Master Data Management www.hexaware.com Hexaware Technologies. All rights reserved. Hexaware’s Q & A Guide to Actionable Intelligence Enabled NA Headquarters : 1095 Cranbury South River Road, Suite 10, Jamesburn, NJ 08831 Main: 609-409-6950, Fax: 609-409-6910 : INDIA Headquarters 152, Sector - 3, Millennium Business Park “A” Block, TTC Inductrial Area, Mahape, Navi Mumbai - 400 710 Tel.: +91-22-67919595, Fax: +91-22-67919500 : EU Headquarters 4th Floor, Cornwall House, 55-57 High Street, Slough Berkshire SL1 1DZ, UK Tele: +44(0)1753 217160, Fax: +44(0)1753 217161 : APAC Headquarters 180 Cecil Street, #09-03, Bangkok Bank Building, Singapore 069546 Tel.: +65-63253020 Hexaware is a leading global provider of IT and BPO services. The company has achieved leadership position in domains such as Banking, Financial Services, Insur- ance, Transportation, Logistics and HR-IT solutions, Hexaware focuses on delivering business results leveraging technology solutions and specializes in Business Intelli- gence & Analytics, Enterprise Applications, Independent Testing and Legacy Moderniza- tion. Hexaware has been providing business technology solutions for over 18 years and offers world class service delivery, technology leadership and skilled human capital.
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Master Data Management
www.hexaware.comHexaware Technologies. All rights reserved.
Hexaware’s Q & A Guide to
Actionable Intelligence Enabled
NA Headquarters : 1095 Cranbury South River Road,Suite 10, Jamesburn, NJ 08831Main: 609-409-6950, Fax: 609-409-6910
Hexaware is a leading global provider of IT and BPO services. The company has achieved leadership position in domains such as Banking, Financial Services, Insur-ance, Transportation, Logistics and HR-IT solutions, Hexaware focuses on delivering business results leveraging technology solutions and specializes in Business Intelli-gence & Analytics, Enterprise Applications, Independent Testing and Legacy Moderniza-tion.
Hexaware has been providing business technology solutions for over 18 years and offers world class service delivery, technology leadership and skilled human capital.
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Data available in an organization can be classified into five types: Master data are the core elements of the business that are applied to multiple transactions and are used to categorize, aggregate, and evaluate the transaction data. Master data is not transaction data but is almost always involved with transactional data. For example: Consider a single transaction "John Doe sold one laser printer, product number MX0315, from Scanners & Printers product family for $90 on 12th December 2011". Master data elements in this transaction are Salesperson (John Doe), Product Group (Scanners & Printers), Product (Laser Printer) and Product Number (MX0315). It can be observed that Master data is synonymous to Dimensions in a data warehouse.
What data should constitute master data? What are the di�erent types of data available in an organization?1 2
Unstructured – Data that cannot be organized into identifiable structure. E.g. emails, web pages, word processor documents etc.
Transactional – Data that forms the transactions processed by the operational systems of the enterprise, e.g. sales, trades, etc. Transactional data typically describes the activities or transactions of the business. Transactional data typically captures the verbs, such as sale, delivery, purchase, email, and revocation.
Metadata – Data that describes the data held in the enterprise information architecture, e.g. definitions of tables and columns in the system catalog of a database, or entities and attributes in a data model.
Hierarchical – Stores the relationships between data such as organizational hierarchy, product lines etc.
Master – Master data are the critical nouns of a business and fall generally into four groupings: people, things, places, and concepts. It should be the single trusted source of data that everyone in an enterprise relies on and uses.
MDM is a set of tools, technology and processes required to create and maintain master data. MDM ensures that an organization's critical information (customers, vendors, products, employees, locations) is uniquely identified, accurately defined and consistently applied across that organization's operational systems – spanning geographic, line-of-business, and application silo boundaries.
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A MDM system typically enables:
The MDM hub is a database with the software to manage the master data that is stored in the database and keep it synchronized with the transactional and/or analytical systems that use the master data.
What are the key characteristics of MDM system?4
What is MDM hub?5
Data Governance – It should provide robust security for the underlying models, define data governance policies and procedures, and support workflows to implement data governance policies.
Metadata Management – MDM system should have the ability to manage business & process metadata.
Data Repository – MDM system should have the ability to model entities, attributes, complex hierarchies and relationships among the entities.
Data Integration – MDM system should integrate with both source and subscribing systems, ideally in both batch and real-time modes. It should support system of entry and system of record operations.
Data Quality – MDM system should have high data quality processes supporting standardization, de-duplication, match and merge etc.
Fig 1: MDM Hub Source: Microsoft MDM hub contains tools and functions required to maintain master data.
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There are three basic architectures available namely Repository, Registry and Hybrid.
master entity in the MDM hub, so that a significant number of MDM queries can be satisfied directly from the hub database, and only queries that refer-ence less-common attributes have to reference the application database.
Gartner has identified four different implementation styles for MDM based on criteria like authoring sour ce, data persistence or storage, data latency etc. This is depicted below:
What are the di�erent architecture styles of MDM hub systems?6
Repository Model
Master data for an enterprise is stored in a single database. The repository data model must include all the attributes required by all the applications that use the master data. The applications that consume, create, or maintain master data are all modified to use the master data in the hub, instead of the master data previously maintained in the application database. For example, the Order Entry and CRM applications would be modified to use the same set of customer tables in the master-data hub, instead of their own data stores.
Registry Model
Registry model is opposite of repository model. Master data is maintained in the application databases, and the MDM hub contains lists of keys that can be used to find all the related records for a particular master-data item. None of the master-data records is stored in the MDM hub. For example, if there are records for a particular customer in the CRM, Order Entry, and Customer Ser-vice databases, the MDM hub would contain a mapping of the keys for these three records to a common key.
Hybrid Model
As the name implies, the hybrid model includes features of both the repository and registry models. The hybrid model leaves the master-data records in the application databases and maintains keys in the MDM hub, as the registry model does. But it also replicates the most important attributes for each
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Organizations can achieve number of benefits including:
What are the key bene�ts of implementing MDM?7
• Improves data sharing and reuse.• Eliminate redundant data management and integration activities.• Improve product and customer management.• Promote consistent use of data.• Reduce supplier on boarding cost.• Improved operational efficiency due to streamlining business processes and good data quality.• Refined fraud prevention.• Improved decision making. • Improved quality and compliance.
Characteristics Datawarehouse MDM
Provide analytical capabilities to analyze data across dimen-sions.
Create and maintain a single, consistent version of reference data only.
Goal
Data Datawarehouse contains transactional (Facts) and Dimen-sional data including any associated hierar-chies.
MDM contains only refer-ence data along with any associated hierarchies or relationships, typically corresponding to dimen-sions in a data warehouse.
End user presentation / Touch points with business users
Data Write back
Reports and / or dashboards are primarily used to present data to end users.
The touch points with business users revolve around data governance. Emphasis is on maintaining data quality, governance and compliance.
Data write back to source system is not supported
A master data system can write back data / provide golden copy of data to source system to ensure consistency.
Although by definition both look similar and complement each other, they are not. Fundamental difference between data warehouse and MDM are:
What is the di�erence between data warehouse and MDM?8
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• Integration with existing applications could provide a challenge unless common formats are defined to exchange data across disparate applications.• Differing code sets, identifiers for master data across systems provides a challenge in defining a unique identifier unless an appro priate global standard exists that can be adopted.• Existing business processes and timelines for creation of reference data could be different across systems and based on the needs of those systems. This could be a challenge when trying to implement a centralized process for data governance if the MDM hub is used to author master data as data synchronization issues could arise.
How can data warehouse systems leverage MDM?9
Managing Dimensional table becomes easier if dimensions in a datawarehouse are modeled based on master data. Due to its design, master data consists of business entities which are nothing but dimensions in datawarehouse parlance. ETL work to load dimension data will be greatly reduced if they are drawn from master data. Also, data enters MDM system only if all business rules were fulfilled. This ensures that dimension data is of high quality in data warehouse.
Most of the well-established technology vendors are providing MDM solutions as part of their product and solution offerings. Some of the notable ones that figure in the Gartner Magic Quadrant are given below:
IBM – IBM has three products for MDM – Infosphere MDM Server, Infosphere MDM Server for Product Information Management and Initiate Master Data Service. IBM has announced a convergence roadmap to integrate the prod-ucts in a phased manner, starting with Infosphere Master Data Management v10.0.
Informatica – Informatica acquired the former Siperian Hub and has made it available in its portfolio as the platform for multi domain MDM.
Do leading Vendors support MDM?11Some of the challenges in implementing MDM are given below:
What are the challenges in implementing MDM?10
• As an MDM program requires changes to existing / setting up of new data governance processes, there would be a challenge in gaining acceptance and support for the program, unless backed by a strong Business Change program.• An MDM program is not limited to its implementation as a one-time activity. It requires to be run as a continuous program to ensure that the data governance processes remain relevant and efficient with the passage of time and that the master data is consistently used by existing applications and new applications. This requires a contin- uous commitment from management.
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Oracle – Oracle has 3 products as part of its MDM portfolio – Oracle Fusion Customer Hub, Oracle CDH and Oracle Siebel UCM.
Can MDM be implemented with Open Source?12
Not many Open Source vendors exist in the MDM space. Talend, a global company operating in the open source data integration space, has introduced an open source MDM as part of its portfolio. The product comes in 2 editions – a community edition that is available at no charge and a licensed Enterprise edition.
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