Answer:
Master data is the foundational data that defines and classifies entities in an organisation. It is structured hierarchically to maintain consistency and accuracy, and examples include customer data, product data, and supplier data.
Master data refers to the core, essential data that is used to define and classify entities within an organisation. It is the key data that provides a common understanding and framework for various business operations. Master data is typically structured in a hierarchical manner to ensure consistency and accuracy.
For example, in a customer management system, the master data would include information such as customer names, addresses, contact details, and payment terms. This data is essential for various departments within the organisation, including sales, marketing, and customer service, to effectively interact with customers.
Master data is structured using a top-down approach, where higher-level categories are defined first, followed by lower-level attributes. This hierarchy ensures that data is organised and easily accessible. For instance, in a product master data, the top-level category could be "Electronics," followed by sub-categories such as "Smartphones" and "Laptops," and further attributes like brand, model, and specifications.