What is master data?
Master data is defined as the master data of a company. These are all data on products, suppliers, customers, employees, leads, etc. that is relevant to business management and has been collected. They are also referred to as basic or reference data.
What is master data management?
Master data management is a compilation of the technology, tools and processes that make master data available across the enterprise. The aim is to ensure correct, consistent and complete data across departments and between other companies. Master data management is responsible for generating and maintaining the data.
Who is responsible for master data in companies?
Traditionally, the responsibility for master data lies with IT. Recently, the roles of Chief Data Officer (CDO) and Chief Information Officer (CIO) have become increasingly important. But if you look at it in practice, you will see that master data is often driven by the department that suffers the most damage if the data is not managed and is incoherent.
Which stakeholders does master data have in companies?
- Category Management
- Customer Service
- CRM Managers
What are data silos?
Data silos in a company are different databases or systems that store and manage all data, but there is no interface between them. Thus it is not possible to merge and evaluate data - or only with great effort - often this can only be manually conducted.
Why does data has to flow in the company in order to achieve added value?
Data must flow. Only if data is available in the right place at the right time you can unfold their full value. This means that data has to flow across systems. The faster, the better you are able to correctly anticipate and make predictions.
What are the benefits for companies that maintain clean data?
The advantages of clean data are great for a company. You secure an effective advantage over your competitors. The advantages are the following:
- You are ready for "data driven", i.e. making the right decisions based on data.
- You have a uniform view of all areas of the company.
- You have uniform reporting across all areas of the company.
- Correct data enables consistent decision quality.
- You have a basis for feeding artificial intelligence systems.
- You generate more sales thanks to correct data and reduce costs at the same time.
- You have a basis for managing risks optimally.
- You are ready for digital transformation.
Why is master data the basis for a data-driven business?
“Data driven" requires correct, current and complete data. Therefore, the beginning of a data-driven project is always master data.
What is digital transformation?
Digital transformation is a megatrend that has occupied people and the industry for years. It describes an ongoing process of change based on digital technologies.
What are the 4 Cs of master data?
- Code: Each entry in a database needs a code to ensure that it is unique. But every system has its own codes. In other words, companies have several processes, departments and regions in use. In practice, you need to bundle them or set a standard to clearly identify entities in the business process.
- Company: Corporate hierarchies have many levels: Local offices, branches, departments, all the way to their global mothers. The larger a company, the more complex its hierarchy is likely to be. It is essential to know and depict them fully and correctly. This prevents you from selling to the wrong companies and doing business with risky companies.
- Category: Categories define the markets and enable segmentation. They are also the lowest common denominator for market penetration. Targeting is often based on categories and their attributes. This helps to find potential customers by industry, segment, sub-segment, etc.
- Country: The last C refers to the country, or simply to the geographical origin. Here, too, there are hierarchies: Country, region, metropolitan area, province, city, postcode.
To sum it up: The code says that something is unique. Company says who owns it. Category says what exactly it is and where it is located. With all this information, you have the potential to manage and develop business relationships across the entire enterprise.