Can You Handle the Truth? Master Data Management

Introduction

IpX (The Institute for Process Excellence) recognizes the critical importance of data. At IpX, our blueprint for perpetual organizational success includes mastering the management of data.

Are you prepared to look at the realities of data management in your organization? Hopefully, the following isn't applicable to your situation:

"You can't handle the truth!"
- A Few Good Men

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The movie "A Few Good Men" is a popular fact-based story based on a Broadway play by Aaron Sorkin. A Marine at the Guantanamo Naval Air Station, in Cuba, dies after a hazing incident. Two young Marines are charged with the death, but a curious Navy legal star in Washington (Demi Moore) suspects there may be more to the story and plans to investigate. She is encouraged to assign a lazy Navy lawyer (Cruise) to the case, likely because he has a record of settling out of court and can be counted on to handle the case without generating public embarrassment.

"Son, we live in a world that has walls, and those walls have to be guarded by men with guns. Who's gonna do it? You? You, Lt. Weinburg? I have a greater responsibility than you could possibly fathom."
- Colonel Nathan Jessep    

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A single source of truth (SSOT) refers to a practice in information science and technology where data models and associated schemas are structured such that each data element is mastered or edited in only one place. Data is then shared between integrated tools and promotes consistency and accuracy at all times. This provides the right data, to the right people, at the right time, all the time. Sounds simple right? But everyone struggles with this concept in reality. Can you handle the truth? Can you create, maintain and guard a master source for all product data? Just as Colonel Jessup says in the movie, we have a greater responsibility than you can possibly fathom. Our data must be accurate. What Is Master Data?

What is master data? Master data is the information that drives systems and ideally it is your single point of truth for connected systems. Teams must define that source of truth so that you can connect various systems to that information to simplify transactions for the user and ensure data integrity. This mapping of master data is called master data management. How well this is done can make a huge difference in the ease of work for employees and users.

Master data management (MDM) involves creating a single master record for each piece of data across disparate applications. This data has been "de-duplicated," reconciled, thus becoming a consistent and reliable source.

The Transition from Manual Data Flow to a Single Source of Truth

Example

Let's explore an everyday scenario where a master data source plays a pivotal role in reducing errors and enhancing efficiency.

Imagine a large retail company that manages an extensive product catalog. This catalog includes information about thousands of products, such as their names, descriptions, prices, and suppliers. We've all seen examples where this is done well, as well as "not so well."

A Lack of MDM... 

...will cause...

(1) Data Inconsistencies & Inconsistent Product Information: Different departments might maintain their own records, leading to discrepancies. For instance:

• The marketing team might list a product as "SuperSoft Pillow."
• The sales team could refer to it as "Ultra-Comfy Cushion."
• The warehouse team might simply call it "Pillow."

...resulting in...

• Different departments maintain separate spreadsheets or databases with product details.
• Product names, descriptions, and pricing may vary across systems, leading to confusion and errors in orders and inventory management.

(2) Duplication and Redundancy: Imagine if the same product appears multiple times in various databases or spreadsheets. Each entry might have slight variations (typos, different SKUs, etc.). This redundancy can lead to:

• This redundancy wastes storage space and complicates inventory management.
• Overstocking due to inaccurate inventory counts.
• When a product's price changes or a new product is introduced, updating across all systems is time-consuming.
• Delayed updates can result in incorrect pricing or out-of-stock situations.

(3) Efficiency Drain: Without a central master data source, employees waste time manually searching for accurate information. For instance:

• A customer service representative needs to verify a product's specifications.
• The absence of a unified data repository forces them to check multiple systems, slowing down response times.
• Meanwhile, customers wait impatiently on the phone or receive an order that is not what they expected.

The MDM Solution:

1. Content Consolidation & Centralized Product Master Data: The company consolidates all product data from various sources (sales, marketing, inventory) into a single, reliable database. Errors are cleaned up, and duplicates are removed. The "SuperSoft Pillow" now has a consistent name, SKU, description, price and availability. By centralizing master data and implementing data governance practices, organizations ensure that data is accurate, consistent, and up-to-date.
   
   
2. Master Data Harmonization: The master data system ensures uniformity. MDM ensures consistent naming conventions, standardized units, and accurate descriptions. When someone queries the system for product details, they get the same accurate information, regardless of their role or department. The marketing team, sales team, and warehouse staff all refer to the same authoritative source. High-quality data is crucial for informed decision-making, preventing costly errors and enabling proactive actions based on reliable insights.
   
   
3. MDM Object Maintenance & Real Time Updates: The master data management (MDM) team maintains this central repository. They update prices, descriptions, and supplier details promptly. When a new product variant is introduced (say, a "Lavender-Scented Pillow", it's added uniformly across the organization.

Results:

• Efficiency: Employees find accurate data swiftly, improving decision-making and customer service.
• Error Reduction & Data Quality: Consistent information reduces mistakes in orders, marketing materials, and inventory management.
• Competitive Edge: The company can respond faster to market changes, launch new products seamlessly, and maintain customer trust.

The How: I Want That!

This everyday example applies to various domains beyond retail whether it's managing customer data, employee records, or financial information, MDM plays a crucial role in maintaining data accuracy and efficiency. So what's next?

When creating a master data mapping methodology, it is critical to determine:

• Evaluate Existing Systems & Tools: What are our current software systems? Can we consolidate any systems to reduce complexity? Do we have systems to cover the 4 core areas: ERP, PLM, MES, and CRM?
• Select the Master Source: Which system contains the master editable record in case any downstream system becomes out of date? Multiple systems can define a complete master record. For example, a PLM system can define the part number and engineering definition, while an ERP system can define the cost. Both PLM and ERP will need the part number and PLM may use the cost to help with quicker rough costs on the product.
• Define Where the Data must be Shared: What associated business processes and tools need this data to be shared? Define how the information will be linked between the systems, such as by unique ID, a part number, etc.
• Map the Data: Document the nomenclature and any restrictions for each attribute. For example, part description value must follow a noun, modifier, modifier pattern. The acceptable noun values must be defined to reduce confusion.
• Data Errors: What happens when one system is out of data or passes bad data, such as triggering a warning or preventing the synchronization from happening?
• Ensure Proper Access Controls: Define clear user roles and permissions, implement user authentication, and employ encryption techniques for data protection.

Summary

With business best practices and modern tools, there is no excuse for the waste currently absorbed by organizations today managing multiple sources of data manually. If you are working without having defined master data and sources, start by meeting with the other organizations to document what data is critical to your business and identifying where that single source of truth will be defined. From there you can discuss the best way to define and manage that data. That is the starting point but beyond that, defining and documenting the processes for using that information is absolutely critical to building a foundation for improvement. Many organizations still have a journey in front of them to improve their master data management. They may have tackled some of the big elements, but typically there are many dozens of tools and processes involved in running a company and mapping this to understand your company's data DNA is invaluable.

Creating a Single Source of Truth empowers businesses to create an integrated repository of information, ensuring that all team members have access to accurate and up-to-date knowledge. Also, it promotes consistency, eliminates confusion, and drives better decision-making. A single source of truth is not a strategy or a tool, it is a way of life.

"Do you have any other questions?"
- Colonel Nathan Jessep

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