by Angela Guess
Informatica recently published a list of seven ways that companies can reduce IT costs with effective Master Data Management. The first way is to reduce interface costs: “Business processes such as order-to-cash that cut across several heterogeneous applications, including order management and accounts receivable, require complex point-to-point integration between the individual applications. Multiply that by the number of business processes handled by all business applications and what you have is a highly complex web of integrations across the enterprise. These point-to-point integrations are expensive to develop and maintain. MDM simplifies them by centralising common information (master data) and making this information available at the different points within business processes.”
Effective MDM also reduces outsourced cleansing costs: “Some companies outsource the deduplication of their data to a data cleansing services provider, usually for marketing or compliance reasons. A marketing department may outsource the deduplication of its direct marketing lists, whereas under pressure to meet regulatory compliance deadlines, the legal department may outsource the cleanup of its compliance data. In both cases, the cleansed data is never stored in a central place for future access, and requires repetitive cleansing. Over time, these costs can mount to millions of dollars across the organisation. The history of how the data has changed over a period of time is not stored, a prime requirement for compliance audits.”
photo credit: Informatica
