Microsoft Master Data Services is one of the most exciting new features of SQL Server 2012. Technically, the V1 of the product was introduced with SQL Server 2008 R2, but to be completely honest, it did not get much acceptance. In my prognostication, this will drastically change with the V2 of the product. There are two features of MDS that I am particularly excited about. The first one is obvious – the MDS Add-in for Excel that allows users not only to maintain their master data but also to create and modify MDS Entities directly from Excel. The second is the ability to invoke SharePoint workflow in order to approve or review proposed changes with Master Data.
The important information to note is that there is no NATIVE integration between MDS and SharePoint. One can specify the name of the SharePoint workflow in the Business Rules section of the System Administration module of the Master Data Services web interface; howerver, a workflow handler will need to be developed in .Net to bring the two technologies together.
Here is a good link with an overview of all steps necessary to make this work.