Master Data


Master data is used widely throughout numerous business processes as it is about all the information that is considered to play a key role in the core operation of a business. In few words Master Data defines an enterprise.

Master data may include data about clients and customers, products, employees, inventory, suppliers, accounts and more and the relationship between them. Master data is typically shared by multiple users and groups across an organization and stored across multiple systems.


Master Data captures all the key information that the organization is agreed on about the meaning and their usage, therefore is important for both operational and analytical processes.


An example of how Master Data is important for an organization could be the introducing of a new product to the market, add new service for the customers, signing suppliers etc.


In order to execute properly this master data must be accurate and consistent.

For the Business process trustworthy data is a fundamental ingredient of meaningful analytics.

Most organization find difficult to identify maintain and use set of Master Data in a consistent way across the organization. This difficult is due the fact that many information systems have become increasingly complex as business and technologies change too rapidly in response to the pressures of growth.


All the Business should have an authoritative trusted source of master data otherwise the risk is that the business processes can become more complex to develop.


In most businesses, for example customers buy products. That means that exist a relationship between them that is a fact. This essential relationship is recorded as a transaction and if it has been coded properly will never change.

Master data provides a foundation and a connecting function that interacts and connects with transactional data from multiple business areas.

In order to run an organization more efficiently it is important the management of Data. Those three following factor play an important role:

  • The business policies
  • How the data is updated through the process
  • The technological tools that helps these processes



The main goals of Master Data are to support a shared foundation of common data definitions within the organization, to reduce data inconsistency within the organization, and to improve overall return. If it is done effectively, it is an important supporting activity for the organization.


Master Data Management can contribute significantly to business productivity improvement, risk management, and cost reduction.

There are some examples that can be listed to explain the benefit to apply Master Data Management as follow;

Comprehensive customer knowledge, that means that all customer activity is consolidating in a single source, which can then be used to support both operational and analytical process in a consistent manner.

Improved customer service to meet the customer expectation.

Consistent reporting, using the Master Data will be reduced the inconsistency from a report to another.

Improved competitiveness as helps organization to increasing agility and consequently the competitiveness.

Improved risk management through trustworthy and consistent financial information helps the business’s ability to deal promptly with enterprise risk.

Improved operational efficiency and reduced costs formulating a regular data management tool.

Improved decision-making by Master Data Management reduces data variability, which in turn minimizes data mistrust and allows consistency for business decisions.

Better spend analysis and planning helps to forecast future spending and reduction of cost and risk.

Regulatory compliance that is important for data quality and governance.

Increased information quality helps to monitor conformance.

Quicker results trough a standardized view of the information helps to reduce the delays associated with extraction and elaboration of data.

Improved business productivity in relation of how the business performs independently.

Simplified application development through the utilization of single functional service.





  • Smarter Modeling of IBM InfoSphere Master Data Management Solutions by Jan-Bernd Bracht et al. (2012)
  • Enterprise Master Data Management: An SOA Approach to Managing Core Information by Allen Dreibelbis et al. (2008)
  • Master Data and Master Data Management by David Loshin (2009)


Sabrina Titi – DBS – 10190537

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