A large extent, the successful implementation of ERP and data quality are closely related. High quality data means the data within the ERP system will play all the expected effects. With a virtual company's CEO and CIO of e-mail dialogue between, you may be able to more clearly the importance of data quality, and know the circumstances under which solutions should be taken.
When I hear someone talk about ERP program, you will find most of them focused on the topic of Business Process Reengineering. ERP software to improve employee acceptance of orders, production, shipping and billing efficiency plays an important role indeed.
However, ERP's value is not only reflected in the integration of the entire enterprise value chain business processes. If you can not integrate the data to support these processes, ERP system implementation will be desperate, never stand up opportunities. When several years and cost millions, many companies still feel frustrated: because of its ERP investment and no new improvement to business management.
Bound by the ERP system before the process of each individual possesses their own set of master data, the data must be integrated to the release by the value of ERP. Master data entities, including customers, suppliers, products, raw materials and other documents.
The successful implementation of ERP projects to a large extent is closely related with the data quality.
Data quality issues related to the incomplete, duplicate, incorrect, inconsistent and wrong classification of records. These records will result in improper order processing, inventory and procurement management failure, time to market and delays in inefficient business processes, business performance management is not reliable, business and other adverse consequences of increased risk.
Broadly speaking, the high quality of the data means the data within the ERP system will play all the expected effect. In addition to the quality of meaning in the traditional sense, the true integration of data quality, master data also reasonable.
Nevertheless, the main data integration is still a number of ERP program will consider the practice of ex post facto. Company firmly believes in dealing with these issues in full compliance with the ERP implementation in the "data loading" step, but this approach tends to underestimate the enterprises to obtain high-quality, integrated data to support the importance of achieving ROI goals and complexity. If the data in the new system, the accuracy and timeliness can not command general confidence, the project is doomed to fail.
We had a fictitious company called Wexford Widgets, through interpretation of its CEO and CIO of several letters between the representative of the mail, of enterprises in the pre-ERP implementation or upgrade stage must meet several challenges.
Create a master customer account
From: Tony, Wexford Widgets, CEO
To: Bill, Wexford Widgets company CIO
Topic: Merge billing
Bill,
For the customer to open a single consolidated matter, how do we do? You know, some large customers have been complaining about a few years ago, we always open a different invoice to them, they each invoice corresponds to one of us to open Credit Account. We would like to intercept these invoices through artificial means, and consolidating them into one invoice, but this method seems not work.
Received a lot of customers complain about not only the invoice will be messy inconvenience and trouble, but also that our grasp of bulk purchasing discounts not accurate enough. This phenomenon is not only dampened the enthusiasm of our customers, we also spent a lot of time and money to artificially adjust the invoices. I hope you can recommend an effective program of action to resolve the issue.
Tony
From: Bill, CIO
To: Tony, CEO
Topic: billing on the merger
Tony,
Thank you for asking me this question. Our new version of the ERP system to support some of the accounts into a single account, the account can contain multiple shipping addresses. This method should be able to solve most problems.
However, how to determine which account currently does under the same customer all? Of my staff have done, they found many accounts using the contact address, company name, Deng Jun different, but represent the same or a subsidiary body of customers around the world department. So in order to identify all of these duplicate accounts, and the fall to a "master" account, it is really not an easy task. Moreover, even if the customer agrees we follow this method to merge their accounts, it is difficult to achieve. I need to further explore this option, once the result will immediately tell you.
Bill
We can find e-mail, Wexford different systems for different business functions, and for enterprises of different business units within the same operational functions in separate systems. Companies are looking to implement a single ERP program to unify all systems. In fact, this process is extremely complex, as companies on how to integrate the current in the main file of each system and eliminate duplicate records on this issue, there is simply no start.
Wexford hopes to reap from the benefits of ERP implementation is one of optimizing customer data processing, including the issuance of a single invoice for each customer the ability. A single large customer demand for a comprehensive bill to simplify the payment process, and its financial dealings with the Wexford to be traced. In most cases, these customers have signed with Wexford bulk purchasing discount agreements. They worry that if placed in front of a lot of separate bills, may not get the agreement of the most favorable rates.
ERP system with business needs to achieve the above the only way the company can find a pair of accounts to "cluster" approach, identifying by the same company opened all accounts, although these accounts have a different company name and contact address. In general, accounts are in accordance with these customers where the subsidiary company name or the name of different departments to create.
Wexford in the customer master data may be located in multiple different systems. Each of the different existing systems are likely to have a separate customer master file. To these customer master data integration, it means that the main document must identify all accounts to determine the ownership of the same customer account which can be summarized to a single account, while also taking into account the internal structure of the client company.
Customer data integration solution (CDI) to help companies to adjust customer accounts, create a character with the same "main customer accounts." The main account cross-reference the Wexford application system all representing the same customer account information. This means that Wexford as long as all links to the same customer account in a simple summary of sales, you can accurately track the company's overall sales trend of these customers. Sound CDI solution will support multiple client level, allowing easy Wexford for their business structure in all aspects of customer sales tracking.
Address master data management problems
From: Tony, CEO
To: Bill, CIO
Topic: pay the rebate
Bill,
Accurate view of your company's ability to pay a large amount of customer rebates part of this anxiety, I have asked the finance department assigned officers rebates and discounts in the contract provides that the amount actually paid by the company to conduct random audits.
The results are surprising, to say the least. We found that sampling, almost all of our customers say when in the calculation of discounts and rebates, not all of the customer purchase information included. When they complain that there is no reasonable discount, we are simply unable to produce a complete report them to verify all transactions both sides. Finally, in order to satisfy customers, we have to respect the customer's rhetoric, the rebate amount is entirely their final say, or trying to consult. Also, we discovered during audit, rebates and discounts over the number of pay is not small. No doubt, I think we need to find ways to solve this problem as soon as possible. What do you suggest?
Tony
From: Bill, CIO
To: Tony, CEO
Theme: pay the rebate on
Tony,
I have studied this issue. We need to all belong to the same customer's account to connect. We can not force open an account for each customer only because they may need to set up multiple accounts to meet the needs of different regions. However, we must be able to identify which account is indeed open by the same company. I think we can try to use customer data integration solutions to deal with this difficult problem. In this way, we can make more rational management of customer accounts, for the new ERP system to provide higher quality data. This program is the key CDI technology ERP project is not yet included in the budget. I have asked the teams to conduct investigations, they will tell me roughly the cost.
Bill
Obviously, if companies can not connect to client accounts, a serious operational risk will be inevitable. Wexford current situation will lead to its relationships with customers, keep distant, rigid, because the customers should be worried about being unable to enjoy discounts and rebates. As Wexford proved unable to provide a favorable end, these customers will request another payment, and Wexford, in most cases will always be more to pay them. Many ERP implementation projects have not solved in time master data management or customer data integration problems, the company until the system during testing or operational problems encountered until after the rush, as Wexford current situation.
Data loading and migration for the cost of ERP implementation is usually no more than 10% of project budget. Project managers believe that simply load data from legacy systems to new ERP system, get away. However, this idea greatly underestimated the clean integration of data loaded to the new system must cost energy.
The fact is, data cleansing, migration, load and integrate the ERP projects usually consume more than 30% of the input. This is far more than 10% of the regular budget. Result, many items of data loaded into data-driven problems or other crucial moments of crisis.
CDI solutions to business transactions through Wexford accurate look, see what transactions happen at the same customer, no matter how much the customer has a different account, thus helping Wexford reasonable assessment of each customer's business information. In this way, customers can not only be separate from Wexford and (accurately) a unified bill, Wexford can clearly understand that they pay based on customer purchases a discount and rebate amounts are accurate.
Address other key issues
To: Bill, CIO
From: Tony, CEO
Topic: Data Quality Improvement
Bill,
Great, our customer data integration plan a success! The plan really help us improve the quality of the data, let us recognize that investment in the new ERP system, the overall advantages. Really hope that we start from the ERP project built the system!
I want you and thank your team is your CDI is the success of the project found the missing elements, and rapid decision-making, found a solution. CDI solutions allow our customers a better understanding of success in improving the data quality. I once again on behalf of Wexford grateful to you!
Tony
To: Tony, CEO
From: Bill, CIO
Tony,
You're welcome, this is what I should do.
Bill
Many companies are easy to accidentally strayed into such a trap, they are thinking that data to fully support existing business operations, the data quality meets the ERP system requirements. Each set of the old system will have some flaws, but the system redundancy and inconsistent data (as opposed to other systems in terms of data) does not affect the normal operation of a single system. If Wexford from a global perspective to the functions of these systems will find themselves troubled by data problems.
However, when the data is locked in a single application, the firm will be difficult to find these data problems. Wexford links to business processes through an integrated ERP application, you can shut out the potential data problems. With CDI solutions, such as the Wexford enterprise like ERP can fully release the greatest investment potential.
Similarly, companies in the choice of CDI solutions should also give careful consideration to its ultimate goal. Unlike the simple things well from the many solutions to choose, or decide which solutions to achieve more accurate results that simple. Search engine is also a key part of the processing performance, which determines value in order to achieve the ultimate goal, the system should have run faster.