Master data management is technology-enabled process in which business and IT work together to ensure the uniformity, accuracy, stewardship, consistency, and accountability of the company’s official shared master data assets. Master data is consistent and uniform set of identifiers and extended attributes that describes the core entities of the enterprise including customers, prospects, citizens, suppliers, sites, hierarchies, and chart of accounts.
If executed effectively, master data can also streamline data sharing between different company systems and facilitate computing in system architectures that contain a variety of platforms and applications. In addition, effective use of master data management will help make the data used in business intelligence (BI) and analytics applications more reliable.
Company operations depend on computerized maintenance management system, and BI and analytics increasingly drive customer engagement efforts, supply chain management and other business processes.
Here are the 5 reasons for the need of a Master Data Management
It Reduces Workload – At many companies, maintaining master data still reflect a highly manual task. Now a days, Excel spreadsheets are a prominent tool when it comes to master data maintenance. Without central Master Data Management, every maintenance area is responsible for collecting and maintaining master data. Accordingly, the same master data is collected multiple times. And even worse, same master data is maintained by more than one department. Master Data Management will define a clear governance process. That means data is collected only once. This will reduce workload in all maintenance departments due to the reduced or eliminated effort to maintain master data independently.
It Improves Data Quality – One of the key issues of unstructured, decentralized data management is quality. Every department is maintaining its truth. And this inevitably results in problems in terms of reporting or cross-functional processes. On the contrary, a radical Master Data Management acts as one single source of truth. A source that gives all relevant master data and directly leads to the benefit of superior data quality. Data quality is not only about the correct data but also the most up to date.
Data Compliance & Governance – Having all master data in one central place enables companies to align data compliance and governance processes. In addition, state-of-the-art master data systems provide the likelihood to define structured data responsibilities.
Improved Business Processes Efficiency – Master data management represents the single source of truth to support business processes. Since many master data systems offer easy-to-use applications, employees can access the latest and high-quality master data whenever needed to support their operations. Accordingly, all employees will have quick access to a vast knowledge base. This will help drive process efficiency.
Improve Decision Making – Master data management offers the possibility to provide a comprehensive, and complete view of a company’s master data across the organization. As a result, company-wide decision processes depend on the identical and latest set of master data. Subsequently, it will help executives, senior management, and other employees make informed and fact-based decisions. This will put dynamic data in the spotlight.
Master data management will help your organization improve the master data quality, resulting in fewer errors and less duplication. One of the primary benefits that MDM provides is increased data consistency, both for operational and analytical users. A uniform set of master data can help reduce operational errors and optimize your business processes. It can also boost the accuracy of BI and analytics reports, resulting in better strategic planning and business decision-making.
Some benefits that Nidhix can assist you by establishing master data management include: