Master data is best described as business entities that take action or are acted upon, and the results of those actions are the valuable data insights
We live in a world that is increasingly driven by big data and analytics to provide a window into business processes, customer behavior, and asset data. With so many types of data and various source systems, it's important to have a system that allows you to optimize data processes to ensure data quality as well as operational efficiency.
Traditional methods of collecting and managing data are medieval compared to the master data management systems enterprises use today for data collection, storage, and manipulation. Continue reading to learn more about MDM and how it can help elevate your company.
What is master data?
These days, business entities gather massive amounts of data from various data sources. In order for these large sets of customer data and product data to have business value, there needs to be accurate and uniform source data across the multiple data platforms companies use.
Master data is sort of a type of reference data in the sense that it provides context for product data, asset data, and customer data by identifying and classifying data source systems. For instance, if a company wants to get insights into what products a specific customer likes to purchase from their main location, the master data in that scenario is the store location and the customer.
Master data is best described as business entities that take action or are acted upon, and the results of those actions are the valuable data insights companies use in their decision-making and business processes. In other words, master data provides a single source of truth for product data, customer data, and suppliers. Master data management is integral to ensuring the compatibility and uniformity of master data across disparate systems, even data silos.
Data governance makes data integration easier and cheaper.
One of the hardest things to do with data is to gather data from various source centers and integrate it into a single view so you can compare, contrast, and manipulate the various types of data. One of the reasons the TIBCO is in the Gartner "Leader" Magic Quadrant is because of how easy they've made data integration for both data scientists and business users.
MDM solutions make data integration much easier for your data stewards and much cheaper for your organization. The key is to pick a vendor that will work hand-in-hand with your company to ensure you get the most out of your MDM and data business processes.
Master data management eases the business processes of mergers and acquisitions.
Mergers and acquisitions are commonplace in the business world, especially in financial markets. Even though mergers and acquisitions are about two companies becoming one, the data-sharing aspect is the real crux of the transaction.
With MDM systems, the days of manually inputting workflows for data integration or sharing are long gone. That means you don't have to dedicate time and resources to locking your data stewards in a dark room for days or weeks at a time while different systems link, sync, and share customer and asset data.
Master data management platforms use machine learning algorithms to identify master data and ensure regulatory compliance, even through mergers and acquisitions where there are massive amounts of data being shared between business entities.
MDM technology makes it easier to identify new cross segments in customer data.
Business owners have known for quite some time that the customer experience is one of the most important components of a successful business, and that's why they use data to identify their target consumers and market to them. MDM software gives data stewards the ability to manipulate cross segments of consumer markets as well as pinpoint the products and services to which specific customers might be drawn.
So, does your business really need to implement an MDM strategy? If you plan on keeping your business the way it is now and have no plans for revenue growth or operational and customer base expansion, the answer is a resounding no. However, if you're serious about enhancing operational efficiency and saving money for your company and your customers, your enterprise needs MDM solutions the way a fish needs water.
