The MDM and Governance Ripple Effect

Register now

January 20, 2012 – The spiking importance of master data management disciplines and investment over the next four years will put more pressure on CIOs and a serious gap in governance spending, according to a new report from analyst firm Gartner.

As part of its annual forecasts for information management markets, Gartner outlined a handful of predictions on MDM implementations, failures, spending and jobs in its report, “Predicts 2012: Information Governance and MDM Programs Gain Traction.”

Governance has risen near the top of enterprise IT plans due to problems with exposed information and increased regulation stemming from the recent recession, according to statements in the report from Gartner VP and Distinguished Analyst Ted Friedman.

To that end, revenue from MDM software is expected to jump 21 percent this year, hitting an all-time high of $1.9 billion, according to Gartner’s forecast.

Failing to implement information governance programs successfully will cost one-fifth of CIOs in regulated industries their jobs, Gartner stated. Debra Logan, VP and distinguished analyst at Gartner, said in the report that internal and government compliance requirements will increase responsibility levels of governance initiatives, and many CIOs and enterprise legal officers may have to take the fall for failures.

“When organizations suffer high-profile data losses, especially involving violations of the privacy of citizens or consumers, they suffer serious reputational damage and often incur fines or other sanctions. IT leaders will have to take at least part of the blame for these incidents.”

Through 2016, data governance plans will spread to those concerning information quality, lifecycle management, and privacy and security, subsequently engaging more enterprise stakeholders in governance initiatives, Gartner stated. As governance and MDM become more “evergreen” in their place within enterprise IT plans because of this broadening, Gartner forecasted that spending will need to grow five times its current level to lead to success.

Even with the growing role of MDM programs, many IT managers will fail to demonstrate its business value, or simply not receive support of necessary business process changes, according to Gartner. Because of this, Gartner predicted that only 33 percent of MDM programs will succeed in providing information governance value by 2016.

More information on Gartner’s forecast for MDM in the coming years is available here.

For reprint and licensing requests for this article, click here.