Master data is fundamental, long-term valid information that is used in companies to identify and describe objects, people, or processes. It forms the basis for many business processes and remains stable over longer periods of time, in contrast to transactional data. Typical examples of master data include customer data (name, address, contact information), supplier data, product data (description, price, dimensions), or employee master data.
The quality of master data is crucial for the smooth running of operational and strategic business processes. Incorrect, duplicate, or outdated master data can lead to process disruptions, wrong decisions, or economic losses. Therefore, professional master data management is of great importance. It includes the maintenance, validation, standardization, and regular review of the data.
An important component is the unique identification – for example, through customer numbers, material numbers, or employee numbers. This allows data to be systematically collected, processed, and analyzed. Particularly in ERP systems (e.g., SAP), master data plays a central role, as almost all modules access it.
Moreover, master data gains strategic importance through digitalization and automation. They enable personalized offers, data-driven decisions, and optimized supply chains. At the same time, the complexity increases: master data must be consistent across the company and often even uniform internationally.
The maintenance of master data is not only a technical challenge but also an organizational one. It requires clear responsibilities, well-defined processes, and suitable systems. Only in this way can companies ensure that their data foundation remains robust, up-to-date, and usable – a crucial competitive advantage in data-driven markets.