master data management

[Former Member]

hi,

why do we require masterdata management?why is it necessary to keep all data masterdata ?

[Former Member]

hi santhosh,

why do we require masterdata management?why is it necessary to keep all data masterdata ?

follow these points:

1. Is management of master data strategic to your enterprise?

Master data has always been high importance to organizations but many times people don’t pay much attention to maintaining and managing master data properly. One need to ensure that management and maintenance of master data is not only of high importance to the enterprise but also strategic in terms of having reliable and accurate information management. Master data management strategy should encompass but not limited to achieving accurate and reliable master data, governance, maintaining quality of master data and ultimately achieving better results.

2. What is master data for your enterprise?

Generally, master data comprise of customer, supplier, product, employee, etc but is not limited to only these objects. For Oil and Gas industry, master data object can be oil well, while for food and drug industry it could be chemical composition. One need to define master data for the enterprise and should specify exclusively why.

3. Where and how master data is being used in your enterprise?

Once the definition of master data is clear, it is important to find out where and how master data is being used in the enterprise. One can not restrict its view to application only because sometimes use of master data could be beyond application boundaries.

E.g. product which may get originated in an application can be used in a marketing campaign and may have totally different attributes than application could have. This is very important exercise of overall MDM implementation because this will define characteristics of the master data object. Once all the attributes and characteristics of master object are clear, one can start linking them to software applications.

4. Do you have master data management processes?

Whenever this question gets asked, one responds back with return question – ‘do I need one’? And answer is always yes. Many times people get confused between a process and a workflow. Every organization has processes and sure they have for master data management as well. Question needs to be asked around – is current process to manage and maintain master data enough? Having well defined process - from creation of master data to its retirement through retention and maintenance over its lifecycle is very important and should be well thought of during MDM implementation.

5. How do you maintain master data quality in your organization?

What does it mean? We don’t maintain it, our IT systems maintain quality of data – this is the most common answer I had received so far. But, I must admit that some companies are ahead on this aspect than others and I realized, based on statistical data that was presented to me that enterprise needs to think of having processes and procedures to maintain data quality.

5. Have you implemented Master data governance?

Governance is a hot topic everywhere, from corporate governance to IT governance, it has taken important turn in the way we manage things. Having an authoritative body who defines policies and procedures, implementation of those policies and procedures and then monitoring them through out is a general purpose for governance. The same applies to master data management and it can be part of overall IT governance or information governance but one should thought about as overall MDM strategy.

6. What have IT done to maintain accuracy and reliability of master data?

There is no way in the world that IT has not done anything and left it to business users in heterogeneous IT environment. If you are big SAP shop then you are probably using ALE integration or XI to transfer master data across all instances. If your landscape is mix then you may either have custom solutions or EAI tools doing work for you. But, give a closer look at the question here and then try to find out ‘what’ IT has done so far to ensure reliability and accuracy of master data. Answer most likely is going to be ‘none’ just because there were not any sophisticated tools available until now to solve this problem.

7. How does SAP NetWeaver MDM fit into your new IT Architecture?

Yes, ‘New Architecture’ is important here. If you and your IT are talking old way of point to point integrations, custom interfaces and not thinking of new ways of solving IT problems then stop. I think even before you start topic of MDM, you may want to focus on new IT architecture, which is more flexible and agile to adapt to new business requirements. Today’s ‘Services Oriented Architecture’ just talks about these benefits and one should think about introducing MDM in this new architecture. Master data is the foundation of business and master data management is the core of new architecture as well.

hope this may help you,

Regards,

srinivas