What and Why MasterDataManagement(MDM)?

 What is Data?

           Data is different types of any useful information used for analysis and processing. Coming to Large scale application there is abundant of customer data available which is not processed, not analyzed may have duplicate records which leads to ambiguity for the enterprise.

Here comes the picture of Master Data.

What is Master Data:

        Many Software systems have list of data comes from different source systems to make up the system.

        So, the data from different source systems may have different data related to same customer which may be redundant, duplicate, unstructured, Transactional data, Meta data, Reference data, Master data...

(Image from Google)

            A Master Data can be defined as True/Unique/Golden Copy and Single record of data which is processed from different Source Systems(can be any Trust Worthy Source) and processed upon Survivor Ship rules(Will be discussed in coming blogs regarding MDM, As of now remember the terminology).

Why Master Data:

             The Primary objective is to maintain single and accurate record of the customer. As Master Data is used by different application's, an error or incorrect data in single applications leads to cause errors in all applications that uses master data. 

 Lets have an Example:

            A is the customer for XYZ Bank, he has Two loan accounts in the bank, assume having student loan and he came to bank for car loan and submitted documents for same with different present address.

            Now the A is having two accounts with 2 different data(Present address). So, here the 2 records will be present under the name of A.

    What's Wrong here?

               As A is still having Loan account with Bank, the Statements,Communication regarding account or anything related to that student loan account will be going to the old present Address where A is not living. This Leads to loss of data and miscommunication with customer.

    What can be corrected here:

               As A comes with car loan which is latest w.r.t bank records, the Existing records should be updated with the latest address.

             Now A is having 2 account with same data, that means a Single/Unique record will be there under A, and the easy for larger applications to Manage the Data and provide efficient solutions to customers.

What is Master Data Management(MDM):

               Master Data Management (MDM) is the technology, tools and processes that ensure master data is coordinated across the enterprise. MDM provides a unified master data service that provides accurate, consistent and complete master data across the enterprise and to business partners.

This is kind of intro towards MDM, will come up again with MDM architecture and types pf MDM available in market.

Hope you get the Basic understanding what and why Master Data Management(MDM).

Thanks for Reading  !!!