How Master Data Management Is Going To Change Your Business Strategies.
Updated: Aug 3
Master data management (MDM) is the effort made by a corporation to make a parent reference source for all critical business data, resulting in minimum errors and redundancy in business processes.
The twenty-first century is all about data. Almost more than 90% of business data was created within the last four years. Data is information captured and stored by business as a digital asset which will support strategy, decision making and operations. This could be the employee data, data collected from your social media accounts, customer details like names and contact numbers or address, the record of business transactions, information about places or events and therefore the list goes on.
A lot of things come associated with data such as big data, data science, data mining, and data analytics. Data also help businesses to run an analysis with the assistance of data scientist and analyst thereby predicting the tastes and needs of the masses and their future requirements.
Humans generate more than 2.5 Quintillion (the sixth power of 1000) Bytes of data each day and with Artificial Intelligence now machines would be creating even more data hence managing this data is not an easy task.
Also, many organisations have customer records which are still offline or not connected to the web which creates challenges for the IT department to keep data secure. It is necessary to possess accurate data according to the Data Warehousing Institute, "US Businesses lose more than 600 BILLION dollars a year from problems with data quality."
With the quantity and variety of data increasing at extremely high rate data management has become a challenge. As mentioned on Profisee.com many define master data simply by reciting a commonly agreed-upon master data item list, such as Customer, Product, Location, Employee and Asset. To efficiently manage this data Master Data Management comes to play. Gartner Master Data Management helps businesses to boost the consistency and quality of their key data assets, like product data, assets data, customer data, location data, etc.
Why MDM matters
Because master data are used by multiple applications, a blunder in the data in one place can cause errors in all the applications that use it. Consider an example where an incorrect address in the customer master might mean orders, bills and marketing literature are all sent to the wrong address. Similarly, an incorrect price on an item master is often a marketing disaster and an incorrect account number in an account master can result in huge fines or perhaps jail time for the CEO—a career-limiting move for the one who made the error. Gartner Master Data Management can be used to completely overcome this flaw.
Gartner Magic Quadrant
A Gartner magic quadrant works by providing a graphical positioning of four types of technology provider where there is high growth and provider differentiation is distinct:
· Leaders- bring their visions to life and are well-positioned for tomorrow.
· Visionaries- they understand where the market is going but do not yet execute well.
· Niche players- concentrate on a tiny segment and do not out-perform others.
· Challengers- they dominate an outsized market segment but do not demonstrate an understanding of market direction.
MDM software is available on a subscription basis. The top five MDM software based on PAT index are Profisee, Aataccama, Talend Master data management, Orchestra network, SAS Master Data MAnagement.
Track buying patterns across 100 million+ records;
New acquisitions can be integrated easily;
Optimum risk management, by creating member risk profiles with its visibility to right executives in organization for decision making;
Accurate claims resulting in the increased federal government by reimbursement; and many more.
Gartner predicts by 2020, 50% per cent of the analytical queries are generated via search, natural language processing (NLP) or voice, or will be automatically generated. Data garnered through various sources can be studied upon to bring companies profit numbers to the top by delivering the results to the customers. Also, businesses need to ensure they have proper tools to avoid improper management of data as it can lead to the failure of companies.