Monetizing MDM part two – Consolidations

Consolidations – either physical or IT Systems – offer a another “Big Way” to monetize Master Data Management.


Physical consolidations – reducing the number of operating locations into fewer, often more streamlined operations, is often done with cost reduction as the primary driver.


Similar Operations consolidation is done to leveraging common equipment, optimize productivity of running lines, optimizing skilled personnel.  An often overlooked aspect is the reduction in spares required for equipment.  MDM for MRO (Maintenance, Repair and Operations) equipment is a key cost reduction strategy.  Identifying identical, or near-identical (form/fit/function) components that can be repurposed from a decommissioned facility to the remaining facility is direct cost avoidance.  A pleasant surprise achieved through the MDM effort is the identification of optimal supply sources for this MRO.  It could be that one of the facilities had a lower price for the same items from a different distributor or had preexisting contract terms that can be leveraged for the remaining facility.


Again – this kind of monetization drives lower cost for same items purchased with makes the CFO monetization very black and white.


System Consolidations – Migrating from multiple ERP/MRP/EAMs into fewer or even one platform


System Consolidations, often done in concert with an ERP upgrade represent a huge opportunity for MDM professionals to get the job done – and although monetization may not seem as important in light of large budgets associated with an ERP consolidation or upgrade the hard-currency value is still something that other stakeholders besides the CFO are going to be very interested in.

More on that later…

This is Part 2 of a 2 part blog post. Read more on Monetizing in acquisitive scenarios


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Arthur Raguette

Arthur Raguette

Arthur Raguette is the Executive Vice President at Verdantis. Arthur is very passionate about the application of innovative technologies to solve real-world business problems with a strong emphasis on large enterprise solutions. He has more than a decade of experience of working with Software for Master Data Management and Data Governance for multiple domains and across industries. Arthur’s prior technology passions included high performance B2B middleware and hybridized SaaS applications for HR, Employee and Education related domains.

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