What Is an Example of MDM Data?

Master data management (MDM) is essential for running a business efficiently. A company’s master data is all the non-transactional information used by the company for its operations across all divisions, subsidiaries, and locations.

What Are Examples of MDM Data?

Master data examples include data on customers, prospects, suppliers, sites, hierarchies, charts of accounts, and all other non-transactional data, which is created, collected, organized, and maintained by a company.

Types of Master Data

Here are some common types of master data and the typical kinds of information managed:

• Customers: Customer master data usually includes the customer's name, address, phone number, email address, and other data about the customer that typically does not change frequently.

• Employees: Employee master data includes the employee's name, address, phone number, email address, tax ID, job title, salary, and other data about the employee, such as supervisor and benefits enrollment.

• Suppliers: Supplier master data includes the supplier’s company name, contact person, address, phone number, email address, and information about materials supplied, such as a parts list.

• Products: Product master data includes the product identification number (SKU), bar code, QR code, photo, description, specifications, warranty, and safety data where applicable.

• Locations: Location master data includes the location name, location number, contact person, address, phone number, email address, hours of operation, emergency contact information,

• Financial Structures: Financial structure master data might include ledgers, cost centers, charts of accounts, assets and depreciation categories, and tax allocations.

• Stakeholders: Stakeholders' master data may include information about board members, institutional investors, common shareholders, and business owners.

Why Master Data Management Is Important

Master data management (MDM) is important because it provides a centralized and consistent view of master data across the entire business. The use of an MDM software solution can also consolidate data from multiple systems into a single master data view. Additionally, a master data management framework can provide a higher level of data governance and standardization across processes, applications, and systems. MDM improves collaboration and data sharing across the business in all locations where it operates.

Master Data Management Roles and Responsibilities

Besides making the data available to those who need it, a master data management framework defines the roles and responsibilities of the personnel and data automation needed to keep the master data up-to-date and accurate.

Product Information Management

Using MDM for product information management provides many benefits. Product information may include more than just the basic data of price, SKU, name, ingredients, etc. It may also include product images, owner’s guides, product videos, how-to assembly instructions, related products, product ratings, warranty information, replacement parts, and more.

Besides having all the product information in a single centralized repository, it allows the product information to be easily integrated into the customer experience and marketing materials.

What Is an Example of MDM?

There are numerous MDM software solutions for companies to evaluate.

Master Data Management Tools

Some master data management system solutions include Stibo Systems, Informatica, PiLog MDRM, TIBCO, Profisee, SAP, IBM, Reltio, Oracle, and Microsoft.

Master Data Management Example Pricing

A low-end cost for a master data management system implementation might be around $300,000. The cost may be up to $3 million or more for a large-scale enterprise.

Not every company needs an MDM solution. Only the largest enterprises with highly complex data needs should consider an MDM solution.

For companies that cannot afford such an expense, point solutions such as Product Information Management (PIM) tools, Customer Relationship Management (CRM) solutions, and Product Lifecycle Management (PLM) platforms will provide more than enough functionality to effectively manage the company’s data. Some PIM solutions, such as Pimcore and Syndigo, also offer MDM functionality.

Which Is the Best MDM Tool?

Your preferred MDM tools list will greatly depend on the needs and existing tech stack of your business. For example, if your company already has a substantial investment in SAP, IBM, Oracle, Microsoft, etc., it may make sense to use one of those solutions for its MDM software. When evaluating potential MDM platforms and solutions in order to choose the top master data management tools for your purposes, companies should consider the top 10 MDM solutions listed in Gartner MDM reviews and the G2 reviews.

When you evaluate MDM and PIM solutions for your company, besides price and whether you can afford them, here are ten things to think about when making up your mind.

1. Understand Your Company’s Data Management Needs

Begin by listing your goals for data management. Consider who will make use of the data and what formats the data will take. Not all MDM solutions offer the same features, so understanding your data management needs is crucial.

2. Implementation and Maintenance

Take into account who will manage the deployment and maintenance of your master data. Larger enterprises have different requirements than smaller operations. Ensure your staff has the right tools to efficiently manage your data. Automation should be applied wherever possible to keep master data updated.

3. Ease of Use

Evaluate MDM platforms to determine if they are user-friendly. Navigating new solutions can be challenging, especially if it involves an unfamiliar system. The system should be easily accessible even for those without a technical background.

4. Support

Consider the available support options. You may need help in the implementation of an MDM system. Check the FAQ/knowledge base and read problems experienced by other customers. Try the live chat (if offered) and ask some tough questions in order to evaluate the competence of the customer service.

5. Scale

Determine the scale of your deployment. Are you managing a small business or a large enterprise? The MDM solution you choose must be a good fit for your company’s current size, with the flexibility to grow should your needs increase.

6. Empower Users

Imagine how the platform empowers users. A well-designed MDM solution should increase productivity, improve your profits, and enhance your customers’ experiences.

7. On-premises vs. Cloud Hosting

When deciding what data to keep on-premises, consider factors like data security, scalability, and maintenance. Data breaches can be very damaging. For this reason, critical path data may be better stored in a more secure way than hosting on cloud servers, while cloud servers are used for routine data processing at scale.

8. Security Features

Evaluate the platform’s security capabilities. Robust security measures are critical to safeguarding sensitive data and ensuring compliance.

9. Integration Capabilities

Check if the MDM solution integrates seamlessly with your existing systems, applications, and workflows.

10. Scalability and Performance

As your organization grows, scalability and performance become crucial. Assess the solution’s ability to handle large data volumes, concurrent users, and complex data processing tasks.

Book a demo with Lumavate to learn more about using PIM software.