Master data and metadata are both used to aggregate data, but master data requires that the organization identifies or develops a trusted version of truth for each of its entities.

Trusted Version of Truth:

For effective master data management, an organization must establish a single, trusted version of truth for each master data entity (e.g., customer, product).

This involves harmonizing data from various sources, resolving duplicates, and ensuring consistency and accuracy.

Master Data:

Master data includes critical business information that provides context for business transactions and analysis. It must be consistent, accurate, and up-to-date to support operational and analytical processes.

Other Options:

Transaction Activity Data:Important for operational processes but not the focus for creating master data.

One Set of Data as Source and Target:Not sufficient for managing master data.

Specific Application Solutions:While useful, they do not ensure the creation of a trusted version of truth for master data.

Transaction Audit Data:Important for auditing but not central to master data creation.