Through his many speaking engagements and regular contributions to publications such as Information Management, Dan Power has built a solid reputation as one of the most knowledgeable commentators on all things in master data management. He’s got a new white paper titled “When Data Governance Turns Bureaucratic: How Data Governance Police Can Constrain the Value of Your Master Data Management Initiative” that we’re featuring on the Siperian website.
Dan observes that while many early adopters of MDM expected to quickly establish a “single source of truth” across their information systems, many have encountered problems. The culprit? Reactive data governance.
As many as 80% – 90% of companies implementing MDM start with a “coexistence” architecture whereby front office applications (CRM) and back office applications (ERP) are still used to author master data (customer and product data, suppliers, employees, etc.). Because these applications remain the “Systems of Entry”, while the MDM hub’s role is limited to being the “System of Record,” some of the biggest promises of MDM remain unrealized.
Dan shows that firms embracing a proactive data governance approach can overcome these limitations. By authoring data directly in the master data management hub itself, firms can decouple data entry from the traditional CRM and ERP systems. When the System of Entry and the System of Record are one and the same, the application architecture is simplified quite a bit. The CRM and ERP systems become consumers of master data only – they no longer originate it.
Read Dan’s new white paper to learn about the shortfalls of reactive data governance and how proactive data governance can benefit you. You can download the white paper here.