Master Data Management (MDM) is a crucial aspect of a company’s information management that directly impacts data utilization and process efficiency. Master data permeates nearly all organizational processes, including customer information, product details, and financial data. As companies develop or plan their data platforms, it is vital that the operational systems’ data processes are in impeccable order.
Although financial processes are usually well-managed with reliable data, challenges in the background processes of master data often relate to outdated systems and practices that have evolved over time. Additionally, accountability issues in data maintenance can lead to uncertainties, undermining the timeliness and reliability of information.
The Benefits of Master Data Auditing
Master data auditing is an effective way to identify data management issues and needs objectively. It promotes collaboration among different parties and increases trust in master data management teams. Auditing focuses not only on reporting technical deficiencies but more importantly on processing the results, planning development measures, and creating realistic plans to address the most critical problems. Thus, auditing is a valuable tool for improving data quality and developing processes.
The 5 Key Lessons in Master Data Development
- The Value of Auditing: Auditing master data provides a clear picture of the current state and quality of data, which is the first step towards improvements.
- Visualization of CRUD Processes: Creating process descriptions helps make the master data management processes visible and promotes collaboration between different business areas.
- Identification of Use Cases: Understanding the key use cases of master data across different business functions allows MDM teams to allocate resources more effectively.
- The Limitations of Technology: Acquiring new technology alone does not solve master data issues. The fundamentals of process and data management must be addressed first.
- Consideration of Digital Services: Developing digital services at the customer and supplier interfaces is important, as data must be correct and up-to-date across all touchpoints.
At Data Design, we have packaged our experts experience into ready-made data strategy and data governance accelerators, which are easy to implement for different types of organizations. We have seen both successful and not so successful data programs run by our clients. That’s why we know that success is based on use case oriented data governance implementation.