5 Reasons Why Master Data Management Is Critical
Failure to manage information accurately can lead to several disasters. The key to achieving effective information governance is master data management (MDM). Here is why MDM is critical.
In 2012, Gartner—the American research and advisory firm, identified master data management (MDM) as critical to achieving effective information governance. Without it, a potential disaster is on the horizon. Data is a key asset in every organization and as the business grows, the amount of internally generated and externally accessible data increases dramatically.
A valuable corporate asset, data can help a company achieve its strategic and financial objectives but only if it is managed properly. To ensure this, many organizations today are establishing data stewardship rules, standardizing master data, and cleansing existing data—all components of a master data management (MDM) strategy.
A combination of disciplines, technologies and solutions, master data management helps to create and maintain volumes of data. To ensure the smooth functioning of the organization and derive sense out of the collected data, companies need to create and maintain business data that is complete, accurate, consistent and contextual. Master data management (MDM) can help ensure this.
5 Key Benefits of Master Data Management (MDM)
A data management solution that ensures the uniformity, accuracy, stewardship, semantic consistency and accountability of an organization’s official, shared master data assets, MDM can lead to 5 Reasons:
If every business function maintains specific data/information, then data redundancy is bound to happen. A key benefit of MDM is that it eliminates data redundancy and locates it centrally with complete coherence and specifics.
Less Data Discrepancy
One of the biggest problems with maintaining multiple records is that a change to data at one location remains isolated and isn’t reflected in other places, leading to data discrepancies which may result in business catastrophe. By enabling master data edits or changes, MDM ensures that data updated at one location is reflected at all other locations. This ensures the consistency of data. By ensuring data consistency, MDM makes it easier to work with data and create a consistent workflow.
As it is a key data source, MDM acts as a reliable basis of information for all kinds of business operations.
Useful and Effective Data Analysis
Redundant, incoherent and unrelated data can result in wrong data analysis, which can be fatal for any business. By eliminating redundancy and ensuring data consistency, MDM allows organizations to perform data analysis that provides them with the ability to make smart business decisions.
Optimize Business Processes
With master data management, you can optimize many business processes. These include financial reporting, compliance management, customer management, supply chain management, security management, privacy management and more. MDM helps to maximize the effectiveness and efficiency of these processes.
Consistent and trusted master data is the key to achieving effective information governance. A master data management (MDM) strategy can help ensure that. To assist with the implementation of this strategy, we offer master data management solutions. Contact us today for more information.