Understanding Reference Data with Aaron Zornes
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Transcript of Understanding Reference Data with Aaron Zornes
Understanding Reference Data Management
Aaron Zornes Chief Research Officer The MDM Institute Conrad Chuang Sr. Product Marketing Manager Orchestra Networks
Today’s Agenda
Part I: Reference Data Management Overview What is reference data? What is Reference Data Management (RDM)? Key requirements for RDM solutions Costs, savings & ROI scenarios
Part II: RDM Implementations
Q&A
© 2012 The MDM Institute www.The-MDM-Institute.com
Founded in 2004 to focus on MDM business drivers & technology challenges
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© 2012 The MDM Institute www.The-MDM-Institute.com
About the MDM Institute
“Independent, Authoritative, & Relevant”
About Aaron Zornes Most quoted industry analyst authority on topics of MDM, RDM & MDG
Founder & Chief Research Officer of the MDM Institute Founder & conference chairman for MDM & Data Governance Summits series
Founded & ran META Group’s largest research practice for 14 years M.S. in Management Information Systems from University of Arizona
What is Reference Data?
Reference data =“coded, semantically stable, relatively static data sets shared by multiple constituencies”
(people, systems, & other master data domains)
Customers
Product
Industry
Sales Person
Geo
Cost / Revenue
Acct
Business Unit ID
© 2012 The MDM Institute www.The-MDM-Institute.com
In the logical view, private & public forms of reference data connect domains & application; consistent values
(& semantics) required for multi-domain views & hierarchies
Errors in reference data will ripple outwards affecting quality of master data in each domain, which in turn affects quality in all dependent transactional systems
RDM needed in both operational & analytical MDM use cases where capability often used to provide attributes, hierarchies & KPIs
© 2012 The MDM Institute www.The-MDM-Institute.com
Why Reference Data? Why Now?
Central role of reference data means RDM becoming “starting point” for many organizations planning MDM & MDG
Systemic Failure
Inconsistent Reporting
Transaction Failure
Regulatory Non-compliance
RDM Prologue
In addition to MDM functionality, RDM systems also manage complex mappings btw different reference data representations & different data domains across enterprise
Governance of RDM is vital— manual or custom RDM often lacks change management, audit controls & granular security/permissions
Because reference data is used to drive key business processes & application logic, errors in reference data can have major negative & multiplicative business impact
© 2012 The MDM Institute www.the-MDM-Institute.com
Just as businesses no longer build own CRM, ERP, &MDM systems, so too are organizations beginning to acquire
commercial RDM, which can be easily tailored or configured & have full ongoing support of major software vendor
Reference Data Categories
Multi-Domain RDM Use Cases
Real-Time / Transactional RDM Use Cases
Public (External)
Countries & Subdivisions (FIPS10) Currencies (ISO 4217) Time Zones (ISO 8601)
Industry Classification (NAICS, ISIC) Security Prices
SWIFT BIC Codes (Payments) ICD-9/10 Codes (Healthcare)
ACORD/ISO Codes (Insurance)
Private (Internal)
Legal Entities Chart of Accounts
Organizations Employees
(i.e., much of HR & Finance Data)
Reference data required for transaction processing
© 2012 The MDM Institute www.The-MDM-Institute.com
Semi-Private? (Shared)
Customized Public Reference Standards (e.g. customized D&B)
Shared Private Data (Finance)
Why Manage Reference Data Independently? (“Hub of hubs”? Federated vs. Centralized?)
Customers
Product
Industry (NAICS, ISIC)
Sales Person
Geo (ISO3166,
FIPS)
Cost / Revenue
Acct
Business Unit ID
© 2012 The MDM Institute www.The-MDM-Institute.com
Geo
Geo
In the logical model, reference data connects domains & applications; in implementations local copies exist for each consumer; challenges include: governance, synchronizing,
versioning, & custom hierarchies/internationalizations
ERP
Finance HR BI/Analytics
Geo Geo Geo
Geo
Critique of Current Approaches for Multi-Domain Reference Data
RDM Solution Drawback Recommendation
Custom-built, manual solutions
Heavy TCO burden Avoid unless reference data demands are truly unique
Spreadsheets Difficult to govern, secure, version, & audit; no modeling, poor hierarchy management
Distribute data in spreadsheets; govern data in RDM solution
Repurpose hierarchy management solution (MSFT MDS, ORCL DRM)
Poor cross-domain support, no classification mapping, few enterprise integration options
Seek out multi-domain RDM solution with hierarchy management
Customize existing domain-specific MDM (Customer or Product)
Rudimentary data modeling, lifecycle mgmt capabilities, & governance features (esp. authoring & workflow)
Use multi-domain RDM solution to maintain connections & govern/update into CDI & PIM via data services
ERP / Enterprise Application
Limited governance, versioning, distribution; also reference data customized use in app may have limited appeal in other systems
Master in external platform. RDM can be used to govern baseline set, versions and adaptations
Real-time / industry-specific RDM
Premium priced R/T RDM solutions do not represent good economic sense
Leverage R/T RDM solutions for R/T use cases (trading, claims processing, payments)
© 2012 The MDM Institute www.The-MDM-Institute.com
“Top 10” RDM Technical Evaluation Criteria
1. Administration of diverse reference data types 2. Ability to map reference data 3. Management of reference data sets 4. Architecture/performance 5. Hierarchy management over
reference data sets 6. Connectivity/integration 7. Import & export 8. Versioning support 9. Security & access control 10. E2E lifecycle management
© 2012 The MDM Institute www.The-MDM-Institute.com
Coming to market are RDM solutions characterized by multiple, diverse levels of integration w/ market-dominant MDM hubs as well as repackagings of existing mid-market
MDM solutions – HOW TO EVALUATE?
“Administration of Diverse Reference Data Types”
© 2012 The MDM Institute www.The-MDM-Institute.com
From R. Thompson,/Credit Suisse, “Multidomain Enterprise Reference Data,” 7th Annual MDM & Data Governance Summit New York 2012
Private Ref Data
Public Ref Data
RDM solution should support a w ide mix of data structures from name:value pairs to hierarchies (see criteria #5).
RDM Top 10 Eval Criteria #1
FINANCE LOCATIONS
“Ability to Map Reference Data” – pt. 1 (cross-domain mapping)
Issuing Country (ISO3166)
Name ISO 4217 Code
USA US Dollar USD CHN Yuan Renminbi CNY JPN Japanese Yen JPY
Official Currency
ISO3166
USD ASM USD IOT USD ECU USD SLV USD GUM USD HTI USD MHL USD FSM USD MNP USD PLW USD PAN USD PRI USD TLS USD TCA USD USA USD VIR CNY CHN JPY JPN
ISO 3166 Code
Name
USA United States of America CHN People’s Republic of China JPN Japan ASM American Samoa IOT British India Ocean Terr. ECU Ecuador SLV El Salvador GUM Guam HTI Haiti MHL Marshall Islands FSM Micronesia MNP Northern Mariana Islands PLW Palau PAN Panama PRI Puerto Rico TLS East Timor TCA Turks and Caicos Islands VIR Virgin Islands
RDM solutions need to preserve values & mappings between reference data sets – both in domain and across domains.
RDM Top 10 Eval Criteria #2
© 2012 The MDM Institute www.The-MDM-Institute.com
LOC
ATI
ON
& F
INA
NC
E
2012 VERSION 2007 VERSION
“Ability to Map Reference Data” – pt. 2 (temporal referential integrity)
2012 NAICS
Description
311224 Soybean and Other Oilseed Processing
221114 Solar Electric Power Generation
221115 Wind Electric Power Generation
221116 Geothermal Electric Power Generation
221117 Biomass Electric Power Generation
221118 Other Electric Power Generation
2007 NAICS
Description
311222 Soybean Processing
311223 Other Oilseed Processing
221119 Other Electric Power Generation - solar electric power generation
RDM solution needs to maintain links between versions, creating a migration path between versions of reference data. “Crosswalks” are
important for understanding how something changed.
MERGE
SPLIT
RDM Top 10 Eval Criteria #2
© 2012 The MDM Institute www.The-MDM-Institute.com
RACI Tasks User
R Update sales hierarchies Rogers
R Change industry classifications Romanova
A Approve hierarchies and effective dates Stark
A Approve industry classifications Banner
A Approve merge into effective dated
Fury
“Mgmt of Reference Data Sets” (Governance workflows)
© 2012 The MDM Institute www.The-MDM-Institute.com
RDM Top 10 Eval Criteria #3
An RDM solution needs to support governance workflows; includes defining: responsible & accountable parties (including systems),
permissions & area of responsibility for each party (field, instance, container level), how parties interact/ tasks, & auditing/ history…
Sequence of interactions
Permissions
Responsibilities
“Hierarchy Management Over Reference Data Sets”
RDM solution should harness relationships between reference data sets & ex isting party or thing data to create hierarchies
SIC Codes
Customer & SIC Code Mapping
ICD-10 Codes
Active Ingredients & ICD10 Mapping
Active Ingredients & Product Mapping
Viewing customers by industry classification
Viewing drugs by Active Ingredient interactions and ICD10 Codes
RDM Top 10 Eval Criteria #5
© 2012 The MDM Institute www.The-MDM-Institute.com
EMEA OPS DEU Cost Ctr
FRA Cost Ctr
APLA OPS
TUR Cost Ctr
JPN Cost Ctr
MEX Cost Ctr
NA OPS CAN Cost Ctr
USA Cost Ctr
“Versioning Support” (a.k.a. time travel)
EMEA OPS
TUR Cost Ctr
DEU Cost Ctr
FRA Cost Ctr
APLA OPS JPN Cost Ctr
MEX Cost Ctr
NA OPS CAN Cost Ctr
USA Cost Ctr
Cost Centers (as-of 2012 Q2)
EMEA OPS DEU Cost Ctr
FRA Cost Ctr
AP OPS TUR Cost Ctr
JPN Cost Ctr
CALA OPS MEX Cost Ctr
NA OPS CAN Cost Ctr
USA Cost Ctr
RDM solution needs versioning & “as of” / effective dating to support recall of reference data values, relationships or hierarchies.
(versioning has *major* implications for analytics/ BI!)
Cost Centers (Current)
Cost Centers (Effective 2013 Q1)
RDM Top 10 Eval Criteria #8
© 2012 The MDM Institute www.The-MDM-Institute.com
Reference Data Management Strategic Planning Assumption
During 2012-13, reference data will emerge as a key entry point for enterprises & in turn influence choice of MDM for Customer, Product & other domains
Concurrently, every MDM vendor will rush to market RDM solutions to apply MDM approach for centralized governance, stewardship & control
By 2013-14, large enterprises will also mandate that Reference Data be part of MDM platform native entities
By 2015, RDM will be commoditized via the efforts of MSFT & ORCL especially
MDM MILESTONE
Managing “simple” reference data will prove to be a key sales entry point for MDM vendors
© 2012 The MDM Institute www.The-MDM-Institute.com
Competition for Multi-Domain RDM
Custom-built, manual solutions Hierarchy management system adaptations
Do not readily support publish-subscribe, classification mapping, etc.
Custom MDM domain type Lack of data modeling flexibility, rudimentary lifecycle
management capabilities & limited data governance features, esp. authoring & workflow
Multi-domain RDM RDBMS vs. semantic/OODBMS
Purpose-built or industry-specific RDM Premium priced real-time RDM solutions do not represent good
economic sense
© 2012 The MDM Institute www.The-MDM-Institute.com
Seek out multi-domain RDM solution providers that understand & have experience addressing complex ity of reference data
“Top 10” RDM Technical Evaluation Criteria
1. Administration of diverse reference data types 2. Ability to map reference data 3. Management of reference data sets 4. Architecture/performance 5. Hierarchy management over
reference data sets 6. Connectivity/integration 7. Import & export 8. Versioning support 9. Security & access control 10. E2E lifecycle management
© 2012 The MDM Institute www.The-MDM-Institute.com
Re-Cap
© 2012 The MDM Institute www.The-MDM-Institute.com
MDM Institute Field Reports – RDM
Aprimo LRDM (Teradata)
DataFlux qMDM
IBM MDM RDM Hub Informatica RDM
Kalido
ASG ROCHADE (Metadata-driven RDM)
Microsoft RDM (to be announced)
Orchestra EBX5
Profisee
SAP MDG-R
Oracle Hyperion DRM
Software AG WebMethods OneData
** General-purpose or multi-domain RDM, not industry-specific or real-time RDM solutions such as capital markets, pharma, e.g., AIM, Asset Control, Eagle, Golden Source, Kingland Systems 360 Data, &RSD
MDM Institute’s Field Reports on RDM
© 2012 The MDM Institute www.The-MDM-Institute.com
Field Report: Orchestra Networks EBX5 for RDM
Strengths Robust solution for centralized DG,
mgmt, stewardship, & distribution of enterprise reference data
Enterprise-scalable RDM1 Strong taxonomy support &
mappings Model-driven ease of deployment,
implementation, & use (built-in process flows + semantic database underpinning)
Support for temporal reference data
Cloud-based, SaaS option
Caveats Nascent North
American market presence
Shortage of EBX-knowledgable consultancies
Vulnerability in rapidly evolving market crowded with mega vendors & other nouveau MDM vendors
Under invested in marketing © 2012 The MDM Institute www.The-MDM-Institute.com
1 – BNP Paribas, Crédit Suisse, Michelin, …
Technip: MDM / RDM essential to delivering multi-billion € oil & gas projects
• Projects require coordination across multiple company and functional areas – Up to 16 Technip companies can be involved for one project
• Data coherence, sharing and timely availability are key success factors
• Private and Public reference data
Implementation: Hub and Registry
Adaptation / Customization essential to supporting downstream applications
Parent
Same structure, Different values
Child inherits structure, but not labels. Good where same hierarchy is used globally and only labels are changed
Different structure, Same
values
Child inherits values, but not structure. Good when hierarchy is customized to fit functional area.
Different structure, Different values
Child partially inherits structure and values. Good where hierarchy and labels change overseas, such as a foreign subsidiary with a different product hierarchy
Benefits realized in every functional area
Bottom Line
RDM is more than “reference tables”– i.e., also complex mappings (logical & physical) between different representations, data domains, versions & hierarchies
RDM impedance mismatch = inconsistent reporting, regulatory noncompliance, transaction failures & systemic failures
Central role of reference data means RDM can be expected to become “starting point” for many organizations planning MDM & MDG
Majority of RDM solutions do not address notion of "temporal" reference data or provide governance
Market misconception/dogma that “RDM *must* be in same stack as multi-domain MDM”
Buy, *don’t* build, RDM © 2012 The MDM Institute www.The-MDM-Institute.com
Aaron Zornes Chief Research Officer The MDM Institute [email protected] www.linkedin.com/in/aaronzornes @azornes
Conrad Chuang Sr. Product Marketing Manager Orchestra Networks [email protected] www.orchestranetworks.com/rdm @onmdm
© 2012 The MDM Institute www.The-MDM-Institute.com
Q&A
© 2010 The MDM Institute www.The-MDM-Institute.com
© 2010 The MDM Institute www.The-MDM-Institute.com
MDM & Data Governance Summit™ Conference Series
© 2012 The MDM Institute www.The-MDM-Institute.com
“More MDM programs get their successful start at MDM & Data Governance Summits than anywhere else”
MDM & Data Governance Summit Singapore Marina Bay Sands Resort ▪ December 4-5
MDM & Data Governance Summit Shanghai Shanghai International Convention Center ▪ March 2013
MDM & Data Governance Summit Europe Radisson BLU – London ▪ April 15-17, 2013
MDM & Data Governance Summit Asia-Pacific Four Points Darling Harbour– Sydney ▪ May 20-21, 2013 MDM & Data Governance Summit San Francisco
Hyatt Embarcadero – San Francisco ▪ May 2013 MDM & Data Governance Tokyo
Belle Salle Kanda– Tokyo ▪ June 14, 2013 MDM & Data Governance Summit Canada
The Carlu – Toronto ▪ June 2013 MDM & Data Governance Summit New York
Marriott Marquis NYC Times Square ▪ October 2-4, 2013
• Orchestra Networks is a leading Reference / Master Data Management vendor.
• Sole focus is MDM/RDM Platform: EBX5 • Company founded in 2000 • Stable, privately-held
About Orchestra Networks
www.orchestranetworks.com/rdm