Why MDM?

Because it is used by multiple applications, an error in master data can cause errors in all the applications that use it. For example, an incorrect address in the customer master might mean orders, bills, and marketing literature are all sent to the wrong address. Similarly, an incorrect price on an item master can be a marketing disaster, and an incorrect account number in an Account Master can lead to huge fines.

 Even if the master data has no errors, few organizations have just one set of master data. Many companies grow through mergers and acquisitions. Each company you acquire comes with its own customer master, item master, and so forth.

This would not be bad if you could just Union the new master data with your current master data, but unless the company you acquire is in a completely different business in a faraway country, there's a very good chance that some customers and products will appear in both sets of master data—usually, with different formats and different database keys.

Merging master lists together can be very difficult. The same customer may have different names, customer numbers, addresses, and phone numbers in different databases. For example, William Smith might appear as Bill Smith, Wm. Smith, and William Smithe. Normal database joins and searches will not be able to resolve these differences. A very sophisticated tool that understands nicknames, alternate spellings, and typing errors will be required. The tool will probably also have to recognize that different name variations can be resolved, if they all live at the same address or have the same phone number.

To create Master Data, there are many positive benefits to from a common master list:

  • A single, consolidated bill saves money and improves customer satisfaction.
  • Sending the same marketing literature to a customer from multiple customers      lists wastes money and irritates the customer.
  • Before you turn a customer account over to a collection agency, it would be good to know if they owe other parts of your company money or, more importantly, that they are another division's biggest customer.
  • Stocking the same item under different part numbers is not only a waste of money and shelf space, but can potentially lead to artificial shortages.

For all these reasons, maintaining a high-quality, consistent set of master data for your organization is rapidly becoming a necessity. The systems and processes required to maintain this data are known as Master Data Management.

 

To get information on how Avenues can help you in CDI-MDM, please Ccontact to: info@avenuesinc.com
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