Looking at MDM (master data management) in the world we live in requires the understanding of two things: what it is and where it came from.
Master Data Management – A Brief History
According to Gartner, MDM is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise’s official shared master data assets. In simple terms? It’s a golden record of all data – one source to rule them all.
In the 1950’s and 60’s, very few companies had computers. All contact information and data were hand copied and stored through punch cards or address books. Data management evolved during the 1960’s as a source for professional training. It wasn’t until the 1980’s that “master data” arose and quickly transformed into master data management, serving as an organizational solution for the overwhelming amount of data created daily.
Fast forward 30 years. With a projected growth of $16.6 billion, the MDM industry is expected to double over the next five years. This substantial increase is a direct response to the shift from in-person commerce due to Covid-19. As companies seek to cultivate longer-term relationships with clients, they are consistently looking for insights that will direct their efforts. Cue the 360-degree view – a full scope of Customer, Product, Supplier, Finance, or Reference data. These views provide insight on every aspect of managing your company to grow and meet your company’s data goals.
New and Improved – MDM Evolves
The latest in MDM is augmenting your data through Machine Learning (ML) and Artificial Intelligence (AI). While both terms are often used interchangeably, they are slightly different. AI is used to mimic human-performed tasks, while Machine Learning is a partner to AI but can systematically learn from the data driven in without having to be reprogrammed.
AI can automate many master data management activities, while ML learns from the data you drive through it and can solve more specific targeted tasks and prognosticate solutions.
With the shift to remote working, data can also get very confusing and jumbled. While people are at home, it is nearly impossible to store every piece of data coming in and out. This is where the cloud steps in.
Another hot (necessary and important) topic for MDM is Cloud. Think of the cloud as a remote data storage center through the internet. The cloud has become the most effective and efficient way to store all new data coming in. Cloud computing has created a way for companies to grow and expand accordingly without having to purchase excessive amounts of physical capacity for storage (think of all the savings!).
As our data world continues to evolve, the power of MDM and cloud storage is only going to become more critical. The efficiency and accuracy that online data provides is monumental for businesses, making it easier to expand, increase ROI, and ultimately serve their customers.
Is your organization ready to take on AI and ML-augmented data management? Have you made sure your data is always-on and available in the cloud? Better adapt your data management to the world we live in – reach out for an MDM health check with our experts.