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Master Data

Collecting Master Data presents various challenges, including data inconsistency across systems, duplication, and poor governance. These issues can lead to reduced data quality, integration problems, and compliance risks. Effective management is crucial to ensure accuracy, consistency, and reliability in business operations.

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9 views2 pages

Master Data

Collecting Master Data presents various challenges, including data inconsistency across systems, duplication, and poor governance. These issues can lead to reduced data quality, integration problems, and compliance risks. Effective management is crucial to ensure accuracy, consistency, and reliability in business operations.

Uploaded by

mmabdullah205
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Collecting Master Data involves several challenges due to its foundational role in business

systems. Master data includes core business entities such as customers, suppliers, products,
employees, and locations. Ensuring its accuracy, consistency, and completeness is critical—but
also complex. Here are the main challenges:

🔹 1. Data Inconsistency Across Systems

 Issue: Different departments or systems might store data in varying formats or with
different values for the same entity (e.g., customer name spelled differently).
 Impact: Leads to duplication, integration issues, and poor decision-making.

🔹 2. Data Duplication

 Issue: Multiple records for the same entity can exist due to manual entry, lack of
validation, or system integration issues.
 Impact: Reduces data quality and increases processing errors.

🔹 3. Poor Data Governance

 Issue: Lack of policies for who owns, updates, and validates master data.
 Impact: Leads to unauthorized changes, outdated records, and inconsistency.

🔹 4. Manual Data Entry Errors

 Issue: Human errors like typos, incomplete entries, or wrong formats during data input.
 Impact: Affects data reliability and requires costly cleaning.

🔹 5. Integration with Legacy Systems

 Issue: Older systems may not support modern data formats or synchronization.
 Impact: Difficult to merge or align master data across platforms.

🔹 6. Lack of Standardization
 Issue: No common definitions, codes, or naming conventions for entities.
 Impact: Hard to maintain uniformity and perform centralized reporting or analysis.

🔹 7. Resistance to Change

 Issue: Employees may resist new master data management (MDM) processes or tools.
 Impact: Adoption is slow, affecting data quality improvement efforts.

🔹 8. Scalability and Volume

 Issue: As the organization grows, so does the volume of master data.


 Impact: Difficult to manage without robust systems or automation.

🔹 9. Data Privacy and Compliance

 Issue: Collecting personal or sensitive master data may violate regulations (e.g., GDPR).
 Impact: Can lead to legal penalties and loss of customer trust.

🔹 10. Real-Time Synchronization Challenges

 Issue: Keeping master data updated in real-time across all systems.


 Impact: Delayed updates can lead to outdated information being used in operations.

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