Tag: Implementation

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How active data governance differs from passive data governance

an image featuring two contrasting street signs. One sign symbolizes "Active Data Governance" while the other sign represents "Passive Data Governance"

Active vs passive governance

Active data governance is a modern, agile approach that focuses on supporting the people in your organization who work with and create data.

Active data governance means data verification happens before data is entered into the system, typically as soon as the data is collected. This helps ensure the veracity of data and that data quality meets the standards of the organization.

Active data governance also ensures that data meets quality standards as soon as it’s added to any accessible business database.

In the context of Customer Master Data Management (CMDM), active data governance plays a crucial role as it ensures the accuracy, consistency, integrity, and security of an organization’s master data. Here’s why active data governance is so important in CMDM.

Pretectum CMDM does this at three levels, first through the data entry screens, through bulk imports, and API interactions. The key to data verification is the way that you set up your customer master data schema.

Active customer master data governance ensures the accuracy of Master Data, establishing business data rules and processes for data quality management, and defining standards, validation techniques, and guidelines for data entry.

By enforcing these standards, organizations can ensure that customer master data is accurate and reliable.

Active customer master data governance promotes consistency in Customer Master Data by providing guidelines for data standardization, naming conventions, and business rules. By establishing common data definitions and formats, data governance ensures that master data is consistent across different systems and departments.

This approach maintains the integrity of customer master data by defining roles, responsibilities, and access controls to ensure that only authorized individuals can access and modify master data. By implementing data governance practices, organizations can prevent unauthorized modifications and data tampering, and protect against data corruption. Pretectum CMDM achieves this through a matrixed Role Based Access Control (RBAC) model.

Active customer master data governance addresses the security of your customer master data through established protocols for data protection, privacy, and compliance with regulatory requirements. Data governance ensures that sensitive information is appropriately secured, and access to master data is controlled based on user roles and permissions.

Active customer master data governance also facilitates improved decisions since customer master data serves as the foundation for strategic customer portfolio business decisions. By implementing data governance practices, organizations can improve data quality, consistency, and integrity, providing a reliable basis for analysis and decision-making, personalization, and customer interaction.

Active data governance is an integral part of Pretectum CMDM’s approach to customer master data management, ensuring the quality, consistency, integrity, and security of your customer master data, thereby facilitating better decision-making and operational efficiency.

In a passive CMDM system, these practices would be implemented in a way that minimizes active data manipulation, instead, the focus is on the passive collection and integration of data from various sources.

A passive approach can help ensure data accuracy and consistency, while also reducing the need for manual data management tasks. However, it’s important to note that passive CMDM still requires robust data governance and quality assurance processes to ensure the reliability of the data.

Customer MDM Maturity Model

In considering what is best for your organization, you need to consider several factors.

The first consideration is the relative maturity of data governance processes and data management organization within your business. Highly disparate systems with siloed ownership may lend themselves more to a passive data governance model.

Pretectum CMDM can support that federated approach to customer master data management. If the organization also has limited resources for data management, passive data governance can be a cost-effective solution as it requires less active management.

Another consideration might be the sheer volume of data. Active Customer Master Data Management (ACMDM) requires a good deal of manual interception of data issues. Where the data is sourced from other systems or organizations, applying ACMDM may be a tough ask relative to the needs of the business. If the underlying systems providing the data are reliable and produce high-quality data, passive data governance can be an effective approach.

Batched and bulk processing of customer master data may be the way to go. Either way; the Pretectum CMDM provides you with a postmortem on captured data and guides you to the customer master data that fails to meet your business data governance rules as defined.

Passive customer data governance can also be beneficial when dealing with complex data structures or data from multiple sources, as it can automatically reconcile discrepancies and ensure consistency.

In some cases, regulatory requirements might favor a passive approach, especially when it comes to privacy regulations that limit the manipulation of certain types of data.

Consider also, the approaches to the implementation and adoption of CMDM.

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Customer data management, data syndication and secure access

The evolution of Master Data Management (MDM) and customer MDM (CMDM) in particular, has brought to light the significance of centralized data security, access controls, and metadata interoperability.

Enterprises often grapple with data management issues arising from the decentralized nature of their applications and systems. Stovepipe applications, with their isolated data silos and inconsistent access controls, can create a labyrinthine of complexities. The challenge becomes more pronounced when determining who can access or modify specific data and exercise authorized actions.

The need for centralized enterprise data access controls becomes obvious as a requirement in order to mitigate these issues. A dedicated enterprise data security and visibility system can efficiently manage and enforce data access permissions, eliminating redundancies that stem from multiple applications trying to govern the same aspect of data access. This not only streamlines customer master data governance but also enhances security and compliance efforts, as it becomes easier to manage and audit data access to customer records across the entire organization.

Centralized Customer Master Data Management with Pretectum CMDM
Centralized Customer Master Data Management with Pretectum CMDM

As the technology landscape continues to expand, the integration of various systems and technologies becomes imperative. Customer MDM technologies are no exception to this trend. They need to seamlessly interact with external authorities for authentication and authorization purposes. This integration enables the CMDM system to leverage the existing authorization, eligibility, and security rules of external systems, ensuring a cohesive approach to data security.

An open CMDM product seamlessly exchanges data with a central enterprise-wide data security and visibility product and transforms data security practices. Such an approach not only bolsters the overall quality and resilience of data security and visibility solutions but also contributes to cost reduction. When you decouple data security and access controls from individual applications, the organizations achieve better consistency and control all the while minimizing duplication of effort.

Data security is paramount, but shouldn’t impair the effectiveness of customer master data management practice which extends beyond ensuring data privacy and unauthorized access. In the modern enterprise landscape, data is spread across a myriad of applications, each with its own unique metadata structure and terminologies. This poses a significant challenge in achieving a unified understanding of the same data across applications and systems.

Enter metadata interoperability. Metadata interoperability for customer master data revolves around creating an environment where metadata seamlessly interacts and flows across diverse applications and systems within the data ecosystem. This enables a holistic view of customer data, enhancing the quality and usability of that information across the organization.

A screenshot of schema definition within the Pretectum CMDM that shows how data tagging with metadata can provide an alternative and unifying view of record definition

A robust metadata interoperability strategy calls for standardizing the data models, terminologies, and ontologies that will be leveraged to bridge the gap between the disparate systems. This fosters a shared understanding of data and accelerates decision-making processes, as employees become able to confidently navigate and comprehend customer data regardless of its source and labeling.

The evolution of expectations from Customer Master Data Management systems has benefited from the construction of transformative capabilities that have redefined data management paradigms. Centralized data security and visibility systems are emerging as a necessity to combat the challenges (and risks) posed by stovepipe applications. These systems streamline access controls, enhance compliance efforts, and optimize data governance.

CMDM’s ability to collaborate with external authorities is crucial for a cohesive and integrated approach to data security. By leveraging existing authorization and security rules, organizations can establish a consistent and robust security framework that transcends individual applications.

Moreover, the emphasis on metadata interoperability introduces a new dimension to CMDM’s role. Organizations can no longer afford to operate in silos; a unified understanding of data is pivotal for informed decision-making. Metadata interoperability bridges the gap between applications and systems, fostering a shared data understanding that enhances efficiency and productivity.

As enterprises grapple with an ever-expanding data landscape, the evolution of CMDM is poised to play a central role in shaping data security practices and promoting seamless data interoperability. By embracing these disruptive trends, organizations can navigate the complexities of modern data management with confidence, empowering them to unlock the true potential of their customer master data assets.

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What Motivates the Next Generation of Customer Data Management Stakeholders?

Few would doubt that customer data has become a vital asset for organizations.

Customer Master Data Management (CMDM) plays a crucial role in ensuring the accuracy, consistency, and security of customer data across the organization. As the importance of data-driven decision-making and personalized customer experiences continues to grow, organizations are realizing the need for effective CMDM practices. However, engaging and motivating the next generation of CMDM stakeholders requires a fresh approach that aligns with their motivations and aspirations.

Traditionally, CMDM optimization initiatives have been initiated as part of larger digital transformation projects or efforts to enhance customer experience. While these strategic drivers are important, they may not fully resonate with the next generation of stakeholders, who have different expectations and priorities and who are perhaps more focused on privacy and overreach by bad actors.

The next generation of stakeholders do however recognize the value and potential of customer data in driving business growth and delivering exceptional customer experiences. They understand that accurate, complete, and secure customer data is essential for personalization, targeted marketing, and building long-term customer relationships. For them, it is crucial to position CMDM in a way that aligns with their goals and aspirations, and overall thinking.

At Pretectum, we feel we understand that successful CMDM programs require a shift from focusing solely on the specificity of the “what” of CMDM to some important aspects of the “how.” While organizations may have a basic understanding of the importance of CMDM, the challenge lies in implementing it effectively, especially in large, complex, and often siloed organizations. The key is to adopt a pragmatic approach that engages and motivates the business stakeholders.

To address this challenge, we recommend a four-pillar approach to building a successful business case for CMDM:

  1. Limit the early investment: Start with a modest level of investment and avoid building an extensive CMDM program from the outset. By focusing on targeted customer data projects that deliver quick wins and demonstrate value for the business, you can showcase the tangible benefits of CMDM without overwhelming the business units or organization stakeholders.
  2. Focus on value creation: Prioritize projects that generate immediate value for the business and customers. By delivering tactical “Lighthouse Projects” that address specific pain points and drive positive outcomes, you can engage stakeholders and build momentum for the CMDM initiative. These projects should be aligned with the strategic goals of the organization and demonstrate the potential of CMDM to drive business success and customer satisfaction and experiences.
  3. Fly under the radar: Gradually establish the CMDM program in a “stealth mode” by continuing to be compliant, to avoid resistance and skepticism. Instead of launching a full-scale program upfront, start small and gradually expand the initiative. This approach allows you to build a solid foundation and gain support from stakeholders without overwhelming them with a large-scale transformation.
  4. Lock in the gains: As each Lighthouse Project is delivered successfully, use it as an opportunity to establish the foundational cornerstones of CMDM. By implementing CMDM processes, standards, and frameworks alongside these projects, you can ensure that the benefits are sustained and build a strong customer data management culture within the organization.

By adopting this four-pillar approach, organizations can overcome the challenges associated with traditional Customer MDM programs and motivate the next generation of stakeholders. Engaging stakeholders through targeted projects that deliver value and gradually expanding the program will create a sense of ownership and drive the success of CMDM initiatives.

To execute the customer MDM strategy effectively, a three-stage process is might be appropriate:

  1. Set the Direction: Define the CMDM strategy by capturing management intent and identifying projects that align with business priorities. This stage involves establishing policies, governance structures, and data stewardship frameworks to lay the necessary foundation for CMDM.
  2. Plan the Execution: Develop a comprehensive execution plan that balances leadership drivers, manages expectations, and focuses on both business outcome success stories and targeted interventions. This stage includes aligning Pretectum CMDM processes, standards, and frameworks with the strategic direction of the organization.
  3. Implement and Execute Lighthouse Projects as proof of concept to address specific business problems and demonstrate the benefits of CMDM. These projects should deliver tangible value, build momentum, and incrementally establish key elements of the Customer MDM framework.

By following this three-stage process, organizations can effectively implement CDM initiatives and align them with business objectives.

While implementing Pretectum’s CMDM, it is important to address common challenges and misconceptions. Many stakeholders may perceive CMDM as an additional burden or compliance aspect that would slow down projects and hamper innovation. To overcome this perception, it is crucial to focus on delivering tangible benefits and quick wins through targeted initiatives. By demonstrating how CMDM enhances customer experiences, improves marketing effectiveness, and drives business growth, you can change stakeholders’ perspectives and gain their support.

Identifying the right stakeholders for CMDM is another critical challenge. It is essential to consider the entire customer data lifecycle and involve relevant teams and departments responsible for data management processes. Additionally, engaging business stakeholders who understand the importance of accurate customer data and its impact on delivering personalized experiences is crucial for the success of CMDM initiatives.

Determining the most critical customer data elements to include in your Pretectum CMDM configuration can be overwhelming. It is recommended to start within those Lighthouse Projects to address specific pain points and support key customer-focused initiatives. By prioritizing the data elements that directly impact customer experiences, marketing effectiveness, and relationship management, organizations can ensure that their CMDM efforts are targeted and deliver meaningful results.

Building a successful CMDM program requires careful planning, stakeholder engagement, and an adaptive approach. It is essential to align CMDM with the motivations and aspirations of the next generation of stakeholders. By focusing on value creation, engaging stakeholders through targeted projects, and gradually expanding the program, organizations can successfully implement CMDM and unlock the full potential of customer data.

At Pretectum, we understand the evolving landscape of CMDM and have the expertise to guide organizations through their CMDM journey.

Contact us to learn more about how we can support your CMDM initiatives and help you achieve success in the digital age. Together, we can harness the power of customer data and drive your organization toward customer-centric excellence. Remember #loyaltyisupforgrabs.