How to Implement Master Data Management?

1
How to Implement Master Data Management?

• Data, as you might already know, is a critical
  asset for any business.
• Data helps businesses to establish a strong
  foundation to drive business growth.
• Specifically, consistent and quality data helps
  businesses with better decision making and gives
  a competitive advantage in the market.
• And not only that, but it also helps businesses
  to establish improved stakeholder relationships
  between customers, partners, and suppliers.
• But, in a traditional business, business-critical
  data about products, partners, and customers are
  often fragmented, which ultimately gets
  duplicated or misinterpreted, compromising the
  overall business performance and growth.
• And with rapidly increasing demand for faster
  product launches, cost optimization, business
  competitiveness, and compliance with government
  regulations, enterprise businesses are in dire
  need of consistent quality data.
• In fact, inconsistent and poor quality data
  across different systems within an organization
  has shown to slow down business growth.

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2
How Master Data Management Implementation can
Help?

• Here are the 4 main key benefits of implementing
  master data management in a business.
• Enhancing analytics capabilities, reporting, and
  business intelligence
• Discovering new opportunities to engage customers
• Improving business processes
• And optimizing data management across the
  organization
• So, now that you know what is master data
  management and its key benefits, lets move
  forward and see the best practices for MDM
  implementation.

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3
7 Best Practices for Master Data Management
Implementation

• 1 Align MDM Vision with Your Business Vision
• If youre planning to implement master data
  management in your business, then first you need
  to answer is a few critical questions related to
  the MDM implementation.
• In simple words, all your data related issues
  must be identified and understood in order to
  properly align the MDM vision with your business
  vision.
• You need to basically outline Why, How, and Who
  of your MDM initiative to track its ROI.
• This process will help you come up with and
  solidify the best MDM strategy and plans so that
  you can perfectly fit the MDM with your
  organizations needs.

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4
7 Best Practices for Master Data Management
Implementation

• 2 Start Small. Think Big
• Most businesses dont let their key master data
  assets like customer master data, product master
  data, and supplier master data sit ideal.
• But, when implementing an MDM solution, its
  critical for businesses to start small and focus
  only on one sub-set at a time of its master data
  lists.
• This approach will help businesses adopt a
  multi-phase strategy, which will allow tackling
  just 1 or 2 entities each phase to make them
  ready to scale in the upcoming phases.
• In fact, if you ignore the future scalability
  when implementing MDM for all your business
  entities, it will eventually lead to isolated
  master data silos, which will ultimately recreate
  the problem that you envisioned to solve with MDM
  in the first place.
• So, when it comes to MDM implementation, its
  highly critical to think big, but take baby steps
  to accomplish small wins and get ready for the
  next steps.

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5
7 Best Practices for Master Data Management
Implementation

• 3 Track Progress
• When implementing a Master Data Management
  solution, its critical to articulate important
  metrics and parameters to track the progress in
  quantifiable terms.
• In simple terms, its necessary to have
  pre-defined objectives and success criteria to
  establish confidence in the MDM initiative.
• For instance, after the completion of each phase,
  you must measure its ROI by setting diverse
  objectives in advance.Suppose youre starting
  the MDM implementation with your customer master
  data. In this case, you must track its ROI in
  terms of up-sell, cross-sell, and the benefits
  you gained from the increased quality of
  reporting.

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6
7 Best Practices for Master Data Management
Implementation

• 4 Collaboration is the Master Key
• Master Data Management is basically all about
  quality-oriented, data governance of your master
  data assets that almost always involves adopting
  new technology.
• Such MDM initiatives frequently span over
  different units across the business organization.
  And therefore, the success of MDM initiatives
  often depends on the level of collaboration among
  all the units that are coming together to supply
  input and developing the end-solution.
• AS a result, this process also gives the key
  stakeholders a sense of involvement with the MDM
  implementation initiative.

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7
7 Best Practices for Master Data Management
Implementation

• 5 Maintain Architecture Consistency Product
  Fit
• Businesses that are planning to master data
  management implementation must perform due
  diligence of the MDM-enabling technology and
  architecture.
• In simple words, the architecture must be
  discussed and strengthened before implementing
  MDM.
• There are many architectural styles that
  businesses can adopt such as Transaction Hub,
  Registry, and Co-Existence.
• Each of these architectural styles has its own
  advantages and drawbacks in terms of cost and
  performance.
• However, most enterprise businesses prefer
  co-existence architectural style as this style
  has the potential to meet all their business
  goals at an effective cost.

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8
7 Best Practices for Master Data Management
Implementation

• 6 Embrace Data Governance
• Master data management implementation is not a
  one-time data cleansing exercise. The primary
  purpose of MDM is to help businesses enable a Be
  Clean and Stay Clean process across the entire
  organization.
• And its for this reason businesses must embrace
  data governance.
• In the data governance process, businesses
  basically need to identify, capture, measure, and
  rectify all data quality and consistency at the
  data source itself.
• The MDM-enabling technologies like Pimcore
  already provide all the tools need to establish a
  data governance process and manage all master
  data assets.
• Although, you must hire Pimcore developers to
  build a personalized data governance model to
  support operational and analytical processes.

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9
7 Best Practices for Master Data Management
Implementation

• 7 Choose the Right MDM Service Provider
• Master Data Management is a rapidly growing in
  terms of technology.
• There are already a lot of platform providers in
  the market that offer useful MDM features like
  data governance graphical user interface (GUI),
  survivorship, and third-party integration with
  agencies like Experian.
• However, it is imperative to choose the right MDM
  service provider who will help you select the
  right MDM-enabling technology.

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10
Conclusion

• Nowadays, businesses need to take a holistic
  approach to their master data management
  implementation strategy.
• Remember, the right choice of MDM-enabling
  technology and master data management
  implementation can immensely help any business in
  different master data related activities such as
  decision-making, cross-selling, up-selling,
  compliance, and so on.

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