By tobyehatch-Oracle on Mar 28, 2016
By Guest Blogger Gilles Demarquet
The data governance journey is about helping an organization consistently and correctly make sense of its data. What is data? Where does it come from? Are there different types of data?
In simple terms, an organization performs transactions – a few transaction examples for a manufacturing company include: purchase supplies, produce a product, sell products to customers, receive payment for sales, pay for supplies. For statutory purposes, the organization records details for every transaction and produces and stores transaction data of the event.
To simplify the creation of transactions, reference data is a source of consistent values used to classify the characteristics of an event. For example, organizations dictate specific values for reference data such as products, account, cost center, etc. Reference data tends to be either fairly static or, if subject to frequent changes, limited to a single application.
While transaction data is used to capture the activities that have occurred, it also serves as the basis for performance evaluation and assessing potential future actions. When the department creating a transaction is the only consumer requiring summaries of its transaction data, it tends to be fairly simple to define and manage how its results are to be aggregated. It gets a bit trickier, however, when summaries of transaction data are required across the enterprise – often to support higher-level analysis. How it is summarized for its various consumers is more complicated because it must satisfy a variety of people’s aggregation requirements. Consider something as simple as a record created by a sales transaction. How many people might be interested in understanding the contribution that this customer has on their particular view of the organization? The geographic sales organization would want to understand how this customer’s sales impacts its branches’ revenue; the production department may want to see how these sales affect product revenue (and profitability); and one requirement for the finance department is total company revenue. Each of these consumers have a different “view” of revenue, and it becomes important for the organization to understand and manage the various business contexts. These business contexts are referred to as master data and master data gives business meaning to transaction summaries.
When embarking on the data governance journey in a hybrid environment, it’s important to understand the roles played by these different types of data and how they drive the data governance process. I will revisit these data types in a future post.
To learn more about Oracle Enterprise Data Governance, click here.