MDM is a comprehensive method of enabling an enterprise to link all of the relevant data within its critical line of business applications into a single unified view or reference base. 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. For this reason, MDM is more likely to be of value to large or complex enterprises however smaller organizations can benefit from a sound MDM strategy as well. When companies merge, the implementation of MDM can minimize confusion and optimize the efficiency of the new, larger organization. For MDM to function at its best, all personnel and departments must be taught how data is to be formatted, stored and accessed. Frequent, coordinated updates to the master data file are also essential.

Similar to other large-scale enterprise solution undertakings, the challenges are not limited to a technology selection. Executive-level understanding and involvement, clear and unwavering data ownership policy, discipline [i.e. starting small and building on success], and the engagement of the business side as owners of the process are critical to the success of an MDM initiative.