Data sharing is a data management approach to increase data quality at lower efforts and costs. To run smoothly through processes, data must meet certain business requirements in terms of accuracy, completeness, and up-to-dateness. Your data quality is fitness for use!
Why is data quality so important?
Within a data-driven world where almost everything becomes digital, your data quality is key for your business to run as smooth as possible. High quality data can improve your efficiency, effort & effectiveness and hence play a big role in reducing costs.
In terms of vendor and master data, fitness for use can be translated into KYC (know your customer) and Know Your Vendor. The better your master data represents real-world customers and vendors, the better your procurement, marketing, sales, and logistics objectives are met:
- Social compliance: Identify and replace rotten apples in your supply chain before press finds out.
- Post-merger success: Integration of clean customer and vendor data is much easier than being faced with duplicates, diverse address formats, or outdated identifiers.
- Predict delivery shortage: Knowing production locations of your vendors (today’s locations and not addresses from 2 years ago) helps to understand impacts of natural disasters or political unrest on your supply chain.
- Avoid payment fraud: Know the effective bank accounts of your vendors and do not transfer money to fraudsters. Share uncovered attacks with peers to fight back.
- Sanctions and embargos: Be aware of all regulation, globally, and identify affected customers before custom authorities do.
Data sharing as the best way to better data
Why maintain your customer or supplier data by yourself when you can share the burden with others? With data sharing, companies can share data quality rules, peer-validated data, and best practices with each other. Companies can also enrich their own records with public sources.
The availability of an external reference (or truth) bears the potential to align, collaborate, to share efforts of managing business partner data. This is what data sharing is about: a trusted network of companies who manage business partner data as a shared resource.
What value can data sharing bring?
The overall effect of data sharing can be measured along three dimensions of data management
From quality perspective, proactiveness can also be implemented with classical data management techniques like data quality metrics, data architecture, etc. However, efforts are significant: Data requirements must be collected continuously and globally, translated into data quality metrics, and implemented in dashboards and workflows. Existing business partners change their addresses, run out of business, or tax numbers expire, and all these changes are to be identified, proactively.
With Data Sharing, you get the same results (maybe even more proactiveness), but at lower efforts: Continuous collection of data requirements, monitoring of business partner status, design of data quality metrics, and many more tasks are shared across the Data Sharing Community and reduce the effort for each company.
Calculate your data sharing business case
With data sharing you increase data quality at lower costs. Data Sharing beats manual data maintenance both in efficiency and quality while lowering costs by up to 40%! Use the data sharing business calculator via the link (below).