Data Advocacy: How To Develop a Business Case for MDM in Your Organization

Master Data Management (MDM) is crucial for the long-term success of any business aiming to thrive in a dynamic and ever-changing world. However, in practice, MDM remains a complex and sometimes difficult concept to grasp. This complexity often makes it challenging to gain buy-in from management and convince them of the value of MDM within a company.

What is Master Data?  

Master Data refers to the core data that exists throughout an enterprise’s entire digital ecosystem. It encompasses a vast amount of data, typically concerning customers, suppliers, products, parts, employees, locations, recipes, and other key aspects of an organization. Master Data forms the foundation upon which enterprises can build their analytical capabilities and steer their business. Departments and functions across the entire organization – from Marketing to Operations to Finance – rely on Master Data to make informed decisions, implement effective strategies, and measure their success. Given the importance and complexity of this information, numerous resources, technologies, and disciplines have been developed around Master Data Management to extract the maximum value from it.

Identifying Where MDM and PIM Can Have the Greatest Impact  

When planning to introduce and implement MDM in your organization, it’s useful to consider where and how it will have the most significant impact. These are the functions, departments, and individuals that will be most affected by this solution (and stand to gain the most from it!). There are multiple business areas that will be strongly influenced by MDM.

In short, correctly implementing an MDM strategy and solution brings numerous benefits, which can be categorized into three main areas:

• Running the Business (Run)

  Benefits related to improving and streamlining key business functions and processes. While these may not be the most “exciting” benefits of MDM, they often impact crucial daily activities within the organization.

• Driving Growth (Grow)

  Benefits aimed at staying ahead of competition, increasing sales, and enhancing retention and loyalty.

• Transforming the Business Model (Transform)

  Benefits associated with fundamentally changing the current business model, such as entering new markets and developing new capabilities.

Articulating the Value of MDM  

Although there are many benefits to using and adopting Master Data Management solutions, expressing their importance and value in a way that resonates with everyone in your company can be challenging. It often helps to build a business case and develop compelling arguments tailored to various audiences. Consider using one or more of the following approaches when pitching MDM to your organization:

Straight to the Point  

Sometimes, the simplest way to convey the value of MDM is by highlighting the consequences of doing nothing. A compelling example is a PIM program owner who secured CEO buy-in with a straightforward message: “If we don’t do this, our company is doomed.” It’s direct, somewhat drastic, but highly effective in creating urgency and illustrating the importance of MDM.

The Storyteller  

Another effective way to pitch MDM is through storytelling, using practical examples and use cases from other industries or your own experiences. The key is to connect the use of data with its impact on daily activities, people, and business processes. Compelling examples of both successes and failures due to poor data management make it easier to generate buy-in, even among those less familiar with data.

The Benchmark Enthusiast  

Not everyone is swayed by anecdotes alone. “Some people love facts, statistics, and benchmarks.” Utilizing market research findings can provide a solution here.

The Business Case Approach  

MDM often represents a significant leap forward for an organization, requiring buy-in from top management to succeed. It’s crucial to explain how it addresses C-level challenges across the entire organization.

In conclusion, finding a balance between these different approaches is often key to successfully launching an MDM program.