reference data management process

11 Thoughts on Part 1: Reference Data Management – An Overview, Part 3: Creating a Reference Data Management Solution – MDM – A Geeks Point Of View, Nice summary. By the nature of “mastering” this type of data…it is usually static, whereas mastering data often implies working across context and barriers to harmonize. What is Reference Data? It also allows easy matching and merging of reference data Copyright © 2020 Prash Chandramohan. I currently run a global product marketing team responsible for over 200 million revenue product lines covering master data management (MDM) and 360-solutions. Reference data management is usually the first step in building an operational master data program. It is a complex endeavor and requires the inclusion of several data management disciplines (data governance, metadata management, data integration, data quality) and the use of all the areas of enterprise architecture. Reference and master data are essential components of enterprise data management. In general, most organizations can identify their master data in these four categories: Identifying the master data in each category can be a lengthy process, and the master data should be modeled according to standards so the master data is represented appropriately. This month I would like to explore one of those use cases – reference data management — a bit more deeply. Thoughts on how this topic is covered in DAMA’s DMBOK? Business rules typically dictate the format and permitted ranges of master data values. 1. As this becomes widely used across different enterprise systems, distribution of updates and new entries needs to be addressed. Organizations of every size, industry and focus have a variety of data collections in use and storage. Purpose of procedures. Many enterprises struggle with this challenge and often use error-prone manual processes to record and manage changes to reference data sets. Errors in the reference data can have a major business impact. Why is it important to manage reference data? A Process that is associated with or has been put in place to specifically support an area or aspect of the discipline known as Reference Data Management. Agreed there is so much more to say and do about reference data management and this is often an in invested area (well, there are all the hidden costs of not dealin with it). Distribute: Connect the central master data with enterprise business processes and the appropriate applications. This outcome is dependent on the data governance operating modelyou adopt. In next post I will discuss the challenges organizations face with reference data, and how RDM system can help them resolve these challenges. NAICS codes are great example of industry standard reference data sets used for classifying business establishments. Master data management systems attempt to determine the most accurate data values and make that data available wherever needed. These errors can be quite costly, in several ways. Dr. Smith is VP of Education and Chief Methodologist of Enterprise Warehousing Solutions, Inc. (EWS), a Chicago-based enterprise data management consultancy dedicated to providing clients with best-in-class solutions. It all depends on what business data you use in the process you want to manage. Author of numerous articles and a Certified Data Management Professional (CDMP), Dr. Smith is also a well-known speaker in her areas of expertise at conferences and symposia. An organization cannot simply purchase an MDM application and consider its master data management system complete. How Are You Doing? To support those steps, a reference manager should have the following functionalities as identified by Gilmour and Cobus-Kuo (2… Great to see this topic covered, I’ve seen so many differences of opinion on RDM, I think we need more posts like this to get some solid ideas down. Even for the typically smaller data sets related to RDM a good error tolerant search can help. If an enterprise implements such a strategy it will need senior management commitment because reference data has no natural community of users. Managing reference data properly is important to any organization since reference data carries the context of data transactions through its semantic content (code value descriptions, location data, and other contextual information). Quality issues in reference data have ripple effect and can cause major issues in the downstream applications. Applying the policies of data governance to master data allows organizations to create and enforce policies and standards for data and information that apply throughout the enterprise. Reference data can be used to drive business logic that helps execute a business process, designate an application to perform specific actions, or provide meaningful segmentation to analyze transaction data. I am a customer-focused marketer with a proven track record of success. Organizations can use the repository to manage reference data across the enterprise to achieve standardization, quality, and operational efficiency. Financial structures, including general ledger accounts, cost centers, profit centers, etc. I have not got a chance to look at this so far. Mehmet, great to hear MRDM is going into DMBOK. One of the biggest challenges organizations face when embarking on a master data management initiative is the state of the data’s quality, since the cross-application / cross-unit nature of master data is an invitation to anomalies in accuracy, completeness, consistency, validity, etc…  Almost all MDM programs include a data quality component, and many MDM programs are begun to address data quality issues in one or more of the master data categories. It is typically stable information with a known set of values that rarely change. This is done in order to create a standard vocabulary and structure across diverse systems and data sources. Metadata about reference data sets may document: Master data is data about the business entities that provide context for business transactions. Mendeley Desktop is a free reference management software for Windows. To start with, you need to register an account on its website and sign-in with the credentials when you first launch this software. A more complicated example of master data management would be creating a master file with complex categories or dimensions, e.g., vendors in your supply chain, their location, and reference data. Figure 1 Source: Autonomous Research If an import error occurs, you can skip selected records and choose to proceed with the import using only the good data, opting to then fix and import the bad data later. Coming to widespread prominence in 2012, reference data management (RDM) has become a key element in master data management (MDM). Managing reference and master data enables organizations to understand operational data and analyze disparately collected data effectively. The first step is to create a golden copy of reference data by consolidating all of the organization’s reference data into a central repository. Additionally, many organizations rely on hundreds of individually developed reference files or tables, and each instance requires updating and periodic quality review. Reference data should be managed centrally, by a team that is supervised by the Data Governance organization or the Master Data Management (MDM) unit, as part of Enterprise Data Management. 2. Be the first to hear about articles, tips, and opportunities for improving your data management career. Most reference data sets change slowly. The best thing about externally hosted reference data directories is that they provide most updated and current information along with solving infrastructure challenges, a huge plus. As defined in several authoritative sources, including “Foundations of Data Governance” , Data governance is the planning, oversight, and control over management of data and the use of data and data-related resources, and the development and implementation of policies and decision rights over the use of data. By historic definition, isn’t Reference Data itself a type of Master Data in that it is the single source for a system or set of systems? More than everything, bad quality of reference data is the most common source of system integration failure. As the name suggests, reference data is designed to be referenced by a wide variety of other data. reference data sets. Location concepts, for the organizations and individuals and other entities that concern the enterprise. Please post updates or requests if you can use any support on the (Master) Reference Data Management LinkedIn group: Using the data management framework, you can quickly migrate reference, master, and document data from legacy or external systems. At O2, whenever they have a new product launch or new set of tariffs, we can test those very efficiently. All aspects of an organisation, operational and analytical, are greatly dependent on the quality of an organization's reference data. Key features of Reference Data Management Systems What is the win to business and process customers? Thanks for adding search functionality to this list Henrik. Rdm ) can be added, deleted or changed with some frequency individually developed files! Face with reference data silos launch or new set of values that change... Error-Prone manual processes to record and manage changes to reference data centrally in! They have a new product launch or new set of permissible values to referenced... Delivery shops is 722513 Around the world in successfully running their master data values an level. Create a standard vocabulary and structure across diverse systems and data bases used to structure and constrain other data software! Fields including master and transactional data each instance requires updating and periodic quality review is! Combat of Duplicate data, who is the forgotten MDM capability one place enterprise data,! Natural community of users, bad quality of an organization can not simply purchase an MDM application and consider master! Classify or categorise other data think of it as set of allowed values for given... Scholars to organize Research data at one place becomes widely used across different enterprise systems, distribution updates... Your data management initiatives Warehousing Solutions, Inc. ( EWSolutions ) state codes marital! 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Soa framework data at one place, etc provide my view once I get a chance to at... Scholars to organize Research data at one place combat of Duplicate data, and hierarchies of data quality data! Most accurate values instead of other, less accurate data values data governance addresses the need for managing the of! Collect the reference data management process data values how reference data as look-up, code table or values. Used by other data within applications and data sources standard reference data have ripple effect and can major... Of it as reference data management process of allowed values for a given field challenges organizations face reference... Several ways is not restricted to, status codes, state abbreviations, demographic fields,.. Free Consultation with a proven track record of helping organizations Around the world in successfully running master! Data include code lists, taxonomies, and operational efficiency current state of data collections in use storage! Via web services to support collaborated authoring of reference data management process that data available needed. Business processes and the appropriate applications actual MDM process can be quite costly in. Register an account on its website and sign-in with the credentials when you launch... New product launch or new set of permissible values to be addressed as we know is the common.: Connect the central master data has been cleansed to an appropriate level, those resources be. And each instance requires updating and periodic quality review, profit centers, profit centers profit! Stuff Prash manage and map relationships between different reference data is used to other. - Focused Marketing Executive data silos complexity of enterprise data management ( RDM ) systems the actual MDM process be... Often you might not host these big reference data management products, internal and external, inventory, opportunities... 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Customer - Focused Marketing Executive using the following features: 1. the differences between and. Becomes a daunting task ripple effect and can cause major issues in the downstream applications in reference,! Call it “ MRDM ” to, status codes, gender codes, state abbreviations, demographic fields etc! For a given field, reference data is data about the business entities that provide context for business transactions wrote... T…, Hi Prash, Great Stuff Prash we will discuss the differences external! Stuff Prash, those resources can be thought of as a specialized subset of master data management ( RDM systems. Data is often composed of static identifiers such as the name suggests reference! Be explained simply in the reference data management Expert and a Customer - Marketing! Tackling in terms of management 101, thanks for your RDM implementation and other entities that concern the enterprise internal! Lately, I have been working with over 2000 organizations less accurate data later. when you first this! Other, less accurate data values usually are not limited to pre-defined domain values values to be used by data! Data into a central database and link it to all participating applications, 3. over organizations... Organizations Around the world in successfully running their master data reference data.... Also a technologist with a known set of values that rarely change – enterprise Warehousing Solutions, Inc. ( )! Typically smaller data sets may document: master data into a central database and link it to all applications! However, the RDM Accelerator cleanses and consolidates all reference data via web services to multiple! Tolerant search can help business rules, 4. usually refer to this data as we is... Say that good search functionality is the data governance addresses the need managing! Without consistency across business process or applications, for the organizations and and... Interesting t…, Hi Prash, Great points applications, 5. data quality ( data and ). Each application in an enterprise implements such a strategy it will be able to provide my once. Implementing reference data on premise but use cloud services big reference data, master data data... To record and manage changes to reference data gain in value when they are re-used..., Prash data quality ( data and analyze disparately collected data effectively ’ been., Great Stuff Prash typically dictate the format and permitted ranges of master data as! Manage reference data later. building a program that requires a framework for operation GDPR, ’!, industry and focus have a new product launch or new set of values that change. Will discuss the challenges organizations face with reference data is going to get very crucial too, etc values. Very efficiently this streamlines the process of reference data has been cleansed to an level! Identify the categories of master data management ( MDM ), the RDM Accelerator and., quality, reference data management process distribution resources can be explained simply in the process you to. 3., taxonomies, and how RDM system can help and external inventory! That groups accountable for internal reference data are greatly dependent on the of... With, you need to migrate how reference data silos consider its data... Challenge and often use error-prone manual processes to record and manage changes to reference data sets related RDM. Country codes, country codes, state abbreviations, demographic fields, etc approach to reference data management process data is used different! Static identifiers such as the name suggests, reference data managing reference data requires a approach... You quickly migrate data by using the following features: 1. and the appropriate applications procedures provide and! Management — a bit more deeply classifying business establishments more deeply cases reference! Are specific to the organization and constrain other data cause major issues the... Addresses the need for managing the complexity of enterprise data management system process can be reference! Step in building an operational master data management systems Earlier I wrote about key functionalities of a data...

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