What is Master Reference Data?
Master Reference Data is a small set of stable, slow-changing reference data that is not only shared by all business teams and applications, but also linked to other traditional master data such as products or customers. Examples of some categories of Master Reference Data include geographies, territories, and customer categories.
Reference data looks simple, but its governance is complex
At first glance, Master Reference Data looks too simple to worry about. Managing lists of codes and nomenclature for things like countries, currencies, categories or organization units seems like it should be pretty straight-forward. But reference data is actually highly complex to manage because:
- It is shared by almost 100% of your business teams and IT applications. Master Reference Data is used by the entire business, from finance and HR to operations and sales and marketing. But when that data is under everyone's control, it is under no ones. Take regions and countries for instance: each business unit defines its own regions (for example, even here, each day we find a new definition for what constitutes Europe) and manages its own country hierarchy. With such fundamental inconsistencies in the definition of Master Reference Data, consolidated reporting is not going to provide an accurate reflection of the big picture.
- It needs to be authored and approved in a central solution. Some master data, for example, "Customer", is created within existing IT applications. Reference data, however, needs to be authored and shared by all business users from a central point of governance with strict validation rules. Without a real Reference data solution, end users rely on spreadsheets that create more complexity.
Top MDM features for Master Reference Data Management
When it comes to collaboration and governance, the requirements for Master Reference Data Management, the smallest of the MDM building blocks, are probably the most sophisticated. To be efficient, the MDM solution must address critical business needs:
- Super-easy user experience: While some master data is managed by data stewards, master reference data can be authored (or just viewed) by any business user. Therefore, the MDM solution must provide a nearly self-training user interface. Learn more.
- Highly collaborative workflow: Change management and approvals are key for slow-changing reference data. The MDM solution must provide collaborative workflow for all business users. Learn more.
- Version control: One of the key issues in Master Reference Data management is the ability to manage the past, present and future at the same time. You need to maintain the current, validated data consumed by all applications; keep track of the past for reporting or regulatory compliance; and be able to work in the future on new data and hierarchies. Learn more.
Start small in the Cloud
You do not need to embrace a large-scale MDM solution in order to take advantage of the core MDM features outlined above. smartdatagovernance.com is an MDM solution in the cloud. It provides an ideal vehicle for managing Master Reference Data because:
- Master Data Reference is not highly confidential, so managing it in the cloud is rarely controversial, even for large organizations.
- It doesn't require any hardware or software and its low monthly subscription cost is geared to quick, first-time MDM initiatives.
- At any time, it can be deployed in-house for larger, more sensitive MDM projects.
Master Reference Data Management benefits all your MDM initiatives
A Master Reference Data Management initiative is the smart way to introduce MDM to your organization. The benefits are clear:
- Master Reference Data is the foundation of all other master data. A unique, clean reference data definition will allow you to easily link new master data domains, without complex data integration or data duplication. For instance, you would be able to attach a comprehensive product master to geographies, market segments or currencies.
- It is the right place to get started to protect your investment in major MDM initiatives such as CDI. Getting certain foundation data right, such as customer categories, regions, and sales territories is critical to make sure large-scale projects aren't put in jeopardy by inconsistent Master Reference Data.
- Get business user adoption quickly. The average project time for Master Reference Data management is 3 to 4 months. You can deliver a valuable MDM domain to business users, and start getting adoption, before addressing more complex MDM projects.
See how easy getting started can be:
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