Effective Strategies for Implementing Master Data Management in Business

Master data management (MDM) is a powerful tool that offers numerous benefits to businesses, but implementing it requires careful and thoughtful planning. Here at Synopps.com, we’ve got five not-so-obvious tips to help you successfully navigate your way to effective master data governance.

MDM is a relatively new area for many companies, and some might see it as just a technical solution. However, IT plays a lesser role compared to critical business decisions related to staffing, goal setting, and leadership involvement. Essentially, MDM should be integrated into a company’s strategy, just like marketing or production, rather than being an afterthought.

One common challenge is dealing with multiple data formats within a company, which is not anyone’s fault but a result of the evolution of software. Companies often end up with different enterprise resource planning (ERP) systems and add-on products for various functions. This wasn’t a big deal until digital technologies led to an exponential increase in data volumes. Simplifying and reducing the number of data formats can make data cleansing and routine operations like capture and storage much smoother.

Almost all employees in an organization interact with master data in some way, whether it’s entering a customer’s name into a CRM system or writing an office address on an envelope. Many employees aren’t aware of what their data means to the organization, which wasn’t a big issue a decade ago but is now a significant challenge. Companies with solid master data management strategies often fail to involve their staff in the process. While it might seem sufficient for IT specialists to handle the data, excluding other employees can lead to missed opportunities and ideas.

MDM is constantly evolving, with new methods and software being introduced regularly. What’s possible now might not have been feasible a few years ago and could become outdated soon. Vendors are continually updating their tools, and business approaches need to keep up as well. While it can be convenient to stick with the same supplier for years, it’s important to stay open to newer, cutting-edge MDM strategies to stay competitive.

MDM is not like a conveyor belt or financial flows that require real-time oversight. You don’t start your day by checking on MDM, but it’s not something you can ignore like a rented office space either. MDM strategies should be monitored based on performance metrics and periodically revised, just like any other corporate strategy. MDM tactics, which involve the implementation of the strategy, also need regular review and improvement. Monthly or quarterly sessions focused on MDM strategies and tactics are recommended to ensure they stay aligned with current business goals and the state of records in the organization.

Policy, being a set of rules and principles for processing information, reflects a company’s philosophy, values, and long-term vision. It can’t be copied from another company with even the best MDM practices; it needs to be tailored to your company’s unique experience and parameters. While policies aren’t always followed to the letter or perfectly designed, having a solid established policy is far better than the chaos that can lead to operational inefficiencies, strategic failures, and potential fines for non-compliance.