Dreibelbis 00FM.qxd5/9/082:05 PMPage viiEnterprise MasterData ManagementAn SOA Approach to Managing Core InformationAllen DreibelbisIvan MilmanPaul van RunEberhard HechlerMartin OberhoferDan WolfsonIBM PressPearson plcUpper Saddle River, NJ Boston Indianapolis San Francisco New York Toronto Montreal London Munich Paris Madrid Capetown Sydney Tokyo Singapore Mexico

Dreibelbis 00FM.qxd5/9/082:05 PMPage viiiThe authors and publisher have taken care in the preparation of this book, but make no expressedor implied warranty of any kind and assume no responsibility for errors or omissions. No liabilityis assumed for incidental or consequential damages in connection with or arising out of the use ofthe information or programs contained herein. Copyright 2008 by International Business Machines Corporation. All rights reserved.Note to U.S. Government Users: Documentation related to restricted right. Use, duplication, or disclosure is subject to restrictions set forth in GSA ADP Schedule Contract with IBM Corporation.IBM Press Program Managers: Tara Woodman, Ellice UfferCover design: IBM CorporationAssociate Publisher: Greg WiegandMarketing Manager: Kourtnaye SturgeonPublicist: Heather FoxAcquisitions Editor: Bernard GoodwinDevelopment Editor: Songlin QinManaging Editor: John FullerDesigner: Alan ClementsProject Editors: LaraWysong, Elizabeth RyanCopy Editor: Bonnie GranatProofreader: Linda BegleyCompositor: International Typesetting and CompositionManufacturing Buyer: Anna PopickPublished by Pearson plcPublishing as IBM PressIBM Press offers excellent discounts on this book when ordered in quantity for bulk purchases orspecial sales, which may include electronic versions and/or custom covers and content particular toyour business, training goals, marketing focus, and branding interests. For more information, pleasecontact:U.S. Corporate and Government or sales outside the U.S., please contact:International [email protected] following terms are trademarks or registered trademarks of International Business MachinesCorporation in the United States, other countries, or both: IBM, the IBM logo, IBM Press, CICS, DB2,developerWorks, MVS, OS/2, RACF, Rational, Redbooks, Tivoli, WebSphere, z/OS, and z/VM. Java andall Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of MicrosoftCorporation in the United States, other countries, or both. UNIX is a registered trademark of TheOpen Group in the United States and other countries. Other company, product, or service namesmay be trademarks or service marks of others.

Dreibelbis 00FM.qxd5/9/082:05 PMPage ixThis Book Is Safari EnabledThe Safari Enabled icon on the cover of your favorite technology book means thebook is available through Safari Bookshelf. When you buy this book, you get freeaccess to the online edition for 45 days. Safari Bookshelf is an electronic referencelibrary that lets you easily search thousands of technical books, find code samples, downloadchapters, and access technical information whenever and wherever you need it.To gain 45-day Safari Enabled access to this book: Go to Complete the brief registration form Enter the coupon code 6YCG-LCUE-QIX3-64EQ-NIJ7If you have difficulty registering on Safari Bookshelf or accessing the online edition, please ry of Congress Cataloging-in-Publication DataEnterprise master data management: an SOA approach to managing core information/AllenDreibelbis . [et al.]. p. cm.Includes bibliographical references and index.ISBN 978-0-13-236625-0 (hardback: alk. paper)1. Database management. 2. Web services. 3. Computer architecture. I. Dreibelbis, Allen.QA76.9.D3E68 2008004.2’2—dc222008015422All rights reserved. This publication is protected by copyright, and permission must be obtained fromthe publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission inany form or by any means, electronic, mechanical, photocopying, recording, or likewise. For informationregarding permissions, write to:Pearson Education, Inc.Rights and Contracts Department501 Boylston Street, Suite 900Boston, MA 02116Fax (617) 671-3447ISBN-13: 978-0-13-236625-0ISBN-10: 0-13-236625-8Text printed in the United States on recycled paper at Courier in Westford, Massachusetts.First printing, May 2008

Dreibelbis 00FM.qxd5/9/082:05 PMPage xixForewordImeet with senior business and technical executivesaround the world, in both the public and private sectors, on a daily basis. CEOs, CFOs, CIOs, and line-ofbusiness executives alike are all facing incrediblepressures across all fronts. They need to create newshareholder value by improving both the top and bottom lines. They must improve customer service in theface of fast-moving global competition. They must mitigate risks inherent in basic business decision making andavoid fraudulent activities in their own operations. And,as if that isn’t pressure enough, they must also deal witha plethora of regulatory requirements.What they’ve come to find is that the availability ofinformation provides them with some relief from thesealmost incessant pressures—the sense of relief that comesfrom unlocking information and letting it flow rapidlyand easily to the people and processes that need it. Trusted information—complete, accurate,timely, insightful information—is delivered in the context of the task at hand.Take, for instance, one leading electronics manufacturer. By providing unified, timely product master data, the company was able to speed product introduction cycles by weeks andimprove the satisfaction of their distribution partners at the same time. An innovativeretailer has created an “endless aisle” to drive up in-store sales—even when it doesn’t haveproducts on hand. This innovation is enabled with a unified view of product data that spansboth the company’s own inventory and that of its distributors. In the case of customer masterdata, a 360-degree view of clients helped one financial services company avoid the risk ofoffering more credit cards to clients who were already in default with their existing creditxix

Dreibelbis 00FM.qxdxx5/9/082:05 PMPage xxForewordcard accounts. Master customer data also helped one telecommunications company capturecross-sell opportunities across its landline, wireless, and long-distance services. The sameproject was the foundation for improved customer service in the company’s call center andhelped to reduce customer churn. The possibilities are endless.Unlocking information and letting it flow rapidly and easily to the people and processesthat need it is easier said than done. Over the past 20 years or more, the IT industry hasfocused on automating business tasks. The result of this effort is a highly complex information landscape; individual automation projects have led to disconnected silos of information.Little trusted information exists—there are multiple versions of the truth. Redundancyreigns—both logically and physically. Few common definitions of key data elements exist orare shared across the enterprise. No common processes for managing and ensuring theintegrity of critical data domains exist. These facts define today’s environment. They blindthe business from the information it needs, add cost to the IT infrastructure, and slow theability of the business to move forward with confidence.Solving these problems is what Master Data Management and this book are all about.As you’ll learn, to successfully relieve today’s business pressures, Master Data Management(MDM) has to address needs that exist in several distinct but related dimensions. Master DataManagement must consider and possibly relate all kinds of Master Data. After all, productdata likely relates to some customer data, and perhaps to account data, or perhaps to someother data domain. Unifying these views could lead to more effective customer service.Effective Master Data must also support multiple application styles. Master Data may need tofeed an online, transactional ordering system, or perhaps a data warehouse needs Master Datato provide up-sell suggestions to a call center representative. Furthermore, decisions have tobe made about how to architect the Master Data Management implementation.The topic of Master Data Management may seem daunting, but it’s really no more dauntingthan the industry’s recent focus on Service-Oriented Architectures (SOA). As a matter of fact,the two topics, SOA and Master Data, are inextricably related. They are two sides of the samecoin. A process is only as good as the information it processes, and similarly, informationneeds to be tied to the context of some process to be of any value. So we must step up tothe Master Data challenge. By unlocking the silos of information created by the past 20 yearsof automation and providing a free flow of trusted information, we will put ourselves in aposition to deliver significant value to our organizations.I encourage you to take advantage of the opportunity this book provides to learn more aboutMaster Data Management. You’ll be learning skills you can use to relieve the pressure anddeliver more value to your organization. Your time will be well spent. Enjoy the experience.—Dr. Ambuj GoyalGeneral Manager, Information Managementof IBM Software Group

Dreibelbis 00FM.qxd5/9/082:05 PMPage xxiForewordHow does one build a contemporary “super city” that is bothtechnologically forward-looking and compatible with itsenvironment? The challenge is even greater when we builda “super city” that is built on the foundation of an existing metropolis.Clearly, architecture remains the key challenge in planning enterprise Master Data Management (MDM) infrastructure for the contemporary Global 5000-size enterprise. Experience-based blueprintsand architecture patterns are invaluable in such an effort.In our MDM research with very large-scale enterprises, analysts atthe MDM Institute have seen multimillion dollar ( / / ) projectsfail due to poor MDM architectural planning. Such failuresincluded economic failure caused by the inability to cost-effectively scale or political failurecaused by the inability to integrate the twenty-first century corporate supply chain.Inside this highly anticipated book, MDM practitioners will find architectural patterns presented as the nexus of seasoned enterprise architectural experience and early-adopter MDMoperational experience. Moreover, the authors have shown their deep experience in deliveringan essential guide for every MDM practitioner—from Enterprise Architect to MDM projectleadership. This book provides a key technical foundation for understanding the fundamentalMDM components and how they work together. As a bonus, the reader will benefit from clearextrapolations on how SOA implementations both benefit from and require MDM.Enterprise Master Data Management: An SOA Approach to Managing Core Information providesa vital reference architecture for all serious enterprise MDM practitioners.—Aaron ZornesFounder and Chief Research Officer,CDI-MDM Institutexxi

Dreibelbis 00FM.qxd5/9/082:05 PMPage xxiiiPrefaceWhat Is This Book About?Master Data Management (MDM) refers to the disciplines, technologies, and solutions that areused to create and maintain consistent and accurate master data for all stakeholders across andbeyond the enterprise. Enterprise Master Data Management: An SOA Approach to Managing CoreInformation explains key concepts of MDM, the business value of MDM, and how to architectan Enterprise Master Data Management Solution. The book is a comprehensive guide to architecting a Master Data Management Solution that includes a reference architecture, solutionblueprints, architectural principles, and patterns and properties of MDM Systems. The bookalso describes the relationship between MDM and Service-Oriented Architectures, and theimportance of data governance for managing master data. Figure 1 provides a summary of thebook’s chapters that are summarized in the following list.Chapter 1: “Introducing Master Data Management” describes the fundamentalconcepts of master data and MDM. We describe the key characteristics of a MasterData Management System and how the MDM System’s ability to manage masterdata provides benefits to the enterprise. We also introduce the reader to multipleMDM methods and implementation styles.Chapter 2: “MDM as an SOA Enabler” describes the relationship between MDMand Service-Oriented Architectures. We demonstrate how MDM and SOA worktogether to help in the achievement of business and IT goals related to managingmaster data, and explain why we view MDM as an enabler for any SOA-style solution.The chapter includes topics such as SOA concepts, SOA principles, service granularity, service composability, and information services.Chapter 3: “MDM Reference Architecture” describes the functional characteristicsof the Master Data Management Reference Architecture. We describe how to positionand design a Master Data Management Solution within an enterprise. We describexxiii

Dreibelbis 00FM.qxd5/9/082:05 PMPage xxivxxivPrefaceChapter 1IntroducingMaster DataManagementChapter 2Chapter 4Chapter 7MDM Securityand PrivacyCDI-MDMSolution BlueprintsChapter 5Chapter 8MDM as anSOA EnablerMDMArchitecturePatternsMDM IntegrationBlueprintsChapter 3Chapter 6Chapter 9MDM ReferenceArchitecturePIM-MDMSolution BlueprintsMDM and DataGovernanceFigure 1 Chapter Summary.the type of functionality required to deliver a Master Data Management Solution,identify the major architectural building blocks, and then demonstrate how thosearchitectural building blocks collaborate in the delivery of MDM functionality.Chapter 4: “MDM Security and Privacy” describes the role of security and privacy inan MDM architecture and deployment. We provide insight into developing an understanding of the value of and the risks to master data and then offer guidance for thetasks of selecting and applying the appropriate security controls. We then describe indepth the types of security services that provide the appropriate controls and howthose services can apply to the implementation of an MDM Solution.Chapter 5: “MDM Architecture Patterns” provides an overview of architecture patterns often encountered in MDM deployments. We describe in detail the architecture patterns that helped to shape the MDM Reference Architecture. Thearchitecture patterns encountered were either new architecture patterns, variationsof existing architecture patterns, or known architecture patterns that were appliedin the area of Master Data Management.Chapter 6: “PIM-MDM Solution Blueprints” introduces the concept of MDMSolution Blueprints; in this chapter, we explain the relationships between architecture patterns and business patterns for PIM-MDM solutions. The SolutionBlueprints are based on the MDM Reference Architecture. Based on specific business requirements for product information management, we describe a variety ofPIM-MDM Solution Blueprints for several industries and solution scenarios.

Dreibelbis 00FM.qxd5/9/082:05 PMPage xxvPrefacexxvChapter 7: “CDI-MDM Solution Blueprints” explains the relationships betweenarchitecture patterns and business patterns for CDI-MDM solutions. The SolutionBlueprints are based on the MDM Reference Architecture. Based on specific businessrequirements for customer data integration, we describe a variety of CDI-MDMSolution Blueprints for several industries and solution scenarios.Chapter 8: “MDM Integration Blueprints” provides further guidance on how tointegrate an MDM System into an existing IT landscape. We provide guidance anddescribe sample integration scenarios, such as integrating the MDM System with aData Warehouse and integrating an MDM System with an SAP application for theauthoring of data.Chapter 9: “MDM and Data Governance” explores the critical nature of data governance in Master Data Management, and how people, process, and technologywork together to leverage master data as an enterprise asset. We explore the criticalnature of data governance in Master Data Management and the direct and indirectroles that the architecture for the MDM Solution can play in enabling data governance.Who Should Read This BookEnterprise Master Data Management: An SOA Approach to Managing Core Information has content that should appeal to a diverse business and technical audience, ranging from the executive level to experienced MDM practitioners and especially those new to the topic ofMaster Data Management. Newcomers to the topic of MDM, and even SOA, will certainlybenefit from the chapters that introduce MDM, that explain security and privacy, and thatshow how MDM complements the development of a SOA.Readers with a strong technical background, such as Enterprise Architects, System Architects,and Information Architects, should enjoy reading the detailed content that provides technical guidance for implementing Master Data Management. Technical guidance covers abroad range of topics—implementation styles, methods of use, SOA, security and privacy,architecture patterns, and data governance—which are then all brought together into theMaster Data Management Reference Architecture and a set of solution blueprints that spanCDI-MDM, PIM-MDM, and MDM Integration Blueprints.Executives trying to gain an understanding of Master Data Management, and even thosewho are already in the process of deciding how to proceed, will benefit from the contentthat introduces Master Data Management, data governance, and the solution blueprints.What You Will LearnThis book is a comprehensive guide to understanding (1) the importance of Master DataManagement, (2) the need for an MDM System, and (3) methods of architecting a MasterData Management Solution. We cover a wide range of topics in our discussions of the use ofdisciplines, technologies, and solutions to implement Master Data Management. Readers of

Dreibelbis 00FM.qxd5/9/082:05 PMxxviPage xxviPrefacethis book have the opportunity to increase their knowledge about a broad range of topicsrelated to MDM—from both a business and a technical perspective. Readers will learn theanswers to the following questions about Master Data Management, which constitute itscore concepts: What is Master Data Management, and why is there a need for managed master data? How can an MDM System provide a consistent understanding and trust of masterdata entities? What is the relationship between SOA and MDM, and how can MDM enable theimplementation of a SOA solution? How can a security architecture to maintain the security and privacy of master databe implemented? What are the core architectural principles, properties, and patterns for MDM Systems? What data governance is critical for the management of master data?In addition to learning MDM’s core concepts, the reader will understand how they are incorporated into the design for a Master Data Management Solution. The MDM ReferenceArchitecture provides the reader with a reference architecture that describes the functionalcharacteristics of an MDM Solution implementation within an enterprise. MDM IntegrationBlueprints, PIM-MDM and CDI-MDM, and Solution Blueprints then provide the reader withknowledge of how to use the reference architecture and architecture patterns to implementa specific solution to solve a specific set of business problems.How to Read This BookThere are several ways to read this book. The most obvious way to do it is to read it coverto cover to get a complete end-to-end picture of Enterprise Master Data Management.However, the authors organized the content in such a way that there are four basic readingpaths through the book. Figure 2 depicts the following two reading paths: To understand