The importance of data in today’s business world is uncontested. Businesses transform different data types into valuable insights, leveraging them for several benefits, including operational efficiency, personalized services, and more. So, it’s not surprising that data technologies like business intelligence tools are increasing in adoption worldwide.
The business intelligence (BI) and data management market is expected to grow at an 8.6 percent compound annual growth rate between 2021 and 2028, with over $43 billion by the end of the period. Master data includes various data types, and these tools enable master data management (MDM) solutions to provide efficient data results. Does your company need master data management solutions? It’s easy to give a blatant yes, but let’s dive into the concept and use case benefits to better understand why you need MDM.
What is master data management?
Master data helps businesses properly understand their activities and transactions. Master data usually comes in four categories: financial structures, products, locational concepts, and parties, which include customer information. As an example of master data, customer information also comprises several sub-data types, including contacts, names, and phone numbers. Often, these customer types reside in disparate sources instead of a master database where you can easily access them.
Businesses find it hard to generate accurate results for questions like “Who are our most profitable customers?” or “Which of our products have the best margins?” That’s where master data management comes into play. Master data management is a unique approach that allows businesses to leverage advanced IT tools for uniform and accurate master data assets. What’s more, master data management solutions manage data by creating a single source of truth that morphs internal and external data sources and applications across an organization. Master data solutions perform this task using several strategies, including data exploration.
Does my company need master data management solutions?
Businesses deploy master data management solutions based on their unique data pain points. That way, businesses can enjoy solutions best fitting to their unique challenges. However, some general use case benefits of a good solution are described below.
Agility: Efficient companies adapt to market change and trends quickly. Businesses of all sizes need agile operations now more than ever due to the COVID-19 pandemic and its effects on the business world. Your company needs to access reliable real-time insights to identify operational weaknesses and growth opportunities for significant competitive advantage perks. Using MDM solutions for faster access and a deeper understanding of large data volumes can be the best way for businesses to stay agile in an ever-changing business landscape.
Improved decision-making: MDM solutions afford businesses direct access to their master data analytics, and what’s better is that they can interact with the data in real-time. Real-time insights can significantly complement your company’s decision-making prowess. Your company’s leaders can anticipate future trends and prepare your investments and operations accordingly.
However, efficient decision-making is not only reserved for your company’s leaders. A junior ranking member’s decision can have monumental effects on your business’s growth. Therefore, encouraging an inclusive data culture can make your staff more responsible and accountable for their actions. MDM solutions effectively democratize data use across an organization so your staff can get unparalleled access to unique data for daily operational decisions.
Better customer service: Businesses that prioritize personalization are winning the customer service race. This is because modern customers have endless expectations, and the best way to stay on top of the customer satisfaction game is by listening more and doing only what is needed. MDM solutions can connect you to a well-rounded view of your customers, pulling relevant company-related records from their social media, product queries, and shopping behaviors. These insights can help your company streamline its customer service activities, providing experiences that keep customers happy at all times.
All in all, master data management can benefit businesses of all sizes. Luckily, small businesses can deploy master data management solutions that fit their budget and company size.