Even if you are confident that investing in Master Data Management is the best way for your organization to establish a sustained approach to reliable data, you still must sell it to leadership and other key decision–makers. Some organizations struggle to make this business case.
According to Gartner,
of companies lack formal metrics to measure the financial value contributed by an MDM solution.
Without formal metrics, organizations must blindly trust proof-of-concept programs to validate technology without understanding its possible values toward addressing stakeholder objectives.
Improve overall asset management
Reduce and manage procurement costs
Implement reliable maintenance programs
Improve supply chain relationships
Improve access to spend analytics
Beyond providing a single source of truth and foundation for making better, data-driven business decisions, MDM investment can move the needle on dozens of key performance indicators. Identifying appropriate metrics for the business case will make it easier for executives to pinpoint value.
By way of example, improving the ability to manage spare parts, indirect materials, inventory, services, products, and finished goods can be measured in strategic improvements to purchase agreements and reductions in false stockouts and downtime. In addition, many organizations quickly eliminate storing large, costly materials and products, optimize their inventory levels, and reduce the time needed to find critical information to keep assets safe and productive.
Minimizes duplicates, cuts down on wasted time and enforces compliance
Tracks line-item creation and modifications made within the database
Controls the process of communicating change requests
Manages and maintains data across multiple enterprise systems
Prove to Leadership the Value of an MDM solution
Since many stakeholders are involved, and numerous considerations are required to support the business case, Sphera’s experts have provided a series of resources to help organizations sell MDM to leadership. Soon enough, MDM will become a way of life for your organization. But for now, we’ll focus on a series of examples to demonstrate the far-reaching impact and value a master data program can have for your organization.
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