MASTER DATAKEY TO SUCCESS
MASTER DATA MANAGEMENT (MDM) SOFTWARE & SOLUTIONS
Providing Transparency and Valid Data Using Master Data Management.
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 in this important 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 task frequently put on the back burner. However, this exact behaviour is extremely cost-intensive and strains the already stressed company twofold in this difficult time: Avoiding errors costs EUR 1, correcting costs EUR 10 and the consequences of actual damage cost EUR 100!
Reasons for master data management:
The "1-10-100 pyramid"
Avoiding errors costs EUR 1, correcting costs EUR 10 and the consequences of actual damage cost EUR 100! Against the background of these figures, it seems unnecessary to describe the benefits in more detail.
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.
Avoiding errors in complex processes
The direct effects of erroneous master data, e.g. wrong deliveries of goods due to faulty addresses or double orders of materials due to inhomogeneous material master data, can be avoided with efficient master data management.
Generating information from data
IBM conducted a survey among CIOs (The MDM Advantage: IBM Corporation 2014): They consider MDM the best way to generate information from data. Cross-division evaluations only become possible based on harmonised master data.
Master Data Management Solutions:
A home for all data. Centralised and harmonised.
Apart from an adequate organisational and operational structure, it is inevitable to establish a common data platform to harmonise different systems:
- Central database (“data hub”) for all company-relevant master data
- Harmonisation of master data across heterogeneous and/or decentralised systems
- Optimal integration in the existing IT environment
- Transparent processes and rules for the decentralised, distributed maintenance of master data (data governance)
- Easy expandability of the data model as required
- Integrated basic reporting engine
- Enterprise integration technology for data integration