Master Data Management (MDM) plays a role, in organizations that handle volumes of data. It encompasses the use of software, governance, processes and standards to ensure the consistency of data. The primary objective of MDM is to establish a unified source of truth for data assets such as customer details, product information and supplier records. Here’s a typical overview of how it functions;
- Data Integration: MDM commences by gathering data from sources, including systems like CRM and ERP as well as external data sources.
- Data Cleansing and Enhancement: Once collected, the data undergoes cleaning procedures to eliminate duplicates and rectify any errors present. Furthermore it can also be enriched with context or information.
- Generation of Master Records: The key step in MDM is the creation of a ‘master record’ for each entity (customers or products). These records represent the up to date and comprehensive versions of the associated data.
- Data Governance: MDM involves establishing policies and procedures, for data management. This includes determining who has access to modify the data defining its usage guidelines and implementing measures to maintain its quality.
- Data Distribution: Finally the master data is shared with systems and users, throughout the organization to ensure that everyone has access to an unified dataset.
- Continuous Monitoring and Updating: Keeping an Eye on Data and Keeping it Up to Date; MDM systems constantly monitor data for any changes. Update the records accordingly. This guarantees accuracy and relevance of the data.
MDM plays a role in helping organizations avoid discrepancies and errors make decisions based on reliable data and enhance operational efficiency. Its significance is particularly evident in organizations that handle volumes of data across multiple systems like CRM, ERP, etc. emphasizing continuous monitoring, updating, governance processes adherence, to standards and efficiency improvement.