How Can Master Data Management Help You Grow Your Business in 2022?
Rising costs, increased regulatory oversight, and shortage of qualified labor as the pandemic of Covid-19 brought to life new trends in hiring and employment — all these economic factors are having a deep impact on how businesses are operating in 2022.
An increasingly challenging environment is pushing companies to look for new decisions to tackle threats and take advantage of opportunities. Master data services are among such decisions, and you can manage your data with Synopps. Regarding growth potential, its main feature is finding incredible insights from the company’s own data.
What’s Master Data Management In Simple Words?
Any company has assets that don’t change during an everyday routine — products, locations, customers, equipment, suppliers, and licenses. These non-transactional data are called master data, they are an information carcass of an organization.
This data is used by different company units. It’s often a case that each unit handles such data separately from other departments without a connection and cooperation. For example, records on supplies of wood are stored by the logistics, financial, and production departments of a pulp factory. Such an approach, when data is disjointed and, let’s say, independent, leads to multiple databases.
Master, data management’s purpose is to govern all this data in a way that can reduce the costs for capture, storage, and distribution of records and prevent failures like the absence of synchronization of data. MDM ensures that master data is always timely, duplicates-free, consistent, and complete. MDM is usually implemented through the design of an MDM strategy.
In recent years, more and more companies are taking MDM as the amount of data has been growing at an unprecedented scale due to the fast development of information technologies.
But the prevention of mistakes and ensuring that data is in order is not everything that master data management can deliver, though it’s already a strong boost to business profits. There are also modern technologies that can enhance the company’s earnings thanks to the proper use of MDM — artificial intelligence (AI), machine learning, robotic automation, and data science.
Just some figures to cement and illustrate our thesis.
The global machine learning market rose from $1 billion in 2016 to $9 billion in 2022 and is going to further expand to $117 billion by 2027, according to the Enterprise Engineering Solutions consultancy. The global AI market was valued at nearly $60 billion in 2021, and is set to skyrocket to $422 billion by 2028, a fresh Zion Market Research study revealed.
Other segments of modern technologies based on computing power and algorithms are demonstrating similar — double-digit — growth rates.
Well, yes, not all entrepreneurs are aware of these trends yet and are still prone to old-fashioned business methods, which is normal. Look, just six years ago machine learning was only a promising technology, so it’s no surprise that many have realized its potential yet.
But now it’s time to take it.
AI, Big Data, And MDM? Sorry, I Don’t See a Connection
Perhaps, you would like to know what MDM and these technologies have in common and why we reflect on growth opportunities keeping in mind the necessity to have a comprehensive MDM strategy in place.
Almost all state-of-art innovations of the last 30-40 years are linked with software to some degree. Even some simple devices you can now see in a house or an office use software, let alone such sophisticated gadgets as smartphones or highly accurate industrial equipment.
Any software works with data. The quality of data you feed to a computer program directly affects the quality of an outcome you get after pushing “Enter” like the quality of a soup depends on the freshness of meat and vegetables.
Let’s take one example to show why we say that data is critical to success. All this is of special importance for marketing campaigns as they rely on customers’ data and need to be aimed at a target audience as much as possible to yield maximum effectiveness.
Good returns on investments in advertising campaigns will hardly be possible in case you don’t have a clear picture of what the clientele is.
And you don’t surely have it if there is no one database in the company, a so-called “golden record” which would contain comprehensive, complete, and fresh information on customers. Distributed across various departments where it may (and usually is) be incomplete or outdated, customers’ data will get you poor marketing results.
The same is right for such emerging technology as big data. As the name implies its nature itself is in data. This method works with aggregated information, sometimes for seemingly unrelated fields, to extract trends and correlation, often unexpected. Findings are hard to be revealed through traditional analytic methods and without computing power. And without quality data, of course.
That’s why we at Synopps would like to get you to pay attention to master data management, the basement on which today’s advanced technologies can boost your business in 2022.
