Master Data Management Misconceptions Explained

Master data management software understands the relation between data within the systems and recognizes that certain attributes (like the cost of manufacturing and lead times, for instance) are best kept locally. By cross-referencing the attributes clean and verify the data to give an accurate and complete view of the suppliers, customers, and products. In creating these "golden documents," the management team, as well as users and customers, can quickly connect and communicate with one, dependable and trustworthy source of information for the business.

The most advanced master-data management systems provide high-quality data that will give you an edge. The higher the quality of data that is found in gold records, the more straightforward it will be to:

  • Improve transparency and reduce the risk.
  • Enhance the performance of your business.
  • Customer retention, acquisition, and upsell them.
  • Trends, forecast demand and market volatility more easily.
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While master data management tools are extremely effective, but many executives do not realize the full power of these solutions.They've not taken the time to understand the details about the highly specialized technology platforms that are available in the present. Three common myths are:

1

Misconception
Our ERP system provides standard, consistent data across our entire network.

ERP tools are not the one-stop-all and be-all solution for managing data, especially in the complex aftermarket service parts business.They're not the primary source of information and the amount and complexity of data from the aftermarket is usually too much for ERP systems to manage.A huge investment is required to connect dealers and suppliers to an ERP.It could take years to establish an effective master data management system with only an ERP system. Gartner estimates an average of nine of 10 ERP projects will be in failure in 2018, with the failure of integration being one of the primary reasons.

Enterprises that use ERP to manage master data do not get a full overview of their customers as well as their suppliers, products, and customers.The master data management process is a complex process and effective implementation requires expertise that is able to take into consideration the data domain and industry, as well as usage case, organization, and the implementation method.

2

Misconception
The solution we have is acceptable. Master Data Management solution.

A lot of companies have some degree that manages master data, but they do not make use of all the capabilities of the system.Long implementation times in the past are usually the reason. They required a lot of time and exhausted investment resources before all functions were completed.A quick review of data from a company's database could expose the ramifications, for example, large quantities of non-classified items and postal codes or an enormous number of error-prone records from the various systems.

New tools and strategies provide better taxonomy for data, more seamless integration with third-party sources of data, and easy updating. Furthermore, advanced analytics tools now allow you to keep an eye on your MDM hub and generate customized reports that are predefined with only two clicks.

3

Misconception
It is possible to navigate mergers and acquisitions quickly and without MDM.

Acquisitions and mergers in the sector create significant difficulties for IT department.Most of the time, the systems employed in the new business are critical to the mission, or superior to the parent's solution. This means that IT should combine data and communications while also creating and implementing uniform software throughout the company.

Enterprises that use ERP to manage master data do not get a full overview of their customers as well as their suppliers, products, and customers.The master data management process is a complex process and effective implementation requires expertise that is able to take into consideration the data domain and industry, as well as usage case, organization, and the implementation method.

A robust master data management system will speed up the integration of new companies and determine IT improvement areas to focus on.Because a robust MDM platform can communicate with disparate ERP as well as CRM, supplier, and supply chain systems, it is able to make the necessary connections during the merger process and assist the parent company:

  • Increase visibility for all customers, suppliers and even items
  • Consolidate and cross-reference the data, for example, prices from suppliers, to pinpoint potential savings
  • Get rid of inefficient procedures and coordinate the customer experience
  • Utilize advanced analytics to pinpoint ways to save money and earn revenue

In the present competitive world, the master data management process is crucial to have a broad and sweeping impact on the business.It is important for the leaders in the service parts business to comprehend their data and how it can impact the efficiency of their business, customer experience in addition to overall profit.