Master Data Management
Debunking myths in master data management
Businesses are overwhelmed with bulk data as disparate and fragmented digital sources of information are becoming difficult to manage. Merely collecting data is not enough; it's crucial to consolidate data and present it in a consistent, reliable format. Master data management (MDM) enables organisations to improve the consistency and quality of data and manage their official master data assets across their entire enterprise uniformly.
As per an estimate, the MDM solutions market will grow from $16.7 billion in 2022 to $34.5 billion by 2027, at a compound annual growth rate (CAGR) of 15.7%. Data has now become the most important digital asset, further establishing the importance of MDM for businesses. Despite the capability of MDM, there has been a lack of understanding as to what MDM is and isn't, which has prevented many businesses from taking full advantage of it. In this blog, let's examine some of the common myths surrounding the usage of MDM.
- Myth 1: The nature of master data management: MDM is a framework designed to understand critical concepts that, when implemented in combination with best practices, will lead to data management success. MDM software is a tool that can help you successfully implement the MDM framework. It offers a single data point of reference for the entire business.
- Myth 2: About accountability: MDM solves a wide range of business issues. Maintaining clean master data may require changes to business processes. Some of the most difficult MDM issues are less technical and more political in nature. However, IT mainly plays a role in MDM in implementing, deploying, updating, and providing technical support to deliver business value to their customers. The complete responsibility of an effective MDM deployment is shared by all stakeholders equally.
- Myth 3: Comparing an ERP system with an MDM solution: ERP systems have limitations but can be robust, along with MDM solutions. It is because MDM can help consolidate data into a unified platform, providing a complete, accurate, and consistent database for data processing in a single data centre. An ERP powered by MDM enables organisations to automate critical operations with more accurate data and deliver better customer service.
- Myth 4: MDM is only for large enterprises: Businesses of all sizes should be aware of how data can make pivotal differences in efficiency, customer experience, and overall revenue. We have learnt that data-related problems customers face were common across all companies. Many larger organisations are tackling these challenges using a more structured approach. It has also become evident that even smaller companies need MDM solutions.
- Myth 5: Costs of MDM solutions: While MDM software and related implementation costs were much higher several years ago, they've dropped significantly now. There are many factors behind this. One aspect is that competition between vendors has driven down prices. The second is that hosting an MDM software is counted as an operating expense for the company instead of a capital expense. This is because hosting MDM reduces costs by eliminating hardware, support, and maintenance.
- Myth 6: Existing MDM solution will suffice: Many businesses have incorporated data taxonomy into their business strategies, which is crucial in today's economy. But the same businesses are struggling to obtain the full spectrum of benefits offered by MDM. Equipped with cutting-edge technology, MDM solutions now provide better, more manageable data for the user. Moreover, analytics are now embedded in the MDM system, enabling users to generate reports quickly and easily.
A more in-depth and detailed understanding of data has become increasingly critical to the ever-evolving business landscape. As your business expands, you need an MDM solution that can grow with you and continue to deliver insights that help you make better decisions.
For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like living organisms, will be imperative for business excellence. A comprehensive yet modular suite of services is doing precisely that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.
How can Infosys BPM help?
The MDM software solution from Infosys BPM provides comprehensive services and coverage of all areas of data management. Infosys BPM Master Data Management (MDM) services provide a scalable, authoritative, and efficient data governance solution and improve data quality levels.