Here's Everything You Must Know About MDM
What is Master Data Management?
Master Data Management (MDM) is the process to coordinate data across enterprises’ applications and processes using advanced technology, and tools. MDM provides an integrated service that provides accurate, consistent, and complete master data across the enterprise’s applications and to business partners.
Master Data Management has the capabilities of handling not one but multiple domains at once depending upon the technology and tools used. The benefit of multidomain MDM is that it provides consistent data across domains, easier and faster data analysis to take necessary business decisions, and a higher return on investment.
What is Master Data?
Master data is an organization’s core data, containing the basic information like contact information of the customers, details of products, locations of the office, etc. It often remains the same but only is changed when a major change occurs in the data such as a change in the contact information of a customer or client.
Master data covers four domains, and subdivisions within these domains which are known as subdomains, entity types, or subject areas.
Domains of MDM
Customers: Subdomains include customers, employees, and salespeople.
Products: Subdomains have parts, stores, and assets.
Locations: Subdomains include office location and geographic divisions.
Other: Subdomains include things like warranties, licenses, and contracts.
Benefits of MDM
Increase revenue growth
To make the customer aware of cross-sell and up-sell offers, one needs access to dependable and complete data for all customer touchpoints. MDM provides a key to these offers through master data on customers, products, and relationships between master data domains. This ensures that the right product is pitched to the right customer which in turn increases sales and eventually revenue of the company.
IT overheads and costs are drastically reduced and operational efficiency is improved by using a complete, consistent and reliable source of master data across the organization. Master Data Management not only reduces costs but also helps in maintaining relationships across different domains which improves visibility and control over business processes.
Optimize your supply chain
Master Data Management offers timely information on inventory, product returns, and out-of-stock items across the supply chain, improving inventory management, forecasting, and customer service. This information that is provided can be used to support decisions and actions made by the applications, processes, and people that run the business.
Identify and act on insights faster
Master Data Management can speed up time-to-insight and action by allowing business users to directly access, manage, and visually interact with master data. With an upscaled source of product, customer, and vendor data, the introduction of new products and services becomes faster.
Improve Customer Satisfaction
Master Data Management helps in building brand loyalty and increasing sales by easing up the process of creating personalized, consistent interactions and experiences across applications of the enterprise which meet specific needs and wants of the customer.
Centralized and complete master data helps to reduce costs associated with compliance reporting and penalties. Fewer vendor and product compliance issues lead to faster new product introductions and vendor onboarding.