Good data governance is no longer just a formality you tick off to meet compliance requirements. Increasingly, we see that organizations that have their data flows under control also perform better in the market. They can act faster, respond more effectively to new opportunities and – importantly – offer their customers more confidence in how they handle data. A solid foundation in data governance isn’t just about rules on paper, but primarily about organization-wide awareness that data is a core asset, comparable to capital or intellectual property.
One of the most important pillars in this regard is master data management, or MDM for short. Imagine that different departments within your company each have their own customer or product database, without clear agreements or coordination. The result is that everyone works with slightly different information. The sales team has old address details, the financial administration sees different payment terms, and the service department has no idea who the contact person is at an important customer. This can not only lead to errors and duplicate invoices, but also damages the trust of relations in your professionalism. MDM offers a solution by defining one source of truth for the most important data – such as customer information, product characteristics or supplier data. It ensures that your organization speaks and acts uniformly, whether someone from the sales department looks in the system or a colleague from marketing.
However, master data management is not something you execute in an isolated system. Success depends on the extent to which you’re able to properly integrate applications within your company – and sometimes even beyond. Application integration is effectively the backbone that connects all those systems and ensures that data can be exchanged and validated. Without such smooth coupling, you see that systems work past each other and even valuable data remains ‘trapped’ in a single department or application. That’s not only inconvenient, but can also be costly if you miss crucial insights.
A striking example is an organization that uses a CRM system alongside an ERP package and a separate tool for project management. As long as each system runs on its own, it’s extremely difficult to quickly and flawlessly get a picture of where the biggest profit opportunities lie or how much time and money has been spent on a particular project. Only when those systems communicate properly with each other does a holistic picture emerge. Then you suddenly see that a delay in logistics directly affects delivery reliability and customer satisfaction. This allows you to intervene earlier and better to limit or even prevent damage.
Ultimately, the power of data governance is that it’s not just about recording processes, but also about bringing the entire organization along in a shared vision. Data is not the exclusive domain of the IT department or a handful of specialists. Everyone who works with data – from the customer service employee to management – must understand where it comes from, how it’s managed and why that’s important. A central set of definitions and agreements helps avoid discussions about figures and reports. After all, when everyone speaks the same language, there’s automatically more support for data-driven improvements and strategic decisions.
Organizations with ambitions to grow and continue innovating really can’t afford to let data governance, master data management and application integration languish. It’s precisely in these areas that there’s often still much to gain. By ensuring that all data sources are consistent and integrated, you lay the foundation for reliable analyses, valuable customer insights and smoothly running business processes. And that’s not only good for internal efficiency, but also for reputation towards customers, suppliers and partners. Because if you want to show that you have your affairs in order, it starts with one version of the truth and the certainty that it’s applied everywhere in the organization.
Anyone wanting to take the next step in this area doesn’t need to reinvent the wheel. At Twentynext, we have experience setting up and implementing MDM and application integration solutions in existing data landscapes. This means we not only think along about the design of systems and processes, but also help develop the right modules and connections. Do you have the sense that gains can be made in your organization, or do you simply want more control and transparency in your data? Feel free to contact Twentynext. Together we’ll ensure that your organization has one clear source of truth, so you can respond quickly and soundly to new opportunities and challenges.



