4 Styles of MDM Implementation – Which One is Right for You?

Through 2025 and beyond, 80% of organisations seeking to scale digital business will fail because they do not take a modern approach to data governance (Gartner). Data chaos—duplicate records, outdated customer information, fragmented product data—is one of the biggest barriers to digital transformation. 

The solution? Master Data Management (MDM) is often described as the “single source of truth” for an organisation’s critical data, but reaching that goal is not a one-size-fits-all journey. Depending on a company’s structure, goals, and existing systems, different MDM implementation styles can be more effective. Choosing the right approach can make the difference between a successful transformation and a project that struggles to gain traction.

Here, we explore four common styles of MDM implementation — each with its own strengths, trade-offs, and ideal use cases.

1) Registry Style MDM: The Lightweight Approach to a Single Source of Truth 

What Is Registry Style MDM? 

In a registry MDM model, instead of moving and owning the data, the MDM system creates an index that links records across different systems. It acts more like a catalogue, pointing to where the master data lives rather than creating a single copy.

Advantages:

• Lower disruption to existing systems

• Faster implementation compared to centralised models

• Good for scenarios where data ownership must remain decentralised

Challenges:

• Less control over data quality

• Integration complexity can grow over time

• Reporting still relies on data existing across multiple sources

Best suited for:

Organisations that need quick wins without overhauling their entire IT architecture, or where data is too sensitive to centralise (e.g., healthcare, finance).

2) Consolidation Style MDM: A Centralised View Without Overwriting Source Data 

What Is Consolidation Style MDM? 

In a consolidation MDM approach, data from different source systems is copied into a central MDM repository purely for analytical and reporting purposes — without trying to replace operational ownership.

Advantages:

• Strong foundation for enterprise analytics and AI initiatives

• Reduces reporting inconsistencies

• Can expose underlying data quality issues for future remediation

Challenges:

• Not suitable for operational data governance

• May create a “read-only” version of the truth if not expanded over time

• Doesn’t inherently fix poor data quality at the source

Best suited for:

Companies starting with data quality audits, analytics improvements, or planning a phased move towards full operational MDM.

3) Coexistence Style MDM: A Hybrid Approach 

What is Coexistence Style MDM?

Coexistence MDM is a hybrid approach. Master data is maintained both in source systems and a central hub. Updates can flow bidirectionally — either from the hub to systems or from systems back to the hub.

Advantages:

• Supports gradual transformation and adoption

• Enables local flexibility with global standards

• Easier to support mergers, acquisitions, or regional expansions

Challenges:

• Complex synchronisation and data stewardship models

• Risk of version conflicts if governance is weak

• Higher integration effort than purely centralised or registry models

Best suited for:

Global businesses with multiple business units or brands needing both local autonomy and central oversight.

4) Centralised Style MDM: Consolidated. Sorted.

What is Centralised style MDM?

In a centralised MDM approach, all master data is consolidated into a single, central hub. This hub is responsible for creating, managing, validating, and distributing master data to other systems.

Advantages:

• Strong governance and consistency across all departments

• Easier to enforce data standards and policies

• Simplified reporting and analytics

Challenges:

• High initial cost and complexity

• May require significant business process change

• Can feel bureaucratic if not designed with flexibility

Best suited for:

Large enterprises with complex operations needing tight control over data quality and regulatory compliance.

How Much Does an MDM Implementation Cost? 

The cost of implementing Master Data Management varies significantly based on the MDM approach, organisation size, and complexity of data integration. Businesses must consider multiple factors, including software licensing, infrastructure, consulting, and ongoing maintenance. To get a rough idea, take into account the following key cost factors in MDM Implementation.

1. Software Licensing & Subscriptions 

• Cloud-based MDM solutions often follow a subscription model, ranging from £50,000 to £500,000+ per year, depending on the provider and features. 

• On-premise MDM software requires a one-time licence fee, often starting at £100,000, plus additional costs for upgrades and support. 

2. Implementation & Integration Costs 

• MDM solutions must integrate with existing ERP, CRM, and data warehouses, which can double or triple the initial software cost. 

• Custom integrations and complex data migration efforts can push costs into the millions for large enterprises. 

3. Consulting & Professional Services 

• Engaging an MDM expert or implementation partner adds costs, typically ranging from £100,000 to £1M+, depending on project scope. 

• Consulting costs include data modelling, governance strategy, and change management to ensure long-term success. 

4. Infrastructure & Hosting 

• On-premise MDM requires dedicated servers, storage, and IT resources, adding to infrastructure costs. 

• Cloud-based solutions may include hosting costs in subscription fees but may have additional costs for scalability and high-availability setups. 

5. Ongoing Maintenance & Support 

• MDM is not a one-time investment—regular data governance, quality monitoring, and software updates are required. 

• Maintenance and support costs typically range from 15-25% of the software licensing fee annually. 

Cost vs. ROI: Is Investing in MDM Worth It? 

While MDM implementation can be a significant investment, the return on investment (ROI) is often substantial. Businesses that implement MDM successfully see benefits such as: 

• Improved data quality → fewer errors, better decision-making. 

• Operational efficiency → reduced duplication, automation of processes. 

• Regulatory compliance → lower risk of fines and data breaches. 

• Increased revenue opportunities → better customer insights, streamlined operations. 

The key to controlling MDM costs is choosing the right implementation approach based on business needs. While transactional MDM is the most expensive and complex, registry or consolidation MDM can provide value at a lower cost for organisations primarily focused on analytics. 

Investing in MDM is about long-term data integrity and business transformation, making the cost justifiable for enterprises aiming to scale digital operations and future-proof their data strategy. 

Choosing the Right Approach

There’s no universally “best” style of MDM — only the best fit for your goals, readiness, and culture. Some organisations even evolve from one style to another as their data maturity improves. For example, a company might start with consolidation for analytics, move to coexistence as they improve stewardship processes, and finally achieve centralisation as part of an S/4HANA migration or digital transformation initiative.

Ultimately, success with MDM is about balancing control and flexibility while making sure that master data truly serves business needs — not the other way around.

See how these concepts apply in Master Data in SAP for real business impact.