You need to comprehend master data management concepts to build a solid business. The first thing you need to know is the definition of master data management or simply called MDM. What is it exactly? The description will make you understand the MDM. Most software systems consist of lists of data which are shared and used by some applications making up the system. For instance, when using a system of ERP, you will need an Item Master, a Customer Master and an Account Master. The master data you use is the key assets for your organization.
When using MDM programs, you need to have a strategy. The master data management strategy includes the strategy to decide what kind of data you need to manage. First thing you need to do is to identify the master data entities. Certain data will need a specific MDM. You have to define the type of data so you can decide the type of program you can use. Define the criteria of the data, then consider whether they can be treated as master data or not. Deciding what to manage will help you succeed your MDM usage. Hence, don’t be in a rush when you identify the data along with the MDM program.
The Behavior of Data
One of the master data management concepts you really need to understand is the behavior of data. Master data can be described from the way the data interacts with other data. The master data will always be involved with the transactional data. The following are the example for such behavior:
• customers buy products,
• vendors sell spare parts,
• partners deliver materials to the location needed them,
• employees are related to their manager,
• products depend on the placement in the stores.
You must understand the behavior of the data so that you can define the MDM required to handle the data you have.
Treating Your Master Data Management
Other master data management concepts you need to understand is the way you treat your MDM. You can treat MDM as the way it is read, created, deleted, updated and searched. The way you understand this will influence the data quality management you have. The way you treat your data management will help you enhance your business. For example, your customers can be created depending on the business rules, the data systems and the industry segment of your company. You can create your customers through various tools such as the Internet, outlet stores or sales representatives. In addition, you can also create your customers through phone calls.
Data management can also be considered its lifetime. Master data is more difficult to change than transactional data. For example, a contract can be considered as master data. A contract of an athlete may be considered as master data. The contract is usually more than a year. The athlete involved in the contact may have more than one contract. He or she will have a contract with the club that hires him or her. He or she may also have a contract with his or her sponsor. The agency of the athlete will manage all the contracts involving the athlete. The agency will arrange the contract and negotiate it. The contract may have certain lifespan.
The lifespan of the contract may be long or short, depending on the agreement of both parties. To understand better about the characteristics of MDM, it is necessary for you to attend conferences on this topic. One of the best conferences you need to attend is Gartner master data management summit. Attending this summit will help you comprehend all about the master data management concepts.