In this digital age, data is the most prized possession of any organization. Efficiently managing your master data will enable your business to thrive in a competitive market. The thing is, though, creating clean shared datasets can be a daunting task, especially when done manually.
Master data management (MDM) will ensure your master data stays clean and consistent after every update and expansion. Moreover, the shift towards software-as-a-service (SaaS) makes data management a critical issue. But what exactly is master data management? To put it simply, it is a collection of technology, practices, and tools that ensure master data is consistent across an organization. This article explores a few reasons why you need a master data management tool.
A master data management solution increases efficiency.
Many organizations find it difficult to manage the increasing volume of enterprise data they accumulate. The manual process of managing master data is both cost-intensive and time-intensive. With master data management software, you can break free from complex data structures and cumbersome spreadsheets.
An MDM solution allows you to access data stored in multiple data silos and increases reporting efficiency. Additionally, it automates most aspects of the data management process, which invariably increases the efficiency of your operation. When looking for an MDM platform for your business, opt for one that offers many MDM capabilities.
It helps improves data quality.
The main objective of the master data management (MDM) system is to improve the consistency and quality of master data assets. Many applications rely on a list of shared data assets such as unstructured data, metadata, reference data, hierarchical data, and transactional data to function optimally. For example, a typical CRM or ERP system has a Customer Master, Account Master, and Item Master data lists.
Furthermore, MDM eliminates duplication and inconsistencies in datasets. An error on one data list can result in errors in the other applications that rely on that dataset. For instance, a wrong address in the customer master list may mislead your sales team into sending orders and bills to the wrong address. With a master data management tool, you can eliminate these errors in data once and for all.
It speeds up the decision-making process.
Thanks to innovative technologies like MDM, the practice of making business decisions based on gut instincts is outdated. An MDM software provides an innovative solution for master data management, data governance, hierarchy management, and reference data management.
When used for data integration and analytical processes, MDM solutions can help business leaders mitigate risk and make smart, fast decisions. Business users of these MDM platforms convert the master data into actionable insights. As a business leader, you can rely on the insight gained from the MDM tool to make fact-based enterprise-wide decisions. More so, it becomes easy for you to spot emerging trends that you can use to improve business performance and exploit new opportunities.
It offers better data compliance.
With so many data regulations and business rules, businesses run the risk of regulatory non-compliance. Master data management (MDM) software can aid your business organization’s efforts to comply with laid down regulatory mandates. Suppose your business is situated in the United States. In that case, MDM software can improve your compliance efforts with laws like the Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley Act (SOX). More importantly, try to keep up with new data privacy and protection laws that guide data management processes.
It helps improve your data governance program.
A typical master data management solution has many attributes. Like we mentioned earlier, MDM encompasses the standards, practices, policies, and procedures of a data governance system. A master data management solution improves data quality metrics that demonstrate the business value of your data governance efforts.
Furthermore, data stewards can leverage MDM tools to excel in stewardship. MDM software will also enable them to efficiently run the data management on your behalf. The deployment of this technology is a must if you want users to adhere strictly to data governance policies.