How a CIO and a CPO can be happy together with their Master Data Governance!

How a CIO and a CPO can be happy together with their Master Data Governance!

As a CIO, your primary focus is on creating an efficient, streamlined IT infrastructure that supports the overall goals of the organization. When it comes to managing master data, multi-domain solutions promise several advantages, such as:

  • Architectural simplicity: A single platform for managing multiple types of master data, such as customer, product, and supplier information connecting multiple ERPs.
  • Scalability: easy management of large volumes of data.
  • Cost-effectiveness: A single platform is expecting to be more cost-effective than a best-of-breed approach in terms of licensing, maintenance, and training.

On the other hand, as a CPO, your primary focus is on ensuring that the materials used in your organization are easy to find at shopfloor by your internal clients and efficiently and effectively procured and managed at inventory level. A best-of-breed solution can offer several advantages, such as:

  • Built-in domain knowledge: Best-of-breed solutions are designed specifically for a particular type of master data. In this case, material master data, this means providing deeper functionality and more accurate data management relying on specific knowledge that must be built from scratch in a multi-domain solution.
  • Flexibility: Best-of-breed solutions can be more flexible and customizable, allowing you to tailor the solution to your specific needs.
  • Improved governance: A best-of-breed solution with a customized AI engine can help you to govern better and manage your material master data, ensuring compliance with quality standards, cleansing existing duplicates, avoid the creation of new ones.

?So, Multi-domain solutions and best-of-breed solutions have their pros and cons, but as a CPO, if your primary concern is governing material master data, a best-of-breed solution is likely the right choice for you, and to support this decision, there are some additional things to take in consideration:

  • ??Complexity: Material master data can be complex and involve a large amount of technical specifications that differs category by category.
  • Inconsistency: Data inconsistency can arise when material master data is managed in multiple systems, leading to errors, missing technical information and duplicates.
  • Regulations: The materials used in many industries are subject to strict regulations, and failure to comply with these regulations can result in significant consequences.

?In this context, a best-of-breed solution empowered by AI technologies, such as machine learning and natural language processing, can help to identify patterns and inconsistencies in data, reducing the risk of errors and ensuring new data consistency. In other words, automate and streamline the management of material master data, which is not natively available in a multi-domain solution.

Then, how can one combine the advantages of a multi-domain solution with a best-of-breed? Is integrating the best-of-breed into a multi-domain platform and exploiting both strengths possible?

APIs allow different systems to communicate with each other and exchange data. By integrating a best-of-breed solution for material master data management with a multi-domain solution through APIs, you can ensure that CIOs and CPOs can be happy together with their Master Data Governance!

Steffen Chalupny

Sales Director DACH, Creactives | Associate Partner Concimus & scm-HUB.ai

1 年

Because of the paramount importance of collaboration between CIOs and CPOs in master data governance, we continue to talk about it. ??

Dino Müller

You make decisions. I do the job. We get things done.

1 年

CIO and CPO should be a good team! With that the company will reach the next level!

Stefano, I would caution against making the point that certain master data domains are more complex or ‘specific’ than others as they all have their uniqueness and are difficult to manage but for different reasons. Your article outlines very well the common challenge across the domains and the tension that exist between IT and functional data stakeholders, tensions we see frequently play out in the supplier master data domain as well. A common challenge is that multi domain MDM solutions tend to treat the ERP as the main ‘system stakeholder’ but struggle with matching the data to a broad range of data stakeholders that need the data for different reasons than purely for transactions. The big shift we are seeing is that IT is starting to align to data stakeholder needs through a re-org to IT business partner led functions vs the more traditional tower controlled IT function. This is opening their perspectives which is leading to an understanding that their system landscape require more than one shared MDM solution and that their role is to enable multiple solutions that can sit in a connected architecture. Efficiency is still important but the focus becomes architectural efficiency vs trying to push everything to one system.

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Stefano Sollazzo

Marketing Coordinator Manager presso Creactives SpA

1 年

How to manage different specialised solutions by harmonising them with generalist systems is a 'hot topic' addressed by many opinion leaders such as Lance Younger, Ragnar Lorentzen, Bob Booth and Dr. Elouise Epstein. We want to share our opinion from our own life experience on the subject of Material Master Data, which is probably one of the most "domain-specific" topics in the Master Data world.

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