© 2007 ibm corporation master data management why should a dba care?

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© 2007 IBM Corporation Master Data Management Why Should a DBA Care?

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© 2007 IBM Corporation

Master Data Management

Why Should a DBA Care?

2

Agenda

Master Data Management and the Data Base Professional

Master Data Management Issues

An approach to solving Master Data Management

3

Making Sense Of It All

4

Surrounding the DBA

New and Old PressuresNew and Old PressuresOn Your BusinessOn Your Business

Technical ChallengesTechnical ChallengesOf Managing The DataBaseOf Managing The DataBase

Data Issues/Quality/Data Issues/Quality/GovernanceGovernance

DBADBA

5

So, what’s of interest to the Data Base Professional

Companies are looking for– Cost reduction initiatives– Revenue generation initiatives– Cross-sell opportunities– ROI in 12 months or less

The Data Base Professional has a unique view into– Data Structures– Data Quality– Metadata– Enterprise data assets, especially those spanning multiple departments

The Data Base Professional has the unique position of interfacing between– The Physical– The Logical– The Enterprise

6

7

Agenda

Master Data Management and the Data Base Professional

Master Data Management Issues

An approach to solving Master Data Management

8

Decouples master information from individual applications

Becomes a central, application independent resource

Simplifies ongoing integration tasks and new app development

Ensure consistent master information across transactional and analytical systems

Addresses key issues such as data quality and consistency proactively rather than “after the fact” in the data warehouse

Historical /AnalyticalSystems

Existing

Applications

MasterData

MasterData

Existing

Applications

MasterData

MasterData

Existing

Applications

MasterData

MasterData

Master Data

Management

System

New

Applications

What is Master Data Management?

9

Party(Individual and Org

Customer, Employee,

Supplier, Partner, Citizen)

… to serve customersWho

Product(SKU, Bundle,Part, Service,

Assets)

… by delivering products and services to them

What

Account(Financial account,

loyalty points, agreement, contract)

… via effective understanding of their relationship with them

How

Enterprises exist …

Location

Primary Domains Product Party Account

Supporting Domains Location

Master Data Management 101:Strategic View

10

MDM Builds on Infrastructure and Provides Context

RDBMS, XML Repositories, Unstructured Content Rep.

Standalone Business Object

Customer

Business Object with Interface Exposed as Services: Behavior

Customer checkCredit() fetchAddressHistory() mergeAccounts()

Business Object in the Context of Other Objects

CustomerProduct

Customer Specific Pricing

Val

ue

Pro

posi

tion

Infrastructure

Business

11

The key word in Master Data Management isn’t “Data” … it’s ”Management”

Don’t confuse the symptoms with the root cause

Many organizations attempted to address only the symptoms and have used:

• Data cleansing tools• Data integration tools• Data-centric MDM

– The result? They didn’t solve the problem, data is still out-of-synch, and they have one more siloed repository

In order to solve the problem completely, address the root cause – the functionality that manages the data

– Collaboration – Data definition, creation, and synchronization with all consumers of data

– Operations – SOA data management functionality

– Analytics – Generate insight on master data

Other MDM vendors focus on the symptom (the data) and deliver data-centric tools. IBM is the only vendor who delivers Multiform MDM addressing the Management of master data for all uses and all domains.

Web Site Contact Center Enterprise Systems Data Warehouse

Customer

Product

Location

Order

Analytic / Insight

Supplier

Customer / Shipping

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Product

Location

Order

Analytic / Insight

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Product

Location

Order

Analytic / Insight

Customer / Shipping

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Product

Location

Order

Analytic / Insight

Supplier

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Account

Ro

ot

Cau

se

Sym

pto

m

12

Symptom - Islands of key business data = no master data

Slow time to market for products,poor customer satisfaction,missed revenue opportunities

Today most companies have multiple repositories for key business data like customers, products, suppliers, locations, and accounts

This results in:

– Inability to understand the value of the customer

– Inconsistency in product data across systems

– Missed revenue opportunity due to slow product introduction process

– Inconsistent customer service across channels

Web Site Contact Center Enterprise Systems Data Warehouse

Customer

Customer / Shipping

Product

Location

Supplier

Order

Customer

Product

Location

Order

Customer / Shipping

Product

Location

Account

Order

Customer

Product

Location

Supplier

Order

13

Symptom - A Distortion of reality

Siloed data does not accurately represent key business facts

Key Business Information Current Representation of Key Business Facts

Applications force you to manage data in silos and are not capable of accurately representing the key facts you need to run your business. Master Data Management is designed to manage a complete and accurate profile of all key data and provide each application with the appropriate profile.

Web Site Contact Center Data Warehouse

A Location …

Store #: 555

A Customer …Name: Jane SmithAddress: 123 OakAccount #: 44444Transaction: purchased a gas grill

A Product …

Name: Gas GrillSKU: 1111111Current Price: $550

Jane Smith

123 Oak Street

Gas Grill $550

Store 555

Grills Inc.

Purchased Gas Grill

J. Smith

Gas Grill $700

Oakmill Store

Purchased Tongs

Ship to: 123 Oak

Prop. Grill $550

Store 555

Account

Purchased Gas

Jane Smith-Brown

Propane Grill

Store 555

Big Grill Corp.

Purchased Gas Grill

Enterprise Systems

14

Symptom - A deeper look at the customer data problemReduce customer satisfaction, decrease revenue, hinder relationships

Is a high value web customer

Yet… to the call center she is completely unknown

– Poor customer service

– High cost of service due to “multi call resolution”

Inability to act on customer insight leads to missed sales opportunities

Name: Jane F. Smith

“77% of 144 CIOs surveyed identified single view of customer as the single most important benefit of MDM”

Web Site Contact Center Data Warehouse

Name: Jane Smith

Customer Value: HIGH

Sales History:Products 1234, 5748

Address: 437 Easy St

Name:

Preferences:

Customer Value:

Name: Jane F. Smith

Cross-sell/Upsell Items:5432, 4355

Preferences:

Customer Value: HIGH

Address: 123 Main St

Account:

Address:

Sales History:Products 5748, 6574

Companies quantify impact of bad customer data:

66% indicate profitability of company as a whole was negatively affected by poor information quality

75% indicate bad customer data quality is harming customer service, quality and loyalty

52% identified integration of diverse systems as a major source of inaccurate information

Industry Drivers: Privacy Management, Basel II, “Do not Call” compliance, Patriot Act, Sarbanes Oxley, HIPAA

Companies quantify impact of bad customer data:

66% indicate profitability of company as a whole was negatively affected by poor information quality

75% indicate bad customer data quality is harming customer service, quality and loyalty

52% identified integration of diverse systems as a major source of inaccurate information

Industry Drivers: Privacy Management, Basel II, “Do not Call” compliance, Patriot Act, Sarbanes Oxley, HIPAA

15

Symptom - A deeper look at the product data problemInconsistent Shopping Experience due to inconsistent data across channels.

Product SKU 11111

Product short description: Outdoor gas grill

Features: auto-shut off, rubber wheels, rotisserie, sound system

Price: Regular $700

Price: Sale $550 Expiry Sep. 30

Warranty 1 year

Return Policy 30 days

Outdoor Gas Grill

Name: Jane F. Smith

Price: $700

Features: sound system, rotisserie

Return Policy: 30 days

Product: Gas Grill

Return Policy: 30 days

Warranty: 1-year

“79% of Retailers and 61% of CPG manufacturers rank“item management” as their top priority”

Name: Jane F. Smith

Web Site Contact Center Store

Product: Outdoor grill

Return Policy: 30 days

Features: Auto shut-off,Rubber wheels, rotisserie

Price: $550 *Special*

Product: Gas Grill

Warranty: 1-year

Return Policy: 30 days

Product:

Cross-sell/Upsell Items:

Warranty:

Return Policy:

Price:

Stock:

Price: $550 *Special

Features:

Cross-sell/Upsell Items:5432, 4355

Warranty: 1-year

Features: Sound system,Rotisserie

Gaining control over product information results: Errors in data – 30% of data in retailers systems is wrong Lost productivity – 25 minutes manual cleansing per SKU, per year Slow time to market – 4 weeks to introduce new products Invoice deductions – 43% of invoices result in deductions Failed scans – up to 70,000 per week (1 large US Retailer) Lost sales – up to 3.5% per year

Source: A.T. Kearney, GMA, AMR

Industry Drivers: RFID, Waste Electrical and Electronic Equipment Recycling, Product Information Exchange Standards, Return of Hazardous Substances, Global Data Synchronization, Sarbanes Oxley, etc. (Yankee Group, 2005)

Gaining control over product information results: Errors in data – 30% of data in retailers systems is wrong Lost productivity – 25 minutes manual cleansing per SKU, per year Slow time to market – 4 weeks to introduce new products Invoice deductions – 43% of invoices result in deductions Failed scans – up to 70,000 per week (1 large US Retailer) Lost sales – up to 3.5% per year

Source: A.T. Kearney, GMA, AMR

Industry Drivers: RFID, Waste Electrical and Electronic Equipment Recycling, Product Information Exchange Standards, Return of Hazardous Substances, Global Data Synchronization, Sarbanes Oxley, etc. (Yankee Group, 2005)

16

Root Cause – Current systems are a barrier

The “Master” Data Challenge

Which one is (or could be) the master for all key business data items?

Unfortunately, none of them can

They are all consumers (users) of data … they are not managers of that data– Different definitions of data

– Different usage requirements for data

– Only care about data from the narrow POV of their application business process

Web Site Contact Center Enterprise Systems Data Warehouse

Customer

Product

Location

Order

Analytic / Insight

Supplier

Customer / Shipping

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Product

Location

Order

Analytic / Insight

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Product

Location

Order

Analytic / Insight

Customer / Shipping

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Product

Location

Order

Analytic / Insight

Supplier

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Account

“Through 2010, fewer than 20 percent of large organizations will satisfy their single view of the customer requirement solely by using the data model and database beneath a vendors application suite.”

17

Root Cause – Current Applications have caused the master data problemFragmented and incomplete data management functionality is the root cause of the master data problem

Web Site Contact Center Enterprise Systems

Each system has discrete and often contradictory functionality to manage data– Business processes – any process

related to data management and is reusable across applications

– Operational – functions for providing data to operational processes

– Collaboration – functions to define, collaborate, and manage master data definition & creation

– Analytics – functions to generate insight into data

Lack of consistency across the enterprise for master data functions is the root cause of the master data problem

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Product

Location

Order

Supplier

Customer / Shipping

Customer

Product

Location

Order

Customer

Product

Location

Order

Supplier

Customer / Shipping

Account

18

Data is used by many applications, each for different reasons

– That means that each application

• Requires a unique set of data• Requires a unique set of functions to create and use that data• Requires different analysis of that data

The data lifecycle recognizes key facts

– Data is dynamic

– Data needs to be created, used, and analyzed in a variety of ways by data consumers

– Data management requires its own lifecycle management – creation, usage, analysis, event detection, refresh schedule, subscription management – are all data-centric processes

Root Cause - Understanding the data lifecycle

Application business processes arethe trigger for data creation, usage,and analysis – but their “siloed”functionality doesn’t address each others requirements

19

Root Cause – Understanding the data lifecycle

Application business processesare the trigger for data creation,usage, and analysis – but theirsiloed functionality doesn’t addresseach others requirements

1. Product A is defined in the Enterprise system

Web Site Contact Center Enterprise Systems

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Analytics

Supplier

Collaboration

Product

20

1. Product A is defined in the Enterprise system

2. Enterprise product data is synchronized to the web store

Different definitions of data results in errors

Root Cause – Understanding the data lifecycle

Application business processesare the trigger for data creation,usage, and analysis – but theirsiloed functionality doesn’t addresseach others requirements

Web Site Contact Center Enterprise Systems

BusinessProcesses

OperationalFunctions

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Analytics

Supplier Supplier

Collaboration

ProductX

Collaboration

Product

21

1. Product A is defined in the Enterprise system

2. Enterprise product data is synchronized to the web store

Different definitions of data results in errors

3. A customer orders that product on the web store

Doesn’t identify the customer as a prior client

Web store captures a portion of the customer profile – first and last name, address, email address

Enterprise system processes to order and captures the client data only as a “ship to” address

Root Cause – Understanding the data lifecycle

Application business processesare the trigger for data creation,usage, and analysis – but theirsiloed functionality doesn’t addresseach others requirements

Web Site Contact Center Enterprise Systems

BusinessProcesses

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

Analytics

Supplier

Location

Supplier

CollaborationCollaboration

?ProductProduct

OperationalFunctions

OperationalFunctions

Customer / Shipping

Customer

Customer / Shipping

Order

Account

Order

22

1. Product A is defined in the Enterprise system

2. Enterprise product data is synchronized to the web store

Different definitions of data results in errors

3. A customer orders that product on the web store

Doesn’t identify the customer as a prior client

Web store captures a portion of the customer profile – first and last name, address, email address

Enterprise system processes to order and captures the client data only as a “ship to” address

4. Product B is discounted in the Enterprise system

Change is not reflected in the contact center because the Enterprise system doesn’t understand who subscribes to that change

Root Cause – Understanding the data lifecycle

Application business processesare the trigger for data creation,usage, and analysis – but theirsiloed functionality doesn’t addresseach others requirements

Web Site Contact Center Enterprise Systems

BusinessProcesses

Analytics

BusinessProcesses

Collaboration

Analytics

BusinessProcesses

Analytics

Supplier

Location

Supplier

Collaboration

OperationalFunctions

Customer / Shipping

Customer

Customer / Shipping

Order

Location$ $$ Product

OperationalFunctions

Order

Account

OperationalFunctions

Collaboration

ProductProduct

23

1. Product A is defined in the Enterprise system

2. Enterprise product data is synchronized to the web store

Different definitions of data results in errors

3. A customer orders that product on the web store

Doesn’t identify the customer as a prior client

Web store captures a portion of the customer profile – first and last name, address, email address

Enterprise system processes to order and captures the client data only as a “ship to” address

4. Product B is discounted in the Enterprise system

Change is not reflected in the contact center because the Enterprise system doesn’t understand who subscribes to that change

5. Customer orders product B via the call center Doesn’t get the correct discount Call center captures a different customer

profile – name, phone number, address

Root Cause – Understanding the data lifecycle

Application business processesare the trigger for data creation,usage, and analysis – but theirsiloed functionality doesn’t addresseach others requirements

Web Site Contact Center Enterprise Systems

BusinessProcesses

Analytics

BusinessProcesses

Collaboration

Analytics

BusinessProcesses

Analytics

Supplier

Location

Supplier

CollaborationCollaboration

OperationalFunctions

Customer

Customer / Shipping

Order

Location

Order

ProductProduct

Customer / Shipping

Order

Account

OperationalFunctions

OperationalFunctions

Customer

Customer / Shipping

Location

Product$

24

Root Cause – The end result, the majority of data is incorrect

These are the key facts aboutyour business that directlyimpact your success

Very quickly, data will become

– Out-of-synch

– Incomplete

– Inaccurate

The root cause is separate application functionality for data-centric functionality

How many transactions does your organization process each day?

If the root cause is the application function itself, how can you keep up with the pace of enterprise data corruption

Web Site Contact Center Enterprise Systems

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Supplier

Account

Supplier

Customer

Product

Location

Order

Customer / Shipping

Customer

Product

Location

Order

Product

Location

Order

Customer / Shipping

25

Master data is treated as a data model and low-level data access functionality– “A common data model will solve your

data problems”

Key master data management functionality remains in the consuming applications (their application suite)

End result = data problems will continue and you will have “one more incorrect database”

Application Centric View

Application may notseparate master data functionfrom application function

Limited Data Integration CapabilitiesLimited Data Integration Capabilities

Web Site Contact Center Enterprise Systems

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Master Data Management in Application Suite

Conclusion:

”Data Consumers don’t make good data managers”

26

Niche solution typically focus on only one domain and one usage scenario

But your requirements are for multi-dimensional usage of data across multiple domains

You end up starting with the vendor’s domain, then realize you can’t build upon what you have

Most of these vendors offer very limited integration functions – they attempt to integrate data but are not robust enough to perform

Niche Solution – Master Data Management from single-faceted perspective

Niche solution often address onlyone usage pattern or domain,

CustomerCustomer CustomerCustomer

Operational Location

Collaborative Customer

ProductProduct

Analytical Product

LimitedData Integration

Web Site Contact Center Enterprise Systems

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

LimitedData Integration

LimitedData Integration

Conclusion:

”You can’t get there from here with niche solution, it may not have the breadth of MDM functionality”

27

Your infrastructure looks like this …

Keeping Data Integration in the picture

…but data integration complexity is downplayed

As most data sources are also consumers the integration of data and applications is challenging.

Enterprise Data Warehouse

WebSite

Enterprise Applications

SOURCESOURCE CONSUMERCONSUMER

CallCenter

Process ComponentsInformation

Event Management Data Quality Management Data Governance

IBM Master Data Management

Event Management Data Quality Management Data GovernanceEvent Management Data Quality Management Data Governance

IBM Master Data Management

Industry SOA Business Processes Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDMOperational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Customer

Customer / Shipping

Product

Location

Product

Location

Supplier

Account

Supplier

Account

Integration is about more than having a set of staging tables or a message queue adapter

28

Agenda

Master Data Management and the Data Base Professional

Master Data Management Issues

An approach to solving Master Data Management

29

Separation of common data functionality into an enterprise application

Integration of data function via business services to serve all data consumers

Master data management is complementary to application processes– It provides applications

with accurate and complete data about all key business entities

A Harmonized Solution approach

Separation of applicationfunction from data functionto create common dataprocessing capabilities

Web Site Contact Center Enterprise Systems Data Warehouse

Customer

Product

Location

Order

Analytic / Insight

Supplier

Customer / Shipping

Customer

Product

Location

Order

Analytic / Insight

Product

Location

Order

Analytic / Insight

Customer / Shipping

Customer

Product

Location

Order

Analytic / Insight

Supplier

Account

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

BusinessProcesses

OperationalFunctions

Collaboration

Analytics

Customer

Customer / Shipping

Product

Location

Supplier

Account

30

Understanding Data Managers v. Data ConsumersBuilding a system of checks and balances betweendata processes and application processes

Manager Consumer

Collaborative Usage Definition of enterprise reference data Definition of data required for the application

Operational usage Business services to meet multiple consumer requirements

Functions narrowly defined by application-specific requirements

Analytic usage Analytics defined from enterprise POV and driven by data change

Analytics required for in-transaction decisions, does not factor in change in other systems

Business processes Designed to manage data-centric processes and cross application enterprise processes

Designed to manage application-specific business processes

Event management Defined from enterprise (cross application) POV – events trigger actions and notifications to applications

Defined from narrow application POV and don’t impact other applications

Data quality Managed across applications as part of master data business processes

Managed after the business process is completed (after the fact) and not synchronized with other applications

Data Governance Enterprise rules of data access, audit trail of data usage and subscription management

Siloed application rules do not account for enterprise data governance rules

Data consumers are not designed for data management – their data management functionalityis defined narrowly within the confines of the individual application.

31

A Harmonized Approach to Master Data ManagementKey Characteristics

Multiform MDM– Multiple Styles

• Collaborative MDM – Definition, creation, synchronization

• Operational MDM – SOA management of master data

• Analytical MDM – Analysis and insight

– Multiple Domains• Support for multiple

master data subject areas

– Enterprise business processes - SOA industry models• Integrate master data

with data consumers (business applications)

Event Management Data Quality Management Data Lifecycle Mgmt

Master Data Management

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

Web Site Contact Center Enterprise Systems Data Warehouse

32

Multi-Style

– Collaborative MDM• Authoring, workflow, check in/out

services to support collaboration on master data creation, management and quality control

– Operational MDM• Business services to ingest master

data from range of sources, manage it and fulfill all consumer uses of master data

• Over 500 Business Services• Act as “System of Record”

– Analytic MDM • Identity resolution & relationship

discovery• Master data simplifies input to

analytical environments (DWs) and improves quality (MDM is source)

• Enterprise reporting and analytics• Industry-specific data warehouses

Multi-Domain

– Support for Customer, Product, Account, Location, Supplier ….

Data Quality Management

– Duplicate record processing

– Data validation, cleansing & standardization

Event Management

– Event detection & management

– Notification to business processes and systems

Data Lifecycle Management

– Data Governance

– Data access management

– Auditing, enterprise rules and policies

Master Data ManagementCore Capabilities

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Event Management Data Quality Management Data Lifecycle MgmtEvent Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDMOperational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Customer

Customer / Shipping

Product

Location

Product

Location

Supplier

Account

Supplier

Account

33

Service Oriented Architecture

Standards-based, Open

Application and Process

Neutrality

Domain-centrity/Multi-domain

capable

Multi-styles capable

Highest Performance and Scalability

Extensibility, while safeguarding upgradeability

Flexibility and Modular

Reactive and proactive

Master Data Management ApproachKey Technology Aspects

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Event Management Data Quality Management Data Lifecycle MgmtEvent Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDMOperational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Customer

Customer / Shipping

Product

Location

Product

Location

Supplier

Account

Supplier

Account

34

Flexible, scalable repository managing and linking product, location, trading partner, organization, and terms of trade information

Tools for modeling, managing, capturing and creating this information with high user productivity and high information quality

Integrating and synchronizing this information internally with legacy systems, enterprise applications, repositories and masters

Workflow and solutions for supporting multi-department and multi-enterprise business processes

Exchanging and synchronizing this information externally with business partners

Leveraging this information via many internal and external electronic and human touch points

Master Data ManagementCollaborative MDM

Event Management Data Quality Management Data Lifecycle Mgmt

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

MDM Process Services

Initiate NPI Workflow

Check-out Item

Publish Catalog

35

Build from the ground up as an SOA solution

Extensive range of business services (500+)

Designed for integration with operational applications

Contains both large and fine grain services

– Add customer (large grain)

– Update account

– Get product

Flexibility

– Easily extend or build new services from existing services

– Fit product to meet the process, not vice-verse

Business services are “intelligent” containing packaged and configurable interfaces to business logic components

Master Data ManagementOperational MDM

Event Management Data Quality Management Data Lifecycle Mgmt

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

MDM Business Services

Add Customer

Open Account

View hierarchy

profile

36

Master Data ManagementAnalytical MDM

Analytical MDM addresses the need to augment MDM operational services with “inline” decision support analytics for purposes of reducing risk of increased costs, regulatory or reputation damage such as through:– Compliance Adherence– Thread and Fraud Detection– Conflict Management

Note -- MDM integrates with traditional Analytics (Data Warehouses) as source of quality data to the DW and as consumer of DW information (e.g. lifetime value information)

Event Management Data Quality Management Data Lifecycle Mgmt

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

MDM “Inline” Analytics Identify Thread/Fraud

Conflict of Interest

AML Alerts

37

The master data profile provides the current, accurate and complete business entity data to all systems and channels

Maintains detailed data on all key business entities

– Customers & parties

– Product

– Account

– Hierarchies

– Location

– Relationships…..…..

Cust. Ship-to

Product:Gas Grill

Customer:Jane Smith

Supplier:Big Grill Co.

Master Data ManagementThe complete master data profile

Location Account

…..

Address: Home - 123 Main StBilling – 437 Easy StPrivacy Preferences: Solicitation - No

Sales History: Product 1234, 5748, 6574

Customer Value: High

Interaction History:Service Issue 4/23/06Web Order 2/2/06Store Order 1/5/06

RelationshipsHousehold Daughter – Jenny Husband – JohnEmployer – IBM

Life Events:Daughters BirthdayWedding Anniversary

Demographics:Income - $100,000Interests - RunningAge - 41

Identifier IDs

Agreements & ContractsService ContractWarranty

X-Sell / Up-Sell Items: 5432, 4355

Master Data Services

38

MDM and Data Warehousing

Master Data Management (MDM) and Data Warehousing (DW) complement each other; they have significant synergies– MDM and DW provide

quality data to the business but MDM is valuable beyond the DW for 2 reasons• Latency• Feedback

Analytic Services (DW Models,

Identity Services & Predictive Analytics )

DataServices

Metadata

– MDM and DW have different use cases• MDM provides a “golden” source of truth that is used collaboratively for authoring,

operationally in the transactional / operational environment and supports the delivery of "quality" Master Data to a DW system

• DW systems are a multidimensional collection of historical transactional data that may be include than Master Data used to determine trends and create forecasts

• Introducing MDM enhances the value of existing DWs by improving data integrity and closing the loop with transaction systems

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Product

Location

Supplier

Account

Event Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Event Management Data Quality Management Data Lifecycle MgmtEvent Management Data Quality Management Data Lifecycle Mgmt

IBM Master Data Management

Industry SOA Business Processes Industry SOA Business Processes

Operational MDMCollaborative MDM Analytical MDMOperational MDMCollaborative MDM Analytical MDM

Customer

Customer / Shipping

Customer

Customer / Shipping

Product

Location

Product

Location

Supplier

Account

Supplier

Account

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MDM and Your Enterprise Architecture

Master Data Management is a critical layer in an Information Architecture

Key differentiator – trust – IBM will be there, we’ve done it before – we have services, support, training to make this work!

Key message – MDM isn’t a standalone packaged application, it’s integrated with everything – you want to work with a vendor that understands integration infrastructure

Legend:

Master Data Management Services

Master Data Integration Services

Supports developing InformationIntensive Solutions

Master Data &InformationIntegration

Others..

Data Sources

Security and Privacy

Systems andInfrastructure

Systems Management & Administration

Systems Management & Administration Network & MiddlewareNetwork & Middleware Hardware & SoftwareHardware & Software

Data Repositories AnalyticalAnalytical MetadataMetadataUnstructuredUnstructured

Info

rmat

ion

Se

rvic

es

Data ServicesData Services Metadata ServicesMetadata Services Content ServicesContent Services

Analysis &Discovery

Query, Search & Reporting

Query, Search & Reporting MiningMining MetricsMetrics VisualizationVisualization

ETLETL

Operational Operational Master DataMaster Data

InformationIntegrity

InformationIntegrity

IdentityAnalyticsIdentity

Analytics

SemanticReconciliation

SemanticReconciliation

EAIEAI EIIEII Balance andControls

Balance andControls

LifecycleManagement

LifecycleManagement

Master Data Event Management

Master Data Event Management

AuthoringAuthoring

EmbeddedAnalytics

EmbeddedAnalytics

Access Web BrowserWeb Browser PortalsPortals Web ServicesWeb Services DevicesDevices DeliveryDelivery

Tra

ns

po

rt

an

d

Co

lla

bo

rati

on

Content Mgmt Applications

Hierarchy &Relationship Mgmt

Hierarchy &Relationship Mgmt

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