If your company collects data about your customers, your sales, or your marketing efforts, master data management (MDM) should be on your to-do list. Challenges like security leaks and imperfect MDM systems are probably holding you back—but if you are not sure how to manage your data, here are answers to the top five questions we hear when it comes to master data management.
1. What Is Master Data Management?
The idea behind master data management is for organizations to connect all data to a single master file.
All data records share a common index, allowing smoother, more streamlined sharing of data between staff, departments, front-line workers, customer support, sales and service.
It also helps communication among different computer apps, platforms, frameworks and architectures.
2. Why Does It Matter for My Business?
MDM is designed to reduce data errors and confusion in all aspects of business operations.
For example, if an address, phone number or email address is wrong, a customer might not receive the correct orders, warranty information, bills, medical updates, or marketing collateral. Ordering the wrong part or repair could result in an accident or major disaster.
3. Do I Need to Do MDM In-House?
MDM can be handled in-house, but the challenges are greater than simple technical issues. Only about 24 percent of MDM projects are reported as successful; this is because there are several obstacles. Without strong leadership overseeing the process, department heads are reluctant to give up control of their master data, preferring that other departments align with their standard.
One benefit of working with an external master data management provider is that you gain a macro-view of the company that transcends hierarchies. It is also important to choose multi-domain technology, but not all vendors truly provide it.
4. What About Security?
Security, especially in today’s high-risk environment, is critical to prevent breaches that damage your brand and color client perceptions of your commitment to safety.
MDM security best practices include consistent backup management, detailed logging and thorough auditing systems. Your data management platform also must monitor data and data loss, as well as track data leakage plans (DLP).
5. How Will This Help My Business in the Long Run?
Employing a master data management strategy helps you operationally by reducing costs, increasing productivity, and improving compliance.
It also helps you grow by improving customer retention, opening up new markets, and allowing you to ideate new products faster. Further, you can respond faster to market pressures and make better, data-driven business decisions.
Discover how Black Oak Analytics’ proprietary HiPER software helps you master your data. Contact us to gain insight on how to map out your master data management strategy.