The consolidated MDM style is principally used to support business intelligence (BI) or data warehousing initiatives.
This is generally referred to as a “downstream” MDM style
MDM is applied downstream of the operating systems and systems of record where master data is originally created.
Here the MDM Hub is the system of reference for all reporting, search and reference purposes. The MDM likely also stores all the master data needed for all reporting purposes.
There is often no need to connect to or be connected with backend systems directly.
This consolidated customer master can operate in a complete vacuum because it is self-contained, simply taking feeds from the satellite systems – beneficiary applications beyond the CMDM enjoy the benefits of the collated records while sources maintain business as usual.
This approach may not meet your business’ data compliance objectives which may require you to have a single authoritative source of truth.