Master data management

Master data management (MDM) is a method used to manage the critical data of a business and to provide data management functionalities, such as a single point of reference, removing duplicate data, standardizing data, and incorporating rules to prevent incorrect data from entering the system.

It's important to mention here that a CRM is not a replacement for an MDM application, nor does it have any dependency on it. While data consolidation and integration are big subjects in every CRM project, there is always some customer data, such as demographical data or interaction history, that will end up being mastered in or by a CRM. This is by no means an MDM application.

I have seen this requirement come up sometimes in the RFI and/or RFP for CRM projects; therefore, it's worth talking about it here. In fact, there is sometimes confusion around what master data is and how CRM can help to classify it.

To be clear, MDM requires a more comprehensive and focused discussion...