Organizations operating on data are already standard. Today, information is a powerful weapon. It enables innovation, faster services and continuous reduction of response time to customer inquiries. Most importantly, however, allows you to make wise business decisions. Unfortunately for management and data management departments, working with information is still a challenge.
They must provide relevant data to the departments that need them – creative, IT, marketing, sales, finance and customer service. None of them will have full potential without access to the database. For companies that move with the times and work in a state of full digitisation, automation and even using artificial intelligence, data management in the future will be more important than ever.
Why do you need the MDM system?
In the face of the flood of information from various sources and in different forms, IT companies have no choice. A modern and intelligent approach is necessary for the development of services, maintaining contact with customers and insight into your own platform. As a result, it will be possible to deeply analyze to create a successful business strategy.
The management and board of many different organizations are interested in MDM (Master Data Management) solutions. They need them to improve the management of a rapidly growing database. Everything to optimise the company’s operation. The development potential lies in the management of information for internal use in such a way that there are no errors in information communication, to eliminate all data silos, but above all to overtake the competition.
MDM system not only in the IT industry
IT specialists are constantly looking for ways to digitise their market sector and create a modern service for their clients. They need to have a consistent and trustworthy master database that can be used throughout the enterprise. IT departments focus on the high availability of master data to improve their analysis and, as a result, to better understand the market.
Who uses MDM systems?
The group of industries using MDM in the past was definitely more modest. Finance, healthcare and sales were pioneers in the adaptation of new data collection solutions and, as a result, developed this technology branch. This was mainly because of the laws and regulations and risk management that applied to them. In the medical industry, MDM helped simplify the management of employees’ working time and avoid penalties for non-compliance with legal regulations. In finance, MDM was used to collect better information about customers, which in effect enabled them to be offered better products. In sales, data management was mainly associated with the desire to improve customer service through better sourcing and more complete product descriptions.
For some time, more and more branches of the market have been implementing MDM solutions and associated technologies – telecommunications, industrial production and fast moving products. The telecommunications industry uses MDM to create a single data source for product and customer information. As a result, they are able to quickly and efficiently modify or even build a new service from scratch. The industry dealing with fast moving products thanks to MDM is able to centrally monitor its operations in the assortment and forecast sales and profit. Industrial production uses data management to optimise the records of its products through production supervision and information on material consumption.
MDM systems will improve virtual assistants
Enterprises are increasingly focusing on complete control of the situation – customer observation, providing the best services on multiple channels and continuous improvement of product management quality. Technologies based on artificial intelligence, such as voice assistant, chatbots and intelligent personal assistants often spoil the customer service market.
MDM can help a lot in improving the quality of such tools by improving their accuracy and real-time information availability. For example, programming a chatbot or virtual assistant would not be possible without well-ordered metadata. In the case of automatic speech recognition to make purchases or find the right product, the result relies heavily on the speed, purity and efficiency of the data collected.
Multi-domain data management
Master data management is most often useful for organising customer and product information. In the past, MDM solutions based on former business requirements. The most common of them was single-domain data, operating on the basis of a single business process as customer data or product data.
Now, however, thanks to the advancement of MDM systems, other types of collected data, such as digital resources, supplier data, hierarchy, geospatial or comparative data are popular. According to Gartner, the advantage of having multi-domain data is the evolution of the storage function to connect them together.
Thanks to this, enterprises using MDM solutions are able to discover internal relationships, combine them with each other and thus create new development opportunities. For trade, this means shortening the time of the product from creation to sale (time-to-market) through the interrelationships between the product itself and the supplier and customer.
MDM systems operating in the cloud
With the development of the industry using MDM systems, the demand for integration with internal systems increases. More and more enterprises operate on the clouds and they require that the implemented solution also have such a possibility. This enables continuous migration of application information and related databases. In addition, cost reduction also affects the desire to operate on the cloud. It results from the efficiency, speed, availability and capacity that is offered by the cloud.
The simplicity of the system is also important. Data merging, integration, modeling and general central data access is easier in the cloud. According to Gartner, in 2020 75% of companies using the cloud, but managing data outside the authority of internal departments dedicated for this purpose, will reduce the value of information held by up to 50%.
Machine and AI learning in MDM systems
Regardless of the industry, machine learning and artificial intelligence are of interest. Many companies consider the integration of MDM systems with ML (Machine Learning) and AI (Artificial Intelligence) solutions, but they are not on an advanced level.
Automation and artificial intelligence allow many companies to perform repeatable and predictable operations flawlessly. Some of them delegate complete control over certain tasks to increase customer satisfaction. In this way, they can increase the reach, speed and amount of data over multiple channels without multiplying the number of stakeholders. Automation also allows you to detect duplicate records and maintain the right quality of information.
The level of data management increases with the development of MDM systems and accompanying tools. A large role is also played by companies involved in the integration of MDM systems on their platforms. The demand for high-quality MDM solutions is increasing because they have the potential for business development and profit generation. Efforts will therefore focus on smarter and self-sufficient implementations that will go hand in hand with the desire to optimize the operation of the entire enterprise, compliance with legal regulations and risk management.