Does Master Data Management Help In Effective Data Monetization?
Cost cutting is crucial to any business, as most business activities are profit-oriented, and thus, revolve around sticking to tight budgets and so on. So, why shell out money for master data management and its diverse set of software tools and solutions, when one can easily stick to the old 'tried and tested formula'? This is because, effective MDM solutions guarantee results in the form of money or money's worth, which is their ultimate driving factor. MDM projects, though challenging, are effective in equipping the business with operational efficiencies, improved reporting and analysis, actionable data quality, etc. This may not exactly fit into the monetary section as a whole, but it does give CFOs, a rough idea of the money that can be made or saved.
Thus, one can visualize the total business potential that can be unlocked by a well planned and executed data monetization project. However, a few important queries that arise before the initiation of any such project include questions such as- how to go about monetizing the data into actual currency, how big or small the monetization strategy must be, will the investment guarantee the results expected by the business and how to test the monetization ideas. One must remember that master data management is not just a process that converts raw or aggregate data into something useful and valuable; it is also an asset that aids in effective decision making. This is exactly where revolutionary data management solutions come into play. Investing in these solutions makes for a great reservoir of monetary value, for years to come.
Acquisitions are considered to be the big playgrounds of data monetization. In such an environment, it is essential to have a pure and streamlined set of data, which can be achieved only through MDM including master data quality improvement practices. One knows that in every step of an acquisition, there is a promise made to the shareholders, which guarantees economies of scale to them. It also guarantees increased sales, improved margins, shareholder value and reduced costs. These factors are significantly impacted by the quality and efficiency of the accumulated master data. System consolidations is also another instance of large monetization. It helps in the identification of duplicate inventory across the companies. Moreover, effective MDM can also help one company calculate the quality of inventory in another company, and see if it is available and can be put to use.
A proven master data management software can provide the best increase in sales. This is a result of the enhanced customer service that is now in motion. Moreover, the accurate alignment of the subsidiary chart of accounts and ledger entries can reduce the costs required to create compliance reports. Though these figures are usually decisive only in the long run, they are very important, indeed.
