Evaluation Criteria for a Master Data Management Solution WHITE PAPER Profisee • www.profisee.com • [email protected] Table of Contents Introduction .................................................................................... 3 Establishing an Evaluation Methodology .................................... 3 Technical Architecture .................................................................... 4 Web-based Applications Enable Collaboration ........................... 4 Open Platform Supports Entire Enterprise .................................. 4 Minimize the System Administration Barrier ............................. 4 Scalability and Licensing in Sync for Growth ............................. 4 Reporting Platform Puts Info to Work ....................................... 4 Usability .......................................................................................... 5 Master Data Import Jumpstarts Productivity ............................ 5 Master Data Export Maximizes Info Usability ............................ 5 Flexible Structures Support Business-based Modeling ............. 5 An End-user Experience to Boost Acceptance ........................... 5 Hierarchy Management Made Easy ........................................... 5 Collections Streamline User Reporting ...................................... 6 Version Management ..................................................................... 6 Central Repository for Control & Auditing ............................... 6 Automatic Versioning Makes Control Practical ......................... 6 Built-in Features for Best-practice Change Management ......... 6 Validation Eliminates Error Proliferation .................................. 7 Master Data Reporting Key to Version Management ............... 7 Security ....................................................................................... 7 Role-based Security Ensures Safe Collaboration ...................... 7 Granularity Balances Access with Control ................................ 8 Workflow .................................................................................... 8 Summary ..................................................................................... 8 Introduction Establishing an Evaluation Methodology The process of evaluating a master data management With each year of rapidly evolving business require- solution does not have to bring an organization to its ments, companies have grown their information sys- knees under an avalanche of contradictory vendor tem landscapes into complex topographies of ERP, information, although this is the fear, and sadly, the CRM, Business Intelligence, Financial Reporting, experience of many businesses who have tried to Planning, and other operational systems. While each manage such an evaluation. The trick is to employ an is required for successful business operations, ensur- evaluation methodology that serves to create a solid ing cross-system accuracy and consistency has framework for comparing different approaches and become critical. That is where master data manage- technologies. ment comes in. The first step in this process is to break down the eval- Each of these systems requires components of the uation into specific areas of focus. A careful review, same master data to operate, yet each manages the then, of the criteria in each of these focus areas will information independently, which directly impacts facilitate a consistent and comprehensive appraisal. synchronization and reconciliation across systems. It also typically creates process redundancy, raising One proven methodology for such evaluation estab- maintenance overhead and introduces a greater lishes the following five key areas of focus: opportunity for error. Addressing these negative • Technical Architecture impacts of redundant maintenance efforts is the first • Usability step to ensuring accurate and consistent data. • Version Management The issues associated with master data management • Security have impacted businesses for years. However, for many organizations, master data management has • Workflow been the elephant in the dining room, with everyone Good vendor documentation will cover these con- working around it, but no one willing to acknowledge cepts, which should also be considered critical ele- its presence. Now, under the yoke of recent legislation ments for review in the product demonstration. such as Sarbanes-Oxley in the United States and new accounting standards enacted internationally, compa- nies are being driven to take a hard look at their mas- One of the greatest challenges in evaluating a master ter data management strategies—or to finally data management solution is to accurately identify implement such strategies to replace stop-gap tactics. and eliminate custom development work being pre- In the process, many are finding they don't know what sented by consulting company vendors as packaged they don't know. products. This approach adversely affects the vendor's ability to cost-effectively support a client in its imple- What constitutes a solid master data management mentation, as it requires ongoing custom develop- strategy? What are established best practices, what ment in order to grow and maintain the solution. supporting technologies are available, and how do Assessment of the vendor's ability to provide the fol- you go about evaluating a solution? The following cri- lowing will help businesses identify and avoid consul- teria constitute a proven framework for evaluating tative/custom development approaches: master data management that will serve to guide • Complete paper-based manuals most organizations safely through the maze of possi- • Packaged CD with standard install routine (consul- bilities to an optimal strategy to meet their particular tative engagement/DBA skills not required) needs. The good news is, in addition to compliance, • Readily available upgrades (consultative engage- finally addressing the issues of master data manage- ment/DBA skills not required) ment will also result in reduced overhead, improved • Documented product release plans and quality assurance processes, demonstrating established accuracy, and more effective deployment of the orga- product management function and competence nization's information assets. • Dedicated product support and problem resolution process • Published public training curriculum Evaluation Criteria for a Master Data Management Solution 3 Technical Architecture Scalability and Licensing in Sync for Growth Effective support of cross-organizational business Web-based Applications Enable Collaboration processes drives scalability requirements for a master Master data management on an enterprise basis is data management solution. A solution that is busi- inherently a collaborative process: multiple business ness-focused and accessible will quickly prove its users, across departments, must work together to value to the enterprise, and resulting user demand effectively manage master data. The master data will drive growth. Under these circumstances, even a management tools that business users require in this limited implementation that starts with the installa- collaborative scenario have to be easy to install, main- tion of a few business dimensions will soon be tain and deploy in order not to compete with other required to support business users in an enterprise- business applications and processes for mindshare wide implementation with complex master data, hier- and desktop real estate. This necessitates a simple archies and attributes. The evaluation of products architecture, a zero-footprint client and easy access should ensure that the application will easily scale to for users. For this reason, companies will find that a support this model, however small at the start. Web-based application is the best platform for deployment, offering a simple server install with no In some cases, scalability limitations can be surfaced desktop set-up or maintenance, while providing through careful scrutiny of the relationship between instant access for all users. scalability and licensing. Licensing per user, per com- ponent, per record, or per server contradicts applica- Open Platform Supports Entire Enterprise tion scale and scope through imposing prohibitive Several business intelligence tool vendors offer limit- fees at the high end. While it has become common- ed functionality to manage master data within their place for vendors to avoid scalability issues by con- own proprietary platforms. This discrete functionality structing such licensing models, the business may be put forth as a master data management solu- requirement doesn't go away simply because a given tion, but doesn't actually qualify as such, lacking the vendor makes it unaffordable. required ability to support any relational or propri- etary business intelligence tool across the enterprise. Reporting Platform Puts Info to Work Optimally, the database platform should be invisible Ultimately, the business benefits of master data man- to end-users. In addition, set-up and maintenance agement are delivered in the form of reports that that requires consultative or DBA support is a good make the underlying information actionable. Support indication that you are not looking at a true open plat- for an industry standard reporting platform and an form approach. open reporting structure will enable organizations to maximize these benefits. The best reporting function Minimize the System Administration Barrier is characterized by system-produced reports