Overview of Data Management

Unlike transactional data, which is continually changing, master data is the static reference data that describes products, customers, and other information assets and their properties. Master data management (MDM) is the set of practices, processes and enabling technologies to build a single, accurate and authoritative view of these assets, without forcing every department, business unit and external party to use the same application or format.
  

The Data Challenge Facing Businesses Today

Unfortunately, in most organizations today, master data is duplicated and scattered across multiple systems and applications. As it evolves independently, it becomes unsynchronized and error-prone, preventing decision makers from having a single, unified view of their data.

For instance, a retailer might classify a large “midnight navy” V-neck wool sweater vest in its ERP system as “MN Vneck LG 008.” But the same item might be stored as “MidnNavy 876 Wool V-neck Lg.” in its inventory control system. Adding to the confusion, the manufacturer supplying the retailer might have the item classified as “9987 VN swtr wl LG” in its supply chain management system.

This kind of disconnect has a tremendous impact on businesses performance in virtually every industry. It creates costly inefficiencies, faulty information and missed revenue opportunities — factors that lead to increased customer attrition, eroding margins, shrinking market share, poor regulatory compliance, increased business risk and longer time to market.
 

MDM Decouples Master Data from Consuming Applications

The solution to this common yet costly dilemma is to decouple all master data from the consuming applications and business processes and manage it centrally through a core MDM platform — a platform that then feeds the various consuming systems and processes individually.

This approach provides you with a single, consistent view of product master data across the enterprise and supply chain, without forcing every department, business unit and supplier to use the same system or data format. It also allows you to eliminate the need for individually maintained data silos, while ensuring one version of the truth across all divisions, departments and channels.

Going back to the previous example, all systems within the retailer’s organization would show the same sweater as “MN Vneck LG 008.” When exchanging data with its supplier, the retailer would be able to maintain the same reference data without forcing the supplier to change its item classification, thus avoiding errors, lost productivity and incorrect orders.

Product Information Management (PIM) and Product Data Management

Product information management (PIM) — also known as product data management, product MDM or MDM of product data — is a specific domain within the broader MDM discipline.

As defined by Ventana Research, PIM encompasses both the processes and technologies required to manage data about products, items or materials enterprise-wide. It also includes all the steps and supporting information management technologies needed to produce complete, consistent and reliable product records.

PIM enables efficient management of both structured and unstructured data — such as product-related rich media — on the web and across all print media. As such, it often includes catalog management processes, catalog content management, digital asset management and web content management related to products and promotions.