Last week, Henrik Liliendahl responded to questions posed to him by Jan van Til.

Jan asked:

Wouldn’t the world be far better of without the concept of master data?

What problems are solved by it?

What problems are introduced by it?

The balance? So … why do we keep toiling with master data?”

Henrik’s response deals with the questions asked, and, to a large extent, I agree with his response, which is summarised here:

Benefits of MDM (what problems are solved):

• Ensures data quality and fit-for-purpose use.
• Provides consistency across databases, avoiding confusion.
• Prevents unintentional variations in pricing and features.
• Enables reliable reporting, business intelligence, and data-driven decisions.
• Avoids redundant data cleansing initiatives through centralized management.

Challenges of MDM (what problems are introduced)?

• Requires enterprise-wide involvement and resources.
• Risk of exceeding budgets and timelines.
• Can become another data silo within the organization.
• Involves complexities in managing stakeholders and justifying investments.

Finding the Balance:

• Adopt an agile approach and start small.
• Consider the specific needs of the organization.
• Avoid imposing MDM on every aspect and individual.

In conclusion, MDM offers benefits like data consistency and reliability, but it also presents challenges that require careful planning and stakeholder engagement.

Falling into a common trap

Yet, in my view, Jan’s questions reflect the common trap of mistaking master data (and/or master data management) as a technology rather than as a capability or discipline.

Master data is!

Master data is not a concept – it is data we use every day to reflect our business dealing.

Our customers, our suppliers, our staff, our products and many more.

The invoice above delivers on Jan’s wish. All master data has been removed.

Not very useful, is it?

Master data management is not a technology!

We are managing our master data every day, just as we manage all data.

We just in most cases do it badly.

Our master data exists in silos, it is of poor quality, it is duplicated, it is complex.

Master data management is!

If we accept, as Henrik did in his response, that Jan was referring to the decision to deploy an MDM tool then his questions make more sense.

But, I would suggest that, even in this case, many of the challenges and problems experienced are caused by the erroneous belief that master data management is a technology.

This means that business does not engage and that the data governance and data quality prerequisites are underfunded or ignored.

We will keep toiling with master data until we recognise that this is core to our business, and prioritise accordingly