Unless you are living on the Moon or an isolated island, you might have heard about Master Data Management (MDM). In today’s context MDM is crucially needed if a business wants to implement effective management strategy.
Today businesses deal with enormous amounts of varied information: customers and their profiles, suppliers (contact information, location, accounting, etc), employees and subcontractors, and so on. As a result, effective management of all information has become of critical importance. More than that if a company uses different systems, it makes it really difficult to get complete master data. One of the most optimal solutions is MDM (Master Data Management)
What is master data management?
In business, Master Data Management (MDM) is a method used to define and manage the critical data of an organization to provide, with data integration, a single point of reference. The data that is mastered may include reference data, the set of permissible values, and the analytical data that supports decision making.
Master Data Management – what you should know
As we have already mentioned MDM is rapidly gaining in popularity because:
- it helps businesses of any size better know and understand customers and their needs. MDM perfectly synchronises information about customers across different channels;
- for those companies, who have already gone global or are planning to expand globally, Master Data Management reduces the risk of additional complications arising;
- to be able create a strategic plan, a company requires data that it can rely on. You are most assuredly aware, that decision -making that is based on poor quality information might lead to unsatisfactory results, and negatively impact on the business itself;
- in a situation when a company uses different systems, thanks to MDM a company can combine all data together and deliver a unified view;
- in case a business is involved in complex marketing, MDM provides data of the same quality via all channels;
- a finance department often uses MDM to generate financial reports and statements. In case of audits, thanks to MDM, a business can be sure that only the appropriate users can make any amendments;
- MDM definitely helps to improve data management, and business is growing as a result.
Choosing Master Data Management software
One of the main goals of Master Data Management software is, among others:
- support the data management process by removing duplicated or duplicated data;
- guarantee that a business uses unified data;
When choosing MDM, a business might consider:
- the total cost without sacrificing functionality;
- its strengths and weaknesses;
- reviews of users;
- whether a solution best fits the needs of a company;
- whether the platform is multi-domain;
- data management productivity;
- whether integration with other products is easy;
- platform architecture.
Let’s sum up: Any company can benefit from Master Data Management: effective decision-making processes, higher operational effectiveness and customer satisfaction and as a result – higher profits and revenue.