Master Data Management A Pilot Study

Transcription

1 Master Data Management A Pilot Study Student : Gouri Pradhan Student ID : Supervisor : Prof. Michael Johnson 13th June 2012

2 Presentation Structure Initial problem specification Related work and background information Approach and methodology to solve the problem Project outcomes 2

3 Project Overview Master Data Management - A Pilot Study Carried out for CGSGAM A division of CBA Focus on Legal Entities - Companies that issue financial securities Used Talend MDM Software 3

4 Master Data and Master Data Management (MDM) Master Data Key reference data within an enterprise Shared by different IT systems Master Data Management (MDM) A program undertaken to effectively manage a single accurate record of master data 4

5 This section covers Initial problem specification Related work and background information Approach and methodology to solve the problem Project outcomes 5

6 MDM Definition MDM is a framework of processes and technologies The aim is to create and maintain a reliable, sustainable, accurate, and secure data environment The data environment represents a single version of truth It is used both intra- and inter-enterprise across a diverse set of application systems, across lines of business and user communities - Berson and Dubov (2007) 6

7 MDM Methodologies DAMA-DMBOK Functional Framework for MDM MIKE 2.0 MDM Solution Offering 7

8 Project Phases for Pilot MDM Project Phase 1 Business Study and MDM Strategy Analysis Phase 2 Data Analysis and Data Modeling Phase 3 Implementation Plan Analyze current business processes Get Legal Entity information Understand links between business areas Identify current data sources Conduct data quality analysis Propose Target Data Model for Legal Entity Propose Implementation Plan Provide guidelines for further work 8

9 This section covers Initial problem specification Related work and background information Approach and methodology to solve the problem Project outcomes 9

10 What is CFSGAM? Financial asset management business Manages diverse range of assets including equities, property securities, listed infrastructure Growth through mergers and acquisitions in many global markets It has range of diverse hardware platforms, applications suites and in-house developed custom software Data management is a key area of interest to support growth 10

11 CFSGAM Investment Management Process Research and Analysis Portfolio Management Order Management Investment Portfolio Management Investment Accounting Reporting The Front Office The Middle & Back Office 11

12 Role of Legal Entities CFSGAM researches companies to invest in their equities CFSGAM manages the investment portfolio for their clients Legal entities are primarily companies or parties that issue securities Legal entity has two roles in investment management Legal Entity Issuers of financial securities Counterparty in a financial transaction 12

13 Key issues with Legal Entities Different identifiers across different systems Application specific definitions External data sources use their own identifiers Hierarchy of entities is not defined No standard way of uniquely defining legal entity ABCD Bank Identified by Ref ID:1234 Ref ID: X123 Ref ID: BB01 13

14 Focus on Data Driven Process Driven MDM Strategy Analysis - Following MDM strategies were analyzed and the most suitable one was selected Problem Oriented Approach Solution Oriented Data driven, Solution oriented Focus on improving data quality of existing data Focus on achieving target data model to satisfy LEI standard adoption 14

15 Data Quality Analysis Talend MDM Software used to carry out Data Profiling Analysis Analysis using current legal entities data extract Analysis Results Null values found in Name column, GICS Codes column, Country Code Duplicate records found 15

16 Legal Entity Identifier (LEI) Standard A global LEI standard is proposed because: The accurate and unambiguous identification of legal entities engaged in financial transactions is critically important for monitoring of systemic risk by regulators. Legal Entity Identifier Characteristics Recommended by the Global Financial Management Association (GFMA) Single, universal standard identifier for legal entities Will consist of a unique 20-character alphanumeric code Assigned to all entities that are counterparties to financial transactions 16

17 Structure of LEI Standard The following six data elements will all form part of the minimum set of reference data attributes that will be required by the regulatory community on the launch of the LEI Core Data Elements for LEI Official name Address of the headquarters Address of the legal formation Date of the first LEI assignment Date of last update of the LEI Date of expiry, if applicable. Companies (such as CFSGAM) will have to prepare their internal systems to integrate with the data provided by LEI standard. 17

18 Functional Areas Proposed Data Model for Legal Entity The model defines the functional areas for which information should be maintained. Identifiers Name Address All the identifiers from different systems Legal and all other names Registered Address General Information Trading Information Regulatory Information Hierarchy Credit Analysis ESG Contact Information, Company website information Trading information for listed companies Regulatory Status Hierarchical relationships including ultimate parent Credit Analysis/Rating information about Issuer Environment-Socio-Governance Ratings Score The data model is required for future integration needs of LEI standard 18

19 MDM Implementation Plan The phases of the proposed MDM implementation plan Business Assessment and Strategy Definition Technology Assessment and Selection Blueprint Roadmap and Foundation Activities Design Increment Incremental Development, Testing, and Deployment Understand current data state Define future data state requirements Define scope and timeline Define current state architecture Define key functional requirements Vendor evaluation and selection Define business rules Carry out data profiling and updates Review data quality and take corrective actions Develop logical and physical data models Define reporting environment and dashboards Adjust design based on the outcomes of reports Implement the data model Perform end-toend testing Deploy into production environment and monitor The phases above covers legal entity specific details. We can add this to Footer 19

20 This section covers Initial problem specification Related work and background information Approach and methodology to solve the problem Project outcomes 20

21 Conclusion Project Achievements Conducted business process analysis Performed data quality analysis Identified current issues with data Studied requirements of LEI standard Proposed target data model Provided overall implementation plan 21

22 Future Work Extend the scope of MDM to cover other data entities Implement end-to-end data quality framework including data and process governance Move towards Enterprise Information Management 22

23 Thank You 23