Corporate master data is a critical asset that must be increasingly managed within and beyond the enterprise, primarily to solve business problems in compliance, customer service, sales, and marketing. Such master data may be indentified, harmonized and integrated at multiple levels of the software stack to materialize a single customer view (or supplier, product, view etc.).
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Enterprise Master Data Management:
Market Review & Forecast for 2008-12 An MDM Institute MarketPulse™ In-Depth Report
EXECUTIVE SUMMARY Corporate master data is a critical asset that must be increasingly managed within and beyond the enterprise — primarily to solve business problems in compliance, customer service, sales, and marketing. Such master data may be indentified, harmonized and integrated at multiple levels of the software stack to materialize a “single customer view” (or supplier, product, view etc.). Master data management (MDM) solutions will vary by industry in terms of tactical approaches taken – e.g., pharmaceutical/life sciences will adopt semi-batch, database-centric approaches for master physician data to be deployed to sales forces, while financial services providers and online retailers will require near real- time, business process-centric solutions to compete in the business-to-consumer online world. During 2008-09, most large enterprises will focus on MDM by deploying rd3 generation packaged MDM solutions to deliver panoramic customer, product and supplier views across multiple channels, business lines, and heterogeneous IT th environments. By 2010-11, 4 generation solutions will begin to predominate due to requirements for multiple master entities, unstructured data, etc. By 2012, more than 80% of the Global 5000 size enterprises will have committed to enterprise MDM as a core business strategy and have implemented at least one master entity – whether party (customer/supplier/citizen) or product. The aggregate enterprise MDM market (customer and product hubs, plus systems implementation services) totaled US$730 million at YE2007 and will reach US$2 billion by the end of 2012. Software sales are but one portion as MDM systems integration services reached US$510 million alone during 2007 and are projected to exceed US$1.3 billion per year by 201 2. Aaron Zornes Chief Research Officer The MDM Institute September 2008 Enterprise Master Data Management: Market Review & Forecast for 2008-12 Page 2 of 7 Executive summary The market for master data management (MDM) solutions continues to grow, diversify, and mature. Mega vendors IBM, Oracle, and SAP are the dominant solutions with more than 80% of the total market between them, however, best-of-breed vendors continue to proliferate and accelerate their market share across this rapidly growing market. Unlike other analyst research reports which measure MDM as an aggregate/macro market (including data quality tools, data service provider/hosting revenues, and more) this is the first report to exclusively examine the “enterprise MDM” market under a microscope – e.g., the sum of customer data integration solutions that are also enabled to support product information management masters. MDM rationale. Enterprises are increasingly turning towards MDM as a means to increase business optimization by rationalizing and sharing master data and processes – e.g., a single view of the customer/product/supplier. Corporate master data is a critical asset that must be increasingly managed within and beyond the enterprise — primarily to solve business problems in compliance, customer service, sales, and marketing. Such master data may be indentified, harmonized and integrated at multiple levels of the software stack to materialize a “single customer view” (or supplier, product, view etc.). Master data management (MDM) solutions will vary by industry in terms of tactical approaches taken – e.g., pharmaceutical/life sciences will adopt semi-batch, database-centric approaches for master physician data to be deployed to sales forces, while financial services providers and online retailers will require near real-time, business process-centric solutions to compete in the business-to-consumer (B2C) online world. Since 2004, given the choice of building or buying an MDM solution, the trend has clearly been to purchase off-the-shelf MDM packaged applications and customize them to the organization’s needs – similar to prior trends in Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). The two primary MDM markets remain: customer master data (referred to as Customer Data Integration or CDI) and product master data (referred to as Product Information Management or PIM). Based o... [download for more]
