Business processes and MDM drivers (part five)

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Product Director, Master Data Governance

Business processes that will be improved as a result of MDM vary by industry, company, program and even the phase of the MDM initiative. Still, there are common areas and processes that are typically improved by MDM.

The most common beneficiaries of MDM (listed in the table below) can help an MDM team charged with defining the business case justify the investment.

Areas that benefit from MDM and MDM drivers

Business area


Business development 

Sales & marketing

  • Cross-sell/up-sell to existing customers
  • Effectiveness of marketing campaigns
  • Integration of MDM with big data and analytics applications to better understand customer sentiment and propensity to buy
  • Recurring revenue from existing customers
  • Retain customers by reducing attrition rates
  • Recognize fraudulent activities  

Customer service

  • Account setup time
  • Customer service time
  • Customer intelligence and level of service
  • Consolidated statements

Risk, privacy, compliance
& control

  • Risk management
  • Accurate books and records
  • Compliance with AML and KYC regulations
  • Compliance with corporate standards and policies
  • Regulatory fines and penalties


  • Account setup costs
  • Customer acquisition costs
  • Administrative overhead of redundant data entry
  • Operation costs: duplication, redundancies, transaction errors, data processing errors and exceptions
  • Failed initiatives, including big data and analytics
  • Reduces costs of planned initiatives due to MDM
  • Better realization of benefits from M&A and cost reduction

Leveraging this table as a starting point, the business case definition team can prioritize the drivers as needed and adjust the list of drivers to better reflect the business context of the MDM program in their organization.

During economic downturns, we see more focus on the operational efficiency, but when the economy grows quickly, MDM initiatives tend to focus more on enabling new business opportunities and processes.

Are there other benefits you have observed? 

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