helping build the smart business Using Master Data in Business Intelligence Colin White BI Research March 2007 Sponsored by SAP
Using Master Data in Business Intelligence BI Research T ABLE OF C ONTENTS THE IMPORTANCE OF MASTER DATA MANAGEMENT 1 What is Master Data Management? 2 The Business Benefits of MDM 2 The Ultimate Goal: Enterprise MDM 3 Business Area MDM versus Enterprise MDM 5 IMPLEMENTING MDM 6 Operational Master Data 6 Business Intelligence Master Data 6 Where Should Historical Master Data be Managed? 8 An Evolutionary Approach to MDM 9 THE SAP NETWEAVER MDM SOLUTION 11 SAP Support for Master Data Management 11 Using SAP NetWeaver MDM 13 Brand and product names mentioned in this paper may be the trademarks or registered trademarks of their respective owners.
Using Master Data in Business Intelligence BI Research 1 T HE I MPORTANCE OF M ASTER D ATA M ANAGEMENT The current industry focus on master data management (MDM) creates the impression that MDM is a brand new technology, but this not the case. Companies have been building their own custom-built business transaction (BTx) solutions for managing operational master data for many years, and business intelligence (BI) applications and their underlying data warehouses have been providing a single view of key master data entitles such as customers and products for analytical purposes for some time. What is new about MDM is that enterprises are beginning to realize that master data needs to be managed and integrated outside of the traditional business transaction and business intelligence environments, and then used to supply BTx and BI applications with the master data they need (see Figure 1). Another important development in MDM is that vendors are providing packaged solutions that ease and reduce the effort involved in deploying an MDM environment and its associated applications. This paper reviews the current status of MDM, and offers suggestions for planning, building and deploying an MDM environment. The paper proposes an evolutionary, rather than revolutionary, approach to MDM, and examines how the MDM environment can be used in conjunction with BI applications and an underlying data warehousing environment to improve the decision making process. It also presents an overview of the SAP MDM solution and how it supports many of the ideas presented in this paper. Business transaction applications & data stores Business intelligence applications & data stores Master data management applications & data stores Master data should be managed separately from business transaction and BI systems Figure 1. The three types of IT processing
Using Master Data in Business Intelligence BI Research 2 W HAT IS M ASTER D ATA M ANAGEMENT ? Master data is reference data about an organization’s core business entitles. These entities include people (customers, employees, suppliers), things (products, assets, ledgers), and places (countries, cities, locations). The applications and technologies
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