What Does Master Data Management Mean?
Master data management (MDM) is the management of specific key data assets for a business or enterprise. MDM is part of data management as a whole, but is generally focused on the handling of higher level data elements, such as broader identity classifications of people, things, places and concepts.
Techopedia Explains Master Data Management
Some theories of business management begin with the master data, valuable data units that can be linked to other data in various ways. Transactional data, data about official transactions that is often formalized in transactional documents, can establish relationships between master data units. A broader category of free data that is not codified in formal business documents can also be applied to a more detailed study of master data relationships. In addition, metadata can help to provide pointers for single data assets within a complex data storage infrastructure.
Like other kinds of data management, good master data management relies on excellent protocols, as well as sufficient hardware and software assets. Strategic data management will use guiding principles and time-tested methodologies to actively promote the efficient use of business data, which, as experts point out, is becoming more valuable to many businesses than physical assets like vehicles and equipment. Better use of data can make a company more appealing to investors, streamline operations to increase revenue, and even save a business from financial troubles. This is one of the reasons why a concept like master data management gets so much attention in today’s corporate world.