Master Data Management

Master Data Management: How Crucial Is It?

In today’s digital era, data is one of the most significant assets for any business. However, the increasing volume of information has made it challenging for companies to efficiently manage data in the past few years. Furthermore, an often-overlooked problem is the impact on data governance and compliance. To meet these challenges, businesses are now turning to master data management (MDM). In this article at CMS Wire, David Roe explains how MDM helps in overcoming data governance problems.

What is Master Data Management?

According to Gartner, “MDM is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency, and accountability of the enterprise’s official shared master data assets.” The master data also describes the enterprises’ core entities such as prospects, customers, suppliers, hierarchies, and sites.

Why is Data Quality Critical?

MDM relies on real-time data consolidation. The importance of data quality and master data management is quite clear. Business leaders can make the right data-driven decisions only if they use the correct data. Without sufficient data quality, data is practically useless and sometimes even dangerous. Despite its importance, many organizations are still ignorant about master data management. Surveys indicate that many professionals have voted data quality as one of the top problems.

MDM and Data Governance

Without data governance, there is little chance for MDM to succeed. Therefore, organizations must build out a MDM strategy only when they have a well-managed data governance framework. “The governance group responsible for master data should have representation from all functional areas within the business to ensure common understanding and input,” says Roe.

Efficient data management is the need of the hour. MDM helps organizations overcome the challenges of manual data management, redundant data, and discrepancies in master data. Additionally, it helps companies streamline all the processes related to the master data management. To read the original article, click on https://www.cmswire.com/information-management/how-master-data-management-can-help-tame-the-data-governance-mayhem/.

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