Module 2

Master Data
Management (MDM)
Objectives
After completing this course, you should be able to:
▸ Describe and understand the concept of master data management
(MDM)
▸ Differentiate MDM architecture/implementation styles

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Question

Why do BI projects fail ?

LACK OF DATA
QUALITY

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Master Data Management
▸ It is a method of managing the organization data as a single coherent system. MDM is
used to ensure the reliability of data, and this data is in various formats that collect from
different data sources.
▸ Master data management allows organizations to improve the quality and consistency of
their key data assets, including customer data, geographic data, product info, and
asset data.
▸ MDM establishes the rules, criteria, and details attached to the data so that everything in
the business makes use of that single point of reference.
▸ The goal of master data management is to provide synchronization to the most critical
pieces of data.

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Master Data Management
Organizations are dependent on the data to streamline operations. The quality of business
intelligence, analytics, and AI results depends on the quality of data. Master data
management helps:
▸ In removing the duplicity of the data.
▸ In integrating the data from various data sources.
▸ In standardizing unrelated data, therefore, the data effectively used.
▸ In eliminating inaccurate data.
▸ In enables a single source of reference that's called "Golden Record".

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Benefits of MDM
▸ A clear and coherent data management is needed for a competitive business strategy. 
▸ Some important benefits of MDM are given below, such as:
▹ Improved Data quality - As the MDM application streamlines the data, it also
eliminates bad data. As a result, users can work with current data that is of better
quality and thus more usable.
▹ Reduces Time and Cost - This application automates most aspects of the data
management process, which saves an enormous amount of time. As the companies
need to employ fewer resources to manage the data with MDM, this solution also
reduces the data management and processing costs.
▹ Avoids Data Duplication - Redundancy is one of the big problems with decentralized
data applications. 

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Benefits of MDM
▹ Increased Data Accuracy - MDM prunes duplication and inconsistencies in the data.
▹ Better Data Compliance - With the regulations and policies around data getting
stricter by the day, efficient data storage and management are critical to any business
dealing with data
▹ Informed Decision Making - MDM offers a holistic vision and better control over
the organization’s data.
▹ Handling Change Requests - With MDM, companies can restrict access to change
the master data to specific individuals
▸ By using MDM, the organizations feel relaxed about the accuracy, up-to-date, and
consistent of the data all over the enterprise.

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Master Data
▸ There are three main types of data that are being captured and maintained within
organizations:
▹ Transactional Data - Data that is being generated by applications in supporting
business processes of the organization
▹ Analytical Data - Data that is calculated and/or derived from transactional
information to support the decision making of the organization
▹ Master Data - represents business objects upon which transactions are done and the
dimensions on which analysis is conducted
▸ Maybe it is best explained by using a sentence as an example.
Consider the following sentence:
"Customer XYZ placed an order for 5 Product ABC on August 8th 2014 for a total of
250.
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Master Data

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▸
Master Data
Master data is often called a golden record of
information in a data domain, which
corresponds to the entity that's the subject of
the data being mastered
▹ Manufacturers - customers, products,
suppliers and materials.
▹ Banks - customers, accounts and
products,
▹ Healthcare organizations- patients,
equipment and supplies
▹ Insurers- members, products and
claims

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Why managing master data is so
important?
▸ Master data is critical for many companies and should be carefully managed. With proper
management, the risk of errors is reduced. Since many different applications and functions
rely on master data, a mistake in the data itself can cause problems elsewhere.
▸ MDM allows companies to utilize tools, software, and expertise to improve the quality and
accuracy of data and to coordinate efforts across the company and also with outside parties,
such as suppliers.
▸ Master data allows companies to create a point of reference for critical data. This can
reduce redundancies, thus lowering costs, and eliminate conflicting data. 
▸ A well-managed master data is also frequently described as a single source of truth (SSOT)
-- or, alternatively, a single version of the truth -- about an organization's data

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Challenges with Master Data
▸ As Master Data is used in various applications and business processes throughout an
organization, issues are bound to occur -and they can have a big impact- if not carefully
managed.
▸ The problems arising with Master Data can generally be classified into the following
categories:
▹ Data Redundancy
▹ Data Inconsistencies
▹ Business Inefficiency
▹ Supporting Business Change

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Implementation Styles of MDM
▸ As every company is unique, with its own set of challenges, IT landscape and business
processes, various different architecture models exist for implementing MDM.
▸ The available budget, the IT landscape, the existing organizational structure, the people
involved and their skillset, all need to be carefully considered when deciding on how to
move forward with Master Data Management in an organisation.
▸

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Implementation Styles of MDM
▸ Master data can be stored in several ways and implemented in a range of
styles. There are four master data management (MDM) implementation
styles, and their different characteristics suit different organizational needs.
▹ Consolidation
▹ Registry
▹ Centralized
▹ Coexistence

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Implementation Styles of MDM
▸ Registry Style
▸  mainly used to spot duplicates by
running cleansing and matching
algorithms on data from your
various source systems
▸ assigns unique global identifiers to
matched records to help identify a
single version of the truth.
▸ central governance of the data is
required to ensure the golden
record is reliable.

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Implementation Styles of MDM
▸ The Consolidation style
▸ The master data is generally consolidated from
multiple sources in the hub to create a single
version of truth, otherwise known as the golden
record.
▸ A golden record is stored in the central hub and
used for reporting and reference. However, any
updates made to the master data are then applied
to the original sources.

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Implementation Styles of MDM
▸ The Coexistence style
▸ Allows you to construct a golden record in the
same way as the Consolidation style, but your
master data is stored in the central MDM
system and updated in its source systems.
▸ More expensive to deploy than the Consolidation
style as master data changes can happen in the
MDM system as well as in the application systems

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Implementation Styles of MDM
▸ Transaction/Centralized style

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MDM Vendors
▸ The MDM market has been rapidly evolving over the last couple of years, and the
reason for that is the broad range of requirements that an MDM system should be able
to handle.
▸ MDM Vendors
▹ IBM
▹ Informatica
▹ Oracle
▹ SAP
▹ Microsoft

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Does a business needs
MDM?

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Take Away….
▸ Implementing Master Data Management is a complex and often costly experience.
▸ MDM is a complex process that can go on for a long time.
▸ Next to implementing MDM, it is as important to give the proper attention to Data
Governance and Data Quality, preferably by creating an overall vision and
strategy for Data Management

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Thank you for listening….
Good Day and Stay Safe!

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