Organizations spend millions of dollars to implement their MDM solution. They may have different approaches (batch vs. real time; integrated customer view vs. integrated supplier view etc.) – but in general they all expect to get a “one version of the truth” view by integrating different data sources and then providing that integrated view to a variety of different users.
After the completion and successful testing of the MDM implementation project, companies sit back and enjoy the benefits of their MDM hub – and more often than not don’t even think about looking under the hood. It never occurs to them that they could be trying to gain insights into what’s happening inside that MDM hub by asking questions like
– How is the data quality changing?
– What are the primary activities (in processing time) inside the MDM hub?
– How are service levels changing?
However, organizations change, people change, requirements change – impacting what is happening inside the MDM Hub. Such changes can open up significant opportunities for an organization – but without doing any sort of investigation that opportunity is typically not recognized.
Here are two examples – diagnosed through the use of an MDM audit tool:
– The company’s MDM Hub had approximately 100,000 incorrect customer addresses. These addresses were used for regular mailings; the mailings generated (in case of correct address) incremental revenues. Impact on the business related to just one mailing:
$400K wasted on the mailing cost ($4 is the conservative mailing cost per person – for postage, printing of the mailer etc.)
$100K of immediately lost revenues (as past data shows that one in 50 customers spends about $50 immediately following the mailing)
The longer term revenue lost was not assessed, but was estimated to be well over $400K
The opportunity: Cost saving of $400k and revenue increase of $500K or more
– At a different company, by analyzing data processed by week the resulting report was able to determine that the number of new customers processed was declining by 1-2% every week – starting about 6 weeks before the audit was conducted. A deeper review of the audit report suggested that
The original service levels related to customer file changes had been getting worse and worse over that same time period
As customer file changes (as per the audit report) took over 85% of the total processing time, the slower processing lead to less time available for new customer processing
This initial diagnostic was confirmed by the client – they had a slowly growing backlog of new customer files
Ultimately the audit was able to highlight which input data source had been causing the slowdown, allowing the company to resolve the problem at its source
Business impact: a major risk (very significant slowdown in new customer set up) was eliminated before it became a real problem
Read full story at https://bit.ly/2PTp0Ix
After the completion and successful testing of the MDM implementation project, companies sit back and enjoy the benefits of their MDM hub – and more often than not don’t even think about looking under the hood. It never occurs to them that they could be trying to gain insights into what’s happening inside that MDM hub by asking questions like
– How is the data quality changing?
– What are the primary activities (in processing time) inside the MDM hub?
– How are service levels changing?
However, organizations change, people change, requirements change – impacting what is happening inside the MDM Hub. Such changes can open up significant opportunities for an organization – but without doing any sort of investigation that opportunity is typically not recognized.
Here are two examples – diagnosed through the use of an MDM audit tool:
– The company’s MDM Hub had approximately 100,000 incorrect customer addresses. These addresses were used for regular mailings; the mailings generated (in case of correct address) incremental revenues. Impact on the business related to just one mailing:
$400K wasted on the mailing cost ($4 is the conservative mailing cost per person – for postage, printing of the mailer etc.)
$100K of immediately lost revenues (as past data shows that one in 50 customers spends about $50 immediately following the mailing)
The longer term revenue lost was not assessed, but was estimated to be well over $400K
The opportunity: Cost saving of $400k and revenue increase of $500K or more
– At a different company, by analyzing data processed by week the resulting report was able to determine that the number of new customers processed was declining by 1-2% every week – starting about 6 weeks before the audit was conducted. A deeper review of the audit report suggested that
The original service levels related to customer file changes had been getting worse and worse over that same time period
As customer file changes (as per the audit report) took over 85% of the total processing time, the slower processing lead to less time available for new customer processing
This initial diagnostic was confirmed by the client – they had a slowly growing backlog of new customer files
Ultimately the audit was able to highlight which input data source had been causing the slowdown, allowing the company to resolve the problem at its source
Business impact: a major risk (very significant slowdown in new customer set up) was eliminated before it became a real problem
Read full story at https://bit.ly/2PTp0Ix
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