What is MDM ? Oracle's enterprise master data management (MDM) suite of products consolidates and maintains complete, accurate, and authoritative master data across the enterprise and distributes this master information to all operational and analytical applications as a shared service.(Defenition by Oracle)
Master data management (MDM) is a comprehensive method of enabling an enterprise to link all of its critical data to one file, called a master file, that provides a common point of reference
Case Study : Consider a big enterprise which is running its business in various domains like retail, consumer goods, telecom and insurance. Now let us consider a customer which is in influence of all the businesses of the enterprise.
Mr. X who is a salaried employee goes to the supermarket to buy some articles. He becomes a customer for this supermarket. Now Mr. X goes and buys a telecom connection from the same brand. He is now customer to the telecom brand of this enterprise. Now Mr. X opts for an insurance plan from the insurance wing of the enterprise.
Now, looking at this situation we can say that Supermarket, telecom and Insurance wings have three different customers up their pocket but looking from a wider 360 degree view the enterprise has only one customer. These 3 wings of the enterprise are not integrated together with a mechanism that can serve the customer even better and reduce the overheads for the enterprise.
To determine the customer better and have business intelligence serving to the best motives for the enterprise it is suggested to have a customer master in place. This would give a holistic view of the customer and help in serving the customer better.
Mr. X would be registered in the central repository or the customer hub. The record would have a reference in insurance, telecom and retail databases. In the customer hub this record will be cleansed, matched and enriched by using data quality tool. A unique Id will be provided to this customer. This would in turn create a golden record which would be published to each of the individual ventures. The customer hub would store the basic details which each venture provides. The customer hub will also store the household details through which they can market their products well.
1. The enterprise will be able to have a 360 degree view of the customer. It can quantify the buying habits, the buying capacity and the savings.
2. This way it will be able to target the customer with the new products the enterprise is launching. Suppose the insurance company is launching a new insurance plan. It can suitably tie up with Retail Company and provide insurance to the customers at their doorstep who purchase commodities through the retail chain.
3. The telecom company can look forward for a promotion campaign wherein they can give free talk time to customers who purchase articles in the retail market. This way both the Retail as well as the Telecom Company can consolidate.
4. With UCM in place, the enterprise can target households and give a promotion offer for Telecom Company wherein they can give connections to the family members at discounted price.
5. With UCM in place the enterprise can look forward and give loyalty points at enterprise level where the customer can enjoy the benefits for their transactions with different businesses of the enterprise which in turn will consolidate the customer base.
6. The reporting at the enterprise can be improved manifolds as the data in the customer hub would be free of duplicates which would add value to the business forecasting.
7. The data in the central hub would be cleansed with correct addresses stored for each of the customers.
8. It can also prevent fraudulency. If a Telecom customer defaults his payment he can be tracked and he can be penalized through a retail store or the insurance he has taken.
9. With the reporting in place through the Customer hub, the enterprise can target the customers during times when they spend leanly by giving them attractive discounts.
10. With a holistic data in place which is free from duplicates and is cleansed makes a platform for the enterprise to venture into different domains. They have a customer base with which they can target their customers and grow their business.
There is endless scope for the benefits of the enterprises going in for Master Data Management.
Siebel UCM UNIVERSAL CUSTOMER MASTER