MDM

Glossary

「MDM」

We will explain the meaning of MDM (Master Data Management).

What is MDM?

MDM (Master Data Management) is an abbreviation for Master Data Management, and refers to the activity of integrating and centrally managing the master data held by a company and used in its business operations, thereby maintaining its quality.

Master data is basic data that is common to the databases of various systems built within a company. There are various types of master data, such as customer master data, product master data, and accounting master data, and all of these are fundamental business data. For example, customer master data, which contains basic information about business partners, includes managed items such as customer name, address, telephone number, customer code, and payment information. This information is used by various departments within a company, including sales, marketing, and customer support. When there are multiple master data sets, repeated updates to each can easily lead to duplication and inconsistencies. Centralized management of master data using MDM is effective in resolving these issues of declining data quality and inconsistencies.

Proper implementation of MDM can reduce the cost of correcting data inconsistencies, improve the quality of master data, and increase the reliability of the data needed for decision-making.

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