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MDM can be defined as "A Single View of everything important in an organisation".
In a business enviroment, this usually means Customer, Products or Services, Employeees, Suppliers and so on.
One example of the problems that MDM solves is that when we are Customers, we are often identified in different ways.
For example, my name is Robert Williams and I find myself called Robert, Roberto, Robbie, Bob, Bobby, Bobbie and so on.
MDM summarises what is involved in matching all these different names and occurrences of the same Customer and recognising them as the unique individual that I am.
We could say that it identifies the same Customer among many apparently different ones.
Wikipedia says that another common example of poor MDM is the scenario of a bank at which a customer has taken out a mortgage and the bank begins to send mortgage solicitations to that customer, ignoring the fact that the person already has a mortgage account relationship with the bank.
This happens because the customer information used by the marketing section within the bank lacks integration with the customer information used by the customer services section of the bank. Thus the two groups remain unaware that an existing customer is also considered a sales lead."
Delivery in the Clouds offers unique opportunities for enhancing the role of MDM.
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