Master data management (MDM) gives a few benefits to business, not always so obvious.
Some of them don’t lie on the surface and become evident only when a MD cleansing procedure is complete and the right MDM process is in place. Here are some ways how a proper MDM pays back.
Turning Company Into A Data-Driven One
Smart automation, the Internet of things, artificial intelligence gives an organization a possibility to collect data related to almost any parameter of business, be it the performance of an equipment unit or incredibly detailed sales reports. Big data technologies give a possibility to digest all this data and find insights or hidden or not so evident relationships and correlations to boost profits or reduce costs. The combination of data collection and the processing technologies turn a company into what’s now called “a data-driven entity” in the true sense of this term.
Does a proper MDM system will take your company to this level? No. But such a system is a mandatory condition to be met on the way to this status, and that’s impossible to meet without a rightly implemented cleansing procedure and consolidation of data sets from diverse domains.
Big Gains Without A Lot Of Investments
While tuning MDM takes money and time, it brings so much profit that may pay back multiple times over. Detecting and deleting duplicates can lead to release of staff’s efforts previously spent for collecting, entry and storage of the same data in various company’s units. Eliminating errors of diverse kinds in data sets reduces the risks of non-compliance with regulations and fines associated with it. It also minimizes the possibility of mistakes in customer services and other operations. Normalized data across an organization lets a company not to fall into pitfalls where it can be avoided and thus not to lose money on what’s called in tennis “an unforced error”.
Another typical benefit is a reduction in purchases or inventories. MD cleansing often reveals that organization’s units buy the same products, for example materials, and have their own stocks that, if accumulated, are excessive relative to company’s needs. A subsequent optimization eases the burden on a company’s budget.
Lower Banks And Insurers Commissions
A financial business is always a dance of risks and profits. Well, every business involves these two factors to some degree, of course, but when it comes to banking or insurance, these are their critical points. It’s namely duly calculated possible gains and an accurate forecast of threatening factors that define a balance sheet of a financial organization, from a modest foreign exchange broker to a big investment fund.
Transparency of a company’s assets is what helps the organization get insurance or bank loans at good conditions. On the contrary, a lack of transparency drives loan interest rates and insurance premiums upwards. Not a secret, that if a bank doesn’t have a good understanding of a business it sees a higher risk which eventually transforms into a higher pay for the money borrowed.
Inconsistent data never provides adequate complex information on company’s assets. The question here is just a degree of this inadequacy that strongly correlates to a degree of inconsistency.
So, data cleansed and properly organized for representation can lead to considerably lower expenses for bank and insurance services.
Revealing Critical Points
A CEO knows how his or her business generates incomes and what it spends money for, who the customers are and why they buy the company’s products and services. It may seem that a chief knows everything, first of all, all the critical components of business.
Well, that’s true to only some degree. Like a low tide opens what lies on a seabed, a MD cleansing procedure provides a look at a refined picture of a company’s database, sometimes discovering unexpected findings. For instance, after streamlining and refining data it can become clear that an organization strongly depends on one supplier, and that’s a risk. Or removal of duplicates can show that the most of company’s customers live in one area, be it a town or a state, though it had been previously thought that there was more diversification.
Conclusion
This list of the benefits is not full, of course. We just wanted to highlight some of them to demonstrate the ways MDM that can be tuned by Synopps.com can pay back for your company.
Another important note is that these benefits, though listed separately, in fact “work” together amplifying each other’s power that they bring to business producing synergy and driving the business’s value up.
Additional labor forces that emerged as a result of the centralization of data entry and collection can be directed at revenue-making operations to support profits. Revealing hidden critical points enables it to reduce newly discovered risks to gain a better image in the eyes of investors and bankers. Implementation of data-driven approaches will further contribute to making more
So, the list of possible synergistic “collaborations” goes on. Just the first step is needed.