As business data are getting more and more consolidated, the need for Master Data Management is becoming extremely critical for businesses, especially when there is a rapidly increasing variety of systems, applications, and customers creating and accessing a large volume of data every day.
Today, businesses have no choice but to smartly manage their exploding volumes of data if they want to survive and grow in today’s competitive environment.
In fact, we’ve also observed a substantial rise in businesses from different industries seeking to implement a sound Master Data Management solution to manage, streamline, and improve the quality of their rapidly growing data.
What is Master Data Management?
The main objective of Master Data Management is to provide processes to collect, manage, match, aggregate, consolidate, and distribute business-critical data throughout an organization through a single source of reference to maintain data consistency, quality, and accuracy.
In laymen’s terms, master data management helps businesses to manage and maintain an accurate, reliable, consistent, authoritative, and secure data environment that is used by application systems across the organization.
In this post, we’re going to take a look at 5 master data management trends that will go mainstream this year.
Top Master Data Management Trends of 2020
As more and more businesses are adopting MDM technologies, the number of value-adding capabilities have also grown, increasing the volume of valuable insights and return on investments.
Below, we’ve shared 5 disruptive master data management trends that will potentially create game-changing growth opportunities for businesses that will adopt it.
1 – More Industries will Adopt Master Data Management
Nowadays, leading medium and large scale businesses are focusing on digitalization to deliver a more dynamic, consistent, and better user experience to their customers.
These businesses have realized that having a trusted, accurate, and consistent version of master data can bring lots of opportunities and growth.
Last year, only a handful of industries such as retail, finance, and healthcare were actively adopting MDM solutions only to match the compliance requirements and risk management.
For instance, the healthcare industry adopted MDM solutions mainly to avoid regulatory breaches and its penalties, and to simplify physician spend compliance.
The finance industry, on the other hand, adopted MDM solutions for better risk management and for the cross-selling and upselling opportunities that the MDM brings with it.
Lastly, the retail industry leveraged MDM solutions for improving customer experiences and rationalizing their product information.
This year, however, more industries are expected to step up and adopt MDM solutions to realize its advanced analytics and data capabilities to gain a competitive advantage in the market.
The telecom industry, for example, has started adopting MDM solutions from this year to create a trusted and single source of data to streamline and improve its operational processes.
2 – MDM Integration with Workflows and Business Processes
Due to huge volumes of data being created every day, many industries are facing the supply chain challenges that often need real-time synchronization across all internal application systems.
This integration, as you might already know, will require the adoption and implementation of a master data management solution, which will ultimately enable businesses to improve their business processes and achieve their other business goals.
Well, the adoption of MDM with workflows and business processes will significantly improve the quality of data stewardship and collaborative processes.
And once the MDM solution is implemented with the business processes and workflows, it will also make the data accessible across the entire organization.
3 – Customized Data Security Solutions to Overcome Data Quality Issues
The majority of businesses today have informal data stewardship processes to tackle data quality issues.
And even if these businesses adopt MDM solutions to improve the quality of their data and make it accessible across the entire organization, there will still be a challenge of business data security.
In other words, businesses that follow traditional processes are bound to get complaints from customers or even failure in their business strategy.
But, the businesses that have adopted MDM solutions will be easily able to identify data conditions and issues and review, prioritize, escalate, and resolve them in no time.
4 – AI and Machine Learning in MDM
Nowadays, almost all industries have adopted Artificial Intelligence and Machine Learning technology in some way, including the MDM market.
Simply put, medium and large businesses have already started experimenting with AI and Machine Learning in their MDM solutions.
However, it will take a few more months for AI and ML in MDM to reach a more mature level.
AI and Machine learning, as you might already know, have tremendously helped enterprise companies to perform repetitive tasks without errors and even engage customers effectively to increase their overall customer satisfaction rate.
Such capability now combined with a robust master data management solution will help medium and large scale businesses to identify duplicate data, harvest even more valuable insights and assure higher data quality.
5 – Cloud-Based MDM Deployment will Rise
Cloud-based MDM is expected to increase in 2020. This is mainly because of the continuous need for associated databases and app migration to be consolidated.
According to a report by Gartner Research Firm, 75% of companies that deploy cloud-based applications will happen outside the information governance practice, which will ultimately decay the value of their data assets by 50%.
To combat this, businesses are deploying cloud-based MDM solutions for improved data matching, integration, modeling, synchronization, and a single view of trusted master data.
Data-driven businesses are in dire need of a master data management solution.
Fortunately, there are many open-source MDM technologies like Pimcore available in the market.
So, if you are planning to adopt an MDM solution, be sure to consider Pimcore development services and keep in mind these master data management trends that are shifting towards becoming mainstream in 2020.
Combining Pimcore with a Master Data Management strategy has already helped several of our clients to achieve unimaginable results.
Get in touch to discover the best MDM opportunities for your business today!
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 – Why master data management?
Ans: Master data management practice actually arose out of necessity for medium and large businesses to improve the quality and consistency of their key data assets, which generally includes customer data, product data, employee data, asset data, etc.
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