What is Master Data Management?
Swati Technologies
Making Revolution In The Data Management With Master Data Management
What is Master Data Management?
Master data management (MDM) is a process that creates a uniform set of data on customers, products, suppliers and other business entities from different IT systems. Master data management (MDM) involves creating a single master record for each person, place, or thing in a business, from across internal and external data sources and applications. One of the core disciplines in the overall data management process. MDM helps improve data quality by ensuring that identifiers and other key data elements about those entities are accurate and consistent enterprise-wide.
What is Master Data?
Master data is the core data that is absolutely essential for running operations within a business enterprise or unit. It is data about key business entities that provide context for business transactions and operations. Data designated as master data can vary by and within industries.
What do I need to know about Master Data Management (MDM)?
MDM solutions comprise a broad range of data cleansing, transformation, and integration practices. As data sources are added to the system, MDM initiates processes to identify, collect, transform, and repair data. Once the data meets the quality thresholds, schemas and taxonomies are created to help maintain a high-quality master reference. Organizations using MDM enjoy peace of mind that data throughout the enterprise is accurate, up-to-date, and consistent.
The categories into which master data is classified are called domains. Common MDM domains include:
But you can also master more specific elements like account, patient, provider, beneficiary, contract, claims, projects, movie, character, airports, aircraft, vehicles, sites, and more. It all depends on the business challenges with which you want to align your data.
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Why do I need Master Data Management (MDM)?
Having multiple sources of information is a widespread problem, especially in large organizations, and the associated costs can be very high. Because data changes over time, it’s easy for it to get out of sync and become fragmented, incomplete, inaccurate, and inconsistent. As it degrades, the people that use it lose trust in it. Consider the impact on a sales call if the account manager accesses customer information that is incomplete or inaccurate:
Is the location the right one, or has the customer’s address changed?
How confident is the account manager in knowing which products the customer owns and uses?
Are there any open service items?
The wrong answer to any of these questions could put a new sale—or existing relationship—at risk. In this example, MDM would ensure that a trusted customer profile is created to eliminate such issues in a company’s data.
MDM addresses the challenges associated with disparate applications that create, capture, and access data across multiple systems, applications, and channels. This includes SAP, Marketo, Salesforce, DemandBase, web portals, shipping systems, invoicing systems, contract systems, and more. With a trusted source of reliable, current data, organizations can get a better view of their products and suppliers, drive customer engagement, and offer a consistent experience to employees as well as customers.
MDM also helps prevent disjointed customer experiences in companies with segmented product lines, multiple interaction points and channels, and distributed geographies. With MDM, companies gain confidence that the data they rely on remains trusted and authoritative.
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What are the benefits of Master Data Management (MDM)?
By providing one point of reference for critical business information, MDM eliminates costly redundancies that occur when organizations rely upon multiple, conflicting sources of information. For example, MDM can ensure that when customer contact information changes, the organization will not attempt sales or marketing outreach using both the old and new information.
Common business initiatives addressed by MDM include: