The difference between MDM Systems and Data Warehouses

on Tuesday, 01 January 2013. Posted in Blog, Enterprise Architecture

In many ways, the processes are similar to those used in populating a data warehouse or datamart, particularly with the consolidation style of MDM; however, there are differences:

Volume and Type of Data: MDM systems involve only the master data, not terabytes of transaction data (such as telecommunication companies' call detail records), which may need to be stored at the detail level, in addition to various levels of aggregation for analysis purposes.

Database Design: The master data is typically held in a relatively normalized form, whereasmany analytical systems depend on specialized designs, such as star schemas to improve analytical performance.

Use of the Data: MDM reconciles semantic differences to give a single view of master data,usually for operational purposes, which is independent of any single application system. Datawarehousing supports BI and analytics, but does not usually support transactional activities. MDM systems and data warehouses are complementary, and the introduction of MDM systems into the operational area should reduce the work required to integrate and consolidate master data as it's prepared for loading into the data warehouse.

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