Unlocking the potential: Discovering advantages of a master data management system for your business
Master data management connects, masters and shares data from all your systems, including ERP, CRM, ecommerce and more. It allows you to create a 360° view of your critical business information. Some of the key advantages of a master data management system include: boost business agility, drives revenue growth, develop operational efficiency, reduce costs, lowers time-to-market, improve decision-making, encourages innovation, reduce supply chain complexity, enhances customer, supplier and partner relations, facilitates compliance and mitigates risks.
In this blog post, we will explore the five major advantages of a master data management system and how it can help organizations to improve their data quality, data governance, data integration, data consistency and data analytics. We will also provide real-world examples of organizations who have benefitted from implementing a master data management system. By understanding these advantages, organizations can make an informed decision and choose a master data management system that will support their exact business strategy and objectives.
Five major advantages of a master data management system
Five of the most important advantages of a master data management system are:
1. Data quality
Master data management systems can help improve the quality of master data by providing a single, accurate and consistent view of critical business data across the organization, which can lead to more accurate reporting, better decision-making and improved business processes.
2. Data governance
Master data management systems can help establish and enforce data governance policies and procedures, which can improve data security and compliance with regulations.
3. Data integration
Master data management systems can integrate master data from various sources, including legacy systems and external data sources, which can improve data availability and accessibility.
4. Data consistency
Master data management systems can help ensure that master data is consistent across the organization, which can improve data accuracy and reduce data inconsistencies.
5. Data analytics
Master data management systems can enable organizations to analyze master data and identify trends and patterns that can be used to improve business processes and decision-making.
It is worth noting that the importance of these advantages may vary depending on the specific organization and its needs. Additionally, these advantages are interrelated and can have a domino effect when implemented together. For example, improved data quality can lead to better data governance and improved data governance can lead to improved data analytics.
Examples of organizations benefitting from master data management systems
“I carried out a thorough selection process, but there are only few multidomain MDM systems available. Many software vendors offer similar solutions running alongside ERP systems, but that wouldn’t give us the flexibility we needed.”
— Marco Seijdel, Business Information Manager, Rituals Cosmetics
"By introducing Product MDM, we could see we were going to have structured attributes to give us more consistent data, as well as a big reduction in all that manual keying. [...] By designing the workflow to manage the enrichment and publication of products to our selling channels, Product MDM gave us both efficiency and control.”
— Rebecca Chamberlain, Product Owner – Product information, Marks & Spencer