Master data management definition

What is the best master data management definition? Master data management (MDM) is the set of practices, processes and enabling technologies to build a single, accurate and authoritative view of an object or entity, 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.