How To Successfully Manage Master Data

Imagine your company just grew significantly. The several departments and enterprise units that compose the business use different sets of applications, which invariably use their own sets of data. Maybe the customer concept is already spread over several different systems, with all kinds of information. Some of that data may even be in conflict with other data.

How can your company have a single view of the customer that lives above all other data sets and that transversally constitutes what is its critical data? How can you avoid the dispersion and unsynchronized duplication of critical data, that may ultimately jeopardize the success of any business?

Beyond identifying what is a company’s critical data, how can it then be defined and managed consistently? What are the processes, standards, tools that govern and manage this data?

Say Hello to Master Data Management

All this is part of the Master Data Management (MDM) concept. It is absolutely crucial for the business to base decisions on the same critical data, for the sake of achieving customer satisfaction and improve business results. Being profitable or growing sustainably may depend on the correct management of this data.

Consistency, consolidation, uniqueness and reliability of data that is shared and used throughout the ecosystem are the key aspects for qualifying for a Master Data Management solution approach. MDM is a prime foundation for trusted data and more efficient business processes.

What do you need to successfully set an MDM solution in place?

The transformation to include a Master Data Management solution in the enterprise is a hard task. Keep in mind that you’re striving to create a centralized and core piece of the enterprise ecosystem out of otherwise disperse units. Impact on those units should also be carefully identified and considered.

First of all, it’s important to decide which master data to manage. This can be a difficult process, so it’s vital to involve all key business and technical stakeholders. Then you must gather a broad knowledge of the application ecosystem, to identify the optimal set of master data domains that should be included in the final MDM solution.

It’s a path, not a bang!

Do not underestimate the value of having executive sponsorship right from the start, particularly by presenting the transformation as a path, instead of a big bang. Resistance to change is always a reality and the best way to remove that hurdle is by presenting results. Therefore, you should also define metrics to measure the MDM transformation’s success and maintain that sponsorship firm throughout the process.

When all these issues are tackled you will have the foundations set to create or acquire an MDM solution. Which brings us to the million-dollar question:

Should you buy or build?

When deciding whether to buy or build, you need to consider:

• The costs of buying and configuring a new and possibly less flexible MDM product.
• The costs of creating and maintaining a new customized MDM system.
• The complexity of the master data hub needed.
• All non-functional requirements expected to be part of the solution.

If the decision is to build and not to buy, then have a look at how we do MDM with OutSystems Platform. You’ll get a better, more comprehensive grasp of what MDM is and when it’s needed, as well as why it makes sense to introduce it in complex enterprise ecosystems.

Also, based on the foundations of our Architecture best practices, you’ll fully understand how we address MDM as an OutSystems application.

João Brandão Rodrigues | Architecture Expert at OutSystems