Business software contains an enormous amount of data: about customers, suppliers, items, prices, contracts and much more. This information is constantly changing - new agreements are being recorded, data adjusted and notes added daily. As a result, not only the amount of information grows, but also the potential for errors and inefficiencies. That's why getting a grip on your master data essential.
What is master data (master data)?
Master Data, or master data, are the basic data in your system that is relatively stable but determines your processes. Consider:
- customer and supplier data
- article information and price lists
- units, item groups, payment terms
- serial numbers and locations
Unlike transactional data (such as work orders or invoices), master data rarely changes, but it does form the foundation of your business operations. An error in this data can lead to miscommunication, faulty deliveries or lost sales. You understand: those who don't control their master data lose control of their business.
How do you lose control of your master data?
Without a proper approach, master data can become unreliable, fragmented or obsolete. This is often due to:
- Outdated systems without a solid data structure or validation rules.
- Manual processes such as loose Excel sheets or data in employees' heads.
- Multiple software packages in which data are maintained separately.
- Lack of data structure: inconsistencies, missing fields or incorrect construction.
- No clear procedures: everyone enters data differently or does not know who is responsible for what.
Once this kind of situation accumulates, managing master data becomes a risk rather than a mainstay.
7 tips to take control of your master data
Perfect control is not an illusion. These 7 tips will get you a long way:
1. Manage data centrally
Use a single system for entering and managing your master data. That way you create a single, reliable data source.
2. Establish clear data procedures.
Establish who is responsible for what data and how data is created, modified or deleted.
3. Standardize input
Use fixed formats and smart validations (such as dropdowns or input masks) to avoid input errors.
4. Perform periodic data checks.
Schedule regular reviews: is data still current and correct? Correct and improve where necessary.
5. Avoid double entry
Integrate your systems so that data only needs to be entered once and flows automatically.
6. Train your employees
Make everyone aware of the importance of correct master data and give them the right tools and instructions.
7. Secure against data loss
Provide backups, encryption and a plan in case of technical failures, hacks or physical damage.
Why is control over master data so important?
Those who have their master data in order work more efficiently, prevent errors and increase the reliability of the entire ERP system. Think about:
- Quotes that automatically go to the right person
- Items ordered from the correct supplier
- Correct pricing and discount structures
- Less consultation, corrections and duplication of effort
Last but not least, you make it a lot easier on yourself. No duplicate entries, no doubts about data quality and no delays due to searches for correct data. So it's time to take your data seriously.
What does good master data management get you specifically?
When you have a grip on your master data, you notice it in all layers of the organization. Orders are processed faster, quotations are more reliable, and customer service works with up-to-date and complete information. Financially, too, consistent master data ensures better reporting and faster audits.
Companies that invest in good master data management save costs, reduce their failure costs and increase customer satisfaction. In addition, reliable master data forms the basis for further digitization - think of applications such as business intelligence, AI and process automation. Reliable master data is crucial here. In short: master data is the strategic foundation for growth and innovation.
Hans Dewaide is Senior Lead Consultant at Dysel and helps clients achieve maximum results from the deployment of enterprise software. Dysel's Equipment Life Cycle (ELC). is built on Microsoft Dynamics 365 Business Central and helps organizations support service processes simply, efficiently and fully integrated.
