What is Master Data Management?
to manage master data management and want practical standards and best
practices for information management and business intelligence
governance and accountability?
is data management?
Management is a sub-set of information management that governs
organization and control of the structure and design, storage,
movement, security and quality of information.
is master data?
data is reference data created in one application and sometimes used by
other applications. Customer and product information is frequently
called reference data but the term can really apply to pretty much any
is master data management?
data management is the set of policies, standards and business and
technology processes created to ensure that reference data
(master data) is maintained
correctly by the system of record and
timely manner with each other application that needs to reference it.
of a human resource management information system. This application may
employee data and maintain information about each position
employee may occupy within the company.
A sales application may
need to know which employees are assigned to each sales territory.
Frequently, the employee
data is created a second time in the sales
application and the two applications are seldom synchronized.
management is all about, getting the right information, in the right
hands, at the right time, to make the right decision. The trend today
is to get a consolidated
look at information to help manage things like
customer relationships, products, and inventory.
Much of what we
call master data is stored in legacy systems, which are
environments—These systems do not talk to each other easily.
about customer relationship management (CRM)?
applications were originally thought to be the answer too much of the
master data issues but they also contribute partly to the problem.
systems hold part of the customer reference data but we still need to
get this information into a usable format that can be shared with
other customer related applications like billing and accounts
about enterprise resource planning (ERP)?
ERP systems integrate many data in one location, they still
sometimes look like a bigger “silo”. Frequently it requires ERP
“experts” to fully understand the master data. Just like
and CRM, ERP systems require new data movement solutions to extract
master data and share it with other applications.
MDM options are available?
Organizations have a “make” or “buy”
Several leading vendors offer MDM solutions including
IBM, Oracle, Sun MicroSystems, Siperian and others.
Each solution has strengths and weaknesses that should be carefully
evaluated to ensure a "good fit”
What standards and best practices are required?
The following must be considered before embarking on an MDM solution
be involved in any MDM decision.
much of MDM
involves technology the information owners need to be involved in any
decisions concerning the sharing, cleansing, distribution and
protecting of common data.
- An MDM business
should be completed showing the cost/benefit and feasibility of
purchasing an MDM Solution.
solutions are expensive. They
easily cost well upwards of $1,500,000
and that does not include the
specialized consultant support that will be required to help with
- Master data management is a sub-set of data
management, which in turn is a sub-set of information
management framework must be successfully implemented
within an organization as a foundation for MDM solution;
implementation of a corporate management process
that governs accountability for the structure and design, storage,
movement, security, quality, delivery and usage of information required
for management and business intelligence purposes, prior to commencing
an MDM solution
data management is a sub-set of data management, which in turn is a
sub-set of information management. An information
management framework must be successfully implemented within an
organization as a foundation for MDM solution.