Title: Master Data Management (MDM) Author: Kriko Published: May 24, 2023 Last modified: Jul 7, 2026 --- 1. [Home](https://kriko.io/) / 2. [Glossary](https://kriko.io/glossary) / 3. M Letter # Master Data Management **(MDM)** **Master [Data](https://kriko.io/services/data-analysis-insight) Management**, commonly abbreviated as MDM, is an approach used to define and manage an organisation's core business [data](https://kriko.io/services/data-analysis-insight) according to shared rules. It generally covers essential entities such as customers, products, suppliers, employees and locations. Its purpose is to prevent the same information from appearing in conflicting or duplicated forms across different systems. This enables the organisation to establish a more reliable and consistent source of master data. MDM does not mean storing all organisational [data](https://kriko.io/services/data-analysis-insight) within a single system. Instead, it supports the matching, cleansing, consolidation and distribution of master [data](https://kriko.io/services/data-analysis-insight) held across separate applications. For example, the same customer may be recorded differently in sales, billing and CRM systems. Master [Data](https://kriko.io/services/data-analysis-insight) Management can connect these records and create a more dependable customer view. Master [data](https://kriko.io/services/data-analysis-insight) supports business processes across sales, procurement, finance, marketing and operations. Inconsistent product names, customer identifiers, supplier details or organisational structures may cause problems in reporting and transactional processes. MDM helps different departments use the same definitions and reference information. This can improve operational efficiency and support decisions based on more reliable data. Master [Data](https://kriko.io/services/data-analysis-insight) Management commonly involves [data](https://kriko.io/services/data-analysis-insight) quality, matching, consolidation, standardisation and **[data](https://kriko.io/services/data-analysis-insight) governance** activities. Clear rules determine where information originates, who may modify it and which systems may receive it. Security and access controls ensure that sensitive information is available only to authorised users. Tracking and recording changes also helps preserve [data](https://kriko.io/services/data-analysis-insight) reliability. Master data should be distinguished from metadata and transactional data. Master data describes the organisation's core business entities, while metadata provides information about the structure and origin of that data. Transactional data is generated through daily activities such as sales, payments, orders and deliveries. MDM does not directly manage every type of information but focuses on maintaining consistent business entities across these processes. A successful MDM initiative requires more than installing software. Business departments, data owners, IT teams and governance specialists must work together to define shared standards. Organisations often establish dedicated teams to monitor data quality and coordinate activities between departments. When implemented effectively, a ** Master Data Management strategy** can reduce duplication, improve reporting quality and create a shared understanding of data across the organisation. ## Discover it in the dictionary ### Customer Lifetime Value Customer Lifetime Value, commonly abbreviated as CLV or LTV, refers to the total economic value a customer is expected to generate for a business… ### Cross-selling Cross-selling is a sales and marketing technique that involves recommending complementary products or services related to the product a customer has purchased or is… ### First Input Delay (FID) First Input Delay, commonly abbreviated as FID, is a performance metric that measures the delay between the moment a user first interacts with a… ### Demand Forecasting Demand forecasting is the process of estimating future demand for a product or service by using data, assumptions and analytical methods. Businesses use this… ### Customer Retention Rate Customer Retention Rate is an important customer loyalty metric that shows how successfully a business keeps its existing customers over a specific period. This… ### Data Quality Data quality refers to the extent to which data is suitable for a defined purpose. A dataset must generally be accurate, complete, current, consistent… ### App Store Optimization (ASO) App Store Optimization, commonly abbreviated as ASO, refers to the optimisation activities carried out to make mobile applications more visible and increase downloads in… ### Artificial Intelligence Artificial intelligence, commonly abbreviated as AI, is a field of technology that aims to enable computer systems to perform tasks associated with human intelligence,… ### Data Integration Data integration is the process of bringing information from different sources together within a common structure. Data may be collected, cleansed, transformed and prepared… ## Track the digital heartbeat with Kriko Subscribe to receive curated insights, news, and ideas shaping the digital landscape. By checking this box, you acknowledge and accept our [privacy policy](https://kriko.io/privacy-policy).