Depending on your implementation style, the concepts of entity, attribute, and entity type reflect the technical capabilities of virtual and physical MDM.
For example, an entity in virtual MDM is assembled dynamically based on the member records by using linkages and then is stored in the MDM database. Conversely, an entity in physical MDM is based on matching records from the source systems that are merged to form the single entity.
The following diagrams are visual representations of the MDM concepts. The diagrams show how the concepts relate to the registry and centralized implementation styles.
In virtual MDM, a member record with its attributes exists in a source system. Those member records are assembled dynamically by virtual MDM to form a single entity in a composite view (entity 1 in the following diagram). That single entity represents the golden record for that person, organization, object, or so on. After the initial configuration, business users continue to change data on the source systems. Based on configurable rules, the changes to the source system data are reflected in the entity composite view that is stored in the MDM database.
In physical MDM, an entity with its attributes starts in a source system. Those entities (1a, 1b, 1c, and 1d in the following diagram) are centralized by physical MDM to form a single record in the MDM database. That single record represents the golden record for that person, organization, object, or so on, where entity type 1 in the diagram represents the type of the information that is being mastered. After data from the source systems is consolidated within the MDM database, business users directly change the data in the MDM database rather than in source systems. That is in physical MDM, the MDM database is the system of record for master data.