Master Data Management Strategy for ERP
Master data—customers, vendors, items, employees, and chart of accounts—is the foundation upon which every ERP transaction is built. When master data is inconsistent, duplicated, or incomplete, the entire ERP ecosystem suffers: reports produce conflicting numbers, integrations break, and users lose trust in the system. An MDM strategy establishes the golden record concept, governance framework, and stewardship model that keeps master data clean long after go-live.
Defining Master Data Domains and Golden Records
The first step in MDM is identifying which data domains are 'master' and establishing where the authoritative source (golden record) lives. In multi-system environments, the same customer may exist in the ERP, CRM, eCommerce platform, and billing system. MDM defines which system is the master for each attribute and how changes propagate across systems through integration or synchronization.
- Core ERP master data domains: customer, vendor/supplier, item/product, employee, GL account, cost center, and location
- Golden record definition: the single authoritative version of each master record with defined attribute-level source systems
- System of record mapping: for each attribute, designate which system creates, owns, and distributes the authoritative value
- Cross-reference keys: maintain mapping tables that link master record IDs across all connected systems
- Data model standards: enforce consistent naming conventions, data types, and field lengths across all master data domains
MDM Governance Framework
MDM governance defines who can create, modify, and retire master data records, and what approval workflows apply. Without governance, master data entropy is inevitable—every user who can create a customer record without validation contributes to duplicate and inconsistent data. Governance policies must balance data quality control with operational agility to avoid becoming a bottleneck.
- Data steward roles: assign named stewards per domain with authority to approve creations, modifications, and retirements
- Creation workflows: mandatory validation steps for new master records including duplicate checks and completeness rules
- Modification controls: define which fields require steward approval vs. self-service updates with audit logging
- Retirement policies: criteria and process for deactivating obsolete master records without breaking historical references
- Quality monitoring: automated dashboards tracking duplicate rates, completeness scores, and compliance with naming standards
MDM Technology and Architecture Patterns
MDM technology ranges from simple ERP-native data governance tools to enterprise MDM platforms like Informatica MDM, SAP Master Data Governance, or Reltio. The right choice depends on the number of systems, data volume, and organizational maturity. Three architectural patterns dominate: registry (linking), consolidation (read-only hub), and centralized (authoritative hub with write-back).
- Registry style: links master records across systems without copying—lowest cost, best for organizations starting their MDM journey
- Consolidation style: creates a read-only golden record hub for analytics and reporting—medium complexity and cost
- Centralized style: all master data created and managed in the MDM hub, then distributed to consuming systems—highest control
- ERP-native MDM: leverage built-in data governance features (Infor MDM, SAP MDG) to reduce integration complexity
Establish automated master data governance with Netray's AI stewardship agents—request a master data health assessment.
Related Resources
ERP Data Cleansing Before Migration: A Practical Guide
Clean your data before ERP migration with proven cleansing techniques. Address duplicates, incomplete records, and format inconsistencies systematically.
ERPERP Data Governance Framework: Policies, Roles & Tools
Establish an ERP data governance framework with defined policies, stewardship roles, and quality metrics. Maintain data integrity across the ERP lifecycle.
ERPERP Duplicate Data Identification & Resolution Strategies
Identify and resolve duplicate records in your ERP with fuzzy matching, survivorship rules, and merge strategies. Reduce duplicates by 90% before migration.