Master Data Management

Unlocking business value through master data management

In a fast and data-driven world, success depends on dealing with challenges and grabbing opportunities. However, how does one deal with the sheer volume, variety, and velocity of data? The answer lies in elevating and maintaining its quality using smart master data management solutions which are the key to sustainable success.

Innovative and forward-looking businesses are leveraging MDM to define and manage critical data within their organisation. The global MDM market is set to grow at a CAGR of 18.38%, reaching $4.58 bn by 2027.

This article explores the important components and benefits of smart MDM and its synchronicity with data governance.

Important components of smart MDM

Master data is crucial for managing and maintaining accurate, consistent, and timely data across the organisation. It helps streamline processes, reduce errors, and drive business value. Smart MDM builds upon intelligent technologies that enhance data quality, accessibility, and usability. Its key components are:

Data quality enhancement

MDM implements data validation, cleansing, and enrichment to ensure that the data coming in from different departments is accurate, complete, and up-to-date.

Data governance

Smart MDM adds intelligence to data governance through automated workflows, role-based access, and data lineage. This helps organisations control data quality while sticking to compliances and regulations.

Data integration and connectivity

Medium or large businesses with several departments and systems can develop data silos. Smart MDM bridges the gaps and integrates systems to break these barriers. Interdepartmental connectivity fosters collaboration, easier decision-making, and operational efficiency.

Analytics and insights

Organisations can leverage analytical tools to extract valuable insights from the master data. It helps businesses identify patterns, trends, gaps, and opportunities to strike proactively. Leaders can use MDM data to plan and make informed decisions.

Benefits of smart MDM

You must implement smart MDM with a holistic approach where your MDM initiatives must align with business objectives. Select the technology framework and data governance framework that offer automation, integration, and enrichment. If you do it the right way, smart MDM has the following benefits:

Better customer experience

Gain a 360-degree view of the customer journey to personalise marketing campaigns. Leverage the cross-selling and upselling opportunities and provide improved customer service.
For example, your customer care executive can give a better service if they can readily access all the past interactions across departments.

Higher operational efficiency

Accurate and accessible master data streamlines the operations by reducing manual errors, accelerating processing times, and allocating resources efficiently. It eliminates costly delays in inter-departmental data flow and simplifies planning.
For example, if a business is experiencing high turnover rates the leadership may want the employee data from HR and payroll departments to analyse the problem. With MDM, they can quickly extract the required information and design strategies to retain talent.

Informed decision-making

Up-to-date and readily accessible information about customers across departments gets rid of the guesswork. A smart MDM helps the company’s leaders make quick and informed decisions based on real-time data.

For example, a business that has missed its sales targets over the last two quarters wants to analyse the reason. Leadership can quickly analyse the problem by extracting data from customer service, product design, and marketing departments. It could be an external factor, such as changing market conditions, or an internal factor, such as unsatisfactory customer service, which has resulted in lower sales.

Innovation and agility

Businesses that do not innovate their products and services stagnate and quickly lose customers. You need the ability to analyse and grab market opportunities and innovate to stay ahead of the competition.
For example, a travel business that provides only hotels risks losing its customers to a competitor that provides composite services, including transportation and ticketing. By analysing customer needs through MDM, a business can innovate quickly to offer value-added services.

The synchronicity between data governance and MDM

Businesses looking to implement master data management must have a governance model to unlock its true potential. This is where data governance enhances the value and becomes an essential component of master data management best practices. Data governance creates and enforces policies, procedures, and standards that ensure data reliability, security, and usability. It defines clear roles and responsibilities and is an asset for effective MDM implementation.

How can Infosys BPM help with MDM Advisory?

Use Infosys BPM MDM services as a roadmap for the organisation’s data management journey with a focus on actionable insights and sustainable improvements. Leverage the advisory in maturity assessment and data strategy, defining the operating model, MDM process blueprint, and master data projects.

Read more about MDM advisory services at Infosys BPM.