When it comes to Master Data Management, the implied definition is an à la carte of detailing and normalizing activities including data cleansing, data verification, data profiling, data governance, de-duplication, data enrichment and data provenance among other tasks. If you are managing or participating in the activities of a Master Data Management program, you are progressing in the right direction of achieving data quality. If you are NOT participating in the activities of MDM then you are part of a company wide initiative of “Garbage In, Garbage Out (GIGO)”. By the way, GIGO, in this case is not environmentally responsible or a “green” behavior.
Wikipedia’s definition for “Garbage In, Garbage Out, is a phrase in the field of computer science or information and communication technology. It is used primarily to call attention to the fact that computers will unquestioningly process the most nonsensical of input data (Garbage in) and produce nonsensical output (Garbage out).”
If you enter “garbage in” to a computer system, having the data passed through some very expensive ERP or CMMS software, isn’t going to change the data quality, the business results are equivalent to “garbage out”, which will be apparent in the day to day business activities and subsequent reporting used to determine the health of your business. Is it obvious that data should just not be moved from one system to a new system without a MDM program?
Let us now explore the concept of data migration. Wikipedia’s definition for Data Migration is the process of transferring data between storage types, formats, or computer systems. Data migration is usually performed programmatically to achieve an automated migration, freeing up human resources from tedious tasks. It is required when organizations or individuals change computer systems or upgrade to new systems, or when systems merge.
If an MDM program is not in process when implementing a new software or upgrading an existing software, the project should include an evaluation of the data and/or an evaluation of the additional functionality of the “to be” model of the new software identifying the new data required for improved business processes, reporting and the plan for legacy data clean up. A data migration project needs to be more than moving data from a legacy system to the new system.
I asked the question to one user of a maintenance software implemented a number of years earlier as I had the opportunity during a site visit at a plant. The software had awesome abilities to create and manage the relationships between equipment and spare parts, supplier contacts as well as the potential to improve processes, reporting and streamlining the information required for a maintenance organization. The company invested in the software / hardware, understood the ROI but lack the understanding of the data needs or management. The software was implemented however the majority of the functionality was not used, therefore the ROI was never achieved. When I asked why, I was told “no data and we don’t have time to add the data.”
Another scenario I came across, purchasing moved data from a legacy system to a new ERP system. The data wasn’t set up to a data governance or MDM procedure, legacy data riddled with duplication, obsolete information, unstructured descriptions and so forth. Different system, same legacy data quality and the ROI was never achieved.
I have one simple question, why invest in a software product if the data is not going to be treated as an asset? The results of a successful implementation are that the business processes are streamlined; simplified and reporting capabilities are enhanced through enabling both Master Data Management and Software functionality.
Garbage In, Garbage Out or Garbage Extracted, Garbage Migrated as we are moving to the next generation of technology. Are we relying on a skewed nonsensical output based on low quality data to make our critical business decisions?
Tags: Business Intelligence, Data Cleansing, data management, Data Profiling, data quality, DATAForge, dataquality, linkedin, masterdata, mdm, MRO, Software as a Service, spare parts
Hi Jackie,
Expectation management is one of the challenges of “new systems” and new “software products”. The marketing material, and the business case always highlights what the new system is, undoubtedly, CAPABLE of doing.
The marketing demo shown to the senior execs, always uses pre-populated sample data, to illustrate the wonderful capabilities of the new system.
The fact that a new system is CAPABLE of accepting perfect data, and CAPABLE of generating wonderful results, on the basis of perfect data, is no indication of what the new system will ACTUALLY do.
Most new systems need to be populated by a Data Migration project. Failing to plan data cleansing of the old data is shockingly common place.
Then senior execs express surprise when the “new system” fails to live up to their expectations….
Some “new systems” are required for regulatory compliance reasons (Anti Money Laundering, Solvency II, etc. ). Regulators are beginning to seek evidence of the data population processes – I cite some examples on my blog.
Rgds Ken
Why invest in a software product if the data is not going to be treated as an asset?
It’s an excellent question, Jackie. Maybe one day I’ll be smart enough to actually to know the answer.
Give me an older system with good data over a newer one with garbage any day of the week and twice on Sunday.