Three Key Considerations When Implementing a Master Data Management Approach, Informatica GmbH, press release

Nothing lasts but change and companies today have to respond to it. To do this, they rely on a wide variety of digital processes and applications. However, this leads to more and more data and a large number of data types that are scattered across many different sources and systems. According to IDC InfoBrief, “Driving Business Value from Data in Face of Fragmentation and Complexity,” in collaboration with Informatica, nearly 80 percent of organizations store more than half of their data in hybrid and multi-cloud infrastructures.

Objective: reduce complexity
A major challenge for businesses is to reduce the increasing fragmentation and complexity of data. Because it prevents them from flexibly responding to market changes, learning about customer needs, offering sophisticated customer experiences, increasing their competitiveness and increasing their own sales. This is where master data management comes into play.

The focus is on master data management
Master Data Management (MDM) is a technology-based method of creating a master record of a company’s people, places and assets. With MDM, employees can share consistent records across the enterprise from one trusted source – one source of truth. This enables individual departments to gain actionable insights from master data to support strategic initiatives such as improving customer service, digital commerce, controlling and optimizing the supply chain.

Multi-domain solutions bring added value
When deciding on a multi-domain MDM solution, i.e. a solution that is able to manage several different types of master data, such as customers, products, and suppliers, in one system, companies should keep the following three points in mind:

1. Understand the relationships related to data-driven business decisions
Being able to manage multiple types of master data in one system and understand the relationships between these entities ensures better business outcomes. This applies, for example, to the relationship between the plant and the customer or product, supplier and asset. Companies that have a holistic view of sales, service, marketing, finance, and after-sales data also gain richer visibility into the entire customer journey. For large organizations with many offices or mergers, the ability to have a trusted, unified view across multiple organizations and disciplines helps accelerate integration, improve compliance, and reduce risk.

2. A simplified solution with robust functions
Cloud-native microservices architecture with intuitive user interfaces, workflow-driven, and artificial intelligence / machine learning capabilities simplifies data discovery and storage, and leverages master data for analytical and operational needs. Due to the progressive democratization of data across all departments, master data adds business value and improves KPIs such as portfolio share, customer satisfaction, and Net Promoter Score. In addition, the product data is continuously enriched at the various contact points.

3. Faster time to market and lower total cost of ownership
Companies that invest in an all-in-one solution that can be deployed in weeks rather than months are better equipped to keep pace with rapid changes in the marketplace. All the administrative functions required to manage master data with preconfigured domains and industry-specific content enable easier deployment and management. This integrated solution also helps companies lower their total cost of ownership.

Application

Thanks to modern, intelligent data management in the cloud, companies can meet the challenges of data complexity and fragmentation. As a result, they can react quickly to changing market conditions and create added value. The right multi-domain MDM solution always gives organizations the trusted, intelligent data they need to manage complex relationships with customers, vendors, and other key stakeholders critical to success.

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