Multi-Domain Master Data Management Multi-Domain Master Data Management Advanced MDM and Data Governance in Practice Mark Allen Dalton Cervo AMSTERDAM (cid:127) BOSTON (cid:127) HEIDELBERG (cid:127) LONDON NEW YORK (cid:127) OXFORD (cid:127) PARIS (cid:127) SAN DIEGO SAN FRANCISCO (cid:127) SINGAPORE (cid:127) SYDNEY (cid:127) TOKYO Morgan Kaufmann is an imprint of Elsevier Acquiring Editor: Steve Elliot Editorial Project Manager: Amy Invernizzi Project Manager: Priya Kumaraguruparan Cover Designer: Mark Rogers Morgan Kaufmann is an imprint of Elsevier 225 Wyman Street, Waltham, MA 02451, USA Copyright © 2015 Elsevier Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Portions of chapters 4,5,6,7,9,11 are from Master Data Management in Practice: Achieving True Customer MDM, used with permission, John Wiley & Sons, 2011. Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility. To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. ISBN: 978-0-12-800835-5 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress For information on all MK publications visit our website at www.mkp.com To Bobbie, Matt, and Kim, and in memory of my mother and father, who always encouraged me to write. —Mark Allen To my wonderful family: my wife Milene, my sons, Ettore and Gian Lucca, for all their love and support. —Dalton Cervo Endorsements “Multi-domain Master Data Management represents a significant challenge to practitioners due to the myriad of disciplines required. Sadly, many organizations fall short of their MDM vision by taking shortcuts with these key disciplines. With their latest publication, Mark Allen and Dalton Cervo provide a complete blueprint for understanding each discipline and how it should be executed in the multi-domain MDM journey. This is a landmark publication and should form essential reading for any organization or practitioner about to embark on a multi-domain MDM initiative.” —Dylan Jones, Founder and Editor of Data Quality Pro “One of the best ways to approach a complicated problem is to break the problem down into its component parts and attack each part individually. Multi-domain MDM is a com- plicated implementation with lots of moving parts. Multi-domain Master Data Management describes and addresses each aspect of multi-domain MDM in a very thorough and straight- forward way. It is easy to understand the specifics of each part, but, more importantly, it is clear how the parts fit together to address the whole of this difficult challenge. The thing I like most about Mark Allen and Dalton Cervo’s books is how they approach issues from a hands-on, implementation-oriented point of view. Multi-domain Master Data Management is packed with practical implementation guides to help you establish the organization, pro- cesses and technologies to be successful with multi-domain MDM. It is a required guidebook to anyone that is embarking on this type of initiative.” —Tony Fisher, VP of Data Collaboration and Integration at Progress Software, and author of The Data Asset: How Smart Companies Govern Their Data for Business Success “Pundits, software vendors, and consulting firms today aren’t exactly shy about espousing the benefits of Big Data. Amazon, Facebook, Google, and Netflix are making sense of peta- bytes of unstructured data. These companies remain, however, the exception that proves the rule. Organizations cannot begin to harness the power of Big Data until they effectively manage its smaller counterpart. MDM may not be as sexy as Hadoop and other newfangled technologies, but make no mistake: Organizations that cannot master practical, step-by-step blocking and tackling are very unlikely to realize any value from one of its most valuable assets: its data. In Multi-domain Master Data Management, Allen and Cervo provide a veritable MDM playbook.” —Phil Simon, author of The Visual Organization and Message Not Received vii Acknowledgments I want to start by thanking my good friend and coauthor Dalton Cervo for his tremendous contribution and dedication to this book. As part of my acknowledgments with our previous book, I had said that I can only hope for more opportunity to work with Dalton in the future. Well, good fortune prevailed, and once again I had the great pleasure to collaborate with him on this book. As always, Dalton’s experiences and knowledge provided the balance and compliment needed to successfully work through many months of sharing thoughts, editing, and delivering this work. My knowledge of data management and data governance comes primarily from the practical experiences that I have had in my career with implementing, supporting, and managing programs and projects with very talented and dedicated colleagues. A special thanks also goes to the many past and present coworkers at Sun Microsystems, Oracle, WellPoint, and Anthem who I have enjoyed many journeys with. Special thanks go to Dylan Jones, Phil Simon, and Tony Fisher, whose endorsements we are very proud to have; and to Evan Levy, for reviewing the manuscript and providing some great feedback. I am deeply grateful to my lovely wife, Bobbie, and our wonderful children, Kim and Matt, for all their patience and support during the many weekends and evenings I spent working on this book. I also would like thank David Loshin, who first suggested we contact Morgan Kaufmann Publishers regarding their interest in a book of this nature, and of course my thanks go to Andrea Dierna, Kaitlin Herbert, Steve Elliot, Charlie Kent, and Priya Kumaraguruparan at Morgan Kaufmann and Elsevier for all their assistance throughout the development and production of this book. —Mark Allen xv Acknowledgments First, I want to thank my coauthor, Mark Allen, for his outstanding contribution, dedication, and friendship. This is our second book together, and once more we have had a very enjoyable and complementary collaborative experience. It is always an honor to work with Mark and share our knowledge. I want to thank my wonderful wife, Milene, and our extraordinary children, Ettore and Gian Lucca, for their love and support. Thanks to my caring mother, Aracy, and my late father, Dan, for their remarkable dedication, teachings, and nurturing. I also humbly thank the recognized experts who kindly have agreed to endorse this book: Tony Fisher, Phil (Rush) Simon, and Dylan Jones. Big thanks also go to Evan Levy for his review and feedback. Last, but not least, thanks to Steve Elliot, Charlie Kent, Kaitlin Herbert, Priya Kumaraguruparan, and Andrea Dierna at Morgan Kaufmann and Elsevier for all their assistance throughout the development and production of this book. —Dalton Cervo xvi About the Authors Mark Allen has over 25 years of data management and project management experience, including extensive planning, deployment, and management experience with master data and data governance. Mark manages the Enterprise Data Governance program at Anthem/WellPoint Inc. Prior to this, Mark was a senior program manager in customer operations groups at both Sun Microsystems and Oracle Corporation. At Sun Microsystems, Mark served as the manager and lead data steward throughout the planning and implementation of Sun’s enterprise customer data hub. Throughout his career, Mark has championed and implemented many data management programs establishing data governance, data quality management, data stewardship, and change management practices. Mark is the coauthor of Master Data Management in Practice: Achieving True Customer MDM (John Wiley & Sons, 2011), has been a speaker at data governance and information quality conferences, and has served on various customer advisory boards focused on sharing and enhancing MDM and data governance practices. Mark can be contacted at mark.allen@ mdm-in-practice.com, or you can visit http://www.mdm-in-practice.com for additional guidance. Dalton Cervo has over 24 years of experience in data management, project management, and software development, including architecture design and implementation of multiple MDM solutions, and management of data quality, data integration, metadata, data governance, and data stewardship programs. Dalton is the founder of Data Gap Consulting, which provides data management services to a wide variety of industries, such as automotive, telecom, energy, retail, and financial services. Prior to this, Dalton was a consultant for SAS/DataFlux, which provides expertise in MDM, data governance, data quality, data integration, and data stewardship. Dalton was also a senior program manager at Sun Microsystems and Oracle Corporation, serving as the data-quality lead throughout the planning and implementation of Sun’s enterprise customer data hub. Dalton has extensive hands-on experience in many data management, change management, and continuous improvement programs. Dalton is coauthor of Master Data Management in Practice: Achieving True Customer MDM (John Wiley & Sons, 2011), and contributor to a chapter on MDM to The Next Wave of Technologies: Opportunity in Chaos (John Wiley & Sons, 2010). xvii About the Authors Dalton has been a speaker at multiple data quality and data management conferences, and has served on customer advisory boards focused on sharing and enhancing MDM and data- quality practices. Dalton has BSCS and MBA degrees, and is PM certified. Dalton can be contacted at [email protected], or you can visit www.datagapconsulting. com for additional information. xviii Preface Master data is data critical to a company’s operations and analytics because of how the data is shared and how it interacts with and provide context to transactional data. Master data are inherently nontransactional and are usually identified and organized within data domains that reflect key business entities, such as customers, partners, products, materials, finance, and employees. Master Data Management (MDM) is the application of discipline and control over master data to achieve a consistent, trusted, and shared representation of the data. This is often referred to as achieving a “single version of the truth.” In MDM, business and information technology (IT) disciplines such as data governance, data stewardship, data integration, Data Quality Management (DQM), and metadata management are applied to ensure that there is accuracy, consistency, stewardship, and control of the master data in these domains. MDM is often thought of as a technical discipline, and it is certainly more familiar to those in IT roles than those in business roles. But a closer look at a well-functioning MDM program reveals that while technology is an integral component that provides MDM with capabilities to operate more efficiently, it is actually the underlying organization and cohesiveness of people and processes associated with the business and IT practices that form the foundation by which MDM becomes a core competency and enterprisewide discipline. In our first book, Master Data Management in Practice: Achieving True Customer MDM (John Wiley & Sons, 2011), we presented a practical, ground-level-view orientation and guidance for the planning and implementation of MDM with a focus on the Customer domain. We indicated that as the MDM market was emerging, so was the opportunity to deliver more guidance and instruction based on common approaches and techniques inherent to the MDM philosophy and discipline. The Customer domain is typically the first MDM data domain that most companies will address before expanding to other key MDM domains. But regardless of how or where a company gets started with its MDM approach, moving toward a multi-domain scope is a common practice. According to the TDWI 2012 Best Practices Report “Next-Generation Master Data Management”: 61% of organizations surveyed have already deployed MDM solutions, and more than one- third practice multidata-domain. xix