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Master Data Management

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Master Data Management " MDM " ensures that all corporate data is stored and managed centrally. The information available about a product, process, customer or service is, as it were, in a master file. If something is changed somewhere in the system, this change is also included automatically in other systems. This prevents fragmentation of information and there isn't a single system with outdated data. As a result, the costs of errors or revisions are limited. In addition, reports based on correct data are more reliable and business processes can be optimally automated.

The management of master data is closely related to the management of product data " Product Data Management, PDM " and the management of Product Information " Product Information Management " PIM ". The PDM takes care that all the services or people of a company work with the exact " technical " data of the product, while the PIM is more focused on making the current product information available to customers and external partners.

Software and policy combination

There are different systems for managing master data. Specially ERP system providers are involved with the technology. Afterwards, they offer this software as both an ERP module and a separate and linkable software package. Among the MDM providers we see big names like IBM, Oracle and SAP, but the smaller ones are also involved with the MDM. That's why more and more SMEs are showing interest in managing master data.

However, software isn't everything for master data management. In order to truly talk about management, data governance must also be done. Governance is the most political side of the business. It specifies what the company will do with the data collected, why they are collected exactly, who is responsible, etc.

MDM and Business Intelligence " BI "

The management of master data is primarily intended to optimize the data of a company. This can be done through an MDM system or in a strictly organized data warehouse. The direct consequence of MDM is that all existing business processes run smoothly. For example, an old customer number is immediately replaced in all documentation by the new one. In this way, all the departments involved and external parties, such as sales, customer service and the transport company, always have the same and correct data.

Second, this information, in combination with data governance, can also help a company assess its corporate performance and optimize existing processes " Business Process Management, BPM ". The more accurate the data, the better a company can evaluate if the intended objectives have been achieved. Based on this evaluation, it can be verified whether, for example, the marketing strategy or specific processes should be adjusted. The more the master data is managed and interpreted, the more MDM is directed towards business intelligence " Business Intelligence, BI ".

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