What is master data and what is the master data domain? What does it cover? Where is the business value in MDM? Is MDM a data warehousing function? How can business users be sold on the MDM investment?

While the industry dukes it out over answering these questions (you can’t get two experts or vendors to give you the same answer to any of those questions), I thought I’d share my thoughts. I admit, that my MDM experience to this point is minimal, having only been involved in one official MDM project (and only at the planning and data modeling level). But nevertheless, I do have some of my own ideas.

The bottom line, though, is that MDM is important and should not be overlooked when planning for new business intelligence or enterprise integration initiatives.

What MDM is

Master Data Management, an information activity, is the process of ensuring that an organization’s data (including its metadata) is consistent, reliable, accessible, distinctive and well defined. This master data, once it meets these requirements, can then be used by the enterprise as a system of record for key business entities and attributes.

There are different types of MDM: Analytical (A-MDM), Operational (O-MDM), and Enterprise (E-MDM). I see it like this: A-MDM is related to data warehousing and would therefore be implemented solely as a compliment to (or a reaction from) a data warehouse/business intelligence project (I don’t agree that simply having conformed dimensions constitutes “having” A-MDM, though). O-MDM is about collecting, managing, and redistributing master data to be used by operational systems (which is largely an effort in synchronization). E-MDM, is the Holy Grail, and would be a combination of both O-MDM and A-MDM. E-MDM reminds me of Enterprise Data Modeling (EDM), in that you truly need a 360-degree view of the business to make it work (READ: get business and IT together for tea).

Data governance and stewardship, as well as data quality management, data integration, and service-oriented architecture (SOA) are all functions and processes related in some way to Master Data.

What MDM is Not

MDM is not a technology. It is a business function. You are either managing master data, or you are not. It is unlikely that any single approach or software technology will solve the Master Data problem. It drives me nuts to hear about how vendors sell MDM (and BI, for that matter), but I digress…

The work of developing and maintaining master data is not a data warehousing function. To restate: Data warehouses are not developed to create master data (even A-MDM). Some will disagree with me on this. In my opinion/observation, MDM is a separate, highly important activity that works in conjunction with the data warehouse and all other applications and processes that exist in the enterprise.

Other Thoughts

I think that a common mistake made with regard to planning for, and implementing MDM, is that there is not enough emphasis on the data quality gains that will be realized. In addition, the data integration process for data warehousing projects will be infinitely easier, as the complex work of conforming dimensions and attributes will already be complete (at least in definition, with plenty of good metadata to use as a reference).

Master data, in many ways, provides a new way of looking at data as an asset with tangible, strategic value.

I’ll post more on this topic as time rolls on. As always, thoughts, questions, and criticisms welcome!