Let’s say you have a large marketing company that tracks products or customers. The information that customers share with us is called data. Software companies create programs to assist with the storage of this data and translation. If you have never heard of MDM, you are not alone. Lots of people haven’t, and today I am going to explain what master data management is.
Social media is a great example of MDM. Think about it. We share our name, phone number, status, employment, pictures, stories, traumas, milestones in life and so much more. This is quantitative data that tells the behavior of the customer. ID’s would be master data.
The next time you go shopping, check out the product number. This is the items ID. This get tracked from the factory where it was created to the warehouse to the store to you. Scanning a bar code sends data regarding that product to the company database. This is exactly how they know if it’s popular with customers.
Now have you ever had a problem when ordering a product and they got your address wrong? These discrepancies cost you and the company. Mistakes happen unless someone catches it and corrects it. If you own the company, you can be losing a lot of money. Hiring an MDM company can save you.
For the most part, large companies and organizations with multiple departments would benefit from such a service.
Middleware serves as a bridge that links the central point created by the MDM to the other systems. I like the way Red Hat
explains it, “If data is like water in your company’s plumbing, consider how much better things would be if you didn’t have to get a bucket, travel to the water pump, fill the bucket with water, and lug it back to where you were. Without middleware, that’s what you do every time you want to work. Having data piped anywhere in your enterprise is more convenient and more efficient.”
MDM uses third parties to ensure the accuracy of the data collected to eliminate the discrepancies. Master Data Management synchronizes all the data in the company. Imagine if you have different departments collecting data on products and customers. These different departments may have different lists and there may be duplicates of information scattered.
This is messy and inefficient. Part of a MDM’s job is to remove duplicates and formulate one complete accurate list.
According to Data Warehousing Institute, “US Businesses lose more than 600 Billion Dollars a year from problems with data quality”. That’s a lot of money to lose. Large companies have a bottom line, to make money. I have seen large organizations with poorly equipped data software that doesn’t catch mistakes and the loss is in the millions.
MDM companies such Profisee, finds solutions to complex problems. There are several companies to handle your business’ data quality out there but Profisee is the best. You can request a free demo from Profisee here.