MDM Research

Just to let you know that the Information Difference has released its first piece of primary market research, as reported by IT Pro. There are some intriguing snippets in the survey results, as well as some rather more expected results, or the “well, duh” results as Homer Simpson might say.

13% of the (mostly larger) 112 companies surveyed had over 100 systems that hold and maintain customer data, which gives some idea of the scale of the problem that MDM is tackling. It is bit more than “just put in a hub” when you have systems at this level of complexity.

Given the generally flaky level of data quality reported, I found it surprising that nearly a third of the companies in the survey had not purchased an automated data quality tool.

The good thing was that plenty of companies seem to have begin measuring the costs of poor master data, and those costs are high, which should make it easier to justify master data management initiatives.

4 thoughts on “MDM Research”

  1. @Senthil, I think another consideration is how often the master data changes in the ERP and how much history you want to keep about those changes. For the case of SAP, if you have to delve into the Basis level to do some of the configuration, or you have to change some ABAP because of some new groupings, how much effort is that? Some companies change their sales hierarchies every month and also need to keep track of those changes for commission purposes. The more ‘stock’ you can keep your ERP and put the rich segmentation into the data warehousing level (fed via MDM), I think the better off you will be from a cost of support standpoint.

  2. Thanks for your question.

    This is one style of MDM, whereby no attempt is made to replace the operational; system’s ability to produce master data; instead, data is copied from these and then managed elsewhere, and usually fed from this system to others. If this is achieving a higher level of master data consistency than was there before then this seems to me a perfectly valid approach. Of course one questions this raises is whether there is really just one ERP system. Few companies actually have just a single instance of ERP, so in general you have to be careful to co-ordinate the master data within ERP as well as the systems that lie beyond it.

  3. I have seen some organizations buy an MDM tool and just use it as a Hierarchy Management tool. The entities are still getting maintained in the ERP system, and these MDM tools federate the data from the ERP and create hierarchies from it. Would it still be a good idea to invest in an MDM tool for such a requirement?

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