Any Master Data Management (MDM) solution will deliver valuable data, right? Not quite. You may be surprised to hear that the benefits of MDM aren’t the result of simply managing data or information in a central hub. In this blog post, we’ll explain why organizations can lose value in their master data, and introduce insight into how to address this gap.
Data Without Rules
Organizations must keep in mind that while providing users with centralized data is important, without the layer of governance, workflow, and business processes, companies may create more problems than they aim to solve with MDM.
In a Forrester article, the author explains that the benefits of MDM aren’t the result of simply managing master data or product information, noting:
“High-quality and trustworthy data sitting in some repository somewhere does not, in fact, increase revenue, reduce risk, improve operational efficiencies, or strategically differentiate any organization from its competitors. It’s only when this trusted data can be delivered and consumed within the most critical business processes and decisions that run your business that these business outcomes can become reality.”
So, how can you ensure that your organization benefits from centralized, high-quality data integrated throughout the enterprise to drive intelligence, innovation, and growth?
Look to Multi-Domain Master Data Management
Through a single, seamless technology platform, Multi-domain MDM enables a clear and holistic view of data across domains, eliminating the guesswork and uncertainty that results from data gaps and inconsistencies.
Multi-domain MDM includes several features that bring the value of data to life:
- Automated workflow: Multi-domain MDM is uniquely designed to integrate with automated workflow and business process rules that help provide the “kinetic energy” that underlies the applications leveraging master data and information.
- Integrated business applications: The value of MDM is further derived from delivering the master data to integrated business applications that leverage the data, such as multi-channel publishing and dealer portals.
- Analytics and insight: Multi-domain MDM supports a high level of cross-domain intelligence and data clarity, leading to actionable insights around customers, products, and internal operations. According to Aberdeen, “Those with multi-domain MDM are more effective at transforming data into insight and acting more quickly,” noting that 69 percent of companies with a multi-domain approach to MDM saw an improvement in decision accuracy.
So Long Silos!
Ultimately, the true value of MDM derives from its connection to business processes and strategy—using the insights gleaned from a fully integrated view of enterprise-wide information to achieve competitive differentiation.
Therefore, as you embark on your MDM journey, carefully consider how you will implement the technology, processes, and best practices that will most effectively grow and transform your business.
Interested in saying so long to ineffective siloed data? Download our new White Paper, Multi-Domain MDM: Mastering Modern Data Management Challenges, to learn more. This thought leadership piece introduces the advantages and attributes of Multi-domain MDM, and discusses:
- Comparing a single-domain vs. multi-domain approach
- How businesses can enable intelligence through Multi-domain MDM
- Understanding how to connect the domain dots through MDM
- The link between Multi-domain MDM and data governance
- Advice from experts and analysts on how to get the most value from your MDM journey
Click here for your free copy of the Multi-Domain MDM White Paper.
*Data Governance Remains Immature: Increase Focus On Business Process To Build Momentum, Forrester Blogs, July 1, 2010
*Lock, Michael D. MDM Without Limits: Connecting Data, Crafting Insight, Mastering Results, Aberdeen Group, January 2017