How master data management works ?
A framework for master data management works to ensure that all information is accurate and semantically consistent. It’s made up of two parts: Creating an initial master data record and then maintaining it.
Creating a master data record
This process begins by identifying the databases and applications that hold data that should be included in the master record. Then all attributes or characteristics – such as product color, size, and materials – are defined. Finally, data is matched, reconciled where inconsistent, and merged where multiple records exist.
Maintaining master data
This process involves cleansing, transforming, and integrating new data as it’s added to the master list to maintain the consistency and quality of records. Some master data management solutions today can automate and accelerate many aspects of this process.
It’s important to note that any process for managing master data should be carried out according to an organization’s data governance principles and policies. They outline how all business data is to be stored, managed, and safeguarded, and by whom – and that includes master data.
Best practices for a winning master data management strategy
A modern master data management strategy includes tools, technologies, and best practices to ensure all stakeholders can have confidence in the quality of data-driven insights – as well as the speed to act on them.
Here are some ways to create a winning strategy:
- Create a data governance framework if you haven’t already. As mentioned earlier, MDM activities should be carried out and applied according to data governance guidelines in order to ensure data stewardship and compliance.
- Harness artificial intelligence (AI) and machine learning. Some vendors offer MDM software and tools that use these capabilities to automate the process of checking new data for accuracy, matching it with current records, and reconciling them.
- Manage multiple domains in one instance. You can find solutions that focus on managing only one domain, such as customer master data or product master data. The best software, however, is capable of integrating and managing all of a company’s domains in one system – often in the cloud. This helps to lower costs, help staff be more productive, and support flexible use cases.
- Manage master data in the cloud. Cloud platforms can help increase productivity and efficiency by allowing data from different applications to be brought together, matched, merged, and cleansed – quickly, easily, and at scale. They also feature robust security and automated updates.
- Integrate master data management and data governance. By combining a single source of master data with centralized data governance in one solution, it’s easier to enforce policies and compliance – and define, validate, and monitor business rules and master data attributes.
Master data management is an ongoing endeavor, not a one-and-done project. As your organization grows, the volume of data will too. But with cloud-based, intelligent technology, tools, and workflows, these MDM processes become far more efficient.
Source: SAP insights