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Master data management has become one of the hottest topics in IT, with good reason. Master data is indispensable to doing business. It includes the business objects, definitions, classifications and terminology that describe business information, as well as the contexts for recording transactional data and analyzing it. As with any new technology market, there are many opinions and few facts circulating in regard to MDM industry trends and their relevance for business organizations large and small. Ventana Research undertook and now has completed a thorough industry research program, sponsored by IBM and SAP and by media partners ASCET, BI Review, BusinessIntelligernce.com, The CFO Project, ICCM, Intelligent Enterprise, IT Business Edge, Manufacturing.net, SearchDataManagement.com, SearchOracle.com, SearchSAP.com and Technology Evaluation Centers, to fill this knowledge gap. Our research dug deeply into the complexity of data and systems, users' deployment experiences and their plans for future adoption and expansion. We conducted the research in July 2006 and analyzed results from 515 qualified organizations in manufacturing, services and public sector industries.
In processing and analyzing the research, we applied the Ventana Research Maturity Model, which ranks maturity in four increasingly sophisticated levels: Tactical, Advanced, Strategic and Innovative. Overall, our analysis indicates, organizational maturity with respect to MDM currently is low, standing at a point between Tactical (36 percent of respondents) and Advanced (34 percent); this finding indicates substantial room for maturation in organizational MDM deployments and use.
This research reveals what Ventana Research believes are several significant trends in MDM. Overall, we found a growing awareness of and interest in master data management. More than 80 percent of respondents reported that they were aware of the meaning of the term "master data management," and 18 to 25 percent said they were actively investigating the possible benefits for their business unit or enterprise. Along similar lines, 15 to 22 percent of organizations have already initiated MDM projects at either the business unit or enterprise level.
Of those who expressed a view as to the expected benefits from implementing MDM, 42 percent ranked improving timeliness and consistency of information as most important. Among master data objects, Customer was rated the most important object to be managed, with Product and Financial Reporting tied for second. Yet the research also found that one-third of organizations have not adopted product- or customer-centric MDM technology, and more than half would like to purchase the technology rather than build it.
Assessment
Because master data management is in the early stages of user awareness and education, many organizations do not have a strategy to embed it within their processes and technology landscapes. Ventana Research recommends that organizations take an independent approach to MDM that does not require upgrades or changes to existing environments but instead builds a layered information management strategy. Such an approach will rapidly improve the accuracy and consistency of data across the enterprise. Our research leads us to advise that the definition of MDM and the use case scenarios for operational and analytic purposes be clearly defined prior to adoption of any technology and that support from executive leadership and line-of-business leaders is among the prerequisites for success.
Mark is responsible for the overall business and research direction of Ventana Research and drives the global research agenda covering both business and technology areas. He defined the blueprint and methodology for improving business by using benchmark research to provide guidance across people, processes, information and technology. Mark is an expert in enterprise software and business technology innovations including: business analytics, big data, cloud computing, business collaboration, mobile technology and social media. Mark has held CMO, research and product development roles at research and software companies. Mark started Ventana Research more than a decade ago; he has worked in the software industry for 25 years leading innovations in research and technology. Mark was rated the 2011 software industry analyst of the year by The Institute of Industry Analyst Relations (IIAR). Mark will also be ranked as one of the top ten technology influencers in 2012 by Human Resources Executive magazine. Check out Mark's Klout Score or check out his Kred Score. Mark can be found on Twitter at @marksmithvr, on LinkedIn, on Google+ and can be reached via email at mark.smith@ventanaresearch.com and read his blog at http://marksmith.ventanaresearch.com
