Business software is full of important information. About your company, customers, prospects, contracts, offers, et cetera. And this mountain of information is evolving. Every day data is changed and added, new appointments, notes and contact moments are recorded, and so the amount of information grows. Getting a grip on this data is critical. And that starts with your master data.
What is master data?
Master data is the basic data in your system that does not change very much and plays a major role in various processes. Examples are data on customers, suppliers, articles, article prices, and so on. Other data, such as inventory, changes constantly or becomes less relevant over time, such as a completed work order or maintenance contract. Master data, on the other hand, is crucial for your company to do business successfully now and in the future. So make sure you have control over it!
How do you lose control of your master data?
Insufficient control over your master data often has one or more of the following causes:
- Obsolete technology: many old systems lack a proper data structure and data management capabilities.
- Lots of manual: you have less control over information in employees' heads, on paper and in file cabinets than you do over digital information.
- Multiple systems: storing and managing master data in multiple software systems makes it complex and cluttered.
- No or poor structure: data benefits from structure; no or little structure lowers the usability and value of data.
- No or poor procedures: when agreements are missing on how data is entered, changed, controlled and by whom, you lose control.
How do you get control of master data, though?
There is no golden formula for perfect control over your master data, but these tips will get you a long way:
– Manage centrally: modern systems support one-time data entry and central data management, the ERP package is the ideal choice for central data management due to its good data structure and use throughout the organization.
- Clear agreements: establish clear procedures for entering, managing, maintaining, changing and deleting master data, who has what responsibilities in this?
- Checking regularly: periodically check if your master data is still correct, or if it needs to be completed or corrected.
- Preventing data loss: establish a policy to prevent data loss in case of theft, fire, hacking, technology failure, et cetera.
Why is control over master data so important?
Good master data management increases data quality and reduces the risk of errors within the various processes. Your entire organization becomes more effective and decisive when master data is in order. Quotations go to the right people, you offer products that are actually in the assortment, you order the right items from the right suppliers, you apply the right prices and discounts, et cetera. And perhaps more importantly, you make it easy for yourself! No double entries, no consulting incorrect data, no double-checking with a colleague or another system. Time for checking!
Peter Gerhardt is Senior Lead Consultant Logistics at Dysel and helps customers achieve maximum results with its business software.
