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Analysing Business Preparedness for Enterprise Master Data Management

by Ignacio Wyatt (2020-10-19)

MDM is a result-oriented, value driven data initiative that helps businesses unlock the true potential of their accumulated master data. However, most corporations have a severe misconception that the installation of MDM solutions will help them achieve their desired results, without the need for any additional support or backing. One must always remember that premature introduction of advanced technical solutions for achievement of far-fetched business benefits will eventually result in extreme program failure and an overall corporate let-down. Businesses can only experience real value when their key stakeholders are convinced of the fact that, MDM technology is only one part of the solution. In order to extract maximum advantage from an MDM initiative, the company must re-train its staff members and realign its processes accordingly.

When viewed from a practical angle, there are 4 primary hurdles on the way to achieving enterprise-level MDM success. These hurdles are explained, in detail below:

Systematized Corporate Guidelines - This is a technology based problem. This hurdle involves the introduction of master data management software, in order to produce and incorporate business rules that operate within the boundaries of pre-determined data standards. Inconsistency issues are common in business environments. There is a high probability of similar business groups sharing similar business rules, thanks to the similarity in their daily functioning. At such times, it is essential to standardize business rules and terminologies. However, there will be many restrictions on the use of master data, while the standardization process is being implemented, which ultimately slows down daily business functioning.

Repetition in Meaning - This is a knowledge and business ideology management based problem. It involves process simplification for the purpose of repairing semantic inconsistency. If you have any inquiries relating to where and how you can use Data Warehouse, you can call us at our own website. Daily business function and repetition in work processes results in the usage of similar terms on a regular basis, without the presence of appropriate definitions for ease of understanding. Increase in the requirement of appropriate data analysis and reporting has resulted in the shift of data from multiple sources to single data warehouses. However, the lack or absence of pre-determined semantics results in confusion and misunderstanding. These situations are brought to light when businesses provide a consolidated view of primary data domains, during regular master data management programs.

Horizontal Synchronization - This is an issue concerning the involvement of individuals. It involves guaranteeing productive coordination across numerous business lines. A vast majority of business applications record master data, without considering how other organisational areas will utilise the information. They also fail to see the issues until that moment when the situation has blown out of proportion, and the resulting faults are now affecting customer purchase trends and overall business goodwill. In spite of the presence of master data repositories, the focus will continue to remain on the silo, unless improved cross-functional data co-ordination practices are introduced on time. The business will now be able to benefit from the enhanced data quality. However, data quality is a constantly evolving process and the more one explores, the more one can discover.

Harmonized Change - Being a process issue, this hurdle involves monitoring and controlling the need to alter business processes along with master data views. One can use terms such as brand enhancement and customer centric behaviour, to consolidate business functions. However, you need to use both data and business processes at all times to truly experience customer satisfaction. You can educate your staff about the importance of data visibility in sales environments but you must introduce subsequent sales policies for improved revenue numbers.

Real business benefits cannot be experienced by introducing premium MDM solutions or by changing the data without changing the processes, but by being ready to monitor and modify business processes at any time, to get the best out of the available master data.