These days data is one of the most significant assets for any business. With the volume of data rising in the past few years it has made it difficult for companies to manage data efficiently. One smart way companies can utilize their data optimally, is including master data management.
Here are 7 Benefits of Master Data Management:
1. Improved Data Quality
Bad data always is an issue. MDM eliminates bad data. As a result, the current data is of better quality and thus more beneficial to employees.
When master data is stored in multiple destinations such as in different formats, spreadsheets and isolated applications, it can reduce the usability of the data.
2. Eliminates Data Duplication
Data duplication leads to a lot of confusion which may cause further lead to errors in not only the master data process but also other business processes that are dependent on master data.
When using gartner mdm magic quadrant, it builds a single data source instead that eliminates duplication of data and thus increases the efficiency of the business processes.
3. Reduces Time and Cost
Like the saying goes, ‘time is money’, and it takes a lot of time and money to process master data accurately. So, it could be challenging for companies to manage the increasing volume of data without MDM.
MDM also automates most aspects of the data management process, which saves time. This way, companies will not need to employ more resources to manage the data with MDM. This much needed source also reduces the data management and processing costs.
4. Increased Data Accuracy
MDM eliminates duplication and inconsistencies in the data, which has a ripple effect in an organization or business. This effect of no discrepancies in master data reduces the risk of data inaccuracy. It also avoids any confusion while retrieving the data from the application.
5. Informed Decision Making
MDM offers a holistic vision and better control over the organization’s data. Incomplete and wrong information would allow management to make misinformed decisions that would impact the long-term growth of the company. Access to updated and quality data would assist the managers to develop effective strategies. This application, in turn, helps the leadership, senior management, and middle management to make informed decisions.
6. Handling Change Requests
When using MDM, a company can restrict any access to change the master data to specific individuals. Since the master data is the single source of company’s data, and only used by the departments across the organization, it is vital to protect the data from misuse. The company being able to have restricted access to change data will help enable data consistency and data security.
7. Enables Easy Data Edits
If you did not have a Master Data Management to consolidate and control the master data, users would not be able to record data in multiple destinations. Therefore, any changes made to the data would not only remain isolated but would also create major data inconsistency issues. With MDM, any changes made to the master data will reflect across all the relevant data destinations.