Master Data Management

Authored by:Chintan

What is Master Data? Most of the IT organizations have their data dispersed and stored at various locations. But the data is shared and used by several of the applications that make up a data warehouse. For example, an ERP system has data from Customer Master, Item Master and Account Master. The master data is one of the key assets of any company.

Need of Master Data Management: Since master data is used by multiple applications, an error in master data can cause errors in all the applications that use it. For example, all important documents, bills, checks are sent to the wrong person because of an incorrect address in Customer Master. Similarly, an incorrect price in Item Master can be a marketing disaster for an organization. An incorrect account number in an Account Master can lead to huge fines. To overcome such hazards, maintaining high quality and consistent set of master data is necessary for all organizations.

What is Master Data Management (MDM)? The technology, tools and processes required to create and maintain consistent and accurate lists of master data is known as Master Data Management. MDM is a continuous, iterative process. There are many factors considered for MDM which involves requirements, priorities, resource availability, time frame and the size of the problem.

MDM Life Cycle: MDM project involves many stages as follows:
1- Identify sources of master data.
2- Identify the producers and consumers of the master data.
3- Collect and analyze metadata about master data.
4- Appoint data stewards.
5- Develop the master-data model.
6- Choose a toolset.
7- Finalize and receive approval for the process.
8- Design and implement the process.
9- Test the master data.
10- Modify the producing and consuming systems.
11- Implement the maintenance processes.

Conclusion: In recent times, creating and maintaining accurate and complete master data has become a business imperative. Both large and small businesses must develop data maintenance and governance processes and procedures, to obtain and maintain accurate master data.