Are your industrial AI initiatives stuck? Start with master data
Industrial companies are rushing to adopt AI, advanced analytics, and many other digital systems that demand data to function. Yet few grasp what is the prerequisite for any success. It’s well-managed master data, which too often is left in neglect. Start treating master data as the crown jewel in your company and stop losing productivity, making poor investments, and struggling with regulations.
Master your master data – stop losing productivity, making poor investments, and struggling with regulations
Organizations often overlook the fact that master data sits at the center of every operational and financial decision. It defines which assets, products, and manufacturing processes exist, how products are made, what condition they are in, and how they perform. Without this foundation, companies operate on incomplete information, weakening both efficiency and competitiveness.
At the same time, artificial intelligence and analytics promise efficiency gains. On one condition, though: the underlying data must be reliable and available to AI. Many organizations discover the true cost of neglect only when their AI initiatives stall.
“Some companies that are eager to adopt AI have such a low digital maturity that it’s simply not possible for them to even begin. The problem isn’t the tools, but missing, inconsistent, or inaccurate information,” says Etteplan’s Lina Bäckman, Senior Service Solutions Manager, specialized in Asset Information Management and Data.
DPP and other regulations demand master data
Regulatory scrutiny is making this gap harder to ignore. New EU regulations such as the Digital Product Passport (DPP) and NIS2, extensive safety requirements, and strict documentation demands require companies to produce and maintain accurate information, sometimes at a moment’s notice.
“When authorities request data following an accident, many companies struggle to locate the necessary information. They end up spending excessive amounts of time gathering data that should already be readily available. No new technology or software can solve this issue. Only effective master data management can”, Lina Bäckman notes.
The financial impact of poor digital maturity is far from abstract. According to many studies, employees in industrial companies commonly spend 20–30% of their time searching for, validating, or recreating information. Major asset projects can suffer unnecessary extra costs if drawings need to be redone, components are built incorrectly, or installations need rework. Errors could be built into the asset’s entire lifecycle.
Typical consequences of poor master data include:
• Lost productivity due to time spent locating or validating information
• Inability to adopt AI or modern analytics
• Extra hard to comply to regulations
• Avoidable downtime and maintenance inefficiency
• Bloated inventories and unnecessary spare-part purchases
• Costly rework or incorrect installations
• Increased safety and security risks
• Inability to use warranties due to missing or wrong data, causing unnecessary costs
Master data management: tangible and immediate benefits
When organizations finally take determined steps to improve their master data, the benefits are immediate and measurable. For example, one electric grid operator had been missing out on state compensation for infrastructure upgrades because crucial asset information was scattered and incomplete.
“After we helped them reconstruct their asset registry, they suddenly received the compensation they were entitled to because they could prove what they had to authorities,” Bäckman explains. “The data existed, but without structure it held no value. Once organized, it became money.” Still, tools alone cannot fix the problem. True transformation begins with raising digital maturity, creating governance for data, and building a culture that cherishes the value of master data.
“Most companies have documented processes, but they’re poorly communicated and rarely followed. Culture comes first. Then comes ownership. If nobody owns the data, nothing happens,” Bäckman says.
Is your data delivering its full potential?
Clear responsibilities and disciplined processes form the backbone of sustainable digital maturity. This philosophy aligns with the ISO 55 000 standard, which emphasizes data-driven decision-making to optimize asset investments and maintenance. Ultimately, the question for industrial leaders is not whether data has value, but whether they are capturing it.
With regulatory demands tightening and digital technologies advancing, organizations that invest in robust master data management gain both operational clarity and strategic advantage. Those who do not risk falling behind in a world where high-quality data is the key to success.
Curious to find out more about master data and its immense impact on industrial operations? Check out this e-guide that presents a roadmap to raise the digital maturity and capture the value of good master data management!