- Seven Ways to Reduce IT Costs Using Master Data Management
- Cost Reduction Benefit No. 1: Lower interface costs.
- Cost Reduction Benefit No. 2: Redundant third-party data costs eliminated.
- Cost Reduction Benefit No. 3: Data cleanup costs cut.
- Cost Reduction Benefit No. 4: Outsourced ‘cleansing’ costs eliminated.
- Cost Reduction Benefit No. 5: Reduces license, support and hardware costs of redundant systems.
- Cost Reduction Benefit No. 6: Reduces custom solution software development and maintenance costs.
- Cost Reduction Benefit No. 7: Reduces cost of information delivery.
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Seven Ways to Reduce IT Costs Using Master Data Management
Master Data Management software was developed to help enterprises align their master data assets—documents, Internet and intranet sites, e-mail, spreadsheets, charts and graphs, audio, video151;across multiple systems and departments. It also provides a 24/7 view into the system, plus reporting and analysis on all the data. This slide show offers “Seven Ways to Reduce IT Costs with Master Data Management.” Our source is Ravi Shankar, senior director of Product Marketing at Siperian, a provider of a “flexible” master data management platform. To see more detail from Mr. Shankar on these points, go here.
Cost Reduction Benefit No. 1: Lower interface costs.
Point-to-point integrations are expensive to develop and maintain, but MDM centralizes common information (master data) and makes this information available at the different points within business processes.
Cost Reduction Benefit No. 2: Redundant third-party data costs eliminated.
Duplicate data acquisition from external data providers is an unnecessary expense. With MDM, third-party data is integrated directly into one system and distributed to all downstream applications.
Cost Reduction Benefit No. 3: Data cleanup costs cut.
By integrating data from disparate applications into a central MDM system, it becomes possible to cleanse all data across the enterprise at one time, saving staff time and expense.
Cost Reduction Benefit No. 4: Outsourced ‘cleansing’ costs eliminated.
Some companies outsource the deduplication of their data to an outside data cleansing services provider. This task is centralized in an MDM system.
Cost Reduction Benefit No. 5: Reduces license, support and hardware costs of redundant systems.
By centralizing data for the enterprise, MDM makes it possible to reduce the amount of, or even eliminate, redundant data stores and systems.
Cost Reduction Benefit No. 6: Reduces custom solution software development and maintenance costs.
Proprietary or antiquated custom masters such as a CIF (Customer Information File) or ODS (Operational Data Store) can be replaced with a configurable off-the-shelf MDM platform, saving significant costs associated with band-aiding a custom solution.
Cost Reduction Benefit No. 7: Reduces cost of information delivery.
MDM eliminates compliance and management reporting costs by: a) managing a single version of the truth along with a history of all changes, and b) delivering this information to any reporting, business intelligence or data warehouse.
