Growth on the MDM Market

As reported yesterday a new Gartner MDM Magic Quadrant is out.

MDM Growth
MDM license and maintenance revenue in M USD and growth %. Source: Gartner.

While the change in positions is limited the change in market share is more significant, if we look at the license and maintenance revenue estimates provided by Gartner. The numbers included in the new quadrant published in January 2020 are 2018 estimates. The figure here compares those numbers to the 2017 numbers included in the previous quadrant published in December 2018.

The trend is that the largest providers are not growing as fast as some of the midsize providers, where Reltio, Ataccama and Semarchy are going in the fast lane.

If any of the solution providers have some 2019 updates, please comment here.

The Latest MDM Magic Quadrant

With some delay the latest Gartner Magic Quadrant for Master Data Management Solutions has now been published and has began surfacing on the vendor websites.

I will get back with more take away. As a starter, a short look at the movements in the quadrant, where it can be observed that:

  • Informatica is heading towards the top-right corner
  • TIBCO Software has defended the second place held by Orchestra Networks following the take over
  • Semarchy is up in third position following the high jump into the challengers quadrant last year

MDM MQ 18 to 19Bigger picture here.

Download the report from Semarchy here or Informatica here.

It Is Black Friday and Cyber Monday All the Time at the Disruptive MDM / PIM / DQM List

The upcoming Black Friday and Cyber Monday are synonymous with good deals.

At the Disruptive MDM / PIM / DQM List there are good deals all the days.

As a potential buyer on the look for a solution covering your Master Data Management (MDM), Product Information Management (PIM) and/or Data Quality Management (DQM) needs you can use the free service that based on your context, scope and requirement selects the best fit solution(s). You can start here.

Black Friday

As a solution provider you can against a very modest fee register your solution here.

Happy Black Friday and Cyber Monday.

Combining Data Matching and Multidomain MDM

Data Matching GroupTwo of the most addressed data management topics on this blog is data matching and multidomain Master Data Management (MDM). In addition, I have also founded two LinkedIn Groups for people interested in one of or both topics.

The Data Matching Group has close to 2,000 members. In here we discus nerdy stuff as deduplication, identity resolution, deterministic matching using match codes, algorithms, pattern recognition, fuzzy logic, probabilistic learning, false negatives and false positives.

Check out the LinkedIn Data Matching Group here.

Multidomain MDM GroupThe Multi-Domain MDM Group has close to 2,500 members. In here we exchange knowledge on how to encompass more than a single master data domain in an MDM initiative. In that way the group also covers the evolution of MDM as the discipline – and solutions – has emerged from Customer Data Integration (CDI) and Product Information Management (PIM).

Check out the LinkedIn Multi-Domain MDM Group here.

The result of combining data matching and multi-domain MDM is golden records. The golden records are the foundation of having a 360-degree / single view of parties, locations, products and assets as examined in The Disruptive MDM / PIM / DQM List blog post Golden Records in Multidomain MDM.

Why Multienterprise MDM will Underpin Digital Transformation

I read (and write) a lot about why Master Data Management (MDM) is a core capability you need to succeed in digital transformation.

Over at the Profisee blog there is a post about that, extending the capability to be multidomain MDM. The post is called The Role of Multi-Domain MDM in Digital Transformation.

Also, at the Reltio blog as part of the #ModernDataMasters series, Tony Saldanha, author of the book  Why Digital Transformations Fail, explains: “Look at master data in terms of the entire virtual company – the total supply chain including your clients and suppliers – and create an ecosystem to drive standards across that.”

Tony continues: “The investment in master data within ecosystems is going to increase dramatically. People are going to realise that most of the waste that happens is at the seams of large organisations – not having a common language between the accounts payable of one company and the accounts receivable of another company means both companies are wasting resources and money.”

Multienterprise MDM Digital Transformation

This way of looking at MDM as something that goes beyond each organization and evolves to be ecosystem wide is also called Multienterprise MDM.

In my eyes this is a very important aspect of using MDM within digital transformation. This theme is further examined in the post Why is Your Digital Ecosystem and MDM the Place to Begin in Digital Transformation?

Unifying Data Quality Management, MDM and Data Governance

During the end of last century data quality management started to gain traction as organizations realized that the many different applications and related data stores in operation needed some form of hygiene. Data cleansing and data matching (aka deduplication) tools were introduced.

In the 00’s Master Data Management (MDM) arised as a discipline encompassing the required processes and the technology platforms you need to have to ensure a sustainable level of data quality in the master data used across many applications and data stores. The first MDM implementations were focused on a single master data domain – typically customer or product. Then multidomain MDM (embracing customer and other party master data, location, product and assets) has become mainstream and we see multienterprise MDM in the horizon, where master data will be shared in business ecosystems.

MDM also have some side disciplines as Product Information Management (PIM), Digital Asset Management (DAM) and Reference Data Management (RDM). Sharing of product information and related digital assets in business ecosystems is here supported by Product Data Syndication.

Lately data governance has become a household term. We see multiple varying data governance frameworks addressing data stewardship, data policies, standards and business glossaries. In my eyes data governance and data governance frameworks is very much about adding the people side to the processes and technology we have matured in MDM and Data Quality Management (DQM). And we need to combine those themes, because It is not all about People or Processes or Technology. It is about unifying all this.

In my daily work I help both tool providers and end user organisations with all this as shown on the page Popular Offerings.

DG DQ and MDM

 

Top 15 MDM / PIM Requirements in RFPs

A Request for Proposal (RFP) process for a Master Data Management (MDM) and/or Product Information Management (PIM) solution has a hard fact side as well as there are The Soft Sides of MDM and PIM RFPs.

The hard fact side is the detailed requirements a potential vendor has to answer to in what in most cases is the excel sheet the buying organization has prepared – often with the extensive help from a consultancy.

Here are what I have seen as the most frequently included topics for the hard facts in such RFPs:

  • MDM and PIM: Does the solution have functionality for hierarchy management?
  • MDM and PIM: Does the solution have workflow management included?
  • MDM and PIM: Does the solution support versioning of master data / product information?
  • MDM and PIM: Does the solution allow to tailor the data model in a flexible way?
  • MDM and PIM: Does the solution handle master data / product information in multiple languages / character sets / script systems?
  • MDM and PIM: Does the solution have capabilities for (high speed) batch import / export and real-time integration (APIs)?
  • MDM and PIM: Does the solution have capabilities within data governance / data stewardship?
  • MDM and PIM: Does the solution integrate with “a specific application”? – most commonly SAP, MS CRM/ERPs, SalesForce?
  • MDM: Does the solution handle multiple domains, for example customer, vendor/supplier, employee, product and asset?
  • MDM: Does the solution provide data matching / deduplication functionality and formation of golden records?
  • MDM: Does the solution have integration with third-party data providers for example business directories (Dun & Bradstreet / National registries) and address verification services?
  • MDM: Does the solution underpin compliance rules as for example data privacy and data protection regulations as in GDPR / other regimes?
  • PIM: Does the solution support product classification and attribution standards as eClass, ETIM (or other industry specific / national standards)?
  • PIM: Does the solution support publishing to popular marketplaces (form of outgoing Product Data Syndication)?
  • PIM: Does the solution have a functionality to ease collection of product information from suppliers (incoming Product Data Syndication)?

Learn more about how I can help in the blog page about MDM / PIM Tool Selection Consultancy.

MDM PIM RFP Wordle

Real-World Multidomain MDM Entities

In Master Data Management (MDM) we strive to describe the core entities that are essential to running a business. Most of these entities are something that exists in the real-world. We can organize these entities in various groups as for example parties, things and locations or by their relation to the business buy-side, sell-side and make-side (production).

Multidomain MDM

The challenge in MDM is, as in life in general, that we use the same term for different concepts and different terms for the same concept.

Here are some of the classic issues:

  • An employee is someone who works within an organization. Sometimes this term must be equal to someone who is on the payroll. But sometimes it is also someone who works besides people on the payroll but is contracting and therefore is more like a vendor. Sometimes employees buy stuff from the organization and therefore acts as a customer.
  • Is it called vendor or supplier? The common perception is that a vendor brings the invoice and the supplier brings the goods and/or services. This is often the same legal entity but not too seldom two different legal entities.
  • What is a customer? There are numerous challenges in this question. It is about when a party starts being a customer and when the relationship ends. It is about whether it is a direct or an indirect customer. And also: Is it a business-to-consumer (B2C) customer, a business-to-business (B2B) or a B2B2C customer?
  • Besides employees, vendors and customers (and similar terms) we also care about other parties being business partners. We care about those entities that we must engage with in order to influence our sales. In manufacturing or reselling building materials you for example build relationships with the architects and engineers who choose the materials to be used for a building.
  • Traditionally product master data management has revolved around describing a product model which can be produced and sold in many instances over time. With the rise of intelligent things and individually configured complex products, we increasingly must describe each instance of a product as an asset. This adds to the traditional asset domain, where only a few valuable assets have been handled with focus on the financial value.
  • Each party and each thing have one and most often several relationships with a geographic location (besides digital locations as for example websites).

The relationships within multi-domain MDM was examined further in the post 3 Old and 3 New Multi-Domain MDM Relationship Types.

MDM Use Case Status

As reported in the post Counting MDM Licenses there is movement in the MDM landscape when it comes to the offerings for the various use cases we have been working with the last 15 years and those we will be working with in the future.

Borrowing from the Gartner lingo, we can sketch the MDM use case overview this way:

  • Party MDM, meaning handling master data about persons and companies interacting with your company. Their role may be as employee, partner, supplier/vendor and customer. With the customer role we can make a distinction between:
    • MDM of B2C (Business-to-Consumer) customer data, meaning handling master data about persons in their private roles as consumers, citizens, patients, students and more. This may also cover how persons are part of a household.
    • MDM of B2B (Business-to-Business) customer data, meaning handling master data about organizations with a customer role in your company. This may also cover the hierarchy these organizations form (typically company family trees) and the persons who are your contacts at these organizations.
  • Product MDM, meaning handling data about product models and their item variants as well as each instance of a product as an asset. This can be divided into:
    • MDM of buy-side product data covering the procurement and Supply Chain Management (SCM) view of products going into your company from suppliers.
    • MDM of sell-side product data covering the sales and marketing view of products being sold directly to customers or through partners.
  • Multidomain MDM being combining product and party master data possibly with other domains as locations, general ledger accounts and specific master data domains in your industry.
  • Multivector MDM being a special Gartner term meaning use case split into multiple domains (as mentioned above), multiple industries, operational/analytical usage scenarios, organizational structures and implementation styles (registry, consolidation, coexistence, centralized).
  • Multienterprise MDM being handling master data in collaboration with your business partners as told in this post about Multienterprise MDM.

In the latest Gartner MDM quadrant, the status of the use cases is:

  • Customer MDM and Product MDM continue to climb the Slope of Enlightenment toward the Plateau of Productivity in Gartner’s Hype Cycle for Information Governance and Master Data Management.
  • Multidomain MDM solutions are sliding toward the bottom of the Trough of Disillusionment, while Multivector MDM solutions continue their climb toward the Peak of Inflated Expectations in the Hype Cycle.
  • Multienterprise MDM is near the Peak of Inflated Expectations on the Hype Cycle as well as mentioned in the post MDM Hype Cycle, GDSN, Data Quality, Multienterprise MDM and Product Data Syndication. In the Gartner MDM quadrant 2018 multienterprise MDM was only mentioned as a strength at one of the included vendors – Enterworks.

Stay tuned on this blog for more news about Multienterprise MDM as how it looks like from standing on the peak.

mdm hype cycle
Based on Gartner sources

The relation between CX and MDM

The title of this blog post is also the title of a webinar I will be presenting on the 28th February 2019. The webinar is hosted by the visionary Multidomain MDM and PIM solution provider Riversand.

Customer experience (CX) and Master Data Management (MDM) must go hand in hand. Both themes involve multiple business units and digital environments within your enterprise and in the wider business ecosystem, where your enterprise operates. Master data is the glue that brings the data you hold about your customers together as well as the glue that combines the data you share about your product offering together.

To be successful within customer experience in the digital era you need classic master data outcomes as a 360-degree view of customers as well as complete and consistent product information. In other words, you need to maintain Golden Records in Multidomain MDM.

You also need to combine your customer data and your product data to get to the right level of personalization. Knowing about your customer, what he/she wants, and their buying behaviour is one side personalization. The other side is being able to match these data with relevant products that is described to a level that can provide reasonable logic against the behavioural data.

Furthermore, you need to be able to make sense of internal and external big data sources and relate those to your prospective and existing customers and the products they have an interest in. This quest stretches the boundaries of traditional MDM towards being a more generic data platform.

You can register to join and replay the webinar here.

webinar data lake