How to Select the Best Master Data Management Software for Your Business
Master data management software (MDM) consists of polices, governance, standard tools, and processes that facilitate defining and managing the vital organization’s data that provides a reference from a single point.
Master data management software provides support to management of master data through removal of copied data, standardization of clean data and incorporation of guidelines for eliminating entry of incorrect data in the system. It is vital in creating a master data source that is authoritative.
The objective of management of master data is providing processes for collection, aggregation, consolidation, matching, quality assurance and distribution of such data throughout a company ensuring control and consistency in using the information. Master data management software eliminates use of several forms of the same master data in multiple stages of the company’s processes.
Some of the master data management software processes include data collection, transformation of data, normalization, rule administrative, consolidation of data, distribution of data, schema mapping, enrichment of data, and governance of data.
Master data management software provides comprehensive methods for data linking in a single file, referred to as master file. The master file offer reference to a common point. Master data management software has the ability of facilitating computing in multiple system architectures.
Master data management software uses three methods for transmitting master data. The methods include data federation, data propagation, and data consolidation. In consolidation of data, the software captures the master data from several sources and integrates it into a single hub for replication to other destination systems. In federation of data, master data management software provides a single virtue view of the master data from multiple sources to multiple destination systems. In propagation of data, master data management software transfers the master data from one system to another by using a point-point interface in legacy systems.
The entities provided by master data management software and selected by an organization depend on the nature of the organization, for example a customer can be an entity in a commercial enterprise. In this case, master data management software functions by identifying the sources from which descriptions about the entities can be collected.
You may like to read: Top Master Data Management Software
What are the Features of Master Data Management Software
Master data management software provides the following features; data governance, data stewardship, data quality, multi-domain, hierarchy modeling, flexible data model, implementation architectures, business process management, reference data management, data harmonization, central master data authoring, fraud and security intelligence, advanced analytics, customer intelligence, risk management, data and workflow optimization, and personal data protection.
- Data governance: It enables you to create alerts and routings affected by any type of data change.
- Data stewardship: It enables you to automatically validate bad data in real-time, track data quality issues, and easily view where discrepancies in data exist.
- Quality of data: It provides an excellent platform for facilitating standardization and validation of data based on the business rules and data standards and also facilitates monitoring the status of enterprise data using graphical dashboards.
- Multi-domain: It enables you to manage data in multiple domains and link the domains with the objects.
- Hierarchy modeling: It enables you to create hierarchies based on data relationships by using the drag and drop interface and also associate objects and data that are related within more than one category.
- Flexible data model: It facilitates configuration and administration of master data, provision of unlimited number of entities, relationships, and attributes, and multiple domains support that include supplier and product.
- Implementation architectures: It provides an excellent platform for defining views that are role based and business’s dashboards that enable users to effectively and efficiently manage master data for a company.
- Business process management: It enables you to define and deploy detailed business processes and integrations that give you a competitive advantage in master data management.
- Reference data management: It enables you to harmonize and integrate external and internal reference data such as entity identifiers, units of measure, and conversion rates used for categorizing information across the systems.
- Data harmonization: It provides an excellent platform for combining multiple data sources into an entity record that is used by consuming systems for feeding a business process.
- Central master data authoring: It enables you to create a master data authoring system that is centralized which facilitation creation of new records, application of custom business rules, and publishing to consuming operational systems.
- Fraud and security intelligence: It enables you to detect fraud, waste and abuse with accuracy and precision and also enables you to gain a realistic and holistic view of your fraud risk.
- Advanced analytics: It enables you to simplify data preparation, create better models easily and quickly as well as facilitating interaction between you and your data by using of intuitive dynamic graphs and charts to understand key relationships.
- Customer intelligence: It enables you streamline marketing efforts and stay competitive by developing new and unique value for your customer, therefore boosting customer loyalty.
- Risk management: It enables you to create a modeling and reporting platform that integrates the existing risk models and data hierarchies that help you to comply with regulations around the globe.
- Data and workflow optimization: It provides an excellent platform for identifying and easily fix quality issues that enable you to constantly monitor processes, make improvements, and perform actionable data analysis by using dashboards.
- Personal data protection: It enables you to use a single interface for accessing and managing your data as well as facilitating getting access to audit and monitoring and risk reports.
What are the Key Performance Indicators (KPI's) of Master Data Management Software
The key performance indicators of master data management software are; overall item accuracy, accuracy of generic attribute, and hierarchy accuracy.
- Overall item accuracy: It enables you to identify the correct attributes values for the attributes of interest.
- Accuracy of generic attribute: It enables you to identify the correct values for generic attributes in master data management processes.
- Hierarchy accuracy: It enables you to accurately use different units of the same time in without making mistakes.
What are the Benefits of Master Data Management Software
Master data management software provides the following benefits; improved revenue growth, improved productivity, improved compliance, optimize your supply chain, use of single interface for managing data, easy collaboration with other teams, easy integration and management of big data from Hadoop, one development environment, superior connectivity and data access, enhanced administration and monitoring, enhanced administration and monitoring, redundancy elimination, data consistency, and increase usability and business efficiency.
- Improved revenue growth: It helps you to provide personalized cross-sell and up-sell offers that facilitate accessing of reliable and complete data for all customer touchpoints.
- Improved productivity: It helps you to eliminate costs and IT issues, therefore helping you drive operational efficiencies through provision of consistent and reliable source of master data across your company.
- Improved compliance: Master data management software provides a centralized and complete master that helps in reducing costs associated with compliance penalties and reporting.
- Optimize your supply chain: It provides a centralized perspective of accurate information on product returns and inventory across your supply chain, therefore improving forecasting, customer service, and inventory management.
- Use of single interface for managing data: It helps you in identifying data that is personal and categorizing the multiple data types from one place.
- Easy collaboration with other teams: It helps your business users to tweak processes, analyze results, and update data themselves.
- Easy integration and management of big data from Hadoop: It provides you with an easy access to Hadoop, therefore allowing you to add big data to existing IT processes.
- One development environment: It provides role-based and intuitive GUI that offers drag and drop functionality and a customizable metadata tree that helps you in managing processes in master data management.
- Superior connectivity and data access: It helps you in facilitating connection to more data sources on more data platforms in real time.
- Enhanced administration and monitoring: It helps you to track metrics by using performance and status reports as well as information that is trending.
- Redundancy elimination: It helps you to remove redundancy in data and makes it to be centrally located using specifics and complete coherence.
- Data consistency: It makes use of data easier as master data management software eliminates confusion and creates consistent and easier workflow.
- Increase usability and business efficiency: It helps you to increase operational and business efficiency by making it easy to use data used in most business operations.
What are the Latest trends in Master Data Management Software
The latest trends in master data management software are; data quality assurance, hybrid transaction analytics processing, Bi Modal IT.
- Data quality assurance: It will be vital in information management segment which drive operational efficiency.
- Hybrid transaction analytics processing: Master data management software is providing this as a new database standard in master data management,
- Bi Modal IT: It will enable you to separate systems of engagement and systems of record.
How to choose the right Master Data Management Software
Choosing and purchasing master data management software is an involving process due to the difference in features and benefits provided by the software. The following is what to consider when choosing and purchasing master data management software;
- Master entity modelling options: It should have the ability of reporting and using standalone representation of entity data.
- Synchronization: It should synchronize data in analytical and operational applications in the master view.
- Identity resolution: It should resolve issues and link similar records in master data management.
- Data governance: It should run automated decisions for linking records to the data models.
Top Master Data Management Software
You may like to read: Top Master Data Management Software