MDM: How to Realise the Full Potential of Your Data with a Multi-Domain Master Data Management System [5 Reading Tips]

MDM Reading Tips — Source: iStock/Olemedia

The better a company is positioned digitally, the more data is collected. This is a huge opportunity that often involves additional effort. Companies that use an MDM system can manage all this data in one place and provide access to it – for everyone: customer support, sales, HR and many more departments benefit from a multi-domain master data management system. It not only makes all relevant data available within a company, but also improves the company’s image in the eyes of customers and external partners by providing additional information.

MDM: The »Digital Brain« for Your Data

Companies need an overview of digital data domains and should prevent data silos and isolated systems from forming. After all, these make it more difficult to make sensible use of all the existing and generated data. The data reservoir should be seen as a kind of »digital brain«. In it, the individual domains are linked with each other and innovative insights are generated. If this does not happen, potential is wasted. A negative example that is the order of the day in many companies is the lack of linkage between product information management (PIM) systems and customer relationship management (CRM) systems.

Product data is automatically maintained in a PIM system and transferred to an online shop. However, employees still have to manually update product data for promotions in a CRM system. The PIM experts, for their part, maintain the data of all products with the same effort and priority, even though they could prioritise certain products with the help of CRM data. If you interlink your PIM and CRM system more closely or use an MDM system, you can automate your maintenance processes. This will enable you to take the step towards a digital brain / »single source of truth«.

MDM: One Solution, Many Benefits

On the one hand, the aforementioned digital data silos are broken down and systems are connected with each other through configurable integration capabilities. On the other hand, many quick wins can be achieved through automation options, such as automatic assignment of maintenance tasks based on location and product range. One example would be a faster time to market.

In the end, all this is reflected in KPIs, for example in dealing with customers, after the completion of purchases, when services or additional products have been successfully marketed or in the reduction of unvalidated/incorrect data. In addition, legal disputes can be prevented by automatically searching for prohibited terminology.

MDM: 360-Degree View Provides New Impetus

Customers benefit from the use of an MDM system because it provides clear information and comprehensive services regarding the products they are interested in or have purchased. Moreover, companies can significantly improve their customer support with an MDM system. Once approved, data is always updated in real time. Partner companies and intermediaries can take advantage of services such as media and product portals.

An MDM system promotes a better image and increases the satisfaction of all parties involved. Even within companies, a 360-degree view frees up capacities for new impetus. The onboarding of new employees is facilitated because master data management is not only about product data maintenance, but also about managing HR data and responsibilities. Another example is the sales department, which can act – and negotiate – more effectively thanks to central access instead of having to conduct extensive software research.

MDM: A Game Changer – Even in the Services Sector

All these examples do not only occur in companies that sell tangible goods in B2B or B2C. An MDM system is also suitable for the services sector. Insurance providers, for example, particularly benefit from modern master data management. For them, it is important that the information on their policyholders is consistent and up to date. Policyholders themselves want the presentation and description of the insurance offered, the range of additional services and the standing of the insurance company to be valid, for example through rankings, seals of quality and awards.

Another example can be found in the financial sector. Banks usually present their range of services well, but sometimes fail to provide information on the services that set them apart from others. Which bank branch is accessible for people with disabilities, which one is open when? Where can you find not only cash dispensers, but also a cash deposit machine?

Providing services to other companies is also a pressing issue. For many technical products in B2B, such as a punching machine, insurance can now be taken out directly at the time of purchase. However, this only works if all relevant aspects are specified. With an MDM system and its goal of providing a 360-degree view, such data can also be kept up to date at all times and displayed at relevant points.