Tag Archives: Operational
There was an interesting story that surfaced recently. Indiana University researchers found that a pair of predictive modeling techniques can make significantly better decisions about patients’ treatments than can doctors acting alone. Indeed, they claim a better than 50 percent reduction in costs and more than 40 percent better patient outcomes. (See a story by Derrick Harris over at GigaOM for additional analysis, and I will also cover this subject in greater detail in a forthcoming column in TDWI’s “BI This Week.”) (more…)
Over the weekend note blogger David Linthicum did a blogpost on eBiz regarding master data management (MDM) and cloud computing. The crux of David’s argument is that while the profusion of cloud computing will exacerbate the need for MDM, the rush to embrace cloud applications could potentially drive MDM into the background at many companies. That, ironically enough, since organizations can save so much money by replacing big enterprise systems with lighter SaaS applications, in the headlong rush to embrace cloud applications “MDM will be an afterthought” and get pushed aside even as the need for it intensifies.
I agree with David that the migration to cloud computing is going to further spark demand for MDM, but I don’t agree that MDM is going to get pushed aside. The reason I make this argument is that we already have a few customers at Siperian who are using MDM with cloud-based applications, and it’s working out very well. These customers are combing MDM with the cloud in the following two ways:
1. Using MDM to create a single version of the truth before enabling the cloud-based applications (i.e., they’re cleaning up data from multiple in-house CRM systems, and feeding reliable, consistent customer data into Salesforce.com)
2. They’re combining customer and other forms of data from the cloud-based applications (e.g. Salesforce.com) along with internal CRM applications to create a single version of the truth to enable operational and analytical business processes.
As organizations grow the number of cloud based applications, they have to control the key data that they will use across those applications as well as internal applications and data warehouses. MDM enables organizations to do just that—either for enabling cloud-based applications or creating a single view of the master data across cloud-based applications and internal applications. Thus a strong foundation of MDM will be the key to successfully taking advantage of cloud computing.
The first thing I would like to do is dispel a myth that many people believe. That is, being information-enabled or competing with data means analytics or BI. This is only partially true.
Analytics is one of the methods an organization uses to compete on information. For example, with analytics you can analyze buying behavior and leverage the information to better promote products. To truly be information-enabled, an organization must control the information across operational (transaction) systems as well as analytic solutions.
In the world of analytics, most organizations invest a significant amount of time and effort cleansing data from operational systems before it moves into a data warehouse. Thus, enabling higher quality analytics where reporting can be performed. However, the “cleansing” effort is rarely reflected back into the source/operational systems. This plays into the unwritten rule of IT that bad data doubles at the rate of good data. (more…)