As a comprehensive method of enabling an enterprise, Master data management (MDM) links all of its critical data to one file, called a master file, which provides a common point of reference.

When properly done, MDM streamlines data sharing among personnel and departments. In addition, MDM can facilitate computing in multiple system architectures, platforms and applications.

The benefits of the MDM paradigm increase as the number and diversity of organizational departments, worker roles and computing applications expand.