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Written By Axel Nash |
When it comes to effective data management, choosing the right MDM (Master Data Management) style is crucial for every organization. Why? Because every organization strives to enhance the overall productivity and execute successful project deployment.
To do this, however, it’s important that all the employees are able to access the data easily, and more importantly - the data stays consistent throughout the firm. Believe it or not, but this will depend on the MDM style your organization follows. In today’s article, we’re going to talk about different MDM implementation styles and their benefits. We’ll also share a few tips to choose the most suitable MDM implementation style for your company so that you can increase the overall efficiency.
Part 1: Why MDM Implementation Styles Are Required?
Part 2: 5 Things People Wish They Knew About MDM Implementation Styles
Part 3: Selection Criteria for Master Data Management Platform
If you’re not familiar with the importance of an MDM implementation style, here’s what you need to know. MDM stands for Master Data Management. It’s basically a practice that businesses follow to ensure the accuracy, consistency, and uniformity of their master data.
Now, as per the current standards, businesses have the liberty to follow different approaches to implement MDM for their brand. Each of these approaches has merits of their own and are designed to cater to different brand objectives. This means if you choose the most appropriate MDM implementation style (after analyzing your business goals), you’ll be able to maximize productivity and avoid data redundancy.
So, let’s take a look at the four different MDM implementation styles that you could choose from to control master data in your organization.
If your organization relies on multiple data sources, implementing MDM with the Registry style will be the most suitable choice. With multiple data sources, the biggest challenge is to decide which one of them is accurate.
This is when Registry style implementation of Master Data Management comes into the picture. In this implementation style of MDM, data is fetched from all the sources and put on the hub. The MDM then runs multiple cleansing and matching algorithms to identify duplicate sources and retrieve the final version of the truth.
One of the major advantages of choosing the “Registry Style” MDM implementation is that it doesn’t update the sources’ data. This means even after evaluating the single version of the truth, you could still access every single piece of information from the original sources.
This MDM style is also beneficial for businesses that want to cut down on the overall expenditure. In saying that, however, the Registry MDM Style comes with its own set of limitations, which make it comparatively less reliable.
The consolidation style is similar to the registry style, with a single addition, i.e., the stewardship. Basically, after the MDM has run cleansing and matching algorithms on the data collected from sources, it is analyzed by humans to achieve more accuracy.
Adding the “human element” makes this MDM implementation style more reliable because the single version of the truth - also known as the golden record - could be achieved more effectively. Not to mention, humans could analyze the data with real-life experience and make better decisions (if needed).
Unlike the previous MDM implementation style, consolidation also offers real-time synchronization between the MDM and the original data sources. This means when the golden record is established, the MDM will automatically update the sources as well.
As compared to the “Registry Style”, the consolidation MDM implementation style is slightly more expensive. However, it’s still a great option for mid-sized organizations that want to maximize accuracy.
As the name implies, the Co-Existence MDM style is a type of implementation style where the MDM hub and the data sources could exist at the same time. As opposed to the previous two MDM styles, the golden record could be updated in both sources and the hub at the same time. This ensures real-time synchronization between the two entities, which further improves the overall efficiency of the system.
Moreover, in the co-existence style MDM implementation style, data is mastered within the sources themselves and then it’s synchronized with the central hub. This makes it easier for different assets to access the data and establish a more accurate single version of the truth.
The co-existence style is a great choice for businesses that are already running the Consolidation MDM style in their organization. All you need to do is add a simple loop to link the centrally controlled data back to the sources. Consequently, the implementation cost is quite low and you can achieve high accuracy.
The last MDM implementation style, that mainly large enterprises follow, is the Transaction or Centralized style. This is the most advanced MDM style where all the blunders are minimized as the entire data is moved to the center hub.
As a result, the hub becomes the individual provider of the data and all systems rely on the hub to get the data. The main advantage of the Centralized MDM style is its high accuracy and consistency. Since the hub is responsible for controlling and circulating the master data, you can expect that the golden record will be more accurate and all the assets will be able to access the same master data.
Now that you’re familiar with the four different Master Data Management styles, let’s understand how you can choose the most suitable style for your organization. As we mentioned earlier, choosing the best of all the four MDM implementation styles will mainly depend on your business goals and overall requirements. However, to help you decide more effectively, here are a few points that’ll make it easier for you to make the right decision.
If you’ve read this far, you already know that the implementation cost for each MDM implementation style is different. This means that cost will be a major deciding factor while choosing the best MDM implementation style for your organization. If you run a small business and have a limited number of data sources, you could choose the “Registry” implementation style. It has a lower implementation and maintenance cost, which means you’ll be able to implement it without exceeding the budget limit.
The next factor that’ll help you decide the right MDM implementation style is the total number of data sources in your organization. If you have extensive data sources and want to keep the original data, even after establishing the golden record, we recommend choosing the “Registry” style. However, if you have a limited number of data sources, but want to maximize the accuracy for better reporting and analytics, you could choose any of the other three implementation styles, based on your current budget.
If you’re planning to scale your business in the near future, you would want to choose between consolidation, co-existence, or transaction MDM implementation styles. Why? Because you could easily evolve these implementation styles according to your brand’s increasing requirements and goals.