Why Master Data Management?

MDM, or Master Data Management, is perhaps not the trendiest thing, at least not yet. But you may well have heard of it since you're reading this. Maybe you found it here by accident. But the thing is, master data management is a complex thing and it takes some time to explain. But not as complex as Bitcoin and blockchains, thank goodness.

Let's start with the assumption that maybe you are working in a company that has some data.

I would say that whatever data you manage and whatever you manage it with, you already have, in a sense, master data and master data management. In fact, all companies have their master data.

Let's leave this wordplay behind. Master data is defined differently in different companies and that's how it should be. But master data management is a separate topic. Typically, ERP is seen as the master data management system. Sometimes that role is played by Excel and maybe Word.

But the thing is, master data management is a disconnected entity that brings together data from different systems and distributes it in a controlled way. One of the fundamental purposes of master data management is to manage business risks. At this point, it can be made clear that an ERP or e-commerce that owns all the data is a bit risky. The risk is increased by systems that are not fully controlled by the company, in other words, SaaS and other licensed products.

In an optimal situation, the master data system owns all the data and nicely links the data together. In this way, data from ERP, WMS, e-commerce, etc. systems is collected in the MDM system where it remains under control and secure. So this can mean customers, orders, stock information, manufacturing information, you name it.

Achieving this situation, where the company's important data is centralised in one system, allows the company to be entirely free to choose and change systems. Having said that, I would also like to emphasise straight away that when you centralise data in one system, it is good to remember that this system must be fully controlled by the company. It cannot be a SaaS or a commercial system.

Unfortunately, it's often the case that a system has taken control of the data and that system no longer serves the business the way it should. This can block the growth of the business.

As well as managing risks, effective master data management also enables efficient data distribution.

Master data is also known as "golden record". This means that the ultimate truth is found in this source.

So what do we offer?

If you are looking for a master data management solution, we build them with open source Pimcore software. We provide all the services you need, for just one monthly fee. You own the software and run it in your own cloud.