The COVID crisis has accelerated digital transformation. Organizations have had to adapt to de-facto behavioral changes. Remote, separated work has become the norm and more contactless interfaces and interactions have raised the bar on digital integration and enhanced process efficiency. We have learned too that data is the glue that binds digital transformation to effective process execution.
If data is a critical asset for any business, Master Data is the refined gold, the engine of efficiency and effectiveness in end to end processes that drive value for the business. Master Data drives all transactional processes (and P2P is no exception!) and is at the core of the Shared Services and Global Business Services model.
However, for data to fuel these initiatives, it must be coherent, accurate, precise, governed and available. Effective data governance ensures that master data has these qualities and can contribute to value created by effective global business processes.
The Hackett Group shared some interesting statistics that the quality of master data governance correlates to almost two thirds lower resource requirements and total cost of finance for world class vs lagging organizations. They also observed 4 additional benefits of master data governance;
- Enabling enhanced analytics based on consistent views enhancing transparency
- Reduced cycle times as well as cost in both Finance and IT
- 33% less rework from formal processes, service level commitments and performance tracking
- Maximized return on investment in new technologies due to simplified rollout and exploitation
Our webcast focusing on Vendor Master Data governance and integrity, starring VMD guru Debra R Richardson and GBS leader, Steve Fox, looked into the case for action, some of the challenges, best practice approaches to cleaning master data and sustaining good governance through continuous monitoring.
We discussed the focus and key pain points in the “Source to Contract” (procurement) process and those in the Accounts Payable process. It is easy to see why vendor master data can become a challenge to manage of not guided form the top. Our LinkedIn poll showed just what the majority of P2P and Master Data leaders and SMEs feel;
Ownership, as with all business challenges, is clearly key.
Debra shared her “8 Step process” to cleaning Vendor Master Data. Considering the risks of poor vendor master data integrity, potential for payment fraud and operational complications such as duplicate vendors and subsequent duplicate payments; such clear guidance is valuable and immediately actionable.
You can see Debra’s recommendations and Steve’s observations and best practices here
Thanks for reading