Master Data Management Methods

In the world of master data management there isn’t one version of the truth. There are many different aspects that you have to evaluate in order to find master data management methods that fits your purpose. Also is your current state of mind and state of systems a factor of importance. Let’s take the three most used methods into review.


Consolidation can we relate to the finance department. The way of working is exactly the same. The finance department collects all the different financial statements within the company or companies and creates one consolidated report. For MDM all the different pieces of data are gathered into one database or MDM tool. Let’s call this the “mother”. Mother controls all the masterdata in this one place and is fed by the daughters with data. Mothers has the capability to create reports and signals for adjustment in the daughter systems.


Harmonization is a beautiful word that in essence means: Adjustment of differences and inconsistencies among different measurements, methods, procedures, schedules, specifications, or systems to make them uniform or mutually compatible

In the MDM world harmonization is the capability of getting data send out the mother and their the data  is consolidated. This is all in order to send the relevant data back to the daughters. This creates synchronization over the complete system environment of the company


When we talk about centralization there is only one system in place that gains the data and distributes this to all the different systems that are in place with the different goals, such as CRM for customer data or PIM for product information. This centralized system plays a supporting role for data (mother) and the daughters with each their own purposes add additional information that serves their purposes without giving data back.


What to choose?

Choosing one of the master data management methods is not simpleYour current environment of systems is an absolute factor in choosing the right method. However we see that centralization the most common chosen option is. Is it the best option for you? I do not know but make sure you take the time to find the most useful option for your company. It helps controlling your master data in the most efficient way.