Which of the following is a driver for Master Data Management?

Which of the following is a driver for Master Data Management?

• A. Increasing the complexities of data structures
• B. Meeting organizational data requirements
• C. Minimizing user data access
• D. Deprioritizing data quality management

Answer: (B)

Meeting organizational data requirements is a fundamental driver for Master Data Management (MDM). This approach ensures that organizations have a unified and accurate view of their critical business entities, such as customers, products, and suppliers. As organizations expand and their data needs grow, having a centralized and reliable source of master data helps in maintaining consistency across various systems and departments. MDM facilitates compliance with data governance standards, enhances decision-making capabilities, and aligns data management practices with business objectives. A critical aspect of effective MDM is its role in supporting the overall data strategy of an organization, which inherently includes meeting the data needs of various stakeholders, improving data quality, and ensuring a single version of the truth. This ability to deliver reliable, accurate, and timely data to meet organizational demands complements strategic initiatives and operational efficiency, reinforcing why this factor is a primary driver for implementing MDM. The other choices do touch on aspects that may influence MDM but do not encapsulate its primary purpose as effectively as meeting organizational requirements does. For example, while increasing complexity in data structures can create a need for better data management, it does not directly define the goal of MDM. Similarly, minimizing user data access and deprioritizing data quality management do not align with the fundamental

Meeting organizational data requirements is a fundamental driver for Master Data Management (MDM). This approach ensures that organizations have a unified and accurate view of their critical business entities, such as customers, products, and suppliers. As organizations expand and their data needs grow, having a centralized and reliable source of master data helps in maintaining consistency across various systems and departments. MDM facilitates compliance with data governance standards, enhances decision-making capabilities, and aligns data management practices with business objectives.

A critical aspect of effective MDM is its role in supporting the overall data strategy of an organization, which inherently includes meeting the data needs of various stakeholders, improving data quality, and ensuring a single version of the truth. This ability to deliver reliable, accurate, and timely data to meet organizational demands complements strategic initiatives and operational efficiency, reinforcing why this factor is a primary driver for implementing MDM.

The other choices do touch on aspects that may influence MDM but do not encapsulate its primary purpose as effectively as meeting organizational requirements does. For example, while increasing complexity in data structures can create a need for better data management, it does not directly define the goal of MDM. Similarly, minimizing user data access and deprioritizing data quality management do not align with the fundamental