Master Data Management

Master Data Management

An Oracle White Paper

June 2010

Master Data Management

Introduction ....................................................................................................... 1

Overview............................................................................................................. 2

Enterprise data ................................................................................................... 4

Transactional Data ........................................................................................ 4

Operational MDM .................................................................................... 5

Analytical Data .............................................................................................. 5

Analytical MDM ........................................................................................ 5

Master Data ................................................................................................... 5

Enterprise MDM ....................................................................................... 6

Information Architecture ................................................................................. 6

Operational Applications ............................................................................. 6

Enterprise Application Integration (EAI) ............................................. 7

Service Oriented Architecture (SOA) .................................................... 7

The Data Quality Problem....................................................................... 7

Analytical Systems......................................................................................... 8

Enterprise Data Warehousing (EDW) and Data Marts ...................... 8

Extraction, Transformation, and Loading (ETL)................................. 9

Business Intelligence (BI)......................................................................... 9

The Data Quality Problem....................................................................... 9

Ideal Information Architecture ................................................................. 10

Oracle Information Architecture .............................................................. 11

Master Data Management Processes ............................................................ 13

Profile ........................................................................................................... 14

Consolidate .................................................................................................. 15

Govern ......................................................................................................... 15

Share ............................................................................................................. 15

Leverage ....................................................................................................... 16

Oracle MDM High Level Architecture ........................................................ 16

MDM Platform Layer ................................................................................ 17

Application Integration Services ........................................................... 17

Enterprise Service Bus ...................................................................... 17

Business Process Orchestration Services ....................................... 17

Business Rules .................................................................................... 18

Event-Driven Services ...................................................................... 19

Identity Management......................................................................... 19

Web Services Management............................................................... 19

Analytic Services ...................................................................................... 20

Enterprise Performance Management ............................................ 20

Data Warehousing ............................................................................. 20

Business Intelligence ......................................................................... 21

Master Data Management

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Publishing Services ............................................................................ 21

Data Migration Services .................................................................... 21

High Availability and Scalability ............................................................ 22

Real Application Clusters ................................................................. 22

Mixed Workloads ............................................................................... 22

Exadata ................................................................................................ 22

Application Integration Architecture ................................................... 23

AIA Layers .......................................................................................... 23

Common Object Methodology ....................................................... 24

MDM Foundation Packs .................................................................. 24

MDM Process Integration Packs .................................................... 24

MDM Aware Applications..................................................................... 25

Composite Application Development ................................................. 25

Oracle Data Quality Services ................................................................. 25

Oracle Customer Data Quality Servers .......................................... 27

Product Data Quality ........................................................................ 29

End-To-End Data Quality ............................................................... 31

Application Development Environment ............................................. 32

MDM Applications Layer .............................................................................. 32

MDM Pillars ................................................................................................ 32

Oracle Customer Hub ................................................................................ 33

Customer Data Model ............................................................................ 34

Consolidate............................................................................................... 35

Cleanse ...................................................................................................... 36

Govern ...................................................................................................... 36

Share .......................................................................................................... 38

Business Benefits ..................................................................................... 39

Product Hub ................................................................................................ 39

Import Workbench ................................................................................. 40

Catalog Administration .......................................................................... 41

New Product Introduction .................................................................... 41

Product Data Synchronization .............................................................. 41

Oracle Site Hub ........................................................................................... 42

Golden Record for Site Data................................................................. 43

Application Integration .......................................................................... 43

Effective Site Analysis and Google Integration .................................. 43

Oracle Supplier Hub................................................................................... 45

Consolidate............................................................................................... 45

Cleanse ...................................................................................................... 46

Govern ...................................................................................................... 46

Share .......................................................................................................... 46

Supplier Lifecycle Management ............................................................ 46

Business Benefits ..................................................................................... 46

Oracle Hyperion Data Relationship Management ................................. 47

Automated Attribute Management ....................................................... 48

Best-of-Breed Hierarchy Management ................................................ 49

Integration with Operational and Workflow Systems ....................... 49

Import, Blend, and Export to Synchronize Master Data .................. 49

Versioning and Modeling Capabilities to Improve Analysis............. 50

Master Data Management

iii

MDM Data Governance and Industries Layer ........................................... 50

MDM Industry Verticalization .............................................................. 50

Higher Education Constituent Hub................................................ 50

Product Hub for Retail ..................................................................... 51

Product Hub for Communications ................................................. 51

Data Governance ........................................................................................ 52

Data Watch and Repair for MDM ........................................................ 53

MDM Implementation Best Practices ..................................................... 54

Build vs Buy ................................................................................................. 55

Conclusion ........................................................................................................ 56

Master Data Management

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Master Data Management

INTRODUCTION

Many organizations are not realizing the

anticipated ROI in their existing

applications.

Oracle MDM helps organizations realize

the return on existing and new application

investments.

Fragmented inconsistent Product data slows time-to-market, creates supply chain

inefficiencies, results in weaker than expected market penetration, and drives up the

cost of compliance. Fragmented inconsistent Customer data hides revenue

recognition, introduces risk, creates sales inefficiencies, and results in misguided

marketing campaigns and lost customer loyalty 1 . Fragmented and inconsistent

Supplier data reduces supply chain efficiencies, negatively impacts spend control

initiatives, and increases the risk of supplier exceptions. ¡°Product¡±, ¡°Customer¡±,

and ¡°Supplier¡± are only three of a large number of key business entities we refer to

as Master Data.

Master Data is the critical business information supporting the transactional and

analytical operations of the enterprise. Master Data Management (MDM) is a

combination of applications and technologies that consolidates, cleans, and

augments this corporate master data, and synchronizes it with all applications,

business processes, and analytical tools. This results in significant improvements in

operational efficiency, reporting, and fact based decision-making.

Over the last several decades, IT landscapes have grown into complex arrays of

different systems, applications, and technologies. This fragmented environment has

created significant data problems. These data problems are breaking business

processes; impeding Customer Relationship Management (CRM), Enterprise

Resource Planning (ERP), and Supply Chain Management (SCM) initiatives;

corrupting analytics; and costing corporations billions of dollars a year. MDM

attacks the enterprise data quality problem at its source on the operational side of

the business. This is done in a coordinated fashion with the data warehousing /

analytical side of the business. The combined approach is proving itself to be very

successful in leading companies around the world.

¡°Through 2010, 70 percent of Fortune 1000

organizations will apply MDM programs to

ensure the accuracy and integrity of

commonly shared business information for

compliance, operational efficiency and

competitive differentiation purposes (0.7

probability).¡±

Gartner

This paper will discuss what it means to ¡®manage¡¯ master data and outlines Oracle¡¯s

MDM solution 2 . Oracle¡¯s technology components are ideal for building master data

management systems, and Oracle¡¯s pre-built MDM solutions for key master data

objects such as Product, Customer, Supplier, Site, and Financial data can bring real

business value in a fraction of the time it takes to build from scratch. Oracle¡¯s

MDM portfolio also includes tools that directly support data governance within the

master data stores. What¡¯s more, Oracle MDM utilizes Oracle¡¯s Application

Integration Architecture to create MDM Aware Applications 3 and integrate the

high quality authoritative master data into the IT landscape. This fusion of

Customer Data Integration ¨C Reaching a Single Version of the Truth, Jill Dyche, Evan Levy Wiley & Sons,

2006

2 Oracle Master Data Management, an Oracle Data Sheet, URL

3 MDM Aware Applications, an Oracle Whitepaper, URL

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