Master Data Management (MDM): what master data is and how to start
Master data describes the core “things” of your company: customers, products, suppliers, locations. When every system holds its own version, nobody knows which is right. Master Data Management (MDM) aims for one reference version. This guide explains how to start without a large investment.
The problem: “customer” means different things
Sales has a company as one customer; billing has it three times under different names; support once, with an old email. Reports do not match and each area defends its own figure. Master data tries to prevent this.
Common styles
- Registry: the same entity is identified across systems without moving the data.
- Consolidation: data from several systems is gathered in one place to build the reference version.
- Centralised: the reference version is created and maintained in the master system, which distributes it to the others.
No style is best in the abstract: it depends on the number of systems and what you can change.
How to start in five steps
- Pick one domain (customers or products, not both).
- Define what an entity is in that domain and which fields are mandatory.
- Name a data owner and a data steward for the domain.
- Set matching and quality rules to detect duplicates.
- Measure: percentage of duplicates and complete fields, before and after.
Common mistakes
- Starting with the tool without agreeing definitions.
- Covering every domain at once.
- No owner to decide when two systems disagree.
Frequently asked questions
What is master data?
Data on core entities (customers, products, suppliers) shared across systems.
Do I need an MDM tool?
Not at the start: definitions, an owner and quality rules first.
Informational content, not legal advice.
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