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.

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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.

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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

First: What is “Master Data”?

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App A

Application-specific, non-duplicated, non-shared data

Data duplicated in multiple apps

Other Data shared with enterprise

App B App C App Z

…

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.

Second: What does it mean to “manage” data?

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First Generation IT Architecture

Business Logic

Cu

sto

mer

Rep

ort

ing

User Interface

……Pro

du

ct

Dat

aD

ata

Application AApplication A

Business LogicC

ust

om

er

Rep

ort

ing

User Interface……Pro

du

ct

Dat

aD

ata

Application BApplication B

Business Logic

Cu

sto

mer

Rep

ort

ing

User Interface

……Pro

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ct

Dat

aD

ata

Application ZApplication Z

……

• Monolithic applications with proprietary, embedded data

• Custom point-to-point integration

• Very little ability to establish enterprise architecture

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Monolithic

CustomApplication

Modular

DB

Data Access

Business Logic

Presentation

DB Server

3 Tier Client/Server

App Server

DB

Data Access

Business Logic

ClientPresentation

Client

5 Tier SOA

Web ServerPresentation

DB Server

App Server

DB

Data Access Services

Business Services

Integration Bus

The Evolution of Data Architecture

Custom

Data

Effective MDM cannot be a component of application

development

ITIT

ApplicatioApplicationn

DevelopmDevelopmentent

TechnologTechnologyy

SystemsSystems

Information Information ManagemeManageme

ntnt

ITIT

ApplicatioApplicationn

DevelopmDevelopmentent

TechnologTechnologyy

SystemsSystems

Information Information ManagemeManageme

ntnt

Traditional Location of Information Management

Responsibility

Emerging Location of Information Management

Responsibility

2 Make sure your MDM program has the authority to be effective

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Three legs on the IT “stool”

ProfitabilityNow

Investmentfor the Future

Financial View

Business ViewCustomer

ValueOperational Efficiency

Strategic Planning

IT View

Application Information Technology

(Where?)(What?)(How?)

Increase Revenue Reduce Expense Grow the Company

The goal of IT is to support the business.The goal of the business is to make money.

MDM Components

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Customer Data Integration (CDI)

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App AApp B

App C

CDI

WH

1. Analytical CDI

2. Synchronization CDI

App

3. System of Record CDI

MDM Components:Enterprise Logical Data

Model

Party Claim ProductMember

Provider

Clinic

Claim

Diagnosis

Procedure

DrugName

Demographic

NPI

Specialty

Location

Risk

Header

ServiceLine

Adjustment

Payment

• 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?

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Project PipelineProject Pipeline

Software Development Life Cycle (SDLC)

Business RequirementsBusiness Requirements

Data QualityData Quality

Architectural ApproachArchitectural Approach

Resource AssignmentResource Assignment

Technical DesignTechnical Design

Design ReviewDesign Review

Unit Testing/ QA TestingUnit Testing/ QA Testing

Code ReviewCode Review

System/User TestingSystem/User Testing

ImplementationImplementation

Escalation ProcessEscalation Process

Pro

jec

t P

roce

ss

Pro

jec

t P

roce

ss

Project Project SupervisorsSupervisors

Senior Senior Leadership Leadership Team Team

Executive Executive SponsorSponsor

Standards Standards Review BoardReview Board

Standards Standards CommitteeCommittee

4 Develop an SDLC and infrastructure to support it

DevelopmentDevelopmentWaiver ProcessWaiver Process

Executive Executive SponsorSponsor

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DATADATA

KNOWLEDGEKNOWLEDGE

DECISION/ACTIONDECISION/ACTION

INFO

RM

ATIO

NB

USIN

ES

S IN

TELLIG

EN

CE

Customers, accounts, Customers, accounts, inventory, payments, inventory, payments, activity, products…activity, products…

Profitability, Churn Profitability, Churn Propensity, Customer Propensity, Customer segment…segment…

Recommend product X, Recommend product X, sign up for ePay, Offer free sign up for ePay, Offer free upgrade… upgrade…

RES

PO

NSE

SR

ES

PO

NSE

SBusiness Intelligence:

Closing the loop

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Maturity Model For Business Intelligence

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Enterprise ReportingEnterprise Reporting

Modeling, Scoring, and SegmentationModeling, Scoring, and Segmentation

Batch CampaignsBatch Campaigns

55 Real-Time DecisioningReal-Time Decisioning

33 Enriching with 3Enriching with 3rdrd-party data-party data

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.

• Always remember that you work for the business!

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Questions?