Master Data Management (MDM) Platform - Extracting Gold from the Data Mine

This year, it is predicted that organizations and businesses worldwide will spend over $7 billion on Master Data Management (MDM) platforms. But why do businesses need MDM platforms? How does it play a role in driving business activities? This article will summarize what you need to know before embarking on the journey of implementing MDM for your business.

1. What is Master Data Management (MDM)?

Most businesses today operate based on disparate data systems. They use a variety of platforms such as customer information management software, product introduction software, employee management software, warehouse, transportation management software, and many other data-containing software systems. All of these data repositories are separate and cannot reconcile information across a single operating system.

These data silos often contain inconsistent, sometimes duplicated, and even incomplete information, leading to a fragmented and incomplete view of the business. Therefore, business questions such as "Which product was most used by customers last quarter?" or "Which group of customers brings the most profit to the business?" or "What upsell information should we send to them?" become difficult or time-consuming to answer.

MDM was created to help businesses answer such questions. It is a holistic data management solution that connects all information about people and processes in a cohesive and consistent manner. All disparate data areas are consolidated into an MDM platform, and fragmented information within these data silos is organized in a tidy, orderly, and easily referenced manner to enable managers to quickly and effectively see the status of customers and the business itself. Additionally, MDM platform applications ensure that the most important data and information of the business are accessed and shared seamlessly with high accuracy both internally and with external business partners.

2. Why is MDM necessary?

In today's business landscape, organizations must compete with each other in terms of data, especially in the process of interacting with customers. Data helps you understand what products customers have purchased, how the sales process for those products was carried out, which marketing programs have been used to target them, and many other important pieces of information. With the mechanism of providing a panoramic view of all data systems, businesses can interact with customers instantly, leveraging relevant information to upsell, and cross-sell products quickly and accurately, thereby increasing revenue while significantly reducing sales and marketing costs. Product data can help businesses achieve expected revenue and profit when launching a new product to the market and optimizing the supply chain. MDM is also a tool to exploit accurate information about employees, raw materials, infrastructure, and suppliers across data domains, bringing significant business efficiency to every enterprise.

3.The effectiveness of MDM in leveraging data to increase revenue for banks.

MDM is now being utilized by banks to rapidly and sustainably increase revenue and profits. MDM supports massive and accurate data platforms, enabling businesses to make decisions on which advertising campaigns to target specific customer segments, providing the fastest response along with the highest profits. To achieve an efficient chain of interactive responses, MDM allows banks to reference all relevant customer information, from personal information to transaction history and frequency, as well as information about relevant responsible parties. How have customers interacted with advertising campaigns? Which branch is best suited to take care of these customers?

From there, banks can predict the behavioral characteristics and responses of each customer segment; based on synthesized reference information to provide appropriate responses, easily influencing customer behavior. These responses could be suggestions, proposals for products that customers may be interested in, sending messages suggesting savings with preferential interest rates, etc. Importantly, MDM can collect and process information from hundreds of thousands of customers along with millions of their behaviors in a fraction of a second.

Conclusion

Data is indeed the hidden gold mine, and businesses need a robust system to exploit it. The MDM platform will strip away the outer layers of soil and rock, sift out the impurities, mold them into neat gold bars, and even display them beautifully in the treasure trove of each business. That is the most reasonable way to describe the MDM platform; it is the tool that supports businesses in mining gold from the data mine.

ENAO is always ready to support businesses in understanding the Master Data Management (MDM) platform. Please call us at +84 912 762415 to receive further advice for your specific business situation.