Data governance and Master Data Management (MDM) are crucial elements to ensure data quality within an organization. Implementing data governance policies and procedures ensures that data is appropriately managed and meets the regulatory requirements set by authorities.
Master Data Management is responsible for improving data consistency and accuracy and ensuring that data becomes an asset to an organization. Profisee’s MDM software is one good example of such a tool.
We will discuss the relationship between Data Governance and Master Data Management and how these entities address data quality problems and manage data more effectively.
Data Governance
Data governance is the overall management of data availability, usability, security, and the completeness of data values. Data governance ensures that data is consistent, accurate, and easy to access.
Data governance helps organizations ensure that all data is handled appropriately, which can prevent errors that may arise from improper data handling. It also helps ensure compliance with regulatory requirements.
Regulations such as the General Data Protection Regulation (GDPR) introduced by the European Union impose stringent data privacy requirements, such as the right to erasure, access, and portability. Data Governance plays a significant role in ensuring these requirements are being met.
Master Data Management
Master Data Management is a discipline focused on the creation and maintenance of master data being used by different departments of an organization. Master Data is a single reference point for all data used by departments and organization-wide processes.
The main objective of a master data management strategy is to provide a single source of truth for all data that different stakeholders in the organization can use. This helps to prevent data inconsistencies and redundancies that can occur when departments use different data sources.
The Relationship Between Data Governance And Master Data Management
Organizations need to ensure that data is managed, standardized, and consistent to achieve high-quality data. Data governance and Master Data Management collaborate to ensure data is managed effectively and meets all regulatory requirements.
Data governance creates rules and policies for different departments regarding data access and use. Master Data Management maintains the standardization and consistency of data according to those rules and policies set by governance.
This relationship between data governance and Master Data Management leads to more informed and efficient decisions within the organization.
Implementing Data Governance And Master Data Management
Implementing data governance policies and procedures can ensure that data is consistent, accurate, and high-quality. It should also be noted that Master Data Management implements data governance policies and procedures.
By implementing data governance policies and procedures, the organization can create a roadmap for data governance standardization, increasing overall data quality. The MDM system ensures each record is consistent and up-to-date, reflecting all recent changes and updates.
As a result, the organization’s decision-makers may improve the efficiency and precision of decision-making by utilizing reliable and informed data.
Effective Data Governance
Effective data governance requires understanding the organization’s data assets, including master data. The benefits of MDM practices include data governance policies, procedures, and standards for managing master data effectively.
This ensures the master data is accurate, consistent, and used effectively throughout the organization. MDM benefits from data governance by having a clear framework for managing data quality and consistency.
Final Thoughts
To conclude, the relationship between data governance and Master Data Management can be seen as two complementary parts that work together to ensure data is managed efficiently according to regulatory requirements and is a valuable asset to the organization.
By implementing data governance policies and procedures and Master Data Management, organizations can achieve standardized and consistent data that maintains high quality. This helps to prevent errors and reduces the risk of missed opportunities.
When the process is implemented correctly, the relationship between data governance and Master Data Management leads to a better, more informed decision-making process and overall better business performance, ensuring that data is committed to creating value.