The importance of data quality

In an era when data drives every decision, the management and quality of this data is critical for any business. But how do you ensure that the data you rely on is accurate, consistent and reliable?

On this page we explore the role of SAP Data Quality Management (SAP DQM) in achieving this objective. We explore how DQM not only ensures data integrity, but also contributes to better business decision-making, compliance and cost savings.

SAP Data Quality Management within SAP Master data Goverenance

SAP Data Quality Management (DQM) plays a crucial role within SAP Master Data Governance (MDG) by ensuring the quality of master data. SAP MDG is designed to centralize and standardize the governance, management and maintenance processes of master data within an organization. DQM supports this by providing tools and processes to ensure that the data being managed, validated, and created in SAP MDG is of high quality.

Added value DQM

The benefits of DQM are:

  • A comprehensive repository of well-defined and aligned Data Quality Rules that provide insight into implementation and use in master data processes.

  • Ensures "first time right" data entry by using centrally defined validation and derivation rules.

  • Experience the benefits of a consistent definition of data quality and continue to continuously evaluate and monitor the quality of your master data by applying validation rules.

  • Business partners and Materials master data are supported.

  • Collaborate in describing, cataloging and implementing validation and derivation rules.

  • Use the same rules in all MDG processes to ensure correct data entry.

  • Schedule quality evaluations, analyze evaluation results and initiate correction of erroneous data.

  • Get an overview of current data quality status and KPIs.

Examples of data quality rules

SAP DQM data quality rules can be used for both validation and data derivation. Some examples include:

  • The payment terms in the purchase data must match the payment terms at company code level.

  • For account group X, the reconciliation account should always be Y or Z.

  • The material product hierarchy in the sales data should match that in the basic data.

  • Derive the Profit center based on product hierarchy and plant.

By establishing clear and thorough data quality rules, "first time right" data entry can be enforced, while data quality becomes measurable and monitorable through KPIs.

Components of SAP DQM

Within SAP DQM, it talks about four fundamental elements that are essential for effective data management:

  1. Define Quality: Defining data quality rules is the first step in the process. Here you define what "good" data quality means to your organization and what "data quality rules" are needed in the system.

  2. Enter Quality: Entering quality data is critical to ensure that new and existing data meet established quality standards.

  3. Monitor Quality: Monitoring quality is an ongoing process where you regularly assess the state of the data to maintain quality.

  4. Improve Quality: Improving quality involves taking actions to resolve existing data quality problems and prevent future problems.

DQM Ready to Run

Based on our knowledge and experience, Avelon has developed a unique methodology for implementing DQM: DQM Ready to Run. This approach provides a standardized project methodology, a set of best practices, and a standard configuration for DQM, complemented by templates that accelerate implementation.

Examples of these templates, which accelerate the implementation of DQM, are:

  • DQM inspiration sessions

  • DQM Baseline setup guide

  • Demo recordings

  • A database of best practices and sample DQM rules (Rule Repository)

  • DQM analytics and reporting capabilities

  • DQM Best Practice Guide

During the implementation, we use our own demo system, so that your employees can immediately understand the capabilities of DQM and Ready to Run. Thanks to Ready to Run, implementation time is significantly reduced, and you benefit from a proven approach and setup.

More information

For more details on DQM, check out this blog post, which explains the various aspects of Data Quality Management. Would you like to discuss how your organization can benefit from the opportunities offered by SAP Master Data Governance? If so, please feel free to contact Sander van der Wijngaart. We are also happy to provide a demonstration or presentation so you can discover what benefits MDG can bring to your organization.

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