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Role of Master Data Management

Master data management (MDM) plays a critical role in an organization by ensuring consistency, accuracy, and reliability of core business data. MDM supports data integration, quality, governance, business processes, compliance, analytics, and innovation. It establishes a single source of truth for key data entities and facilitates cross-departmental collaboration and seamless customer experiences.

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Dr Padmaleela Damaraju
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48 views24 pages

Role of Master Data Management

Master data management (MDM) plays a critical role in an organization by ensuring consistency, accuracy, and reliability of core business data. MDM supports data integration, quality, governance, business processes, compliance, analytics, and innovation. It establishes a single source of truth for key data entities and facilitates cross-departmental collaboration and seamless customer experiences.

Uploaded by

Dr Padmaleela Damaraju
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Role of Master Data

Management(MDM) in an
Organizations
Dr.D.Padmaleela
Contents

1. What is Master Data?


2. What is MDM?
3. Role of MDM in an organization

4. Conclusion
What is Master Data?
• core data that is absolutely essential for
running operations within a business
enterprise or unit.
• data about key business entities that
provides context for business
transactions and operations.
What is Master Data ?
What is Master Data?

• will differ depending on


the business model.
• all data that is critical to
your business's operations
should be categorized as
master data.
What is Master Data?

• Transactional data: Data generated by business applications


while supporting daily operations
• Analytical data: Data created through calculations and analysis
of transactional data to provide higher-level insights
• Master data: Data on the business entities that systems
reference to complete transactions. Analytical data is often
used to provide a deeper view of master data objects.
What is Master Data?
Example??

Customer A purchased 20 units of Product B on 01/01/2022 for a total of


$500.
Customer A and Product B are the master data.
Without either of these entities, there would be no one to purchase the
product or no product to purchase.
In other words, no transaction to conduct.
The transactional data is the quantity (20 units), the price ($500), and the
date (01/01/2022).
What is Master Data Management (MDM) ?

• processes, technologies, and policies used to create and manage an organization's critical
data- "master data."
• plays a critical role in an organization's data governance strategy and overall data
management efforts.
What is Master Data Management (MDM) ?

ensures
 consistency
 accuracy
 reliability
Role of MDM in an Organization

Data Consistency
• master data(core entities like customers, products, employees, and suppliers) is consistent
across various systems, departments, and business units.
• minimizes errors
• reduces redundancies
• improves overall data quality.
Role of MDM in an Organization

Data Integration:
• integrates data from disparate sources and systems.
• establishes a single source of truth for master data
• eliminates data silos
• enhances data sharing
• supports better decision-making
Role of MDM in an Organization

Data Quality:
• MDM can maintain high data quality standards – through processes like data cleansing,
enrichment, validation
• improves the quality of downstream processes and analytics
• Ensure that the data is
Accurate
Complete
up-to-date
Role of MDM in an Organization

Data Governance: establishes


data governance policies
procedures
ownership roles
ensures that data is managed according to established standards, complies with
regulations, and aligns with the organization's data strategy.
Role of MDM in an Organization

Business Process Efficiency:


Consistent and accurate master data supports efficient business processes.
Example-having accurate customer data allows for effective customer relationship
management and targeted marketing efforts.
Role of MDM in an Organization

Cross-Functional Collaboration:
• encourages collaboration between departments that rely on the same master data.
• effectively collaboration ensures different teams have access to accurate and consistent data
• allows for making better-informed decisions.
Role of MDM in an Organization

Compliance and Risk Management


• Allows compliance with data privacy regulations
• mitigates risks associated with incorrect data by maintaining data accuracy and integrity
Role of MDM in an Organization

Data Analytics and Reporting:


Reliable master data ensures accurate data analytics and reporting.
Role of MDM in an Organization

Merger and Acquisition Integration:


• During mergers or acquisitions, MDM can facilitate the integration of data from different
organizations.
• helps consolidate and harmonize master data from various sources, reducing complexity
and ensuring a smooth transition
Role of MDM in an Organization

Change Management
provides a framework for managing changes to master data
ensures that updates and modifications are properly documented, reviewed, and
implemented
Role of MDM in an Organization

Customer Experience
MDM supports a unified view of customer data,
enables organizations to provide personalized and seamless customer experiences across
different touchpoints.
Role of MDM in an Organization

Innovation:
sets a strong foundation for innovation by providing accurate and reliable data for new
initiatives, product development, and process improvements.
3.Conclusion

In summary MDM -
• maintains accurate, consistent, and reliable master data throughout an organization.
• supports better decision-making
• operational efficiency
• Compliance
• overall data-driven success.
 
Q& A
Thanks!

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