Master data refers to the core reference entities that define the key dimensions of a business — typically customers, products, suppliers, employees, and organisational structures — which are used consistently across multiple systems and processes. Master data management (MDM) is the practice of maintaining a single, authoritative definition of these entities and ensuring that all systems and reports that reference them use consistent, current definitions. Without master data management, the same entity may be defined differently across different systems, causing inconsistencies in reporting.
Why This Matters
Master data is the common reference language of the organisation. When a customer is referenced in a CRM system, a billing system, a service delivery system, and a financial reporting system, they need to be represented consistently — the same entity, the same hierarchy, the same attributes. When master data is inconsistent across systems, every analytical question that involves joining data from multiple sources produces reconciliation challenges. Master data management eliminates this problem by establishing a single, governed definition of key entities.
Where This Fits
This term sits within the Governance & Data Trust area of Performance & Control.
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