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Master Data Management and Data Governance
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Master Data Management and Data Governance
by Larry Dubov, Alex Berson
Master Data Management and Data Governance
Cover Page
Master Data Management and Data Governance
Copyright Page
Contents
Forewords
Acknowledgments
Introduction
Part I Introduction to Master Data Management
1 Overview of Master Data Management
Master Data Management (MDM)
Defining Master Data
Why Master Data Management Now?
Challenges of Creating and Managing Master Data
Defining Master Data Management
Master Data Management for Customer Domain:Customer Data Integration (CDI)
Evolution of MDM and CDI
Other MDM Variants: Products, Organizations, Hierarchies
Challenges of MDM Implementation for Product Domain
Introduction to MDM Classification Dimensions
Key Benefits of Master Data Management
References
2 MDM: Overview of Market Drivers and Key Challenges
Market Growth and Adoption of MDM
MDM Growth and Customer Centricity
Business and Operational Drivers of MDM
Improving Customer Experience
Improving Customer Retention and Reducing Attrition Rates
Growing Revenue by Leveraging Customer Relationships
Improving Customer Service Time:Just-in-Time Information Availability
Improving Marketing Effectiveness
Reducing Administrative Process Costs and Inefficiencies
Reducing Information Technology Maintenance Costs
MDM Challenges
Senior Management Commitment and Value Proposition
Customer Centricity and a 360-Degree View of a Customer
Challenges of Selling MDM Inside the Enterprise
Socializing MDM as a Multidimensional Challenge
Technical Challenges of MDM
Implementation Costs and Time-to-Market Concerns
Data Quality, Data Synchronization, and Integration Challenges
Data Visibility, Security, and Regulatory Compliance
Challenges of Global MDM Implementations
References
3 MDM Applications by Industry
Industry Views of MDM
Commercial Sector
Financial Services, Banking, and Insurance
Telecommunications Industry
Healthcare Services Ecosystem
Hospitality and Gaming Industry
Manufacturing and Software
Pharmaceutical Industry
Shipping and Logistics
Airlines
Retail Sales
Public Sector
Social Services
Law Enforcement, Border Protection, and Intelligence Agencies
References
Part II Architectural Considerations
4 MDM Architecture Classifications, Concepts, Principles, and Components
Architectural Definition of Master Data Management
Evolution of Master Data Management Architecture
MDM Architectural Philosophy and Key Architecture Principles
Enterprise Architecture Framework: A Brief Introduction
MDM Architecture Viewpoints
Services Architecture View
Architecture Viewpoints of Various MDM Classification Dimensions
Reference Architecture Viewpoint
References
5 Data Management Concerns of MDM Architecture: Entities, Hierarchies, and Metadata
Data Strategy
Guiding Principles of Information Architecture
Data Governance
Data Stewardship and Ownership
Data Quality
Data Quality Tools and Technologies
Managing Data in the Data Hub
Data Zone Architecture Approach
Operational and Analytical MDM and Data Zones
Loading Data into the Data Hub
Data Synchronization
Overview of Business Rules Engines
Data Delivery and Metadata Concerns
Enterprise Information Integration and Integrated Data Views
References
6 MDM Services for Entity and Relationships Resolution and Hierarchy Management
Architecting an MDM System for Entity Resolution
Recognizing Individuals, Groups, and Relationships
MDM and Party Data Model
Entity Groupings and Hierarchies
Challenge of Product Identification, Recognition, and Linking
MDM Architecture for Entity Resolution
Key Services and Capabilities for Entity Resolution
Entity Resolution and MDM Reference Architecture
Entity Recognition, Matching, and Generation of Unique Identifiers
Matching and Linking Services and Techniques
Aggregating Entity Information
Data Hub Keys and Life-Cycle Management Services
Key Management and Key Generation Service
Record Locator Services
References
7 Master Data Modeling
Importance of Data Modeling
Predominant Data Modeling Styles
MDM Data Modeling Requirements
Data Modeling Styles and Their Support for Multidomain MDM
Approach 1: The “Right” Data Model
Approach 2: Metadata Model
Approach 3: Abstract MDM-Star Model
References
Part III Data Security, Privacy, and Regulatory Compliance
8 Overview of Risk Management for Master Data
Risk Taxonomy
Regulatory Compliance Landscape
Integrated Risk Management: Benefits and Challenges
Regulatory Compliance Requirements and Their Impact on MDM IT Infrastructure
The Sarbanes-Oxley Act
Gramm-Leach-Bliley Act Data Protection Provisions
Other Regulatory/Compliance Requirements
Key Information Security Risks and Regulatory Concerns
Identity Theft
GLBA, FCRA, Privacy, and Opt-Out
Key Technical Implications of Data Security and Privacy Regulations on MDM Architecture
References
9 Introduction to Information Security and Identity Management
Traditional and Emerging Concerns of Information Security
What Do We Need to Secure?
End-to-End Security Framework
Traditional Security Requirements
Emerging Security Requirements
Overview of Security Technologies
Confidentiality and Integrity
Network and Perimeter Security Technologies
Secure HTTP Protocols/SSL/TLS/WTLS
Application, Data, and User Security
Integrating Authentication and Authorization
SSO Technologies
Web Services Security Concerns
Authentication
Data Integrity and Confidentiality
Attacks
WS-Security Standard
Putting It All Together
References
10 Protecting Content for Secure Master Data Management
Data Security Evolution
Emerging Information Security Threats
Regulatory Drivers for Data Protection
Risks of Data Compromise
Technical Implications of Data Security Regulations
Data Security Overview
Layered Security Framework
Data-in-Transit Security Considerations
Data-at-Rest Protection
Enterprise Rights Management
ERM Processes and MDM Technical Requirements
ERM Use Case Examples
References
11 Enterprise Security and Data Visibility in Master Data Management Environments
Access Control Basics
Groups and Roles
Roles-Based Access Control (RBAC)
Policies and Entitlements
Entitlements Taxonomy
Transactional Entitlements
Entitlements and Visibility
Customer Data Integration Visibility Scenario
Policies, Entitlements, and Standards
XACML
Integrating MDM Solutions with Enterprise Information Security
Overview of Key Architecture Components for Policy Decision and Enforcement
Integrated Conceptual Security and Visibility Architecture
References
Part IV Implementing and Governing Master Data Management
12 Building a Business Case and Roadmap for MDM
Importance of the MDM Business Case and the Current State of the Problem
MDM Sponsorship Scenarios and Their Challenges
Business Strategy–Driven MDM
IT Strategy–Driven MDM
What MDM Stakeholders Want to Know
Business Processes and MDM Drivers
Benefits and Their Estimation
Traditional Methods for Estimation of Business Benefits
Economic Value of Information as MDM Business Case Estimation Technique
Importance of the MDM Roadmap
Basic MDM Costs
MDM Roadmap Views
Conclusion
References
13 Project Initiation
Implementation Begins
Addressing the Complexity of MDM Projects
Scope Definition
Business Processes
Lines of Business and Functions
Customer Touch Points, Product Types, and Account Types
Levels of Aggregation and Relationship Types
Entities and Attributes
Systems and Applications in Scope
MDM Data Hub Solution Architecture
Data Hub Architecture Styles
Phased Implementation of Customer Data Hub
Artifacts That Should Be Produced in the Project Initiation Phase
Project Work Streams
References
14 Entity Resolution: Identification, Matching, Aggregation, and Holistic View of the Master Objects
Holistic Entity View and a 360-Degree View of a Customer: Frequently Used Terms and Definitions
Reasons for False Positives in Party Matching
Reasons for False Negatives in Party Matching
Attributes and Attribute Categories Commonly Used for Matching and Identification
Identity Attributes
Discriminating Attributes
Record Qualification Attributes
Customer Identification, Matching Process, and Models
Minimum Data Requirements
Matching Modes
Defining Matching Rules for Customer Records
Effect of Chaining
Break Groups and Performance Considerations
Similarity Libraries and Fuzzy Logic for Attribute Comparisons
Summary of Data-Matching Requirements and Solutions
References
15 Beyond Party Match: Merge, Split, Party Groups, and Relationships
Merge and Split
Merge
Split
Relationships and Groups
Direct Business Relationships with an Individual
Households and Groups
Relationship Challenges of Institutional Customers and Contacts
Relationship Challenges of Institutional Customers
Additional Considerations for Customer Identifiers
References
16 Data Synchronization, MDM System Testing, and Other Implementation Concerns
Goals of Data Synchronization
Technology Approach to Use Case Realization
MDM Data Hub with Multiple Points of Entry for Entity Information
Considerations for the Transaction Hub Master Model
Batch Processing
Synchronization and Considerations for Exceptions Processing
Testing Considerations
Testing of MDM Data and Services
Testing MDM Services
Creation and Protection of Test Data
Considerations for the MDM Application and Presentation Layers
Data Hub Management, Configuration, and Administration Applications
Reporting
Additional Technical and Operational Concerns
Environment and Infrastructure Considerations
Deployment
Considerations for the MDM Data Hub Data Model and Services
References
17 Master Data Governance
Basics of Data Governance
Introduction to and History of Data Governance
Definitions of Data Governance
Data Governance Frameworks, Focus Areas, and Capability Maturity Model
Data Governance for Master Data Management
Data Quality Management
Data Quality Processes
Master Data Governance Policies for Data Quality
Master Data Governance Metrics for Information Quality
The Existing Approaches to Quantifying Data Quality
Information Theory Approach to Data Quality for MDM
The Use of Matching Algorithm Metrics
How to Make Data Governance More Focused and Efficient
Agile Data Governance
Overlaps with Business Requirements Generated by Departments and Business Functions
Overlaps with the Enterprise IT
Data Governance and Data Governance Frameworks
Processes and Metrics
Data Governance Software
Data Governance and Edward Deming Principles
Conclusion
References
Part V Master Data Management: Markets, Trends, and Directions
18 MDM Vendors and Products Landscape
MDM Market Consolidation
Major MDM Vendors
IBM
Oracle
Informatica
SAP
SAS DataFlux
Tibco
Dun & Bradstreet Purisma
Acxiom
References
19 Where Do We Go from Here?
Review of the Key Points Covered in the Preceding Chapters
A Brief Summary of Lessons Learned
Main Reasons MDM Projects Fail
Review of the Key Reasons for MDM Project Failure
MDM Guiding Principles
Master Data Management: Trends and Directions
MDM Market Trends
MDM Technical Capabilities Trends
References
Part VI Appendixes
A List of Acronyms
B Glossary
Index
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Master Data Management and Data Governance
Second Edition
Alex Berson
Larry Dubov
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