[A Strategic View of BI & EPM – Part 4 of 6]

Are you part of an organization that is large and complex enough that delivering reliable and actionable information requires various processes to access, validate and transform data before it is usable?  If you answered “yes”, then an organized effort for Data Governance and Master Data Management are important for you to ensure data integrity, quality and accessibility.

In a recent Analysis Team blog post How Good Master Data is Fundamental for Great Analytics we explored why good Master Data is critical to enable high-impact analytics and reporting.  In this article we consider why Data Governance and Master Data Management are essential to maintain those capabilities at an effective level.

Master Data is the framework that defines, describes and organizes data.  The entire organization should have a shared acceptance of this framework including names, hierarchies and attributes that enable consistent reporting and analysis.  Master Data Management (or MDM) refers to the enterprise-wide ability to manage data and structures consistently, within a common framework, using appropriate processes and software.

Data Governance refers to the overarching regime to oversee data and its availability, usability, integrity, structure, and security.  For effective oversight, decision-making authority and process must rest with a body that considers the business impact of all data-related issues.  This team needs strong leadership and open access to both the business and technical sides of the organization. Its role includes reviewing potential changes to data structures and organization to consider the overall impact on the enterprise.

Strong governance and management enable an enterprise to confidently report, analyze and plan.  Making decisions and managing performance should focus on business issues without needing to question underlying data quality or the meaning of performance metrics.  For a growing and dynamic organization, this strong foundation is essential to enable the business to move forward.  Key benefits of these activities include data consistency, speed and accessibility that enable robust analytics, better management decisions and improved business performance.

In contrast, a business with weak Data Governance and Master Data Management can find itself questioning information and decisions, hindering the ability to manage growth and change.  Such issues can erode the ability of leadership to confidently steer the ship.  Data definitions may become inconsistent, fragmentation of data may occur, and unproductive “work-arounds” with manual reconciliation and validation activities may proliferate.

So how do effective organizations implement good practices?  The first step is recognizing that data and information are strategic assets that require care and nurturing to enable more effective business management.  High performing companies have leadership, resources and authority behind these efforts.  Enabling tools can include specialized software such as Oracle Data Relationship Management (DRM), a powerful application that allows enterprises to manage master data centrally and consistently.  These businesses typically maintain a strong commitment to data management and governance practices by continuing to invest in this function.

Has your organization invested sufficiently in Data Governance and Master Data Management?

Read other articles in this series:

Part 1 :  How Can BI & EPM Help You Build a Performance Edge?

Part 2 :  Who Needs a BI and EPM Strategy?

Part 3 :  How Can a Project & Technology Roadmap Keep Your BI & EPM Strategy On Track?

Part 5 :  How Can Aligning Reporting and Metrics Improve Enterprise Performance?

Part 6 :  How do you Build and Sustain Best Practices in BI and EPM?