Master Data Management. IS 6120. Hilda USANGA. Master Data or Reference Data. There are the core entities that are vital to the business or organisation examples are customers, citizens, employees, accounts, products. Master Data are often none transactional by nature.
MasterData or Reference Data There are the core entities that are vital to the business or organisation examples are customers, citizens, employees, accounts, products. Master Data are often none transactional by nature.
Problems of master data When a company has ineffective and disjointed views of master data, they lose potential revenue and they end up spending time on activities that have negative repercussions on their growth. When customers data is stored in separate application without a single view of the customer, companies cannot take full advantages of customer opportunities.
Questions Is MDM just a “new bandwagon” or are there merits to this approach? Is MDM just a technique or does it have more organizational consequences?
Definition of Master Data Management
It is a comprehensive method of enabling an enterprise to link all its critical data to one file which is referred to as a master file. The master file becomes a common point of reference.
Introduction on the concept of MDM.
Master data management streamlines data sharing among personnel and department. It facilitate computing in multiple system . It ensures that an organisation maintains consistence with its data.
A scenario ,a case of poor MDM in a retail company
A customer of a retailer has a customer loyalty card, the retailer then sends solicitations to the customer to become a loyalty card holder, ignoring the fact that the customer already has a loyalty card .This happens because the customers information used by the marketing section within the organisation lacks integration with the customers information used by the customers services section in the organisation.
Benefit of MDM
Optimize efficiency Minimize confusion Important for large or complex organisation It streamlines data sharing among personnel and department It facilitate computing among multiple system Ensures that organisation maintain consistence
Consequences of MDM on organisation It allows for availability of accurate and aligned reference master data which is important for any organisation It eliminate the consequence of poor data management It reduces the introduction of inefficient new product introduction and promotions It give the organisation accurate information and a better insight as to what is happening It eliminate the difficulty in trying to optimise relationship with customers and suppliers across different product line. It leads to increase productivity and sales It leads to an increase in tangible business benefit
Ineffective data management could lead : To a company reputation for customer services to become tarnished Customers could get the wrong service or product, reducing their trust in the company Productivity could decrease within the organisation Marketing and promotional expenditure could target the wrong customer segment.
Relationships MDM This is a comprehensive method of enabling an enterprise to link critical data Data warehouse Is combining data from multiple and usually varied sources into one comprehensive and easily manipulated database. Service oriented architectures Is an architectural style whose goal is to achieve loose coupling among interacting software agent
Conclusion Accurate information is important for organisation as there make better decision when the information is complete and accurate. MDM is one of the many component of a successful and adaptable IT infrastructure .Its a technology that must be mashed with good practices . It is a technique that has a high return on investment.