World of Computer Science and Information Technology Journal (WCSIT)

ISSN: 2221-0741
Vol. 1, No. 5, 213-216, 2011

Practical Approach for Master Data Management

Chandra Sekhar Bhagi
Department of Commerce and Management
Andhra University, Vizag, India
[email protected]
Abstract Any organization typically has data on Customers, Financials (Chart of accounts, profits, Cost), Products, Business
Partners (Suppliers, Distributors), Employees, Locations, Sales Contacts, Physical assets, Claims or Policies (Insurance). These data
items or business entities are referred as Master Data. The process and technology involved in acquiring Master Data from multiple
domains across enterprise and thereby maintaining a single consistent view is Master Data Management (MDM). MDM is getting
popularity in Health & Life sciences, Medical Device Manufacturing, Financial Services, Insurance, Manufacturing & Technology,
Retail, Consumer Packaged Goods, Telecommunications, Information services & Media, Aerospace, Defense and Government.
The current article illustrates the technical solution to implement enterprise Master Data Management in domain specific
companies.
Keywords- Master Data Management; Enterprise Master Data Management; MDM Technical Architecture; MCI; SOA.

that the customer already has a loan account, the marketing unit
approach for a new loan offer.
I.

INTRODUCTION
II.

The business entities that are commonly considered under

MDM are Customer (Customer Data Integration - CDI),
Product (Product Information Management - PIM), Employee
(Employee Information Management - EIM), Vendor (Vendor
Information Management - VIM). This article briefs the need
and approach for building Customer Data Integration in large
Enterprise FS/banking industries based on Gartner
recommendations on MCI/SOA and DW principles. Similar
approach and technology can be applied to build PIM, EIM,
VIM etc.

SINGLE VIEW OF CUSTOMER

The common and unique entity among Commercial banks,

Retail banks, Insurance companies, and Brokerage firms is
Customer. Customer base always dictates the strength of the
firm. Safeguarding (providing more services and protecting
from fraud) customer both from internal and external
perspective is the key essence of todays market.
Keeping in view the complexity of all relationships with
customer base and changes to customer information achieving
a single customer view is vital. Banks often hold multiple
records for one same customer scattered across multiple
business units or divisions. This can be due to the multiple
touch points that the customers face when dealing with the
bank, by way of collecting data online(web), face to
face(branch), over the phone(call center) Etc.,. In reality all the
three touch points are different business units under the bank
umbrella. The complexity increases when customer has
multiple accounts (Checking, Loan, Credit Card, Insurance,
and Savings). With a single customer view, Bank can deliver a
seamless, real-time, cross-organizational (Business Unit)
transaction flow so that they can tailor special premium service
packages to their best customers, as well as unify policies and
determine which services a given customer receives within the
enterprise. Packaged services can be provided to prospective
customers. For example, two different financial firms providing
single face to customer with new premium services. Unless and
otherwise a single true customer data is maintained by the firms
this cant be achieved.

Customer information often changes over time. The factors

that influence information changes are customer credentials,
contacts details, customer demographic and geographic details.
CDI is the combination of technology, processes and
services need to create and maintain an accurate, timely and
complete view of a customer across multiple channels, business
lines and enterprises. Gartner

In an enterprise, customer information is often spread

across internal or external applications, databases,
spreadsheets, paper Etc. Further, different business units have
different concepts and definitions for the same business
entity(customer). A popular example for lack of integration
between different business units within an enterprise is a
scenario wherein a customer takes loan, unaware of the fact

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Service Oriented Architecture (SOA)
A single customer view provide a better understanding of
each individual customer and their relationship with the bank,
which helps reducing costs, customer analytics and business
intelligence to reduce the risk of fraud, dispute resolution, and
increase revenue and profitability in customer-centric Banks.

III.

SOA involves building of Services or Service Components

specific to business channels. Based on business needs and the
dynamism of the customer data, data integration can be
structured either by using batch processing or using real-time
messaging thru Enterprise Service Bus (ESB). Every business
unit within an enterprise is distinct. And Services are usually
built to address a particular functionality of a business unit.
Services are loosely coupled and are independent of hardware.
The SOA advantages are changes to one services will not affect
other Business units and also the CDI services can be leveraged
by other applications. Gartner recommends SOA based
approach for MCI processing.

GOLDEN RECORD

The term Golden record refers to the single truth or

single customer view which is an authoritative customer
record that has usually been generated by extracting, cleansing
the data from multiple channels of enterprise.

Extraction, Transformation & Loading Process (ETL)

IV.

SOLUTION ARCHITECTURE TO BUILD

ENTERPRISE MDM

ETL is a standard Data warehousing technique to extract,

profile, cleanse & integrate the data from multiple sources.

Enterprise MDM typically involve three layers namely

Multi Channel Integration (MCI), Enterprise MDM Hub
(MDM) and Enterprise Data Warehouse(EDW).

Data Extraction: Involves data acquisition from multiple

sources/channels within the enterprise and staging in a single
repository. Extraction can be either real time or trickle or
nightly batch process.

A. Multi-Channel Integration (MCI)

MCI is the information provider to MDM and EDW is the
consumer. Multi-Channel Integration involves extraction of
various master data namely Customer, Product, Employee,
Vendor from multiple operational data sources.

Data Profiling: Detailed studies of source data (Data

Profiling) need to be performed to understand the data format,
characteristics, pattern, usability and standard unit of
measurement and granularity.
Data Cleansing: Cleanse, Standardize and augment the
data, removing duplicates, supply missing data, and handle data
quality issues per business needs.
Data Integration: Data will be transformed and integrated to
produce the true view of customer.
B. Enterprise MDM Hub
MDM hub is the central application that captures, integrates
and distributes Master data. The customer data extracted from
multiple operational sources thru MCI layers are stored in CDI
repository (a single central location).The primary goal is to
maintain golden records. The process involved in building
golden records are Customer Identification , Rule based
customer record matching, Identifying partial match/Matching
process, De duping and Merge/ Un merge. CDI repository
comprises of robust customer data model, designed to
accommodate Customer, Customer Relationship (External
customer, employee), Customer Household and Household
details, customer demographic, psychographic and geographic
details, Customer contacts (physical address, contact , Postal
address, bill-to-address, ship-to-address, Electronic address
(Personal, Office and Corporate email ID), Internal Customer
Accounts Etc.

Figure 1: Enterprise MDM Architecture

MCI layer serves as integration gateway to communicate
between multiple operational systems that produce master data
and various consumers seeking refined or unique golden
customer record. MCI can be implemented either by Data
Warehousing or SOA technologies.

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V.
ETL: Robust ETL strategy needs to be built to extract the
customer data from CDI data repository to multiple consuming
systems. There are multiple ETL tools available to enable this
feature.

CONCLUSION

An effective enterprise MDM solution enables the

organization to understand its customer, product, services,
employee etc better and facilitates intelligent business
decisions. MDM is a continual process. Organizations should
strategize the MDM roadmap and implement in phases.
Organization should analyze the business needs and choose the
appropriate Solution, Tools and Technology.

Data Validation: Customer information will be integrated

with external third-party customer data set (e.g., Dun &
Bradstreet, Experian) and produce the integrated customer
database with various data access views.

REFERENCES
Data Governance: Data governance ensures that the
controls, policy, process and audit mechanisms are in place for
master data elements. It provides a framework to create a
methodical approach toward managing the data across the
enterprise.

[1]
http://tdwi.org/Articles/2009/08/01/
Introduction-toOperationa l- Data- Integration.aspx?Page=6 Philip Russom
TDWI MDM Portal
[2] http://www.information-management.com/ specialreports/
20070419/1081667-1.html
[3]http://www.google.com/images?um=1&hl=
en&biw=1003&bih=
587&tbs=isch%3A1&
sa=1
&q=MDM+CDI+ETL&btnG=Search& aq=f&aqi=&aql=&oq=
[4]www.gartner.com/it/.../master_data_management_
brochure.pdf - Gartner Master Data Management .
[5]www.gartner.com/it/content/1217700/.../
mdm_summit_agenda. pdf - Gartner Master Data Management
[6]www.gartner.com/it/content/851600/.../
mdm_agenda_at_a_glance.pdf [7] searchdatamanagement.techtarget.com/ - The Business
Case for CDI/MDM in Healthcare
[8] www.cigna.com/general/about/investor/release/4q04release
.pdf ... Joanne Galimi, September 3, 2004,
[9] www.gartner.com/AnalystBiography? ...
[10]www.tcdii.com/PDF/CDI_Alert_V1__12_
The_Business_Case_for_CDIMDM_in_Healthcare_Payers.pdf
[11]www-01.ibm.com/software/data/master-data.../library.html
SAP
Community
Network
Forums:
SAP
http://www.stratature.com/portals/ 0/MSMDMRoadmap.pdf ...
1) Gartner's Magic Quadrant for CDI (jun2007) ...
[12] forums.sdn.sap.com/thread.jspa?threadID=617390 - Get
more discussion results
[13] www.siperian.com/ - Magic Quadrant for Master Data
Management of Customer DataFile
[14] static.businessreviewonline.com/.../Gartner-MQ-MDMfor-Customer-Data- 2009.pdf - CDI-MDM Summit [15]
www.sourcemediaconferences.com/CDIFL07/pdf/CDIMDMSummit- Spring2007.pdf
[16]http://www.information-management.com/ specialreports/
20070419/1081667-1.html
[17] www.ibm.com
[18] www.oracle.com/master-data.../mdm-foundation-for-soawhite-paper.pdf
[19]
www.oracle.com/us/products/applications/masterdata.../018877.pdfOracle's Fusion of MDM and SOA (Oracle
Master Data Management)Sep 24, 2010 ...
[20]blogs.oracle.com/mdm/2010/.../
oracles_fusion_of_mdm_and_soa.html -

Meta Data: Metadata is data about data. For every column

of every table in the CDI hub there must be accurate data about
where the value came from, what transformations were
performed to get it into the hub data model format, what
business rules were applied to it, and which applications
receive updates to it. This is especially important in CDI
because the business rules often determine which of several
alternate values is used to populate a data element.
Regulatory Feeds: Downstream systems like Planning,
Budgeting, Finance which need customer data for processing.
C. Enterprise Data Warehouse (EDW)
Depending upon the size of the organization, the consumers
of master data vary. In a typical DW/BI scenario, the golden
records from the MDM repository are extracted into Operation
Data Store (ODS) more often called as enterprise warehouse
and thereafter into Data Marts. Data Marts comprises of
Dimensions, Facts & Confirmed Dimension tables. Customer
Confirmed Dimension maintains the golden records.
Tools & Expertise:
Organizations should prepare to acquire the following
technologies internally or thru vendors for implementing
MDM.
Service Oriented Architecture (SOA)
Extraction Transformation & Loading (ETL)
MDM/CDI
Data Modeling

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[21] www.cioupdate.com/.../SOA-and-MDM-A-Match-Madein-Heaven.htm >SOA needs MDM to help with the evolution
of the information infrastructure. See The Role of Master Data
Management
[22] blogs.gartner.com/.../when-is-soa-doa-when-its-withoutmdm/ -MDM and SOA, a Strong Partnership Hub Designs
[23]blog.hubdesigns.com/.../mdm-and-soa-a-strongpartnership/ - Advancing SOA and MDM in Tandem
Informatica PerspectivesMar 17, 2009
[24] blogs.informatica.com/...php/.../advancing-soa-and-mdmin-tandem/ - Master Data Management Meets SOA | SOA
World Magazine Apr 29, 2007 ... MDM, however, typically
doesn't embrace SOA's "loose coupling" principle. Extending
MDM with loose coupling allows support for SOA's.
[25] soa.sys-con.com/node/366853 - How To Make MDM And
SOA Better Together - Forrester Research Apr 24, 2008 ...
Master data management (MDM) initiatives seek to deliver a
single, trusted version of enterprise data, while service-oriented
architecture ...
[26]www.forrester.com/Research/Document/
0,7211,45734,00.htmlSOA and MDM: Two Integration
Solutions That Go Great Together ...Mar 18, 2008.

[27]www.itbusinessedge.com/.../soa-and-mdm-two-integrationsolutions-that-go-great-together/?.
AUTHORS PROFILE

Chandra Sekhar Bhagi is an enterprise architect for a

Financial Services company. Mr. Bhagi has about 18+ years of
IT experience handling large scale projects in Enterprise Data
warehousing, Data Mining and Distributed computing.
Currently Mr. Bhagi is persuing PhD from Andhra University.

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