Master data management (MDM) is the core process used to manage, centralize, organize, categorize, localize, synchronize and enrich master data according to the business rules of the sales, marketing and operational strategies of your company.
Master data can take the form of product, customer, supplier, location and asset information, in addition to any information sources that drive your business.
The efficient management of master data in a central repository gives you a single authoritative view of information and eliminates costly inefficiencies caused by data silos.
It supports your business initiatives through identification, linking and syndication of information across products, customers, stores/locations, employees, suppliers, digital assets and more.
MDM 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 information. You’ll learn everything from the buying history of your customers to product availability and supplier interaction.
MDM allows you to:
of master data that exist in different departments or business
by aligning organizational and operational data
between internal and external groups
by using insights to drive business performance
by automating and streamlining essential data processes
associated with regulatory compliance such as GDPR
Whether you’re considering adopting an MDM solution, you’re implementing but don’t know where to start or if you have some MDM capabilities but feel that they need to be updated, these three steps will help you get started.
As your business grows, your IT landscape becomes more complicated. Acquisitions, expansion into new markets and new countries can result in your business running multiple systems, applications and technologies. This fragmented environment creates significant data management difficulties.
MDM provides an organizing approach to data management and increases the value of your analytics and the quality of your data. It connects information, people and processes to help you meet business objectives and improves the quality of data.
A report from Demand Gen reveals that nearly 85% of businesses said they’re operating databases with between 10-40% bad records. 62% of organizations still rely on prospect data that is 20-40% incomplete or inaccurate.
The role of master data management is to remove silos and manage, share and correct your data from one place. The results enable you to:
“The thing that has made Kellogg’s implementation unique is that it has been global from day one. When we evaluated solutions, it had to have that capability and be able to accommodate all the languages and nuances for our markets around the world."Global Director IT Marketing | The Kellogg Company
Master data is a single source of common data, but there are many distinct data types. They are often duplicated across the business and stored with little agreement on standard definition.
Customer master data management (CMDM)
You can fuel your digital business and IT initiatives—and deliver experiences customers crave—by gaining a single, unified view of customers using CMDM. Transforming how businesses achieve customer understanding, CMDM connects, cleanses and enhances customer data. It gives enterprises the foundation they need to boost their business through segmentation and personalized customer experiences. In addition, they can more easily adhere to governance and regulatory compliance.
Product master data management (PMDM) brings all your product data into one place to create a single approved source of truth. This enables you to acquire, manage and share product data across your enterprise to feed consistent, accurate and timely information to systems, people and trading partners.
MDM delivers core data capabilities that connect and provide information to every point in the business. You can truly transform your business strategies because you have high-quality data dispersed enterprise-wide.
Combine data from isolated systems to produce a complete picture.
Link entities to create new information.
Know where your data is to make it easier to secure.
Generate accurate, well-structured data that is easy to use in other systems.
Collaborate to reduce inconsistencies and improve integration.
The more you understand the complexities of your business challenges, the more deliberately you can begin to choose your master data management solution. To help, here are seven steps to making your MDM project a success.
After you’ve built your strategy, but before you embark on your MDM journey, take into account four considerations:
Build the business case
Since there are many stakeholders and factors involved in any large-scale IT project, the below guide will help you build the business case.
Align with your mission
Consider how your plan aligns with the purpose of your business. You should also develop your roadmap to highlight the obstacles you need to overcome.
Choose the right approach
Consider the available delivery options. For example, choose either a linear or an agile approach.
Quantify business value
Consider what success looks like to you and establish clear, attainable metrics to track and measure results.
Even if you are certain that investing in a master data management solution is the best way for your organization to succeed with your data, you will still have to 'sell it' to the rest of the decision makers. Since there are many stakeholders and considerations involved, we have developed a guide that you can follow to build the business case.
Working towards the below trends will help you improve the level of control and insight you have over your master data, allowing you to serve customers better, improve business output, remain compliant and increase revenue.
Provide a seamless customer journey however they engage with you.
Improve your business processes for the GDPR.
Develop customer-centric experiences, products and
Use IoT to drive innovation and AI to support business decisions.