In a world where data is the most powerful asset for business growth, Master Data Management (MDM) is a core function of every business. MDM aims at the creation of a single source of the most valuable data that is used by the departments across the organization.
Implementation of MDM can boost the data flow of the company. MDM also eliminates data discrepancies, which can cause long-term damage to the business. However, the implementation of MDM is not free from challenges. As MDM focuses on the consolidation of the most-used data in the organization, most of the hindrances in the implementation process arise during consolidation.
Let us look at the common challenges you might face during the implementation of MDM:
The master data model you select would make a massive difference to your business operations. Your MDM software needs to be agile and adapt to the changes in complex systems. An ambiguous and inactive master data model would only add fuel to the existing problems. Hence, it is essential to define the different layers of the master data for seamless integration.
Setting the standard is one of the most challenging tasks of MDM implementation. The data standard you set for your master data should be in agreement with all the data types in your company. The standard you set needs to be adaptable to data of various departments of your organization. Hence, if not planned well, standardization can be a cumbersome process.
Despite the introduction of definite models and standards, MDM implementation can be complicated. Strong policies and business rules can address the complexity of the master data. Governance is a vital element without which it would be impossible to get a clear overview of the data operations.
Integrating MDM with other data applications can be a laborious task. The data transfer from one application to another might cause errors and take a lot of time. Furthermore, during the integration process, a few fields might transfer seamlessly while others might not.
Establishing data stewardship is essential for you to maintain the quality of data. Bad data would not only hamper the consolidation of master data but would also create long term data management problems. Thus, in the absence of efficient data stewardship, your MDM implementation would suffer.
Understand the Challenges
Though MDM implementation has considerable challenges, it is a must-have for every business dealing with data. These challenges can extend the implementation process and cause revisions. However, if you understand the issues you might face during implementation, you would be better prepared for the process.