Master Data Management (MDM)

Core Concepts

Definition

Master Data Management (MDM) is a critical process that involves managing, centralizing, and controlling the essential business data that an organization shares across multiple systems.

Detailed Description

Master Data Management (MDM) refers to a comprehensive approach used by organizations to centrally manage the key data entities within the enterprise. This process ensures accuracy, consistency, and accountability within shared master data, which often includes customer, product, employee, and vendor information. MDM establishes a single authoritative source of truth and is central to effective decision-making, regulatory compliance, and operational efficiency. In an ERP environment, MDM is crucial for integrating business processes and ensuring data is accurately reflected across different departments.

Key Features

Centralized Data Repository
Data Governance
Data Integration
Data Quality Management
Hierarchy Management
Metadata Management

Common Modules

Data Governance

Framework and tools to establish data policies, standards, and accountabilities.

Data Quality Tools

Modules that perform data cleaning, validation, and enrichment.

Popular Implementations

Informatica MDM

An MDM solution offering powerful data management capabilities to streamline and enhance processes across various industries.

SAP Master Data Governance (MDG)

A tool that provides central governance of master data across the ERP landscape with comprehensive data quality management features.