MDM Creates Added Value

Why Master Data Management (MDM)?

The importance of data in companies continues to grow. Each expansion of the digital offering results in even larger amounts of data – but only a few companies are able to effectively use these volumes of data for themselves today. This is due to the fact that the data is not available in a structured manner, there is no central access to it and therefore the business relevance cannot be identified. In addition, poor quality of the data prevents real added value from it.

In many companies, the master data is managed completely independently of each other in different sources, which often means that it is incomplete or redundant. Companies are feeling the consequences of this in various areas. Sales potential is not realized because consumers are being addressed incorrectly. Buyers return ordered goods because they do not meet their expectations. Dissatisfied customers turn their backs on the brand and, in the worst case, pass on their experience to the target market. Even at the level of business processes, it is clear that unreliable or non-existent data can mean significant damage to companies: product communication that goes nowhere, high return rates, unnoticed violations of data protection guidelines and other compliance risks, an inefficient exchange of data between retailers and manufacturers – the list is long and ends with the recognition that poor data quality leads to high costs and not to underestimated risks to the company's compliance and reputation.

What is Master Data?

Master data is business-relevant data from a company that contains information about products, customers, suppliers, locations or other areas. The central importance of these areas for business processes makes it clear how important it is that the associated data is always reliable, correct, up-to-date and accessible. Transactional data and big data, in turn, do not fall under the term master data.

However, due to the growing complexity of business processes, it is becoming increasingly difficult to meet these requirements. Customer-relevant data is generated, for example, in physical and digital shops, during surveys, in contact with customer service, in social media channels and during discount and special offers. That all these impulses are centralized and synchronized so that they can in turn be effectively incorporated into sales and marketing processes – that is the task of Master Data Management (MDM).

MDM thus creates the basis for networking information, people and processes, which enables valuable insights to be created, the organization optimized and business goals can be actively pursued.

Does Your Business Need MDM?

Every company with a digital ecosystem depends on a good data basis. Depending on how big the company is, how many people need access to the master data in order to do their work in the best possible way, how complex the product structure and how diversified the target markets and sales channels are, the need for a central MDM system obvious and often even urgent.

Companies that have to assert themselves in a competitive market are under great pressure to drive innovations, launch products and campaigns quickly and effectively, optimize business processes and stand out from the competition. Master data provides the basis for this – it provides the valuable insights needed to make the right decisions strategically and organizationally and create personalized customer experiences that increase customer loyalty.

Consumers are more aware of the significance of their buying decisions today than ever before. They want to take more responsibility for how resources are handled as a result of their consumer behavior. At the same time, they are faced with an oversupply of countless options and are looking for ways to make the right choice. That is why they want to make conscious purchasing decisions and require comprehensive information about products and their production. In order to offer such transparency and build consumer trust in the brand, correct and consistent data is once again primarily needed.

Get the Most out of Your Data

For companies today, being successful means that they are able to act at any time. They must be able to react quickly when competitors launch a new product, when there are inconsistencies in product communication or compliance risks. However, a company can only be able to act if it has sufficient information. MDM makes it possible to have access to current and correct data at any time and to derive important insights from it. For example, they can not only tell from the data when certain products were not well received by the market – but also what reasons are likely to be the case. MDM thus provides the basis for constantly reviewing and optimizing business models and processes.