If you are a data-driven organization, then you can easily understand the importance of the Master Data Management (MDM) solution. For the effective management of your product and customer data, it is very essential for you to ensure the successful implantation of the MDM solution.
However, Master Data Management is a large scale software that manages all your business information in a single place and allows access across the different departments of your organization.
It manages the unstructured data in a well-organized way with the next level accuracy by offering an advanced set of features, functionality, and modules for the valuable data. The MDM solution boosts the data flow within the organization and eliminates the data discrepancy.
Implementation of a robust MDM solution helps you reduce the risk of data duplication and leverage the data cleansing. Essentially, it enables you with simplified the data linking and matching of relevant data and provide you the actionable insights about the different entities of your business.
Though Master Data Management contains a lot of advanced capabilities, there are a few challenges that you might face while developing or implementing it. We would like to share the biggest MDM challenges so you can design the right MDM strategy in advance and get maximum benefits out of the solution.
10 Biggest Challenges that Can Fail the Master Data Management Implementation
1. Data Standards
Establishing the data standard is one of the complex parts of Master Data Management implementation. You need to set the standards for your master data in a way that it should be in agreement with all different types of data available in your organization.
Make sure your defined data standards are capable to adapt the data from the various departments of your company. It is very important to plan your data standardization in advance. Else, this process will become cumbersome.
2. Model Definitions
The master data model is available with three different layers such as first-tier master data, second-tier master data, and meta-data. The integration of these various layers makes the master data more understandable and simpler. The master data model you prefer would make a considerable impact on your business operations.
Moreover, the MDM solution you select should be agile and adapt to the changes in complex systems seamlessly. If you integrate an inactive and ambiguous master data model, then it will only add a burden to your existing challenges.
3. Data Governance
Though you have set up the data standards and defined the right data model for your massive master data, the implementation of the MDM solution can be complex.
You need to determine the right data governance policies and string business rules to address the complexity of master data effectively. Data governance is an essential aspect to get a clear view of data operations.
When you need to select the Master Data Management tools, you have a lot of options. More options drive more confusion. But make sure you are selecting the right one that fits into your data management requirements.
Before making a choice, you need to analyze your business requirements, the goal, and purpose you want to achieve through the MDM tool, and what benefits the tool will deliver to you.
Additionally, consider the future needs along with your existing scopes so you will need not switch to another tool in the near future.
5. Data Integration
This is a very crucial part of Master Data Management as you need to collect data from different enterprise software and sales channels and manage them into the MDM solution. With the help of advanced software, the tedious job of data integration becomes easier.
But, while transferring the data from one application to another, there are chances of plenty of mistakes. Furthermore, data integration is a time-consuming process too. Moreover, during the data transfer from one system to another a few fields might be transferred effortlessly while others might face complications.
6. The Why Question
I have gone through many scenarios where a few stockholders agree to the implementation of the MDM solution, while others have the question “why” while adopting it. So, it is very necessary to communicate the advantages and benefits of the MDM software across the organizations and to each stockholder.
Get every individual of your organization on board and provide them the knowledge about MDM. Once your people have a clear understanding of why they should adopt the MDM, it empowers your business.
Sponsorship will be a decision from senior management or c-level executives. But, it is very essential for the successful implementation of the Master Data Management solution. The decision-makers should be aware of the importance of the project and must stand behind the goals.
8. Talent and Knowledge
Most of the organizations consider the MDM solution just like any other project. If you understand the importance of the MDM solution from beneath, you can consider it as the backbone of your company.
Develop and implement the solution with the help of the experts who have proven experience and talent in the same field. The skilled professionals can deliver a structure that helps companies to achieve their expected results from the MDM solution.
Make sure you are hiring the cream skill set who have capabilities to build and deploy a next-generation MDM for you.
9. Data Stewardship
To maintain the quality of the data, data stewardship is very essential. If you collect the bad data into your system, then it would not only hamper the consolidation of your master data but also create problems in your data management in the long term.
Thus, if you ignore the data stewardship, you won’t be to achieve the successful implementation of the Master Data Management solution.
10. Go Back to Start
For the successful implementation of the MDM solution, you need to ask the below-listed questions to yourself.
- Where do you start with the management of your massive master data?
- Have you prioritized important tasks and defined a starting point?
- Did you make the appropriate preparation for implementation?
- Is everything in place for the successful implementation of a professional MDM solution?
If you have all the answers to the above questions, then you can expect considerable success through MDM. But, if you don’t have a satisfactory answer to any of the questions, then you need to go back to draw and start a new sketch of the implementation process.
How Master Data Management of Pimcore Successfully Addresses All the Challenges?
Pimcore is a leading Digital Experience platform that consists of different components such as Product Information Management (PIM), Master Data Management (MDM), Enterprise Content Management (CMS), Customer Data Management, and E-commerce framework.
Credencys offers Pimcore development services to harness the potential of each component in order to build advanced business solutions for the companies. We develop separate solutions using each component individually. We can also combine multiple or all the components together to develop a complete digital platform for you.
We have a team of experienced and skilled Pimcore developers who develop custom MDM solutions to address your specific business needs. We develop and implement the software by considering the advanced functionality so our clients can gain a competitive edge.
Do you want to adopt the MDM platforms that collect data and enable you with a consolidated view of your massive information for better business decision making? Discuss your project requirements with our experts.
Frequently Asked Questions about Master Data Management
What are the biggest problems in Master Data Management?
The major problem with Mater Data Management consists of data redundancies and inaccuracies, the sheer volume of data, insufficient analytic, unreliable reports, high data maintenance, and integration cost, and more.
What is Master Data Management solution?
The Master Data Management solution ensures businesses about the sharing of harmonized data and cross-system data consistency without considering the physical location of the systems. It also allows to set up independent master data in different systems. It provides advanced services for the alignment of master data that involves the recognition of identical master data objects and keeping them consistent in the IT environment.
What the latest trends of Master Data Management?
The latest MDM trends that every business who aspire to develop and implement a Master Data Management solution are
- More industries will adopt master data management
- MDM integration with workflows and business processes
- Customized data security solutions to overcome data quality issues
- AI and Machine Learning in MDM
- Cloud-based MDM deployment will rise
What are the best practices for Master Data Management implementation?
For the effective management of your massive business information in the MDM solution, you need to adopt the best Mater Data Management practices which include collecting maximum information, checking out for the data quality, implementing a common metadata layer, organizing your data in a meaningful way, providing quick access to data to the right user, and more.