7 Trends from MDM 360 Summit: From Digital Transformation BlaBla to Business Outcomes
Everyone is asking how to move from Digital Transformation BlaBla to business outcomes. This was one of the reasons for us hosting our MDM 360 Summit with more than 500 attendees in NYC.
I thought I summarize my key learning from meeting digital and data management leaders in NYC, for you in a short blog. This first live poll with all attendees, shows that digital transformation is clearly a hot topic and 96% of the business and IT people, attending the summit, are involved in a digital initiative in their organization.
Are you feeling overloaded with all these talks about digital transformation?
Maybe you are, but events like these clearly show the world’s economy is just at the beginning of a new digital era. Clearly “data are at the heart of digital”, said Informatica CEO, Anil Chakravarthy in his opening keynote. So the key question for all enterprises is, about HOW can you turn data into measurable business outcomes for your company? In 2011, I issued the first globally research that focused on the return on investment (ROI) of Master Data Management (MDM) solutions, with 350 companies. Where I have gone since then? I took the chance to ask our audience in NYC. The chart below shows that 21% of the attendees think, they can clearly quantify the value data bring to their company. This is not too bad. While at least 73% said, they are working on it, what I interpret, as they consider it as important.
What is the ROI of data in digital transformation?
Different research companies have been looking at this question. Even in 2008, “… A Total Economic Impact™ (TEI) analysis of a typical first-phase MDM project indicates that it is likely to produce a small positive return on investment (ROI) of 7% and almost $217,000 dollars in positive business benefits in a traditional large enterprise over three years, with more significant return realized over the longer term…..” said Rob Karel on his blog from Forrester. In my earlier blog (Data Powers Business – what quantifiable outcomes are possible), I summarized examples from Informatica customer and the business outcomes they have been able to realize with our solutions.
Aberdeen recommends A Multi-domain approach for master data management challenges
“… Multi-domain MDM manages all different types of master data in one repository, applying the processes and technologies of MDM across multiple data domains with a cohesive, centralized platform. Aberdeen’s research reveals that companies deploying multi-domain MDM are driving improved accuracy and completeness in their data.” (Source: Aberdeen 2016)
This is not a surprising move, as Gartner finally issued a new view of the Master Data Management market with their Gartner Magic Quadrant for MDM Solutions 2016. Gartner runs a big focus on the outcome of data in 2017, as I know. While there’s a lot of noise out there about what makes up a next-generation MDM solution, my experience working with dozens of customers shows that real next-gen MDM is about having these end-to-end MDM capabilities in a single solution, Data quality, Data as a service, Business process management (BPM), Data integration, Data governance and security, big data readiness and many more.
Are you ready for your powering your business with data?
Are you wondering how to move from Digital Transformation BlaBla to Data Powered Business Outcomes? Tips on establishing business goals, using key metrics and benchmarking your progress can be found on this white paper “How to Get C-Level Buy-In for Your Trusted Data Initiatives”. Let me close with a short summary of seven trends, I observed among the industry’s large MDM practitioner community.
7 Trends from Informatica’s MDM 360 Summit
- Digital transformation initiatives is driving the need for great end to end data management (see poll)
- All attendees agree on the business value of data, but majority is still working on quantifying it (see poll)
- Gaining value from big data (in real time), leveraging social media content for better services, sales and marketing
- Hybrid data management is trending, as some information will recite on premise, and some date moved into the cloud (Learn more on Journey to Cloud with our virtual summit)
- Data governance that combines technical data on the backend with a business lens on the front-end is becoming more and more critical for business agility
- A “Digital Identity” grows the need for more data security with MDM
- Machine learning for creation of new kind of attributes and hierarchy attribution