The Importance of Master Data

Does this sound familiar? You’re not alone. Master Data is frequently undervalued and overlooked as a business driver. However, it plays a crucial role in our operations. It serves as a strategic tool to help us:

• Understand our processes
• Measure performance
• Guide operations
• Manage resources more effectively

To fully leverage its benefits, we must integrate Master Data Management (MDM) into our business.

Identifying Master Data Needs

In our workplace, we have specific Master Data requirements. Our business may be:

• The source of the Master Data we need
• The consumer of the data we provide

As Master Data is distributed across various systems, unifying it is essential. This creates a single validated source of data, standardising formats and fields for each dataset. It also consolidates all sources into one repository. Various software solutions can assist in establishing an effective MDM system. Once set up, the data can be shared across software systems, ensuring accurate information processing.

Consolidating Your Master Data

You might wonder how to get an overview of all your Master Data and consolidate it into one repository. While it requires effort to establish the data structure and MDM, understanding how everything fits together will significantly enhance your business efficiency, leading to substantial operational cost savings. Poor data, such as incorrect delivery addresses or missing product information, can result in inefficiencies and lost opportunities, ultimately impacting customer service.

Approaching Master Data Management

So, how should you approach Master Data Management? I believe it’s all about simplicity.

In a business, there are two primary sources of Master Data:

• The various departments
• The software systems in use

Each department has specific data needs. For instance:

• The accounts department requires customer account numbers to manage invoices and payments.
• They also need client addresses, which may now include email addresses depending on local regulations.
• The sales department needs addresses to send quotes or information, often requiring different contact names.

In this context, the address data becomes the shared link between accounts and sales.

Gathering Essential Data

Now we gather:

• Account numbers
• Addresses (including street names, house numbers, ZIP codes, towns, provinces/states)
• Various delivery addresses
• Contact persons’ email addresses
• Phone numbers
• Birthdays

At this stage, it’s advisable to enlist someone to assist in setting up a database structure for this data if you haven’t done so before.

Let’s keep it simple, as promised.