10 Critical Myths and Realities of Master Data Management
Prevalent myths surrounding MDM alongside an explanation of the realities.
I'm a word person, but even I know that sometimes, a number or statistic can tell a whole story by itself. So occasionally throughout the year, I would write a post called "Just the Stats" and share some key data points on a specific topic. That's why I thought it'd be interesting to share some of the more "talkative" numbers from 2011.
Data, Data Everywhere
There's no doubt that data takes up a significant amount of time and effort. Organizations are swimming in terabytes of data and investing in managing that data.
235 terabytes. Amount of data stored by companies with more than 1,000 employees in 15 of the economy's 17 sectors, according to the McKinsey Quarterly. That's more data than the U.S. Library of Congress contains.
$90,000. Amount spent per year on data management by the average respondent, according to an Aberdeen Group survey of 176 organizations.
Six. Different data sources the average enterprise organization relied on for information, according to a study by iWay Software.
The Data Disconnect
What became clear this year is that the problem isn't whether there's enough data available, but whether business users can access the right data at the right time and know the data's correct. Unfortunately, research suggests that's not the case ...
Nearly 90 percent. U.S. business and IT leaders who worry their information is inaccurate, according to an Experian QAS survey of 1,320 business representatives across industry sectors and located in the U.S., Europe, Asia and Australia.
83 percent. IT pros who do not have confidence in the accuracy of information stored on company databases, according to an Informatica Corporation poll of over 600 sales, marketing and IT professionals across Europe, the Middle East and Africa.
25 percent-or more. Existing master data that's missing required fields or containing outdated information, according to an Aberdeen Group survey of 176 organizations.
20-30 percent. Data duplicated across applications, according to Ovum's survey of IT executives at 146 large enterprises in three countries. Duplicated data increases application maintenance costs and creates problems when integrating, migrating, synchronizing and retaining data.
Technology to the Rescue?
Can technology help with the data disconnect? Survey research shows it certainly does at some companies.
4.9 hours. Time per week employees spent looking for data at companies with MDM compared to those without MDM (6.2 hours), according to a survey of 634 organizations, 256 of which had a formal MDM program, and 378 that did not.
17 percent. Customer satisfaction at companies with MDM as compared to those without MDM, thanks to improved deliveries, better inventory accuracy and other metrics that impact customers, according to the same survey.
But the problem may be one of investment and interest ...
50 percent. Enterprises that do not have a data focus, according to Ovum.
49 percent. Organizations out of 200 that still do not have any form of centralized master data management, according to Kalido's report, "The State of Data Governance Maturity 2011."
And that disinterest is costing them ...
$700 billion. Amount that poor quality data costs U.S. businesses in inefficiencies and lost customers each year, according to Ovum's estimates.
A Data Management Snapshot
So how did companies use data management and integration technologies in 2011? Here's a quick look:
64 percent. Organizations using the enterprise data warehouse for Big Data analytics, with 63 percent saying that's their preference, according to the TDWI.
70 percent. Organizations that are using file transfer protocol to share information internally and externally out of 250 surveyed.
48 percent. Companies out of 235 for which one ERP system isn't enough, so they're considering a two-tier ERP strategy, according to Constellation Research.
40 percent. Amount of data integration tool functionality organizations say they're actually using, says the TDWI report, "Next Generation Data Integration."