Originally published June 26, 2007
According to a comprehensive research study conducted by Ventana Research, the need for both timely and accurate information has driven both business and IT management to adopt master data management (MDM) solutions in order to link their information and data management efforts in support of business intelligence (BI) and performance management initiatives. The study entitled, Master Data Management: Business and Technology Trends, found that MDM is gaining momentum as nearly half (49 percent) of all respondents said they have an MDM project planned or under investigation, while more than a quarter (27 percent) have an MDM initiative already under way. Citing the need to improve the management of multiple data entities – with customer, product and financial data identified as top priorities – more than two out of three (70 percent) companies surveyed stated that a centralized hub is the most critical technical component to their over-all MDM strategy.
Surveying an audience of business and IT users, the study showed that companies are looking to use MDM to resolve both analytical and operational functions. At the analytical level, 34 percent of respondents said their top priority was to improve the accuracy and consistency of reporting followed by gaining control over the information needed to effectively market and sell products. At the operational level, the top priority for 70 percent of respondents was to create a centralized data hub that can be used to synchronize data across a multitude of application systems and data warehouses. With a focus on improving functions that involve the customer, the survey found that a top business priority is to create a golden record of customer data and to produce a correlating enterprise-wide view of the customer.
“Competitive pressures and regulatory requirements are forcing companies to focus more on their customers and to take a long hard look at the integrity of their information assets,”
said Mark Smith, CEO and EVP Research at Ventana Research. “While MDM is clearly attracting the attention of corporations, the survey found that the innovative companies have calculated
the lost value that data errors and data inconsistencies cost their business, have developed a solid business case to support the need for change, and have embarked on a committed MDM
project– even if it involves starting small to address a specific business issue with plans to grow and support broader data governance processes and information management
This BeyeNETWORK news item contains information from a recent press release by the company mentioned.