Master Data & Master Data Management
One set of reference data to control the entire end to end process by incorporating rules, standardising input and removing duplication.
Master data represents the ‘objects’ which are agreed on and shared across the company. It can cover relatively static reference data, transactional, unstructured, analytical, hierarchical and meta data. It is the primary focus of the Information Technology (IT) discipline of Master Data Management (MDM).
Master Data to Power Transactions
While master data is often non-transactional in nature, it is not limited to non-transactional data, and often supports transactional processes and operations. For example, Master data may be about: customers, products, employees, materials, suppliers, and vendors, and it may also cover: sales, documents and aggregated sales.
Linking All Transactions with a Common Point of Reference
Master data management (MDM) is a comprehensive method of enabling an enterprise to link all of its critical data to one file, called a master file, that provides a common point of reference. When properly done, master data management streamlines data sharing among personnel and departments. In addition, master data management can facilitate computing in multiple system architectures, platforms and applications.
Quality Control & One Version
At its core, Master Data Management (MDM) can be viewed as a “discipline for specialised quality improvement” defined by the policies and procedures put in place by a data governance organisation. The ultimate goal being to provide the end user community with a “trusted single version of the truth” from which to base decisions.
Drive Process & Standards
Master data management (MDM) comprises the processes, governance, policies, standards and tools that consistently define and manage the critical data of an organisation to provide a single point of reference.
Incorporate Rules, Eliminate Incorrect Data
In computing, a master data management tool can be used to support master data management by removing duplicates, standardizing data (mass maintaining), and incorporating rules to eliminate incorrect data from entering the system to create an authoritative source of master data. Master data are the products, accounts and parties for which the business transactions are completed.
Master data management has the objective of providing processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting and distributing such data throughout an organisation to ensure consistency and control in the ongoing maintenance and application use of this information.
Eradicate Different Data Sets & Manual Input
At a basic level, master data management seeks to ensure that an organisation does not use multiple (potentially inconsistent) versions of the same master data in different parts of its operations, which can occur in organisations that use multiple software applications from different vendors across different sites, even different teams, i.e. Accounts, Sales & Operations.
A typical example of poor master data management is the scenario of a company at which a customer has set up and account, this account is duplicated in both CRM and accounting application with different contacts, locations and pricing for services, when the said services take place confusion could reign with getting to sites, accessing locations and billing the correct people with mistakes in invoices, which could not just be costly to rectify in administration time but also could jeopardise the customer relationship.
Source: Wikipedia; SAP