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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

Copyright © 2007, Baseline Consulting. All rights reserved. Do not copy, print, or distribute without written permission 2
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… Hey. They just Awesome!
put me in What’s MDM?
 ERP system
charge of
 Data warehouse MDM.
 Enterprise service bus
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.

Copyright © 2007, Baseline Consulting. All rights reserved. Do not copy, print, or distribute without written permission 4
And These Misperceptions Lead to…

No documented requirements Awesome!


Lack of clear ownership What’s MDM?

Uninformed technology selection


 Overinvestment
 Underinvestment
Lack of educated business
sponsorship
Underestimation of data
governance issues Shoot. I
No clear success metrics thought you’d
know.

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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 Relationship Processing Admin

• Subject Area • Party Identity • Match and • Data Mgmt


Details (“Like” Attributes) Identification Configuration
• Identification • Groupings • CRUD • Data Change
Attributes (Rules/Logic) Processing And Approval
• Item Names • Hierarchy • Data Correction • Security /
• Definitions (Parent/Child) • Data Change Access
• Relationship Logging • Data
• Value
Representation Rules / • Survivorship Maintenance
Situations Rules
• Format
Standardization

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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

Enterprise
Data
Convergence
Processing Maturity

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 Application
System System
App Data App Data

App Data

Application
System

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Level 1: List Provisioning

Data Application
Host System

Master
Master App Data
List
Data

Master
List

App Data

Application
System

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Level 2: Peer-Based Access

Data Changes
& Corrections

Data Application
Host System

Master
App Data
Master
Data List

Data Changes Master


& Corrections List

App Data

Application
System

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Level 3: Centralized Hub Processing

Master Data Hub

Application Application
System System
App Data App Data

Master
Data

App Data

Application
System

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Level 4: Business Rule and Policy Support

Master Data Hub

Application Application
System System
App Data App Data

Master
Data

Policies App Data Business


Rules
Application
System

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Level 5: Enterprise Data Convergence

Master Data Hub

Application Application
Business Rules
System & Policies System
App Data App Data

Master
Data

App Data

Application
System

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Evolution of MDM Deployment

Enterprise
Data
Convergence
Processing Maturity

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

Copyright © 2007, Baseline Consulting. All rights reserved. Do not copy, print, or distribute without written permission 16
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 Protect, enhance, and


fund the asset

IT Governance Provide oversight,


Data assess compliance,
Governance manage risks to the
Data Governance asset

Develop and support the


Data Data
asset per governing
Management policies and standards
Management

Data Data Metadata Data Privacy and


Requirements Administration Management Quality 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
Most companies lack formal means of assigning decision rights
 The “squeaky wheel” syndrome is the determinant
 Politics is the de-facto way to assign decision making authority
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

Enterprise
MDM Maturity
Data
Data Governance Maturity Convergence
Processing Maturity

Business
Rule &
Policy
Support
Centralized
Hub Enterprise
Processing Data
Data Governance
Peer-Based
Governance Program
Access
Council
List Data
Provisioning Stewardship
Application-
Based
No MDM Data
No Data Governance Standards

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 Data Management


Council Team

MDM
Program
Team

IT Application
Architecture 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 Analytic
Data
Be honest about your culture
supporting decision rights and
embracing change
Operational
Be ready to claim a Data
“bigger slice of the pie”

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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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