Master data is a set of trusted data of general use, non-transactional in nature, distributed in the organization between the different domain systems. It includes customer, product, employee, material, project and other files.
Reference data, in the context of data management, is a set of permissible values for fact, event or transaction tables, as well as for customer, product or process parameters. It can include for instance a Chart of Account, Customer Segment, VAT rate or Province/County/Commune dictionaries. A special kind of reference data are sets of data validation and QA rules, parameters for allocation, consolidation or segmentation algorithms, as well as data mapping (conversion) tables.
Master Data Management (MDM) and Reference Data Management (RDM) processes are particularly relevant to organizations with a complex IT system architecture, where many business solutions in place are incapable of master data interchange, or master data have to be synchronized between them manually. Such a situation may lead to business processes malfunctions or analysis inconsistencies, resulting in cost increase.
The key success factor for the implementation of an MDM/RDM solution is to identify a business owner (data steward) of the the relevant master data, operative deployment of a single source of truth principle and data maintenance procedures on an on-going basis.
Sanmargar carries out MDM/RDM implementations using its proprietary Metastudio DRM solution.