Introduction
When Master Data Management (MDM) was first launched in 2004, it was considered one of the most defining changes in the world of business.
After nearly fifteen years of being innovated upon and used by major corporations, the world over, it is safe to say that MDM has redefined the way businesses, both big and small, use data quality management.
MDM helps businesses collect, process, and store, analyse and execute data from various different company sources. It is like a common dashboard, which helps integrate ERP, CRM, SMM, Search Engine Tools, etc.
This helps present a holistic and cumulative picture of where an organization stands and what can be done to improve it at different levels.
In this article, we are going to look at five major advantages of using a MDM software. This article is going to help businesses and business owners take a call on whether a MDM software is the right fit for their organizations.
5 Major Advantages of using a MDM Software: The List
Improving Efficiency at multiple levels within an Organization-
Businesses have a number of tools and software, which they use for data collection needs. This means that people across verticals are running specialised software pertaining to their needs. This leads to inefficiency in terms of time, effort and energy.
By running a specialised MDM software, all the data from the various other tools can be presented in a single fashion. This enables freeing up critical human resources, as well as saves up time, which can be used to improve any other aspect related to the business.
Increasing the Quality and Accuracy of Data-
One of the key functions of a MDM software is removing duplications and inconsistencies. This means that MDM works in a major way to improve the quality of data and presents it in an accurate fashion. This has a cascading positive effect on the entire process of a company.
If your master data is corrupted, it means you will have a problem at all levels. This would lead to wrong policy actions, faulty investments and incomplete strategy formulations. For most businesses, MDM is an asset when it comes to maintaining data quality and accuracy.
Data Privacy and Safety-
It should be pointed out that Data Privacy and Safety can make or break an organization. At a time when hackers are using sophisticated techniques to access company data, a MDM software helps to beef up an organization’s attempts to secure its data safely.
This not only helps protect the company’s internal data assets, but also encourages consumers on an entirely different level. Everybody wants to feel secure in the knowledge that third parties are not going to use nefarious means and get hands on someone else’s data.
Enhancing the Decision-Making capabilities of the Leadership-
We should realize that the end goal of using a MDM software is taking the best decisions for the interests of the organization and its employees. To this end, MDM software helps the management leadership to take the right decisions when it comes to policy executions.
Taking the right steps, based on credible information is paramount to the success of any organization. This helps in improving growth, negating loss making initiatives and focus efforts where they are most required. In the absence of informed decision-making, an organization is doomed to failure.
Helps in developing Coordination and fostering Team Building-
In the absence of a MDM software, every vertical in a business organization deals with its own data sets as isolated islands of information. This is not only counter-productive in terms of a business strategy, but also creates pockets of aloofness and disinterest.
If there is a single and unified structure (MDM) it helps in cross-department coordination. This not only leads to bringing different teams together, but also sparks innovation and out-of-the-box thinking to varying sets of problems.
Conclusion
The question, which dominated businesses in the last decade was- ‘is MDM the right approach for me?’ In 2020 the question has changed to- ‘am I at the right stage to try a MDM software?’ Businesses in 2020 have stopped thinking of MDM as an extravagance. They are rather thinking of ways and means to integrate MDM the same in highly efficient ways.
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