Tuesday, February 11, 2014

Dots Connection: MDM vs. BPM

BPM and MDM are two separate disciplines, they are complementing each other. 

Master Data Management isn't so much about the Data as it is more about the Business Processes surrounding the Data. If so, what’s correlation between MDM and BPM?

BPM and MDM are complimentary solutions. Both are contributing to business process excellenceBPM scope is much wider and broader as it has to cover the entire organization's portfolio of process. BPM coverage is much broader than MDM and it actually complements the process changes implemented as part of MDM. On the other side, processes which do not consume clean, complete and accurate master data may exhibit poor performance, reduced straight-through processing. etc.

MDM is a subset of Data Governance. Data Governance can be supported by BPM. In this manner, BPM is complementing MDM, although BPM does not require MDM. Ensure MDM and data governance strategies are Process-oriented and not Data- focused. From business value perspective, the trend is accelerating in bringing these two powerhouse ideas together. It’s important to align people, process and technology; what is better way to execute this than delivering BPM and MDM seamlessly to business community.

One cannot mature without the other.
MDM environment cannot become mature, without a decent attention to BPM and Vice Versa. Validation of proper master data governance, documentation and procedures, can best be achieved through a well documented and actively used business process model,  and validation of documented Business Process Models is well served by including MDM process information. Both are model representation of the real business world with different focus. That can clearly be seen in the current status of practical implementations of MDM in general.

BPM's goals are different from MDM's goal, but BPM plays a specific role in the form of process changes as part of MDM implementation. BPM covers not just the MDM processes alone, BPM's main purpose is
- model, innovate & improve the current processes
- identify redundancy processes/resources in a lengthy process
- Covers the entire organization's process on the BPM as such, many of the large organization's don't have a clue of their process or why is it done the way its being done..
- Other key drivers are improved process efficiency, compliance and time to market their new products will be much faster with a clean BPM implemented.

MDM is about data and good percentage of process dependency. But MDM’s & BPM's goals are different, hence they are different and one complements the other (BPM to MDM). MDM implementation will require a decent amount of process changes, new process inclusion, innovation of process apart from data related activities as part of MDM implementation. These process related activities largely points to BPM concept of model, innovate and implement process to support right capture of data into MDM hub. For a successful MDM implementation, you need to work out the processes surrounding Master Data from day one, first what is already there and next how it's going to be processed after the implementation.

Although BPM and MDM are two separate disciplines, they are completing each other.  Through connecting such management dots smoothly, organizations can build more cohesive business capability and reach higher level maturity.



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