by Andrew White | October 13, 2017 | Comments Off on Before Implementing ERP Systems, Implement Application Data Management!
I saw this headline in today’s Techtarget email: Before implementing ERP systems, identify their many components. I simply had to read it. It’s a good article. It nicely captures a traditional view of what comprises an “ERP system” – not that such a “system” really exists as one thing anymore. But that is not why I am here blogging. I am here because the article is way out of date, by about 20 years, in that it completely misses the challenge that business data has on the success of the ERP implementation. In other words, the role of data on business process integrity. The phrase, “data quality” is not mentioned once in the article.
The way it goes is like this: You pay the bill, you implement the ERP system, and the consultant and software vendors go home (paid) happy, as you do too. The “user acceptance” processes were a success. Then 7-9 months later we get “the” call. “Hello. Can you help us please? We just figured out our challenge – we have lost control of our data!”
The point is that data will slowly eat away at your business process integrity. It rarely harms you fatally but there are a few stories like that. For most organizations it is death by a thousand data (quality) issues. We all thought Master Data Management (not the lazy way in which MDM and master data is defined here) was the answer to our woes. That was a good start but MDM was not focused or designed to help with data quality in an ERP system.
MDM was meant to focus on that small amount of data that is shared across all the major business processes and apps – not within one or one suite. So we more recently came up with Application Data Management (ADM) which looks and smalls a lot like MDM, but is focused on the data used within one app or suite. Thus the focus is on a known data model, a known set of business processes. MDM is focused on an unknown and changing set of data models and business process models.
But this is kind of old news-new news. We need to think about “governing the least amount of data with the least amount of effort for the greatest return”. So even MDM and ADM need to be “right sized” for your organization. Now that’s a good idea for post-modern ERP.
Read Complimentary Relevant Research
Four Ways for CIOs to Cultivate Digital Dexterity in Leadership and the Workforce
To thrive in the digital era, enterprises need digital dexterity as an organizationwide competency. CIOs can boost their value by developing...
View Relevant Webinars
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.