A Brief on Master Data Management Architecture

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By: Manish Shewaramani

A Brief on Master Data Management Architecture

Master Data Management (MDM) is a set of tools and structural processes with a singular objective to organize and maintain data across a corporation or an enterprise. MDM aims to create a single version of truth for all the enterprise’s data. Explore about the Master Data Management architecture that helps manage the data in a single repository.

It is often used in organizations that have complex business processes and need to ensure that there are no duplicates in their databases, or when they need to integrate different systems.

MDM also helps with data processing as it provides an organization with an understanding of what data needs to be processed, where it resides, who manages it, and how it gets processed.

What is Master Data?

Master data management (MDM) is a process and technology used to manage the ever-growing volume of data in an enterprise. It allows organizations to have a single, 360-degree view of their customers, products, suppliers, and any other important data sets.

While MDM has been around for quite some time, it has become more important in recent years as the volume of data has increased exponentially. This has led to organizations struggling to keep up with the sheer volume of data, let alone make sense of it all. MDM is an essential part of any organization that wants to be able to effectively manage its data.

Master data is the core of any business, it is the data that provides the blueprint of how a company operates. It includes all the necessary information about an organization’s customers, employees, products, and services.

What are The Different Types of Master Data?

Here are the different master data types you need to know:

Customer Master Data

This type of master data contains information about an organization’s customers such as name, address, phone number, etc.

Employee Master Data

This type of master data contains information about an organization’s employees such as their ID number, salary, and department.

Product Master Data

This type of master data contains information about an organization’s products such as their features, price, etc.

Service Master Data

This type of master data contains information about an organization’s services such as their locations, hours, and contact details.

Why Master Data Is Important?

  • It is the foundation for all business processes
  • Enables effective decision making
  • Supports regulatory compliance
  • Reduces IT costs

The main objective of Master Data Management is to ensure that all data in an organization are processed consistently and are available at any time by authorized users. The key advantages of Master Data Management include:

  • Improved customer service
  • Improved decision making
  • Improved customer loyalty
  • Reduced costs
  • Increased market share

What is Master Data Management (MDM)?

Master Data Management is a process of managing and governing data that provides a single, consistent view of an organization’s critical data. It is a framework for organizing, storing, and maintaining the accuracy and integrity of an organization’s master data.

Visit What is Master Data Management (MDM)? to get exclusive insights into the potential of master data management that helps you understand how MDM empowers your data-driven business operations.

Why Does Your Business Need a Master Data Management?

Businesses need to have MDM because it can help them improve their data quality, which can lead to better decision-making, increased efficiency, and reduced costs. Additionally, MDM can help businesses keep their customer data safe and secure.

There are many different types of Master Data Management architecture and technologies available. The most common type of Master Data Management architecture is the hub-and-spoke model.

In this model, a central hub stores all of the organization’s master data, while each individual spoke maintains its own copy of the data. Master Data Management Architecture is a system of systems that can be implemented in one or more ways.

The goal of MDM is to make sure that the data in all systems are available, accurate, and consistent. The architecture consists of three layers: enterprise-wide layer, operational layer, and tactical layer.

Enterprise-wide Layer

The enterprise-wide layer includes all the master data related to the organization’s business processes and its products or services. This includes customer contact information, financial information such as pricing models or product cost structures, and organizational structure such as departments or teams responsible for various aspects of business operations.

Operational Layer

The operational layer includes master data related to day-to-day operations such as inventory levels for products or services on hand at any given time; orders; customers who have placed orders in the past; products that are currently on sale or discontinued.

Tactical Layer

The tactical layer includes master data related to specific projects and tasks, such as product development, marketing campaigns, regulatory compliance, or typical transactions performed by a specific business unit like a call center.

Another type of MDM architecture is the distributed model. In this model, each node in the system maintains its own copy of the master data. This architecture is often used in systems that need to be highly available or that need to support real-time updates.

Master Data Management provides many benefits for businesses, including improved customer service and increased profit margins. Businesses often have the same data stored in different places.

This means that there is no centralization of data, which leads to issues with trust and accuracy. Master Data Management solves this problem by storing all of the company’s data in one place, making it easy for employees to access and use the data they need.

MDM also provides a single source of truth for all business information. This means that if any changes are made in one place, they will be reflected in every other part of the organization. This leads to the following:

  • Improved customer experience due to accuracy and consistency
  • Improved operational efficiency through increased visibility into data
  • Reduced risk due to reduced complexity

Don’t miss visiting Master Data Management (MDM) System – Why Do You Need it? to unveil more benefits of MDM. It helps you understand the essence of master data management system for your business.

Benefits of Master Data Management System

There are many benefits of Master Data Management (MDM), but three key benefits are:

1. Improved data quality

MDM can help improve the overall quality of your organization’s data. This improved data quality can lead to better decision-making, reduced costs, and increased efficiencies. The improved data quality that results from implementing MDM can have several benefits for an organization.

First, it can lead to better decision-making, as accurate data is essential for sound decision-making.

Second, it can help to improve customer satisfaction, as customers are more likely to be satisfied with products and services when they are based on accurate data.

Finally, it can help to reduce costs, as organizations can avoid the wasted time and money associated with using inaccurate data.

2. Increased efficiency

When it comes to data, more is not always better. Having too much data can actually lead to inefficiencies and decreased productivity. This is where Master Data Management (MDM) comes in.

MDM is a process for managing and consolidating data from multiple sources into a single, centralized repository. This allows businesses to have a single view of their data, which can then be used to make more informed decisions.

The benefits of MDM are numerous, but one of the most important is increased efficiency. With all of your data in one place, you can easily access the information you need, when you need it. This can save a lot of time and effort that would otherwise be spent searching through multiple databases or Excel spreadsheets.

Additionally, MDM can help reduce errors and duplications by ensuring that only accurate and up-to-date information is being used. Overall, implementing an MDM solution can help increase efficiency across your organization by giving you quick and easy access to the data you need. In today’s fast-paced business world, this can be a major competitive advantage.

3. Improved customer satisfaction

With MDM in place, customers can be confident that they are receiving accurate and up-to-date information from your organization. This improved customer satisfaction can lead to increased sales and loyalty.

Organizations that implement Master Data Management (MDM) see a notable improvement in customer satisfaction ratings. A recent study showed that customer satisfaction scores increased by 4.6% on average after MDM was implemented.

There are several reasons why MDM can lead to improved customer satisfaction. First, MDM ensures that accurate and consistent data is available across all systems. This means that customers will no longer be frustrated by inaccurate information or duplicate records.

Secondly, MDM can help organizations better understand their customers. By consolidating customer data from different sources, organizations can get a complete picture of who their customers are, what they need, and how best to serve them. This leads to more personalized and effective customer service.

Improved customer satisfaction is just one of the many benefits of Master Data Management. If your organization is looking for ways to improve its customer service rating, MDM is definitely worth considering.

If you are excited to explore more benefits of master data management, don’t miss visiting A Brief About MDM & How It Fuels Your Business Success. It helps organizations to boost productivity by offering access to the updated master data across the organization.

Architecture Models of Master Data Management

Master Data Management Architecture is critical to business success. In this blog post, we will explore the different models of MDM and how they can be used to support your business. We will also touch on the benefits and challenges of each model.

1. Registry Architecture

An MDM Registry is a central repository that stores information about data objects and the relationships between them. It provides a way to track changes to the data over time and maintain consistency across disparate systems.

The Registry Architecture of an MDM solution defines how the different components of the system interact with each other and with the outside world. It includes both logical and physical architecture.

The logical architecture defines the functionality of the MDM system and how it is organized. The physical architecture, on the other hand, describes the hardware and software components that make up the system and how they are deployed.

2. Hybrid Architecture

In hybrid architecture, an MDM system is deployed on both on-premises servers and in the cloud. This allows organizations to take advantage of the benefits of both deployment models.

On-premises MDM systems are typically more secure, as they are not connected to the public internet. They can also be easier to manage, as all data is stored locally. However, they can be more expensive to set up and maintain.

Cloud-based MDM systems are typically less secure, as they are connected to the public internet. They can also be more difficult to manage, as data is stored remotely. However, they can be less expensive to set up and maintain.

3. Repository Architecture

Different models can be used when architecting an MDM repository. The three most common models are the hub, spoke, and hybrid models.

The hub model is the most basic and is made up of a single central repository that contains all of the data. The spoke model is more complex and consists of multiple repositories that each contain a subset of the data. The hybrid model is a combination of the previous two models and consists of both a central repository and multiple satellite repositories.

The type of model businesses needs to use will depend on the specific needs and requirements of the business. However, all three models have their advantages and disadvantages that should be considered before making a decision.

Master Data Management in Business Analytics

Master Data Management (MDM) is an architecture that helps to manage data in a business. MDM is an important part of Business Analytics and Business Intelligence (BI). MDM can be used for a variety of purposes. It can be used for data integration, data quality and compliance, data federation, master records management, and more.

Master Data Management is the process by which organizations maintain the consistency, accuracy, and currency of all their business-related data throughout the enterprise – from customer information to product specifications to financial details.

Master Data Management enables organizations to leverage this information to make better decisions faster while reducing costs and improving customer service levels.

Master Data Management Vendors

Due to the high demand for MDM systems by enterprises around the world, the MDM market keeps evolving rapidly. MDM market is very wide due to its capability of MDM on handling different data types, types of technologies being used, and ability to handle different front-end requirements for data quality.

In the market, you can find so many vendors offering seamless MDM solutions picking the right vendors should be on basis of MDM services covering all the specific requirements of your business.

Here are the lists of top MDM vendors in the market.


The MDM product offered by IBM supports all data. With the help of the MDM solution provided by IBM, enterprises can able to deliver a comprehensive data platform including big data, and so.

The Master Data Management System of IBM offers supreme data quality and data governance along with seamless integration features. IBM’s MDM product includes MDM advanced edition, the collaborative edition, and the Enterprise Edition.


The Informatica Company is well-known for making ETL (Extract, Transform, and Load) tools. However, they do provide a wide range of data management products along with master data management solutions. Since, the Informatics Company acquired Heiler, producing MDM and other data-quality products.

In addition, Informatica itself owns a multi-domain MDM solution capable of handling customer and product information. Now, they are turning their focus mainly on MDM products and trying to grab a strong position in the MDM platform.


Since 2012, the oracle company has had a big range of MDM products. Because of their success, they continue to invest in the MDM platform. Oracle mainly focuses on producing tools for managing product information and their tools are deployed along with the Oracle E-Business Suite (EBS).

However, the tools can also be deployed in a single stand-alone manner. When compared with all other MDM vendors, the data management solution offered by MDM has an unclear strategy and what kind of products it will keep.


SAP is a well-known provider of ERP solutions worldwide. They also provide seamless and flexible MDM solutions to their potential customers. The product Master Data Governance for Customers (MDG-C) of SAP mainly focuses on handling customer information.

In addition, the SAP product Netweaver Data Management is for data consolidation and data stewardship. Both the products of SAP are available on the HANA platform.

At the same time, the data management products offered by SAP are for SAP ERP customers. People can’t buy these products as stand-alone products from SAP.


Microsoft is not known for producing master data management tools. However, they keep expanding their SQL platform with the inclusion of master data services (MDS). The SQL server platform version 2012 from Microsoft has data storage and is highly flexible in deployment. This enables developers to make use of it for various applications.

Many master data management platforms are available in the market. More choices, more confusion. Selection of the right one is challenging for businesses. Credencys would like to help you choose the right MDM for your specific business and leverage master data management implementation.


Master Data Management (MDM) is the process of managing data about entities in an enterprise. MDM can be done at a central level or a decentralized level. Master Data Management Architecture (MDMA) is a set of concepts, processes, and technologies that are used to design and implement MDM solutions.

It is an umbrella term that covers all aspects of an organization’s data, from its structure to its processing. MDM also provides a single source of truth for all business information. This means that if any changes are made in one place, they will be reflected in every other part of the organization.

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