Anyone looking to get started with master data management would be wise to draw up a roadmap in advance. This will help you avoid master data management becoming a project that is too time-consuming, too expensive, too large, and too complex. In this blog, we’ll provide you with guidance for a solid planof action.
In 2024, many companies are facing the need for greater control over data quality and standardized data definitions. After all, this is vital for better decision-making, regulatory compliance, a competitive advantage, and efficient business processes. Master data management is a method that ensures the uniformity, accuracy, ownership, and consistency of data within an organization. It involves collaboration between IT and business units to bring data to where it can truly add value: on the shop floor.
But before that concrete value comes into view, it’s advisable to draw up a master data management roadmap. In it, you determine the general course toward the desired endpoint. “Broad, because you need to remain agile. For example, you might want to head north over the next two years, but exactly where in the north will become clear along the way,” says Macaw’s Data Advisor Martijn Muilwijk. “A roadmap for MDM is important because this isn’t a one-time project: MDM needs to grow, and you can’t roll it out all at once. An agile roadmap helps you establish a rapid-learning approach, but also helps get the organization on board and build support. So use the roadmap as a communication tool to get users on board and keep them engaged.”
Creating a master data management roadmap involves several steps:
Martijn recommends that this step consist of two elements. “On the one hand: start by examining your business pain points. What problem do you think or hope MDM will solve?” he says. A (data) quality assessment session with C-level executives can be helpful here. “But also take a practical approach:‘ ’ Find a suitable use case as quickly as possible, because otherwise it will remain just talk and theory, and you won’t get off the ground.”
“In this step, build on Step 1. Look at the organization as a whole to determine where you want to go and how you can achieve rapid impact without having to take overly big steps. Start by identifying the low-hanging fruit,” says Martijn. “Based on those findings, formulate a tangible use case. Don’t make this just an IT project: the objectives and scope of master data management affect the entire organization—not just technically, but also pragmatically and strategically.”
When determining the resources for the master data management roadmap, Martijn warns against a common pitfall: focusing solely on the financial investment and overlooking the hidden aspects. “MDM is an investment in your entire organization. So be sure to take a close look at internal resources as well. How much time do you have to get started with MDM, but also to keep it running? Do you have the right roles in-house, such as a data officer and data stewards? What external resources might be needed? Which business roles are responsible for the quality of the various data points? And which applications do you need to adapt and integrate with MDM—and who will do that? Identifying resources is crucial for future success. Conduct an impact analysis across the entire chain—from integration to quality—and consider how you’ll sustain the initiative in the long term.”
Next, investigate where the risks lie for your organization. “Companies often forget to assignownership properly. On the one hand, this should lie with IT, and on the other, with the business units themselves,” Martijn advises first and foremost. “But also consider the human side of the impact that MDM has on current applications and work processes. If someone is suddenly assigned a data-related task they’re not familiar with, it costs time and job satisfaction. That’s how your MDM project will inevitably run aground. So when identifying risks, always conduct a thorough 360-degree analysis of your data, processes, technology, and people. It doesn’t have to be a massive, sweeping effort—as long as you consciously examine all these aspects.”
As described earlier, agile planning is crucial for a master data management roadmap. Martijn: “MDM is interconnected with many other projects across business units. Incorporate it everywhere right away, give it a place in the schedule, and allocate sufficient resources and personnel for it. Get that simple use case up and running quickly, but also plan for a complex component to follow. After all, you’ll have to bite the bullet in the short term. Focusing only on the quick, easy parts will still lead to problems down the road. So opt for balanced program management, and keep that schedule flexible as well.”
According to Martijn, you can learn a lot from your low-risk use case, and this will benefit you when implementing MDM. “Experimenting and testing is an important step. Is your proof of value a success? Do you have a clear understanding of the value you’ve derived from it, and do people on the front lines see it that way too? Then you can move on to the final step in your master data management roadmap.”
Martijn has a few practical tips for implementing and executing master data management. “As mentioned, ownership and leadership play an essential role in the ultimate success of your implementation and execution. But be sure to include adoption right from the start in your implementation plan. Only by working on MDM together with the right people will you achieve a ‘seeing is believing’ effect. Employees see the benefits and get excited about the momentum that builds,” he explains. “And, equally important: learn from an experienced partner during the crucial initial phase of your MDM project. A strong start is vital to the results that MDM can deliver.”