Master Data Management provides sophisticated data consolidation, harmonization, maintenance, and distribution mechanisms. These features combine to help companies significantly reduce data maintenance costs as well as the amount of inconsistent or outdated master data, which in turn minimizes the need for costly error handling.
But Master Data Management goes well beyond simple cost reduction. It also positively impacts your company’s top and bottom line ensuring cross-system data consistency in a way that vastly accelerates business process execution and fosters increased collaboration.
And, by providing homogenized data for use in enterprise-wide business analytics, Master Data Management ultimately improves corporate decision making, increasing your company’s ability to succeed in a highly competitive business environment.
Master Data Strategy Is integral to Supply Chain Visibility, Inventory Management and Strategic Sourcing/Procurement Opportunities.
The data issues include forming a foundation for governance, Infrastructure requirements, Semantic requirements to meet collaborative/competitive pressures.
The Key Issue includes Data tied to Business Value Drivers.
You may like to read: Best Practices for Master Data Management
What is the Project Scope for Master Data Management?
What is the Project Scope for Master Data Management
What is the Data Harmonization / Consolidation Approach?
- Business Partners - Customers: Customers can be consolidated via numbers maintained
- Business Partners - Vendors: Using numbers and unique ID’s
- Product Master : Enhance existing product categorization and then use for consolidation
- Organizational Structure : No automatic harmonization – manual maintenance
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What is Master Data Strategy?
In order to align master data with value chain opportunities an enterprise must instill a repeatable capability to rationalize and harmonize data across multiple IT environments and incorporate industry best practices for data management. It is critical that the organization identify key business drivers and develop a strategy that combines the fundamental business processes with the optimal IT architecture and tools and an organizational model that supports fundamental data integrity.
The root cause of challenges we see with data management are typically a combination of:
- Lack of clear data strategy and processes
- Disparate business process execution across the extended enterprise
- Lack of corporate governance standards
- Additionally, external factors are influencing and creating competitive pressures
- Collaborative Supply Chain
- eBusiness communications
- RFID
Master Data strategy must align internal ERP infrastructure requirements with external requirements for trading partner collaboration and both aligned with realizing business value.
Three Pronged Strategy : It is recommend to incorporate a three pronged approach into an MDM business case to substantiate and enhance business value. In addition, it it imperative that Master Data be an integral component of all major initiatives of any MDM implementation.
- ERP-centric master data requirements
- Data content requirements for trading partner collaboration
- Data Management foundation - prioritized by business value
You may like to read: Top Master Data Management Software
What are the phases in Master Data Strategy?
1. Discovery Phase
- Gather Data Management business situation information
- Define issues, gaps, key implementation objectives & success factors
- Define Data Management scope & focus
- Obtain Executive buy-in
2. Value Case
- Document Business Case
- Determine Data Cleansing, Rationalization, Harmonization, and Enrichment Strategies
- Determine Content Management Strategy
- Determine Industry Standards requirements
3. Implementation
- Data Cleansing & Enrichment
- Data Migration & Conversion
- Data Warehousing & Business Intelligence Approach
- Data Archiving, Storage
- Data Access
- Organizational Model
4. Continuous Improvement
- Define and implement ongoing governance and monitoring
- Define and monitor key data management metrics
- Implement Communication Plan
- Implement User Training
What are the phases in Master Data Strategy?
What are the Business Opportunities using Master Data Strategy?
What are the Business Opportunities using Master Data Strategy
You may like to read: How to Select the Best Master Data Management Software for Your Business
What is Master Data Strategy?
In order to align master data with value chain opportunities an enterprise must instill a repeatable capability to rationalize and harmonize data across multiple IT environments and incorporate industry best practices for data management. It is critical that the organization identify key business drivers and develop a strategy that combines the fundamental business processes with the optimal IT architecture and tools and an organizational model that supports fundamental data integrity.
Why Master Data Strategy is important?
Master Data Strategy is integral to Supply Chain Visibility, Inventory Management and Strategic Sourcing/Procurement Opportunities. The data issues include forming a foundation for governance, Infrastructure requirements, Semantic requirements to meet collaborative/competitive pressures. The Key Issue includes Data tied to Business Value Drivers.
What are the phases in Master Data Strategy?
The phases in Master Data Strategy include Discovery Phase, Value Case, Implementation and Continuous Improvement.
What are the Business Opportunities using Master Data Strategy?
The Business Opportunities using Master Data Strategy are Enterprise-wide Strategic Sourcing, Inventory Management, Enterprise-wide Sales Analysis, Collaborative Engineering/Design and Trade Promotion Management.