MASTER DATA MANAGEMENT

Master Data Management

Master Data Management

Introduction

Master Data Management (MDM) represents one of the latest hot topics in the information systems discipline. As a comprehensive and enterprise-wide approach MDM is meant to “provide organizations with the ability to integrate analyze and exploit the value of their data assets, regardless of where that information was collected”. The need for such an approach is reasoned in severe problems organizations face with master data quality. Decades of using and maintaining data in disparate data stores have led to a multitude of inconsistencies in data definitions, data formats, and data values, which makes it next to impossible for an organization to understand and use its key data. Problems like duplicate customer numbers, incomplete or missing attributes, deviations of actual values from denoted meta-labels, and the use of free text forms proliferate with a growing number of different systems and an increasing volume of data stored and maintained in these. A recent survey discloses that organizations expect data error rates of up to 30% (Cleven & Wortmann, 2010). Even worse are the results of another survey indicating that 83% of the companies polled have suffered significantly as a result of having poor master data quality.

Master Data Management

The MDM or the Master Data Management, which is also known as reference data management, includes all the methods, tools and processes to ensure that the data are identified and used without any risk. The Master Data Management encompasses all means to be a repository of quality as data cleansing, ensuring consistency, consolidation, updating, removing duplicates and the establishment of descriptive data reference to the company.

Corporate data warehouse is closely linked with the question of Master Data Management. Master Data is a key business data, which serve as a basis for making business decisions. This data is used by all processes, information Systems Company. In itself, the master data management can be reduced to a set of processes and tools to provide management and identification of key business data. Under the basic data refers to reference data, containing key information about the company's business (Berson & Dubov, 2007). They are not transactional data and are rarely changed. As a result, the essence of master data management is the collection, aggregation, transformation, and delicious main data. Due to the MDM, all divisions of the company have access to the same relevant data and have the opportunity to make more effective decisions. Typically, the data model MDM-system consists of three groups of entities: the participants (suppliers, customers), products (services, goods) and accounts. Even the integration of the two systems required to run complex processes of negotiation. This is the simplest case. Typically, the merger gives rise to at least a few new systems, sometimes more than a dozen. It is not easy. But it is well prepared MDM-system will reduce more than half the work, time and cost of integration.

MDM systems are used to match a variety of data information systems and their effectiveness depends on a number of steps. First, the efficiency depends on the definition of the source (s) master data. After collecting data from the sources held their transformation ...