MDM 2009
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Einat Shimoni
EVP & Senior Analyst
Enterprise Applications,
Analytics & KM Strategies
www.einatstki.blogspot.com
Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 1

MDM Definition
“The set of disciplines and methods to ensure the
currency, meaning and quality of a company’s reference
data within and across subject areas & systems.
MDM ensures that your systems leverage and reuse
common, accurate business data.”
Source: http://www.information-management.com
Sound
familiar?
Weren’t CRM/ERP/EDW/SOA projects
supposed to handle this…?
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How did we try to solve this?
 Homegrown MDM solutions
 CRM as MDM for customer data
 Operational system as “master data” store
 DW acts as MDM (data model and type of data
stored is not usually right for this)
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The business problem
How is a customer defined across all business
units and verticals?
How can we shorten time to realize benefits
from M&As?
Is there a standard hierarchy of products or
product catalog?
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The Technological Problem
Legacy data sets are modeled with vertical
applications in mind, which leads to the duplication
of the same information across multiple data sets
Creating one “single version of the truth” (source
of information) isn’t enough, you have to control
the way end users extract and use it
Organizations with vertically structured IT
organizations may not be "politically" ready for the
move toward a centralized representation of
customer information
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Another MDM definition
 Master data refers to the data elements that describe the core business
entities (customer, product, employee, organization, location).
 The management of master data is the practice of defining, standardizing,
and maintaining the data elements for these core business entities. In
other words, MDM is the management of the organization’s data assets.
 Any successful MDM implementation needs a set of disciplines, policies,
procedures,Text here
Your methods, and infrastructure, along with Your Text here who have
individuals
authority over, are accountable for, and administer the data.
Source: Cutter Consortium
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IT and Business services
What’s in the product?
The actual MDM Hub
Specific data models
Data Integration tools
Data Quality tools
Enrichment
Data Governance
Source: Adastra
MDM is a strategic business (and sometime political) toolset
for data ownership and governance
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Many terms…
Decision rights and accountability for data
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Source: The MDM Institute
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Benefits of using MDM
 One common view of key business data
 Leverages existing infrastructure
 Increasing ROI from application projects
 Enforcing “Data Policies”
 Reduces duplicate data entry
 Cleaner information
 Ability to execute processes faster (e.g –
marketing plans)
 Cases in which MDM is most important:
 M&A faster time to benefit
 Compliance reporting
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MDM Hub “Styles”
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Source: MDM Institute
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MDM Maturity model
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Source: baseline consulting, TDWI
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MDM is a “SOA” way to look at data
SOA Application Platform
SOA Information Platform
Business Data services
SOA Infrastructure Platform
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Trends in MDM market
Expected to exceed $3B by 2012 (MDM Institute)
Move to vertical/horizontal solutions: EMPI, CDI,
PIM, Financial reporting
MDM “silos”/single entity (1st step) as opposed to
enterprise MDM (2nd step for very large enterprises)
Wanted: MDM and Data governance specialists
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STKI CIO Survey 2009: Data
Mng.
Are you planning to enter MDM? Trends
60%
51%
50%
40%
36%
35%
27%
26%
30%
2008
2009
20%
11%
10%
0%
Not familiar with term No plans Plans to enter MDM
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Data
MDM Reality in Israel Mng.
Trends
 Most Israeli organizations don’t have a business
entity that is in charge of Data
 Organizations like the MDM model and concept
 Some are considering using their DW as MDM
(some are starting to)… but wondering about
the data model
 Drivers:
 Compliance and regulatory reporting
 Economies of scale for M&As
 Cross/Up-sell
 Legacy apps
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Data
Recommendations Mng.
Trends
 Establish a global design but take a low-risk
phased implementation approach
 Data Governance program is a MUST
 Be aware of the politics involved (executive
sponsorship is helpful)
 Who are the data stewards? (they will be
managing the data)
 Top-down approach, start with the business
 Think of it as a “Way of life”, not a project
 Avoid heavy customizations, products are
evolving quickly
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For more ideas and research go to:
www.einatstki.blogspot.com

Thank you!
Einat Shimoni
EVP & Senior Analyst
Enterprise Applications,
Analytics & KM Strategies
Einat Shimoni’s work Copyright 2009 @STKI Do not remove source or attribution from any graphic or portion of graphic 18