Companies have more and more systems at their disposal to optimise processes, manage data in a more structured way and better meet customer needs. One software that is often taken into consideration in this context is master data management software. In today’s reading tips of the week, we tell you what MDM is all about and explain why implementing such a system is a good idea.
MDM: What Exactly Is It?
MDM stands for master data management. It describes a cross-domain approach that includes, for example, suppliers, countries, locations and services. Depending on the domain, business-critical data (e.g. customer, order or financial data) is enriched, validated and referenced with each other. For this reason, it is often referred to as multi-domain master data management. Once the data has been centralised, cleansed and optimised, it can be distributed to third-party systems.
In order to successfully conduct master data management, a holistic approach is required. This means that companies need a 360-degree view of all their data to consolidate it and create complete data sets, known as »golden records«.
MDM: Why Is It Worth Implementing a Master Data Management System?
There are numerous arguments in favour of implementing an MDM system. First of all, such a system helps to bring together all of a company’s master data in one central place – and does so across all domains. In technical jargon, this place is called »single source of truth«.
Basically, an MDM system also improves data quality as well as data exchange between employees and different departments. Innovative analytical options, which, in turn, can lead to new insights, are another advantage for companies. In addition, duplicates are avoided, data silos are dissolved and manual efforts are significantly reduced. Moreover, companies invest less time in unprofitable activities, which means that these resources can be used elsewhere.
It is also possible to integrate an MDM system into a product experience platform (PXP) in order to process content according to the specific needs of target groups and to further promote the efficient provision of data through automation.
Our 5 Reading Tips of the Week
What Is Master Data Management? [Stibo Systems]
Why Taxonomy Is Critical to Master Data Management (MDM) [Earley Information Science]