Master data is information which is essential to the function of a business. This usually involves non-transactional data such as customer details, product names, employee details, materials, lists of suppliers and prices for a company’s products and services. Without data such as this, transactions, which are the driving force behind any business, would not be able to take place. As this master data can often be spread across many different systems and databases within a business, it is important to ensure that this is condensed into or linked to a single, “master” source. Not only does this make transactions and processes more efficient, it can save time and money. This is where master data management (MDM) tools and software can become very useful.
What is Master Data Management (MDM)?
Master data management is where a company works to ensure that its master data is accurate, consistent and comprehensive and is linked into a single file or common point of reference.
The Benefits of Master Data Management
Managing a company’s data appropriately can eliminate poor quality data and the time-wasting debates that can arise as a result of employees being unsure whether or not the master data is correct. This could lead to some bad decisions and poor business performance overall.
Master data management streamlines data across departments and systems within a business. This in turn simplifies business processes making them faster and more cost effective. Government legislation and privacy regulations are easier to comply with, minimising costly fines and helping to maintain a business’s reputation. It can also help provide a consistent understanding of master data entities and the relationships between them. Better insights can be gleaned into customer behaviour, attitudes and requirements which are vital for making informed business decisions as getting a good insurance for your business This greater depth and understanding can only improve customer service, increasing client loyalty and satisfaction.
Essential for Large and Complex Businesses
It can also help to facilitate computing within multiple systems, platforms and applications. In the fast paced, ever changing and ever expanding modern business environment, adequate master data management is becoming more and more of a necessity.
The benefits of effective master data management only increase as companies expand and diversify. A business with strong data management guidelines in place from the start has no need to worry as the company grows. The number of departments might multiply, worker roles may change and expand, and more computer applications may be needed in order to provide a wider-range of complex services. This isn’t a problem if vital business data is kept up-to-date, consistent, and in a single file or programme. Company mergers are another time in an organisation’s life where the benefits of implementing master data management can clearly be seen. The confusion and stress associated with a merger is kept to a minimum, and different applications, information and processes can be integrated quickly and seamlessly.
Following the principles of good data management is essential for your business. Data quality tools can take the headache out of keeping data consistent and accurate. Having clean and concise data saves both time and money – visit WinPure to download a free trial today and see how your business can benefit.