Master Data Management (MDM) refers to the process of creating and managing data that an organization must have as a single master copy, called the master data.
MDM is important because it offers the enterprise a single version of the truth.
Without a clearly defined master data, the enterprise runs the risk of having multiple copies of data that are inconsistent with one another.
Master data can include customers, vendors, employees, and products, but can differ by different industries and even different companies within the same industry.
Master Data Management is only applied to entities and not transactional data
FOUR TYPES OF DATA
Master data are the critical nouns of a business and fall generally into four groupings: people, things, places, and concepts.
For example, within people, there are customer, employee, and salesperson. Within things, there are product, part, store, and asset. Within concepts, there are things like contract, warranty, and licenses. Finally, within places, there are office locations and geographic divisions.
Transactional : This is data related to sales, deliveries, invoices, trouble tickets, claims, and other monetary and non-monetary interactions.
Unstructured : This is data found in e-mail, white papers like this, magazine articles, corporate intranet portals, product specifications, marketing collateral, and PDF files.
Unstructured : Metadata—This is data about data and may reside in a formal repository or in various other forms such as XML documents, report definitions, column descriptions in a database, log files, connections, and configuration files.