For those who have wondered what master data management is, this article is here to help you grasp its meaning and how it is important to your business.
What is master data management?
Master data management (MDM) is a comprehensive method that provides a detailed, trusted view of different entities across the enterprise with user-friendly dashboard capabilities, and easy to access self-service.
Once MDM is done properly, it can help to improve data quality, facilitate computing in multiple platforms and applications, and streamline sharing of data across various departments and personnel.
Master data management can also be described as a set of disciplines, solutions, and technologies that aid in maintaining and creating a vast set of data.
Master data management benefits increase with the number of departments in an organization, worker roles, and computing applications. This is why it is of more value to enterprises that are complex, compared to small businesses.
During the MDM implementation between companies that are merging, challenges arise because different business departments are still trying to understand their roles. But after the merging process is complete, master data management will offer benefits as it will help minimize the confusion of the different departments and optimize the efficiency of the new organization.
For those who want to implement MDM in their organizations, it is best for companies to train their departments and personnel on how to describe, format, store and access data.
Benefits of MDM
There are various benefits to having master data management included in your business, such as business intelligence that enables organizations to acquire data and convert it to knowledge.
Other benefits include:
A decision on the data to be used
Users get to select the data that will go into management. It makes the data useful for the business needs of the organization.
Access to data based on roles
MDM enables a company to offer data access to people based on their roles on master data. This is a form of security protocol to protect specific information that can only be provided to an individual depending on their functional requirements.
Master Data Edits
When dealing with multiple data records, the major issue is that when you make a change to data in one location, it will not be reflected at other locations. This often leads to data discrepancies that can later on result in customer and business catastrophes.
MDM will enable master changes that update related information at each location. This will ensure the data is consistent.
Multiple platforms
Each business has multiple platforms that require data availability to be keyed in on time and in an easy-to-access manner. Master data management is a big hit here as it makes data available on all the platforms of the business such as online, cloud, and so on.
Redundant elimination
Redundancy can happen if the customer or functional department maintains particular information. A benefit of master data management is that it will remove data redundancy and ensure that it is centrally located with complete coherent specifics.
Effective and useful data analysis
MDM helps you as a business owner through data analysis to help you make better decisions that are crucial, as you do away with unrelated data that can provide wrong analysis.
Increased usability
Master data management allows businesses to use data for their daily business operations. It also increases the business and operational efficiency which will mean you end up with happier customers.
Data consistency
Master data management guarantees data consistency which makes it easier to create a consistent and easy workflow.
Flexibility
Master data management makes data flexibility greater compared to other data management techniques. Usage, storage, changing, and availability of data is easier to manage.
Easy backup
MDM offers centralized data sources that make it easier for backup processes which are useful especially during disaster management or when you lose data as a result of corrupt storage sources.
Authoritative data
Master data management acts as a major data source that later becomes more authoritative. It becomes a reliable information resource for various business operations.
For owners of businesses, it is important for them store business data that is accurate, complete and consistent. This will help greatly in the seamless operational functionality of the company and derive meaning from the assembled data.
There are plenty more advantages to master data management. Hopefully, the points above have been able to answer your question of “what is master data management?”
