At a time when trends in digitization are following each other at a rapid pace, it is important that as an organization you can keep up with this. But digitization seems to be a trend from a few years ago. By now we no longer fax, we are fully digital, so what else can you do? The answer is simple: Perfecting these digital processes. With perfecting, you can make your work more efficient, increase customer satisfaction and save costs. This process is called Digital Operational Excellence (DoX). Because this process relies on data from your business, Master Data Management plays an essential role in DoX. But there are more reasons why Master Data Management is critical to success.
1. Data as a starting point
As a company, you have a lot of data. Customer data, product data and supplier information are some examples. Data is important in a digital world, after all, you want to make decisions based on what the data tells you because that way you can be sure something is working. The downside of data in a digital world is that all the data is often stored everywhere and nowhere and gets "polluted" quickly. Some of the data is probably in a CRM, Excel file or in other systems you use as a business.
If your data is scattered across so many places and doesn't always match up with each other, pursuing Digital Operational Excellence is almost impossible to achieve. Compare it to a remodel: All the stuff for the remodel is in all sorts of different places, and you don't know what stuff you need to make the remodel go smoothly.
2. Master Data Management as a contractor
So if you want to start pursuing DoX, you have to have the data in order. To use again the comparison of remodeling: Usually for a major remodel, you hire a contractor because it's a complex and time-consuming job. For DoX, Master Data Management (MDM) is the contractor.
MDM is the process of creating, maintaining and sharing accurate and consistent data across all systems and processes within an organization. This includes managing important business data such as customer data, product data, supplier data and financial data. As MDM does its job, you can start/work on DoX.
Want to know more about linking your databases together? Also read: Whitepaper connecting databases: Get your data moving
3. One central place for all data
MDM is also important for Digital Operational Excellence because it provides the foundation for efficient and effective business operations. It ensures that all business data is stored and managed in one central location, minimizing inconsistencies and errors and enabling better decisions based on up-to-date and reliable data.
One of the greatest benefits of MDM is that it creates a common language across the organization. By implementing a consistent MDM strategy, organizations can ensure that every department and employee uses and understands the same data. This is also known as an SSOT, a Single Source of Truth. This can help improve collaboration between departments and accelerate decision-making.
4. High quality and integrity
Finally, MDM also helps ensure data integrity and maximize its quality. This is critical if you depend on data every day to get the right orders through, for example, or if you need accurate data for invoicing, for example. Without good data, a company cannot effectively provide customer service. Similarly, your company can't efficiently produce or sell products if you don't have access to accurate product data. All of these are essential to ensuring DoX is good.
MDM is the crucial step for DoX
In conclusion, Master Data Management is a critical component of Digital Operational Excellence. It creates a common language for the organization and ensures consistent and accurate data, leading to better decisions and more efficient processes. If you haven't taken this step yet, we recommend you start taking a closer look at your MDM.
Know where to start?
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