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MDM and Enterprise Resource Planning

By   /  June 9, 2011  /  No Comments

Coins on Whiteby Angela Guess

A recent article demonstrates the value of master data management strategies to Enterprise Resource Planning (ERP) efforts. The article begins, “For many companies, the primary reason for investing in a Master Data Management (MDM) strategy is to support visibility through greater data integrity; however, a much overlooked but equally important benefit of MDM is to create common language with which to define, automate and enforce standard business processes across an enterprise. For enterprises running more than one instance of ERP, MDM ensures that attributes and categories such as payment terms, marketing campaign types, customer groups and stock item classifications are consistently applied across the enterprise, facilitating a more lucid expression of business rules and supporting greater automation of their implementation within each ERP platform.”

The article continues, “To define standard business processes and business rules across the enterprise, companies must first have a universal and uniform manner of describing the various business components (customers, products, supplies, etc.) that are involved in these business processes. This is where Master Data Management (MDM) becomes extremely valuable. MDM enables companies to centrally manage these definitions and then publish them across the organization, so that everyone is speaking the same “business language”. You can see how this is invaluable when it comes to how businesses categorize and label hazardous goods and restricted substances, and when importing or exporting items in compliance with country of origin restrictions. MDM could very well save your company millions by avoiding lawsuits, plant shut downs, and non-compliance fines.”

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Creative Commons License photo credit: Common Pixels

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