How to Connect Data to Meaningful and Measurable Results
Highlights on building an IT Metrics Correlation Model to gain the full value of your data.
How do most businesses handle master data? Many don't, if the 163 organizations surveyed by Aberdeen Research are any indication, which found 45 percent had no formal master data management (MDM) system.
The next most popular answer: Homegrown MDM, with single and multi-domain MDM each getting 19 percent. Only about 10 percent were using cloud or open source or some "other" option.
But is that a fair reflection of the market? I'm not sure. It certainly is more grim than a recent TDWI survey, which queried 369 companies and found that about 10 percent aren't doing MDM and have no plans to do so.
That leads to findings like, " if a Laggard organization could improve to Best-in-Class performance, they could save each knowledge worker 355 hours per year, or a full 8.9 work weeks of time and effort."
It can be difficult to follow, but in the end, you can get some pretty clear stats on how an organization could benefit from whatever Aberdeen's researching. Although, to be honest, it does make me wonder to what extent unmeasured factors influence the results. For instance, what if Best-in-Class companies just hire better, smarter workers?
Some findings, though, stand as a statement on their own. Like this one:
A mere 7 percent of all organizations are able to measure and track the Return on Investment (ROI) on master data programs.
Still, Aberdeen states its research backs up the importance of master data management. And the results show businesses realize there are serious consequences to ignoring data problems: Fifty-six percent cited poor business decisions as a top pressure for improving master data. What's more, 53 percent of the organizations said they're investigating MDM because they're fed up with NOT having a central, trusted system for data. So, there seems to be growing awareness that the cost of bad data is too high to keep paying.
(In tangential news, one stat coming out of SAP's SAPPHIRE was that for every $1 you spend on business intelligence, you get back $10.66 - so that might be a starting point for finding an ROI on data quality initiatives.)
The May 2012 report is also available for free - for now. Aberdeen tends to shut down these offers after a few weeks. You also have to register, but that's free and fairly painless.
As an added bonus, you'll also find a link on the second page for a free scorecard assessment, so you can see whether your organization ranks as a Best-in-Class, Industry Average or (the shame!) a Laggard.