What is the point of setting up a central repository of MDM in companies ?

Master Data Management (MDM) is rooted in the need for organisations to optimise the consistency and quality of their key data – product data, customer data, asset data, location data, etc. Many firms today have a multitude of separate applications and systems where data, as it moves from one department to another, can become fragmented, duplicated and more often than not, out of date. When this happens, getting accurate, timely and unified answers to the most basic but fundamental questions about any type of performance measure quickly becomes an uphill battle. What’s more, as the number of data sources grows, it becomes increasingly difficult to manage them properly and to ensure that their definitions are kept up to date so that everyone in an organisation has access to the same information. For this reason, companies are increasingly turning to a more informed data management solution: the central data repository.

What is Master Data Management Software ?

Master data management software is a tool that manages a company’s sensitive data. It automates the master data management process, i.e. it manages the data from a broader perspective.

Master data management software is used primarily to maintain data integrity and remove duplicates and inconsistencies. MDM software is integrated into an IT infrastructure and digitises master data elements when creating, processing and storing data. It produces a master data repository and categorises data according to business standards and objectives.

Why implement a Master Data Repository ?

Master data management has many benefits. Let’s take a look at some of them.

• Eliminate poor quality data – Centralizing data allows all stakeholders to have access to the most up-to-date data and thus leads to a greater level of collaboration.
• Accelerate business processes – Streamlining data across the enterprise helps create a more productive process and further increases the level of collaboration among those involved.
• Eliminate redundancy – Centralizing data ensures greater data uniqueness.
• Improve decision making – Master Data Management enables companies to perform data analysis that is more likely to lead to intelligent business decisions.
• Ensure data reliability – MDM provides a reliable information base for all business operations.
• Optimise the supply chain – MDM software provides accurate information on inventory, product returns, out-of-stock items, etc. throughout the supply chain, improving inventory management, forecasting and customer service.
• Increase customer satisfaction – Master data management helps personalise customer interactions to provide a more rewarding experience across all channels, thereby increasing sales.
• Improve compliance – Centralized and unique data reduces costs associated with compliance reporting and penalties.

What type of business benefits most from Master Data Management ?

MDM is a particularly attractive solution for large organisations and those with frequent or large-scale M&A activity. Acquiring another company creates large-scale data integration challenges that a central data repository is well suited to address. As such, this tool can significantly accelerate the time to value an acquisition.