Master Data Management in Practice: Achieving True Customer MDM

257 Pages·2011·3.29 MB·English

by  Dalton Cervo

Master Data
Management
in Practice
Master Data
Management
in Practice
Achieving True
Customer MDM
DALTON CERVO
MARK ALLEN
JohnWiley&Sons,Inc.
Copyright # 2011 byDaltonCervo andMarkAllen. All rightsreserved.
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Library of CongressCataloging-in-Publication Data:
Cervo,Dalton, 1967–
Masterdatamanagementinpractice:achievingtruecustomerMDM/DaltonCervo,
Mark Allen.
p.cm.– (Wiley corporatef&a;559)
Includesindex.
ISBN978-0-470-91055-9 (hardback);ISBN 978-1-118-08566-0 (ebk);
ISBN978-1-118-08567-7 (ebk);ISBN 978-1-118-08568-4
1. Customerrelations–Data processing. 2. Datawarehousing.
3. Dataintegration(Computer science) I. Allen, Mark, 1953- II. Title.
HF5415.5.C432011
0
658.4038–dc22 2011007523
Printed in the United States ofAmerica
10 9 8 7 6 5 4 3 2 1
Inmemoryofmyfather,
whosetmanygoodexamplesinmylife,
butnonemoreimportantthan
theconstantsearchforknowledge.
—Dalton
Tomywonderfulfamily:mywife,Bobbie;
mydaughter,Kim;andmyson,Matt;
foralltheirloveandsupport
throughoutthisproject.
—Mark
Contents
Foreword xiii
Preface xvii
Acknowledgments xxi
Introduction 1
PARTI: PLANNINGYOURCUSTOMERMDMINITIATIVE 7
Chapter1:DefiningYourMDMScopeandApproach 9
MDMApproachesandArchitectures 9
AnalyticalMDM 11
OperationalMDM 14
EnterpriseMDM 18
DefiningtheBusinessCase 20
CostReduction 21
RiskManagement 22
RevenueGrowth 23
SelectingtheRightMDMApproach 23
DataManagementMaturityLevel 24
AddressingtheROIQuestion 27
Summary 27
Note 28
Chapter2:EstablishingEffectiveOwnership 29
TheQuestionofDataOwnership 29
ExecutiveInvolvement 31
MDMwithSegmentedBusinessPractices 31
ATop-DownandBottom-UpApproach 32
CreatingCollaborativePartnerships 33
vii
viii & Contents
CanYourCurrentITandBusinessModel
EffectivelySupportMDM? 33
TheAcceptanceFactor 34
BusinessAccesstoData 35
CoordinationofMDMRolesand
Responsibilities 36
Summary 38
Notes 38
Chapter3:PrimingtheMDMEngine 39
Introduction 39
PositioningMDMTools 40
DataIntegrationandSynchronization 42
DataProfiling 43
DataMigration 46
DataConsolidationandSegmentation 55
ReferenceData 57
Metadata 60
Summary 63
Notes 63
PARTII: THEIMPLEMENTATIONFUNDAMENTALS 65
Chapter4:DataGovernance 67
InitiatingaCustomerDataGovernanceModel 67
PlanningandDesign 69
EstablishingtheCharter 70
Policies,Standards,andControls 78
Implementation 85
ProcessReadiness 85
Implement 88
MaintainandImprove 91
Summary 93
Notes 94
Chapter5:DataStewardship 95
FromConcepttoPractice 95
People 96
MDMProcessCoreTeam 97
OperationalProcessAreas 102
Processes 107
Contents & ix
DataCaretaking 108
Summary 109
Chapter6:DataQualityManagement 111
ImplementingaDataQualityModel 111
AProcessforDataQuality 114
Drivers 115
DataQuality(DQ)Forum 117
Controls/DataGovernance 119
DataAnalysts 120
DesignTeam 123
ITSupport/DataStewards 125
Metrics 126
EstablishingaDataQualityBaseline 127
Context 127
DataQualityDimensions 129
EntitiesandAttributes 129
PuttingItAllTogether 132
DataAlignmentandFitnessAssessment 136
DataCorrectionInitiatives 137
Summary 140
Note 140
Chapter7:DataAccessManagement 141
CreatingtheBusinessDiscipline 141
BeyondtheSystemAdministrator 142
CreatingtheRightGatekeeperModel 144
Preparing 145
EmployeeData 146
AccessManagementRequirements 146
AddUserGroupNames 148
MapPrivilegestoRequirementCategories 149
ProfilingtheData 150
ImplementingandManagingtheProcess 152
TestingandLaunchingtheProcess 157
ResolveIssuesImmediately 157
AuditingandMonitoring 158
SegregationofDuty(SoD)Management 159
Summary 161
Notes 161
x & Contents
PARTIII: ACHIEVINGASTEADYSTATE 163
Chapter8:DataMaintenanceandMetrics 165
DataMaintenance 165
Specify,Profile,andAnalyze 167
Improve 167
DataQualityMetrics 184
Monitors 185
Scorecards 187
Summary 189
Note 190
Chapter9:MaturingYourMDMModel 191
HowtoRecognizeandGaugeMaturity? 191
DataGovernanceMaturity 193
DataStewardshipMaturity 194
DataQualityMaturity 195
DataAccessManagementMaturity 197
Summary 198
Notes 199
PARTIV: ADVANCEDPRACTICES 201
(cid:2)
Chapter10:CreatingtheCustomer360 View 203
Introduction 203
HierarchyManagement(HM) 206
OperationalversusAnalyticalHierarchies 207
SingleversusMultipleHierarchies 208
NumberofLevelsintheCustomerHierarchy 209
VirtualversusPhysicalCustomerRecords 211
LegalversusNon-LegalHierarchies 212
TheElusive,yetAchievable,360(cid:2)CustomerView 213
Summary 213
Chapter11:SurvivingOrganizationalChange 215
HowAdaptableIsYourCustomerMasterData? 215
DataQualityFactors 216
DataCompleteness 217
DataConsistency 217
DataIntegrity 218
TheChangeManagementChallenge 219
Contents & xi
DataGovernanceCanGreatlyAssistaTransitioningState 220
LeveragingtheDataStewardsandAnalysts 220
AdoptingBestPractices 222
Summary 222
Chapter12:BeyondCustomerMDM 225
TheLeadingandLaggingEnds 225
Technology’sInfluenceonMDM 226
OvercomingtheITandBusinessConstraints 228
AchievinganEffectiveEnterprise-WideMDMModel 230
WhereDoesMDMLead? 233
Summary 235
Note 236
RecommendedReading 237
AbouttheAuthors 239
Index 241
Foreword
Everything should be made as simple as possible,
but notsimpler.
—AlbertEinstein
W
HEN EVAN LEVY AND IwroteCustomerDataIntegration:Reach-
ingaSingleVersionoftheTruth(JohnWiley&Sons,2006),wewere
confident we’d chosen a topic of high business import, one with
innumerable use cases and a clear value proposition. Our book was the first
book published on the topic of CDI—now commonly known as customer
masterdatamanagement(MDM)—anditwasadirectresultofourhavingseen
what had happened at companies that didn’t have MDM.
Earlier in the decade, my second book, The CRM Handbook (Addison
Wesley,2000),waspublishedjustascustomerrelationshipmanagementwas
gettingwhite-hot.CompanieswereinvestingtensofmillionsbuyingCRMsys-
tems,redesigningcustomer-facingbusinessprocesses,andtrainingcustomer-
facing staff members in cross-selling conversations.
Afterallthevendorhype,millionsininvestment,andinordinateexecutive
mindshare,itturnedoutthatCRMsystemsweregeneratingdatathatwasno
more useful than it was before CRM. CRM had been a downright failure—
industryanalystswerethrowingaroundthe80percentfigure—attheseearly-
adoptercompanies,mostofwhichhadnaivelybelievedthevendorsandtaken
a ready, shoot, aim! approach to CRM delivery.
The ongoing phenomenon of duplicate or incomplete customer records
continued to be the culprit behind compliance fines, fraught financial report-
ing,erodingsalesrevenues,andembarrassingmarketinggaffes.EvenwithCRM
in place, billing, support, inventory, order management, and other systems
weren’tsharingcustomerdata,andwhentheywereitwasoftentheresultof
years spent building and maintaining custom code. ‘‘We’re data rich, but
informationpoor,’’becametherefrainofmillionsofexecutiveswhosebudgets
xiii