Master Data and Master Data Management
Strange Girl • Laura Marling • 2020
• Database
Master Data
Master data is a collection of common and key entities along with their attributes and their values that are considered critical to a company’s business, and that are required for use in two or more systems or business processes. Ex: customer, product, employee, supplier, and location data. It’s often dispersed across many channels and applications within an organization, invariably containing duplicate and conflicting data.
Master Data Management
Master Data Management (MDM) is the controlled process by which the Master Data is created and maintained as the system of record for the enterprise.
MDM is implemented to ensure that master data is validated as correct, consistent and complete. Optionally, MDM can be implemented to ensure that master data is distributed in context for consumption by internal or external business processes, applications or users. MDM is deployed as part of a more general data governance program that involves a combination of technology, people, policy and process.
Key Adoption Drivers for Master Data Management
Organizations are implementing master data management solutions to achieve the following goals:
- Regulatory compliance, such as financial reporting and data privacy requirements.
- Avoid corporate embarrassments. For example, you can improve recall effectiveness and avoid mailing to deceased individuals.
- Cost savings by streamlining business processes, consolidating software licenses, and reducing the costs associated with data administration, application development, data cleansing, third-party data providers, and capital costs.
- Productivity improvements across the organization by reducing duplicate, inaccurate, and poor-quality data, helping to refocus resources on more strategic or higher-value activities.
- Increased revenue by improving visibility and access to accurate customer data, resulting in increased yields for marketing campaigns and better opportunities for cross-selling and up-selling to customers and prospects.
- Strategic goals, such as customer loyalty and retention, supply chain excellence, strategic sourcing and contracting, geographic expansion, and marketing effectiveness.