Master Data Management (MDM) 101 & Oracle Trading Community Architecture (TCA) 101 [2010 OAUG Collaborate]

Oracle Master Data Management (MDM) and Trading
Community Architecture (TCA) 101

Session# 800

Mani Kumar Manda
Rhapsody Technologies, Inc.

OAUG Collaborate 2010, Las Vegas, Nevada
Monday, April 19, 2010

©2010 Rhapsody Technologies, Inc., All rights reserved.
1
“Mastering” Master Data Solutions

“Guiding Clients through the lesser known path”

Learning Objectives
Understand basic concepts about
• Master Data and Master Data Management
• 3600 view of a Customer
• Oracle’s MDM foot print and CDH
• Trading Community
• Trading Community Architecture
2

About Speaker & Rhapsody

3

About Speaker
Mr. Mani Kumar Manda had been working with Oracle
Applications for over 15 years and has implemented
Technology Solutions for clients in many industries.
Mr. Manda is the founder and chair for Customer Data
Management SIG (an affiliate of OAUG)
Mr. Manda is an active and frequent speaker of topics
associated with Master Data Management
Mr. Manda is the President and Founder of Rhapsody
Technologies, Inc., a consulting firm with specialization in
implementing Master Data solutions using Oracle’s MDM
products.

4

About Rhapsody
■ Founded in 1998
■ Implementation Services
■ ERP, CRM and MDM solutions
■ Assessment/Auditing
■ Customer Data Quality Assessment
■ Offers MDM Strategy/Auditing/Evaluation Services
■ Packaged Services
■ Build Semantic Customer Model for your organization
■ DQ Discovery
■ DQM Search Optimization
■ DQM Enablement
■ Support Services
■ TCA Functional Support
■ Training/Seminars
■ Provides a week long training on ‘Functional fundamentals of Customer Data
Management’ covering topics such as challenges of customer data management,
best practices, tasks that need to be considered, TCA and the features of the
Oracle Customer Data Hub product.
■ Provides half day and one day MDM awareness sessions for C level executives,
functional/departmental heads.

5

About Rhapsody
Partial list of our Customers
ADP DoubleClick Motorola

Haworth Hologic KCI

Office Depot Overland Storage Hologic

Partial list of Industries
Retail Advertising Manufacturing

High-Tech Healthcare Services

Some of Our Partners
Oracle Dun & Bradstreet

Trillium Deloitte Consulting

Hub Solution Designs Transitions II

6

MDM 101

7

What is “Master” Data?

8

Data is

Structured Unstructured
Data Data

9

Structured Data “Hierarchy”

ta
r Da
te
as
M
(Data about Data)

t a
Da
Meta Data

Structured al
at a tion
fe r enData
ce D ac
Re ns
Tra ata
alD
ytic
A nal

Reference Data Examples: Master Data Examples:
Lookup Codes Customer, Product, …
Transactional Data Examples: Analytical Data Examples:
Orders, Invoices, Leads, … Facts, Cubes, Dimensions, …

10

Then “Master” Data
• has a longer life span
• changes gradually over time
– both due to internal and external factors
• requires an on-going effort (requires programs, not just
projects)
• requires Business leadership to keep it at optimal quality
• requires IT leadership to provide technology and tools to
business to maintain it on an ongoing basis

11

Then “Master Data Management”
means …

12

Per Rhapsody, MDM means
• About establishing the Single Source of Truth for Master Data, in other
words a System of Record that is reliable, available when needed and
always maintained
• About cross-referencing the Master Data across heterogeneous systems
to establish a Single View of the chosen data domain
• About providing 3600 view of the Master data
• About establishing a Data Governance structure for welfare of the
Master Data solution by establishing Roles and Responsibilities; Policies
and Procedures to maintain data quality on an ongoing basis
• About defining and maintaining Analytics and Segmentation to drive top
line growth (Revenue) and increase bottom-line (Profits) by increasing
the effectivity of various business processes
• Increasing the operational excellence across the Enterprise
• Accomplish all of the above with a synergistic alliance between Business
and IT

13

Master Data Management (MDM) is
According to ‘The CDI Institute”
• The authoritative, reliable foundation for data used across many applications &
constituencies with the goal to provide a single view of the truth no matter where
it lies.
According to Gartner
• Master Data: Consistent and Uniform set of identifiers and attributes that
describe the core entities of the enterprise
• MDM is a technology-enabled discipline in which business and IT organizations
work together to ensure uniformity, accuracy, stewardship, semantic consistency
and accountability of the enterprise’s official, shared master data assets.
According to Forrester
• Master data is the most trusted and unique “version” of important enterprise
data, such as customer, product, employee, or asset that is captured, maintained,
and used across disparate systems. MDM is the business capability that delivers
master data throughout an organization through the alignment of multiple
information management technologies such as PIM, CDI, and data quality, plus
business process improvements and organization commitments.

14

MDM Domains (or Entities)
MDM has several subject area domains. The most popular domains of
interest in MDM are:
• Customers
– Partners
– Is widely referred as Customer Data Integration (CDI)
– Also known as Customer Hubs
• Supplier
• Products
– Is widely referred as Product Information Management (PIM)
– Also known as Product Hubs
• Employee
• Chart of Accounts
• Assets
• Etc.

15

MDM Domains
• Forms the foundation for Operational Systems
• Forms the foundation for Data warehouse and Business
Intelligence initiatives
• Are enterprise-wide
– Cross-Business Unit, Cross-functional, Cross-Departmental
• Provides reliable, secure and correct information to the
needed parties

16

What is a 3600 view of the Master Data?

17

What is 3600 view of the Master Data?
“Rather than
thinking about the Customer itself,
we need to think
about the relationship
that exists with the Customer,
and that lets us provide Inte
ract
Superior experience.” ions

- Mani Kumar Manda

s
ship
A ttr i at ion hies
bute
s Rel erarc
i
/H

18

What is 3600 view of the Customer? Quotes
Orders
Invoices
Receipts
Service
Contracts
Installbase
Agreements
Etc.

Inte
ract
ions

r
me ps
A ttr i
bute Custo onshi s
s ati ie
Rel erarch
i
/H

Identity Attributes
Name, Address, Education, etc.
Behavioral Attributes
Hobbies
Tech Savvy, Old Timer, etc.
Financial Attributes
Income, Net worth, etc.
Classification Attributes
Industry, Size, etc.
Relationship Attributes
Account Number, Terms, etc.
Segmentation Attributes Corporate Hierarchies
Categorization, etc. Business specific hierarchies
Past relationships
Staff and Family Information
Affiliation with Professional Associations

19

Challenges of Customer Data!

20

Short Video

21

Corporate Asset

“One of the most valuable asset of any
Organization is its customer
information. Everyday millions of
dollars in potential profits are lost at
many organizations due to inability to
provide reliable, accurate, well
maintained and readily available
customer data.”
Mani Kumar Manda

22

MDM Adoption by Industry

Source: Gartner

23

According to Gartner

24

Oracle’s foot print in MDM space

25

Oracle’s MDM Foot Print

Locations
Customer

Customer

Supplier

Product
Sites/

COA
COA
MDM
Domains

Analytical
Operational MDM Applications
MDM Apps

Analytical Hub
Financial Hub
Supplier Hub

Site Hub
MDM
UCM

CDH

PIM
Apps

Biz
Apps Siebel Oracle eBusiness Suite Hyperion DRM

26

What is Oracle CDH?

27

Cusotmer Data Integration across Hetrogeneous Applications
Mktg.
Legacy
Sales

EIS
Quoting

DW OM

AR
Service

Credit
Contracts
Collec-
tions

28

Oracle CDH
• Oracle CDH is a full featured application from Oracle addressing
CDI space.
• Includes TCA, Interfaces (API’s, Web Services, etc.), UI (Oracle
Customers Online, Oracle Data Librarian), out of the box integration
for Third party enrichment (D&B) and address validation (Trillium
and First Logic).
• Facilitates the establishment of a central repository of customer data
that can be maintained continuously and synchronized with all other
applications in the enterprise in a hub and spoke manner.
• The Hub becomes master for customer data
• Spoke systems are synchronized with Hub and with other spoke
systems via Hub using standards based web services using
Publish/Subscribe approach.

29

Oracle CDH - Hub and Spoke
Mktg.
Legacy
Sales

EIS
Quoting

DW
Oracle OM
CDH

AR
Service

Credit
Contracts
Collec-
tions

30

What is Trading Community?

31

Trading Community
• Trading Community is defined as a group of entities taking
part in commerce.
• Trading Community includes both persons and
organizations.
• Entities in Trading Community may play roles other than
Seller and Buyer such as Partner, Contact, Dealer,
Distributor, Agent, Influencer, etc.

32

Trading Community
Relationships

External Entities
Internal
Entities
Suppliers Competitors Partners Others Prospects Customers

Person Person Person Person Person Person
C
O
Orgn. Orgn. Orgn. Orgn. Orgn. Orgn. Orgn. S
N
I
T
T
A
E
C
T Sites
S
U
S
INT.
E
&
S
EXT. Accounts

33

Key Questions?
• Is your Contact Diane Miller at XYZ Corporation same as your customer
Diane Miller?
• Who are your Customers, Competitors, Suppliers, Partners?
• Are there any Influencers in your business?
• What is your Customers Organizational Hierarchy?
• Is someone who used to be your Employee is now a Contact at Your
Customer or Supplier?
• How do you manage dynamic nature of ever changing Customer Data?
• What about Mergers and Divestitures?
• Does your Organization sell products/services via multiple faces
(brands)?
• How do you deal with Cultural and Geographic influences on Customer
Data?
• Can you accurately project your risk exposure for top line and bottom
line numbers that are stated on 10K’s?

34

What is TCA?

35

What is TCA?
• TCA stands for Trading Community Architecture that lets
you capture and maintain the trading community of your
business including the ability to capture
– real world entities,
– and their locations,
– relationships between them,
– contacts of these entities,
– with their phone/fax/cell numbers, email, etc.

36

What is TCA?

37

What is TCA?

38

What is TCA?

39

What are the key entities in TCA?

40

TCA - Key Entities

41

TCA Entities
• There are over 200 entities with HZ prefix in Receivables schema.
• Customer identity data is stored in
– HZ_PARTIES
– HZ_ORGANIZATION_PROFILES
– HZ_PERSON_PROFILES
• Contractual relationship (Account) data is stored in
– HZ_CUST_ACCOUNTS
• Location information is stored in
– HZ_LOCATIONS
– HZ_PARTY_SITES
– HZ_CUST_ACCT_SITES_ALL
• Etc.

42

What is a Party?

43

What is a Party here?

44

Party …
• A real thing that exists, such as a Person or Organization
• Represents a Trading Partner
• Can enter into business relationships
• And exists independent of any business relationship
• Can be an Organization, Person, Relationship or Group
– Person Parties and Organization Parties can be created
– Relationship party gets created behind the scenes
– No functionality yet for Group Party
• Can be related to any number of other Parties in any number of
ways
• Can be modeled using D&B data including D-U-N-S® Number
(Data Universal Numbering System)
45

Party …
• Can exist independent of an Account
• Can be classified
– SIC (SIC-87, SIC-72, SIC-77), NAICS
– Custom (user-defined)
• Unlimited cross references to Source Systems
• Party Attributes
– Organization
• Name
• (Registry) Number
• Classification
• DUNS Number
• Number of employees
• Category Code
• Etc.
46

Party …
• Party Attributes
– Person
• Name (First, Middle and Last)
• No DUNS Number
• Etc.
• Examples
– John Smith
– Mary Smith
– Echo Consulting Services
– John Smith, an employee of Echo Consulting Services (Relationship
Party between John Smith and Echo Consulting Services)
– Smith Family (Group Party – No functionality to create or use
Group party yet)

47

Party …

John Smith Echo Consulting Services

48

What are Party Relationships?

49

Party Relationships
• Binary relationship between two parties
• Inter-Company and Intra-company relationships
• Non-business relationships too
• Are reciprocal
• Unlimited in number
• Dynamic in nature
• Both seeded or user-defined Relationship Types
• Relationship itself is stored as a party
• Any number of relationships between two organizations
(org-to-org) or two persons (person-to-person) or an
organization and a person (org-to-person)

50

Party Relationships …

• Build any type of relationship between Organizations,
including the ability to capture branches, locations,
competitors, suppliers, resellers, business partners, etc.
• Examples
– John Smith is an employee of Echo Consulting Services
– Echo Consulting Services is the employer of John Smith
– John Smith is a contact for XYZ Consulting, Inc.
– John Smith is the spouse of Donna Smith

51

Party Relationships …
is an employee of
is an employer of

52

What are Accounts?

53

Accounts
• Represents the Selling Relationship
• Exists only when a Selling Relationship exists
• Each unique business relationship is an Account
• Equates to Old Customer (R10.7 and R11)
• Account Attributes
– Account Number
– Account Name (Optional, but shouldn’t be Company Name)
– Account Class Code
– Etc.

54

Accounts
• An Account cannot be created without a Party
• Examples
– Savings Account of John Smith with American Bank
– Checking Account of John Smith with American Bank
– CD Account of John Smith with American Bank
– Investment Account of John Smith with American Bank
– Consulting Services Account for Infinity Technologies, Inc.
– Master Account for Infinity Technologies, Inc.

55

What roles Parties and Accounts play
in Oracle eBusiness Suite?

56

Party vs. Account
• Within TCA model, the concept of “Customer” is separated into
two layers: the Party layer and the Account layer
– CRM applications are referring to the Party layer when they refer to
“Customer”
– ERP Applications, on the other hand, are referring to the Account
layer, when they refer to “Customer”
• Confusion arises because CRM and ERP suites are both using
the word “Customer” to refer to two different things

57

Party Vs. Customer …
• Per TCA Best Practices, the word “Customer” is the
combination of both the “Party layer” and the “Account
layer”, where
– Party layer exists independent of any selling or buying relationship
– Customer Account layer exists in the context of a Party and only
when a selling relationship exists

58

What are Locations?

59

Locations

• A geographic location
• Is a Party Site with one or more site uses
• Only one of the Party Sites can become an “Identifying
Address” for the Party
• An Account Site in the context of an Account
• Examples [Each location resulting in one Party]
– New York location (HQ) of Echo Consulting services
– Chicago location (Branch) of Echo Consulting Services
– Detroit location (Division) of Echo Consulting Services

60

Locations …
is an employee of
is an employer of

Lives At Located At

300 S Wacker Dr
931 Sanctuary Lane
Suite 3050
Naperville IL 60564
Chicago IL 60606

61

What are Contacts?

62

Contacts

• Contacts are employees of an organization responsible for
different roles.
• Contacts may be relevant from the organization or a specific
location at the organization
• Contacts may be relevant in the context of a business
relationship (Account or Account Site)
• Can capture following information about Contacts:
– Name (Title, First, Last Name, )
– Job Titles, Mail Stops
– Location
– Communication Points (Telephone, Fax, Email, etc.)

63

How are Key entities related to each
other?

64

TCA Structure prior to Selling Relationship

Party Usage
Party Usage Party
Assignments
Party Usage
Assignments
Assignments

Party Site(s) Party Relationship(s)
Party Party
Party Party

Party
Site Party
Use(s)
Party

65

TCA Structure prior to Selling Relationship
Party Party
Relationship Type Relationship

Party Usage
Party
Assignments

Location Party Site

Party Site
Use

66

TCA Structure with selling relationship(s) – R11i

67

TCA Structure with selling relationship(s) – R12

68

TCA Structure with selling relationships – Entity Modal

Party Party Account
Relationship Type Relationship Relationship Type

Party Usage Account
Party Account
Assignments Relationship

Location Party Site Account Site

Party Site Account Site
Use Use

69

TCA Structure with selling relationships – Entity Modal

70

Customer Modeling Approaches

71

Customer Data Model
• Using TCA there are multiple ways a Customer data can be
created and maintained.
• Some approaches are better in some operational contexts
than other
• On the two extremes:
– Party Centric Approach
• is when a Party is created for every single site (location) of the Customer
and party relationships are used to build the corporate hierarchy.
• The focus is on creating parties and relating them to each other.
– Site Centric Approach
• is when only one party is created for the Customer and all sites of the
customer are created as party sites of this party.
• The focus is on creating multiple sites

72

Party Centric Approach

73

Party Centric Approach

74

Site Centric Approach

Widely known as
Old AR model
Release 11 Model

75

CDM SIG – To Become a Member

Do one of
• You can join CDM SIG from OAUG site at http://www.oaug.com

• Send a blank email to cdmsig-subscribe AT yahoogroups DOT com
• Go to CDMSIG Yahoo group at http://groups.yahoo.com/group/cdmsig
and click on ‘Join this Group’:
• Or send an email to mmanda AT rhaptech DOT com expressing your
interest in becoming CDMSIG member.

You will receive membership application in reply. Upon sending the completed
form to mmanda@rhaptech.com, your membership will be enabled.

• Members can post their questions, comments, etc., by sending an email to
cdmsig AT yahoogroups DOT com. You will have to become member in
order to post to this forum.
76

Sessions by me
Title Presenter Date & Time

Oracle Master Data Management (MDM) and Trading Mani Kumar Manda Monday, April 19, 2010
Community Architecture (TCA) 101
Rhapsody Technologies, Inc. 1:15 PM in Mandalay K

MDM for Customer – A Panel discussion Mani Kumar Manda Monday, April 19, 2010
Rhapsody Technologies, Inc. 3:45 PM in Lagoon C

Master Data Management Programs: Best Practices for Mani Kumar Manda Wednesday, April 21, 2010
Initiation, Implementation and Sustenance
Rhapsody Technologies, Inc. 9:15 AM in Lagoon C

Fusion Applications 101 Mani Kumar Manda Wednesday, April 21, 2010
Rhapsody Technologies, Inc. 10:30 AM in South Seas F

Implementation of Oracle PIM (MDM for Product) solution – A Mani Kumar Manda Wednesday, April 21, 2010
Panel discussion
Rhapsody Technologies, Inc. 4:00 PM in Lagoon C

77

QUESTIONS
ANSWERS

78

If you like to listen to this session,

send an email to the

E-mail address provided in the last slide

requesting access

to the SlideCast version of this presentation

along with your contact information

79

Q
& Session# 700

A
QUESTIONS
ANSWERS

Can be reached at: Mani Kumar Manda
Rhapsody Technologies, Inc.
1700 Park Street, Suite 205
Naperville IL 60563

Phone: 630-717-1809
Email: MManda AT RhapTech DOT com

Special Interest Groups:
http://cdmsig.oaug.org
http://groups.yahoo.com/group/cdmsig
http://groups.yahoo.com/group/ucmsig
http://groups.yahoo.com/group/cdi-mdm-jobs
Latest Versions can be obtained from:
http://www.rhaptech.com/resources.html

80

Master Data Management (MDM) 101 & Oracle Trading Community Architecture (TCA) 101 [2010 OAUG Collaborate]

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