master data management - edm · pdf filemaster data management the discipline of...
Post on 13-Feb-2018
225 Views
Preview:
TRANSCRIPT
Master Data ManagementThe Discipline of Operationalizing Data Quality and Data Governance
InfoSpherePowered by
Software
Most major financial services firms are pursuing strategies to better manage the data
that flows throughout these complex institutions. Data is produced by every business
function across the enterprise, supports operational processes, and is used for all forms
of reporting. In many ways, data is as fundamental to most financial services firms as
the financial assets that flow throughout them. Many firms are now looking at best
linchpin connecting major business objectives across banks, insurance companies, and
leading firms operating throughout the capital markets. Enterprise data management
programs are being established or refined, and most firms are focused on data quality
and data governance.
While the focus on data quality and data governance is common, so also are many of the
problems across the industry. In a recent study by IBM, only 39% of banking executives
surveyed indicate that their institution was effective at collecting, aggregating and storing
data. Working across many institutions, our teams at Kingland have seen this problem
surface most often as separate systems containing the same types of data with a variety
of operational, IT, and business stakeholders all involved. These systems range from
separate security master files, client information files, and account masters to compli-
ance and reporting warehouses and counterparty databases. The challenges banks and
capital markets firms are having just using common data across the multitude of
systems is shining a light on the need for data quality and data governance. Given the
risk and regulatory requirements, much of the attention is on the foundational finan-
cial services data types: securities data, business entity data, and hierarchy data.
MASTER DATA MANAGEMENT
practices for managing data as
an asset.
Data as an asset is not a new
idea, but given the expansion of
global regulation and board level
focus on risk management
practices, data is emerging as a
© 2011 Kingland Systems Corporation
Data at the Core of the Enterprise
The Discipline of Operationalizing Data Quality and Data Governance
“...from separate security master files, client information files, and account masters to compliance and reporting warehouses and counterparty databases. ”
2
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
Integrate Manage DistributeMultiple Sources
anAuthoritativeView
toMultipleSystems
Integrate Master DistributeMultiple Sources
anAuthoritativeView
toMultipleSystems
Master Data Management (MDM) has evolved over the last ten years and has
become an essential component in the financial services data quality and data gover-
nance strategy. However, MDM is often misunderstood as just a technology or as tools
to aggregate data to create a “golden copy”. MDM is not just a technology; it is a series
of practices or an approach for managing data, improving quality, and implementing
components of data governance using technology.
While data aggregation is an important capability, MDM also provides reliable data to
systems and applications throughout the enterprise, enabling them with various forms of
system to system or application integration. Core to financial services, MDM enables
firms to integrate, master, and distribute reliable securities data, data about clients and
counterparties, and the webs of business and market relationships.
Providing reliable, mastered data to downstream risk, operations, compliance, trading,
and other critical systems enables firms to implement data governance and quality
practices that better align the enterprise. Data-driven alignment across business units
• increases the accuracy and responsiveness of risk management practices
• improves compliance processes
• enhances enterprise wide reporting (both internal and regulatory)
“MDM is not just a technology; it is a series of practices or an approach for managing data, improving quality, and implementing components of data governance using technology”
MDM – Technology and Approach
© 2011 Kingland Systems Corporation3
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
MDM Benefit Data Quality Data GovernanceApplying data standards to mastereddata used across the enterprise
Assigning ownership of data to “datastewards” with tools to manage the data
Eliminating the same data managed inmultiple locations (silos of data)
Systemically controlling datainaccuracies and minimizing duplication
Supporting enterprise applications withreliable, governed data
Focusing and optimizing datamanagement efforts to reduce costs andincrease business results
Plus, improvements in data quality help business units reduce costs associated with
managing data exceptions and expand functions through the use of the mastered data.
At a more practical level, the table below outlines many of the direct benefits of MDM
that support both data quality and data governance.
Consider the following; most compliance processes such as KYC or client on-boarding
are focused on two appropriate priorities: 1) adhering to the regulation and 2) following
specified processes put in place, not managing data. Many securities setup or
origination processes are focused on getting securities or products in place for trading or
other business needs, not managing data. Using MDM to support the data processes
behind the scenes from these critical compliance functions can be a non-invasive way to
build and manage the data asset by leveraging existing functions. MDM also improves
the efficiency of core business processes by eliminating re-work, duplicate work, and
improving the entire information supply chain. Plus, through MDM, the institution is now
managing data related to the clients, hierarchies, or securities of interest that can be
leveraged by other business units across the enterprise.
Applying MDM: Securities, Business Entities, and Hierarchies
“...through MDM, the institution is now managing data related to the clients, hierarchies, or securities of interest that can be leveraged by other business units across the enterprise.”
© 2011 Kingland Systems Corporation4
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
Using Kingland’s MDM approach of Integrating, Mastering, and Distributing, data from
the compliance processes mentioned above would be integrated into an MDM system.
If a client, counterparty, or security exists elsewhere in the enterprise, the management,
or “mastering” function of MDM enables higher quality data for this respective record
and if the record is new, it’s now available for use by other processes and business
units. Finally, as the compliance processes require specific data, the MDM system can
distribute the required client, counterparty, security, or even hierarchy record to the
requesting processes.
At Kingland, we have been managing financial services reference data for more than
20 years and have developed and implemented MDM strategies on some of the largest
data projects in the industry. As highlighted in the Integrating, Mastering, and Distribut-
ing approach to MDM, there is a pattern and set of disciplines that work, which are
embedded into the features and functionality of our 360 Data Enterprise Hub MDM
platform. Partnering with IBM and leveraging industry-leading MDM Server technology,
Enterprise Hub is an extensible, rules-driven, MDM platform that enables data quality to
360 Data Enterprise Hub MDM Platform
“Enterprise Hub is an extensible, rules-driven, MDM platform that enables data quality to be managed and monitored throughout a variety of features optimized for securities, client and counterparty, and hierarchy data.”
Enterprise Hub
Work ConsumptionStaging
Courier Sentry
Clarity UI
Integration
Integrator
Services
OrganizationData Sources
SecuritiesData Sources
HierarchyData Sources
Rules
© 2011 Kingland Systems Corporation5
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
be managed and monitored throughout a variety of features optimized for securities,
client and counterparty, and hierarchy data. Additionally, the use of an extensive
services layer of more than 1,000 services enables enterprise integration of mastered
data with controls for security, privacy, data lineage, and many other critical features.
Expansive data stewardship capabilities enable institutions to institute data governance
through segregation of duties and allocation of data work across different operations
across the business or even around the globe.
From a data quality perspective, Enterprise Hub enables true enterprise management of
the foundational data of the financial services industry – securities, clients and counter-
parties, and hierarchies. Instituting quality controls as data is integrated, as data is
cleansed, managed, and enriched, and controlling quality as data is distributed to
systems and applications around the enterprise is part of the power of Enterprise Hub.
Additionally, a 360 Data Master File solution also can be used to outsource data quality
functions through managed data services providing 99% accurate data specifically on
the securities, clients and counterparties, and hierarchical relationships that are impor-
tant for an institution’s unique business and data quality strategy.
Enterprise Hub is also an effective data governance tool. Technology enabling data
lineage and rules of visibility to control what data is persisted and which users and
applications are able to use mastered data are core data governance practices inherent
in how Enterprise Hub is driving value. Additionally, implementing data standards in an
Master FileMultiple Data
SourcesAutomatedValidation
ProfessionalValidation
Process and Business Rules
© 2011 Kingland Systems Corporation6
“...a 360 Data Master File solution also can be used to outsource data quality functions through managed data services providing 99% accurate data…”
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
MDM environment and providing interactive feedback to data stakeholders around the
enterprise also flexibly supports the data governance models different enterprises
choose to implement. Enterprise Hub and its underlying IBM software support all forms
of MDM implementation including consolidation, coexistence, transaction, and registry,
providing ultimate flexibility for true enterprise data management strategies and evolving
data governance needs.
Moving ForwardMany companies are looking at MDM, data quality, and data governance. Kingland’s
360 Data suite of MDM solutions including Enterprise Hub and Master File can be
powerful tools in the financial services data quality and data governance toolbox.
Whether a firm is just getting started in data quality or data governance or a few years
down the road, we recommend a few very specific suggestions to begin to manage data
as an asset and improve risk management and compliance practices.
• Identify business units or enterprise wide programs that have data
related goals; determine the data governance priorities and determine
the data quality problems that exist
• Establish a strategy for securities, clients and counterparties, and
hierarchies; all of the business units need this data
• Evaluate MDM from multiple perspectives; think approach and
technology options; think business impact and IT impact
© 2011 Kingland Systems Corporation7
MASTER DATA MANAGEMENT The Discipline of Operationalizing Data Quality and Data Governance
© 2011 Kingland Systems Corporation1401 Sixth Avenue SouthClear Lake, IA USA 50428
(641) 355-1000
For More InformationTo learn more about Kingland Systems’ MDM solutions, please contact us at 360data@kingland.com, or visit kingland.com/360data
Kingland Systems is IBM’s leading Master Data Management (MDM) so�ware business partner for the �nancial services industry. Kingland’s 360 Data MDM solutions, Enterprise Hub and Master File, powered by IBM InfoSphere So�ware, enable the management of securities, client and counterparty, and hierarchy data, all critical data domains for the industry’s risk management and regulatory needs. With more than 20 years of experience providing solutions to some of the industry’s largest institutions, Kingland’s CMMI-certi�ed teams produce mission critical risk, compliance, and data applications and strategies that support hundreds of thousands of professional users across more than 140 countries.
Kingland Systems
top related