The stakes of a business are getting higher and higher every passing day. So, if you want to make the most out of your business, it’s essential to upgrade yourself.
In this aspect, MDM can help you take a positive first step.
However, before you focus on that, it’s important to learn about the “thing,” right? Well, that’s what we are going to do here. So, bear with us till the end.
The Benefits of Master Data Management
Think of your company’s data as a puzzle.
You’ve got information about customers, products, employees, and more. MDM is like the glue that holds all these puzzle pieces together.
It’s a system that ensures all your data is accurate, consistent, and up-to-date across different parts of your organisation. Let’s find out more about how it helps you out.
1: Say Goodbye to Messy Data
Have you ever received an email with your name spelt wrong?
It’s a small thing, but it can be unpleasant. MDM helps prevent these little hiccups. Keeping your data clean and tidy will avoid mix-ups and keep your customers happy.
2: Making Smart Decisions
If you own a retail chain, you probably have several stores in different cities. MDM helps you see which products are selling well in which locations. This way, you can stock your shelves with the right stuff and ensure your customers are always happy.
3: Saving Time and Money
Having scattered, inconsistent data can be a real-time disaster. Imagine having to hunt down the correct info every time you need it! MDM streamlines the process, so you can spend less time digging and more time getting things done.
4: Playing Well with Others
In a big company, different departments use different systems. Sales might use one, while HR uses another. MDM helps all these systems talk to each other so everyone’s on the same page. This means less confusion and more smooth sailing.
5: Staying on the Right Side of the Law
Data privacy is a big deal these days. You’ve probably heard of GDPR and other regulations. MDM helps you stay compliant by ensuring you’re handling your data responsibly and securely.
The Three Cornerstones of Master Data Management
Master Data Management helps manage your organisational information through three steps. Here is what you need to know about them.
1. Data Governance
Think of Data Governance as the wise old sage of MDM. It’s all about setting the rules and guidelines for managing data. This involves –
- Defining who can access and modify the information,
- What it should look like, and
- How changes are tracked.
For instance, in our store example, Data Governance might dictate that addresses should always follow a standardised format, like “123 Main St.” This way, there’s no room for “123 Main Street” or “123 M St.” to sneak in.
2. Data Quality
Data Quality is all about making sure your information is accurate and reliable. It checks for –
- Errors,
- Inconsistencies, and
- Duplicates the data you may have within your system.
In our store scenario, it’d catch things like having two different entries for the same product or a phone number with too few digits.
3. Data Integration
Think of Data Integration as the smooth operator. It’s in charge of bringing all your data from various sources together and ensuring it plays nicely.
For instance, if you have customer data in your online store, CRM, and email marketing platform, Data Integration ensures that it’s all synchronised.
How Do You Get Started with MDM?
Establishing and operating an MDM-based system in your company may sound like a huge deal at the beginning. However, if you follow a step-by-step procedure, it won’t be that much of a troublemaker for you. Let’s find out more about it.
1: Assess Your Data
- Start by conducting a comprehensive audit of your existing data. This involves identifying the sources, formats, and data quality you possess. Look for inconsistencies, duplications, missing values, and inaccuracies.
- Categorise the data based on its type and relevance to your organisation’s objectives. Understanding the scope and scale of your data management needs is crucial.
2: Define Data Governance Rules
- Establishing robust data governance rules is essential for maintaining data integrity and security. This involves setting clear guidelines for collecting, storing, processing, and sharing data.
- Define naming conventions to ensure consistency across datasets. Specify data entry standards to reduce the likelihood of errors during input. Establish access permissions to control who can view, edit, or delete specific data sets.
3: Implement Data Quality Checks
- Create a systematic process for regularly checking and cleaning your data. This could involve a combination of automated tools and manual reviews.
- Automated tools can help identify common issues, such as duplicate records, missing values, and outliers. Manual reviews can address more complex issues.
4: Choose the Right Tools
- Research and evaluate MDM tools available in the market. Consider factors such as scalability, compatibility with your existing systems, ease of use, and cost.
- Compare features such as data profiling, cleansing, integration, and governance capabilities. Choose a tool that aligns with your organisation’s requirements and budget constraints.
5: Train Your Team
- Provide comprehensive training to all team members involved in data management. Ensure they understand the importance of MDM and how it contributes to the organisation’s overall success.
- Familiarise them with the established data governance rules and how to apply them in their day-to-day activities. Offer ongoing training to keep them updated on best practices and new tools in data management.
6: Monitor and Iterate
- Regularly monitor the effectiveness of your MDM processes. Keep track of key performance indicators (KPIs) related to data quality, consistency, and accessibility.
- Be prepared to iterate and refine your data management strategies as your organisation’s needs evolve or as new technologies and best practices emerge.
7: Document and Communicate
- Maintain thorough documentation of your data governance rules, processes, and tool configurations. It ensures continuity, especially in case of team changes or expansions.
- Communicate the importance of adhering to these rules across the organisation. Encourage a culture of data stewardship and accountability.
