Master Data Governance [shutterstock: 1362102449, Wright Studio]
[shutterstock: 1362102449, Wright Studio]
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Master Data Governance For Automated Processes

Master data governance (MDG) opens up a realm of possibilities regarding upkeep, validation and distribution of master data - an important requirement for Industry 4.0 projects.

Process automation increases master data quality even in internationally dispersed system environments. Furthermore, one automated process usually means many more automated processes down the road. Master data governance is not limited to the capabilities of ERP systems as there are add-ons that significantly increase efficiency.

Master data governance includes all strategic, organizational, methodical and technological activities concerning corporate master data. The goal is ensuring high data quality as well as continuity.

The digitalization of processes requires data quality to be up to par, beginning with actuality, correctness and completeness. Only if data conform to system-specific guidelines can they be processed automatically.

Data have to be consistent and unique. Duplicates needlessly inflate data volume as well as increase the risk of errors and processing costs. Complying with guidelines for master data quality is hard enough without the added effort of cleaning up duplicates.

Master data governance also means integrating a suitable IT solution as well as new processes and organizational structures with clear rules and guidelines. Companies can – and must – model the creation of master data sets and define individual approval and authorization processes. Only then will they be able to keep their master data quality high in the long term.

Master data governance accelerating automation

With the same measures and methods, companies can also support and automate other business processes. Precise texts can be automatically transformed into data and processed as orders, online shop information or descriptions of spare parts.

Industry 4.0 poses a lot of new requirements, such as creating serial numbers for industrial components and products, guaranteeing precise traceability of parts, and providing information on quality including documentation. Defined processes with integrated evaluation capabilities ensure fast and seamless workflows following industry standards.

The concept of master data governance seems capable of eliminating lack of quality in master data almost effortlessly. Through consistent monitoring and automated corrections, master data governance ensures a high level of security in diverse digital processes.

For realizing a master data governance project, I recommend cleaning and restructuring master data with specialized tools as they are more efficient than an ERP system in this case.

E-3 Magazine March 2020 (German)

About the author

Arno Michelis, Simus Systems

Arno Michelis is CEO of Simus Systems.

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