Recent developments in the world of regulatory compliances and business management have made it mandatory or organizations to create and maintain accurate business master data. For those who are new to the concept, Master Data Management (MDM) for businesses includes the processes, standards, tools and systems used to define, record and maintain critical business data and metrics related to an organization from a single point of reference. MDM plans are used with two basic goals in mind – to record what the business has achieved and assess what it is capable of achieving. The entire system and its processes are designed from the point of view of many stakeholders, all of which are either data generators or users or both.
What is Master Data?
A rudimentary definition of the term will explain master data to cover all factors and variables that are critical to the success and performance of a business organization. This list may include the company’s customers, products, employees, assets and locations. Understanding what data type actually qualifies to be referred to as critical is debatable and can often be confusing. This is because every organization is different and has different strengths upon which it builds its success. Most businesses therefore, hire professional Masterdata Management (MDM) consultants, tools and software to help manage this identification and recording process with ease.
Why Should Masterdata Be Managed?
These critical data entries are used in various applications throughout an organization and its operations. Consider some examples – an incorrect address listing in the customer master list can mean that orders, invoices and even marketing literature are being delivered to the wrong location. A mistake in the product master list can lead to an irreparable marketing disaster. Or an incorrect account number listed in the Accounts master list can end up creating huge losses. Or worse, a data mistake in regulatory compliances can lead to huge fines when the organization is audited!
Standardized, error-free procedures are therefore necessary to ensure data is recorded accurately and in acceptable formats by all stakeholders involved. The simple error of recording William Smith as Will Smith can lead to major confusions. This is where a carefully crafted system of Masterdata Management becomes imperative to avoid issues.
How is Masterdata Managed?
One needs to understand that MDM is not a technological problem. In most cases, companies need to make a change in their fundamental processes to record, maintain and clean master data – a process that poses challenges that are more political than technical. It should also be noted that hours’ worth of efforts invested in identifying critical data heads and creating recording systems will not be fruitful if the stakeholders of this data in the organization are not provided with the right tools and processes to carry things out. Most organizations therefore, prefer to use professionally designed systems and software to manage their Master Data Management (MDM) project.
Going down this route will ensure that the organization covers all its bases and comes up with a plausible solution that actually enriches its internal processes.
EnterWorks offers the most effective and powerful masterdata management MDM solutions and software that is flexible and dynamic to meet every enterprise’s product description and master data needs.