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Master Data Management (MDM) ARKANSAS BLUE CROSS BLUE SHIELD (501) 396-4160 Tuesday 9/25, 8:40 - 9:20.

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Presentation on theme: "Master Data Management (MDM) ARKANSAS BLUE CROSS BLUE SHIELD (501) 396-4160 Tuesday 9/25, 8:40 - 9:20."— Presentation transcript:

1 Master Data Management (MDM) ARKANSAS BLUE CROSS BLUE SHIELD (501) Tuesday 9/25, 8:40 - 9:20

2 Biography Robert Fox - Data Architect, Arkansas Blue Cross Blue Shield 17 years of data architecture and warehousing experience in the finance, telecom, and health insurance industries. Installed over 50 data warehouses worldwide, some loading more than 4.5 terabytes of new transactional data per day. Guest lecturer in information management masters degree programs at 3 universities. Speaker at national conferences for Oracle, Fidelity, and MDM-CDI. 2

3 Abstract – MDM is bigger than you think Master Data Management (MDM) is critical to effective managing the information assets of your company. Unfortunately, however, the meaning of the term Master Data Management has become more limited in scope over time. To understand the full scope of MDM, you must ask yourself two questions: 1.What is master data? 2.What all is involved in managing it? How you answer these two questions determines whether your MDM program is a departmental or enterprise solution, and whether you are managing the information or managing a process. This presentation will propose a framework for MDM that is broad in terms of both data and functionality. 3

4 4 Why is Information Important? The Evolution of Competition 1.The Land Grab Acquiring unclaimed customers Investment in infrastructure, name recognition, and geographic territory 2.The Killer App Stealing customers from the competition by offering new and better products and services Investment in software development 3.The Information War Stealing and retaining customers from the competition by knowing more about the customer and giving them individually customized treatment Investment in business intelligence, customizable offerings

5 First: What is Master Data? 5 App A Application-specific, non-duplicated, non- shared data Data duplicated in multiple apps Other Data shared with enterprise App BApp CApp Z … There seem to be three different definitions: 1.Master Data is all the data, everywhere. 2.Master Data is just the data that is duplicated in multiple applications. 3.Master Data is any data that is exposed outside of an application, whether it is duplicated or not.

6 Second: What does it mean to manage data? 6

7 7 First Generation IT Architecture Business Logic CustomerReporting User Interface … Product Data Application A Business Logic CustomerReporting User Interface … Product Data Application B Business Logic CustomerReporting User Interface … Product Data Application Z … Monolithic applications with proprietary, embedded data Custom point-to-point integration Very little ability to establish enterprise architecture

8 8 Monolithic Custom Application Modular DB Data Access Business Logic Presentation DB Server 3 Tier Client/Server App Server DB Data Access Business Logic Client Presentation Client 5 Tier SOA Web Server Presentation DB Server App Server DB Data Access Services Business Services Integration Bus The Evolution of Data Architecture Custom Data

9 Effective MDM cannot be a component of application development IT ApplicationDevelopment TechnologySystems Information Management IT ApplicationDevelopment TechnologySystems Traditional Location of Information Management Responsibility Emerging Location of Information Management Responsibility 2 Make sure your MDM program has the authority to be effective 9

10 10 Three legs on the IT stool Profitability Now Investment for the Future Financial View Business View Customer Value Operational Efficiency Strategic Planning IT View ApplicationInformationTechnology (Where?)(What?)(How?) Increase RevenueReduce ExpenseGrow the Company The goal of IT is to support the business. The goal of the business is to make money.

11 MDM Components 11

12 Customer Data Integration (CDI) 12 App A App B App C CDI WH 1. Analytical CDI 2. Synchronization CDI App 3. System of Record CDI

13 MDM Components: Enterprise Logical Data Model PartyClaimProduct Member Provider Clinic Claim Diagnosis Procedure Drug Name Demographic NPI Specialty Location Risk Header ServiceLine Adjustment Payment DB Design SOA Services Mapping Sources Defining System of Record Define Stewards Global Dictionary Standard Terms Document Bus. Relationships

14 Data Standards No duplicate data SoA same as SoR unless proven untenable Only one warehouse All data is owned by the enterprise, not individuals or departments Data storage and transmission must comply with security standards Services used by multiple applications must use data structures derived from the enterprise data model All data structures must be documented All new data structures must be derived from enterprise data model Data quality should be addressed at the point of entry into corporate network Information should be as accurate and current as possible Data access should always be directed to the SoA The data model should drive the choice and architecture of applications, and should be based in turn on business requirements Any exceptions should go through Data Governance

15 Dimensions of Data Quality for an Analytical Repository INTEGRITY – does the data accurately reflect the source system? VALIDATION – is the data valid for the field? VERIFICATION – is the data actually true? BALANCING – does the data compare to other systems (i.e. GL)? AUDITING – Are there outlying values? 15

16 16 Project Pipeline Software Development Life Cycle (SDLC) Business Requirements Data Quality Architectural Approach Resource Assignment Technical Design Design Review Unit Testing/ QA Testing Code Review System/User Testing Implementation Escalation Process Project Process Project Supervisors Senior Leadership Team Executive Sponsor Standards Review Board Standards Committee 4 Develop an SDLC and infrastructure to support it Development Waiver Process Executive Sponsor

17 17 DATA KNOWLEDGE DECISION/ACTION INFORMATION BUSINESS INTELLIGENCE Customers, accounts, inventory, payments, activity, products… Profitability, Churn Propensity, Customer segment… Recommend product X, sign up for ePay, Offer free upgrade… RESPONSES Business Intelligence: Closing the loop

18 18 Maturity Model For Business Intelligence Enterprise Reporting Modeling, Scoring, and Segmentation Batch Campaigns 5 Real-Time Decisioning 3 Enriching with 3 rd -party data

19 Summary Figure out what Master Data Management means in your organization Think larger than the warehouse. – Make sure your program is empowered with authority to be effective within the enterprise. – Develop a functional area framework and assign responsibilities Develop efficient MDM strategies for each functional area: Software development process, standards and waivers, aging and archiving, data quality, data delivery, security, etc. Always remember that you work for the business! 19

20 20 Questions?

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