Master Data Governance for Automated Processes

Process automationincreases master data quality even in internationally dispersed systemenvironments. Furthermore, one automated process usually means many more automatedprocesses down the road. Master data governance is not limited to the capabilitiesof 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 dataquality as well as continuity. The digitalization of processes requires data quality to be up to par, beginning with currentness, correctness, and completeness. Only if data conform to system-specific guidelines can they be processed automatically.

Data haveto be consistent and unique. Duplicates needlessly inflate data volume as wellas increase the risk of errors and processing costs. Complying with guidelines formaster 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. With thesame measures and methods, companies can also support and automate otherbusiness processes. Precise texts can be automatically transformed into dataand processed as orders, online shop information or descriptions of spareparts.

Industry 4.0 poses many new requirements, such as creating serial numbers forindustrial 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 thanan ERP system in this case.