Disruptive Forces in MDM Land

MDM 2017 disruptionFor the second time this year there is a Gartner Magic Quadrant for Master Data Management Solutions out. The two leaders, Orchestra Networks and Informatica, have released their free copies here and here.

Now Gartner have stopped having a list of vendors on the market too small to be in the actual quadrant. So, if you are looking for new thinking, you will have to read the section about disruptive forces in the MDM market.

Gartner says that every market experiences disruptive forces that influence its overall shape and trajectory over time, and that inspire innovation, both transformational and incremental. According to Gartner, those most prominent in the MDM market appear diametrically opposed.

The current market is dominated by vendors who have predominantly taken a platform-centric approach involving robust technology stacks categorized as application-neutral hub-based solutions. Thus, the business value of the resulting master data is realized through utilization of that data within business applications or suites, or analytics platforms, external to the MDM solution — such as CRM, ERP and e-commerce systems, and data warehouses.

One disruptive force against that is an increase in business applications or suites with embedded ADM (Application Data Management) capabilities that address organizational needs for data management, including MDM (to varying degrees), while also managing nonmaster data for the pertinent application. Gartner states that application-centric approaches for some organizations can return greater value than platform-centric approaches in the short term and do so at reduced cost.

The opposing disruptive force stems from the emergence of more generalized data management solutions. These provide for unified execution logic on top of what is effectively an integrated technology stack. Vendors envision the primary consumption model to be cloud-based subscription. As such, these solutions will also provide a means for midmarket organizations and SMBs to procure advanced data management capabilities (such as MDM) using this model of consumption. Executed crisply, cloud-based subscriptions to these solutions may even moderate the rise of cloud-based MDM offerings.

Regular readers of this blog may guess, that I see a coming third disruptive force in MDM land, being specialized data management services for business ecosystems as explored in the post Ecosystems are The Future of Digital and MDM.

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