What is Master data and how do I use ut

Hi!
I am not familiar with the use of master data, so I need some help please...
1. What is masterdata?
2. When do I use Masterdata?
3. How does masterdata works technicaly?
3. Can someone give me an example on us of masterdata
Thanks

Dear Helge..
1.Master data is one which doesnot change frequently...for ex...our name..Master data is data that remains unchanged over a long period of time.
2. Master data contains information that is needed again and again in the same way
3.Master data contains texts,,attributes and hierarchies.
For ex..Person ID,Person Name can be maintained as master data...
The technically validations can be explained in Star Schema..which uses dimension Tables and SID 's as main parameters..
some Points:
When you create a characteristic InfoObject, it is possible to assign attributes, texts, hierarchies, or a combination of this master data to the characteristic. If a characteristic bears master data, you can edit it in the BI system in master data maintenance.
Hope this heps u...
Assign points if needful,,
Best Regards,
VVenkat..

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