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Enterprise Data Governance Enterprise Data Governance Enterprise Data Governance Reference & Master Data Management, Semantic Modeling Pierre Bonnet First published 2010 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc. Adapted and updated from Management des données de l’entreprise. Master Data Management et modélisation sémantique published 2009 in France by Hermes Science/Lavoisier © LAVOISIER 2009 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address: ISTE Ltd John Wiley & Sons, Inc. 27-37 St George’s Road 111 River Street London SW19 4EU Hoboken, NJ 07030 UK USA www.iste.co.uk www.wiley.com © ISTE Ltd 2010 The rights of Pierre Bonnet to be identified as the author of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Library of Congress Cataloging-in-Publication Data Bonnet, Pierre. Enterprise data governance : reference and master data management, semantic modeling / Pierre Bonnet. p. cm. Includes bibliographical references and index. ISBN 978-1-84821-182-7 1. Data protection. I. Title. HF5548.37.B666 2010 658.4'78--dc22 2010014839 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN: 978-1-84821-182-7 Printed and bound in Great Britain by CPI Antony Rowe, Chippenham and Eastbourne. Table of Contents Testimonials from the MDM Alliance Group ........ xiii Foreword .................................. xxv Preface ................................... xxix Acknowledgements .......................... xxxix Introduction to MDM ......................... xli PART ONE: THE MDM APPROACH .................. 1 Chapter 1. A Company and its Data .............. 3 1.1. The importance of data and rules repositories ..... 3 1.2. Back to basics ........................... 6 1.2.1. Past differences ....................... 9 1.2.2. The rich data model .................... 11 1.3. Reference/Master data definition .............. 12 1.3.1. Data initialized before use by transactional systems ..................... 14 1.3.2. Duplicate data ........................ 14 1.3.3. Data exchanged with third parties .......... 19 1.4. Searching for data quality .................. 19 1.4.1. Data quality ......................... 20 1.4.2. The quality of data models ................ 23 1.4.3. The level of maturity of data quality ......... 25 1.5. Different types of data repositories ............. 27 vi Enterprise Data Governance 1.5.1. Technical classification .................. 28 1.5.2. Customer Data Integration (CDI) ........... 31 1.5.3. Product Information Management (PIM) and Product Life Management (PLM) ............... 33 1.5.4. Lightweight Directory Access Protocol (LDAP) . 35 Chapter 2. Strategic Aspects ................... 37 2.1. Corporate governance ..................... 37 2.1.1. Forced against the wall by regulations ....... 38 2.1.2. The new scorecard ..................... 41 2.2. The transformation stages of an IT system ....... 42 2.2.1. First stage: the data repository ............ 43 2.2.2. Second stage: the business rules repository is added to the data repository ................. 46 2.2.3. Third Stage: adding the business processes repository ........................ 49 2.3. Sustainable IT Architecture ................. 51 2.3.1. The new management control ............. 52 2.3.2. Maintaining knowledge and the strategic break ........................... 55 Chapter 3. Taking Software Packages into Account .. 57 3.1. The dead end of locked repositories ............ 57 3.2. Criteria for choosing software packages ......... 59 3.2.1. Availability of the data model ............. 61 3.2.2. Repository updates .................... 62 3.2.3. Neutralization of a locked MDM ............ 62 3.3. Impact for software vendors ................. 63 3.4. MDM is also a software package .............. 65 Chapter 4. Return on Investment ................ 69 4.1. Financial gain from improved data quality ....... 69 4.2. The financial gain of data reliability ........... 71 4.3. The financial gain of mastering operational risks ... 74 4.3.1. An all too often inefficient control system ..... 74 4.3.2. MDM for the control of operational risks ...... 76 4.4. The financial gain of IS transformation ......... 77 4.4.1. The overlap of an Information System and IT ... 78 4.4.2. Financial valuation of an Information System . 79 Table of Contents vii 4.4.3. The MDM as a springboard for transformation of IS ...................... 81 4.5. Summary of the return on investment of MDM .... 83 PART TWO: MDM FROM A BUSINESS PERSPECTIVE........ 87 Chapter 5. MDM Maturity Levels and Model-driven MDM .......................... 89 5.1. Virtual MDM ........................... 89 5.2. Static MDM ............................ 92 5.3. Semantic MDM .......................... 95 5.3.1. Improved administration by business users .... 97 5.3.2. A greater reliability in the data repository ..... 97 5.3.3. Preparation for MDM integration with the rest of a system ..................... 98 5.4. The MDM maturity model .................. 100 5.5. A Model-driven MDM system ................ 103 5.5.1. Variants ............................ 103 5.5.2. Hiding join tables ...................... 104 Chapter 6. Data Governance Functions ........... 109 6.1. Brief overview .......................... 109 6.2. Ergonomics ............................ 111 6.3. Version management ...................... 112 6.4. The initialization and update of data by use context ............................. 114 6.4.1. The affiliation of contexts ................ 115 6.4.2. The automatic detection of shared data ....... 117 6.5. Time management ....................... 118 6.5.1. Data history tracking ................... 119 6.5.2. Business transaction .................... 120 6.5.3. Validity period ........................ 121 6.6. Data validation rules ...................... 122 6.6.1. Facets ............................. 123 6.6.2. Integrity constraints .................... 124 6.6.3. Business rules ........................ 126 6.7. The data approval process .................. 128 6.8. Access rights management .................. 129 6.9. Data hierarchy management ................. 130 6.10. Conclusion ............................ 131 viii Enterprise Data Governance Chapter 7. Organizational Aspects ............... 133 7.1. Organization for semantic modeling ........... 133 7.1.1. The foundations of the organization ......... 135 7.1.2. Data owners ......................... 136 7.1.3. The Enterprise Data Office ............... 137 7.1.4. Does this organization involve risks? ........ 139 7.2. The definition of roles ..................... 146 7.2.1. Data owner .......................... 146 7.2.2. Data analyst ......................... 146 7.2.3. Data architect ........................ 147 7.2.4. Data cost accountant ................... 148 7.2.5. Data steward ........................ 148 7.3. Synthesis of the organization required to support the MDM ........................... 148 PART THREE: MDM FROM THE IT DEPARTMENT PERSPECTIVE ..................... 151 Chapter 8. The Semantic Modeling Framework ..... 153 8.1. Establishing the framework of the method ....... 153 8.1.1. The objectives of semantic modeling ......... 154 8.1.2. The lifecycle of semantic modeling .......... 157 8.2. Choosing the method ...................... 161 8.2.1. The Praxeme method ................... 161 8.2.2. Choosing another method ................ 170 8.3. The components of Enterprise Data Architecture ... 172 8.3.1. The business object .................... 173 8.3.2. The data category ..................... 175 8.3.3. Business object domains ................. 176 8.3.4. Data repository architecture .............. 176 8.4. The drawbacks of semantic modeling ........... 178 8.4.1. The lack of return on investment ........... 178 8.4.2. Lack of competency .................... 179 8.4.3. The blank page effect ................... 180 8.5. Ready-to-use semantic models ............... 180 8.5.1. Software packages ..................... 181 8.5.2. Industry specific models ................. 182 8.5.3. Generic data models .................... 183 Table of Contents ix Chapter 9. Semantic Modeling Procedures ......... 187 9.1. A practical case of semantic modeling: the address ............................... 187 9.1.1. Non-compliant version of semantic modeling ... 188 9.1.2. First draft of semantic modeling ............ 191 9.1.3. Modeling of the lifecycle of the address ....... 192 9.1.4. Complete semantic modeling of the address .... 197 9.2. Example of Enterprise Data Architecture ........ 199 9.3. Semantic modeling procedures ............... 202 9.3.1. Extended business operation .............. 202 9.3.2. Elementary business operation ............. 207 9.3.3. Single-occurrence and multi-occurrence business operations ........................ 208 9.3.4. Fostering the upgradeability of data models .... 209 9.3.5. Other principles ....................... 213 Chapter 10. Logical Data Modeling ............... 215 10.1. The objectives of logical modeling ............. 215
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