Why Master Data Management (MDM)?
The importance of data continues to grow in companies. Every expansion of the digital offering leads to even greater volumes of data - but only a few companies today are in a position to use these volumes of data effectively for their own benefit. This is due to the fact that the data is not available in a structured form, central access to it is lacking, and thus the business relevance cannot be recognized. In addition, the poor quality of the data prevents real added value from being derived from it.
In many companies, master data is managed completely independently in different sources, which often results in it being incomplete or redundant. Companies feel the consequences of this in different places. Sales potential is not realized because consumers are addressed incorrectly. Buyers return ordered goods because they do not meet their expectations. Dissatisfied customers turn their backs on the brand and, in the worst case, pass on their experience to the target market. It is also clear at the business process level that unreliable or non-existent data can cause considerable damage to companies: Product communication that goes nowhere, high return rates, unnoticed breaches of data protection guidelines and other compliance risks, inefficient data exchange between retailers and manufacturers - the list is long and ends with the realization that poor data quality leads to high costs and risks for the company's compliance and reputation that should not be underestimated.
What is Master Data?
Master data is the term used to describe a company's business-relevant data, which includes information about products, customers, suppliers, locations or other areas. The central importance of these areas for business processes makes it clear how important it is that the associated data is always reliable, correct, up-to-date and accessible. Transactional data and Big Data, on the other hand, do not fall under the term Master Data.
However, due to the growing complexity of business processes, it is becoming increasingly difficult to meet these requirements. Customer-relevant data is generated, for example, in both the physical and digital store, in surveys, in contact with customer service, in social media channels, and in discount and special offers. Ensuring that all these impulses are centralized and synchronized so that they can in turn be effectively incorporated into sales and marketing processes - that is the task of Master Data Management (MDM).
In this way, MDM creates the basis for networking information, people and processes, enabling valuable insights to be created, the organization to be optimized and business goals to be actively pursued.
Does your business need MDM?
Any company with a digital ecosystem depends on a good data foundation. Depending on the size of the company, how many people need access to the master data to do their best work, how complex the product structure and how diversified the target markets and sales channels are, the need for a central MDM system is obvious and often even pressing.
Companies that must compete in a competitive marketplace are under intense pressure to drive innovation, launch products and campaigns quickly and effectively, optimize business processes, and differentiate themselves from the competition. Master data provides the foundation - delivering the valuable insights needed to make the right strategic and organizational decisions and create personalized customer experiences that increase customer loyalty.
Today, consumers are more aware than ever of the consequences of their purchasing decisions. They increasingly want to take responsibility for how resources are used as a result of their consumption behavior. At the same time, they face an oversupply with countless options and are looking for ways to make the right choice. As a result, they want to make conscious purchasing decisions and demand full information about products and how they are made. In order to provide such transparency and build consumer trust in the brand, correct and consistent data is again needed first and foremost.
Get the most out of your data
For companies today, being successful means being able to act at any time. They must be able to react quickly when the competition launches a new product, when inconsistencies arise in product communication, or when compliance risks arise. But a company can only be capable of action if it has sufficient information. MDM makes it possible to have access to current and correct data at all times and to derive important insights from it. For example, they can read from the data not only when certain products have not been well received by the market - but also what the likely reasons for this are. MDM thus provides the basis for permanently reviewing and optimizing business models and processes.
