With more consumers going online to shop, companies are turning to data for guidance. Data about customers, market trends, and product performance are vital to companies. But companies are relying on spreadsheets and human labor to analyze their data.
The problem with this is that there isn’t a unified way to update this data. It’s hard to see trends in the marketplace when you’re looking at ten spreadsheets with bad data. That’s why more companies are turning to Master Data Management. MDM tools help simplify the data intake process so your company can work at a higher efficiency.
What is MDM?
Master data is the data you need for your company to thrive. This can be information about customers, products, or suppliers. Master Data Management is how you use that data to help your business. MDM tools keep all that information in a centralized system. This makes it easier for you to view and update the data you need.
Let’s say your company is a bank. One of your customers gets married and changes the last name on their account. This is easy if they only have one product at your bank. But if your customer has three accounts, you’ll need to update their name three times.
Instead of going through the process yourself, MDM will update the customer’s name. That one update goes out to all the appropriate places, and you’re done. MDM tools make life easier for you and your customers.
Why You Need Master Data Management Tools
Nothing is perfect when it comes to business, and that includes data. Many companies say about 60% of their data is unreliable. But while bad data is a fact of life, MDM tools can help reduce the percentage of bad data in your company.
What Causes Bad Data in the First Place?
Most of it is human error. There can be empty fields, wrong information, or errors like typos. You can create duplicate entries, or there are questions about how to spell someone’s name.
The other issue is when you have many versions of your data. Let’s say you update the address in one form, but not in the backup form. Years down the road, you’re not going to be sure which address is correct.
What Are the Effects of Bad Data?
Bad data isn’t something you can ignore. It can affect everything in your business.
Let’s go back to the customer who got married. Unless you caught the problem, you have two names but the same address in your system. Now your company might be sending two promotional letters to the person. Do this often enough, and your customer will get annoyed. This could lead to a poor opinion of your company.
It can also lead to missed opportunities. If you don’t have an updated business name and address to send your invoices to, you won’t get paid. This also leads to a loss of revenue.
What Master Data Management Does for You
Good MDM makes updating and viewing your data easier in the long run. When your information is up to date, it can help you make better decisions for your company. It will also help with marketing.
MDM tools also help with productivity. MDM tools also help with productivity. Spend less time updating data, and you’ll have more time for other tasks.
If your company has to operate under certain regulations, MDM makes it easier to spot errors.
What Can MDM Do for Your Business?
By now we’ve answered the question “What is MDM?” We’ve also given you examples of what it can do. All businesses can benefit from master data management. Our company Innovit improved these three industries with MDM.
The automotive industry is globalizing. The demand for custom services and repairs has sent many customers online. That’s why it’s important to keep track of your data. There are a lot of moving parts in an automotive business. There are product regulations to update. Your company has to market improved technology. You need to keep an eye on stock, plus what’s selling.
A total MDM system can put your company above the rest. You’ll cut out redundant data and meet standard compliance needs. This will make it easier to grow your company.
Healthcare is a business that needs a tight control over its data. These companies need to follow international health regulations and protect patient safety. You want to maintain your reputation as a reliable healthcare provider. At the same time, you want to develop new technology for your patients.
Installing MDM tools can take away some of the stress for you. You can keep track of drug information, patient records, and even employee benefits. You’ll make better decisions about supplies, which will improve patient care.
When you’re running a product based business, you need up-to-date data. Our master data management tools can help you keep track of your stock and market trends. You’ll be able to make the kinds of informed decisions that help your business grow.
Want to Know More about MDM?
So what is MDM? It’s a reliable way to make your data work for you in this fast-paced market. If you’re interested in working with master data management tools, contact us here. We also have a blog with more information about data management. It can make your life, and your business, easier to manage.