The Beginners Guide to Master Data Management
Consumers are continuously going to shop online, and this makes companies depend on data for guidance. Data has many details; from customer data, product and service information, and market trends which are all critical for companies. With all these data, companies are still depending on human labor and spreadsheets to analyze data.
The problem with this trend is that data is scattered and it can be tough to update the data. It is not easy to identify trends in the marketplace when you have ten spreadsheets that have bad records of data. That is why MDM data is proving to be the solution for companies because they help to simplify the intake of data so that a company can become efficient.
What is Master Data Management(MDM)?
For your company to thrive, it needs master data. This can include product, customer, or supplier information. Master Data Management is the ability to use the information to help your business make decisions. In an MDM system, data is stored in a centrally managed location that makes it easier for users of the system to view, edit, and update data.
For example, let us say you run an insurance company and one of your customers gets married and changes the last name, it is easy to change the record. But if the customer gets two more insurance covers, and you need to update the records, you will have to update the records three times.
If you scale this to several customers, it will tough to update all the records of your customers correctly. But when you use an MDM system, you will only make one update which will reflect in all the other places. This makes it easier to work with an MDM system.
Why do you need MDM tools?
In a study that was conducted in 2015, it was discovered that approximately 60% of company’s data is not reliable. Although data is what makes the business run, MDM tools can help to reduce the levels of bad data in your organization.
What causes bad data to be formed?
In business, nothing is perfect. You can have errors, wrong information, or empty fields. You can also have duplicate records. Now, if you also have different data versions; let’s say you make an update in one form but you also have another record that has a different version, you will not be sure which record is correct years later.
Effects of bad data
A business cannot ignore bad data because every process in the business relies on useful data. If we look back to the married customer in the insurance company, you will have two different names sharing the same address. If your company decides to send letters to its customers, your client will get two different letters. The effect is that your client will rate your company’s record keeping really low.
What MDM does for your company
When you have MDM installed in your company, you will not only make the right business decision, but you will have master data management best practices implemented in your company records. Additionally, you will also come up with better ways of marketing. MDM tools also assist in your company’s productivity. You will spend more time developing your business instead of updating your records.
What MDM can also do for your company
Businesses in different categories can benefit from MDM tools.
In healthcare, you need to have tight control over customer data. International regulations need to be followed to protect the records of the patients. If you want to protect the reputation of your health practice, you have to use an MDM tool which can cause less stress as they deliver master data management best practices. You will be able to track the records of your patients, employee benefits, and also drug information. You will also make better decisions about your supplies which will cause patient care to improve.
The demand for custom repairs and services in the global automotive industry is making customers go online. This demands companies in this sector to update their data and track it. Your company has to keep track of regulation, new technology and what is selling. With an MDM system, you will cut out duplicate records, and you will have a better chance of company growth.
In summary, an MDM solution is what can make your data organized and updated to help you to deliver exceptional service to your employees and customers.
Author Bio: Adrian Rubin is a graphic designer and freelance writer.