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COMPEL Glossary / master-data-management-mdm

Master Data Management (MDM)

Master Data Management is the set of processes, governance structures, and technology for ensuring consistent, authoritative definitions of key business entities -- customers, products, suppliers, locations, employees -- across the entire enterprise.

What this means in practice

MDM prevents the data inconsistencies that silently degrade AI model performance. When the same customer appears differently in the CRM, billing system, and support platform, AI models trained on this inconsistent data learn incorrect patterns. MDM ensures that 'customer 12345' means the same entity everywhere, with consistent attributes and relationships. In the COMPEL maturity model, MDM capability appears at Level 4 in the Data Management and Quality domain (Domain 6), representing mature data governance where authoritative data sources are defined and maintained enterprise-wide.

Related Terms

Other glossary terms mentioned in this entry's definition and context.