Data complexity and issues

Als je merkt dat je organisatie te maken heeft met complexe en verspreide gegevens, inconsistenties en fouten in de data, kan dit een teken zijn dat het tijd is voor MDM. MDM kan helpen om een enkele, betrouwbare bron van waarheid te creëren.

If you notice that your organization is dealing with complex and dispersed data, inconsistencies, and errors, it might be a sign that it’s time for MDM. MDM can help create a single, reliable source of truth.

Dispersed Data:

• Scenario: A company has multiple departments, each maintaining its own customer information. For example, sales keeps contact details, while customer service maintains other details. This leads to fragmented customer information across different systems.
• Problem: When different departments have different versions of customer data, inconsistencies arise. For example, the customer’s name might be spelled differently in the sales department than in the customer service department.
• MDM Solution: MDM would help by creating a central hub where all customer information is managed. This hub would serve as the single source of truth, reducing inconsistencies and providing more accurate, uniform data for all departments.

Data Inconsistencies:

• Scenario: A company uses different systems to track product information. In one system, the color of a product is updated, but in another system, the old color remains.
• Problem: When inconsistent product information is used, it can lead to incorrect decision-making and lower customer satisfaction.
• MDM Solution: MDM would enable consistent recording of product information in one integrated system. Changes in product information would be automatically updated in the central data source, resulting in accurate and consistent information across all business applications.

Data Errors:

• Scenario: A company collects customer information through multiple channels, such as online forms, in-store, and phone calls. There are inconsistencies and errors in how data is entered.
• Problem: Errors in customer information, such as misspelled names or incorrect address information, can lead to delivery issues, communication problems, and customer loss.
• MDM Solution: MDM would help establish consistent data entry rules and validations, improving the accuracy of customer data. This allows the organization to rely on reliable customer information for operational processes.

Organizational Growth

As the size and complexity of the organization increase, so does the need for effective data management. MDM can help maintain data consistency, especially if there are multiple departments or business units.

Increase in Departments and Business Units:

• Scenario: A company grows and opens new branches or departments. Each department has its own systems for managing product data and other relevant information.
• Problem: As the number of departments grows, a variety of systems and processes for data management emerge. This can lead to inconsistencies, duplication of work, and difficulties in creating a holistic view of customers and business activities.
• MDM Solution: MDM can act as a central coordinator for all data, regardless of the number of departments. It enables a standardized approach to data management, ensuring all departments have access to and work with uniform and consistent information.

Complexity of Business Processes:

• Scenario: As the organization grows, business processes become more complex, and there are more data exchanges between departments and systems.
• Problem: Increased complexity can lead to difficulties in synchronizing data between different systems. This can result in errors, delays, and a lack of coordination between departments.
• MDM Solution: MDM can ensure seamless integration of data between different business units and systems. It provides a centralized hub where data is harmonized and synchronized, reducing the complexity of data exchange.

Need for Uniform Reporting:

• Scenario: As the organization grows, the demand for consistent and uniform reporting increases. Different departments may use different definitions and sources for their reports.
• Problem: Without a uniform approach to data, it can be difficult to generate reliable reports that provide an accurate picture of the organization’s performance.
• MDM Solution: MDM can contribute to the creation of consistent definitions and sources for reporting. This ensures that all reports are based on the same reliable data, giving decision-makers a clear and holistic view of the organization.

In the case of organizational growth, MDM provides a structure to address the increase in data complexity, allowing organizations to better manage the challenges arising from the diversity of departments, systems, and business processes. It enables organizations to maintain data consistency and benefit from standardized data management, regardless of their size or complexity.

Other Possible Reasons to Start with MDM

• IT Infrastructure: Ensure your IT infrastructure is ready for MDM implementation. For example, if you are upgrading systems or implementing new software, this can be a good time to consider MDM. Organizations face challenges during system upgrades, new software implementations, and cloud migrations. During system upgrades, it is crucial to prevent data loss and inconsistencies. MDM can play an integral role by providing a structured approach for a seamless data transition, ensuring continuity of data integrity. During new software implementations, MDM is important to create a solid foundation of high-quality data, enhancing the effectiveness of the new solution. During cloud migration, MDM acts as a bridge between on-premises systems and the cloud, maintaining data consistency. In these situations, MDM serves as a critical component, preparing organizations for changes and reducing risks during transition periods.
• Business Strategy: If Master Data Management aligns with broader business strategies and objectives, it can be a strong motivator to start. For example, if improving data quality and decision-making processes are priorities.
• Data Regulations: Organizations that need to comply with strict data regulations, such as GDPR, can face significant challenges in transparently, securely, and lawfully processing and protecting personal data. Fragmented data and inconsistent records increase the risk of violations and fines. MDM provides a structured solution to these challenges. It creates a central source of truth for sensitive data, such as personal data, ensuring consistency and accuracy. MDM facilitates the identification and classification of personal data, manages access rights, and ensures traceability throughout the data lifecycle. By ensuring data integrity, MDM minimizes the risks of unauthorized access and data breaches, contributing to compliance with data regulation security requirements.

In essence, MDM serves as a valuable tool not only to comply with laws and regulations but also to build trust with customers and stakeholders by ensuring the protection of personal data.

Conclusion: When Should You Consider MDM?

Starting with Master Data Management (MDM) is a strategic decision that depends on various factors. Here are the key considerations:

• Data Complexity and Issues:
  1. If your organization is dealing with fragmented data, inconsistencies, and errors, MDM is relevant.
  2. MDM creates a central source of truth, reduces inconsistencies, and ensures accurate, uniform data.
• Organizational Growth:
  1. As the size and complexity of the organization increase, so does the need for effective data management.
  2. MDM maintains data consistency, especially with multiple departments or business units.
• Other Possible Reasons:
  1. IT Infrastructure: Consider MDM during system upgrades or new software implementations for seamless data transition.
  2. Business Strategy: MDM can be a strong motivator if it aligns with broader business objectives.
  3. Data Regulations: MDM provides a structured approach to comply with strict regulations, such as GDPR.

In essence, MDM serves as a valuable tool to address data management challenges while ensuring compliance with laws and regulations. It builds trust by ensuring the protection of personal data, preparing organizations for growth, technological changes, and regulatory compliance.

Ready to start with MDM (Master Data Management)? Contact us for a demo!