master data management

Definition of MDM aka Master Data Management

A lever for a successful digital transformation, Master Data Management is an innovative concept. While others spend significant resources managing silos of information that are difficult to exploit, an MDM-savvy company focuses primarily on master data. Representing more than a privileged theme of a Master II thesis in Data Science, it is an approach generating real advantages. We tell you everything!

The Master Data Management

Also called Master Data Management (MDM), Master Data Management (MDM) resembles all the tools that allow a company to manipulate the flow of essential information. These are means of collection and storage, but also methods of verification and exploitation. Each structure has its own organization, but the objective always remains the same for everyone. MDM aims to ensure that reference data is identified and error-free.

Often, Master Data Management combines the data into a master file. This makes it easier to secure key information and share it. The success of such centralization relies on uniqueness. More practical, a single repository can be accessible to all authorized personnel and social partners. All stakeholders benefit from quality data, better governance and traceability.

The need to adopt an MDM solution

The creation of MDM solutions was born from a recurring problem. This is the organization of data in silos. Information retrieved from various departments is managed separately. Each branch of a company tries to extract actionable information in its own way. The Information System (IS) encounters many difficulties in exploring flows properly. Often, IT hopes to draw conclusions from statistics generated by several separate applications. In short, the data is scattered.

The lack of consistency in information flows within a company impacts performance. Society needs to streamline data handling. This is the main motivation for structures that call on external experts to conduct an audit. These specialists focus on business software, but also on the management tools in the hands of the departments. The type of Master Data Management to be implemented will emerge from this. THE solution provided takes into account information from customers, employees and social partners.

A solution specific to each structure

The investment in an MDM solution aims above all to ensure data quality. Managers want to have reliable, categorized and updated information. As many criteria remain achievable provided that there is a single central file. The latter is ideally exempt from duplicates. It will then be considered the only truth around which all decision-making processes revolve.

With Master Data Management, several subsystems can revolve around a central core. DAM or Digital Asset Management organizes all digital resources internally. PIM or Product Information Management coordinates product information. Then, the CMS aka Content Management System is a showcase of the brand. Most of the time, information such as consumer habits, purchase history is available in real time to allow each department to decide accordingly.

Standardized central file reduces costs

Thanks to Master Data Management, the cost of using data decreases significantly. The central file brings together statistics from applications, inventories, current orders and many other information inherent to the company. Savings are made from more reliable information flows. Furthermore, employees benefit from a 360° vision of the products or the customer experience.

An MDM process provides a concrete advantage over the life cycle of a product. Thanks to qualified information, the development and launch of an offer takes place more quickly. The improvement even concerns the value chain. It becomes easier to develop a product that complies with certifications. Quality managers have an additional means of writing mandatory reports. Certifying bodies require foolproof data traceability.

No redundancy and acceleration of processes

Too much information kills information. If a company finds itself with an excessive amount of data, it will have difficulty using it. The administrative and analytical side of the company can penalize it. Instead of confirming assumptions, redundant information burdens the decision-making process. In the absence of a centralized structure, managers find themselves obliged to manually compare the figures. Worse still, the effusion of information flows could slow down routine processing.

The data repository helps at all levels. The team responsible for procedures will be able to rely on MDM to develop appropriate technological means. This could, for example, be software with a simplified interface. Salespeople as well as those in logistics will benefit from a single platform which will make coordination easier. For all beneficiaries, the saving of time is another major advantage.

Challenges that go beyond IT departments

The entire operational efficiency of a company depends on the way in which it manages information. The implementation of a structured MDM solution constitutes a technological advance. Abandoning a siled data collection and processing model ensures encouraging financial results for a company. The latter gains in responsiveness since it holds relevant information which allows it to decide quickly. The strategy based on Datas Management goes to a higher level.

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Consolidating essential data into a single structure strengthens cyber security. Confidentiality is guaranteed when a company-specific application replaces open source tools and software with widely available operating licenses. A good MDM allows you to manage content transmitted elsewhere. These are, for example, emails, publications on social networks or media communications.

All structures can benefit from it

MDM infrastructure designers mainly target large companies. These companies often handle large amounts of information. The coordination of the different departments requires the implementation of a single tool. Moreover, the Master Data Management should be part of a digital transition strategy. As such, start-ups and SMEs will also be able to benefit from it. Centralizing data will allow them to save resources. The entrepreneur himself will be able to manage the new information system put in place.

Then, the Master Data Management goes beyond companies with several related departments. Internet sites, media or online stores will also be able to adopt it. As they interact with a large audience, it is in their interest to manage data flows well. Another target population of MDM solutions, digital communication and web marketing agencies are invited to understand it. In a very competitive sector like theirs, a technological advantage will make the difference.

Application examples of centralized data management

Managing your reference data goes beyond customer relations. The concept also goes beyond digital communication. Indeed, MDM applies to all channels, including traditional methods. It can be transposed to production. In factories meeting industrial standards, information must be accessible to everyone in the chain. For example, each operator should consult the technical data sheet at any time.

Companies engaged in packaging and logistics are also the beneficiaries of MDM solutions. They must continually adjust their actions based on the information collected. Truck drivers, delivery people and other professions are affected to different degrees. Master files are particularly relevant to e-retailers, even those who have just started.

At the heart of an entire ecosystem

Implementing a Master Data Management solution does not mean doing away with other available tools. The concept consists of reorganizing the different technological means in the hands of the company. The latter must, for example, integrate its ERP (resource planning) software into the new structure. It should also resolve the correlation with its customer management platform (CRM). Sometimes, the challenge comes down to linking PLM (Product Lifecycle Management) and WMS (Warehouse Management System) software to MDM.

In short, a relevant MDM solution reorganizes a company, through an ecosystem where everything is connected. The mission should normally be entrusted to an information systems expert. This external aid will not be provided without an inventory. It is only from an audit that Master Data Management can be deployed. This approach affects all services: IT, human resources, marketing, delivery, etc.

Features specific to MDM solutions

Master Data Management tools aim to simplify the task for the entrepreneur. This person has relevant decision support. The data it will obtain from the MDM solution is cleaned to eliminate duplicates and other parasites. The information is also enriched, classified and translated with understandable terms. Most of the time, the infrastructures put in place guarantee the quality of the information.

To delve further into the depths of management, MDM manages workflows and paces business processes. There are validations, collaborative completions and many other features specific to it. Which makes it a great way to coordinate suppliers, cross-references, product lifecycle or multi-channel communication.

Selection criteria for finding a good MDM tool

On the scale of a large company, the deployment of a Master Data Management represents a costly project. The structure amounts to setting up a whole new department. Such a decision requires careful consideration on the part of management. They need to list the needs in terms of data management. The choice should also be based on the real objectives.

Then, there will be challenges to overcome such as the difficulty of integrating existing software. The choice of an MDM solution is up to the Information System staff. The technicians will have to decide on the data mapping to be established. It will be necessary to determine the life cycle of the reference data. This is often accompanied by regulatory requirements and budgetary restrictions.

The success of the Master Data Management

A successful MDM project meets the identified needs. Its implementation should follow the different stages of deployment. The project takes into account current processes, issues specific to the company’s activity, as well as the channels that the information will take. Respecting the initially set budget is essential. After implementing the structure, an evaluation of the achievements will need to be carried out.

The Master Data Management opens a new era in data exploitation. Once operational, the system allows you to know what is happening in a company, but also with its customers in real time. It is a long-term job that involves all the key forces within a society. Indeed, each employee has their role to play in the implementation, but above all the operation of MDM support. This is the sine qua non condition for an effectively managed digital transformation.