Master Data Management(MDM), its Architecture & Products

Case Scenario

Suppose Customer A buys a product X at a store S1 ON 1st January 2023 at 1800hrs for 20 pounds converted to $26. This statement in itself contains some data i.e

(i) Customer, Product and Store. In data terms, we would call this enterprise data — data that is part of an organization’s day to day activities and rarely changes.

(ii) Time & Amount are frequently changing data types

Customer, product and store are examples of Master Data. Time & Date come in as transactional data. Amount on the other hand brings in a conversion aspect which requires one to have reference data i.e. the conversion rates.

Master Data management

MDM is a technology enabled discipline under the data management umbrella, in which business and IT work together to ensure uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official shared master data assets.

What happens if you don’t have a proper MDM?

One day you get a call from a marketing executive from Bank A and you are given an offer to apply for a new credit card. However, you get surprised why the call is being directed to you yet you already have a credit card from the same bank. When you inform the executive that you are an existing member, she gets surprised saying she wasn’t aware and hangs up the call. In such a case, what might have happened could be a disconnect between the marketing department database and the customer service database. Another possibility could be differently recorded names. You could be recorded as John D in the customer service database while the marketing executive referred to you as Mr. Deer.

In this case, master data management would come in very handy. Instead of having different data silos, the bank would have created a common database where it manages all its customer data and downstream departments pull their data from the same central place. The marketing executive would have known that John D and Mr. Deer is the same person and is an existing customer. Instead of offering a new credit card, the narrative would have changed to an up-sale on things like credit card limit increase or availability of customer promotions.

MDM Architecture

Master Data Management (MDM) is an essential discipline ensuring data consistency and accuracy across an organization. It operates through a centralized repository, integrating various data sources while maintaining data quality through governance frameworks and data cleansing tools.

The absence of MDM often leads to disjointed databases, resulting in disconnected customer information. For instance, in a scenario where a bank’s marketing department is unaware of existing customers, duplicate records, or mismatched information might occur. This disconnect impacts customer service, marketing, and operational efficiency.

Implementing MDM resolves these issues. It establishes a unified data hub where all departments access consistent, up-to-date customer data. With a centralized source of truth, businesses avoid inconsistencies and duplicate records. This cohesive database enables personalized customer interactions, accurate decision-making, and streamlined operations.

MDM architecture includes a central repository, data governance frameworks, integration layers, data quality tools, and metadata management. This framework ensures data accuracy, compliance with regulations, and operational efficiency, empowering organizations to make informed decisions and offer enhanced customer experiences.

Here is a link to my projects on GitHub. You can also follow me on LinkedIn.

Thanks for the read🙂.Do clap👏 if find it useful.