Cost savings and increased revenue thanks to your MDM strategy

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In this post we discuss the benefits of a master data management (MDM) strategy focused on cost savings and increased revenue.
A master data management (MDM) strategy across any functional area of ​​the business often yields numerous benefits. On the other hand, poor data, fragmented across silos, impacts costs and revenue. In other words, it results in significant costs and constant loss of revenue opportunities .

The lack of reliable data, in fact, causes problems of many different kinds that are not always obvious. Some are easy-to-identify costs, while others take the form of hidden costs that translate into moj database unnecessary increases in expenses and loss of income.







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The keys to an MDM project





In practice, inconsistent or duplicate master data leads to critical business issues such as:

Billing errors.
Operational planning errors.
Financial planning mistakes.
Administration errors.
Marketing mistakes.
Errors in the supply chain.
Errors in printing management.
Unreliable reports
Customer dissatisfaction and loss.
Waste of time for managers.

Billing errors, for example, can lead to bad debts being written off or, say, lower cash flow due to late payments. Similarly, reports or dashboards that do not provide reliable information lead to risky decision-making.

The sum of problems caused by poor data quality therefore leads to problems with costs and revenues: an increase in costs and, on the other hand, in the loss of opportunities to increase profits. The result, in short, is a loss of competitiveness that could be avoided with an appropriate MDM program .



Master Data Management: Creating a Master Data Strategy to Drive Business Outcomes



Objective of an MDM: improve costs and revenues
Avoiding these problems, in fact, means taking action. Firstly, by synchronising IT and business so that they are involved in the MDM project. Only then will it be possible to identify the specific data quality problems that the organisation has in its various systems.

With their involvement, it will be possible to detect hidden opportunities and problems as well as to apply an objective methodology that includes all users, one of the great challenges of an MDM program. The reward, however, is well worth it: ensuring a technological strategy that is consistent with business needs.