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Embracing MDM in SOA and BPM implementation

IT fragmentation is the rule today. Each business function or department in organizations has their own definition of business processes and master data. Like any master data, Customer master data is typically stored in an array of systems, among them sales force automation (SFA); customer relationship management (CRM); and enterprise resources planning (ERP). Every system has its own definition of the business data designed to support its own features and functions. However, cross department processes such as order to cash, supply chain, procure to pay define how an enterprise works to build customer value. These are the processes that are inhibited by current IT fragmentation. These are the processes that break down due to the different definition of the same business data across application boundaries. This heterogeneity means information is inconsistent in different parts of the organization, and leads to complications in exchanging and synchronizing information.

Organizations have service oriented architecture (SOA) and business process management (BPM) initiatives to rapidly deploy cross department processes. However, SOA and BPM do not deal with the fragmented data problem directly. These will enable companies to rapidly deploy composite cross department processes across these applications but these new processes will "break" as services will need a common definition of master entities or master data to effectively communicate.  

Given such a strategic role of MDM, it should not be looked purely as IT initiative; a bias carries over to many MDM vendors and IT departments within organizations.  Thinking of MDM to cleanse and aggregate data is a shortsighted approach. Any data cleansing or data integration exercise will soon be obsolete because new data is constantly being introduced and existing data is being modified. Further, clean augmented quality data for a departmental application will not bring the full advantage to the organization. SOA and BPM can propagate and expose the master data to the cross department processes. Together, MDM, SOA and BPM can create cross department processes that work to build customer value. 

Would be interested in your throughts and comments ..........

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