Master Data Management
Master data management (MDM) refers to the programs, technology, processes, tools, and people that collectively maintain accuracy and consistency in an organisation’s official shared data assets or master data. Master data is an organisation’s core data that helps organisations in conducting their daily business operations. It includes detailed information about products, services, customers, financial structures, assets, suppliers, hierarchies, details of accounts, and several other categories of business data.
MDM combines business and IT resources to ensure that business applications have access to precise, uniform, coordinated, and up-to-date data to keep processes running smoothly. A robust MDM strategy is comprised of six distinct facets, as mentioned below.
- Governance: Governance involves defining specific aspects of the MDM strategy by the cross-functional MDM team.
- Measurement: Regularly measuring and assessing data quality is an important part of an MDM program. It ensures that established goals are met and areas for improvement are identified.
- Organisation: Organising the right people in the right positions, such as data owners and data stewards, across the MDM program is an invaluable part of the process.
- Policy: Establishing a set of policies, requirements, and standards for the MDM program to comply with ensures a robust MDM strategy.
- Process: Establishing clearly defined procedures and protocols for handling master data throughout the data lifecycle ensures consistency at all stages of the MDM program.
- Technology: This includes the master data hub and all the associated technology that enables MDM.
Once a MDM program is in place, it is important to apply it to all of an organisation’s master data. While this can seem like a daunting and expensive task, a thorough MDM strategy will surely pay dividends in the long run.