Master Data Management (MDM)

Last updated Feb 27, 2024

Master Data Management (MDM) is a crucial methodology for centralizing Master Data. It serves as a pivotal bridge between business professionals, who are the primary custodians and experts of this data, and data specialists.

MDM is recognized as a preferred tool for ensuring data uniformity, accuracy, stewardship, semantic consistency, and accountability, particularly regarding enterprise-scale Data Assets.

See also: Master Data Services (MDS).

A list of notable MDM tools:

• Semarchy
• Informatica
• Ataccama
• Reltio
• Profisee
• Stibo Systems
• CluedIn

Relevant insights can be found in a Twitter post by Matt Ardern.

The history of Master Data Management (MDM) spans over a century, beginning with innovations that laid the groundwork for data management and evolving into sophisticated systems designed to streamline and ensure the consistency of core business data.

In 1890, Herman Hollerith designed a punch card system to expedite the U.S. census, a foundational moment that led to the classification of data into static and changing types. This early differentiation mirrors today’s distinction between master data and transaction data. Hollerith’s work, foundational to IBM’s origins, marked the inception of data categorization crucial for later developments in data management.

Master Files emerged as a concept in 1898 with Edwin G. Seibels’ invention of the lateral file, evolving into master files that contained critical descriptive information like customer names and addresses. By 1936, the Social Security Administration created a master file for tracking deaths, showcasing early government use of master data for administrative purposes. These master files, precursors to digital master data, were essential for businesses and governments to organize and access key information efficiently.

The transition to digital Master Data began in the 1960s, propelled by the Association of Data Processing Service Organizations (ADAPSO) and its focus on Data Management. Master data, conceptualized as an organization’s core data, became increasingly important in the 1980s with the rise of Master Data Management (MDM) programs. These efforts aimed to ensure the accuracy and consistency of essential data across an organization, recognizing the critical role of master data in business operations and analytics.

Master Data Management itself gained prominence in the 1990s, driven by the need to manage burgeoning volumes of data and the introduction of regulatory measures like the Sarbanes-Oxley Act of 2002. MDM systems provided a unified reference for essential data, aiming to eliminate data discrepancies and improve organizational efficiency. The evolution of MDM reflects an ongoing effort to address the complexities of managing core business data in an increasingly digital and data-driven world.

Throughout this history, the development of MDM has been a response to the challenges posed by growing data volumes and the need for accurate, consistent data management practices. From Hollerith’s punch cards to sophisticated MDM systems, the journey of master data management highlights the continuous effort to harness data’s power for organizational success and regulatory compliance.

Read more on A Brief History of Master Data - DATAVERSITY.

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Created: 2022-09-05