This is Part 3 of our mini series 'Master Data Management — What It Is and Why You Need It'
The ultimate goal of MDM is to have an SSOT so that your data is in one place, and a golden record so that each time you access it, you know that's the latest and most accurate version of your organization's data.
There are many ways to achieve an SSOT and a golden record, but we've found the following to be the best approach.
Step One — Scope and Proof of Concept
As a first step, you need to understand all the data requirements related to the scope of your project. You might want to start with a small Proof of Concept (POC) to demonstrate its feasibility.
Step Two — Data Analysis
Next, you will need to undertake extensive data analysis in order to map the relevant master data from all sources. This is important to understand the quality of your data and determine how to unify it for your goals.
Step Three — Technical Design
The next step is to figure out the design of your MDM solution. This includes figuring out the technical design and the Extract-Load-Transform (ELT) process, which is all about extracting the data from multiple sources and loading it into a single source, usually a data warehouse.
Before getting into MDM implementation, you have to establish how your business hopes to use your data. Do you just need clean, coordinated data for reporting (analytical MDM), or do you want validated data to help inform business processes in real time (operational MDM)? While most businesses want to work toward a hybrid MDM approach, analytical MDM requires a significantly less complex implementation of its architecture than operational MDM.
Step Four — Implementation
Now it's time for implementation, which is where your SSOT is created and made available to your organization. You now have an effective Master Data Management system. Now of course that is all easier said than done, and there is a list of key technical factors to consider.
Key Technical Considerations
The following technical considerations are simplified. If you would like to receive a complimentary copy of specific implementation techniques that we have developed based on our research, grab it here:
Download Implementation Techniques
We hope this has given you a better understanding of MDM, and why you should care about it. Master data management is critical to the success of any data-driven organization and its ability to make accurate decisions based on data.
If you have any questions or would like to know more about MDM, please do not hesitate to contact us, or receive a complimentary copy of our specific MDM implementation techniques — we would be more than happy to help.