Business owners of all sizes and sectors recognize the importance of the data they have on hand to make important decisions to forward their companies. Through master data management, businesses ensure that their shared data is consistent and accurate, delivering the best insights based on that data quality. Along with reference data, companies in various disciplines can better get through their business processes to stand out in the marketplace. Here are just some of the examples of master data.
1. Operational Master Data
One of the great master data examples is from an operational point of view, where master data typically represents transactions and the entities involved. In an order-to-cash process, a customer will buy a product from a retailer using an asset like a self-service kiosk. Information like the product, location, and assets are all examples of master data that the retailer may turn to in uncovering deeper insights into their business transactions. While the systems that hold this data usually do not record transactions, they hold consistent information within that data domain regarding business processes.
This form of master data management for operational systems allows companies to comb through receipts and invoices to uncover what’s driven efficiency throughout their organizational structure. MDM offers a centralized perspective on products, with real-time data delivering accurate information on inventory. This helps end-users get a better grasp on how to improve their current supply chain. Timely information will support decisions and actions made by the applications, processes, and people that run your company.
2. Analytical Master Data
From the perspective of business analytics, master data are the entities that an organization tracks or examines. A user-friendly dashboard may use transaction data from each financial account tied to a location of a distributor or retailer. With MDM processes in this instance, a report could provide details by reporting on customers’ attach rates to a product portfolio. The systems that hold master data usually do not have transaction details, holding conformed dimensions and attributes. Accurate master data uses analytical tools to properly aggregate and analyze the information.
In this analytical understanding of master data, businesses can access reliable and complete information to address all customer touchpoints of essential data. MDM can provide a consolidated source for companies to uncover insight into data processes between customers, products, and relationships. This accurate data system helps to increase revenue by responding to what the customers need based on various identifiers. With a better understanding of the customer base, companies from the corporate level to small businesses will understand how to make the most of their valuable insights.
3. Master Data Governance
From a governance perspective, master data are the entities that are subject to control by data scientists. Privacy regulations often dictate how to go about curating customer, employee, or patient data. Assets and locations are governed by risk management policies. From accounting regimes to financial regulations, these hierarchies not only influence design but the view of master data. The systems that hold master data usually do not record policy and governance details, but they often have the entities that define the scope for your data governance program.