Business can be a dog-eat-dog world, and the companies that come out on top are the ones that are able to shape and adapt to their respective markets. The key to gaining a competitive edge is to properly use data to enhance operational efficiencies, cut costs, and attract customers.
Even though companies get vast amounts of data, it can be difficult to process and share this data in a timely and cost-efficient manner. Master data management (MDM) is a relatively new field of data science, but plenty of enterprises are already experiencing its many benefits. Continue reading to learn how your master data models can make or break your company.
What is master data?
Business entities collect massive amounts of data, ranging from product data and customer data to transactional data and reference data. Master data is a data governance measure that classifies data from different source systems. In short, it creates data hierarchies that determine the importance of different types of data. The most common types of master data entities are customers, companies, types of transactions, and location.
Master data entities provide domains for different classes of data based on the attributes of the information. Stewardship of this data is integral to the accountability of the enterprise as it governs data quality and helps to separate actionable insights from fluff. It provides context for data and ultimately, it’s what makes the data actionable.
What is master data management?
As previously mentioned, stewardship of master data assets is essential in using data analytics to enhance business processes. That’s why many business entities shell out thousands of dollars every year to software vendors to manage source systems such as data warehouses and CRM programs. As one of the leading software vendors in the field of data science, TIBCO strives to deliver data management solutions that make it easier for data stewards to implement viable MDM strategies.
The best way to approach master data management is from the perspective of the many problems data stewards and business users have with data, such as the accuracy of the data itself. One of the main things that creates inaccurate data is duplicate data across different source systems. Another common problem is sharing data interdepartmentally and even between cooperating organizations.
What are the benefits of using MDM systems?
As mentioned above, master data management is a relatively new discipline within data science and as such, people are still learning and coming to understand data management best practices. However, with the right master data management program, the benefits of MDM are plentiful.
TIBCO is one of the pioneers of MDM, and they strive to create MDM programs that ensure data quality. Reference data has to be consistent across multiple platforms and source systems to create accurate data models that adhere to the business rules set by data stewards and other business users.
Another one of the great benefits of using a capable MDM program is that it greatly reduces the time and cost of manually inputting workflows that dictate what data is harvested. Traditional data cleansing and sharing processes are costly and labor-intensive. However, with the right MDM strategy and MDM tools, compiling and organizing data from varying and disparate source systems is much simpler and cheaper.
Master data is critical to the success of your business intelligence efforts as it provides a foundation for the types of insights for which you’re looking. Whether it’s customer data, transactional data, company data, or supplier data, you must have organization and structure as well as a strategy for collecting, analyzing, and utilizing the massive amounts of data you collect. With master data management solutions, it’s easier than ever to get the necessary insights from vital data sources to optimize operational efficiencies and business activities.