Master Data Management (MDM) typically involves creating a master record for core business entities - customers, products, employees, suppliers, and other foundational data. This record is also known as a golden record representing the best version of truth to ensure consistency, accuracy, and coherence across the enterprise.
Let's look at an example where we see the XYZ store, which has stores in different countries.
As you see, the customer Jon Doe has been registered in both stores. The customer has a different address, cell number and has_royalty_card status.
The marketing team may only refer to the Canada store where has_royalty_card status is set to N and email the customer to promote the card even if the customer is already a member. Similar issues can arise when the supply chain team refers to the products.
After the implementation, we will only have one golden record for each customer. In this case, the marketing team would have known that this customer was already a royalty card member, and they could have offered other new services via email in which the customer could be interested.
Benefits
Here are the high-level benefits of implementing MDM in the above example
Data Consistency
Ensures that all departments use the same, consistent customer data.Elimination of Duplicates
MDM implementation Identifies and removes duplicate customer records.Improved Decision Making
It provides accurate and reliable information for better decision-making; in other words, it improves the efficiency of models.Compliance
Helps in meeting regulatory compliance by maintaining accurate and auditable customer data.
In conclusion, Master Data Management is the backbone of organizational success, ensuring data integrity, consistency, and reliability across diverse functions.
Cover Photo by Taylor Vick on Unsplash
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