What is Master Data Management?

Master Data Management is a crucial process for organizations to manage critical data assets needed to inform business decisions. When we dive into the importance of data management and why MDM is imperative to your business, it’s helpful to understand the scope of how much data we create.

By the end of 2023, two-thirds of the world population will be online.

More than 2,500,000,000,000,000,000 bytes (or 2.5 quintillions) of data are created each day. It actually makes us go cross-eyed to try to count the zeros.

We’re creating, capturing, and consuming more data than we ever have.

What is Master Data Management?

Master Data Management is the process of creating one master data record or “golden record” from across all of your internal and external data sources. The golden record contains all of the information needed to make critical business decisions.

Master data refers to the foundational data elements that are essential for business operations such as customer information, product data, and employee records.

Is This You?

It’s safe to say you deal with frustrations such as unwanted characters and punctuation in your data, null values, and non-identical duplicates, like “Maria Seelos” and “M. Seelos.”

These hurdles are enough to make you want to pull your hair out.

This is where MDM comes into play, offering a systematic approach to harmonize and manage the most critical data assets within an organization.

For example, “M. Seelos” and “Maria Seelos” will become one “golden record” by defining an MDM process that maps fields such as a company email address between multiple records.

With one record, you don’t need to sift through duplicate records to analyze the information.

What’s the Difference Between Master Data Management and Customer Data Platform?

MDM and Customer Data Platforms (CDPs) both organize data, but they have different focuses:

While MDM is about maintaining the integrity of core business data, CDPs are more customer-centric, concentrating on leveraging customer data to enhance marketing and customer service.

Why is Master Data Management Important?

MDM is essential for delivering the necessary insights needed to make critical business decisions such as budgeting, sales and marketing strategy, or software usage.

You’ll also see the following benefits once you implement your MDM process.

How Do I Set Up a Master Data Management Process?

As with any process development, creating an MDM process is a labor of love. But, it will save you money and time in the long run.

Here are four steps to get you started:

You can start with a pilot phase to test MDM processes on a smaller scale, which will allow you to make the necessary adjustments needed to deploy your MDM process company-wide.

As you begin implementation, you will want to work with your cross-functional team to maintain the quality of your MDM process by:

Don’t forget to continuously improve your process! Establish a framework for ongoing MDM maintenance.