How do you see the future of Master Data Management?

I see many firms extending the traditional scope of Master Data Management. With digitization on the rise, many of my customers are moving beyond just managing traditional master data domains like customer, product or vendor data. Their current focus is just as much on transactional data or the integration of external data sources.

Where do you see innovation potential in MDM?

I see a great potential when it comes to collaborative Master Data Management. To give you an example: If you compare the supplier lists of two large firms from different industries you will be surprised that there is a significant overlap. So, if both firms purchase from the same suppliers then why  not manage the supplier master data in a collaborative way. If you already have a Master Data record for the supplier that I am about to purchase from, then I can save myself some money. It goes without saying that this could work vice versa of course. It is a win-win situation. The Corporate Data League is a nice example for such a collaborative approach. 

What are the valuation approaches to MDM?

Together with the University of St. Gallen in Switzerland, we have looked at several accounting methods for intangible assets to determine the value of data. We started with a market-based approach. Ask yourself: If you were to sell your data, how much would you get for it? Now this approach might work for some data domains, but obviously not for all, because in many cases you simply wouldn’t find a buyer for your master data.
We then turned to a cost-based approach. Here you calculate the data creation costs and subtract adjustment charges for poor data quality and infrequent usage. This approach stimulated very interesting conversations with senior managers.

In one of those conversations a CFO said to me that he would like to know how much value data creates in a specific business process. We then built an income-based approach considering the costs and income derived from data in business processes.

Could you expand on the importance of putting a price tag on Master Data?

Even though everyone speaks of “data as an asset” or “data being the new oil”, 99% of all firms have no clue what their data is worth. I believe that the failure to put a price tag on data is one of the main reasons why data management is so immature in many companies.

If you have numbers you are much more likely to get attention from
senior management. Once we presented actual valuations for master data to a certain company we worked with, we had fantastic conversations with the C-level. It turned out that it was much easier to talk about governance or data quality tools once we had shown the value of data.

What would you like to achieve by attending the 18th Edition Master Data and Data Quality conference?

I am looking forward to some interesting presentations and conversations with other master data practitioners.





 
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 Ahead of the 18th Edition Master Data and Data Quality, we spoke with Hannes Schmidt, Project Manager at CDQ AG, about the valuation approaches to MDM and the importance of putting a price tag on Master Data.

 
 
Practical Insights From:
Akzo Nobel N.V.
BSH Bosch Hausgeräte
CAMELOT Management Consultants
CDQ AG
Coca-Cola Hellenic BSO
Deutsche Post DHL Group
Jacobs Douwe Egberts
L’Oreal
Liliendahl.com
Robert Bosch GmbH
Teva Pharma
zetVisions AG





 

About the Conference:

This marcus evans event will focus on tackling challenges on the journey towards business critical master data, improving business process efficiency and reducing waste from poor data quality. For over 7 years this event has been a great platform for MDM leaders from multinational companies to benchmark and exchange excellent ideas. The 18th Edition Master Data and Data Quality will take place from the 15th until the 17th of November 2017 in Barcelona, Spain.

Copyright © 2017 Marcus Evans. All rights reserved.

Previous Attendees Include: 

Abbott
Adidas AG
Bacardi
Barclays
British American Tobacco
Deutsche Telekom
Fujitsu
Goodyear
Maersk A/S
Orion Corporation
Red Bull
Shell
Unilever
Volvo

About the speaker:

Hannes Schmidt is a Project Manager at CDQ AG in St. Gallen, Switzerland. He has over ten years of experience in consulting. Hannes has a particular interest in corporate data valuation, data governance and business transformation. He holds Master’s degrees in Business Administration (MBA) and Public Policy.

 

What are the valuation approaches to MDM? 

 


An interview with the  Project Manager at CDQ AG

Hannes Schmidt, Project Manager at CDQ AG

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