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CDH is a customer repository, you can for instance store a Company, with it's address and contact information (sites & locations) then have contacts with a relationship to the company i.e. employee of etc. It also stores classification information such as industry sector. How I see it is an extension of Accounts Payable / Receivable, they have taken the customer information that you would have stored there and basically separated it into it's own master data store and expanded it. It can integrate with all your Oracle Financials modules.
CDH can then be integrated with other systems so that it is the master source for party data. If you use SOA then it can publish - based on events such as an update or create - the changes across the ESB to the sub systems which then take the data and handle according to their requirements.
We publish data from CDH to 6 subsystems using web services. First pass is on the Oracle ESB, we have a publishing rule that requires at least a minimum amount of data before sending a message on the ESB. CDH maintains a master mapping table of the unique id for each subsystem that is linked to a counterparty. We expose API's from the TCA so that when a request is submitted to load a new party, the data from the webform is automatically populated into CDH and then the data capturer adds the rest. Throughout our workflow process, we use the CDH API's to update the status and information of the parties in CDH.
It also has advanced data management features like finding duplicates and merging them, batch import, find similar etc. and can be integrated directly with D&B if the web service is available in your country. We are using version 12.
Please refer the following thread for details on Customer Data Hub.
Oracle Customer Hub - where do I find the product to download?
Customer Data Hub Required for EBS 11i?