Master Data Management (MDM) stores everything in just one place improving the quality of the key data, such as product data, asset data, customer data, and location data.
Many Businesses have different and separate software and applications for monitoring or managing data and crossing this information may result into fragmentation of it.
Answers to basic questions such as “who are our most profitable customers?”, “what are the most profitable products and margins?” or “how many employees are there in the company”? Become tough to answer and the accuracy committed because of this separate/divided data.
Master Data gathers all of the available data (unstructured data, transactional data, metadata, hierarchical data, reference data and master data).
Master Data Management Insights
We could define Master Data Management as the technology, tools and processes that ensure master data is coordinated across the company. It allows business users to easily create information with standardized business rules, workflows and approval processes, enabling an enterprise to link all of its critical data to one file, called a master file that provides a common point of reference. It includes both creating and maintaining master data.
Master data is used by multiple applications; an error in the data in one place can cause errors in all the applications that use it.
- An incorrect address in the customer master might mean orders; bills and marketing literature are all sent to the wrong address. Similarly, an incorrect price on an item master can be a marketing disaster and an incorrect account number in an account master can lead to huge fines or even jail for the person who made the mistake.
- Another example of poor master data management is the scenario of a bank at which a customer has taken out a mortgage and the bank begins to send mortgage solicitations to that customer, ignoring the fact that the person already has a mortgage account relationship with the bank. This happens because the customer information used by the marketing section within the bank lacks integration with the customer information used by the customer services section of the bank. Thus the two groups remain unaware that an existing customer is also considered a sales lead. The process of record linkage is used to associate different records that correspond to the same entity, in this case the same person.
That’s why it is important to have a reliable place to manage and integrate all of your data.
Having a correct backup software or cloud storage is a must in order to be more effective and have everything as a unified service with the possibility to use and have multiple data levels.
When having a Master Data Management we are looking to:
- Eliminate duplicated data
- Feed accurate information into all your systems
- Be able to monitor the integrity of your source systems
- Have the foundation from which to enrich your records with third-party data
- Be able to automate a number of otherwise resource-demanding tasks
- Enter Business rules
- Manage location data
- Establish efficient data privacy policies and processes
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They will have all the solutions for you and your company, and the most important, your data.