Master Data Management and Customer Data Integration for a Global Enterprise

434 Pages·2007·14.03 MB·english

by  Alex Berson

Master Data Management and
Customer Data Integration
for a Global Enterprise
About the Authors
Alex Berson is an internationally recognized expert, author, and educator in various
areas of information technologies. Throughout his professional career, Alex Berson
has held key technology and management positions in several major corporations
including BearingPoint Inc., Merrill Lynch, Entrust, enCommerce, Dun & Bradstreet,
PricewaterhouseCoopers, Solomon Smith Barney, and others.
Mr. Berson holds graduate and postgraduate degrees in Computer Sciences and
Applied Math, and focuses his professional activities on Identity Management;
Information Security, Risk and Compliance; Master Data Management (MDM),
Customer Data Integration (CDI), and Customer Relationship Management (CRM);
data warehousing and data mining; Web Services, service-oriented architectures; and
middleware and enterprise application integration.
Mr. Berson is a member of Standard & Poor’s Vista Research Society of
Industrial Leaders (SIL). He is also an active member of professional associations
in the industry, such as the IEEE Computer Society, ACM, and Aberdeen Group’s
Technology Forecasting Consortium; standards organizations including OASIS,
OMG, and Open Group; and various industry consortia including Securities Industry
Middleware Council (SIMC) and the Data Warehousing Institute. Alex Berson sits
on the advisory boards of several technology and financial services companies. He
has published numerous technical articles and direction-setting white papers in trade
magazines. He is the author of a number of best-selling professional books including
Building Data Mining Applications for CRM, Data Warehousing, Data Mining
and OLAP; Client/Server Architecture; SYBASE and Client/Server Computing; and
APPC: Introduction to LU6.2.
Larry Dubov is a recognized expert and thought leader in the implementation of
complex business-driven technology solutions for financial services, banking and
pharmaceutical verticals with the primary focus on Customer Data Integration (CDI),
Master Data Management (MDM), Customer Relationship Management (CRM),
data warehousing, and operational data stores. He has gained both depth and breadth
of technical knowledge in multiple areas of Customer Data Integration and Master
Data Management including data and solution architecture, customer recognition,
customer-centric data transformations, data stewardship, and information quality.
He has developed a strong holistic vision of the CDI problem domain and CDI
implementation methodology based on practical experience gained through successful
project implementations. He is a recognized speaker on the topic of Master Data
Management and has participated in a number of MDM-CDI conferences.
Larry has held senior technology and management positions with consulting
companies BearingPoint and FutureNext ZYGA. Larry formerly worked as an
independent consultant for a number of companies across various industry verticals.
Copyright © 2007 by The McGraw-Hill Companies. Click here for terms of use.
The list of Larry’s clients includes Fortune 1000 companies and established mid-size
organizations: Merrill Lynch, Bessemer Trust, Washington Mutual, Cenlar Bank,
Merck, Johnson & Johnson, Hoffmann La Roche, Aventis, Estée Lauder, AT&T, and
Daimler-Benz.
Larry spent two years at Princeton University as a visiting research scientist
working on mathematical models for optimal control of molecular processes. Earlier,
during his career in Russia he gained a strong scientific background with Ph.D. and
Dr.Sci. degrees in Mathematical Physics. Larry is the author of over 70 publications.
A combination of multiple backgrounds—science (physics, chemistry, and
advanced math), deep knowledge of Information Technology, and understanding
of business processes—helps Larry see unique approaches to complex business
problems and offer their solutions.
About the Technical Editors
Joe Bower has over 30 years experience in business management and systems
development. As a seasoned line manager, Joe was responsible for managing various
operational units. In most instances, each position found Joe involved in application
development.
As both a manager and a consultant, Joe works in regulated industries that include
telecommunications, pharmaceutical, and finance. For various employers and client
companies, Joe has authored over 400 business manuals.
Joe’s background in information security spans 14 years. He routinely manages
security policies and standards, information security programs, information security
project management, selective vendor relationships, compliance, and reporting. Joe
obtained the Certified Information Security Manager (CISM) certification in 2005.
Bernard K. Plagman is cofounder and Chairman of TechPar Group (TPG), a
technology advisory services company that consults on all facets of the Information
Technology (IT) industry. TPG focuses on delivering strategic and tactical advisory
services to technology investors, technology vendors, and technology users.
Charles Popper is cofounder and CEO of TechPar Group (TPG), a technology
advisory services company that consults on all facets of the Information Technology
(IT) industry. TPG focuses on delivering strategic and tactical advisory services to
technology investors, technology vendors, and technology users. In its first four-plus
years, TPG has grown from three partners to a team of more than 50 consultants,
delivering services to 100 clients.
Prior to founding TPG, Dr. Popper was Vice Chairman and Chief Technologist
for Orama Partners, a boutique investment bank servicing and investing in high-
tech start-ups, with a strong focus on Israeli companies. Previously, he was
Copyright © 2007 by The McGraw-Hill Companies. Click here for terms of use.
Vice President of Corporate Computer Resources and CIO at Merck & Co., Inc.
from October, 1991 until January, 1999. He was responsible for all areas of computer
and telecommunications technology at Merck, including application development,
technical support, and operations. The scope of his responsibility was worldwide
and included support for all segments of the company: research, manufacturing,
marketing, and corporate administration. He was responsible for an annual operating
budget of about $400M, in addition to a capital budget of about $100M. Dr. Popper
served as a member of a number of business leadership groups, such as the
Manufacturing Management Council, the HR Strategy Team, and the Worldwide
Cholesterol Business Management Team; he was a regular participant in other senior
leadership councils.
Before joining Merck in October, 1991, Dr. Popper was a partner in the management
consulting practice of Deloitte & Touche. He has worked as a mathematician for
the National Security Agency, a research scientist at Bell Laboratories, Director
of Advanced Technology for American Express, and Vice President of Advanced
Technology at Lehman Brothers Kuhn Loeb.
Dr. Popper received his B.A. (Magna Cum Laude, Phi Beta Kappa) and
Ph.D. degrees from Harvard in Applied Mathematics and Computer Science.
Two of his papers have been published by the Harvard Program on Information
Resource Policy: “A Holistic Framework for IT Governance,” and “Achieving
Software System Quality Via a Comprehensive Approach to Testing and Validation.”
Paul Raskas has 30+ years of Fortune 500 consulting experience, including
working as a senior executive at IBM and working as an independent consultant.
His work addresses applications solutions across a number of industries, such
as financial services, pharmaceutical, telecom, and utilities, focusing on data
architecture, integration, and quality and business intelligence solutions.
Master Data Management and
Customer Data Integration
for a Global Enterprise
Alex Berson
Lawrence Dubov
New York Chicago San Francisco
Lisbon London Madrid Mexico City Milan
New Delhi San Juan Seoul Singapore Sydney Toronto
Copyright © 2007 by The McGraw-Hill Companies. All rights reserved. Manufactured in the United States of America.
Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distrib-
uted in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the pub-
lisher.
0-07-151089-3
The material in this eBook also appears in the print version of this title: 0-07-226349-0.
All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a
trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention
of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps.
McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in cor-
porate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-
hill.com or [phone].
TERMS OF USE
This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and
to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to
store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create
derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without
McGraw-Hill’s prior consent. You may use the work for your own noncommercial and personal use; any other use of the work
is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms.
THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WAR-
RANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM
USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA
HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUD-
ING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet
your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be
liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages result-
ing therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no
circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or
similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibil-
ity of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause
arises in contract, tort or otherwise.
DOI: 10.1036/0072263490
Professional
Want to learn more?
We hope you enjoy this
McGraw-Hill eBook! If
you’d like more information about this book,
its author, or related books and websites,
please click here.
To Irina, Vlad, Michelle, Tara, and Colin Alexander
—Alex Berson
To Irene, Anthony, Stacy, and my mother and father
—Larry Dubov
For more information about this title, click here
Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi
Part I Introduction to Master Data Management
and Customer Data Integration
Chapter 1 Overview of Master Data Management
and Customer Data Integration . . . . . . . . . . . . . . . . . . . . . . . 5
Master Data Management (MDM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Why Master Data Management Now? . . . . . . . . . . . . . . . . . . . . . . . . 6
Challenges of Creating and Managing Master Data . . . . . . . . . . . . . . . . . . 8
Defining Master Data Management . . . . . . . . . . . . . . . . . . . . . . . . . 11
Customer Data Integration (CDI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Evolution of CDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Key Benefits of Master Data Management and Customer Data Integration . . . . . . . . . . 18
Chapter 2 CDI: Overview of Market Drivers and Key Challenges . . . . . . . . . . . 21
The Business View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
CDI as a Vehicle for Competitive Advantage . . . . . . . . . . . . . . . . . . . . . 22
Industry Views of CDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
What Most CDI Implementation Approaches Have in Common . . . . . . . . . . . . 29
Commercial Marketplace: Domain-Specific CDI Features . . . . . . . . . . . . . . . 31
Public Sector: Domain-Specific CDI Features . . . . . . . . . . . . . . . . . . . . . 35
Geographic Views: CDI Goes Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Chapter 3 Challenges, Concerns, and Risks of Moving
Toward Customer Centricity . . . . . . . . . . . . . . . . . . . . . . . . 39
Business Challenges in Moving Toward Customer Centricity . . . . . . . . . . . . . . . . . . 40
Senior Management Commitment and Value Proposition . . . . . . . . . . . . . . . 40
Business Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
ix