Master Data Management (MDM)
ARKANSAS BLUE CROSS BLUE SHIELD
RSFOX@ARKBLUECROSS.COM
(501) 396-4160
Tuesday 9/25, 8:40 - 9:20
Biography
Robert Fox - Data Architect, Arkansas Blue Cross Blue Shield
•17 years of data architecture and warehousing
experience in the finance, telecom, and health
insurance industries.
•Installed over 50 data warehouses worldwide, some
loading more than 4.5 terabytes of new transactional
data per day.
•Guest lecturer in information management masters
degree programs at 3 universities.
•Speaker at national conferences for Oracle, Fidelity,
and MDM-CDI.
2
Abstract – MDM is bigger than you think
Master Data Management (MDM) is critical to effective managing
the information assets of your company. Unfortunately, however,
the meaning of the term Master Data Management has become
more limited in scope over time.
To understand the full scope of MDM, you must ask yourself two
questions:
1. What is “master data”?
2. What all is involved in “managing” it?
How you answer these two questions determines whether your
MDM program is a departmental or enterprise solution, and
whether you are managing the information or managing a
process.
This presentation will propose a framework for MDM that is broad
in terms of both data and functionality.
3
Why is Information Important?
The Evolution of Competition
1. The Land Grab
• Acquiring unclaimed customers
• Investment in infrastructure, name recognition, and
geographic territory
2. The Killer App
• Stealing customers from the competition by offering new
and better products and services
• Investment in software development
3. The Information War
• Stealing and retaining customers from the competition by
knowing more about the customer and giving them
individually customized treatment
• Investment in business intelligence, customizable offerings
4
First: What is “Master Data”?
Application-specific,
non-duplicated, nonshared data
…
App A
App B
App C
Data duplicated in
multiple apps
App Z
Other Data shared
with enterprise
There seem to be three different definitions:
1. Master Data is all the data, everywhere.
2. Master Data is just the data that is duplicated in multiple
applications.
3. Master Data is any data that is exposed outside of an
application, whether it is duplicated or not.
5
Second: What does it mean to “manage” data?
6
First Generation IT Architecture
•
•
•
Reporting
…
…
Product
Application Z
Customer
Reporting
…
Product
Application B
Customer
Reporting
…
Product
Customer
Application A
Business Logic
Business Logic
Business Logic
User Interface
User Interface
User Interface
Monolithic applications with
proprietary, embedded data
Custom point-to-point
integration
Very little ability to establish
enterprise architecture
7
The Evolution of Data
Architecture
Monolithic
Modular
3 Tier Client/Server
DB Server
Custom
Data
DB
Data Access
Presentation
DB Server
DB
Data Access
Business Logic
Custom
Application
5 Tier SOA
DB
Data Access Services
App Server
App Server
Business Logic
Client
Presentation
Business Services
Integration Bus
Web Server
Presentation
Client
8
Effective MDM cannot be a component
of application development
Traditional Location of
Information Management
Responsibility
Emerging Location of
Information Management
Responsibility
IT
IT
Application
Development
Technology
Systems
Information
Management
Application
Development
Technology
Systems
Information
Management
2
Make sure your MDM program has the authority to be effective
9
Three legs on the IT “stool”
Financial
View
Profitability
Now
Business View
Customer
Value
Investment
for the Future
Operational
Efficiency
Strategic
Planning
Reduce Expense
Grow the Company
Application
Information
Technology
(How?)
(What?)
(Where?)
Increase Revenue
IT View
The goal of IT is to support the business.
The goal of the business is to make money.
10
MDM Components
11
Customer Data Integration
(CDI)
App A
CDI
App B
App C
1. Analytical CDI
2. Synchronization CDI
3. System of Record CDI
WH
App
12
MDM Components:
Enterprise Logical Data Model
Party
Member
Name
Demographic
Risk
Provider
Claim
Product
Claim
Drug
Header
ServiceLine
Adjustment
Payment
NPI
Specialty
Clinic
Location
•
•
•
•
Diagnosis
Procedure
•
•
•
•
DB Design
SOA Services
Mapping Sources
Defining System
of Record
Define Stewards
Global Dictionary
Standard Terms
Document Bus.
Relationships
Data Standards
•
•
•
•
•
•
•
•
•
•
•
•
•
No duplicate data
SoA same as SoR unless proven untenable
Only one warehouse
All data is owned by the enterprise, not individuals or departments
Data storage and transmission must comply with security standards
Services used by multiple applications must use data structures derived from
the enterprise data model
All data structures must be documented
All new data structures must be derived from enterprise data model
Data quality should be addressed at the point of entry into corporate network
Information should be as accurate and current as possible
Data access should always be directed to the SoA
The data model should drive the choice and architecture of applications, and
should be based in turn on business requirements
Any exceptions should go through Data Governance
Dimensions of Data Quality for
an Analytical Repository
• INTEGRITY – does the data accurately reflect
the source system?
• VALIDATION – is the data valid for the field?
• VERIFICATION – is the data actually true?
• BALANCING – does the data compare to other
systems (i.e. GL)?
• AUDITING – Are there outlying values?
15
Software Development Life Cycle
(SDLC)
Project Pipeline
Business Requirements
Data Quality
Architectural Approach
Escalation Process
Project
Supervisors
Resource Assignment
Senior
Leadership
Team
Executive
Sponsor
Technical Design
Project Process
Design Review
4
Development
Unit Testing/ QA Testing
Waiver Process
Standards
Review Board
Standards
Committee
Executive
Sponsor
Code Review
System/User Testing
Implementation
Develop an SDLC and infrastructure to support it
16
Business Intelligence:
Closing the loop
INFORMATION
DECISION/ACTION
Recommend product X,
sign up for ePay, Offer free
upgrade…
RESPONSES
KNOWLEDGE
Profitability, Churn
Propensity, Customer
segment…
BUSINESS INTELLIGENCE
DATA
Customers, accounts,
inventory, payments,
activity, products…
17
Maturity Model For Business Intelligence
5
4
3
2
1
Real-Time Decisioning
Batch Campaigns
Enriching with 3rd-party data
Modeling, Scoring, and Segmentation
Enterprise Reporting
18
Summary
• Figure out what “Master Data Management” means
in your organization
• Think larger than the warehouse.
– Make sure your program is empowered with authority to
be effective within the enterprise.
– Develop a functional area framework and assign
responsibilities
• Develop efficient MDM strategies for each
functional area: Software development process,
standards and waivers, aging and archiving, data
quality, data delivery, security, etc.
19
• Always remember that you work for the business!
Questions?
20