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May 7, 2009

Reducing IT Costs through MDM

Filed under: Data Quality — Tags: , , — Olga Belokurskaya @ 5:08 am

Today MDM becomes trendy, though not everyone fully understands what it really means for an organization. However, integrated MDM plays an important role in reducing compliance risk due to a lack of data transparency and trust, especially in the financial industries. In general, MDM aims to provide consistent, comprehensive core information across an enterprise, enables companies to realize internal efficiencies by reducing the cost and complexity of processes that use master data.

I’ve recently found some ways, how MDM can reduce costs:

  • MDM centralizes common information, thus simplifies expensive business processes that rely on point-to-point integrations.
  • Eliminates duplicate, redundant data feeds provided by third-parties.
  • Allows cleanse all data across the enterprise thanks to integration of data from disparate applications into a single system.
  • Centralizes data across the enterprise which helps reduce the amount of redundant data storages and systems. Thus cuts the cost of needless licenses, support and hardware.
  • Configurable off-the-shelf MDM platform replaces antiquated custom applications saving significant development and maintenance costs associated with band-aiding custom solutions.
  • Eliminates reporting errors, expedite audits and improve compliance by
      a) managing a single version of the truth along with a history of all changes, and
      b) delivering this information to any reporting, business intelligence or data warehouse.

However, one should not be overoptimistic about MDM and set his/her hopes on immediate results. There is a significant amount of work to be done to make MDM implementation successful. But when the work is done, and it is done right, MDM looks pretty beneficial. For apart from cost-cutting, it’s able to improve the ability to share, consolidate, and analyze business information quickly, both globally and regionally. And it makes it possible to rapidly assemble new, composite applications (software that combines the elements of a business activity in a coordinated application and user interface) out of accurate master information and reusable business processes.

1 Comment »

  1. Just to let you know, this page looks a little bit weird from my smart phone. Who knows perhaps it’s just my mobile phone. Great post by the way.

    Comment by sprint training — February 2, 2011 @ 3:08 pm

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