Money making or Money breaking?
Every company is in the business for money making. Is it that simple, well it is. Without funding or money making there is no existence possible on the long term. I agree that there are a lot of business around the globe that say that they are not focused on money making but we all know that in the end even they have to generate revenue to survive. How can we relate this to Master Data? I am going to try to make the explanation as clear as possible.
How is Master Data a money maker?
Accurate master data is a real money maker. Your data is now your companies beating hart. This beating hart gives the opportunity to have insight on your clients and their needs. It gives you the possibility to report the right aspects of the business and make decisions. Also the chance of fraud is minimized because you know that your data is accurate and the finance departments can check upon phantom bills and reduce the risk of paying bills that shouldn’t get payed by you company. What about efficiency, that is a real money makes as well. You can only achieve maximum accuracy in master data if your process is in place. This process is designed to work in the most efficient ways and can even be enriched with smart technology or algorithms. This provides your employees with time to spend on more important matters.
How is Master Data a money breaker?
Master Data on itself can be a money breaker just by being inaccurate or faulty. All the opposites as described above can be money breakers. Making wrong decisions based on data that was assumed to be right can be of high cost.
Imagine you make the decision to open up a store in a region that was supposed a wealthy area full of opportunities but your master data was inaccurate and therefore it was not told that the wealth depended only on the factor of tourism. Because of this your dependency is too high and your money wasted which could have been invested elsewhere. Simple but real example.
Think about recovery and maintenance of data when the first time wasn’t right with the entry of data, it costs huge amounts of time to find the mistakes and correct them. At last can we talk about the systems you have to buy to control master data. Are they doing what they are supposed to be doing? Did you make the right selections.
As you can see master data can be both. The line between money making and money breaking is thin. Beware of this line and try to make money with master data.