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Informatica onMaster Data Management

October 2009

Michael Destein

Director, MDM Solutions Marketing

mdestein@informatica.com

Wes Davis

District Manager

wdavis@informatica.com

+1 (770) 510-2720

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Agenda

• What is Master Data Management?

• What problem does it solve?

• What are the business drivers that justify MDM

investments?

• What are the technical requirements?

• What does Informatica do for MDM

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Definition:What is Master Data Management?

Gartner Forrester Wikipedia

Master data is the consistent and

uniform set of identifiers and extended

attributes that describe the core entities of

the enterprise — and are used across

multiple business processes.

Some examples of core entities are:

parties (customers, prospects, people,

citizens, employees, vendors, suppliers or

trading partners), places (locations, offices,

regional alignments or geographies) and

things (accounts, assets, policies, products

or services).

Groupings of master data include:

organizational hierarchies, sales territories,

product roll-ups, pricing lists, customer

segmentations, preferred suppliers and so

forth.

Master data management (MDM) is a

business capability enabled through

the alignment of multiple information

management technologies, business

process improvements, and

organizational commitments.

MDM is much more than a single

technology solution; it requires an

ecosystem of technologies to allow the

creation, management, and distribution

of high-quality master data throughout

the organization.

Master data management (MDM)

comprises a set of processes and

tools that consistently defines and

manages the non-transactional data

entities of an organization (also called

reference data).

MDM has the objective of providing

processes for collecting,

aggregating, matching,

consolidating, quality-assuring,

persisting and distributing such

data throughout an organization to

ensure consistency and control in the

ongoing maintenance and application

use of this information.

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What does MDM look like to an organization?

Hi, I would like to

open a new

account.

Sure. Do you

have any existing

accounts with us?

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What does MDM look like to an organization?

I’m not sure. You

guys have done

so many

mergers, it’s hard

for me to keep

up. My name is

Johann Graeme. Ok, let me look it

up

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What does MDM look like to an organization?

I’m at number 7,

east first street

What is your

address?

Yohann Graham John Graham – 22 Elm St.

John Graham – 8992 Meadow Lane

J T Graeme – 7 East 1st St., Suite 3

Yolanda Graham – 742 Maple Ave.

Graham Yocum – 992 Benson Way

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What does MDM look like to an organization?

Oh, I’ll send you

a check today.

I’ve found your

records. You

have a past due

of $5, but we can

open a new

account

J T Graeme System ID Display Info

CRM 3993 J T Graeme

Billing 9298 Johann Graeme

7 East 1st St

Suite 3

New York, NY

10003

Credit Status:

$5 Past Due

Customer Since: 1984

Products Owned:

7- Widgets, 10 - Gadgets

OFFER: 2 for 1 Widgets

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What does MDM look like to an organization?

I’d like to get the

web account

Ok, you are all

set. Once we

receive the past

due amount, you

account will be

activated.

J T Graeme System ID Display Info

CRM 3993 J T Graeme

Billing 9298 Johann Graeme

7 East 1st St

Suite 3

New York, NY

10003

Credit Status:

$5 Past Due

OFFER: 2 for 1 Widgets

Web 7292 J T Graeme

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What does MDM look like to an organization?

Oh, I forgot, I

need to change

my address to

628 East 57th

Street

New York City

No problem. I’ve

changed the

address for all of

your accounts

J T Graeme System ID Display Info

CRM 3993 J T Graeme

Billing 9298 Johann Graeme

7 East 1st St

Suite 3

New York, NY

10050

Credit Status:

$5 Past Due

OFFER: 2 for 1 Widgets

Web 7292 J T Graeme

628 E. 57th St

New York, NY

10022

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What does MDM look like to an organization?

Yes, she is my

wife

Oh, we have a

Sally Graeme at

that address.

J T Graeme System ID Display Info

CRM 3993 J T Graeme

Billing 9298 Johann Graeme

7 East 1st St

Suite 3

New York, NY

10050

Credit Status:

$5 Past Due

OFFER: 2 for 1 Widgets

Web 7292 J T Graeme

628 E. 57th St

New York, NY

10022Relationship Check:

Sally Graeme at same address

Click Here to add to household

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What does MDM look like to an organization?

Oh yes, next

week is her

birthday. Please

send them!

We have a

special offer of a

dozen birthday

roses….

J T Graeme System ID Display Info

CRM 3993 J T Graeme

Billing 9298 Johann Graeme

7 East 1st St

Suite 3

New York, NY

10050

Credit Status:

$5 Past Due

OFFER: Dozen Roses and Birthday Vase

Web 7292 J T Graeme

628 E. 57th St

New York, NY

10022

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Business Drivers forData Governance and Master Data Management

Increase cross sale and up sale success

Improve customer loyalty, reduce attrition/churn

Reduce marketing costs

Solicit greater campaign demand

Create ―right‖ products for ―right‖ customers

Increase sales

Increase Revenue

& Marketing

Efficiency

$ Reduce account

setup time and remove incorrect & duplicate data entry

Improve customer service wait time

Provide consolidated statements

Single opt in – opt out preferences

Improve Customer

Communications

(

Risk management

Accurate books & records

Compliance with AML & KYC regulations

Compliance with corporate standards and policies

Avoid regulatory fines and penalties

Mitigate

Risk & Fraud

Provide accurate & consistent customer information through all channels at all touch points

Reduce customer acquisition and account setup costs

Streamline territory management

Identify and eliminate commission payment overlap

Streamline

Operations

*

Business value drives requirements and pace of adoption:

Your architecture should support incremental value over time with a

long term view towards of the future enterprise data architecture

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The High Level Requirements for MDM

Complete Platform for MDM and Data Governance

MDM Hub

Data Quality

Integration

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What goes into a MDM Hub?

Reference Data

Cross References

Name, Address, etc

Account 1

Account 2

Account n

Hierarchies

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Legacy

ERP

CRM

MDM Hubs - Registry Style

Unique ID First Name Last Name

111 John Smith

Unique

ID

Source

System

System ID

111 CRM 929992

111 ERP AKK-111

111 Legacy 098388188

Primary Key First Name Last Name

929992 John Smith

Primary Key First Name Last Name

AKK-111 Johnson Smith

Primary Key Full Name

098388188 John Smith

Matching

Engine

Master Registry Matching Engine uses fuzzy logic to identify

common data entities.

The matches are done on a subset of the attributes

for the master data entity (i.e. first and last name)

The Matching engine will create a unique ID and

select the attributes from a contributing record to

use for display purposes

The Matching engine will also create a cross

reference index storing the unique id, the

contributing source system and that systems

primary keys for the master data entity• Registries are good for

de-duplication and identity resolution

• Used to search for account ids for a

particlar customer

• They don’t provide accuracy,

completeness, standardization, or

enrichment

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Legacy

ERP

CRM

MDM Hubs – Co-Existence Style

UID Fname LName Address Phone DOB

111 Johnson Smith 123 Elm St, San Mateo, CA 94404 650.555.1212 23/10/1969

Unique

ID

Source

System

System ID

111 CRM 929992

111 ERP AKK-111

111 Legacy 098388188

ID FName LName Status Phone Address E-Mail

929992 John Smith Gold 650/555-1212 123 Elm, San Francisco CA 94044 jsmith@yahoo.com

ID First Name Last Name SSN Address Tax Status

AKK-111 Johnson Smith 123-45-1234 123 Elm St, San Mateo, CA 94404-2356 Taxable

ID Full Name Address Phone DOB

098388188 J. A. Smith 121 Elm St. San Mateo CA 94404 4155551212 10/23/69

Matching

Engine

Like Registry Style, the Co-existence system also

matches records from multiple system

Arbitration

Rules

Once records are matched, the Co-existence MDM

Hub will arbitrate the conflicts and missing data to

create a “Golden Record”

Data Quality functions need to be applied to

determine which attribute from contributing

source systems is to be the most trusted as well

as standardizing the data, ensuring accuracy and

integrity, and potentially enriching the data with

external data sources

• Co-Existence Style MDM Hubs allow any system to

create, update, or delete master data entities and

attributes.

• Any duplicates, inaccuracies, incomplete, non-

standard data is arbitrated in the hub to create a

―Golden Record‖

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MDM Data ModelOne Size Does NOT Fit All

Source: http://www.databaseanswers.org/data_models

A key decision is whether to build a data model or purchase one

(sometimes in conjunction with an MDM packaged solution).

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Hub Requirements: Relationships and Hierarchies

Spouse Spouse

Child 1 Child 2

Household

Product

Component 1

Component 2

Component 3

Component 4

Bill of Materials

Global Parent

Subsidiary

Division Division

Subsidiary

Division Division

Corporate Structure

Colleague

Colleague

ColleagueColleague

Colleague

Social Networks

Knows

Works

for

Owns

Produces

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Challenge of Master Data Management…

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Diversity

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Data

Types?

Usage

Styles?

Control?

Business

Value?Scope?

Owner -

ship?

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How to Manage the Diversity….

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WHY DO I NEED TO BE FLEXIBLE?

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50%MDM Initiatives Will

Fail To Achieve Desired Results

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Breadth & Redundancy

65% of Global 2000

organizations will deploy

two or more domain-

specific, MDM supporting

technologies

Gartner Predicts

Dec 2009

Organizations have

5.2CDI solutions on

average.

Customer Data Integration

Phillip Russom, Oct 2008

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Scaling the Maturity Curve

Forrester MDM Maturity Model

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Typical MDM Implementation Lifecycle

Profile and Prioritize

• Quality Profiling

• Establish Data Quality Metrics

• Establish Business Metrics

• Prioritize data entities and processes

Migrate Data

• Define MDM Data Model

• Identify Source Data & Gaps

• Identify Reference Codes

• Transform and Load (Batch & Real-time)

Create Composite Record

• Cleanse Data

• Define Scorecard

• Define matching rules

• Merge records

• Relate master data entities

Provision Master Data

• Capture Data Changes

• Create Data Services

• Synchronize using proper modality

• Orchestrate data management processes

Expand to include

more source and target systems,

data entities, and data attributes

Data Governance Principles

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The key to successfully scaling

the MDM maturity curve is to

build a foundation of:

• Integration

• Data Quality

• Identity Resolution

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Data Integration:The cornerstone of MDM

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Data Integration Requirements

• Accessing data inside

and outside the firewall

• Bi-directional

transformation

• Multiple latencies

• Process orchestration

• Data Federation

• Metadata visibility

This is not your

father’s ETL!

It’s a sophisticated

data integration platform

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Why is data quality so important?

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It’s the

master data!

You are going to use it

everywhere

It’s your trusted source of truth

You will make decisions using it

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Ensuring Data Quality for Master Data

• You can’t fix it just once

• You need to monitor and manage it as a process

• It’s not just Address Correction

• It’s accuracy, consistency, completeness, enrichment, matching and validation

• You need to know the source of the problems

• You won’t be successful just writing a few scripts

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Matching

Identities

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Why are customer data integration projects challenging?

• Identity data is subject to

considerable error and

variation

• Databases about people &

organisations often contain

international data

• Basic search techniques

frequently miss matches or

find too many matches

• Data cleansing is not the

complete answer

EXAMPLES

• Mary Anne, Maryanne

• Easthartford, Hartford East, Hartford

• Browne – Brown

• Johnson, Jhonson

• Hannah, Hamah

• IBM/International Business Machines

• Fedex/Federal Express

• Chris – Christine, Christopher, Tina

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MDM Requires a Hybrid Approach to Identity Matching

Heuristic

Probabilistic

Deterministic

PhoneticLinguistic

Empirical

A combination of methods and algorithms will compensate for

different classes of error and variation present in identity data.

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WHY INFORMATICA?

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Informatica:The Flexible Foundation for MDM

Data

WarehouseApplications Documents SaaS

Customers

Products

Locations

Assets

Employees

Suppliers

All Master Data Domains

Analytical

Registry

Co-existence

Transactional

All Hub Styles

Buy

Packaged

MDM

Build

Your

Own

All Purchase Models

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Unified Architecture

Data

Access

| D

ata

Late

ncy | D

ata

Syn

ch

ron

izati

on

MDM Data Sources

Orchestration | Human Workflow | Web Services

Metadata Management | Data Lineage | “Where Used” AnalysisD

ata

Pu

blish

ing

| D

ata

Deliv

ery

Customer Facing

Applications

eCommerce

Campaign

ManagementCustomer

Portal

Data Profiling

Cleanse & Transform

Hierarchy Management

Role Based Security

Master Data Hub

Data Modeling

Master Record Composition

Data Steward Interface

Identity Resolution

Other

Applications

Upstream

Applications

Downstream

Applications

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Using Informatica for Master Data Management

Flat File

• PowerCenter drives initial loading of MDM Hub

• Informatica Data Quality will cleanse and monitor the quality of the data

• Informatica Identity Resolution matches and links common entities under a global ID

• PowerCenter supports on-going updates and distributes master data in any latency: batch, message based, real-time

Database

MDM

Hub

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The Informatica PlatformThe MDM Foundation For These Customers

Build Your Own

Build Your Own

SAP MDMInitiate Systems

Data Warehouse

Oracle MDMSiperian

MDM

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Next steps…

Start with a small

MDM Project now

and lay a foundation

of data integration,

data quality, and

identity resolution A good place to

start is with a

Customer Registry

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THANK YOU