Master Data Management

Master Data Management (MDM) is also commonly referred to as Reference Data Management. Master Data Management refers to an information technology discipline focused on managing master data files that are shared by several information networks. The goal of MDM is provided different system architectures and functions with an effective way to organize and synchronized the use of this data.

For example is not unusual for large Fortune 500 companies to have enormous IT systems that provide information not only across business functions such as marketing, finance, and sales but also to geographic locations around the world. In addition, all this information must be available to corporate headquarters in order to make quick and accurate business decisions. Business success heavily relies on the ability to share this information appropriately across the various functions and geographies.

In some instances two or more corporate entities may have a need to share information across corporate walls if they are partners in a joint venture for example. It's important to do this in a manner that doesn't compromise sensitive corporate information that shouldn't be made available to the other corporations. The trade is between allowing easy access to information and preventing access to unauthorized information.

MDM is one of the three essential components in the popular Y computing model with the other two being Decision Support Systems (DSS), and Executive Information Systems (EIS). Master data management is needed to supply meta-data for aggregation and integration of transaction data in addition to the coordination of multiple ERP systems. Data Warehouse projects typically make use of MDM as well as decision support systems. Meta-data abstraction layers are sometimes proved by MDM systems for this reason.

Businesses typically face challenges such as integration, reconciliation, and dimension coordination constantly as systems technology advances each year. MDM solutions can help handle these challenges via a simple Internet-based MDM system that serves as the link between the operational & transactional systems, the performance management systems, and corporate intelligence.

In an effort to meet their unique business requirements, most corporations implement their own unique hybrid mixture of CRM, business intelligence, financial planning & reporting, ERP, and any other systems that may be required to meet corporate objectives. Each system manages information separately from the others yet at the same time each system requires similar dimension information to achieve peak efficiency. To support consistent reporting that complies with corporate standards, master data management software integrates the master data across all systems including data warehouses, finance, operations, and corporate intelligence.

Many business enterprises have been forced to re-examine their master data management system due to recent legislation and changes in international accounting standards. To relieve some of the strain on IT budgets and personnel, many corporations are looking at ways to empower system users such that they have the ability to create and maintain master data, obtain the proper security releases, and make the information available to business systems in a matter of minutes.

Harry Gene owns and operates http://www.master-data-management-hub.com Master Data Management