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What Is Master Data Governance

Master data governance creates rules and policies to ensure consistent and accurate data across an organization. It defines roles and responsibilities to validate new data and integrate it properly. Master data management uses governance to structure data for insights while governance creates rules for quality, consistency and change management.

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Naresh Chaitanya Godi
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23 views3 pages

What Is Master Data Governance

Master data governance creates rules and policies to ensure consistent and accurate data across an organization. It defines roles and responsibilities to validate new data and integrate it properly. Master data management uses governance to structure data for insights while governance creates rules for quality, consistency and change management.

Uploaded by

Naresh Chaitanya Godi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is master data governance?

Master data governance creates a system of rules and the policies and procedures enforcing
them to ensure data quality and consistency.

Master data governance includes definitions, policies, workflow, and the roles and
responsibilities of data stewards and users to ensure your data is accurate, complete, and
connected across the enterprise. It’s an ongoing process that matches new data entering the
system with current records, validates its accuracy, and makes sure it’s structured properly to
provide business insights and drive business goals.

Why is master data governance important?

Garbage in, garbage out. We know you’ve heard it before. But consider: Multiple studies cite
poor data quality as the biggest stumbling block to any big data initiative in a business. If you’re
making business decisions based on disconnected, disjointed, and inaccurate data, you’re likely
making the wrong ones, and you won’t know how wrong they were until you’ve lost customers
and market share.

Since master data touches every function in your business, data silos or poor data quality leads
to bad outcomes all around:

 Marketing misses customer insights


 Financial reporting is inaccurate
 Supply chains get disrupted
 Customer orders are fulfilled inaccurately or slowly
 Operations cost more than they should

Lack of master data governance sows inefficiency into your business, costs the bottom line, and
restricts your agility. Data governance is a prerequisite for leveraging innovations like IoT and
Big Data as part of your MDM platform, and without it, you can’t make the connections
necessary to win in the experience economy.

Proper master data governance provides:


 A single best version of the truth across the enterprise
 Standard definitions and business rules for creating and categorizing data
 Workflows to change and approve data
 Audit trails for any changes in master data
 Policies and procedures to enforce data standards
 Quality data that maps to your required business insights and goals

What is the difference between MDM and Data Governance?

Data governance is an essential component of master data management. MDM creates an


overarching system to bring master data together, make connections, structure the data to
reveal business insights and make that data accessible to users. In order to do any of that, the
data needs to be organized and defined the same way.

 Master Data Management: includes all the processes from the creation of data to its
delivery
 Master Data Governance: includes all the rules and policies to make data clean and
consistent

You’re not managing master data if you don’t have proper data governance. Master data
governance creates the rules to ensure quality, consistency, and security in the master data. It
regulates changes in the data and makes sure that new incoming data adheres to the system
rules so that it can be useful. An advanced MDM platform has built-in tools that simplify MDM
governance and allow your business to incorporate data from multiple domains.

Who is responsible for data governance?

Everyone who creates or updates your business’s master data is responsible for MDM and data
governance. The more your stakeholders adhere to master data governance guidelines, the
less data stewardship work is required. It makes sense then to involve your business
stakeholders in setting the data governance framework, especially at the early stages of
creating a data strategy.
Business stakeholders can become better stewards of data quality if you take the time to create
a business glossary and a data dictionary as part of your data governance framework.

Data dictionary: defines master data elements and the relationship between them (how they’re
used together, where they come from, their descriptions).

Business glossary: connects elements of the data dictionary to business terms to improve
business understanding of how data is used.

Good to know…..

Data Owner
A data owner usually is the one within your business that knows the most about a particular set
of data and can make decisions about how it should be governed. Typically, data owners are
the strategists within their function who know what their data needs to look like and have
enough authority to be accountable for the data’s quality.

Data Steward
Data stewards are your policy enforcers. They make sure records adhere to data standards.
Typically, they are subject matter experts within their function and are knee-deep in the data
on a day-to-day basis. A data steward does the heavy lifting on data quality responsibilities and
makes the judgment calls when data doesn’t quite fit the policy norms.

Data Custodian
Data custodians come in for the after-work clean up. They do the updates and other data asset
maintenance, assure that records update to all sources properly and onboard new data assets.

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