Corporate MDM of a holding is a system of interconnected geographically-distributed data bases linked to the reference main data center. All the business processes of master data management in this structure comply with general regulations and are maintained in the integrated software environment.


Geographically-distributed structure of reference data management in a holding


Central board for reference data management develops standard models for in-company master data that allows to describe characteristics of classified facilities and their interconnecting semantics. Regional boards of reference data management of a holding arrange management of assigned reference data classifiers and execute required collection, identification, classification and entry of reference data.

MDM head office deals with:

  • development of business processes and unification of reference data management regulations for all holding departments;
  • establishment of in-company reference data bases with replication mechanism;
  • development of standard models for reference data bases that fulfil contextual presentation of master data;
  • global identification of reference data facilities using GUID (Globally Unique Identifier);
  • unification of facility description (creation of thesauri - topical area glossaries);
  • development of principles of classification and coding of stock number facilities;
  • unification of formats of reference data exchange on the basis of international standards.

Each enterprise connected to MDM system head office is provided with its own MDM copy, required set of reference books out of corporate data bases and capability to exchange data with reference data central data base.


Automatic replication of master data in holding structure.


Reference data head office would regularly replicate master data actual changes into local MDM systems and collect requests on entry of new stock items from all the enterprises. Requests for reference data facility changes are accepted and processed by experts of reference data department of holding.

Each holding enterprise is supplied with an MDM system copy installed in head office, as well as a particular set of data bases depending on local requirements. Together with corporate reference books, local MDM system can comprise data sets required for this particular enterprise.

MDM system function at the enterprise is to globally identify stock facilities whose data are entered into various application systems. Facility interconnection update would normally take place when MDM is synchronized with reference data bases of application systems. Automated procedure of data fusion would identify facility match under assumed key fields, classify them into duplicated record category simultaneously maintaining connection with facility standard record.


Procedure of facility synchronization in MDM environment


Now each data entry irrespective of its location is connected to a Globally Unique Identifier (GUID) of MDM database standard record, which allows to identify facility standard name, its classification group and a set of its unique characteristics. While moving between various applications (CAD-CAPP-PDM-ERP) in electronic documents, reference facilities would still be related to MDM. Any application used to supply reference data base to enterprise must synchronize its reference data facilities with MDM standard records or be integrated into MDM system in case it does not create its own reference data.

Geographically-distributed reference data management scheme is ideal for enterprises with a complex structure of regional branches. On one hand it allows to centrally operate peripheral enterprises: distribute industry specific standards, fulfil general control of quality and data integrity; on the other hand it provides enterprises with definite independence allowing for local sensitiveness. Such an approach would significantly decrease failure risks in case of MDM global use since each local reference data management system has a smaller scale, is better adapted to particular specifics and can be controlled by employees of local reference data center.

MDM system key tasks in geographically-distributed structure - support of cooperation of holding enterprises and cost decrease for in-company accountability generation. Due to the fact that all the stock facilities in semantic MDM system are supplied with a unique identifier GUID, holding managing company can collect reports on enterprise-consumed commodity stocks and supplies and generate commodity stocks and supplies combined statements to enhance efficiency of procurement activities.

Centralized form of control over reference data under holding structure allows to decrease costs for coordination of activities of industrial process members and improve efficiency of managerial decisions. As stated by various think tanks, introduction of MDM system allows to: 

  • decrease costs of consolidated reporting by 50%;
  • decrease costs for creation and maintenance of corporate reference data due to their centralization by 50%;
  • decrease costs for commodity stocks and supplies bulk purchase due to unification of stock items in the range from 5% to 20%.