IQ0-100 practice question 17 of 35

How can information technologies best enable master data management (MDM) in an organization?

Full set: 100 questions
Answer options
A: Capture vast quantities of data and information.
B: Move data and information from one system to another. Correct answer
C: Reuse data and information to complete an organization's transactions.
D: Deliver data and information to people.
Correct Answer:
B. Move data and information from one system to another.
Explanation

Master Data Management (MDM) establishes an authoritative, reliable, and sustainable source of truth for an organization's critical data entities. Information technology's primary role in enabling MDM is to provide the infrastructure and tools to integrate and synchronize this master data across disparate application silos. By moving data between a central MDM hub and various operational systems (like CRM, ERP), IT ensures that a consistent "golden record" is used everywhere, which is the core purpose of MDM.

Why Incorrect

A. Capture vast quantities of data: This relates to data warehousing or big data, not the MDM focus on the quality and consistency of core business entities.
C. Reuse data and information to complete an organization's transactions: This is a general function of operational systems, not the specific integration role IT plays in MDM.
D. Deliver data and information to people: This describes business intelligence or reporting, which consumes master data but is not the core MDM enablement function.

References

1. Dreibelbis, A., Hechler, E., Milman, I., Oberhofer, M., Van Run, P., & Wolfson, D. (2008). Enterprise Master Data Management: An SOA Approach to Managing Core Information. IBM Press. Chapter 1, "Introduction to Master Data Management," explains that MDM is about managing and synchronizing master data across the enterprise.

2. Berson, A., & Dubov, L. (2011). Master Data Management and Data Governance (2nd ed.). McGraw-Hill. Part 1, Section 1.3, "MDM and the Enterprise," details how MDM systems act as a central point of reference and synchronization for other systems.

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