What is Master Data Management?

Everything you need to know about master data management (MDM) and how it brings data together from across the enterprise and business ecosystem to create a single, accurate and transparent record of the truth.

Master data management (MDM) fuels­­­
business success with better data.

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 and objectives through identification, linking and syndication of information and content across products, customers, stores/locations, employees, suppliers, digital assets and more.

How master data management overcomes three common data challenges businesses face by enabling transparency.

MDM is a key enabler for providing a single, trustworthy view of critical business information. Trusted data sources help reduce the costs of application integration, improve customer experience and yield actionable analytic insight. MDM delivers this by overcoming three common challenges:

Siloed systems creating multiple versions of enterprise data. Inaccurate data due to errors made in manual data entry. Dated timelines resulting in data that is not trustworthy.

The key to making master data both trustworthy and insightful is transparency, delivered by an accountable organization which specifies data’s meaning, purpose and governance policy.

MDM defines and implements these policies to certify data’s origin, accuracy, coherence, accessibility, security, auditability and ethics are under supervision and best serving business purpose.

Video

Using MDM to deliver better data, better business and a better world.

Success in the digital economy means giving customers what they want. One thing they want more of: trustworthy data on product ingredients, origin, environmental impact and more. MDM enables the controlled visibility to deliver it. Ready to start creating a more transparent world?


Benefits of master data management.

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, including everything from the buying history of your customers to product availability and supplier interaction.

Master data management allows businesses to:


  • Focus product, service and business efforts on activities that increase sales, and de-prioritize those draining time and resources.
  • Accelerate data maturity by improving the accuracy, visibility and clarity required in digital business.
  • Enable data transparency to meet the evolving needs of customers for personalized, engaging data-rich experiences.
EBOOK Transforming Business with Master Data Management For Dummies

Harness the power of data transparency and start making better business decisions using trusted data. Read Transforming Business with Master Data Management For Dummies and learn about using MDM to ensure data is accurate, updated and shareable across the enterprise value chain.


Unlocking the value of data to drive innovation, differentiation and growth.

Master data management (MDM) empowers business to create data transparency. Ensuring visibility and access to trustworthy data across the business ecosystem delivers multiple advantages.

Video Empower business success using trusted data with Multidomain MDM.

Customer experience, time-to-market and your ability to compete depend on the quality and availability of your data. A master data management solution capable of managing data across domains, on one platform, enables you to drive new digital initiatives and put your data to work where you need it most to ensure your success.


MDM and the cost of poor quality data.

As businesses grow, their IT infrastructure gets more complicated. Acquisitions and expansion into new markets and countries can result in multiple systems, applications and technologies. This fragmented environment creates significant data management difficulties.

MDM provides an organized approach to data management and increases the value and quality of data. It connects information, people and processes to help businesses achieve objectives and improve results.

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How to approach master data management.

Whether you're considering an MDM solution, implementing but don’t know where to start or you have MDM capabilities but feel they need to be updated, these three steps will help you get started.

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What is the role of master data management?

Master data management (MDM) is a centralized solution to bring data together from across the enterprise, enabling businesses to maximize the value and quality of data by eliminating silos, implementing governance and sharing it with everyone that needs it. The results enable them to:

Launch products up to 4X faster. Reduce supply chain complexity. Improve operational efficiency. See all your customer information from every source at a glance.
Slash marketing costs up to 50%. Target customers with more effective promotions. Reduce refunds and customer service queries. Free up resources to focus on adding value in other areas.
How to create a solid RFP for MDM to underpin your enterprise data strategy.

The process of identifying and purchasing enterprise solutions needed to operate a business can vary widely, depending on the size and industry focus of the organization and the nature of their current infrastructure. Explore this useful guide to help you identify the right solution and/or partner.


There are multiple types of master data.

Master data is a single source of common data, but there are many distinct master data types. They are often duplicated across the business and stored on disconnected, siloed systems with little agreement on standard definition.

Product data Rich and accurate product data helps customers make informed buying decisions. Studies show giving people better information and content boosts online sales and reduces returns. High-quality product data also facilitates accelerated vendor onboarding. Customer data Accurate, timely and complete customer data improves business initiatives and streamlines processes for both B2B and B2C companies. It drives accurate segmentation and reporting, more personalized experiences, increased sales, regulatory compliance and more. Supplier data Store and access all data related to your suppliers in one repository and reference it to any other data domain to achieve a 360° view. This results in greater control, closer relationships and an improved supplier and product onboarding process. Location data Location data is essential for managing your physical stores, offices, warehouses and more. Combine location data with product and supplier data to gain better insight into your data supply chain. Party data Mastering party data allows you to create the relationships that are vital to gain an accurate understanding of the value of each of your records. It makes it easier to identify customers and provide better customer service. Reference data Keeping reference data fields such as country, currency and conversions up-to-date is critical to making key business decisions, understanding their impact on the performance of your systems and meeting regulatory compliance. Asset data Managing asset data with disparate systems across departments can drag down data quality. With all asset data linked together in a central repository you have an accurate overview of who is using what equipment, where it is stored, and when it was maintained and by whom. Employee data Employees are valuable assets. Managing employee data in a centralized MDM solution enables you to connect it with other domains and gain new insights, such as which employees have worked on what projects, where they’re located and their skill levels. Ledger data MDM prevents ERP from becoming a ledger data silo. By connecting ERP with other systems and third-party sources, MDM enhances efficiency and becomes your single source of truth, consolidating product data as well as supplier and vendor information. Vendor data For manufacturers, trustworthy and visible vendor data is crucial to secure correct billing, achieve compliance with vendor and end-consumer demands and quickly expand with new vendors who are typically retailers, the manufacturing company’s B2B customer.
The data economy demands cross functional leadership

How can all of the CxOs come together to maximize the organization’s data? This brief will help you navigate each role in the new data economy.



How master data management enables data transparency and business success.

MDM extends the value of IT investments through integration with enterprise applications and systems. Multidomain MDM solutions cover different data domains relevant to all of your business challenges. Two of the most common are product and customer master data management.
Customer Master Data Management

Gaining a single view of customers is challenging due to data being scattered across multiple, disconnected systems. The inability to provide trustworthy customer data and insight can lead to a poor customer experience, lost revenue and customer churn. Customer Master Data Management connects, cleanses and enhances customer data, providing a foundation for personalized experiences. As well as enhancing the ability to adhere to and provide data transparency to support privacy, governance and regulatory compliance.


Learn more about Customer MDM
Product Master Data Management (PIM)

Also referred to as product information management, Product Master Data Management enables businesses to create a single source of truth for product data, and to share it with speed and confidence with customers and business ecosystem partners. The ability to enable and manage data transparency empowers businesses to address growing consumer demand for information and insight into product ingredients and origin, fueling engaging, trustworthy relationships while maintaining complete privacy and control.


Learn more about Product MDM
According to Accenture, knowing a customer’s purchase history makes them 65% more likely to choose you over a competitive offering.
Master data management capabilities.

Master data management delivers core data capabilities that connect and provide information to every point in the business, enabling teams to drive innovation and digital transformation, including:

Acquire: Consolidate data from multiple disconnected, often siloed systems to produce a complete trustworthy picture.

Profile: Link entities to create new information.

Cleanse:
Generate accurate, well-structured data that is validated, up-to-date and easy to use in other systems.

Manage: Streamline and automate business processes, fuel decision making, implement data governance, ensure compliance and more.

Share: Drive collaborative efficiency and growth by ensuring consistent, reliable, transparent access for customers and value chain partners.

Protect: Know where your data is to make it easier to secure and ensure privacy.

Video How Master Data Management can help leaders like you.

Meet Julia, a data executive entrusted with extracting value from her company’s information. But her team is struggling even with getting a correct and complete overview of the organization’s data. Fortunately, Julia realizes there is a way to break data silos and support business initiatives. Watch the video to learn more.


How to achieve master data management success.

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 four basic things you’ll need to take into consideration, before you embark on your journey to MDM and business success:

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.

PODCAST SERIES Data Matters: The master data management podcast

Data Matters is a quick, ongoing podcast series with data industry experts and guests discussing a range of current business, technology and data challenges and trends.


Trends in master data management: Creating a window of transparency enabling clarity across the enterprise.

The challenge of acquiring, managing and sharing accurate, updated information continues to grow, as the volume and variety of data expands at an exponential rate. Meanwhile, the growth of disruptive technologies, such as AI and quantum computing, makes the ability to maintain data quality, consistency and clarity more important than ever before.

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LET’S START CREATING A MORE TRANSPARENT WORLD Empower data transparency through MDM At Stibo Systems, our mission is to create the world’s most versatile master data management solutions, built to enable businesses to optimize their business, environmental and social performance. Connect with us today to start your journey to creating better business and a better world.
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