Master Data Management

Master Data Management, or MDM, organises the definition, identity, quality and maintenance of important master data such as customers, products and locations. It includes business responsibilities, validation rules, change processes and technical distribution to connected systems. Master data is the information being managed; MDM is how it is handled throughout its lifecycle.

In a fictional example, CRM and ERP contain customers C-19 and K-33 with the same company name. Before merging them, it must be established whether they actually represent the same organisation. The name alone is insufficient. The origins of the information and existing links to orders must also be preserved or remain traceable.

Establish ownership before automatic reconciliation

Define who resolves an uncertain match, which source confirms a field value and how corrections are distributed. Automatic synchronisation can propagate an incorrect value just as reliably as a correct one.

An MDM tool can support these processes. Buying it does not by itself create common meanings or clear responsibilities. Documented rules and existing systems may suffice for a small, clearly bounded data set; uncertain identity matches and changes still need controlled handling.

Sources

• IBM — Master data management