Master Date Management
“Master data management (MDM) is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official shared master data assets. Master data is the consistent and uniform set of identifiers and extended attributes that describes the core entities of the enterprise including customers, prospects, citizens, suppliers, sites, hierarchies and chart of accounts.”(1)
There are five types of data in corporations. Unstructured, Transactional, Metadata, Hierarchical and Master.
- Magazine Articles
- Product Specs
- Marketing Collateral
- PDF Files
- Other Monetary/Non-Monetary Interactions
- Data about Data
- XML Documents
- Report Definitions
- Log Files
- Configuration Files
- Data that stores the relationship between other data
- May be store as part of an accounting system or separately as descriptions of real world relationships
- Sometimes considered a super MDM domain
- It is critical to understand and sometimes discovering the relationship between Master Data
- Critical nouns of a business
- Falls into four groupings
“Master data can be described by the way that it interacts with other data. For example, in transaction systems, master data is almost always involved with transactional data. A customer buys a product. A vendor sells a part, and a partner delivers a crate of materials to a location. An employee is hierarchically related to their manager, who reports up through a manager (another employee). A product may be a part of multiple hierarchies describing their placement within a store. This relationship between master data and transactional data may be fundamentally viewed as a noun/verb relationship. Transactional data capture the verbs, such as sale, delivery, purchase, email, and revocation; master data are the nouns. This is the same relationship data-warehouse facts and dimensions share.”(2)
- Master data can be described by the way it’s created, read, updated, deleted and searched
- Life cycle is called the “CRUD cycle
- How a customer is created depends largely upon the company’s business rules
- One company may have multiple customer creation vectors such as the internet or through outlet stores
- Another company may only allow customers to be created directly over the phone
- Redundancy Elimination
This is bound to happen in every functional department, one of the most important role for MDM is that it removes data redundancy and makes it centrally located with complete coherence and specifics.
- Master Date Edits
One of the major issues with maintaining multiple data records is that when you change some data at one location it remains isolated. This leads to data discrepancies which will result in serious problems for business and customer relations. MDM makes sure that master edits are changed at every single location, this ensures data consistency.
Flexibility is great compared to other data management techniques. Data storage, changes, availability and usage are easier to manage.
Dealing with a centralized data sources make it easier to take backups, this is vital in cases of disaster management and the loss of data due to corrupt storage source.
- Access Based on Role
Makes it easier to grant access based on person’s job or role on the master data. This makes sure that important information doesn’t land in the wrong hands and damage the business with it.
Due to the low set up costs and low maintenance costs this makes this tool very affordable.
- Choose Data
Acts as a key data source and becomes more authoritative and becomes a reliable basis of information for all kinds of business operations. (3)