Digitalization is not a 21st-century invention – it is based on the binary number system and the precursors to it existed in China over 400 years ago. Only with the final development of the binary system, as we know it today, did it become possible for us to store data electronically. The lower the storage and computing capacity, the more data was stored. Which made data the oil of the 21st century.
With regard to master data, this approach is only narrower. Master Data is available in every company and in all business areas. This includes all non-transactional, numerical and verbal data attributes that describe, for example, staff, locations, investments, suppliers, customers, raw materials and other business objects. By consolidating these data attributes into central, relevant and correct master data records (so-called Golden Records), these objects, which typically rarely change, can be unambiguously identified. With this data integration, you get the first of our four data dimensions.
With the integration of information, the second data dimension, you get new, deeper insights into your master data and also the complete 360° view of your respective business areas. For this purpose, all direct and indirect relationships between your master data attributes and master data records are mapped, giving you more information. At the same time, this data dimension also determines the quality of your Master Data. This is measured by the suitability of your master data for meeting the information requirements, as well as the specific requirements and tasks in your company. The smaller your information gap, the better the quality of your master data.
In order to further deepen the information content of your master data, the data versioning of your Golden Records takes place in your centralized database. In this third data dimension, a separate version, with a time stamp or validity, is stored for all changes and additions that you make to your data stock. In this way, a structured version history is created over time, with time-stamped and reliable views of your complete master database. The integrated workflow tool ensures that your master data is always correct, and that all internal regulations, processes, procedures and control principles are adhered to at all times.
Which brings you to the fourth and last data dimension, the reporting tool with timestamps, in which you ultimately get the relevant knowledge for strategic and operational decisions. This is obtained through the evaluation and analysis of date-stamped or up-to-date master data views. Since you use a centralized, complete and correct 360° view of your respective business areas, you will get precise statements. In this way, you can also make solid, data-driven decisions that will help you achieve your important strategic goals.
When you turn master data into information, they acquire importance and you gain knowledge. This, in turn, allows you to recognize the scope and impact of possible decisions. After all, your decisions are only as good as the quality of the master data on which they are based.