Understanding Master Data Management
Master Data Management (MDM) is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, semantic consistency, and accountability of the enterprise’s official shared master data assets.
In other terms, MDM is a comprehensive process of linking all data critical to the enterprise into a master file, hence streamlining data sharing across the enterprise.
Poorly-managed customer data can result in unnecessary risk and can put significant cost savings out of reach. There are a number of critical challenges an organization faces in order to derive meaningful value from customer data managed within their source systems. Some key challenges are:
- Customer data is managed in disparate source systems
- Delayed updates from source systems result in outdated and stale data being fed into marketing and customer touch points
- Management does not get a single version of the truth
- Compliance regulations like FACTA, FDA-GUDID, and GDSN are not adhered to due to factors such as…
- Data decay
- Multiple versions of customer data across different source systems
- Legacy CIF with rigid architecture, out of sync with agile environments
- Mergers and acquisitions compound existing challenges by bringing in more source systems along with customer data
- Exponential growth of data results in bad data quality affecting decision making
Why Master Data Management?
Master Data Management addresses core data challenges every enterprise faces and ensures effective management of data as an enterprise asset. The following are the key benefits of implementing a Master Data Management solution for an enterprise:
- Golden Copy of the Master Record sourced from multiple data providing systems.
- Process-driven, real-time data updates ensure improved data accuracy
- Accurate and reliable internal and external reporting with reduced compliance risk
- Streamlined data operations and efficient data architecture ensure the right data is available for the right system at the right time
- Reduced complexity in retrieving data from multiple systems, thus supporting agile environments
- Reduced cost of ownership (personnel and infrastructure) since data is centrally managed
- Faster management decisions since data required for management information reports are centrally available in the master data management repository
MDM Implementation Challenges:
There are a number of challenges faced by teams implementing MDM solutions. Some key challenges are:
- Stakeholder Engagement – Like the problems faced by any back-end system, MDM programs are impacted by a lack of stakeholder commitment as MDM is seen as a pure IT initiative. It is very important for any MDM implementation project to develop a plan to engage business users very early to make them understand the benefits MDM will bring to their daily functions.
- Executive Sponsorship – Since MDM involves lot of change management, obtaining and sustaining executive sponsorship throughout the implementation phase is key to adoption. It is necessary to show quick wins by integrating reporting and CRM systems as a priority.
2016 Analyst Quadrant on Master Data Management Solutions
Informatica has been identified as the market leader, offering niche solutions which satisfy the ever-changing MDM landscape. Mastech InfoTrellis is an Informatica partner, offering premier MDM implementation services to leading technology enterprises.
In conclusion, Master Data Management has exponentially evolved from the days where it catered only to manage the customer data segment. In recent times, companies are more open to invest in Master Data Management solutions, which can manage multiple business domains. Mastech InfoTrellis is here to facilitate that management, efficiently and effectively.
Director, Technology – Mastech InfoTrellis