Disparate systems holding multiple master data sets. These systems include legacy systems that cannot be easily accessed, ERP systems with their own set processes, Data Warehouses and new systems that are being implemented.

Different definition and structure of master data entities (Customer vs. Account, Vendor Master with 5 attributes vs. Vendor Master with 20 attributes, Internal product Item master vs. External product item master).

Different code sets (Customer ID is numeric in invoicing system, is alphanumeric in the financial system).

Independent functional processes in each system to create Master Data already exist. Disrupting these processes might require major changes to the way business is done.

Due to the independent processes, no centralized governance model exists for creating Master Data in most subject areas.

Existing & historical transactional data entered against the individual master data sets needs to be transformed/addressed.

The timeliness of a creating and delivering master data to the systems that need it is one of the biggest challenges. Most existing processes creating master data in individual systems do not have delays/governance. With the introduction of centralized creation/governance, the time delay between creation and a system receiving a set of master data can lead to change in business processes.

To understand the strategic approach to address these challenges of MDM, click here