Mastering Enterprise Data: A Practical Guide to Master Data Management

In large enterprises, fragmented data across many applications makes answering basic business questions difficult.

What is Master Data?

Master data (Master Data) is standardized, shared, unique, stable data used across multiple systems, such as customers, suppliers, materials, employees, departments, and projects.

Why Master Data Management?

Proper MDM ensures consistent data sharing, reduces integration cost, prevents errors, and supports digital transformation.

MDM Content: Two Systems, One Tool

The MDM framework consists of a standard system, a governance system, and supporting tools.

1. MDM Standard System

Defines business standards (coding, classification, description) and data models (logical and physical).

Coding rules: e.g., 8‑digit numeric material codes.

Classification rules: grouping data by business attributes.

Description rules: naming conventions for clear data definitions.

2. MDM Governance System

Establishes organization, policies, processes, applications, and evaluation to oversee MDM.

Organizational layers: decision layer, management layer, execution layer.

3. MDM Process

Includes business management, standard management, and quality management processes covering the full data lifecycle.

4. MDM Implementation Steps

Four phases: current analysis, planning, solution design, platform deployment, following the typical six‑step project lifecycle (initiation, planning, analysis & design, implementation, testing, operation).

Key activities: data identification, team formation, integration design, coding design, attribute standardization, control process design, historical data cleaning, data switching, production & maintenance strategies, distribution methods, and integration.

Images illustrate the framework and key steps.