Six Key Ingredients For MDM Success

The Six Key Ingredients for
Master Data Management

Success
David Loshin,
President, Knowledge Integrity
Daniel Teachey
Director of Corporate Communications, DataFlux Corporation
Principal MDM
Components and Capabilities
David Loshin
Knowledge Integrity, Inc.
www.knowledge-integrity.com
© 2007 Knowledge Integrity, inc. 2

(301)754-6350
Agenda
 Introduction to master data management
 The MDM Component Layer Model
 MDM Maturity
 MDM Functional Services
 Summary

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The MDM Component Layer Model
Business Process Integration Business

Business Rules Process
Management
MDM Business Component Layer
Application Integration and Synchronization Service Layer Integration

MDM Component Service Layer
Identity Search and Resolution Identification

Record Linkage Merging and Consolidation
Migration Plan
Hierarchy Management Identity Management Management
Administration/Configuration
Data Metadata Data Data Governance

Standards Management Quality Stewardship
MDM Service Layer Architecture

Architecture
Master Data Model MDM System Architecture

(301)754-6350
Mixing It Up…
 Order of review:
1. Identification
2. Business Process Management
3. Management
4. Governance
5. Integration
6. Architecture

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Identification
 Every object subject to “mastering” is managed using a
unique representation within the master repository
 Any time data intended to refer to that object is seen by an
application, its unique representation must be found,
verified, and presented back to the application by the MDM
platform
Identity Search and Resolution

Identification
Record Linkage Merging and Consolidation

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Identity Search and Resolution
David Howard Loshin
Howard
Howard David Loshin
Loshin, Howard
Objective: Provide the services that will seek the

matching record in the master index that represents
the “queried” object

(301)754-6350
Record Linkage – Parsing and Standardization
 Parsing
 Identifying and tagging pieces of each data value within a
semantic context
 Standardization
 Correcting terms based on defined rules
 Assembling components into recognized patterns
 Transformation
 Rule-based modifications into target canonical representations
 Transformation into target format
First Howard
Loshin,Howard D Middle D HowardD Loshin
Last Loshin

(301)754-6350
Consolidating “Replicated” Data
Knowledge Integrity, Inc. 301-754-6350
David Lotion 1163 Kersey Rd
Howard David Loshin 301-754-6350
Knowledge Integrity Incorporated 301 754-6350

(301)754-6350
Knowledge Integrity, Inc. 301-754-6350 David Loshin

301-754-6350

Knowledge Integrity

(301)754-6350

301-754-6350

Knowledge Integrity

(301)754-6350

301-754-6350

Knowledge Integrity

(301)754-6350

301-754-6350

Knowledge Integrity

(301)754-6350
Business Process Management
 Business Process Modeling
 Business Process Integration
 Business Rules
 Business Component Layer
Business Process Integration Business

Process
Business Rules Management
MDM Business Component Layer

(301)754-6350
Mapping to the Business Processes
Terms
Business
Policy
Business Application
Application
Policy Facts Application
Objectives Execution Model Application
Policy
Business Business
Policy Logic

(301)754-6350
Business Rules
Business
Policy
Business rules contribute to the business process

model, and can be isolated and managed as
enterprise content

(301)754-6350
Business Component Layer
 Services reflecting business process needs
 “create new customer”
 “locate matching products”
 “find purchase order”
 “remove supplier”
 “modify vendor status”
 Business layer built on top of business and component
object services
 Business process models document the expected ways in
which the business operates
 The business process model exposes candidate master data
objects and the components that use them
 Business rules traditionally embedded within application
code can be extracted and managed as master content as
well
(301)754-6350
Management
 Administration/Configuration
 Hierarchy Management
 Identity Management
 Migration
Migration Plan
Hierarchy Management Identity Management Management
Administration/Configuration

(301)754-6350
Management Issues
 Configuration, administration, and ongoing maintenance
 Identity management: For any object, enough identifying
information must be managed to determine that
 A record exists and no more than one record for the object, or
 No record exists and one can be created that can be uniquely
distinguished from all others
 Hierarchy management – both historical and connectivity
 Migration management
Application
MDM
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Governance
 Data Standards
 Metadata Management
 Data Quality
 Data Stewardship
Data Metadata Data Data Governance

Standards Management Quality Stewardship

(301)754-6350
Master Object Resolution
 Resolution of candidate master data types requires a
compete view of what composes the information
architecture
 This entails cataloging data sets, their attributes, data
domains, definitions, contexts, and semantics
 This view must facilitate the resolution of:
 Format at the element level,
 Structure at the instance level, and
 Semantics across all levels
 This introduces three challenges:
 Collecting and analyzing master metadata
 Resolving similarity in structure
 Understanding and unifying master data semantics

(301)754-6350
Operationalizing Data Governance
 Actualization of data governance activities enables:
 The identification of explicit and hidden risks associated with
data expectations
 The actualization of the implementation of business policy
 Oversight of the definition of critical data elements
 Monitoring and auditing information quality rule compliance
 Managing enterprise data ownership and stewardship
 Coordination and oversight of enterprise data quality
In general, data governance provides management oversight

for organizational observance of different kinds of
information policies

(301)754-6350
Stewardship: Remediation and Manual Intervention
 Issues with addressing data quality events:
 Immediate remediation of flawed data – does this imply data
correction?
 Not all data flaws can be captured via automated processes –
this implies manual reviews
 Accuracy may only be measured by comparing values
directly
 Carefully integrate manual intervention when necessary in
a controlled manner

(301)754-6350
Integration
 Application integration
 Synchronization
 Component services
Application Integration and Synchronization Service Layer

Integration
MDM Component Service Layer

(301)754-6350
Application Transition
Phase 1 Phase 2 Phase 3
Business Business Business

Application Application Application
Wrapper Wrapper
Facade Facade
Functional
Interface Functional Service
Interface Layer
Data Data MDM Repository

(301)754-6350
Synchronization and Coherence
Issues to consider:
• Frequency of updates to master object attributes
• Performance impacts
• Bottlenecks
• Attribute overlap
Federated Consolidated
EAI/EII Master Repository

(301)754-6350
Component Service – Object Locate
Master Index
“Object Locate”
“Object Factory”

(301)754-6350
Architecture
 Master data model
 MDM system framework
 Service layer architecture
MDM Service Layer Architecture

Architecture
Master Data Model MDM System Architecture

(301)754-6350
Master Data Model
 Limited universe of common master objects
 Party, customer, product, part, supplier, claim, instrument
 Universal models may be suitable as starting points
 Challenges:
 Resolution of metadata in a consistent manner
 Creating a model that accommodates all applications properly
CUST
First VARCHAR(15)
Middle VARCHAR(15)
Last
Address1
VARCHAR(21)
VARCHAR(45)
Last VARCHAR(21) Nightingale-Patterson
Address2 VARCHAR(45)
City VARCHAR(30)
State CHAR(2)
ZIP CHAR(9)
CUSTOMER
FirstName VARCHAR(14)
MiddleName VARCHAR(14)
LastName VARCHAR(20) LastName VARCHAR(20) Nightingale-Patterso
TelNum NUMERIC(10 )

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Central Master/Coexistence

(301)754-6350
Registry

(301)754-6350
Transaction Hub

(301)754-6350
Architecture - Summary
 Architecture decisions rely on the requirements identified
during the analysis of:
 Business processes
 Data requirements
 Operational processing requirements
 Levels of coherence and synchronization
 Governance protocols
 Component and application services

(301)754-6350
Questions?
 If you have questions, comments, or suggestions, please
contact me
David Loshin
301-754-6350
loshin@knowledge-integrity.com

(301)754-6350
The Six Key Ingredients for
Master Data Management
Success
Daniel Teachey
Director of Corporate Communications,
DataFlux Corporation
About DataFlux
 Recognized as a leading provider of data quality and

data integration solutions
 Data quality technology to improve corporate
information on customers, products, inventory,
employees, assets…
 Over 1,000 customers worldwide
 Offices throughout the US and in the UK
 Founded in 1997
– Acquired by SAS in 2000
– Operates as a wholly-owned subsidiary
The Methodology for Data Governance
Analyze:
The Cost of Bad Data
 How is customer retention being affected by poor-

quality data?
 How is poor data affecting the ability to do basic
revenue reporting and analysis?
 What is the loss from failed business transactions
due to data issues?
 How quickly can we respond to business
opportunities?
Analyze:
Discover Poor-Quality Data
 Create a scorecard of
current data quality
 Build a plan to address
pressing data quality
issues
 Develop reports for
management to detail
data quality problems
Improve:
Solve Data Quality Issues
Problem Solution
Multiple occurrences of the same Create match conditions for
customer (duplicate names and/or customers and apply the rule to all
addresses) enterprise applications
Thousands of duplicate, Standardize product and item data
unclassified products on uniform classifications
(UNSPSC)
No validation at point of entry Utilize business rules for data
quality as real-time services via
SOA architecture
Improve:
Build Data Quality Rules
 Create a business rule to

resolve data quality
 Build jobs to standardize,
integrate and enhance
information
 Use jobs in batch or real-time
processes
Control:
Monitor Data Quality
 Ensure information accuracy

 Validate data against your business rules
 Automatically identify invalid data
Control:
Enforce Enterprise Standards
 Enforce business
rules and data
governance
standards
 Check the quality of
product information
over time
 Create dashboards
to help track data
quality issues

Six Key Ingredients For MDM Success

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The Six Key Ingredients for

Master Data Management

© 2007 Knowledge Integrity, inc. 2

© 2007 Knowledge Integrity, inc. 3

Business Process Integration Business

Application Integration and Synchronization Service Layer Integration

Identity Search and Resolution Identification

Data Metadata Data Data Governance

MDM Service Layer Architecture

© 2007 Knowledge Integrity, inc. 4

© 2007 Knowledge Integrity, inc. 5

Identity Search and Resolution

© 2007 Knowledge Integrity, inc. 6

David Howard Loshin

Objective: Provide the services that will seek the

© 2007 Knowledge Integrity, inc. 7

© 2007 Knowledge Integrity, inc. 8

Knowledge Integrity, Inc. 301-754-6350

David Lotion 1163 Kersey Rd

Howard David Loshin 301-754-6350

Knowledge Integrity Incorporated 301 754-6350

© 2007 Knowledge Integrity, inc. 9

Knowledge Integrity, Inc. 301-754-6350 David Loshin

David Lotion 1163 Kersey Rd

Howard David Loshin 301-754-6350

Knowledge Integrity Incorporated 301 754-6350

© 2007 Knowledge Integrity, inc. 10

Knowledge Integrity, Inc. 301-754-6350 David Loshin

David Lotion 1163 Kersey Rd

Howard David Loshin 301-754-6350

Knowledge Integrity Incorporated 301 754-6350

© 2007 Knowledge Integrity, inc. 11

Knowledge Integrity, Inc. 301-754-6350 David Loshin

David Lotion 1163 Kersey Rd

Howard David Loshin 301-754-6350

Knowledge Integrity Incorporated 301 754-6350

© 2007 Knowledge Integrity, inc. 12

Knowledge Integrity, Inc. 301-754-6350 David Loshin

David Lotion 1163 Kersey Rd

Howard David Loshin 301-754-6350

Knowledge Integrity Incorporated 301 754-6350

© 2007 Knowledge Integrity, inc. 13

Business Process Integration Business

MDM Business Component Layer

© 2007 Knowledge Integrity, inc. 14

© 2007 Knowledge Integrity, inc. 15

Business rules contribute to the business process

© 2007 Knowledge Integrity, inc. 16

Hierarchy Management Identity Management Management

© 2007 Knowledge Integrity, inc. 18

Data Metadata Data Data Governance

© 2007 Knowledge Integrity, inc. 20

© 2007 Knowledge Integrity, inc. 21

In general, data governance provides management oversight

© 2007 Knowledge Integrity, inc. 22

© 2007 Knowledge Integrity, inc. 23

Application Integration and Synchronization Service Layer

MDM Component Service Layer

© 2007 Knowledge Integrity, inc. 24

Business Business Business

Data Data MDM Repository

© 2007 Knowledge Integrity, inc. 25

EAI/EII Master Repository