Master Data Management

A company's master data must be maintained uniformly, centrally and across departments to enable smooth business processes. Master data management helps with this.

Master data management (MDM for short) encompasses the handling of important basic data (master data) of a company. Master data is static reference data or basic data on company-relevant objects. This includes, for example, customers, employees, products, suppliers, locations or inventory. Master data can be used by several areas of a company and is therefore highly relevant for business processes.


The goal of a master data management system is to break down, relate and link heterogeneous data silos. This gives the company a comprehensive view of its products, suppliers and customers from which informed decisions can be derived.  

Strictly speaking, a PIM (Product Information Management) system is an MDM system for product data, a CRM (Customer Relationship Management) system is a master data management system for customer data. Objects that can be integrated into an MDM system and thus create links to the product data are, for example, inventory data of products in a warehouse; product ratings and SEO key figures in a web shop; the suitability of certain products for customer (groups) and, if applicable, individualised product information or also parts lists, recipes or components of individual products. 


Thanks to cross-system data reconciliation and synchronisation of master data in the Master Data Management System, multiple data maintenance is avoided. On the one hand, this leads to time savings in data maintenance and, on the other hand, to higher data quality through the centralisation of data governance. Data exchange between departments and colleagues is facilitated, as is the provision of data in different platforms. Thus, Master Data Management allows a 360° view of customers, suppliers and products, on the basis of which fast reactions and high-quality business decisions can be made. 

Although the relevance of MDM increases with the number of data, its use is also recommended for small and medium-sized enterprises. 

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