IBM Master Data Management and data governance

hovember 2OO7
IBM Master Data Management:
Effective data governance
IBM Master Data Management and data governance
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Introduction
Gone are the days when doing business meant doing so only within the borders
of the organization. What used to be single-source data is now multi-source.
Todays business world is comprised not only of disparate systems and groups,
but users as well; open networks with business partners, customers and
suppliers; and diverse architectures and business functions, not to mention
global outsourcing and off-shoring efforts. The net? Every link is an exposure
and every data element is a risk. In short, business today means your network
is the enterprise.
Like any dynamic entity, your organizationalong with its datachanges daily.
And as the data (whether structured or unstructured), is aggregated and
consolidated, to successfully leverage the data across the organization, it must
be treated as an enterprise asset. This is especially important for master data,
the key business facts used across multiple business applications.
Yet, for many organizations with data-sharing environments, complex silos and
isolated stovepipes of information and systems hinder business responsiveness
and decision makers ability to make informed decisions. Collaboration among
users, functions and systems is often fraught with few clear-cut roles and
responsibilities for protecting or enhancing data. Challenges like these
illustrate why data governance has emerged as a strategic priority for
organizations of all sizes.
This white paper will describe how engaging in a master data management (MDM)
project enables effective governance of dataspecifically master dataand
achieves maturity in key categories of the IBM Data Governance Maturity Model.
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Data governance and Master Data Management: A symbiotic relationship
In a world where data fuels the business, IT (the data custodian) has to deliver
the data effectively and accurately to the entire business. For it to remain viable
and relevant, there must be organization-wide support for transforming data,
specifically master data into information.
For most organizations, this critical business information is replicated and
fragmented across business units, geographic branches and applications.
Enterprises now recognize that these symptoms indicate a lack of effective
and complete management of master data. IT departments have attempted to
gain control over this master data using a variety of methods. But few have
demonstrated true success due to their reliance on existing, but repurposed,
systems and applications.
What is master data management?
Master Data Management (MDM) is application infrastructure (not a data
warehouse, enterprise application, data integration or middleware), designed
to manage master data and provide it to applications via business services.
MDM enables users to deliver a new class of information-rich applications based
on business processes and accurate and complete master data. It supports,
augments and leverages your investment in existing applications.
MDM offers:

Anapproachthatdecouplesmasterinformationfromindividualapplications
andunifiesit.

Acentral,application-andprocess-neutralresource.

Ensuresconsistent,up-to-datemasterinformationacrossbusinessprocesses,
transactionalandanalyticalsystems.

Proactivelyaddresseskeydataissuessuchasgovernance,qualityandconsistency.

Simplifiesongoingintegrationtasksandnewapplicationdevelopment.
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A master data solution that manages master data domains (the high-value,
business-critical information about customers, suppliers, products and
accounts) and offers IT the capability to transform information into corporate
knowledge is a good place to begin getting control over disorderly data.
In general, master data management solutions should:

Consolidatedatalockedwithinthenativesystemsandapplications.

Managecommondataandcommondataprocessesindependentlywith
functionalityforuseinbusinessprocesses.

Triggerbusinessprocessesthatoriginatefromdatachange.

Provideasingleunderstandingofthedomaincustomer,product,account,
locationfortheenterprise.
MDM products vary in their domain coverage, ranging from specializing in a
single domain such as customer or product, to spanning multiple and integrated
domains. Those that span multiple domains help to harness not only the value of
the domain, but also the value between domains, also known as relationships.
Relationships may include customers to their locations, to their accounts or to
products they have purchased. This combination of multiple domains
(customer, product, account, location, etc.), multiple functions (operational,
collaborative authoring, and analytical) and the full set of capabilities in a
transactional environment is known as multiformmasterdatamanagement.
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Multiple Usage
Styles/Functions
Characteristics Capabilities
Collaborative MDM
Definition, creation,
synchronization
Authoring, workflow, check in/out services
to support collaboration on master data
creation, management and quality control
Operational MDM
SOA management
of master data
Business services ingest master data
from range of sources, manage it and fulfill
all consumer uses of master data; acts as
system of record
Analytical MDM Analysis and insight
Provides accurate, consistent, and up-
to-date master data to data warehouses,
as well as providing the ability to feed
business intelligence insight data back into
collaborative and operational MDM
Multiple domains
Support for multiple master data subject
areas such as Party, Product, Account
and Location
Enterprise business
processes and SOA
industry models
Integrate master data with data consumers
(business applications, accelerators,
and industry process and data models)
Key characteristics and capabilities of
multiform MDM solutions
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Applying data governance to MDM
Its at the intersection of people, business processes, information, systems
and applications, and multiple MDM functions that data governance
emerges. As a result, the logical starting point for data governance is to
start by focusing on your master data. Moving to master data management
can be the cornerstone of a data governance program. It is important to
note that at the same time, moving to MDM cannot be successful without
data governance.
Both IT and the business have to work together to change business
processes, reach agreements on metadata/data models and data sources,
as well as institute quality and security mechanisms. In short, a successful
master data project requires that data governance play a role. The two
exist symbiotically.
Data governance defined
Data governance is the orchestration of people, process and technology to
enable an organization to leverage information as an enterprise asset.
Data governance manages, safeguards, improves and protects organiza-
tional information. Effective data governance can enhance the quality,
availability and integrity of your data by enabling cross-organizational
collaboration and structured policy-making.
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Data governance overcomes silos of organizational self-interest to benefit the
overall organization, helping companies leverage the full breadth of their
corporate information, directly impacting five factors critical to
any organization:

Increasingrevenue

Loweringcosts

Reducingrisks

Increasingdataconfidence

Improvingcompliance
As organizations increase their dependency on information, it becomes critical
to manage, control and measure the value of data that resides within the
organization. Yet, in many cases, companies dont know how to examine their
data practices, determine who should be involved and what kind of structure it
takes to govern effectively.
With a solid data governance program in place, you can enact a transforma-
tional change throughout and beyond the organization that addresses the
following data governance issues:

Whatthegovernanceprocesslookslikeandwhoisresponsibleforgoverning

Whatpoliciesareinplace,whowritesthepolicies,andhowtheygetapproved
andchanged

Whichdatashouldbeprioritized,thelocationandvalueofthedata

Whatvulnerabilitiesexist,howrisksareclassifiedandwhichriskstoaccept,
mitigateortransfer

Whatcontrolsareinplace,whopaysforthecontrolsandtheirlocation

Howprogressismeasured,auditresultsandwhoreceivesthisinformation
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A forum for data governance
With high-profile data breaches and incidents skyrocketing, the challenge to
protect and manage data has become a universal concern for organizations.
To help better understand this emerging space, IBM created a leadership forum
in November 2004 for chief data, security, risk, compliance and privacy officers
concerned with data governance issues. Since then, the IBM Data Governance
Council has grown to nearly 55 leading companies, universities and IBM
Business Partners, including large financial institutions, telecommunications
organizations, retailers and public-sector governments.
With a common forum for data governance practitioners to explore challenges
and solutions, the Council has developed benchmarks, best practices and
guides to successful data governance. Working together, the members of the
Council have identified the top governance challenges facing organizations,
including:

Alackofcross-organizationaldatagovernancestructures,policy-making,
riskcalculationordataassetappreciation,causingadisconnectbetweenbusiness
goalsandITprograms.

Governancepoliciesarenotlinkedtostructuredrequirementsgathering,
forecastingandreporting.

Risksarenotaddressedfromalifecycleperspectivewithcommondatarepositories,
policies,standardsandcalculationprocesses.

Metadataandbusinessglossariesarenotusedastotrackdataquality,
bridgesemanticdifferencesanddemonstratethebusinessvalueofdata.

Fewtechnologiesexisttodaytoassessdatavalues,calculateriskandsupport
thehumanprocessofgoverningdatausageinanenterprise.

Controls,complianceandarchitecturearedeployedbeforelong-term
consequencesaremodeled.
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Maturity Model
The Council members also collaborated to define a common benchmark of
observable and desired behaviors that every organization can use to evaluate
and design their own data governance programs. What emerged was the
Data Governance Council Maturity Model. Based on insights and benchmarks
from their own practices, the Maturity Model helps define the scope of who
needs to be involved in governing and measuring the way businesses govern
data uses, such as sensitive customer information or financial details. It enables
organizations to:

Assesswheretheycurrentlyareintermsofgovernance,wheretheywanttobe
andthestepstheyneedtotaketogetthere.

Gainaninformed,objective,documentedassessmentofthematurityof
theirorganization.

Objectivelyidentify,uncover,highlightanddetailthestrengthsandweaknesses
oftheirdatamanagementcapabilities.

Gainknowledgeofexistingcapabilitiesandlevelsofunderstandingaround
theseelements.

Challengeinternalassumptionsandnormalizemethodsforcontinuously
examiningbusinessprocessesandITpractices.

Benchmarkfuturelevelsoforganizationalperformanceanddeveloparoadmap
togetthere.

Documentandcentralizereferenceinformationthatshouldresideacross
theorganizationtogovernmoreeffectively.
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Why data governance is critical in a Master Data Management environment
Two primarily rationales for pursuing a Master Data Management are reflected
in the value creation and data risk management categories of the Data
Governance Maturity Model. Value creation and business insights are much
more readily achieved in an MDM environment where the enterprise has a
consistent and complete view of the master data.
One example is in the Party domain of master datahaving a 360-degree view
of your customer can directly lead to upsell/cross-sell opportunities, evaluation
of the success of marketing campaigns, and deeper insight into customer
concerns. Decoupling master data from applications speeds the development of
new applications to exploit the master data. In the Product domain of master
data, accelerators such as New Product Introduction for WebSphere

Product
Center can significantly reduce the time to market for new products, creating
value by cutting cycle time and costs.
Data Risk Management and Compliance can become markedly easier in an
MDM environment. Having a single repository of master data makes that data
easier to protect, and easier to ensure that only the right people have access to
the right parts of the master data at the right time. Compliance is simplified
by tracing the provenance (original source) and history of changes. Accesses
of the master data are centralized when the data is also moved into the MDM
environment, and further enhanced when master data is fed into the well-
defined compliance business processes that are part of the IBM Industry Models.
For MDM, the focus from a business perspective are the higher level processes
around value creation and data risk and compliance management. However,
unless the other categories of data governance are addressed by MDM technology
and deployed properly, the benefits of value creation and enhanced data risk
and compliance management will be significantly reduced. One key concern is
Data Quality (Category 8 in the Maturity Model). To maintain ongoing quality,
the master data must be cleansed, removed of duplicates and subject to ongoing
quality checks beyond the initial loading of the master data repository. The MDM
environment must ensure accurate, complete information with documented
methods to measure, improve, and certify the quality and integrity of production,
test, and archival data.
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Category Description
Organizational Structures
& Awareness
Describes the level of mutual responsibility
between business and IT, and recognition of the
fiduciary responsibility to govern data at different
levels of management.
Stewardship
Stewardship is a quality control discipline
designed to ensure custodial care of data
for asset enhancement, risk mitigation,
and organizational control.
Policy
Policy is the written articulation of desired
organizational behavior.
Value Creation
The process by which data assets are qualified
and quantified to enable the business to maximize
the value created by data assets.
Data Risk Management
& Compliance
The methodology by which risks are identified,
qualified, quantified, avoided, accepted, mitigated,
or transferred out.
Information Security
& Privacy
Describes the policies, practices and controls
used by an organization to mitigate risk and
protect data assets.
Data Architecture
The architectural design of structured and
unstructured data systems and applications
that enable data availability and distribution to
appropriate users.
Data Quality Management
Methods to measure, improve, and certify
the quality and integrity of production, test,
and archival data.
Classification & Metadata
The methods and tools used to create common
semantic definitions for business and IT terms,
data models, types, and repositories. Metadata that
bridge human and computer understanding.
Information Lifecycle
Management
Management A systemic policy-based approach to
information collection, use, retention, and deletion.
Audit Information,
Logging & Reporting
The organizational processes for monitoring
and measuring the data value, risks, and efficacy
of governance.
2
3
1
4
5
6
7
8
9
10
11
IBM Data Governance Maturity
Model Categories
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IBM MDM technology is designed and implemented to provide strong support
for the enabling and baseline categories in the data governance Maturity
Model, ensuring that MDM deployments extract the full value out of the master
data. IBM WebSphere Customer Center and WebSphere Product Center,
combined with IBM Information Server, effectively addresses MDM for
customers. It is with Data Quality and the other enabling and underlying data
governance categories (stewardship, security and compliance, etc.) that overall
MDM is enabled for customers.
It is important to note that while MDM addresses all 11 categories, IBM MDM
technology enables overall master data governance. For the purposes of this
paper, the following four categories play a major role in providing the foundation
for business value in an MDM undertaking:
2. Data stewardship defines who is the real business owner of the information
based on the role it plays. Stewardship is not a monolithic role. It is the
degree to which an organization manages its information as business assets,
and implements executive and management roles, supportingstructures,
and processes to establish and sustain information accountabilities within
the business.
6. Security, privacy and compliance delineates the controls (policies,
processes and technologies) an organization has put in place to protect its
data from misuse (accidental or malicious) based on risk-driven data
classification and regulatory requirements.
This category also addresses Operational MDM (Party Domain) where access is
controlled at multiple levels. Based on groups of attributes and attribute values,
operational MDM defines the operations a user in a specific role can perform
(transactionalauthorization) and the data the user can access (entitlements/
rulesofvisibility). It can track data access for auditing and store and respect
privacy policies.
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This category also addresses Collaborative MDM (Hierarchical Domains)
which shares the same concerns of Operational MDM, but also specifies access
down the organizations hierarchy. Collaborative MDM also provides
authorization for collaborative workflows (who can create, initiate, participate,
etc.); and controls access to master data driven by role level.
In addition, this category also addresses privacy and compliance as it relates to
security by protecting sensitive information with privacy policies that comply
with regulatory requirements, particularly those that apply to customers,
suppliers and vendors.
7. Data architecture defines in a consistent way the information that
comprises master data by examining where the information resides, what the
relationships are between different pieces of it and any limitations. The
category addressed the real need to author this information when it is spread
throughout the enterprise.
8. Data quality underscores the degree to which an organization ensures that
its core information assets achieve and sustain an appropriate level of quality.
Quality means that information is well defined and fit for use, i.e., it is timely,
relevant, valid, accurate and consistent. As mentioned above, IBM MDM
technology helps ensure accurate, complete information allowing the ability
to conduct quality checks, standardize information, eliminate redundancies,
deal with matching entries, enable automated merging and kick-back to
appropriate data stewards.
10. Information Lifecycle Management is the discipline around the planning,
collection, creation, distribution, archiving of information, up to retirement
and deletion/destruction, based on business and regulatory requirements.
Data quality leads to
organizational maturity
Organizational maturity can be
assessed whether or not formal
information quality programs and
initiatives are in place, and the
degree to which information quality
is managed from an end-to-end
perspective vs. in silos. As maturity
increases, organizations establish
books of record for their information
assets; can show information lineage
or pedigree, and can demonstrate
measurable business results from
improved information quality.
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Levels of data governance maturity
Within each of the 11 categories, subcategories exist and are grouped into five
levels of maturity. The five levels of maturity include:

Level1Initial

Level2Managing

Level3Defined

Level4Quantitativelymanaged

Level5Optimizing
Through these multiple levels, organizations can not only assess where they
currently are, but can set concrete goals about where they want to be.
Using the Data Governance Maturity Model, organizations can identify and
evaluate gaps in their data governance practices and master data management
environment, while constantly driving value to:

Satisfyauditorsandregulators.

Createnewopportunitiesforgrowth.

AlignITwithbusiness.

Improveprocessmanagement.

Createamorenimbleandstrategicorganization.
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IBM Master Data Management solutions
IBM Master Data Management solutions manage master data domains
(customers, accounts, products) that have a significant impact on your most
important business processes. The following solutions offer proven technologies
and collaborative methods to manage, and build consistency and quality
control in master data and governance, helping your organization protect and
leverage critical data.
IBM WebSphere Customer Center
WebSphere Customer Center provides real-time, transactional customer data
integration (CDI). It helps organizations keep a single, complete and accurate
record of their customers across the enterprise.

Theintegratedcustomerdatayieldsasingleversionofcustomertruthto
allcustomer-facingchannelsandfront-andback-officesystemsthrough
multipleinterfaces.

Itisbasedonopenstandardsanddesignedtoimplementwithina
Service-OrientedArchitecture(SOA).Itincludesover480businessservicesto
manageandmaintaincustomerdata.

Itprovidestheinfrastructurefoundationtohelpcompaniesmovetoamore
customer-centricbusinessmodel,improvingcustomerserviceandcross/up-
sellexecution.

Additionalbenefitsincludecostsavingsfromtheabilitytorecognizeand
processduplicatecustomerrecords.
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IBM WebSphere Product Center
IBM WebSphere Product Center is a product information management solution
for building a consistent central repository. It links product, location, trading
partner, organization and terms of trade information, data typically scattered
throughout the enterprise.

Basedonopenstandards,WebSphereProductCenterprovidesamiddleware
foundationforcompaniestoaddressstrategicinitiativesandcomplywith
industrystandards.

DeliversrichproductinformationtoWebsitesande-commerceapplications,
printeddocumentsandmarketingcollateral,kiosksandmobiledevicesaswellas
directlytocustomersandtradingpartnersthroughvariousaccesspoints.

Helpscompaniesefficientlydeploytheirproductandserviceinformationacross
countlesscustomer,partnerandemployeetouchpoints.

Leverageskeyinformation,includingproductattributes,priceandlocation,
makingitmoreaccurateandvaluabletobusinessprocesses.

Linksproductinformationtoproduct-relatedtermsoftradeinformation,
suchaspricing,establishingvaluablelinkagesthatcanbeleveraged.

Synchronizesinformationinternallywithexistingenterprisesystemsand
externallywithbusinessandtradingpartners.
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Data
Governance
Category
WCC WPC
Data
Architecture
Predefined Model for Party/Role/
Organization and more
Based on Industry Standard
IFW Model
SOA interface for flexibility
and consumability
Extensible in content (data)
and behavior
Flexible, extensible model
around specs
Specs define shape and
content of data
Hierarchical attributes can be
inherited
Security and
Privacy
Integration with LDAP for
authentication and group
membership
Transactional authorization
Rules of visibility for data-driven
authorization
Stores and retrieves party privacy
preferences
Integration with LDAP for
authentication and group
management
Rich authorization model
supporting role, attribute,
workflow and hierarchy based
authorization
Comprehensive auditing
Data Quality
Automated validation of master data
Automated duplicate detection
Integration with external
standardization and validation
mechanisms like the IBM Information
Server Quality Stage product
Rich extensible rules engine for data
validation
Built-in validation of master data
based on data specifications
(specs)
Rich set of extension points for
custom validations
Data
Stewardship
Stewardship tools that support:
Party maintenance
Duplicate suspect processing
Hierarchy maintenance for
organizational parties
Grouping of master data
Role and hierarchy-based
stewardship of products
Groups of related attributes
Information
Lifecycle
Management
Master Data Lifecycle Event
Management plug points for
integration with external systems
Support for data lineage and data
decay tracking
Business process workflows
around the lifecycle of
product information
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IBM Information Server
IBM Information Server is a revolutionary new software platform from IBM
that helps organizations derive more value from the complex, heterogeneous
information spread across their systems.
IBM Information Server, working hand-in-hand with the patented Iterations 2
data integration methodology, supports integration of all data types and multiple
architectures, providing your organization with a solid basis for expediting
transactions, streamlining operations, supporting customers and making
sound decisions.

Offersacomprehensive,unifiedfoundationforenterpriseinformation
architectures,scalabletoanyvolumeandprocessingrequirement.

Providesauditabledataqualityasafoundationfortrustedinformationacross
theenterprise.

Deliversmetadata-drivenintegration,providingbreakthroughproductivity
andf lexibilityforintegratingandenrichinginformation.

Providesconsistent,reusableinformationservices alongwithapplication
servicesandprocessservices,anenterpriseessential.

Acceleratestime-to-valuewithproven,industry-alignedsolutionsandexpertise.

Broadestanddeepestconnectivitytoinformationacrossdiversesources:
structured,unstructured,mainframe,andapplications.

IntegratedwithIBMWebSphereCustomerCenterfordeliveringandstandardizing
masterdata,andfordetectingduplicatesinmasterdata.
IBM Global Services consultants can help you engage in a master data
management project for more effective master data governance by leveraging
the Maturity Model into your business strategy. Our data governance and
master data management technologies and services are designed to help you
understand your organizations data so you can transform how your data is
governed, valued, protected and leveraged.
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Summary
Data governance is a reflection of your organizations behavior. To govern
change, your business should be able to change its organizational controls to
meet new demands. IBM solutions and Global Services, along with the IBM
Data Governance Council and Maturity Model can help you measure your data
governance maturity to take the first step in determining where you are today
and where you want to go tomorrow.
For more information
To learn how the IBM Data Governance solutions and Maturity Model can help
you enter or advance in a data governance and master data management
environment, visit: please ibm.com/software/data/ips/products/masterdata/.
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11-07
All Rights Reserved
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