What is master data management?
Master Data Management (MDM) is a business-led program for ensuring that the organization’s shared data--aka master data--is consistent and accurate. Master Data Management programs include the people, processes, and systems used to keep master data accurate and consistent.
The benefits of master data management
Increase revenue growth
To provide personalized cross-sell and up-sell offers, you need access to reliable and complete data for all customer touchpoints. MDM can provide a consolidated source of key master data on customers, products, and relationships between master data entities. This accurate data source helps to increase revenue by appropriately responding to customers on their channel of choice. With a better understanding of your customers, you can ensure that the right cross-sell and up-sell offers are sent to the right customers at the right time.
With Master Data Management, you can eliminate IT overhead and costs and drive operational efficiencies by providing a complete, consistent, reliable source of master data across your organization. MDM will also help improve visibility and control over business activities by managing sophisticated relationships across products, customers, vendors, and locations.
Optimize your supply chain
Master Data Management offers a centralized perspective on products, and accurate information on inventory, product returns, and out-of-stock items across the supply chain, improving inventory management, forecasting, and customer service. You can ensure accurate, timely information is provided to support decisions and actions made by the applications, processes, and people that run your 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 a richer source of product, customer, and vendor data, you can introduce new products and services faster.
Improve customer satisfaction
You can also accelerate loyalty and increase sales with Master Data Management by personalizing interactions, delivering a consistent experience across channels, and tailoring products and services to your customer’s specific wants and needs.
Centralized and complete master data helps to reduce costs associated with compliance reporting and penalties. With master data management, fewer vendor and product compliance issues lead to faster new product introductions and vendor onboarding.