Master Data Management (MDM) looks at all areas of an organisation, tracks and records the information for each division and stores it in one central area i.e a data warehouse. Master Data Management is the technology, tools and processes necessary to maintain and create accurate data lists compiled from financial information to stock levels to employee details.
When such systems are being developed there are many obstacles to clear including changes to business processes, internal politics and data ownership these are just some of the things that have to be addressed before you starting looking at technical issues. The issue of data ownership is one of the biggest hurdles, as each area feel they own their data and are not willing to look at the bigger picture. With an MDM system only those who need the data have access to the data. This is one of the biggest advantages of centralised data sharing, permissions can be granted depending on the individual’s role. So if you don’t work directly with the data why should you see it? This feature is also very important when it comes to maintaining accurate data. Editing rights can be granted to those who need it. This eliminates the chances of good data being replaced with wrong data.
Even the smallest of companies can generate a large amount of data. With each department/section or person collecting data, the amount of replication, inaccurate and redundant data accumulates very quickly over time. With a structured data management system in place it can lead to a more efficiently run business.
The following outlines just some of the benefits an MDM system can provide
This is one of the main advantages an MDM systems offers, it eliminates the collection of redundant data as the data is stored centrally. This forces the creation of accurate and specific records.
One data edit eradicates inaccuracies in your data as the edit is reflected throughout the database. Individual lists are no longer used as all data is recalled from the central database.
This paves the way for better and more useful analytics as you are not working with redundant or inaccurate data.
Setting parameters means you only collect the data that is relevant to your organisation. Again this speeds up processes.
The data is not accessible by all and access can be granted based on each individual’s role within the company. This also relates to editing and deleting data.
Although the benefits largely outweigh the disadvantages like any system there are going to be pitfalls, but these can be avoided with proper planning and research. Here are some of the pitfalls to avoid when trying to introduce a Master Data Management System
Ignoring Data Governance
When choosing the MDM model to fit your company it is essential that the data governance policy of that system also fits your needs. Being able to apply the correct control and accesses to the data is essential.
Trying to do too much
When implementing an MDM system it can be a seismic change to an organisation. It is addressing the collection and management of company data and the changing of personal customs. This will take time and careful planning it won’t happen over night.
Collecting the wrong data
Your system is destined to fail if the information being stored is irrelevant. He main concept being an MDM system is that all the data is of importance to the company. This is something that has to be agreed upon from the outset.
Cleaning the data outside the system
This spells disaster as the data being stored is not up-to-date. If your data is consistent the users loose faith in it and bad habits begin, personal lists grow and the business suffers. It should always be one change updates all – of course once it has been validated.
To me one central system is an essential part of any company as it can only be of benefit to all.