Master data management (MDM) is a process that organizations use to create a single reference source for all organizational processes and operations. The reference source is known as the master data which is an efficient way of keeping data whereby few errors and less redundancy is experienced. Once new source data is added to the system, the MDM helps in identifying the data, collect it and repair it accordingly. The data added must meet the quality threshold to ensure that high-quality references are maintained. MDM solutions ensure that businesses maintain accurate, consistent and up-to-date data on all organizational operations. MDM helps you to get better control of your data.
Why should any organization invest in master data management?
One thing you need to know is that when you introduce master data management in your data system, all your applications and information belonging to your organization will rely on its performance. The master data will control everything from customers’ information, sales data, employees’ data, and financial reporting as well. The good thing is that, if you manage to maintain a clean and quality master data, your organization will reap maximum value from the applications and information you have in the system. On top of this, your organization will also enjoy the following benefits.
1. Risk Management
With MDM you are guaranteed better security for your data and issues such as cybercrimes will be minimal. Also, you will be able to mitigate risks when you have all your data in one place. This is because you can use this data to understand your business environment easily.
2. Easy Compliance To Regulations
There are numerous regulations that you need to observe as a business, and these regulations keep on changing, or new ones are introduced, and non-compliance will expose you to a lawsuit. However, having MDM in your business will help you have a good relationship with regulatory agencies because you can provide them with accurate data anytime they ask for it.
3. Improved Customer Care
Sometimes your customers may want some data on transactions you have completed with them, or you may want to reach to your customers with the right information at hand. MDM will help you do all this efficiently for better customer service, easy sale of opportunities and reliable customer and product records. Having accurate records will protect you from unnecessary liabilities and allow prompt notifications to customers.
4. Improved Inventory Management
A clean and agile MDM is all you need to easily and promptly track your inventories. At the same time, you can forecast and plan sales needs. The master data will help you to ensure that you do not have an overstock or an understock at any given time because you can control your inventories in real time.
Who Can Use MDM?
Most entrepreneurs think that MDM is an effort required by large organizations only. This assumption may be true on the notion that big organizations are the ones with massive data that is not easy to control and manage manually. However, even small-scale businesses can take advantage of MDM because by beginning with master data, data management becomes easier when the business grows bigger. After all, every entrepreneur anticipates the growth of their businesses into something big in the future. With that said, every large organization especially those that deal with mergers and acquisitions or segmented products lines require MDM to prevent integration challenges and crumbled customer experiences.
It is high time business people stopped viewing MDM as a technological issue but rather as a technological solution for proper data management.
Author Bio: Adrian Rubin is a climate change advocate and freelance writer.