Master Data Management
An introduction to the master data management manual
It is a known fact that data is at the core of today’s digital workplace, especially when considering the role of MDM and data. While data-driven businesses and data-intensive industries stand a lot to gain from the sheer volumes of data, its disjointed, scattered, and unstructured nature makes it difficult for the workforce to find, access, understand, and use it to their benefit.
Data redundancy and inconsistencies are common problems for all types of businesses. What you really need is a master file to which all your business-critical data (key data assets like product data, asset data, customer data, location data, etc.) can be linked through effective data integration.
That is where the concept of what is master data management (MDM) comes into the picture. Here’s looking at the concept of MDM, why it is so important, and how you can implement the right MDM solution for your business, especially when leveraging customer master data.
What is master data management (MDM) and why is it important?
According to a leading research and advisory firm, what is master data management can be explained as business discipline that blends business and IT to ensure the semantic consistency, accuracy, stewardship, governance, and accountability of an enterprise’s official shared master data assets.
MDM is an integral part of the enterprise data management architecture designed to help businesses get a consolidated view of the master data across the organisation. With master data maintenance, organisations can enterprise data across key domains such as products, materials, customers, vendors, pricing, and employees, ensuring a strong data model with reference data.
Challenges in the master data maintenance process
- Redundant data: A Threat to Efficiency
- Inconsistent data Across Systems
- Inefficiencies in business processes
Redundancy or duplicity is a common problem that businesses face because of the same data being maintained across different processes, systems, or applications for various purposes. The problem with this model is that the same transactional data will have multiple attributes depending on who is saving it and where it is being stored complicating the view of data. A well-structured master data maintenance process can help reduce such redundancies by centralizing and standardizing data management practices.
When you try to consolidate data scattered across systems or applications, errors and inconsistencies are likely to appear. The biggest challenge here is that data discrepancies can lead to loss in revenues and brand value and even invite legal action in some cases. Implementing an efficient master data maintenance process ensures consistent master data consistency and accuracy, minimizing these risks.
Wrong entries, data redundancies, and discrepancies in product or customer information can take a toll on the business by affecting the cost and performance of your operations, highlighting the need for a master record.
The Role of Master Data Management Systems in Businesses
According to Harvard Business Review Analytic Services (June 2021), 87% of executives say that having a strong MDM program is crucial to ensuring improved data quality, effective decision-making, and future success By integrating master data maintenance practices, businesses can ensure consistency and reliability in their data ecosystem.
An enhanced MDM, supported by robust master data maintenance, helps businesses gain the following benefits:
- Reduced transactional costs due to drastically lower error rates can be achieved through effective data cleansing practices.
- Consolidated/integrated data for better visibility into the entire data ecosystem can be achieved through maintaining master data maintenance practices effectively.
- Standardisation of data across processes, applications, and systems is crucial for maintaining compliance and effective data governance while ensuring consistent master data.
- Simplified data architecture and navigation for easy data accessibility, particularly within a data warehouse.
- Efficient collaboration and data sharing between employees and teams enhances the overall information management strategy.
- Third-party apps or software integration can enhance the functionality of your MDM platform.
- Automated data governance is essential for maintaining master data integrity and compliance.
MDM essentially helps organisations offer better (more efficient) services, stay on top of logistics, and deliver an exceptional customer experience through effective master data governance and customer data integration.
Get started & know What is Master Data Management Strategy with Infosys BPM
Our MDM services help enterprises consolidate disparate records and build a unified hub to better manage product, supplier, distributor, and customer data so you can get a 360-degree view. Backed by effective master data maintenance practices and the Infosys Global Delivery Model, our master data management services ensures cost reduction, process improvements, and efficient unification of your data.
Our phased implementation approach is tailored to suit your business process maturity and financial requirements. Discover our organised, flexible, and scalable MDM hosting and implementation solution.
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