Every time an organization generates a report, say a financial forecast or a customer list, it depends on data in its systems. But what happens when you are working with redundant data? As you would expect, your business will suffer from efficiency and operational challenges because the reports generated will not reflect reality.
At the basic level, MDM minimizes inconsistent and redundant data in your company. Information about your employees, customers, suppliers, products and services, and materials all constitutes master data. This data is critical for the smooth functioning of any organization. As such, business owners must create and keep complete, consistent, accurate, and coherent data to derive value from the assembled data and make informed decisions. Let’s look at how MDM can help your company.
It reduces redundancy:
If every unit or department on your organization maintains specific data, then redundancy is unavoidable. One of the most important features of MDM is that it eliminates data redundancy by streamlining data across various units and making it centrally located. With a more streamlined data, business processes will become more cost effective and faster.
Useful data analysis:
Un-coherent and redundant data can only give you a small percentage of the benefits. Worse, inaccurate data analysis could lead to costly business decisions that might damage your reputation. MDM will help you to get better insights from your data by providing a consolidated view of critical information about products and customers. A single view of product information can help you introduce new products to the market faster than the competition, thus capturing a bigger market share. Also, extensive understanding of the customers could help your marketing department to attain its goals.
Streamline Data Edits:
Organizations that maintain multiple data records often find it difficult to make edits across all platforms. A change in data in one place may not reflect in other locations. This creates additional work for information users since they will have to go through multiple systems to combine the data. In such a situation, data discrepancies are bound to happen, and this may cause costly errors. MDM software helps you integrate business data across multiple channels so that staff across the organization can access up-to-date information faster and efficiently. Irrespective of the data format, whether unstructured or structured, MDM creates a master catalog of high-quality data with a single unified view.
Support business growth:
The true value of effective MDM increases with business expansion. Personnel roles may change and expand, departments may multiply, and new computers applications may be needed to solve complex business processes. In such a situation, a strong data management framework eliminates worries as the data is consistent and in one master file. Besides this, organizations can also grow with mergers and acquisition and often, each company has its own business applications and processes. The stress and confusion that comes with the merger can be minimized with an integrated data system.
As new data analytics challenges emerge, it becomes indispensable for business owners to assemble the right MDM technology. The best way to start your search is to check the latest Gartner MDM rating. Besides being a technology, MDM is also a business application that facilitates a single view of data across the entire spectrum of the company. The deployment method is, therefore, dependent on the organization structure and business requirements. This also justifies the need to use the Gartner MDM quadrant to identify the best provider in your niche
Don’t assemble MDM without proper analysis of business issues. The process is usually complicated, but working with the right enterprise master data management expert can help you streamline data integration.