DATA QUALITYGOOD DATA IS GOLD
Data - Valuable if Complete
AND Allowed to be Used.
Data, in particular customer master data and material master data represent a high intangible value. The better they can be used and the better they are maintained, the higher their value. Many companies recognise the importance of master data for the efficiency of their business processes and activities but too few are ready to invest money or resources in this area.
According to our experience, the issue of master data is often only addressed if locations are merged, new systems introduced or there is a significant problem with customer or potential customer information impeding new business. The preventive treatment of the underlying problems is a thankless task frequently put on the back burner. However, this exact behaviour is extremely cost-intensive and strains the already stressed company twofold.
Legislature will soon confront us with the issue of “rightful use” of customer data and tightened sanctions (as of May 2018). From then on, recipients of company messages can file informal complaints and authorities must pursue them and impose sanctions.
This could be expensive… and then at the latest companies will be faced with the question: Are the available data correct and are we allowed to use them?
5 Reasons for Improving Data Quality:
Avoiding errors and providing transparency in complex processes
The direct effects of erroneous master data can be avoided through effective master data management. Examples for this are wrong deliveries of goods due to faulty addresses or double orders of materials due to inhomogeneous material master data. Complex processes become more transparent and thus less error-prone.
Generating information from data
Sustainably clean master data form the basis for efficient reporting and analyses–in a nutshell: for your decision-making quality. According to an IBM study (The MDM Advantage: IBM Corporation 2014), CIOs consider MDM the best way to generate information from data. Cross-division evaluations only become possible based on harmonised master data.
Cost saving and economic purpose
The calculated total costs of bad data quality in the US were $ 3.1 trillion in 2010. According to an estimate by the US Insurance Data Management Association, these costs made up 15 to 20 % of operating income on a corporate level.
Promoting your own professionalism
Master data management is a fundamental driver for the professionalization of companies. Entities, data and information which is continuously clean across applications ensures that companies overcome the challenges in the fields of heterogeneity, growth and process efficiency.
The new European General Data Protection Regulation (GDPR)
As of May 2018, it will become much easier for recipients of information to file complaints against companies if they e.g. do not want to receive emails from them. Every company should go ahead and consider the following: Are our data correct and are we allowed to use them?