What outcome does weak master data management lead to?

What outcome does weak master data management lead to?

• A. High levels of data duplication
• B. Increased data processing speed
• C. Enhanced data profiling accuracy
• D. Improved data entry interfaces

Answer: (A)

Weak master data management typically leads to high levels of data duplication. This occurs because inadequate oversight and governance mechanisms fail to keep a consistent, authoritative source of master data. When organizations lack effective master data management practices, different systems may create their own records for the same entities, leading to multiple instances of the same data across the organization. This duplication can manifest in various ways, such as customer records, product information, or supplier details being entered multiple times, often with slight variations, which can cause confusion and inefficiencies in data processing. Moreover, having redundant data complicates data integration processes, may lead to errors in reporting, and diminishes the overall quality and trustworthiness of data. Thus, strong master data management practices are essential to ensure that data remains unique, accurate, and consistent across the organization, ultimately driving better decision-making and operational efficiency.

Weak master data management typically leads to high levels of data duplication. This occurs because inadequate oversight and governance mechanisms fail to keep a consistent, authoritative source of master data. When organizations lack effective master data management practices, different systems may create their own records for the same entities, leading to multiple instances of the same data across the organization. This duplication can manifest in various ways, such as customer records, product information, or supplier details being entered multiple times, often with slight variations, which can cause confusion and inefficiencies in data processing.

Moreover, having redundant data complicates data integration processes, may lead to errors in reporting, and diminishes the overall quality and trustworthiness of data. Thus, strong master data management practices are essential to ensure that data remains unique, accurate, and consistent across the organization, ultimately driving better decision-making and operational efficiency.