What is master data and what is Master Data Management (MDM) is a recurring subject on this blog as well as the question about if we need the term master data and the concept of MDM. Recently I read two interesting articles on this subject.
Andrew White of Gartner wrote the post Don’t You Need to Understand Your Business Information Architecture?
In here, Andrew mentions this segmentation of data:
- Master data – widely referenced, widely shared across core business processes, defined initially and only from a business perspective
- Shared application data – less widely but still shared data, between several business systems, that links to master data
- Local application data – not shared at all outside the boundary of the application in mind, that links to shared application and master data
Teemu Laakso of Kone Corporation has just changed his title from Head of Master Data Management to Head of Data Design and published an article called Master Data Management vs. Data Design?
In here, Teemu asks?
What’s wrong in the MDM angle? Well, it does not make any business process to work and therefore doesn’t create a direct business case. What if we removed the academic borderline between Master Data and other Business Critical data?
The shared sentiment, as I read it, between the two pieces is that you should design your “business information architecture” and the surrounding information governance so that “Data Design Equals Business Design”.
My take is that you must look from one level up to get the full picture. That will be considering how your business information architecture fits into the business ecosystem where your enterprise is a part, and thereby have the same master data, shares the same critical data and then operates your own data that links to the shared critical data and business ecosystem wide master data.