The Business Value and Benefits of Master Data Management

Ascention is pleased to present this excellent article from TIBCO which provides detailed information on the benefits available to all organisations on MDM initiatives – with mini case studies to highlight the value companies have recently realized with their MDM investments.

In this paper, we have shown how you can realize significant business value from master data management investments in general, and provided examples of these benefits in action at two organizations, Panera Bread and Netspend.

Master Data Is the Key to Competitive Success

These days, you compete with data, especially when engaging with customers. Data helps you understand what they bought, what the sales process was, what marketing was aimed at them, and so much more. With such a 360-degree view of this data—you can engage, delight, and upsell—and thus grow revenues while reducing sales and marketing costs.

You can achieve a similar top- and bottom-line value with your product data, for instance when bringing new products to market and/or optimizing your supply chain. And tapping other master data domains such as employees, facilities, and vendors can yield huge business value as well.

Because your master data assets are so essential to your success, improving your master data’s consistency, accuracy, and accessibility can positively impact a wide range of business activities, including:

Product innovations and launches
Customer service
Marketing personalization
Customer journey analytics
Process optimization
Supply chain efficiency
Operational consistency and localization
AI and IoT applications development
GDPR and CCPA compliance
Regulatory compliance
Mergers and acquisition synergies
Risk management
Data and reporting quality

Master Data Management Value Propositions

Intelligent use of Master Data Management (MDM) brings many benefits. MDM can help you:

Increase revenue. To provide personalized cross-sell and up-sell offers, you need complete, reliable data for all customer touchpoints. MDM can provide a consolidated source of master customer data across your customer data entities. This accurate data source helps you better understand your customers so you can ensure that the right cross-sell and up-sell offers are sent to the right customers at the right time.
Improve customer satisfaction. With MDM, you can also strengthen loyalty and increase sales by personalizing interactions, delivering a consistent experience across channels, and tailoring products and services to your customers’ specific wants and needs.
Accelerate innovation. Your R&D teams can introduce new products and services faster using MDM as the source of project, product, vendor, and employee data across every stage of your new product development lifecycle.
Optimize your supply chain. MDM’s centralized product perspective is the key to accessing timely, accurate information on inventory, product returns, and out-of-stock items across your supply chain. With this data, you can improve inventory turns, forecasting, and customer service.
Identify and act on insights faster. MDM provides a complete, consistent, and reliable source of master data across your organization. You can speed up time-to-insight and action by allowing business users to directly access, manage, and visually interact with your master data. Furthermore, MDM simplifies and accelerates data integration, so you can gain your insights faster.
Improve compliance. Centralized and complete master data simplifies compliance reporting and reduces associated costs and penalties.

Making the Business Case for Master Data Management

This year, organizations will spend more than $7 billion on MDM. For them, the business case is quite compelling, with value realization in these seven areas:

Improve engagement via better insight into customer preferences.
Accelerate new product innovation and launch.
Realization. Optimize execution and yield through business processes.
Reconciliation. Reduce the direct costs of bad data.
Reporting. Ensure accurate reports for more effective decision-making.
Regulatory compliance. Maintain the organization’s good standing with the authorities.
Risk management. Avoid business risks.

To assist you in building your business case, Gartner provides a seven-step playbook in its April 2020 report 7 Steps to Build a Successful Business Case for MDM. This report also includes best practice instructions and detailed worksheets so you don’t have to reinvent the wheel. Get a complimentary copy.

How Panera Bread Derives Value From MDA

While building new systems to manage e-commerce, kiosk ordering, inventory, and food costs, Panera Bread, one of the world’s most successful chain of bakery cafes, needed a “single source of truth,” a central repository of all its food and menu master data.

Panera used TIBCO’s MDM platform, TIBCO EBX software , to bring together these data assets so it could more easily innovate menu items based on customer feedback, seasonal preferences, and evolving consumption trends, resulting in greater revenues. Business user interfaces and workflows enabled Panera to put food and menu master data ownership into the hands of its chefs and store managers. This accelerated the time to market for new menu items. And because the experts, rather than IT, owned the data, data quality also improved. Learn more about how Panera is deriving value from MDM.

How Netspend Derives Value from MDM

Netspend, one of the world’s largest providers of private label, prepaid cards, knows how providing excellent customer experiences is key to revenue growth and customer retention. Recognizing that master and reference data were central to their data-driven business, Netspend used TIBCO EBX software to transform, simplify, and streamline previously time-consuming and manual business processes to better serve its customers and partners.

Learn more about Netspend’s use of MDM.

Conclusion

To learn more about the TIBCO EBX master and reference data management platform, and see how others like you have benefited, go to https://www.tibco.com/products/tibco-ebx-software?partner_id=229621.

ASCENTION SHARES EXPERIENCE

The team at Ascention is always willing to share our experiences to assist your team’s Data Governance initiatives and projects – simply contact us to start an informal no obligation discussion.

Ascention Contact: Ben Elters, Client Director. E: ben.elters@ascention.com M: +61 415 500 563

©2021, TIBCO Software Inc. All rights reserved. TIBCO, the TIBCO logo, and EBX are trademarks or registered trademarks of TIBCO Software Inc. or its subsidiaries in the United States and/or other countries. All other product and company names and marks in this document are the property of their respective owners and mentioned for identification purposes only.