Salesforce Certified Data Architecture Practice Test

How does having a clearly defined Master Data Management plan benefit the organization?

1. It reduces operational costs significantly

2. It provides clarity on data ownership and stewardship

3. It requires minimal user intervention for maintenance

4. It guarantees system performance will not decline

The correct answer is: It provides clarity on data ownership and stewardship

Having a clearly defined Master Data Management (MDM) plan significantly benefits the organization by providing clarity on data ownership and stewardship. This clarity is crucial because it establishes who is responsible for managing the master data across different systems and departments. When roles and responsibilities are clearly delineated, it leads to better governance of data, ensuring that it is accurate, consistent, and up-to-date. This organization of data stewardship helps in reducing data silos, minimizes redundancy, and improves data quality, ultimately enhancing decision-making processes. Understanding data ownership also allows for accountability when issues arise, making it easier to trace data discrepancies back to their source and resolve them efficiently. Implementing an MDM plan thereby fosters a culture of responsibility around data, which is foundational for any organization looking to leverage its data as a strategic asset. While reducing operational costs and requiring minimal user intervention are potential benefits of effective MDM, they are not the primary focuses of establishing a structured MDM plan. Similar reasoning applies to guarantees of system performance; a well-defined MDM does not necessarily assure performance levels but focuses more on data integrity and stewardship roles.