Chapter 10: Reference & Master Data (Section 1)

Industry Reference Data

Data sets that are created and maintained by industry associations or government bodies, rather than by individual organizations, in order to provide a common standard for codifying important concepts. (page 356)

Reference Data

Data that is used solely to characterize other data in an organization, or solely to relate data in a database to information beyond the boundaries of the organization. (page 350)

Transaction Structure Data

Describes the things must be present for a transaction to occur: products, customers, vendors. (page 351)

Geographic or geo-statistical reference

Enables classification or analysis based on geography. (page 356)

Enterprise Structure Data

Enables reporting of business activity by business responsibility. (page 351)

Standardization

Ensuring data content conforms to standard Reference Data values (e.g., countrycodes), formats (e.g., telephone numbers) or fields (page 362)

Master Data Management (MDM)

Entails control over Master Data values and identifiers that enable consistent use, across systems, of the most accurate and timely data about essential business entities. The goals of MDM include ensuring availability of accurate, current values while reducing risks associated with ambiguous identifiers (those identified with more than one instance of an entity and those that refer to more than one entity). (page 352)

Reference Data Management (RDM)

Entails control over defined domain values and their definitions. The goal of RDM is to ensure the organization has access to a complete set of accurate and current values for each concept represented. (page 352)

Affiliation Management

Establishing and maintaining relationships between Master Data records of entities that have real-world relationships. (page 365)

Duplicate identification match rules

Focus on a specific set of data elements that uniquely identify an entity and identify merge opportunities without taking automatic action (page 364)

Product Master Data

Focus on an organization's internal products and services or on industry-wide (including competitor) products and services. (page 367)

Product data in Manufacturing Execution Systems (MES)

Focus on raw inventory, semi-finished goods, and finished goods, where finished goods tie to products that can be stored and ordered through the ERP system. This data is also important across the supply chain and logistics systems. (page 368)

Product data in Enterprise Resource Planning (ERP)

Focuses on SKUs to support order entry down to inventory level, where individual units can be identified through a variety of techniques (page 368)

Consolidated

Hybrid of Registry and Transaction Hub. (page 370)

Match-link rules

Identify and cross-reference records that appear to relate to a master record without updating the content of the cross-referenced record (page 364)

Validation

Identifying data prove-ably erroneous or likely incorrect or defaulted (page 362)

Global ID

MDM solution-assigned and -maintained unique identifier attached to reconciled records (page 365)

Customer Relationship Management (CRM)

Manage Master Data about customers. Provide complete and accurate information about each and every customer. (366)

X-Ref Management

Management of the relationship between source IDs and the Global ID (page 365)

Reference & Master Data

Managing shared data to meet organizational goals, reduce risks associated with data redundancy, ensure higher quality, and reduce the costs of data integration. (page 348)

Match-merge rules

Match records and merge the data from these records into a single, unified, reconciled, and comprehensive record (page 365)

Lists

Pairs a code value with a description. (page 353)

Affiliation relationships

Provide the greatest flexibility through programming logic. The relationships type can be used to expose such data in a parent-child hierarchy. Many downstream solutions, such as reporting or account navigation tools would want to see a hierarchical view of the information. (page 366)

Location Master Data

Provides the ability to track and share geographic information and to create hierarchical relationships or territories based on geographic information. (page 368)

Trusted Source

Recognized as the 'best version of the truth' based on a combination of automated rules and manual stewardship of data content. (page 358)

Deterministic algorithms

Rely on defined patterns and rules for assigning weights and scores for determining similarity (page 363)

Probabilistic algorithms

Rely on statistical techniques for assessing the probability that any pair of records represents the same entity. (page 363)

Parent-Child relationships

Require less programming logic as the navigation structure is implied. However, if the relationship changes and there isn't an available affiliation structure, this may influence the quality of the data and Business Intelligence dimensions (page 366)

Product Data Management (PDM)

Supports engineering and manufacturing functions by capturing and enabling secure sharing of product information such as design documents (e.g., CAD drawings),recipes (manufacturing instructions), standard operating procedures, and bills of materials. PDM functionality can be enabled through specialized systems or ERP applications. (page 368)

Product data in a Customer Relationship Management (CRM)

Supports marketing, sales, and support interactions can include product family and brands, sales rep association, and customer territory management, as well as marketing campaigns. (page 368)

Golden Record

The 'single version of the truth', where 'truth' is understood to mean the reference to which data users can turn when they want to ensure that they have the correct version of a piece of information. The golden record encompasses all the data in every system of record (SOR) within a particular organization. (page 358)

Master Data

The data that provides the context for business activity data in the form of common and abstract concepts that relate to the activity. It includes the details (definitions and identifiers) of internal and external objects involved in business transactions, such as customers, products, employees, vendors, and controlled domains (code values). (page 351)

Similarity Analysis

The degree of similarity between any two records is scored, often based on weighted approximate matching between corresponding attribute values. (page 363)

Entity resolution

The process of determining whether two references to real world objects refer to the same object or to different objects. (page 362)

Cross-Reference Lists

Translate between codes values. (page 354)

False negatives

Two references represent the same entity but they are not linked with a single identifier. This results in multiple identifiers that refer to the same real-world entity when each instance is expected to have one-and-only-one identifier. (page 363)

False positives

Two references that do not represent the same entity are linked with a single identifier.This results in one identifier that refers to more than one real-world entity instance. (page 363)

Key Processing Steps for MDM

1) Data Model Management 2) Data Acquisition 3) Data Validation, Standardization, and Enrichment 4) Entity Resolution 5) Data Sharing & Stewardship (page 361)

3 approaches to implementing Master Data hub environment

1) Registry 2) Transaction Hub 3) Consolidated (pages 369-370)

Reference & Master Data Management follow what guiding principles?

1) Shared Data 2) Ownership 3) Quality 4) Stewardship 5) Controlled Change 6) Authority (page 350)

3 Goals of Reference & Master Data management

1. Enable sharing of information assets across business domains and applications within an organization. 2. Provide authoritative source of reconciled and quality-assessed master and reference data. 3. Lower cost and complexity through use of standards, common data models, and integration patterns. (page 348)

Computational Reference Data

Access to common, consistent calculations. (page 357)

Enrichment

Adding attributes that can improve entity resolution services (page 362)

System of Reference

An authoritative system where data consumers can obtain reliable data to support transactions and analysis, even if the information did not originate in the system of reference. (page 358)

System of Record

An authoritative system where data is created/captured, and/or maintained through a defined set of rules and expectations. (page 358)

Registry

An index that points to Master Data in the various systems of record (page 369)

Transaction Hub

Applications interface with the hub to access and update Master Data (page 370)

Reference Directories

Authoritative listings of Master Data entities (companies, people, products, etc.) that organizations can purchase and use as the basis of their transactions. (page 368)

Taxonomies

Capture information at different levels of specificity. (page 355)

Ontologies

Characterize other data or to relate organizational data to information beyond the boundaries of the organization. (355)

Financial Master Data

Data about business units, cost centers, profit centers, general ledger accounts, budgets, projections, and projects. (page 367)

Legal Master Data

Data about contracts, regulations, and other legal matters. (page 367)

Party Master Data

Data about individuals, organizations, and the roles they play in business relationships. (page 366)

Matching

aka Candidate Identification, is the process of identifying how different records may relate to a single entity. (page 363)