Master Data Management arose out of necessity for businesses to improve the consistency and quality of the crucial data asses, like as product data, asset data, customer data, location data and much more. Thus it is the comprehensive collection of data.
Many businesses in the present scenario are thriving in a very competitive situation and the global enterprises have the pressure of handling separate applications and systems where the data that crosses organizational departments and is prone to get fragmented, duplicated or worst of all become out of date. In such a situation even accessing and analyzing the data for the very basic questions becomes quite difficult. Furthermore answering the queries regarding performance metric or KPI for any business becomes the most tedious job, which will consume so much of time.
The basic question that any business has to answer like “who are profitable customers” or “what products are profitable” or “how many employees are required” or “is there disguised unemployment” become so difficult to answer with exact figures and accuracy to support the answers is not found.
What is master data management (MDM)?
Most software systems have lists of the data that are shared and used by several of the applications that make the system. The two basic words that often are together with the MDM term are “customer” and “product”. Rather for most the master data that a commonly agreed master data item like customer, product, location, employee and asset.
In any company or individual it is common to have unstructured data that come from different sources like emails, magazines, papers, corporate intranet portals, product specifications, marketing collateral, and PDF files. Any organization will have transactional data like sales deliveries, invoice, claims, monetary and non-monetary information that are of importance in the present also in future thus they need to be stored in a systematic manner. Thus here for systematic storage of data, MDM is required. The data so stored is there permanent and instantaneous in nature.
Metadata, data about another data. Can reside in in formal repository or in various other forms like XML documents, report definitions, column descriptions in a database, log files, connections and configurations files. Similar to meta data there is importance of the same for hierarchical data that stores the connections and relations between two data. Data that are connected if available in the same place the analysis or comparisons become simple and easy without consuming much of time. It is also important as discovering the relation between any data and master data will help in promoting the business. Reference data is a special master data that is used to categorize data and use it across master or transactional data.
Timely information when there are multiple sources of data and maintain data with updated to use for the growth of business is not easy and will require much of time, labor, and energy. Thus for the above requirements it was that master data management was put to use.