InSight - Master Data Migration

WHAT IS MASTER DATA MANAGEMENT (MDM)? WHY DOES IT MATTER?

InSight - Master Data Migration

WHAT DOES MDM SYSTEMS DO?

InSight - Master Data Migration

Demystifying MDM and Other Transactional Systems (like ERP, PLM, and CRM)

What is Master Data Management (MDM)? Why does it Matter?

Businesses worldwide are plagued with poor data quality. Research by Harvard Business Review (HBR) shows that just 3% of the data in a business enterprise meets quality standards. According to Experian Data Quality, bad data costs 12% of the company’s annual revenue. Overall poor data quality results in lost productivity, poor insights, and inefficient business operations. One solution to address this problem is with master data management (MDM).

So, what is master data? Master data is a representation of critical business entities such as products, suppliers, and customers in the company’s transactional systems like ERP, PIM, CRM, SCM, POS and so on. Master data is considered the backbone of the enterprise, and is often called the “golden record” or “single version of truth”. In its truest sense, it is the single and authoritative source of business data. Master data falls generally into three types:

  • People such as customers, employees, suppliers, and agencies
  • Things to capture products, parts, devices, equipments, and assets
  • Concepts such as contracts, warranties, GL accounts, profit centers, and licenses

In this backdrop, the three key characteristics of MDM are:

  • Master data elements are shared and used enterprise-wide
  • They are constantly used in creating transactional data such as purchase orders and invoices. Master data elements are high in reusability
  • Master data values do not change very often. They have high inertia

Why does master data matter for a business? In simple words, with MDM you create ONE Version of the data for efficient use across the company. If the data is right, you have just one place to reference and source your data! If the data is wrong, you just have one place to fix your data! So, what are the business benefits of Master data? A comprehensive Master Data Management (MDM) solution, offers benefits such as:

  • By consolidating the critical data elements in one system as a “golden record”, business stakeholders have access to the most up to date and a single version of data thereby improving business operations.
  • By organizing all critical data elements in a centralized system, it is easier to keep track of critical data elements thereby enabling compliance with laws and regulations.
  • As the data quality is improved by having critical data in the MDM system, there will be better insights and improved decision making.

What does MDM systems do?

MDM is commonly known as Master Data Management. However, MDM Inc is using MDM for Master Data Migration. What is the difference between the two - Master Data Migration and Master Data Management?

Master data is the representation of critical business entities such as products, suppliers, and customers. However, in many business enterprises, these critical data elements are created and managed in multiple systems like transactional systems, spreadsheets, and other systems. This has resulted in the lack of a single and authoritative source of business data. To fix this issue and to create a single source of truth, these diverse data elements should be profiled, cleansed, and transformed to create the “golden record”. This set of activities is known as master data migration. Technically, master data migration is the process of selecting, preparing, extracting, and transforming master data and transferring the data from one IT system to another.

MDM Inc has designed and developed MDM360, a comprehensive master data migration (MDM) solution after years of research and data migration implementations worldwide. MDM360 takes legacy, disparate, and inconsistent master data elements, applies business rules and relevant algorithms, and gives a 360-degree view of a rationalized and cleansed master data that can be used across the entire organization.

Once the data migrated from disparate systems using MDM360 to form the “golden record”, these master data records should be managed from one system so that these master data entities can be used in creating business transactions like purchase orders and invoices in the transactional systems. The management of the core business entities from one system is done in the master data management (MDM) system. Popular MDM solutions in the industry are Riversand, Informatics, Profisee, and SAP MDG.

What do these MDM systems do? The MDM systems provide processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting, and distributing master data throughout an organization to ensure a common understanding, consistency, accuracy, and control. At the basic level, MDM systems ensure that an organization does not use multiple (potentially inconsistent) versions of the same master data in different parts of its operations.

Image below is an example which shows the functional association of Master Data Migration application like MDM360 with the Master Data Management and Transactional systems.

InSight - Master Data Migration

Demystifying MDM and Other Transactional Systems (like ERP, PLM, and CRM)

IT systems can be broadly classified into three main types – transactional systems (like ERP, CRM, SCM, HCM, and PLM systems), middleware systems (like EAI and ETL systems), and analytics systems (like BI and Reporting systems). IT Transactional systems facilitate data capture of key business transactions like sales orders (in Salesforce CRM), production orders (in Ariba SCM), invoices (in SAP ERP), manufacturing workflows (in Siemens PIM), payroll (in Workday HCM) to name a few. Middleware systems (such as MuleSoft EAI, UiPath RPA, and Talent ETL) engage in the transfer and transformation of data from the transactional system to the data warehouse systems like Teradata and Cloudera. Finally, the analytics systems (like SAS Viya, Microsoft Power BI, and Tableau) process the data in the data warehouse systems and present the insights for the business users to make appropriate decisions.

However, in the last few years, the transactional systems have become more specialized. While ERP, CRM, PLM systems and other transactional systems are engaged in managing transactions, the data management of business entities should be carried out in the MDM (Master Data Management) systems such as Riversand PIM, Tibco EBX, Informatica MDM, and Stibo MDM. These MDM systems manage four main types of data namely:

  • People such as customers, employees, suppliers, and agencies
  • Places such as plants, stores, and warehouses
  • Things to capture products, parts, devices, equipment, and assets
  • Concepts including contracts, general ledger (GL) accounts, and profit centers.

Functionally, the MDM systems provide a comprehensive method of enabling an enterprise to link all of its critical data to one master file, that provides a common point of reference or a "trusted single version of the truth". What is the business value of MDM? With MDM, if the data is right, you have just one place to refer and source your data; and if the data is wrong, you just have one place to fix your data. The data in MDM is not static; it is integrated with the transactional systems (like ERP, CRM, HCM, and PLM systems) for running the business operations.

Let us take a simple example where MDM and PLM system work in tandem. In product management, the product attributes are managed in the MDM system. But the management of transactions associated with the product life cycle such as trial, R&D approval, manufacturing, costing, marketing, and services is all done in the PLM system. A typical enterprise system architecture which includes the MDM system is shown below in a simplified manner. The mapping of the IT systems is as per the data life cycle phases – capture, integration, analytics, and visualization.

InSight - Master Data Migration

What is Master Data Management (MDM)? Why does it Matter?

Businesses worldwide are plagued with poor data quality. Research by Harvard Business Review (HBR) shows that just 3% of the data in a business enterprise meets quality standards. According to Experian Data Quality, bad data costs 12% of the company’s annual revenue. Overall poor data quality results in lost productivity, poor insights, and inefficient business operations. One solution to address this problem is with master data management (MDM).

So, what is master data? Master data is a representation of critical business entities such as products, suppliers, and customers in the company’s transactional systems like ERP, PIM, CRM, SCM, POS and so on. Master data is considered the backbone of the enterprise, and is often called the “golden record” or “single version of truth”. In its truest sense, it is the single and authoritative source of business data. Master data falls generally into three types:

  • People such as customers, employees, suppliers, and agencies
  • Things to capture products, parts, devices, equipments, and assets
  • Concepts such as contracts, warranties, GL accounts, profit centers, and licenses

In this backdrop, the three key characteristics of MDM are:

  • Master data elements are shared and used enterprise-wide
  • They are constantly used in creating transactional data such as purchase orders and invoices. Master data elements are high in reusability
  • Master data values do not change very often. They have high inertia

Why does master data matter for a business? In simple words, with MDM you create ONE Version of the data for efficient use across the company. If the data is right, you have just one place to reference and source your data! If the data is wrong, you just have one place to fix your data! So, what are the business benefits of Master data? A comprehensive Master Data Management (MDM) solution, offers benefits such as:

  • By consolidating the critical data elements in one system as a “golden record”, business stakeholders have access to the most up to date and a single version of data thereby improving business operations.
  • By organizing all critical data elements in a centralized system, it is easier to keep track of critical data elements thereby enabling compliance with laws and regulations.
  • As the data quality is improved by having critical data in the MDM system, there will be better insights and improved decision making.

What does MDM systems do?

MDM is commonly known as Master Data Management. However, MDM Inc is using MDM for Master Data Migration. What is the difference between the two - Master Data Migration and Master Data Management?

Master data is the representation of critical business entities such as products, suppliers, and customers. However, in many business enterprises, these critical data elements are created and managed in multiple systems like transactional systems, spreadsheets, and other systems. This has resulted in the lack of a single and authoritative source of business data. To fix this issue and to create a single source of truth, these diverse data elements should be profiled, cleansed, and transformed to create the “golden record”. This set of activities is known as master data migration. Technically, master data migration is the process of selecting, preparing, extracting, and transforming master data and transferring the data from one IT system to another.

MDM Inc has designed and developed MDM360, a comprehensive master data migration (MDM) solution after years of research and data migration implementations worldwide. MDM360 takes legacy, disparate, and inconsistent master data elements, applies business rules and relevant algorithms, and gives a 360-degree view of a rationalized and cleansed master data that can be used across the entire organization.

Once the data migrated from disparate systems using MDM360 to form the “golden record”, these master data records should be managed from one system so that these master data entities can be used in creating business transactions like purchase orders and invoices in the transactional systems. The management of the core business entities from one system is done in the master data management (MDM) system. Popular MDM solutions in the industry are Riversand, Informatics, Profisee, and SAP MDG.

What do these MDM systems do? The MDM systems provide processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting, and distributing master data throughout an organization to ensure a common understanding, consistency, accuracy, and control. At the basic level, MDM systems ensure that an organization does not use multiple (potentially inconsistent) versions of the same master data in different parts of its operations.

Image below is an example which shows the functional association of Master Data Migration application like MDM360 with the Master Data Management and Transactional systems.

InSight - Master Data Migration

Demystifying MDM and Other Transactional Systems (like ERP, PLM, and CRM)

IT systems can be broadly classified into three main types – transactional systems (like ERP, CRM, SCM, HCM, and PLM systems), middleware systems (like EAI and ETL systems), and analytics systems (like BI and Reporting systems). IT Transactional systems facilitate data capture of key business transactions like sales orders (in Salesforce CRM), production orders (in Ariba SCM), invoices (in SAP ERP), manufacturing workflows (in Siemens PIM), payroll (in Workday HCM) to name a few. Middleware systems (such as MuleSoft EAI, UiPath RPA, and Talent ETL) engage in the transfer and transformation of data from the transactional system to the data warehouse systems like Teradata and Cloudera. Finally, the analytics systems (like SAS Viya, Microsoft Power BI, and Tableau) process the data in the data warehouse systems and present the insights for the business users to make appropriate decisions.

However, in the last few years, the transactional systems have become more specialized. While ERP, CRM, PLM systems and other transactional systems are engaged in managing transactions, the data management of business entities should be carried out in the MDM (Master Data Management) systems such as Riversand PIM, Tibco EBX, Informatica MDM, and Stibo MDM. These MDM systems manage four main types of data namely:

  • People such as customers, employees, suppliers, and agencies
  • Places such as plants, stores, and warehouses
  • Things to capture products, parts, devices, equipment, and assets
  • Concepts including contracts, general ledger (GL) accounts, and profit centers.

Functionally, the MDM systems provide a comprehensive method of enabling an enterprise to link all of its critical data to one master file, that provides a common point of reference or a "trusted single version of the truth". What is the business value of MDM? With MDM, if the data is right, you have just one place to refer and source your data; and if the data is wrong, you just have one place to fix your data. The data in MDM is not static; it is integrated with the transactional systems (like ERP, CRM, HCM, and PLM systems) for running the business operations.

Let us take a simple example where MDM and PLM system work in tandem. In product management, the product attributes are managed in the MDM system. But the management of transactions associated with the product life cycle such as trial, R&D approval, manufacturing, costing, marketing, and services is all done in the PLM system. A typical enterprise system architecture which includes the MDM system is shown below in a simplified manner. The mapping of the IT systems is as per the data life cycle phases – capture, integration, analytics, and visualization.

InSight - Master Data Migration