What Is Meant by Master Data Management?

Keeping information organized is an important part of business. When your sales and marketing teams or your customer service professionals need access to key information, they need to find what they seek quickly and easily. Let’s explore what you should know about data management and organization through Master Data Management.

What Is Meant by Master Data Management?

Businesses have to manage and organize massive amounts of data related to all their products and services as well as their customers and leads. With a Master Data Management (MDM) solution, organizations can have a central place that brings together all their different information sources.

With a well-established MDM solution, companies will have a single source for all the information the business utilizes, not just the product data. This single source of information helps to categorize and classify the information so that employees can quickly access the information they need. When they can quickly answer questions from leads and customers and provide them with important, accurate information, the business improves the overall customer experience, building a good reputation for the company as a whole.

An MDM solution typically requires an enterprise-wide deployment. This large-scale project can be difficult, expensive, and time-consuming to integrate with the rest of the business systems. Given the benefits of having a single source of company data after reviewing the master data examples, however, many businesses wonder if a simpler solution might be available that can take over the master data management roles and responsibilities. Fortunately, a PIM solution is easier to implement while still seizing the benefits of master data management. Additionally, many businesses find it more useful for the marketing and sales teams.

What Are the Different Types of MDM?

As businesses start exploring their options with an MDM system, they will quickly discover that there are several approaches to the Master Data Management process. Each offers its own benefits and drawbacks, and businesses should select the model that fits their business best.

Those evaluating their options typically come across four main options for MDM implementation that may help them with their product information management.

Registry

This model often works well for businesses that have a variety of disparate data sources. All the data the business collects is placed in a centralized data repository. Once the data is entered, it can be cleaned up and consolidated so that it is easier for people to read and engage with. As the data is modified, any changes made only impact the data that has been entered into the system, which means that any original sources of data remain the same and clients do not have to worry about losing anything.

However, the complexity of this system, with entering all the data and then slowly cleaning it up, often does take a considerable amount of time, which many people find to be a significant con of selecting this option. There may also be data reliability issues as the system tries to understand how data is related and brings together related data strings.

Consolidation

With this system, businesses create a ‘golden record’ of all the master data the business owns and generates. One team member often has the responsibility of verifying the accuracy of the records kept in this system. As data pieces are modified, the changes are then distributed from the consolidated system to the original data sources.

Coexistence

With the coexistence model, the MDM database and the original data sources exist side by side. The systems update records in both directions without a time delay.

Centralized

With a centralized approach, the MDM is a central source of information and updates. Other sources of information that the business turns to will receive updates from this centralized source. With this approach, the MDM becomes the system of record, which keeps everyone in the business on the same page, rather than only providing a single data view for the information the business stores.

What Is an Example of an MDM?

For businesses beginning to research the Master Data Management tools available in the market, they might quickly become overwhelmed as they discover all the different options. The number of MDM platforms available can appear to continue endlessly. Fortunately, looking at a master data management example can help businesses start to see the differences between all the different programs, so they can find the option that will work best for their business.

Here are some of the master management system tools available:

• Stibo Systems

• Informatica

• PiLog MDRM

• TIBCO

• Profisee

• SAP

• IBM

• Reltio

• Oracle

• Microsoft

While this MDM tools list is not comprehensive, it does provide a solid starting point for those interested in learning more about the Master Data Management system options.

Some Product Information Management (PIM) solutions offer MDM functionalities, such as Pimcore and Syndigo, which can provide some businesses with a more diverse tool set. However, note that not every company needs a full MDM solution. This level of software support is typically only needed by the largest enterprises that also have very complex data needs. The MDM solution allows these companies to keep all their information organized.

However, for most companies, a point solution, such as Product Information Management (PIM) tools, Customer Relationship Management (CRM) solutions, and Product Lifecycle Management (PLM) platforms will provide ample functionality for managing company data.

What Is the Best MDM Tool?

For businesses looking for the top Master Data Management tools, the most important criterion to remember is finding a tool that will fit with that specific business and its internal operations. The optimal solution will depend greatly on the business’s needs and how the existing tech stack is already set up. For example, if a company has already invested substantially in SAP, IBM, Oracle, or Microsoft, then working with one of these Master Data Management companies will likely make sense.

As companies choose the right solution for them, remember to consider the Gartner MDM reviews as well as the information in the G2 reviews to better evaluate the available options. Reading these outside sources of information can help decision-makers evaluate the models side-by-side based on their business needs.

Build Your Business With the Right Data Management Tools

As your business grows, you are going to collect enormous amounts of data. You need a solid strategy for keeping this information straight and organized so that every member of your team can find what they need when they need it. Whether you are a very large, enterprise-sized business and need to turn to an MDM tool, or you are a smaller business and find the PIM options more manageable, it is time to consider what solution might work best for you. Get started with our search today and see what Lumavate can do for you.