Introduction of Master Data Management 

MDM is based on information technology and data integrated, provide decision-making way for enterprise decision-makers and staff. Many companies are looking to MDM to integrate core customer, product, location and asset information across their operational systems for better customer services. It is the information system, a component-based system. Between different information operational systems in the enterprise MDM integrates data information and transfers data information that integrated based business process.

Characteristics of Master Data Management 

MDM first concern is the business strategy. Strategy decides the business mode and management mode. The business mode and management mode are implemented by the MDM componment and the logical process. That is to say, first of all is strategic analysis. It means that the strategy is differentiation strategy,  overall cost leadership strategy or integration strategy, and the integration is forward integration or backward integration. These strategic decide the enterprise business model and control model, decide the enterprise is managed by strategic management, operation management or financial management. But also based how many main componment system in the enterprise, what is the relationship between thest, what is the value chain of the enterprise and so on. The value chain extends out of the process, the process determines the function and business logic of MDM in the whole enterprise.

 
The architecture of MDM is abstracted information model of the enterprise and established the data item for the enterprise. It will use the master data of the enterprise data model, such as product, customer, employee, mechanism, material, equipment, suppliers etc.. These categories of data attached to different attributes that have already built in MDM as fields. And these attributes of data can describe all enterprise information. These can help the company concentrates their limited resources to service the effective customer that seletced by MDM, and keep the long-term and profitable relationships with these customers.
 
MDM integrates the large volume data of sales, service,  marketing and business, to make the data change to more useful and reliable information for enterprise, provides more further and technical business decisions across the enterprise, provides the accurate information for the research and development for the customer service or new products to enhance the competition ability of the enterprise. MDM makes these all benfits possible, it is a method of processing a large amount of customer data, in order to obtain reliable information to support strategies and business decisions.

 
Advantages of Master Data Management

 
1）Help to establish data and information integration platform for future and more benefits

 
The business and management information platform of traditional enterprise is developed to meet the various needs in different periods, so it will exist  discrete characteristics of data and information between each systems. Enterprises often have different systems and different service types in different times, it is the reason why enterprises lack the effective communication between information in different systems. Between different systems use interfaces to realize data exchange, but can not realize the  data integration process, so the processing of the business logic often used is not smooth. In addition, if has the new requirements of the application, the new system should consider how to integrate separately with other systems. While the old system upgrade will cause the system lots work to update and inspect the data. But through the professional MDM system in enterprise, these problems can be avoided.

 
2）For Financial Management

Through the implementation of MDM, the accuracy of financial data will have greatly improved. The financial data will show in accounting system just in time. This will greatly reduce the workload of the staff of financial and business. More importantly, it will improve the efficiency and quality of the enterprise. In the aspect of reducing cost, can through MDM to improve the efficiency of business processing by some automatic component. Finally, MDM will improve the level of financial analysis to help the enterprise to make the diversified profit analysis.

 
3）For HR & CRM

 
Most of the enterprise the data of human resources and customer information are inputted across multiple departments of different staff manual, this way is easy to error, a lot of poor data quality problems arise. And each department has their own rules. MDM can modify this problem from the beginning and make the data of human resources and customer information integrated in the true sense.

 
4）For Business

 
• Through the MDM, can predict customer of a product or service awareness, the loss of customers or interest transfer. Also can predict the new trend of service for existing customers to make the new  product or service mode.

• Grouping the customers according to the existing data with existing customers by some certain attributes to provide different services for different group.

 
5）For Cost Level

 
•To reduce the cost of development and maintenance of customer solutions.

 
• To reduce the redundancy system, the technical support and hardware cost.
 
• To reduce cost of redundancy interfaces.

• To reduce the cost of clearing the redundancy data.

 
6）For internal Management
 
Through MDM, can promote the enterprise to improve management, strengthen economic accounting to help the enterprise use limited funds to get a greater economic benefits and improve the rate of return on capital. MDM can provide the power foundation through the data integration and analysis for business innovation, management innovation, to improve efficiency in the use of funds, to reduce operating costs, to prevent and control the risk. MDM can help the enterprise grow.