational Challenges
Management of Core information (customers, products etc) becomes important when companies struggle to implement IS systems supporting changing business requirements. Core Information kept in many overlapping systems and is often of unknown quality. Difficulty implementing Architectural approaches such as Service-Oriented Architecture (SOA) because organization lacking common definition and management of its core information. Knowing Customers, Products and Services offered becomes fundamental to the organizations operation.
Opportunity
These above challenges has introduced a significant new opportunity called the master data management (MDM) ² how to organize an enterprise view of the organization's key business entities and to govern their quality, use, and synchronization.
3
| ©2010, Cognizant Technology Solutions
Confidential
Introduction
MDM Definition
Master data management is a collection of best data management practices that orchestrate key stakeholders, participants, and business clients in incorporating the business applications, information management methods, and data management tools to implement the policies, procedures, services, and infrastructure to support the capture, integration, and subsequent shared use of accurate, timely, consistent, and complete master data.
MDM Benefits
Comprehensive customer knowledge Improved Customer service Consistent reporting Improved risk management Improved Competitiveness Improved operational efficiency and reduced costs
MDM Benefits
Improved decision making Regulatory compliance Increased information quality Quicker results Improved business productivity Simplified application development
4
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Cross Line of Business
Lines of business capture and maintain unique representations of core business information (customer, product etc), each with their own unique slant on the usage and representation of that information.
Cross Channel
Each line of business may also have a number of distinct (distribution) channels to market. While these channels are often very similar, the resulting treatment of business information is often very different
5
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Cross Business Sub Domain
Different concerns across lines of business and channels often result in variation, not just in where and how business information is captured, but also in what information is required. e.g. customer data
Cross Application/Technology
Packaged systems are designed to manage their own master data and each of the packaged applications will likely only store the information it needs for its own operations²so when you have two or more of them deployed in an environment, there is no common definition of the master data elements. e.g. customers information is normally needed by both an ERP system and a CRM system ² neither represents a complete view of the customer information.
6
| ©2010, Cognizant Technology Solutions
Confidential
Why Master Data Management?
Mergers and Acquisition
7
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Dimensions of MDM
Master Data Management Systems provide authoritative data to an organization. What kind of data? DOMAIN How do we work with the MDM System? IMPLEMENTATION STYLE How do we integrate the MDM System with the existing systems? METHOD OF USE
8
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Domain
Primary Domain
Categorized according to the kinds of questions they address ²³Who?,´ ³What?,´ ³How?´ and Where? Gaining agreement on the definition of an MDM domain can be challenging when different stakeholders within an organization have different requirements or look at the same requirements from different points of view
9
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Methods of use
Primary Usage/Role
Collaborative MDM MDM System coordinates a group of users and systems in order to reach agreement on a set of master data Operational MDM Under the Operational pattern, MDM System participates in the operational transactions and business processes of the enterprise, interacting with other application systems and people Analytical MDM Under the Analytical pattern, the MDM System is a source of authoritative information for downstream analytical systems, and sometimes is a source of insight itself
10
| ©2010, Cognizant Technology Solutions
Confidential
Master Data Implementation
Implementation Style Types
Consolidated Implementation Style Registry Implementation Style Co-existence Implementation Style Transactional Hub Implementation Style
Consolidated Implementation Style
Master Data brought over from a variety of existing application into a Managed Master Data Management System hub. Acts as a System of Reference for other applications Acts as a trusted source for reporting and Analytics Is not bi directional (Doesn¶t go back and update the System of Records)
11
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Registry Implementation Style
Holds minimum required information to uniquely identify a Master Data Record. Easy to Implement Eliminates data redundancy Assumes source to adequately manage the Quality of data
Coexistence Implementation Style
Master Data brought over from a variety of existing application into a Managed Master Data Management System hub. Acts as a System of Reference for other applications Acts as a trusted source for reporting and Analytics Is bi directional (Goes back and update the System of Records)
12
| ©2010, Cognizant Technology Solutions
Confidential
What is a Master Data Management System?
Transactional Hub Implementation Style
Accommodates required data extensions which is not in the source systems to the MDM system Acts as a System of Record for those added data extensions Highly Complex and Costly
13
| ©2010, Cognizant Technology Solutions
Confidential
Conclusion
Recap
Master Data Management Organization Challenges Master Data Management Definition Master Data Management Benefits Why do we need to Manage Master Data Cross Line of Business Cross Channel Cross Business Sub-Domain Cross Technology Master Data Management System Master Data Domain Master Data Method of use Master Data Implementation Style
14
| ©2010, Cognizant Technology Solutions
Confidential
Questions?
15
| ©2010, Cognizant Technology Solutions
Confidential
Thank you
16
| ©2010, Cognizant Technology Solutions
Confidential
