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Using Unified Customer Data Visibility to Improve Revenue, Retention and Satisfaction

By David Loshin

This paper reviews some barriers to success of MDM programs, especially when the driving force is the accumulation of data from multiple source systems with the objective of creating a single source of truth. However, when an organization can narrow the scope to look at specific value drivers, there are opportunities for incremental acceptance and adoption of a master data resource.

The paper then examines three challenges to success:

1. Structural inconsistency – Data structures and formats are not aligned
2. Semantic inconsistency – Data element meanings are not aligned
3. Program sustainability – An under-investment in the proper resources to maintain the master data resource

The adjusted approach to MDM suggested in this paper is that a consolidated and unified view of specific master data need not be the only “source of truth.” Instead, consider creating master data repositories targeted at satisfying the needs of specific sets of business or operational processes that can benefit from that unified view, such as those applications and processes relying on master customer data sets supporting increasing revenues, reducing attrition or increasing customer satisfaction. Using objectives that are aligned with corporate strategies enables the technical teams to define performance measures for data that reflect added value to the business. The paper follows with recommendations for soliciting and documenting the requirements for a unified view of the customer, followed by some steps for harmonizing structure and semantics.

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