MasterDataManagement

Master data management (MDM) is a set of processes, governance, policies, standards, and tools designed to manage critical business data so that an organization has a single, trusted view of core entities. Master data typically includes customers, products, suppliers, locations, employees, and chart of accounts. The goal is to ensure accuracy, consistency, and accountability of this data across the enterprise to support reliable reporting, analytics, and operational processes.

MDM involves data governance, data quality management, identity resolution, survivorship, and data enrichment. Key activities include modeling master data, standardizing attributes, deduplicating records, linking related records, creating golden records, and distributing mastered data to downstream systems via an MDM hub or through a hub-and-spoke architecture. Data stewardship, metadata management, and data lineage are essential components of governance.

Common data integration patterns in MDM include synchronization with source systems and bi-directional updates to ERP, CRM, and analytics platforms. Benefits include improved data quality, consistent reporting, regulatory compliance, operational efficiency, and better customer experiences and analytics.

Challenges include data quality issues, silos, organizational alignment, change management, and cost. Successful MDM programs require clear ownership, cross-functional governance, defined policies, and alignment with enterprise architecture. Data security and privacy considerations are integral when master data contains personal data or sensitive attributes. The MDM lifecycle includes creation, update, matching and survivorship, de-duplication, metadata harvesting, and ongoing governance to maintain golden records.