Milestones on the Master Data Management “Road Map”
Monday, November 12, 2007
Milestones on the MDM Road Map
Research
analysts at the MDM Institute annually produce a set of twelve
milestones for their “MDM Road Map” to help Global 5000 enterprises
focus efforts for their own large-scale, mission-critical CDI-MDM
projects. For planning purposes, we
thus identify 10-12 “milestones” which we then explore and publish via our MDM Alerts research newsletter. This
set of strategic planning assumptions presents an enlightening view of
the key trends & issues facing IT organizations during 2008-09 &
beyond by highlighting:
- Planning for the juggernaut of MDM market momentum, maturation & consolidation
- Coping with the skills shortage for data governance, enterprise architecture, et al.
- Identifying the essential (vs. desirable) features of an enterprise-strength MDM initiative
Thus
the 2008-09 “MDM road map” helps Global 5000 enterprises (and IT vendors
selling into this space) utilize these “strategic planning assumptions”
to help focus their own road maps on large-scale and mission-critical
MDM projects. During the following six
months, we use these milestones as the focus for our analyst research
in that every research report we write either confirms or evolves one
or more milestones as its premise. The remainder of this CD-MDMI Alert will
present the below MDM Milestones:
- During 2008, the MDM market will continue to shift gears from “early adopter” to
“mainstream” as 95%+ of financial services, communications services, high tech & pharmaceutical/life sciences enterprises actively explore
to replace homegrown MDM solutions
- Through 2009-10, verticalization/horizontalization of MDM solutions will expand beyond corporate financial reporting, EMPI healthcare, etc. into financial services & government especially
- By 2012, the market for enterprise MDM solutions (software & services) as both strategic initiatives & to refresh aging legacy MDM capabilities will exceed US$3B
- During 2008, MDM solutions such as IBM, ORCL, SAP, & TDC will monopolize majority market share in the G5000 enterprise; while mid-market solutions arrive from MSFT, Nimaya, & ORCL plus Data Quality vendors (Pitney Bowes/G1, SAS/DataFlux, Trillium)
- Through 2009-10, both mega & best-of-breed MDM vendors will aggrandize the traditional master customer DB business of Data Service Providers (e.g., ACXM, DNB, & Experian) as these vendors sprint to deliver on-premise CDI hub solutions
- By 2012, every major application & database vendor will provide either native or OEMed MDM capability – including DOX, MSFT, & CRM
- During 2008, mega IT vendors (IBM, ORCL, SAP) will continue M&A-driven R&D gyrations in moving to an enterprise MDM-centric portfolio with ORCL & SAP challenged additionally in moving from silo’ed application architectures into SOA-based architectures (Fusion & NetWeaver)
- By 2009-10, IBM (ASCL/CRSW/DMC/DWL/LAS/Princeton Softech/SRD/Trigo/Unicorn) & ORCL (HYSL/iFlex/JDE/PSFT/RETK/SEBL/Sunposis) will begin to overcome most architectural/BPM/ metadata/platform issues that confounded SAP earlier (A2i/BOBJ/Callixa)
- Through 2009-10, mega IT vendors (IBM, ORCL, SAP, & TDC) will dominate the MDM market with niche/best-of-breed vendors (DNB/Purisma, i2, Initiate Systems, Kalido, Siperian) thriving in specific industries & horizontal/corporate applications
- During 2008, G5000 size enterprises will spend US$1M for MDM software, with an additional US$3-4M for SI services; Global Service Providers will operate under this price floor by applying highly-customized, labor intensive frameworks & related accelerators
- Throughout 2009-10, skill shortages will greatly inflame project costs as demand for data stewards, enterprise data architects, & individuals with data governance experience outstrip market supply; concurrently, SIs will fill the void in their classic style by baiting & switching senior veterans for junior rookies
- By 2012, market will stabilize as enterprises react by training & protecting their own MDM staff with specific product & project expertise; until then, enterprises will struggle with re-skilling same resources multiple times as emerging/evolving data management technologies mature (e.g., Fusion, Netweaver, …)
- During 2008, most enterprises will struggle with cross-enterprise data governance scope as they initially focus on customer, vendor, & product; enterprise-level data governance that includes entire master data lifecycle (creation, promotion, archiving, …) will be mandated as a core deliverable of large-scale MDM projects
- Through 2009-10, major systems integrators & MDM boutiques will focus on productizing data governance frameworks while MDM software providers struggle to link governance process with process hub technologies & enterprises struggle to realize enterprise data governance in a cost-effective way
- By 2011-12, both corporate & LOB data stewards will be a common position as Global 5000 enterprises formalize this function amidst increasing de facto & de jeure recognition of information as a corporate asset
- During 2008, party & product data interdependencies will quickly broaden MDM requirements – i.e., from “customer” to “product” to “vendor”; concurrently, vendor dogma will promote nouveau approaches such as collaborative MDM to assuage multi-entity conundrum
- Through 2009-10, select best-of-breed vendors (DNB/Purisma, Kalido, Initiate Systems, Siperian) will provide multi-hub (entity, architecture & brand) connectivity via hierarchy management extensions
- Not until 2011-12, will mega MDM vendors rewire foundational software to fully support strategic application infrastructure (Fusion, NetWeaver, …) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th generation, full spectrum hubs that support both structured & unstructured information
- During 2008, vendors will expose MDM capabilities as “always on” services in loosely-coupled architectures; enterprises will begin establishing a central, business-side led data management team with embedded data quality & external data update services in flow of core business processes
- During 2009-10, mega vendors (IBM, ORCL, SAP, TDC) will focus significant resources on “industry content” of data models which will force specialist vendors to stay “data model lite” via specialization in B2B/B2B2C hierarchy management & distributed MDM
- Not until 2011-12, will mega MDM vendors rewire foundational software to fully support strategic application infrastructure (Fusion, NetWeaver, …) & have completed transitioning from client/server to SOA; concurrently, G5000 business requirements will drive vendors into 4th generation, full spectrum hubs that support both structured & unstructured information
- During 2008, independent Data Quality vendors (AddressDoctor, G1, Human Inference, Trillium) will focus on name & address cleansing as they struggle against better funded match/merge & data profiling capabilities increasingly integrated with mega vendor MDM solutions; ongoing challenge will be aggregation of customer data balanced against privacy dictates
- During 2008-09, MDM capabilities for classifying, discovering & archiving party data/relationships while maintaining privacy will become a major requirement; concurrently, users will be challenged to discern the price/performance/scalability & accuracy of matching algorithms; use of cross platform/cross brand customer keys will become core to enabling seamless loyalty programs & online services
- By 2009-10, sophisticated hierarchy management capabilities will include “global IDs” as mainstay feature for all MDM vendors to link both legacy & newly-built hubs with Data Service Providers’ enrichment data; concurrently, support for metadata repositories to link mega vendors’ multitude of acquisitions will continue to significantly lag
- During 2008-09, enterprises will focus more on degree to which “party data quality” (consumer, subscriber, owner, member, vendor, establishment, contact, …) is sufficient to meet requirements of diffuse business entities
- By 2009, ”quality” metrics will increasingly be defined specific to purpose of particular business function (product development, marketing, sales, order admin, service, compliance, analytics, …) & in turn be driven by enterprise-wide data governance initiatives
- Through 2010-11, wide deployment of loosely-coupled SOA architectures will catalyze consumption of highly-optimized data quality functions as made available via both mega Data Service Provider & enterprise application vendors
- During 2008, the convergence of MDM & business intelligence (BI) will accelerate as enterprises leverage MDM concepts in a BI context
- Through 2009-10, ongoing agglomeration of Analytical MDM & Operational MDM will increasingly benefit enterprises by blending such transactional hubs with master reference data repository as well as provide greater visibility into the impact of master data quality on business performance metrics
- By 2012, inline & real-time analytics derived from MDM-enabled aggregation of both transactional & historical data will have become a major source of sustainable competitive differentiation for Global 5000 enterprises
- During 2008, MDM vendors will lag their BPM counterparts in providing workflow orchestration to synchronize the trusted sources that comprise a federated master data store
- Through 2009-10, the mega CDI-MDM vendors (IBM, ORCL, SAP) will struggle to provide BPEL-compatible workflows while specialist MDM solutions rush distributed Collaborative MDM capabilities to market
- By 2012, without such flexible workflows, organizations will merely rebuild the same master data files they evolved the past 15-20 years with their ERP & CRM infrastructures
- Through 2008, the unique properties & behavior of master reference data will spawn a series of vertical applications & specialized features within MDM solutions
- During 2009-10, semantically-enabled metadata will enable “search” for both structured & unstructured info across a variety of applications such as catalog management & deep web search, & enterprise search
- By 2012, enterprise semantics & SOA-enabled data services will provide the technology foundation for policy hubs; concurrently, the 4th generation of hubs will innately support Analytical, Operational, & Collaborative & MDM business services
Hopefully, the milestones discussed above will catalyze discussions (and
consensus) within your IT organization regarding the road map IT
professionals must craft for the next 3-5 years.
We look forward to your emails and phone calls during the next six months as we evolve these planning assumptions.
“Heads up” from the CDI front lines and see you at the “last” annual CDI-MDM SUMMIT in NYC this November 14-16.
Aaron Zornes
Chief Research Officer
The MDM Institute
mail to: editor@tcdii.com
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