As we've seen, an MDM solution can incorporate some sophisticated automated functions to assist in delivering master data to the business. However, technology alone cannot ensure the success of an MDM program. Processes must be followed in order to ensure that the MDM solution doesn't fall into the same trap that required its creation in the first place. Data Governance is the method for ensuring this—a framework that defines how master data can be used within the organization.
The idea behind using data governance for MDM is to ensure that the use of master data follows specific rules, policies, and procedures that tie in with the organization's overall strategic objectives. The rules that are set in place typically cover the following areas of the MDM program:
Data ownership—Defines who has overall responsibility for a given master data entity.
Change management—Defines the approval process for changes to the use of master data, or changes to the MDM technology solution itself.
Data access—Who can access the master data? This will include procedures for adding new users to the MDM solution.
Data modification—A set of rules that govern how inserts, updates and deletes can happen for master data. This may also dictate what is to happen in the event of an update conflict.
Data quality standards—Defines and monitors the overall data quality standards for the MDM program.
Disaster recovery—A set of procedures for defining how the master data repository is made available in the event of a disaster. As the MDM program gains traction in the organization, this is a key area to address, as the MDM solution itself becomes a key operational system.
Data privacy and retention—States how confidential and sensitive data is managed and how long data is retained.
The physical deliverable for data governance in MDM is a set of documents that clearly define the above rules and standards. These documents should be made available to the relevant people in the organization, according to the organization's standard document management policy, for example, SharePoint.
MDM policies and procedures are set up and enforced by a group within the organization known as the Data Governance Board. The Data Governance Board is working group within the organization that will meet on a regular basis to make decisions according to the policy. For example, the organization may be developing a new in-house Marketing system that will assist with campaign management. The stakeholders of this system wish to take a feed of Customer data from the MDM database, which must be approved via the Data Governance program.