Monetization of MDM initiatives in an ERP Consolidation or ERP Upgrade landscape
Okay – so your CIO is pushing for a systems consolidation to allow better enterprise visibility, accountability, transparency to realize operational efficiency that drives improved financial performance.
Nice phrases that make everyone in the boardroom nod appreciatively.
So show me the money. Whether the decision to consolidate systems is based on financial reporting compliance, or internal best practice compliance, or an identified need to gain enterprise visibility of people, processes and profit margin there is still an underlying requirement to drive improved financial performance.
Unlike physical consolidations, where everyone sees things – real things, and real people, moving around in our dimensional world, the system consolidation provides the opportunity to make electronic assets just as valuable to the organization. To be clear, the electronic assets represent the real world and the challenge is to leverage the data you have stored in a myriad of systems into useful information that finance, operations and even accounting can use to “move the dial” in financial performance.
Certain master data domains are impacted in a straight forward way. Identifying common customers who may have bought from multiple business units so that you can correctly state net new customer and associated revenue; Identifying common suppliers so that you can negotiate better purchase agreements, are two obvious goals.
The less obvious, but nevertheless quite valuable goals approach the items, products, and parts that go into both the products you sell and the products, items and parts that you buy.
No one really admires the “hoarders” we see on reality (sic) television (and in my opinion if you want reality turn off the TV and sit on your front steps and say hello to your neighbors) and this is a great opportunity to thin out the pantry, or storeroom, yard, or warehouse. In fact, it applies to all consolidations and not just the systems consolidation, but requires some unique capabilities to overcome the perceived challenge of poor data quality.
Quality, like beauty, is in the eyes of the beholder….
Seen any other ways to monetize MDM ? Or know any other master data domains that bring as much impact to the bottom line? Share your views below..
This is Part 1 of a 2 part blog post. Read more on Monetization of MDM initiatives in an ERP Consolidation or ERP Upgrade landscape here….
Latest posts by Arthur Raguette (see all)
- On Demand Webinar:Strategically manage data quality in an ERP rollout - August 27, 2018
- Benefits of Material Master Data Management-Part 5 - March 21, 2018
- Benefits of Material Master Data Management-Part 4 - March 1, 2018