Master Data Management System

Every business needs a master data management system. It helps you stay organized. It improves your ability to provide good customer service. It boosts sales and builds brand loyalty that keeps customers coming back to your business. It also saves time, freeing your workers to focus on building your business rather than looking for data.

What Is Master Data?

Are you wondering why master data management is important? After all, the end goal of your business is to make sales and turn a profit, not discuss data governance topics and keep information organized.

Master data is the core data your business relies on to operate properly. The master data management example list includes:

Customer names and contact information
Sites
Hierarchies
Charts of accounts
Financial information

Without master data, you won't be able to create targeted marketing materials to build brand loyalty. You'll have a hard time making financial decisions as income and expenses aren't logged in a single location. You may also find it difficult to keep track of sales partners and meet their needs.

Master data is non-transactional in nature. This means that it's not connected to a specific sale or project. It does not include the number of sales per month or your gross and net profits for the year. Rather, it includes information that typically remains the same long-term. This data is owned by your business and isn't shared outside the company unless you hire an IT company to manage your computer network.

What Are the 3 Types of Master Data?

The three types of master data are customer data, product data, and financial data.

Customer data includes customer names and contact information.
Product data includes all data about the items you sell. This includes product SKUs, images, descriptions, benefits lists, product specs, warranty information, and assembly/how-to instructions and videos.
Financial data is the standard financial data you use in reporting.

The above master data examples don't include business information such as a list of employees, branch office locations, information on suppliers, or materials lists. This information isn't always included in a master data management system, but it can be if such a set-up suits your needs.

What Is a Master Data Management System?

A master data management (MDM) system centralizes all your information on a single platform. Such a system is typically an enterprise-wide deployment. It is extensive to implement but well worth the time and effort to get up and running as it can streamline operations, prevent mistakes, and boost sales and profits.

On the other hand, the master data management framework can be separate from your product data management tools. A product information management (PIM) solution can be easy to implement and provide your marketing and sales teams with the features and tools they need to grow your business.

What Are the Different Types of MDM?

There is more than one approach to the master data management process. Consider the pros and cons of each of the following master data management solutions to see which one is the best fit for your company.

A registry can be ideal if a company has multiple, disparate data sources. All the data enters a centralized repository where it is cleaned, consolidated, and then aligned. The original data remains the same throughout the process as the changes are made directly to the original source system instead of a separate MDM database. Unfortunately, this management system has some data reliability issues and can be time-consuming.

A consolidation approach creates a "golden record". This record is verified by a team member to ensure your data is accurate at all times. This method is reliable but expensive. The coexistence approach is yet another option. It enables a company to maintain an MDM database and original databases simultaneously. This approach prevents delays in updating records from one system to another.

The centralized master data management system is usually best for most companies. Companies that use this system have an MDM that acts as the central repository for all master data information. The platform's master data management tools allow authorized users from multiple locations to view and update data as needed. Anyone in the company who needs access to important data can view it with ease at any time. What's more, those using the system can rely on the data, knowing that it will always be complete and accurate.

What Is the Master Data Management Process?

How do you decide which master data management process is right for your firm? There are many factors to take into account when making a decision. Even so, most companies follow a process similar to the one outlined below:

Define what forms of master data your business needs to manage. Take your industry, the size of your business, and local/state/federal regulations into account to make sure the program you choose can meet all your needs.
Identify all sources of this master data.
Make a list of everyone in your business who will create, update, and use your business' master data.
Collect and analyze all your existing master data. Doing so will help you better understand your current data structure. This exercise should also enable you to identify and remedy major data discrepancies.
Appoint master data owners. Assigning master data management roles and responsibilities to various team members will protect the integrity of your data. It also ensures the data is updated as often as needed.
Create and implement a data governance program.
Set up a master data model for your entire business.
Evaluate and choose an MDM solution. There are many MDM platforms for your business but not all will suit your needs.
Establish a master data model for your entire business.
Implement your new MDM solution and model.
Regularly review data governance and master data discrepancies. It's also a good idea to look for opportunities for ways to improve your master data management process.

Choosing a master data management system for your company is not a one-time task. You don't want to change your system too often, but you do need to evaluate it when your company makes significant changes to its mode of operation. If, for instance, you're opening new business branches or adding a large product line to your list of offerings, you may find that you need to tweak or even overhaul your data management system to meet your current needs.

What Are MDM Tools?

MDM tools are specialized software solutions that enable companies to track data across an entire enterprise. Master Data Management tools Gartner, Moki, Maradore, Kandji, Jamf, and other platforms designs typically include the following MDM tools examples:

The ability to track data from various sources.
The ability to consolidate, store, and organize master data.
Tools to catch and eliminate duplicate information and highlight inconsistencies.
Third-party integrations so a company can view all data on a single platform even if the data is stored across various online and offline platforms.
Tools to export master data to other platforms as needed.
Tools that enable a company to identify essential metrics and gauge the success of each business department in order to improve productivity.

How Many Types of MDM Are There?

If the features on the master data management tools list outlined above don't meet your needs, you'll want to check out alternative program types. Well-known product information management platforms that include the top master data management tools you need to run a business include Pimcore, Syndigo, Catsy, Salsify, and Lumavate. These programs also include digital asset management tools that allow you to store and share image files, video files, and file attachments with text data.

Additionally, there are digital experience management platforms that enable you to use master data related to your products as part of your marketing campaigns. Such platforms include InMoment, Zendesk Suite, and Zoho CRM.

PIM vs. MDM

An MDM platform is a valuable tool for organizing your business and streamlining important operations. However, even the top 10 master data management tools don't have the features you need to use all your master data to its fullest potential. A PIM not only enables you to manage your master data but also share some of this data with sales partners and customers in order to boost sales and profits. For instance, with a PIM tool, you can automatically update online product pages if you add new products, discontinue old ones, and/or add new features and amenities to items currently for sale. You can also use a PIM platform to offer consumers custom product recommendations based on their browsing history and/or past purchases.

Unlike MDM tools, a PIM platform is a valuable asset to sales and marketing teams. It saves them time and hard work. It prevents human error that may occur when updating information manually. It also provides a treasure trove of data that you can use to assess consumer interactions with your products.

Another benefit of using a PIM rather than an MDM is that the MDM tools list doesn't include programs that are easy to set up and start using. If you need a fast solution for managing product data, a PIM platform with multiple price points will allow you to pick the tools you need for the job and start organizing and managing your data right away.

Do You Need More Than a PIM?

The top 10 MDM solutions won't meet all your data management needs. Even the best PIM platforms don't have all the tools and features you need to use your data as effectively as possible.

A product information management solution is a must-have asset for any company that makes and sells physical products. However, the information can only be fully used if your PIM software program has the features and amenities needed to easily share your assets in the form of digital experiences and printed materials. You also need tools to create channel partner marketing assets to ensure brand uniformity.

Unfortunately, most PIM platforms create integrations to third-party marketing software programs rather than providing all the marketing tools and features you need as part of the PIM platform.

That's why Lumavate stands out from other PIM platform providers. The company offers a single platform that includes product information management tools, digital asset management functionality, and a digital experience management suite that allows you to use your data in a myriad of ways to grow your business. Its platform is a product experience management (PXM) suite that includes all the tools, features, and amenities you need to build, grow, and expand your business.

What Does Lumavate Offer?

Lumavate's platform is a "what you see is what you get", no-code solution. It's user-friendly, so even those who aren't tech-savvy can master all the features and amenities with ease. You can put in as many products and product types as you'd like, and the program offers handy search and filter options, so you can find information based on any criteria with just a few clicks of a mouse.

There is no limit on the number of users who can access the platform and the Lumavate change log makes it easy for you to see when information has been added, deleted, or updated. The PIM program comes with digital asset management functionality, so you can not only add images, videos, and file attachments but also share these assets with sales partners and the public. This makes it easy for you to use how-to videos, product walkthroughs, and high-quality images on your site, in third-party online stores, and in online marketing campaigns.

What's more, the Lumavate PIM platform includes a huge selection of digital experience tools. These tools take the place of a traditional CMS as they can be used to build websites and microsites for specific products and product lines. You can also use the Lumavate digital experience platform (DXP) to send text messages, build forms, create and update an online catalog, and design online and offline marketing tools. The digital experience platform also comes with more than forty integrations to make it easy for you to share information with other programs and add products designed in other programs to Lumavate's PIM platform.

Another benefit of using Lumavate's PIM platform is that you can start using all the platform's tools and features right away. Many other PIM platforms require business owners to provide detailed information regarding the business and its operations in order to receive a custom price quote. Once you agree to the quote, the PIM company will have their technicians design a software package to meet your needs and then install the program on your system. The onboarding process can take days if not weeks, and you have to pay an additional fee for the company's IT assistance. What's more, if you need new features or want to eliminate some current features, you have to call in the company's IT technicians again to make the needed adaptations to your program. The unnecessary downtime not only wastes time but also causes a loss of revenue as you're not able to properly serve your audience without access to important data.

With Lumavate, all you need to do is pick a plan, pay for it, and start using it. If you want to change your plan at a later date, you simply select the new plan of your choice with a few clicks of a mouse. Additionally, Lumavate is up to 75 percent cheaper than many other PIM programs, enabling you to lower business expenses while boosting profits.

Are you ready to take master data management to the next level and start using all your data to its full potential? Would you like a platform that keeps your data organized, makes it easy to find, ensures all data is up-to-date and accurate, and also provides the tools you need to improve consumer experiences with your brand?

Lumavate has the tools and features you need to make your long-term business goals a reality. Get in touch with us at your convenience to find out more about what we offer or to schedule a product demo.