Master data management (MDM) is a powerful tool that companies are increasingly using to manage business operations, optimize data, enhance analytics and make informed business decisions. MDM platforms help companies quickly adapt to changing market conditions and consumer demands.
Most companies see MDM as a key component of their data commercialization plans, and in today's data-driven world, the importance of MDM cannot be overstated. But what is master data management and why is it so important to today's organizations?
What is Master Data Management?
Master Data Management (MDM) is a method of collecting, storing and organizing the underlying data that flows through a company's digital ecosystem. This includes, but is not limited to, customer, supplier, product, part, employee, material, and location data.
An important step in the management of this data is the implementation of an effective master data management platform, which should function as a single source of truth, constituting a “bank” of agreed information for everyone in the organization.
The right master data management platform must extract important business data from various aspects of the company, while allowing key personnel to view, manage and analyze this data through easy-to-use interfaces.
Poor data quality can cost organizations millions of dollars a year. MDM gives companies an accurate and reliable view of data they can use to make better business decisions and increase customer satisfaction. Having a fluid, data-centric architecture also allows companies to respond to ever-changing market conditions while assessing risks and opportunities.
Basic data – the key to MDM
Master Data is the underlying data flowing through the enterprise digital ecosystem. This data consists of a huge amount of information. This can include reference data – publicly available information such as customer addresses and phone numbers – or company-specific data such as supplier materials, products, parts, locations, recipes and more.
Every department in the organization uses master data to make informed decisions, plan effective strategies, and measure their effectiveness. Master data is the foundation that allows companies to develop analytical capabilities and manage their businesses.
Master data management means the systematic management of this master data through a comprehensive data management platform. MDM systems typically consist of several components including data integration, data quality, data management and data synchronization.
As part of the MDM solution, data is collected from multiple sources (internal and external), cleansed, standardized, and made available to multiple systems across the organization.
By providing a centralized data management system, MDM solutions help enforce data standards, policies and procedures while ensuring data quality, accuracy and consistency across your organization.
What is the purpose of master data management?
Master data management solutions connect products, customers, employees, suppliers, physical locations and more into a cohesive, manageable data ecosystem.
MDM serves several purposes, including:
MDM systems help organizations develop effective business strategies, creating a unified experience for key decision makers, using data to personalize customer experiences and tailor product offerings, and creating a unified internal data management system.
By providing an intelligent data center that can handle massive amounts of data, master data management platforms allow users to extract insights and automate key processes, saving organizations time and money. Data sharing has also been improved as the time and effort required to manage data is reduced and data availability increases.
MDM helps companies maintain compliance by providing accurate, consistent, accessible and up-to-date master data. Master data management systems allow organizations to track and document data usage and changes that are often required to comply with regulations.
Master data management helps companies ensure that their data is accurate, complete and consistent across the organization, enabling them to make better decisions. Having a single source of true data improves data quality across the organization and minimizes errors that could give an inaccurate picture.
MDM improves data transparency and eliminates data silos across the organization, enabling better alignment, consistency and growth.
Master data management systems can help organizations reduce costs by reducing the incidence of data errors, eliminating redundant data and improving organizational efficiency. Additionally, using master data management enables organizations to make informed decisions that increase customer satisfaction, sales and profitability.
With a master data management system, organizations can achieve a wide range of important goals across all levels and departments.
MDM elements (How does master data management improve your data?)
The problem for most organizations is not a lack of data. This is because data is often difficult to access, inaccurate, and inconsistent (among other things). Master data management systems consist of several components that help companies improve their data.
When data is stored across multiple silos or across multiple divisions of an organization, it can be difficult to get a comprehensive view of the data. Master data management helps consolidate this data into an integrated view. MDM pulls key information from diverse sources to create a one-stop shop for trusted data. By combining internal and external data, organizations gain a holistic view of business operations and their impact. Accessing this data allows decision makers to create and implement more informed strategies for their operations.
If your organization has data quality issues, it can result in poor decision making, inefficient operations and increased costs. Master data management, on the other hand, gives your company constant access to reliable and accurate data. MDM deduplicates and standardizes data to streamline operations so everyone in your organization can trust your data.
Failure to properly manage data within an organization leads to inconsistent data management practices. However, a successfully integrated MDM solution allows the company's key personnel to seamlessly visualize, manage and analyze large amounts of data. With a master data management system in place, organizations can establish a consistent framework for managing their data – including how the data is used, how the data is managed and who is responsible for it. MDM not only adds governance to the data structure, but also to the datacontext.For example, organizations can rely on master data to track and verify an item and its state (where it is, when it was created, etc.).In addition, the use of MDM technology allows the implementation of automated processes and data mining. By strengthening data management practices, MDM helps organizations streamline workflows and more easily collaborate across locations and departments.
Master data management helps organizations ensure the consistency of data from different sources, ensuring that identical sets of data exist across all relevant systems. Data synchronization is the continuous harmonization of data updates, ensuring that a data update in one location will spread changes to all other locations. This element is crucial to maintaining data accuracy and reliability across the digital ecosystem and to supporting consistent decision-making based on the most up-to-date and unified data.
These elements make MDM bring measurable value to companies. But what are the actual steps in the master data management process?
How MDM Works: A Step-by-Step Guide
How does master data management create more useful and effective data for your organization? It's a four-step process.
1. Data collection
MDM platforms act as a single source of truth, collecting data from diverse sources across the organization and beyond. During the implementation of the new MDM system, all sources of master data will be located and identified, from product lists to internal spreadsheets and data networks. According to the established strategy, data is then collected on the relevant domains – customers, suppliers, products, parts, employees, materials, locations and much more.
2. Data consolidation and cleaning
The collected information is then processed and standardised, and any inaccurate data is removed, cleaned and corrected. Data cleaning can include normalizing data formats, replacing missing values, standardizing values, and mapping attributes.
3. Data centralization
The master data management system increases the visibility of data across the organization by creating a central place in the enterprise where key employees can view and manage data. This single, comprehensive view helps you analyze your data more accurately and make business decisions. Additionally, streamlined workflows promote cross-departmental collaboration and innovative user interfaces help ensure data privacy and compliance. Cloud-based MDM solutions offer even more benefits, including greater stability, scalability, availability, cost savings, reduced IT maintenance and enhanced security measures. These technologies also typically include automatic updates to ensure your system is always up to date.
4. Data distribution
Each organization will need to implement a data governance plan that includes designating owners and stewards of primary data, creating automated processes, and complying with legal requirements. Data on the MDM platform can then be made available to anyone in the organization, from anywhere. Managers can get reliable performance metrics and KPIs to help guide business decisions, and data analysts can access reliable numbers for monthly reporting.
With the right MDM solution, the process of implementing these steps can be simple, efficient and timely.
Types of Domains in Multidomain MDM
Data domains are simply large sets of data that cover a specific area of interest. Multi-domain MDM provides a next-generation data architecture that combines data from multiple domains into a centralized platform and extracts intelligence from the interaction of multiple domains. Which products sell well in which locations? Which customers use coupons most often, in which stores, and on which products? A multi-domain MDM system can help companies answer these types of questions.
While each individual data domain plays a critical role in master data management,Multi-domain MDMrefers to cross-domain interactivity that results in insights that no single domain could generate on its own.
Some of the most popular domains supported by Master Data Management include the following.
Customer data domain
The customer domain includes all information about customers that the organization interacts with. Customer domain setup helps anticipate customer needs with centralized records that combine and synchronize customer information from data sources. Understanding consumer data is critical to making smart business decisions that optimize spend. Businesses can use customer data to create more effective marketing campaigns, offer sales and promotions based on historical engagement, and customize marketing campaigns to target customers. Customer master data is your company's ticket to increasing customer satisfaction and improving their experience.
Product data domain
Product domain refers to all the information related to the products in your portfolio, such as dimensions, ingredients, brand and many other characteristics. Product data is most effective when combined across the ecosystem to form a single record that can meet internal and external data delivery formats, standards, and requirements.
When fully implemented, Product Data Domain can be considered a complete Product Information Management (PIM) solution. In this scenario, P.I.M can be run standalone or deployed as part of a multi-domain solution. However, sometimes in the market it happens that a solution provider refers to “PIM”, which is actually not a complete solution, but a “lightweight” version for distributionas "Product Experience Management".
Companies can use product domain data to introduce a new product to a specific market, link finished products with a packaging SKU to a production SKU through APIs, ensure that product descriptions and details are consistent across all channels and can be easily edited as needed, promote continuous processes publishing product data to the market and enable the integration of information in M&A scenarios.
Resource data domain
Asset data helps your organization understand how assets are being used and respond by optimizing marketing or business strategies. Using the MDM system allows companies to optimize product data and digital assets in a central location. Multi-domain MDM solutions combine data from a product domain, feature domain, location domain, and more. Syndigo's DAM (Digital Asset Management) solution manages and distributes digitally stored content (such as images, documents and media files), integrating with other Syndigo solutions to serve as a single source for digital asset archives.
Location data domain
The location domain contains information about all the locations where your organization does business. Location data management helps businesses visualize and manage data from multiple stores, warehouses and other physical locations. Accessing location data in MDM combines external and internal data, eliminating silos and simplifying some of the most important data. Location data can help businesses understand commerce at the single store level by correlating store domain data with product domain data. In addition, it allows companies to manage their supply chain operations more efficiently, optimizing the flow of products.
Provider data domain
Vendor and vendor data management creates a consistent and reliable process for evaluating new vendors, ranking them based on their service and level of access to data, and checking for potential overlaps. Vendor MDM solutions can be used to manage relationships between customers, vendors and product domains on a single platform, enable measurement and comparison of vendor performance to reduce costs through better contract terms or vendor selection, standardize the supplier creation, enrich supplier data through verification and integration with external suppliers.
By combining information from multiple data domains, a multi-domain MDM system can gain valuable insights to help make better decisions.
Impact of MDM on various sectors
The benefits of master data management are not limited to one industry or sector. Instead, MDM can provide solutions to customers in industries ranging from energy to healthcare.
At Syndigo, our solutions deliver personalized experiences across all areas of expertise. Let's look at the potential impact of MDM on a number of different sectors.
Retailers and Distributors
Businesses operating in the retail industry often face intense competition from other businesses who want to attract customers by providing better customer service. Master data management solutions allow retailers and distributors to quickly adapt to customer needs. Syndigo's unique suite of MDM and PIM solutions helps companies unify datasets, processes and domains across products, customers and locations, so companies can learn about their customers, including what they want, need and what's missing. The Syndigo MDM solution enables retailers and distributors to make business decisions that help them stand out from the competition.
Customers in the food industry desperately need centralized, accurate and reliable data, especially when it comes to food safety. Companies often have to comply with regulatory authorities regarding product ingredients, allergen labeling and traceability. Implementing an MDM system can help food industry customers improve compliance, improve traceability and meet consumer demands. For example, master data management platforms allow for quick product identification and location tracking should a product recall be required. Syndigo's complementary solutions for foodservice customers include content creation, global data synchronization network (GDSN) content and multimedia.
Healthcare customers can benefit greatly from master data management. MDM enables healthcare companies to keep pace with ever-changing technology, evolving guidelines and regulations, adapt to rapid growth and leverage diverse data sources, both internal and external. As the healthcare industry becomes a highly digitized industry, MDM enables healthcare providers around the world to improve the patient experience through an integrated data platform. Using a master data management platform also provides highly accurate and reliable data, which is essential for healthcare companies facing regulatory requirements, stringent data standards and heavy data liability. Syndigo MDM healthcare solutions are designed to serve leading brand owners, medical device manufacturers, GPOs, distributors and suppliers.
Whether dealing with manufacturers, vehicles, assemblies, parts or the marketplace, automotive companies benefit enormously from master data management. MDM helps automotive parts suppliers and buyers stay ahead of market changes while maintaining data integrity and compliance. MDM provides automotive customers with a scalable platform and single source of trusted data for products, suppliers, vendors, customers and other domains. The Syndigo Automotive Aftermarket solution was built specifically for this segment and includes industry best practices as well as industry specific analysis and reporting.
Restaurants and Operators
As in the food industry, restaurants and operators need access to highly accurate and reliable master data when it comes to food safety and traceability. Government and consumer requirements for product information put additional pressure on businesses and their data processing technologies, and master data management provides the necessary efficiency, visibility and control of data gathered from diverse sources, both within as outside the company. Syndigo's solutions for restaurants and operators include MDM, GDSN product content and Syndigo's Active Content Engine.
MDM in the energy sector can be used to mitigate risk, identify key areas of opportunity, create long-term forecasts to anticipate peak demand and future capacity needs, and optimize productivity and efficiency in business decision-making. Energy customers need a way to securely manage data across multiple domains, including locations (customers, OEMs, partners, etc.), locations (holes, rigs, and warehouses), and items (equipment, spare parts, and product catalogs) ). . Syndigo's suite of master data management solutions enable utilities to reliably track and analyze important data, while proactively making smart decisions about the unique risks and opportunities that can arise in the energy sector.
packaged consumer goods
Today, the consumer packaged goods (CPG) industry faces a number of challenges – including challenging, demanding, better-educated digital consumers and increasing competition – all pointing to a shift in the balance of power vis-à-vis the customer. Brands, retailers, suppliers and distributors need to find a way to keep up with the sudden increase in the amount, variety and velocity of data in deeply fragmented and often disconnected systems. Companies operating in the CPG space can use implementing MDM solutions to quickly master, manage and distribute their data. In particular, implementing MDM allows companies in the CPG industry to benefit from continuous optimization, better in-store visibility and personalization. Companies can expect greater product traceability and security, streamlined product information management (PIM) and product launch processes, and better connectivity between all departments through automated data flows that eliminate information silos. Syndigo's comprehensive solutions for CPG customers help our customers distribute their data and increase sales across all channels.
Manufacturers are constantly innovating. By helping to optimize resources, reduce costs, grow new channels and uncover new revenue opportunities, master data management enables industrial customers to deliver a better experience across the entire supply chain. With a robust MDM system, companies can make smarter decisions with access to better data in areas such as product development, sourcing and distribution, and product lifecycle management (PLM). Syndigo's product portfolio enables manufacturers to leverage a proven, scalable MDM solution designed to help address unique data and compliance workloads in the industry.
MDM implementation steps
While this often represents a significant improvement over the status quo, moving to an MDM solution can be a big change for an organization. Fortunately, the steps to implement MDM in your company are relatively simple.
1. Understand your current data environment
The first step for companies looking to implement master data management is to assess their current data environment and define business requirements and objectives. This includes locating all potential sources of master data, identifying the business processes that require master data, and defining the data management policies and procedures that must be applied. Additionally, companies must consider their current IT landscape, organizational structure, data quality needs and compliance requirements to ensure a successful implementation.
2. Develop an MDM strategy
Companies considering MDM often look for solutions because their current data is in chaos. Therefore, having a solid data strategy is a key element to a successful MDM implementation. Your organization may have access to all of the world's data, but without an effective data management plan, you could be leaving valuable insights (and profits) on the table. A robust MDM strategy should include a clear plan of data management policies and procedures, prioritization of data domains, development of a data quality framework, and creation of a centralized data repository. Best practices for security measures, data integration and data monitoring should be identified and established. Finally, consider all possible deployment styles.
3. Implement the MDM System
Upgrading to a master data management system should be a smooth and beneficial process. When thinking about how to introduce and implement MDM in your organization, it's worth considering where and how it will have the greatest impact. Deployment styles include MDM Consolidation, MDM Enrollment, Centralized MDM, and MDM Coexistence. Master data management can also be integrated with other business systems such as enterprise resource planning (ERP), customer relationship management (CRM) and product information management (PIM).
4. Continuously monitor and improve the MDM system
A well-implemented MDM system should have an impact on how organizations manage, grow and transform their businesses. Every company implementing an MDM system must educate key employees and decision makers about day-to-day data management. With a wealth of information at their fingertips, organizations can greatly benefit from data mining and process automation. To realize this potential, companies must appoint data managers and stewards to help implement continuous monitoring of the MDM system, and master data must be constantly referenced in making decisions, innovations and important business ideas.
Benefits of master data management
Once implemented, master data management systems help companies achieve their goals and make more informed business decisions. In addition, using an MDM solution brings many benefits to organizations in any industry, including:
Perhaps most importantly, the insights and improved workflows resulting from MDM give companies an edge over rivals in a highly competitive business environment.
Leveraging your business's core data with an MDM solution is critical to digital transformation and innovation, enabling your organization to scale operations, grow revenue and quickly adapt to customer demands.
A cloud-native multi-domain MDM solution like Syndigo's master data management platform ensures data stability and privacy while providing a single, accurate and scalable source of master data.
Is your company ready for an MDM solution? Check out the Syndigo platform
At Syndigo, we use our knowledge, expertise and experience to help brands, retailers, distributors and partners gain control of their data to provide a better customer experience.
Syndigo's industry-leading Master Data Experience platform enables customers to leverage their data through intelligent analytics, automation and multi-domain SaaS solutions. Deploying our cloud-based Syndigo platform will not only help your company better understand your customers, but also move products faster, automate processes, reduce risk and make better business decisions.
Accelerate your company's success with a master database that shapes corporate strategy and data management, providing guidance that will help you move faster than the competition.
If you want to know more about everything Syndigo MDM can doyour company, watch the product demo.
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