Master data are core data ensuring smooth business processes. They do not change over a specific period of time. Examples include master files for parts, customers, and suppliers. However, even these data are outdated at some point. They therefore do have a “validity date”.
Master files have a significant effect on the transaction data of a company. Inaccurate records affect business processes and may persist from the quote to the invoice. They may lead to wrong decisions in controlling.
The main objective of master files management is therefore to ensure data quality. You can only make full use of information if it is up-to-date, consistent, and complete. High data quality of master files is the prerequisite for valid and reliable analyses and reports, which in turn form the basis for sound decision-making. Consequently, master data management provides the foundation for any data analysis.
There is a common misconception that master data management is a task of IT. It’s not. The departments themselves are responsible for efficient master data management. However, their employees are not IT experts. How can you solve this problem? By making master data management so easy anyone can understand it!