Technical Stack Trifecta: MDM>ERP>CRM

I was recently discussing a client that was looking to implement MDM into their organization. They would be adding this system to a large and complex technical stack and after some discussions and research I thought this would be great information to share for some clarity. This is a bit high level but explains some of the concepts of the technical stack Trifecta.

Let's get started.

MDM: Master Data Management:

What is MDM? MDM systems and architecture are designed to improve data quality and governance. MDM comes in when there is mass of scale with assets, thousands of records and multiple systems. It comes in to ask the question, "Who keeps custody of the Master?".

MDM pulls in all data from the systems and creates multiple records per domain creating a Golden Record that is used across the organization, updated by multiple systems, available for business processes and users. When there is an overlap between records (SAP record A, vs CRM record A or ERP A Domain 1 vs ERP A Domain 5) it applies rules to define boundaries and a system of record. By choosing to take on an MDM system and the mindset and work that comes with this initiative, the processes of each system are optimized. I'll get into this more as we go into the ERP section while keeping this high level for a first pass through.

When to use MDM? MDM comes in when there are challenges to the data quality which impacts 'Trust' in the systems: dupes, disparate data, siloed data, errors, lack of governance, lack of visibility and transparency.

• MDM is used by ALL departments of the company.
• MDM creates a single source of truth for all Domains.
• MDM is for data that is critical to customer experience, business process controls and financial controls.
• MDM supports Customers, Suppliers, Products, Locations and as mentioned Financial Structure.

Examples:

• Ex. Data that reports across multiple systems for stock progression, logistics, facility maintenance or
• Ex. Data that reports on financial allocations and P&L performance.
• Ex. Provide data on primary contacts and approvers for financial decisions and details.

Note: Keep in mind that the rules of MDM can be applied even to one system to drive a system of Truth for your entire organization. Begin today to execute your own Master Data Management initiatives so that all departments are working with the same data.

Incremental Implementation: Unlike an ERP that needs to be fully operational in an all or nothing approach, MDM systems can be implemented incrementally. That is great news. That means that you can run an MDM initiative while building, enhancing or growing an ERP system. As a rule, you can't build a successful, solid ERP system without a good foundation for your data so run the MDM program initiative along side with the ERP initiative.

MDM takes months vs years for an ERP system, and done in phases you could eventually build the solid foundation you need for best business practices based on trusted data for your teams and customers. In most cases companies already have their ERP and CRM systems in place and are looking for better data management so you can start anywhere you like - find the key value points and begin.

The Golden Domain Record: I have already written about Unified Profiles (Salesforce Data Cloud) but an MDM system is something much more robust. As I mentioned, what we are solving for is a 'Certified' Golden Record for each Domain. You may have John Doe written as unique multiple records in multiple systems doing multiple things. With MDM you can go to the Golden Record and have a trusted view (360 view) of what John Doe is doing in all areas of the company, vs going into each siloed system, pulling the information that may exist in different formats and standards, comparing the dates, interactions, etc and coming up with a hazy, convoluted view of actions to execute. This does not include the many errors that (may) exist in the systems.

MDMs will give you, in short, a 'richness of data' in a single point of reference that can now be pushed to the right systems to run through their processes to make the best decisions for the client and company. It's data that is core to multiple business processes. Now you can input Predictive Models, AI, and streamline data for automations.

Think of MDM as the foundation upon which a solid ERP system is built.

We use it to ensure its (1) Accuracy (2) Quality (3) Consistency for an output of TRUTH.

The key takeaway is simple and echoes in all my articles and discussions. It all comes back to data eventually. You can start on processes, AI, Asset builds but as a rule you have to have a good foundation of data. My favorite quote when we design the project timelines is to address "Data early and often". My clients hear it time and again and team timeline adjustments are placed on pulling data management back to the start of the project for a successful implementation.

Field Service for Assets: It is worth mentioning that working with Asset centric builds, there are exceptions for models that need to be addressed with a CRM system which we cover in more detail below. Adit Paul Chittilappilly has done an amazing course on the 5 Weeks to Field Service Mastery. To Adit's point, "Keep all the important details about your assets in one place – model and serial numbers, location, service history, warranty information, etc. This ensures that everyone on your team has access to the same up-to-date information, reducing errors and improving efficiency." Of course the ERP systems can handle the invoicing and payments, but creating actions off the Asset need to be addressed on the front line where the Field Service teams play.

ERP: Enterprise Resource Planning:

First its good to understand that MDMs & ERPs are 'complimentary' and not mutually exclusive. They do different things that support one another.

• ERP systems are built around operational processes.
• ERP systems are designed to streamline business processes (* fulfillment, invoicing) and improve efficiency.
• ERP systems handle critical data, optimize processes and empower decision makers.
• ERP systems are robust technical stacks made up of modules or Domains from Accounts, Contacts, Products, Orders, Quality Controls, supply chain mgmt, Accounting, Finance, HR, CRM, etc.

MDM on the other hand is not directly concerned with optimizing processes but rather in the data that flows through the processes. Its a method of centralizing and governing the "Master Data" within the organization.

Ex. ERP can be used for the onboarding of the customer with credit checks, compliance, etc with the output of a Record ID to other systems. CRM will manage the Order or Contract but items need to be invoiced and paid for.

The secret sauce of an organization is learning and applying best practices between this Trifecta. Now lets go into a brief CRM discussion and see where we are at.

CRM: Customer Relationship Management:

I am going to keep this simple as most people know what CRM is and how its used.

CRM is built for Sales or Service. Just look at some of the names. ServiceMax, Salesforce, Servicenow, etc. What this tells us is that it is built for front line records and actions. It is built to move and support the processes of Sales and Service. It is built for ACTIONABLE DATA. It is not meant to hold data and IS NOT a data management tool. I have seem customers try to do this time and again and the message will always be the same. If you do try to use it for Data Management your holding price will be heavy as in price and effort. You need a great Data Management Strategy and as Steve Jobs points out, a great (data) Strategy will define the bottom line. The strategy is also part of a larger cohesive Vision so without that your strategy will be deflated. The two are tied together.

Why has CRM become so important to the technical stack? Jobs goes on to say, "You have to start with the customer experience and work backwards. You can't start with the technology...". People have figured this out. Sit down with your customers, figure out their journey, then sit down with the engineers and this is why Salesforce is so impactful.

But I just told you that you should keep all the important details about your assets in one place – model and serial numbers, location, service history, warranty information, etc, - correct. The reason applies to the Power of CRM. It is to create actions and records and run processes off the Asset. This holds true for other things as well if there are actions that are created off a record and it needs to be handled in a 360 view or in a timely manner (not a batch load but real time execution).

Thats it. The message: Use CRM from its strengths and integrate where needed to run your data.

Now get out there and have some fun.