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Dinesh Chandrasekar DC*

Tuesday, February 8, 2011

MDM Cult Series-Part 4-MDM Implementation Techniques

Dears,

There are four techniques for implementing master data management within an organization. These methods differ in the amount of control they exert over the master data they manage. All of these techniques rely on reliable data integration solutions.


In the following section, a number of acronyms will be used within system illustrations. These acronyms are described below:

 
Master Data Registry


In registry implementations, each system remains in control of its own data. All system data records are mapped in the master data registry. Data maps show the relationships between the keys of two different systems. These keys can be mapped in two different ways:

• One to one: Every record in the main system will have only one corresponding record in the secondary system.

• One to many: Every record in the main system will have one or more corresponding records in the secondary system.

These mappings provide the data integration applications a reliable way to compare related items. At any time, different systems can be compared and cleansed. Although this technique provides important mapping information to the organization, any new items in any system will lead to data inconsistencies within the solution requiring a very complex data management story.

Data aggregation solutions


It is very common for initial MDM implementations to implement this type of watered-down approach. In many cases the applications and systems used for this technique are identical to the more advanced techniques listed below. The major missing factor in the solution is control. It is very difficult for an initial MDM project to get all of the necessary stakeholders to relinquish control of their data to a new product immediately. Another system, usually the most critical business transaction application, remains the system of record and system of entry. Integration processes transfer data from this initial source to the MDM application. This master data may be enhanced by the MDM application itself, but a majority of the important information is still imported from the more entrenched system. These systems may be more entrenched due to a number of factors, including importance to the business, amount of time spent cleansing the data, current process, or even perception of value. Data will then be propagated to other systems. Data controls will be limited as the source system will not be designed to account for any other system’s requirements.

Despite the limitations inherent with this method, this is actually a good method for bringing quick wins to an organization with MDM. Many stakeholders are reluctant to give up the security of their traditional data management processes. By showing early benefits and demonstrating application reliability, an organization can develop trust in the MDM application as the system of record and system of entry.

Using this technique for the initial implementation, risk to the mission-critical application can be mitigated effectively. Less critical applications can begin to source their master data from the MDM application, solving any integration issues that arise without major ramification to the organization. Integration processes can be tested and modified in an iterative fashion.

System-of-record-only implementations


These implementations give complete control of the master data sets to the MDM application. Other systems provide the initial data to be imported into the MDM system, but, unlike the data aggregation solution, the flow of data from this System of Entry is bidirectional. New records are transferred into the MDM application for integration. Any discrepancies in the data defer to the MDM application, which is the system of record.

These implementations still require a degree of data integration and ongoing cleansing as elements may come from both the source system and the MDM application. Also, many times this system of entry only has the ability to detect data issues directly related to the initial use. For instance, any customer information that is not stored in the CRM solution will not be available to determine complete data quality.

Complete enterprise MDM implementations


Complete MDM solutions require the entire lifecycle of the master entities to be managed from within the master data management solution. Controlling the entry of the master data allows the enterprise application to proactively manage the quality of the data. Although an enterprise implementation will be both the system of entry and system of record for all master data entities, it may still require mapping data to other applications.

It would be naive to think that any company will be capable of getting all of their systems to use the exact same set of data. Some transformations will still be required to run the process systems. This does not mean that every defining characteristic of an entity is managed within the solution. Those defining attributes unique to an organization's system operation should be managed within the source system where they have relevance. The enterprise solution should provide a broad range of entry points to be a viable option as the system of entry.

Loving P&C
DC*

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