What Are the Different Types of MDM?

Data management is a critical component of running a successful business. With all the information companies have to organize and use, disorganization can quickly become a major liability. Fortunately, the right tools can make a big difference in the capacity to systematize and use company data.

What Is Meant By Master Data Management?

With the wealth of information that businesses collect each day on their products, services, customers, and leads, the Master Data Management (MDM) system makes it easy to centralize all the organization’s information. The Master Data Management framework provides companies like yours with a single source of information across the entire business. In other words, whether someone needs to access product specifications or answers to a customer service question, all the data is held in a single source. These capabilities generally go further than a product information management system, which focuses on product data, making it a good solution for large businesses.

The biggest shortcoming of MDM solutions is that they are typically an enterprise-wide deployment. With all the different types of data management it can hold, it is obvious how this implementation has far-reaching impacts across business departments. This makes the systems extensive and challenging to implement. For this reason, smaller and medium-sized businesses typically find a Product Information Management (PIM) framework easier to manage and more useful for the marketing and sales teams.

What Are the Five Core Functions of Master Data Management?

When businesses implement a Master Data Management (MDM) system, they typically find that the collected and organized information can provide numerous benefits. The Master Data Management roles and responsibilities typically fall to key persons within the business, ensuring the accurate dissemination of information within the company.

Large businesses that decide to implement an MDM solution will want to understand the value that these capabilities offer their business. As you look at the data governance technologies available, you will typically see five overarching core functions that MDMs offer.

1. They make it easier to establish a single view of all the master data within the enterprise. By bringing together all the core sources of information, the system helps to eliminate data silos. This reduces the risk of having information updated in certain systems but neglected in others, which can lead to business representatives gaining access to inaccurate information.

2. Establish the data governance policies and procedures. When all the information is in a single place, businesses find it easier to think about how they want to govern their data and how they will keep it organized and accessible to those who need it.

3. Improve data quality across the business. Thanks to having a single core location, businesses will also increase the data available to people throughout the organization. People will not have to chase the information they need, they can find the numbers they require to back up their points.

4. Easier and more accurate data analysis. Since the information will already exist together in the management system, companies will find it easier to analyze the data to find patterns and important trends.

5. The potential for machine learning or artificial intelligence. Since businesses will find it more efficient to analyze their data and information, they will also be able to use the insight gained from the analyses to take advantage of machine learning or artificial intelligence opportunities.

What Are the Different Types of MDM?

As businesses start to investigate their MDM options, they will quickly discover that there are a variety of approaches that companies may choose to implement as they look at their Master Data Management needs. Here is an overview of some of the most commonly employed strategies.

Registry

With the registry system, all the company’s data sources are brought into a central repository for the information to be cleaned and consolidated. The data will then be aligned with business functions and goals, so it can be quickly accessed. This strategy often works well for businesses that have a variety of data sources that need to be brought together for greater efficiency.

When businesses use this strategy, they do not need to change anything about the original data set, so only the information copies in the MDM will receive any changes or updates. This means that others still have access to the data in its original format.

Some find this strategy excessively time-consuming, however, which can be a detriment for those who want to implement it.

Consolidation

With the consolidation system, businesses focus on creating a single master list of all the business data. An employee receives the task of verifying all the relevant information for this ‘golden list’. As the data gets organized and verified within the MDM, the changes can then be transferred from the master list out to the original data sources so that businesses ensure everyone has the correct data. This system improves reliability but can be very costly for organizations.

Coexistence

This approach to organization allows MDM databases and the original data sources to coexist so that they can communicate back and forth with each other. This helps send real-time updates from one side of the system to the other to improve communication across the business.

Centralized

The centralized approach uses the MDM as a central repository for the data in the organization. The other sources of data for the business will receive updates from the MDM to make sure the information passed along is accurate and complete. The MDM, under this system, becomes the system of record instead of only providing a view of the data.

Whichever Master Data Management system businesses choose, they want to make sure they select one that aligns with their business needs and priorities.

What Is an Example of an MDM?

For companies evaluating Master Data Management tools, the list of options can seem endless. The top 10 Master Data Management tools do have many functionalities in common. Here is a common MDM tools list that businesses can consult to begin their search for the right option for them:

• Stibo Systems

• Informatica

• PiLog MDRM

• TIBCO

• Profisee

• SAP

• IBM

• Reltio

• Oracle

• Microsoft

In addition to these Master Data Management software options, some Product Information Management (PIM) solutions also offer MDM functionality, including Pimcore and Syndigo.

Organizations should also note that not every company needs a full MDM solution. This level of software is only necessary for the largest enterprises with very complex data needs. For those interested in a simpler solution, using Product Information Management (PIM) tools, Customer Relationship Management (CRM) solutions, and Product Lifecycle Management (PLM) platforms will provide ample functionality to manage the data for a given company.

Building Companies with Data Management

For organizations interested in building strong engagement with modern customers, keeping company data organized and accessible for all team members is critical. While large enterprise organizations may need access to a complete MDM system, many smaller companies find that the capabilities of a PIM provide them with ample solutions for their business.

If you are ready to take your company to the next level, see how Lumavate can provide you with the platform you need to excel in data management.