Master Data Management
What is Master Data Management?
Master data management (MDM) is the process of creating and maintaining a single, authoritative source of a company's core data entities, such as customer data, product data, employee data, supplier data, and other reference data. This unified view of critical business data is called the "golden record".
What can an MDM do?
Here are some key capabilities of MDM:
- Centralized Data Management: MDM provides a centralized platform to manage and govern master data, such as customer, product, or supplier information, ensuring data accuracy, completeness, and consistency.
- Data Integration: MDM integrates data from various sources, systems, and departments, harmonizing and consolidating it into a single, reliable version of truth.
- Data Quality and Governance: MDM enables data cleansing, validation, and enrichment processes to improve data quality. It also establishes data governance rules and policies to ensure data compliance, privacy, and security.
- Data Hierarchy and Relationships: MDM establishes relationships and hierarchies between master data entities, allowing businesses to understand complex data relationships and dependencies.
What is the difference between MDM and PIM?
While MDM and PIM (Product Information Management) are related concepts in the field of data management, they manage different types of data.
MDM focuses on managing all types of master data, which includes customer data, product data, employee data, and more. PIM, on the other hand, specifically focuses on managing product-related information, such as product attributes, descriptions, images, and specifications. As such, they come with features and functionalities tailored to their respective data domains and business requirements.