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MDM - Styles to Manage a Master List

 Organizations handle multiple sets of master data, such as product information, customer data, and location data. Master Data Management (MDM) solutions often use different hubs to manage these data domains efficiently. These hubs can follow various data management approaches (as discussed in my previous post—single copy, multiple copies, etc.).

Here, I explore the three primary styles of Master Data Management:

1. Single Copy Master (Central Hub)

  • A single centralized database stores the master data, consolidating all required information.
  • Data from various sources is linked, matched, and stored in this hub.
  • The central hub publishes data to various applications.
  • Prevents duplication by maintaining a single source of truth.

✅ Benefits:

  • Ensures data consistency across all systems.
  • Simplifies data governance and compliance.

❌ Challenges:

  • Existing applications may require modifications to consume master data.
  • Can become a bottleneck if not scaled properly.

2. Distributed Copies with a Look-up Service

  • Each application maintains its own copy of the master data.
  • A central hub acts as a key registry, storing only entity keys (not full data).
  • When master data is needed, the lookup service retrieves the data from multiple databases on demand.

✅ Benefits:

  • Minimal impact on existing applications.
  • No need for a single master database—more flexibility.

❌ Challenges:

  • As databases grow, query performance may degrade.
  • Data duplication risks—each system may store different versions of the same data.
  • Adding new databases may require query modifications and integration effort.

3. Hybrid (Mixed) Style

  • Combines the Central Hub and Distributed Look-up models.
  • Master data remains in native databases, but important attributes are replicated to a central hub.
  • The central hub can handle common data requests, while specific queries are sent to the original databases.

✅ Benefits:

  • Balances performance & flexibility—avoids a single point of failure.
  • Less impact on existing applications.

❌ Challenges:

  • Replica synchronization issues—data updates must be carefully managed.
  • Data standardization across different databases can be complex.

Conclusion

Each MDM style has trade-offs. The best approach depends on:
✔ The organization's data complexity
✔ Performance needs
✔ Integration costs

Many organizations adopt a hybrid approach, leveraging a centralized master with selective data replication to achieve both efficiency and scalability.

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