Master Data Management and Governance

DataMicrosoft SharePoint 2007 and then 2010 triggered rapid rates of adoption of collaboration and document management systems. Soon many organizations painfully realized the importance of Information Governance. Without it, the implementations quickly became digital landfill, just replacing but not improving shared drives problems. Often departments started building their own sites, with their own branding, cumbersome and unmanageable security structures, own metadata, poor or entirely missing taxonomies, leading to state of mess where users couldn’t find anything. Even worse, duplication of documents led to confusion, the business decisions based on outdated data, the storage size and backup costs exponential increase, and deterioration of systems performance. Worst of worst, since information was not purged or when it was, it happened randomly, this exposed the organizations to e-Discovery related legal risks and litigation costs.

To address these problems, organizations needed to develop set of aligned governance constructs within an overall Information Governance Framework. Among those constructs are Information Security Governance, Information Architecture, Data Quality, Records and Retention, Master and Reference Data just to mention few. I think that the latter plays very significant role and should be done early to get information under control.

So how Master Data Management could be defined? It is a set of processes, tools and organizational structures, where business and IT work together to address issues likes uniformity, accuracy, stewardship, and consistency and accountability of the organization’s data. This leads the data to become authoritative, secure, reliable and sustainable.  But not all data should get the same level of attention.  Master data is a ‘key’ data gathered and used by multiple departments during operations of the business like for example – customer data, information about products, employees, materials and so on. Master Data must contain most accurate and authoritative data available, and serve as single source of truth across the organization. Lot of organizations however find it difficult to secure the necessary funding and support from senior management, due to difficulty with measurement of return on investment.

Earlier this year, Gartner published some predictions related to Master Data Management governance and impact on organizations by end of 2016:

–          Only 33% of organizations that initiated MDM will be able to demonstrate its value. The difficulty here is that such initiative must present complete approach and be an ongoing process rather than once-off isolated project. This means that there needs to be consensus among senior executives and obtaining this is often quite challenging.

–          Spending on information governance must increase fivefold to be successful – and as per point above, needs to include other disciplines within the Information Management Governance Framework like quality management, lifecycle and retention, privacy and security. This will lead to building larger teams focusing on the governance and higher costs.

–          20% of CIOs in regulated industries will lose their jobs failing to implement information governance. IM governance is a construct that allows organization for compliance with regulations, and the primary responsibility for this lies with CIO and Legal Counsel.  Breaches in information security, leaks of confidential information, and breaches in privacy will lead to reputational and financial damage to those organizations.

The good news is that lot of organizations already recognize these risks, as according to Gartner, last year they have seen 21% increase in spending on MDM.


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