In this article, we’ll give some perspective on the current state of the Master Data Management (MDM) market.
Well-meaning skeptics have raised doubts about whether MDM initiatives have long-term viability, sufficient ROI or in fact, are just another system. This skepticism is, of course, understandable.
Every major new type of enterprise technology, such as Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM) goes through an adoption cycle, with early enthusiasm leading to the “Trough of Disillusionment” and eventually, the “Plateau of Productivity”. For more information, see Gartner’s definition of Hype Cycles.
And if you look at the history of MDM solutions over the past few years, the space was very fragmented, initially populated mainly by data quality and matching vendors.
But more recently, some innovations have come together in the MDM space so that it’s starting to offer real value to mainstream companies, not just early adopters.
There have been several innovations on the IT architecture front, such as Service-Oriented Architecture (SOA) and Business Process Execution Language (BPEL), plus new analytics capabilities, improved tools to facilitate data stewardship and more mature MDM hub platforms. All this adds up to a fast-changing landscape.
To add to the momentum, the top enterprise software players (like Oracle, IBM and SAP) have jumped feet first onto the MDM bandwagon, joining the best-of-breed players (like Purisma, Siperian and Initiate Systems) who helped launch the space, giving rise to a whole new ecosystem of system integrators, data service providers and an increasing trend toward global solutions beyond North America.
This growing ecosystem is driving significant growth for the MDM industry as a whole. There are exciting frontiers ahead.
For example, we’re already seeing some business process outsourcing relating to the creation and maintenance of an organization’s master data to an external provider.
At Hub Solution Designs, we’re excited to be part of the MDM wave of adoption from the very beginning. We see more growth, better solutions, and more organizations succeeding with MDM every day.
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