Master data is the core data that is essential to operations in a specific business or business unit. The kinds of information treated as master data varies from one industry to another and even from one company to another within the same industry.

What is master data examples?

Customer information—such as names, phone numbers, and addresses—is an excellent example of master data. … If customer information lives in multiple locations instead of a master database, then employees have no single source of truth for this essential data.

Why is master data so important?

Having all master data in one central place enables companies to set up dedicated data compliance and governance processes. State-of-the-art master data systems provide the possibility to define clearly structured data responsibilities.