In today’s business world, data is a valuable corporate asset which, when managed properly, can support a company’s ability to achieve strategic goals and financial results. Executives can improve their ability to quickly access accurate data by adopting MDM best practices. MDM typically involves a series of consistent processes and policies with proper governance and oversight. Master Data Management is focused around several key and actionable business segments including, but not limited to, the material, customer, supplier, and employee master.
Strong Master Data Management governance can drive greater consistency and accuracy of data, which can be an asset in driving world class operations, providing the ability to use data as a competitive advantage, and reducing unnecessary waste. In contrast, without proper governance, there is limited accountability and ownership of data, which creates compliance risk as well higher expenses and lost revenue.
A lack of sound master data processes and procedures can cause major issues that diminish the value of data and systems. Addressing these issues by implementing MDM ownership and governance can help resolve many of these concerns. Therefore, effective management of master data is crucial as they are the means of attaining other strategic and operational objectives.
Source: http://spendmatters.com/2013/05/09/the-importance-of-master-data/