This is Part 2 of our mini series 'Master Data Management — What It Is and Why You Need It'
We are swimming in data, and so it's easy to feel like we are data-driven and analytical in our decision-making. In reality, we are at the mercy of multiple data systems with their own goals that may not necessarily be aligned with your organization's.
MDM allows organizations to be truly data-driven by being in complete control of their data. This control comes from enabling anyone in the organization to get a holistic view of the most up-to-date data at all times.
The benefits of MDM are many:
1. Minimize Time Searching for Information
With a centralized master data repository, employees can save valuable time searching and validating relevant information.
2. Save Time on Recurring Tasks
Since MDM includes data mappings, data format restructuring, and calculations, you can save time (and frankly your mental health) by avoiding doing the same task over and over again.
3. Create Internal/Operational Efficiencies
MDM enables data exchange and prevents misunderstandings across teams and departments. MDM will also help improve visibility and control over business operations by establishing and managing relationships across products, customers, vendors, and locations.
4. Improve Business Process Outcomes
By having accurate and unique data records, you won't miss an opportunity to help your business grow due to data quality. With a better understanding of your customers, you can ensure that the right cross-sell and up-sell offers are sent to the right customers at the right time.
5. Improve Customer Service and Customer Experience
Having full trust in your master data not only improves the quality of your customer service, but you’ll also enhance the customer experience and journey. MDM allows for an agile and efficient business that enables personalized interactions and consistent experiences across all channels.
6. Increased Potential for Analytics and Machine Learning
Effective MDM within all departments facilitates and empowers analytics by offering accurate and enriched information.
7. Privacy and Data Protection
Data privacy regulations require organizations to protect sensitive data from unauthorized access, use, and editing. MDM helps fulfill all privacy requirements which can prevent costly fines and legal procedures.
In Part 3 of this MDM series you will learn how to achive the ultimate goal of MDM: creating a Single Source of Truth.