In recent years, new actors such as social media and mobile devices have emerged, in addition to a strong trend towards service-oriented architecture (SOA) or software as a service (SaaS). This diversification of sources and applications makes it difficult for companies to obtain reports and control all documentation. At this point, MDM becomes relevant.
What is it and what are its main characteristics we will consider in this article? And let’s start with the fact that you can always use the services of master data management consulting.
What is MDM?
Let’s start with the most important thing, namely the definition. Behind these abbreviations is the expression “Master Data Management”. In short, it’s a set of methods, utilities, and templates that allow companies to bring all their critical data together in one place: the master file.
MDM ensures that the various lists of master data, also known as master data, are fully consistent. In other words, MDM methods allow you to eliminate any mismatch between different types of critical data.
Master data management practices are fundamental to maintaining data consistency. MDM practices ensure that information remains standardized, clean, and properly integrated. The use of master data makes it easier to work with different applications and platforms.
What types of data exist in Master Data Management or MDM?
As soon as MDM is launched, all data is automatically integrated into it. Naturally, not all companies will need the same information. However, no matter what industry they are in, most businesses store the following types of data.
Unstructured data
This is information that comes from sources such as email, digital documents, company intranets, or other marketing data.
Transactional data
In this case, we mean those data that have something to do with the operations of the company. This is usually information coming from sales, deliveries, or cash transactions. Data from invoices, deliveries, or claims, among others, are also included.
Metadata
When we talk about metadata, we mean information about other data. They can be found in the official repository or XML files. Descriptions of fields in database or transaction log files, also called logs, are also metadata. In short, metadata is data that is related to other data.
Hierarchical data
Hierarchical data is very important in MDM. They store relationships between other data. With their help, you can define a hierarchy between different elements of the database.
Basic data
Master data is the company’s critical data and is usually associated with four core concepts: people, things, places, and concepts. Within each of these, other subject areas or entity types can be found. To better understand this, let’s take an example. The client can be in the “people” field. However, the same can be done with an employee. And this segmentation can be even deeper if the company has, for example, privileged customers and minor customers.
Master data management is a really important technique. Implementing MDM in your company has clear benefits that add to the importance of these methodologies. Moreover, in some cases, it can be said that MDM is not only important but also mandatory. To automate workflows, you can also order custom eCommerce development.
