Master Data Management
Master Data Management (MDM) represents a methodology for managing critical business data including so called single point of truth. Master data are shared between particular applications and business processes. Typical examples of master data are data about products, customers and vendors. Appropriate master data management brings benefits in data quality, elimination of duplicities, compliance with legal requirements, elimination of inefficiency and increase of quality of services, reporting and decisions.
ObjectGears MDM enables to create a complex master data model reflecting particular customer specifics. ObjectGears capability to catch and display also complex data relations, advanced integration features, solution of access rights, localization, scripting or workflow enable to meet the highest demands from the domain of Master Data Management.
Master Data Management system (MDM) helps to achieve master data consistency across the organization and its application portfolio. Suitable tool together with introducing corresponding processes helps to clarify roles and responsibilities, data ownership and achieving data uniformity and correctness in the whole information system.
Master data are data providing context to business transactions. They appear across the organization and systems. Unlike transactional data, they change slowly. In some cases they are almost static. Despite that question of data validity over time is one of the key tasks, that MDM system has to provide for. Reason for that is also the fact that most of applications do not truly solve data validity.
Concept of master data is sometimes understood in a more narrow extent and architects speak also about reference data. Let`s take a look at the comparison of both terms:
| | Master data | Reference data |
| Focus | Business entities themselves | Classification and categorization of business entities |
| Examples | Customers, products, vendors | Types, states |
| Change in data | Without impact on process (Introducing a new vendor or customer does not change processes.) | Associated with change of processes (Introducing a new type of vendor relates to change in processes.) |
Both master data and reference data can be addressed in the same way from the Master Data Management systemu (MDM) point of view.
Master data architecture, especially where are data entered and maintained and how they are distributed, often reflects heterogenity of systems and their inability to take over master data from an external source. This leads to solutions demanding on implementation and subsequent maintenance. Same like in other architecture topics, we should strive for a simple, clean and transparent access to master data wherever possible. More complex, compromising concepts (master data coexistence, consolidation...) should be introduced only when needed.
Master data management examples
- products - your protfolio of products, relation to markets, customers groups, campaigns, internal processes, distribution channels and supply chain
- customers - or business partners in a broader sense (agents, mediators, external points of sale), segmentation, relation to products, strategies etc.
- vendors - portfolio of parties you work with to be able to produce and deliver your products
- currencies - list of currencies you work with in your systems
- materials, colours
- cost centers, profit centers, budget items, business units
- strategic objectives, projects, programmes, portfolios
- ...
All these data can be found (maintained or referred to) in multiple applications and data sources. Master data management system will help you to organize them and keep them in proper shape for use across your organization.
Watch the video demonstrating practical aspects of a daily work with Master data. The usability of the solution is key in a successful implementation of Master Data Management system in a company. You can experience also with systems for master data management that a renowned company will sell you something that will be difficult to live with as a daily bread. How to avoid this? Here is couple of tips for what to be careful about and what to ask the vendors. Let`s look at creating master data tables, managing records validity, mass updates or graphical representation of validity.
Take a look at our article Effective Master Data Management.