What is Product MDM
Think of MDM as recognizing a single data source as the beacon throughout the organization. There are a set of rules that define the location and all information for a particular data record. It is about all the domains that run through an organization, such as data about customers, suppliers, employees, locations etc. It is a cross-organizational effort to gather, manage and distribute data in the most efficient way possible and goes beyond any single department. As technology advances and evolves, so does the definition and uses for MDM.
The focus of Product MDM, however, is to ensure that product Master Data is centralized, cleansed, governed and shared to multiple business applications whether to support sell-side (e.g. eCommerce), buy-side (e.g. Procurement) or in-side (e.g. BI Analytics) use cases.
Most ERP systems do not have the required capabilities to support best-practice Master Data Management processes. They often lack the flexibility to easily add attributes to support enterprise level requirements without involving the IT organization. They also lack Data Governance capabilities including Data Security, robust business rule validations and audit trail. Data maintenance is also a challenge due to lack of configurable workflows to facilitate cross-division collaboration on data enrichment, review and approval.
All these issues can be addressed by an MDM solution. Extensibility of attributes, business rule validations, data security, flexible workflows and audit trail are just a subset of MDM capabilities that can tremendously improve the quality of Master Data – even in a single ERP application. With a solid MDM foundation, organizations can also better scale from a single ERP application leveraging clean Master Data to multiple business applications throughout the enterprise. Product MDM solutions deliver the following benefits:
- Increase business process efficiency with reliable master data
- Simplify ERP consolidation and upgrades
- Enhance data quality and minimize operational risk
- Lower IT cost and improve business agility