What is master data management used for?

MDM functionality provides one point of reference for business-critical data. The MDM platform eliminates costly redundancies that occur when companies rely upon multiple, conflicting sources of information. For example, when a customer changes their address, MDM can ensure that the systems used by sales, marketing, or finance are updated with the new information. Large companies in particular suffer from having multiple sources of information, which is very costly.  The master data management solution supports efficiency in business process and can help prevent transaction failures in complicated processes such as “order-to-cash”. See the examples below.

 

Support Efficient Processes

Legacy MDM Support Efficient Processes
Manage single view of customer (SVOC) Regulatory compliance reporting
Record includes: Name, address, phone, email address Reduce duplicate mailing cost
Standardizes key data elements Cross-sell and up-sell
Data integration, quality and consolidation Mergers and Acquisitions (M&A)
Identity resolution and duplication of customer records Consolidate statements and bills
Avoid transaction failures