Many companies today have multiple systems and applications (i.e. CRM, ERP) where data crossing organizational divisions and departments can easily be duplicated, fragmented, or become out of date. When any of such things happen, it is difficult for a business/company to answer even the most common questions about its efficiency and operations.
The need for timely, accurate information is crucial for businesses. When the sources of data increase, it is hard for a business to keep data up to date and manage it consistently so all business parts use the same information. To tackle such challenges, organizations turn to Master Data Management.
What is Master Data Management?
Master data management or MDM is a process in which a uniform set of data (on products, suppliers, customers, and other entities from multiple IT systems) is created. It helps improve the quality of data by ensuring that the key data elements and identifiers are consistent and accurate enterprise-wide.
Master Data is often referred to as a golden record of info in a data domain, which varies from business to business. It is the core data that is crucial to operations in a particular company or business unit. The kinds of information falling within the master data category vary from industry to industry and even from one business to another in the same industry. For instance, the most common data domains for a manufacturing business include products, customers, materials, and suppliers. Banking firms might pay attention to customers, products, and accounts. Insurers include products, members, and claims. Patients, supplies, and equipment are the most common data domains for the healthcare industry.
Importance of Master Data Management
Data plays a crucial role in the success of a business or a company. Organizations mainly rely on data to make business decisions. Inaccurate or wrong data can lead to the downfall of a business. Data inaccuracy affects a company’s decision-making capabilities, which ultimately impacts the growth and the ability to provide the best customer satisfaction. To avoid this, companies turn to Master Data Management.
Businesses tend to have a lot of data problems as they grow. They utilize many resources to create data and insights, which go in vain if the data is inaccurate or wrong. The most common challenges that necessitate MDM are:
Unreliable data – It can be difficult for businesses to maintain one source of truth, as different types of data is available across organizational locations, systems, and functions. Lack of integration is the main reason behind inconsistent data.
Absence of data governance – Without collaborative data authorization, it is hard for businesses to maintain data accuracy and security.
Manual data repetition – Organizations risk the duplication of data when their data is handled and managed individually by multiple sources. It can lead to dire consequences for businesses.
If your business is experiencing any of the above-mentioned data issues, you should opt for Master Data Management solutions to stay relevant in the market. INVIXO is the most reputed name you can work with for Master Data Management solutions.