How much data does the world produce today? You already know it’s more than ever. That amount in numbers is actually 2.5 quintillion bytes per day. And experts predict that this number is only going to increase as the years go on.
Businesses and other organizations must have a strategy in place for managing this data. And this is where Master Data Management (MDM) comes in.
MDM is necessary for providing a single reference point for data and to reduce redundancy, while increasing quality and analytics.
But why is it so much more than an IT thing?
The first reason why MDM is so much more than an IT thing is because it strikes at the very heart of the average business and the way it functions.
Data is constantly produced by businesses and it links back to customers, products, and supply chains. CMOs can’t afford to dismiss MDM as a simple issue of IT.
Yes, it still has something to do with IT, but it’s so much more than that. It relates back to every function of your business.
MDM helps you to make the big decisions regarding logistics, customers, and new products. Every crucial decision is informed by MDM.
It’s estimated that two-thirds of all businesses have now undergone a full digital transformation. In practice this means they’re capturing statistics from their customers and what they do.
This data can help them to make essential decisions that influence the entire direction of their companies. MDM is in its infancy but represents the next level of data management and governance.
Why is MDM so important?
That single reference point helps you to provide a central nexus for where you can access data. You’ll have a far more organized data management system and this will ultimately lead to better results for your business.
Businesses that assume you can just install some Master Data Management software and get started don’t understand the way it works. This is not a solution that you can install and be done with it.
And that’s a reason why MDM is so much more than IT. You need a proper workflow to take advantage of this solution. It also has to relate back to the functions of your business.
This is not just an IT solution, it’s about changing the way you do business. Your managers need to know how to integrate MDM into their decision making processes.
The majority of big organizations come to a point where they realize that they have to change the way they handle data. GlaxoSmithKline, the pharmaceutical company, discovered this in 2015 when they sent out a survey to their scientists in their research department.
The 30% of scientists who responded said that they found it nearly impossible to work with data immediately outside their department. And that, naturally, limited what they could do.
MDM is the solution to this problem because it provides a single reference point that relevant people can access. It makes data from other parts of the business available.
And that can improve collaboration and ultimately lead to better results.
Any company can take advantage of MDM and see incredible results. But it requires a complete change in mindset to make it a reality.
The first point is that this has to be a companywide initiative. It should never be confined to the IT department because this only makes up a small part of MDM.
The IT department will take control of the implementation, but the usage of MDM has to be controlled by the management team representing the entire company.
MDM is an early type of data management solution. Many companies have yet to consider implementing it. However, as businesses generate more and more data it’s going to become more necessary than ever to start using MDM.
It’s always best to be an early adopter of new technologies like this to gain a competitive edge over other companies.
Do you believe MDM can have a beneficial effect within your organization?