Top Ten Master Data Management Benefits Starting With Good Data Quality.
Count the number of articles available on Master Data Management (MDM) benefits and you’ll find plenty. But if you or someone you know has experienced bad Master Data Management system implementation, then you’ll know that Master Data Management benefits seem like a pipe dream.
It is one thing to see a MDM solution on paper and quite another to start feeling excited about Master Data Management’s promise. Usually, you’ll end up with a product no one wants to use because of the amount of time cleaning the data to get good quality information.
Related: 2021 Master Data Management Guide
What are the benefits of master data management?
You may wonder about bypassing MDM for another data management solution. However, good MDM does have many benefits, it streamlines activities with customers and products and prepares the business well for handling newer technologies and capitalizing on process efficiencies.
The top ten primary benefits of master data management are as follows:
- Data Creation
- Improved Data Enhancement
- Easier To Use
- Efficient Data Storage/Maintenance
- Enable Data Disposal
- Data Quality Management.
- Improved Data Integration
- High Quality Data Governance
- Better Data Compliance
- Transaction Efficiencies
This article will cover whether MDM has any value and expand on its ten benefits. It will conclude with the promise of a good MDM, supporting excellent customer service.
IS MDM DEAD?
Whether MDM is dead depends on its data quality. Should you search on a current MDM and retrieve the 100th customer information, you very well may think MDM is dead.
If you must resolve that type of wrong data manually before running any customer and product reports, you will likely go back to your Excel spreadsheets. That way, you can at least standardize your data.
But many a business swears by their MDM system as a valuable tool, shared and used among many organizational processes. A Valuates Report projected the MDM marketplace to grow to 17880 million USD.
So, a useful MDM is worth its weight in gold. Consider these ten Master Data Management benefits.
Related Products: WinPure Master Data Management
Top TEN BENEFITS OF MDM
1. Data Creation
As your business expands, you will need to track and communicate with new customers. Do you want to be the third person from your company, to ask the same new customer for his contact information? Once someone in the organization enters the customer contact data, according to business requirements, you do not need to reenter that customer again; even that person has talked with a different salesperson, the IT help desk, or Human Resources.
2. Improved Data Enhancement
Customer information change over time. For example, some people buy a second home and live at two different addresses. Instead of updating a customer’s contact by creating another record or repeating some information, a well-designed MDM simplifies the update to single master data records.
3. Easier To Use
Customers want to have a consistent and coordinated experience. With a useful MDM, you have a single view of each customer and all that person’s interactions. So, you don’t have to guess whether someone else in your organization has contacted a customer before or if you have the correct contact information. Data becomes much more usable through a Master Data Management system.
4. Efficient Data Storage/Maintenance
As you do more business transactions with your customers and add new ones, the amount of data grows exponentially. This reality increase costs to store and maintain records, even if you have most of your data in the cloud.
Well architected Master Data Management keeps only the essential data. Not only does this save disk space, but you also don’t need to check data integrity for and verify the contents of as many records.
5. Enable Data Disposal
At some point, you will no longer want to keep information about your customer. You only need to remove one customer record using good MDM. MDM provides a single master record per customer that you can remove. You don’t need to wade through your system for every instance of the same customer.
6. Data Quality Management
You need customer information in good condition, accurate, complete, consistent, and valid or good quality. Well architected and applied Master Data Management puts technical constraints on modifying a customer record, preventing duplicate or incomplete entries occurring in subsequent business processes.
Also, master data keeps its data quality level throughout a system no matter which person or department in your organization updates or works with customer data.
7. Improved Data Integration
If MDM had a superpower, it would be data integration. This MDM strength means that customer data can flow easily between the cloud or on-site, or between different database systems.
As companies increase the number of data platforms and turn to new technologies, good MDM makes data migration easier. Even if you do not integrate customer data, now, you probably will.
8. High Quality Data Governance
The power of customer data comes with its trust and availability. Companies do Data Governance to achieve both by securing information, protecting privacy, and granting access so workers can do their jobs.
Good MDM serves data governance. It allows you to easily set permissions across an organization to secure or reach different customers. You only need to set the accessibility once, and that covers any system with that customer data.
9. Better Data Compliance
Since the passage of the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA), data compliance has remained front and center to avoid fines and a negative reputation. MDM, when applied well, makes it easier to show compliance.
With MDM, you can point to one record, assuring auditors that you can handle a customer’s request to delete contact data. Also, you can more easily show you know what customer information you have and where you keep it.
10. Transaction Efficiencies
Good MDM improves transaction efficiencies and reduces business transaction costs as a by-product of the other nine benefits listed above. MDM provides a structure that coordinates data throughout the organization and presents each customer entity’s single view, eliminating redundancies.
Related Reading: Data Management Vs Data Governance
Gartner, a respected analytics firm, states that businesses will inevitably need MDM and consider its complexity and cost. WinPure Master Data Management gives you a more straightforward tool to prepare and clean customer information with the data quality you want in your MDM. That kind of flexibility will transform messy data to match your precise business requirements from the start.
Last Updated on 31st March 2021 by admin