Almost most of those who have had a hand in management or have dealt with digital businesses have realized the importance of information and data. Information or data is one of the foundations of digital business management. Especially since all the power of these businesses compared to traditional jobs is this information that opens your eyes to the ways of future development. Now be aware of why and how to manage this information. What is the benefit of information management and what are its different methods?
Business information is entered from different departments and stored in different places. Websites, SaaS platforms, and IoT systems, each of which can have the same or different information from the master data system. Information must be stored in a standard manner in Master Data, this is very necessary for the integration of business information.
For example, think that a customer buys a certain product, naturally, you can store his contact information in the marketing team’s database. Then, if this move leads to a purchase, the information is also stored in the database of the sales department. Now, if the customer’s information has changed in any of these sections, the marketing and sales teams do not have complete information about their customers to establish effective communication with them. With these basic explanations, it’s time to see what master data or master data storage method is.
In this article, I am with you to review this issue.
Table of Contents
What is master data?
Master data is the unique data that characterizes the existence or condition of a business. The main information is the real source that leads the business toward further growth. The master data method is a precise, uniform, and coordinated method with all the structures of the organization, which provides the main information to different departments without any obstacles or inconsistencies.
What is stored as master data depends on your business model; it varies, but in general, any information critical to business operations should be kept under this title.
To better understand this issue, let us compare the main and secondary information of each possible section:
- Purchase and sale information (transaction): information obtained from the daily use of your service.
- Analytical information: Analytical information is usually obtained from examining transactional information and its use is further investigated to form a higher level insight into product performance.
- Master data: The data relating to business entities that are referred to buying and selling processes are master data. In addition to analytical information, basic information is also used to create deep insight into business conditions.
Let’s assume that customer A entered your site and bought 20 units of product B on 3/21/2000 for $1,000. Here, product B and customer A are the main information of your product because, without customer A and product B, there is no customer to buy and no product to buy. Purchase date, total price, and product quantity are also transactional information.
At first glance, there is no analytical data, but analytical data can be obtained by asking questions about the original and transactional data and thinking about it. For example, based on customer A’s purchase history, have they purchased this product before? If so, how many times? How does the amount spent in this transaction compare to their average for all purchases? If the transactions have been done, what is the ratio with product B? These questions and comparisons determine the cost-opportunity and development path of businesses.
Types of basic business information
1. Beneficiaries
The main data in this section is not only divided into the words customer or buyer but also includes the range of information from business buyers to company partners, employees, etc. Information that leads to business leads in sales channels.
2. Products
The information about each product, the features related to them, the description of the invoices, the media, etc., includes the main information of the products section.
3. Places
Information about physical locations where employees work, including branches, facilities, stores, etc.
4. Other information
Any information that is not classified under the previous three categories should be placed here. Information such as contracts, financial statements, financial profit or loss indicators, policies, or other assets of your company.
Examples of original data
Customer data is a prime example of the most important example of a business’s core data. What is more important than the information of those who buy your offers and are willing to pay for them? Maintaining, maintaining, and updating customer information is one of the most important things you should do in the Master Data method.
If your customer updates their phone number for the payment gateway, you should have the information beyond a store database, but in a central database, something like a main branch or main storage location that the sales team can contact if there is a problem.
Another clear example of basic information is product prices. Suppose the price of the product is updated in the sales system, but the price is sold on the website. The user will not see the actual price until they enter the checkout stage, and in fact, they will leave your site when they do.
With the master data method, it is guaranteed that the information is updated and stored with coordination and accuracy so that such problems do not occur. In the following, we will examine the concept of Master Data Management (MDM) together.
What is Master Data Management?
Master Data Management is a new and innovative way of analyzing and managing business information. A new method that brings a lot of coordination and precision to the business. The purpose of Master Data is the same. Integrating information and ease and accuracy in accessing them by different business departments.
In practice, the process of information management in the Master Data method depends on both culture and technology. If you have a business that keeps information in separate storage spaces with old methods, you need to use new forces to master the technology and execution methods of this process. This change happens with a new technical attitude and updated forces to keep the information in the right place and reach the right person at the right time.
Master Data’s management method has appropriate security methods and information laws to integrate information and increase accuracy in accessing them, to prevent possible risks and protect the information process.
Why is master data management important?
Master Data is a new method for organizations that aim to keep the organization’s main information up to date. Most companies turn to the MDM method to maintain and maintain their main information. Many challenges such as unnecessary information overload, data inconsistencies, business process inefficiencies, and rapid changes in the business model can be caused by the lack of proper information management.
That is why it is important to move on to the master data circuit and method. You can achieve a lot of long-term benefits by centralized information management in your organization, and the reason is very clear. When there is enough accurate information to make a decision, there is no reason to make a mistake like turning on the lights on a dark path. Then you are no longer afraid of the twists and turns of the road.