Nowadays, data has become a powerful commodity for businesses.
Thanks to the data-heavy digital technologies such as social media platforms, IoT devices, video surveillance, and a huge variety of sensors, businesses are being bombarded with huge volumes of data every day.
According to a report by Industry Analysts, the amount of data across the globe will reach 30 billion by the end of 2020.
In fact, most businesses today rely on data to build critical business processes and strategies.
This means the quality and consistency of data cannot be neglected.
But, poor quality, data redundancy, and data inconsistency are what the majority of businesses are struggling with these days.
And as a result, there is now an urgent need for a master data management strategy.
In this post, we will help you exactly how to create a master data management strategy for your business in 5 easy steps.
5 Easy Steps to Create an Intelligent Master Data Management Strategy
Master Data Management plays a critical role in digital transformation initiatives.
It provides businesses with a single source of the core data across the entire organization.
This centrally trustable and governed data, as a result, helps to gain valuable insights and with better decision-making.
Below, we’ve shared a 5-steps process using which you can easily create an intelligent master data management strategy for your business.
That being said, let’s get started.
1 – Assess Your Business Goals
Before you adopt a Master Data Management solution for your business, first you must assess and be realistic with the readiness of your business.
In simple words, you need to first assess whether or not your business is ready to adopt a Master Data Management solution right away.
Though you can still adopt an MDM solution by tackling all data entities on the go. But the only problem is, as you’ll not be sure about the direction, the MDM implementation will be bound to get scattered.
In addition, adopting an MDM solution without assessing your business goals and setting the right targets will take at least 12-24 months and much of the data will still either be inconsistent or obsolete at the end of the adoption process.
Therefore, it’s best to set the right targets first and make a comprehensive plan around your business requirements.
Following this process will help you have a clear line-of-sight to business benefits.
In simple words, once you’ll have a list of clearly articulated MDM goals, you will easily get clarity on what master data needs your immediate attention.
Apart from this, the entire MDM adoption process will also take a shorter time.
So, before directly jumping onto adopting an MDM solution, assess the readiness of your business and set the right goals.
And once you do, then it’s time to move towards evaluating MDM enabling technologies.
2 – Evaluate MDM Enabling Technologies
Selecting the right MDM solution is essential to optimize your business processes with a holistic implementation.
And setting the right business goals helps a lot in the long run because not only they help to focus in the right direction, but they also make it easier to identify the right MDM solution for your business.
Simply put, knowing exactly what sort of solution your business needs help to track the ROI at the end of the adoption process.
So, when evaluating the MDM enabling technologies for your business, consider your business culture, data maturity, key stakeholders, and skillsets available to help your business with MDM adoption.
3 – Maintain Architectural Consistency
To make sure that your Master Data Management Strategy brings out the best outcome possible for your business, it is critical to create and maintain a robust architecture.
This includes carefully evaluating registry and consolidation, all architecture styles, and coexistence and transaction.
Apart from this, it is also absolutely necessary to figure out the roles of every implemented MDM solution within the architecture in order to achieve the highest data management efficiency possible.
In other words, your selected MDM solution should seamlessly blend with the overall IT architecture of your business.
4 – Bring the Right Stakeholders on Board
One of the common reasons for a Master Data Management Strategy failure is having a misaligned team of stakeholders who are clouded by a lack of clarity in data domains.
So, when adopting an MDM solution for your business, eliminating all data silos is extremely critical to do it right.
In simple words, all the key stakeholders in your business must be explained well about the quality and requirements of data being collected and managed.
Once all your key stakeholders and employees directly associated with your business data are well-aligned with the end-goals of your MDM strategy, everything else will work out automagically by itself.
And as a result, all your employees, key stakeholders, and third-party vendors will be easily able to navigate through the master data easily and achieve business goals.
5 – Use What Worked in Past
Using what previously worked perfectly can give you a head start when implementing an MDM strategy.
In simple words, you can identify the most reused data domains that have given desirable results in the past.
Once you have a list of all these most reused data domains, you can simply imply a new way to fragment these data domains and give space for new master data.
This new master data then, once exposed in your business analytics platform, will streamline the master data management efforts to achieve the ultimate business goals.
Simply put, using the frequently used data domains that brought desired results are most likely to deliver the same type of results when adopting an MDM technology.
As much as ROI that an MDM strategy can bring, without having the right technology upgrade, there are still chances of failure.
To achieve the best results, it is vital to assess your business goals, follow best practices across all levels, and select the right MDM technology.
Pimcore, for example, is one of the popular platforms that many businesses have adopted and seem to get desirable results from availing Pimcore development services.
Frequently Asked Questions
Q:1 – What is master data?
Ans: Master data basically represents the important business objects, which store the critical, valuable, and agreed-upon business information shared across an enterprise organization.
Q:2 – What is a Master Data Management Strategy?
Ans: A Master Data Management strategy is a method of helping an enterprise business with a link to all of its business-critical data to a single point of reference. In fact, when you properly implement a master data management strategy, it can improve data quality and streamline the data sharing process across your organization.
Q:3 – What is the main function of master data management?
Ans: The main function of master data management is to provide all business stakeholders with a single point of reference to define and manage all critical data.
Q:4 – What are the advantages of master data management?
Ans: The key advantages of master data management are the following:
- Eliminates poor quality data
- Effective prioritizing
- Improved efficiency
- Improved decision-making