Key Reference Data Business Processes and how they benefit from RDM
A vast majority of time spent by corporations today is focused on the business processes that involve reference data – standardizing it, sharing it, avoiding manually cleansing it, and using it to comply with regulations. It’s why having the most up-to-date reference data is critical in today’s economy and why Reference Data Management is now so critical to you.
Below are just a few examples of business processes that depend on good, accurate and up-to-date reference data.
Reference Data Standardization
Does your team spend hours manually cleansing reference codes? Many customers are frustrated by different reference codes that are inconsistent across the organization. To compound the problem, there are often duplicated manual efforts across teams to standardize codes. With a foundational RDM system underpinning your enterprise information management strategy, you can reduce this duplicated manual effort, cutting costs and minimizing errors.
Can you easily “drill down” and “roll up” the hierarchies in your data? Does it require a lot of work and several days for IT to make a few small tweaks to hierarchies? Hierarchical data is widespread in most organizations but they often don’t have the right tools to manage these hierarchies. Either the data is not easily visualized as a hierarchy or it is inflexible and locked down so that the business has to jump through hoops to make changes. A strong RDM system allows you to be in charge of creating and managing your own reference data hierarchies, saving time and reducing errors.
Is your company fully prepared for an audit? Are you worried that disorganized data may increase the risk of an audit? Many organizations are so busy trying to provide access to their data that they don’t have bandwidth to create systematic audit trails should operations ever be called into question. A good RDM platform will track your reference data over time and allow you to quickly demonstrate compliance at lower cost with reduced risk.
Are you struggling to get a uniform, enterprise-wide view of spending in your organization? Without standardized reference data, most organizations cannot get an overview of the spending within their organizations, resulting in lost opportunities to cut costs. This includes external reference data like languages, regions, and currencies. It also includes internal reference data like corporate hierarchies, sales regions, expense categories, and procurement codes. A strong RDM strategy maps references codes between disparate systems. It accelerates the analysis of spend data and allows you to avoid leaving money on the table.
Do you struggle to collaborate with your partners (customers and suppliers) and internal departments because you lack a common classification system? Many organizations waste time and money translating data across partners and localizing data in multi-national companies. With a solid RDM system you can reduce manual and time-consuming efforts with product standardization and reference data localization to ensure consistent data across your organization.
RDM is the only cost-effective solution to integrate and standardize your reference data definitions. Other processes include, Project Management, Global Expansion, Inventory management, Onboarding Suppliers, and Supply Chain Optimization.