Master Data Management (MDM) systems are used for correlating data from various information systems in order to create a holistic view of customers, suppliers, partners, products, services, or accounts. By implementing these systems, it is possible to increase the efficiency of business processes and applications, and pave the way for transition to a Service-Oriented Architecture (SOA). MDM systems not only perform centralized operations on data, but also control the creation, access, management, and analysis of data.

MDM allows you to find features that are common to all systems and applications, and also supports different ways for these applications to handle and use master data. The system provides users with comprehensive tools to manage data that relate to various areas of activity and have different structures and usage methodologies. In this case, not only the data, but also data processing functions become centralized.

The efficiency of MDM systems depends on several actions: identifying sources of master data, transforming and normalizing master data, finding and correcting errors in master data. The prepared data can then be consolidated and stored in a database in order to subsequently be transferred to users of master data.

MDM is especially important for companies that expand their business through mergers and acquisitions. In this case, each of the companies to be merged has its own data, which leads to redundant information systems and a lack of a single data source. MDM can significantly reduce the labor, time, and cost of systems integration.


Advantages of the MDM system:

§    creation of a single information space

§    distribution of new or corrected data to all business applications

§    enrichment of customer/product records with information from third-party systems

§    identification and referencing of information on the same customers/products in different systems

§    checking for potential redundancies, analysis of similarities, removal of duplicates

standardization of accounts

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