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MDM and business rules management

Expert Jill Dyche explains the role of master data management (MDM) in business rules management. Business rules, she says, should leverage master data when they need to.

What is the role of master data management (MDM) in business rules?
Business rules aren't system-centric, they're business-centric. As such, they should leverage master data when they need to. For instance, take a simple business rule, like "all branches should have a branch code." The branch code would then be able to roll up to branches within a certain region. If you look at the new crop of business rules management systems currently available on the market, they ensure that business rules are consistent across systems, deployed as a centralized enterprise service for consistency's sake. A real-life example is with volume purchase agreements (VPAs). In order to apply the correct pricing, a business rules management system might need to call product master data on a PIM hub to get the most current list price for a product in order to calculate an accurate VPA. This scenario combines workflow, master data, and authoritative business rule calculation to ensure the integrity of potentially high-impact discounts.

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