Master data management (MDM) may have started as an IT-centric toolset for managing single data domains, but the technology has evolved. It would be hard to pinpoint a time in recent years when effective data management wasn’t a priority for any large organization.
Traditional structured data still constitutes the bulk of information under management. A host of other data types have grown in prominence and demand better oversight. External third- party data, unstructured social data and machine-generated IoT data have become more important to more decision makers.
While the need for MDM is arguably stronger than ever before, plenty of organizations are still slow to adopt, even those with a user base thirst for data. The research demonstrates that the presence of a formal MDM strategy can have a demonstrable impact on user satisfaction.
Companies with a formal, technology-backed approach to MDM keep a closer watch on their data, standardize and centralize its management and accelerate its flow among different departments. As a result, these companies enjoy a more satisfied user base when it comes to these critical areas of data quality, portability and expediency.
Certain companies stand out as top performers in their usage of Master data management. While pinpointing the real ROI can be tricky, leading companies seek to capture the right data, transform it into insight and leverage that insight to generate a real business impact. With these ideas in mind, best-in-Class companies were defined by their ability to perform against the following three key performance metrics:
- Data quality
- Organizational trust in data
- Business efficiency / cost reduction
Companies or departments with an intensified need for managing one specific data domain would historically gravitate toward Master data management as a way of ensuring one version of the truth and higher quality data within that domain.
Nowadays, data environments are much more interconnected and interdependent than ever before, and many companies turn to MDM to help navigate this enhanced complexity.
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