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92     Enterprise Data Governance

                                5.2. Static MDM

                                  Static MDM is most widely used in companies today. It
                                can also be the most dangerous because it is not always
                                enough to ensure full data integrity. It is not enough just to
                                put in place MDM processes to  automatically increase the
                                quality of data. If the data repository relies on a model which
                                does not adequately include data validation rules, it can lead
                                to increased data quality issues. For example, in a financial
                                data repository, if a business rule forbids the creation of
                                more than three levels of financial classification, the MDM
                                system must formally include this rule. If this rule becomes
                                more complex, because the levels of classification change
                                depending on the status of the financial operations, a more
                                sophisticated data  model, including validation rules
                                depending on status is required.

                                  In the absence of rich modeling, the MDM  system only
                                handles the static view of the data, which necessitates  a
                                hard-coding software development to implement data
                                validation rules.

                                  In this situation, the MDM system and its ad hoc heavy
                                and hard-coded routines located outside the data model,
                                becomes an additional application silo needing complex
                                software maintenance. This MDM system becomes weighty
                                and difficult to maintain.

                                  A static MDM system, as opposed to a virtual MDM
                                system, contains the reference and master data of business
                                objects. It  does not limit itself to managing the identifiers
                                and associations between objects, nor a frozen header record
                                at the moment of creation. This data model allows the
                                storing and update of all reference and master data without
                                restrictions. It is a true data warehouse. This MDM system
                                allows updates, which means it must ensure a complete
                                control of the data validation process. Business rules are
                                required to check the integrity of data, both in pre-condition
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