Master Data Management and Business Benefits –
As discussed in earlier article (Part I), master data exists in operational systems with data quality issues. Addressing these data quality issues and creating a single version of truth for master data is vital for staying ahead of competitors. The whole purpose of Master Data Management (MDM) stream is to address these data quality issues and establish a single authoritative version of the truth for Master data which then can be syndicated with interested Enterprise applications. This single authoritative version of truth is also referred as “Golden Copy”.
MDM supports this objective of managing master data through activities such as data consolidation, matching, de-duplication, enrichment, verification and standardization. As a part of data governance discipline, data stewards need to ensure that master data entities and respective data elements and attributes are comprehensive and defined in an unambiguous way in MDM data store.
Taking the scenario of Customer MDM hub in the Bank, various operational systems feed the customer data to MDM periodically; through consolidation-cleansing-enrichment process MDM produces single authoritative version of truth about customers; these Golden copies of customer data are then shared back with sources as well as other interested applications such as CRM applications (call center, sales-marketing), Data Warehouse and Reporting applications.
Some of the Golden copies created may include, but not limited to –
- Customer Profile – The generalized view on customer covering all data categories – demographics (age, gender, race etc.), socioeconomic (income, occupation, education attainment etc.), geography (geography of residence/work) and so on.
- Customer Relationship Profile – The 360 degree view on customer providing details on all the relationship customer has with the Bank (for example, savings account, credit card and personal loan relations).
Creation of Golden copies matters a lot; we have seen the example of unmanaged master data and its impact. We will just re-look at previous examples and see how master data management discipline helps to serve customer better as well as helps Organization to improve revenue opportunities and adherence to compliance.
Consistent and corrected master data across operational system
Example: example of corrected customer data
- Customer name, address and other profile details are verified, corrected and shared with operational systems – consistent user experience across channels, right communication to right recipient
- Satisfied customer
- Adherence to compliance
Consolidation of fragmented data
Example: example of consolidated customer data
- Complete customer profile related attributes are consolidated including complete details on customer socioeconomic parameters and made available through MDM data store – Sales-Marketing team is able to target market-timed product meant for high net-worth individuals.
- Increased revenue opportunities
360 degree view of Customer
Example: example of 360 degree view of customer
- Complete 360 degree view on customer’s relationship with Organization is derived from data available in various operational systems and then shared with CRM applications. This results in informed calls by Bank’s sales team to customer targeting new products and promoting offers on existing product for which he/she already has relationship with the Bank. For example, contact center/sales team making “Fixed deposit” offer to customer by having view on customer’s savings account. Another example could be – no call for selling personal loan product if customer has already taken personal loan from the Bank.
- Enhanced customer experience
- Increased Cross-sell/Upsell opportunities
Success of Organization depends on how well they manage master data entities. Empowering enterprise applications (CRM channels-operational-analytical-Reporting applications) with high quality data can put Organization ahead of competitors and that is where MDM matters.
The diagram below shows the role of MDM in creating single authoritative version of truth
Role of SOA
Shorter time to market, prompt customer services are some of the key driving factors demanding quality data to be quickly accessible on real-time basis to various Enterprise applications. Use of SOA and underlying ESB platform can help in achieving this objective. ESB platform with its ability to support various real-time integration patterns – (Web Services, Publish-Subscribe) can connect MDM to Enterprise applications seamlessly.
MDM and SOA go hand-in-hand. Without MDM strategy, SOA is of no use. Data Service enabled through SOA layer without MDM strategy in place end up provisioning poor quality reusable data services to Enterprise operational and analytical applications. It leads to a scenario where Enterprise applications directly integrate with each other for specific master data need through ESB layer. This is an anti-pattern.
Same is the case with MDM without SOA strategy. Golden copies lying within MDM data store is of no use unless it is shared consistently across Enterprise applications in a timely manner. Once Golden Copies of data are available, ESB can be used to share these Golden Copies across consumers as reusable Data Services.
The diagram below shows how SOA and customer MDM hub can empower Enterprise applications with Customer Golden Copies.
It is also important to note that in few use cases, the master data can be shared with some Enterprise applications in batch mode or periodically. Most of the commercial MDM vendors support both the options for information sharing – information sharing in real-time (Web Services, Pub-Sub) as well in batch mode (file handoff, ETL).
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