Master Data Management (MDM)
Master Data Management (MDM) centralises multiple data sources throughout the organisation into a centrally managed system.
Enable the integration of business and IT to ensure the uniformity, accuracy stewardship, semantic consistency and accountability of the enterprise’s official shared master data assets.
MDM entails the management of non-transactional data and typically has the following key characteristics:
Management of relationships and hierarchies between data groups
Empowerment of data stewards, not IT, to ensure data quality
Provides an accurate source of data for other systems
Enhances data security
What is Master Data Management?
- The management of non-transactional data.
- Managing relationships between data groups.
- Managing hierarchies within data groups.
- Empower data stewards, not IT, to ensure data quality.
- Provide an accurate source of data for other systems.
- Even though Master Data manages non-transactional data, it is almost always used within transactions.
- Data Stewards help manage the data.
- Centralisation of multiple data sources throughout the organization into one centrally managed system.
- Increased accuracy and efficiency of managing distributed data.
Master Data Management Process
Data profiling clarifies the structure, relationship, content and derivation rules of data, which aid in the understanding of anomalies within metadata. Data profiling uses different kinds of descriptive statistics including mean, minimum, maximum, percentile, frequency and other aggregates such as count and sum.
The aim of the data cleansing phase is to remove incorrect, incomplete, duplicate and improperly formatted data. During the cleaning phase exceptions within transactions are highlighted, workshopped with business, and inconsistencies are removed.
Data artefacts in the master list can contain elements such as Product, Customer and Inventory items.
Monitoring & Maintenance
The data quality dashboard enables business to effectively measure the outcome of quality related efforts. Managing master data is an ongoing process. Monitoring and maintaining inconsistencies within data should be done on a frequent basis.
- Organise data correctly
- Increase productivity
- Enable accurate decision making
- Reduce risk of data loss
- Ensure cost efficiency
- Centralisation of multiple data sources throughout the organisation into one centrally managed system
- Increased accuracy and efficiency of managing distributed data