Aberdeen: MDM Speeds up Data Migration and Integration Projects

Loraine Lawson

Is master data management really worth the investment in time and money? A recent Aberdeen Group survey of 176 organizations shows that for those who succeed at it, yes, it is.


If you've never read an Aberdeen report, they generally look at how thoroughly a company has executed on a particular approach-in this case, managing master data-and then divide the companies into best-in-class (top 20 percent), industry average (middle 50 percent) and laggards (bottom 30 percent). The three criteria used for this survey were:


  • Percent of master data that's accurate and properly classified
  • Percent of master data that is complete and up-to-date
  • Number of hours per employee per week spent searching for information

The question then becomes: Is there a correlation between performance in these areas and MDM?


The Aberdeen Group report, "Turning Pain into Productivity with Master Data Managament," found there is: 72 percent of the best-in-class companies had a formal MDM program. Ninety-three percent have master data that is complete and up-to-date, compared to 70 percent from the industry average group.

The report also includes an interesting finding about how MDM affects integration. Best-in-Class companies reported that 73 percent of data migration/data integration projects were completed on schedule and on budget. By comparison, the industry average group reported 33 percent of their data integration/migration projects were on schedule and 36 percent were on budget, while laggards reported only 20 percent of these projects were on schedule and only 19 percent were on budget.

Best-in-Class companies saw a 15 percent increase in customer retention and a 16 percent increase in customer satisfaction, coupled with a 6 percent growth in product sales-and in all cases, best-in-class fared significantly better than industry average and laggard companies.


It wasn't all sunshine and good news, though. It seems that across all organizations, almost a fourth reported that less than 50 percent of their master data was accurately and properly classified. The average level of accuracy for master data was 71 percent.


And there are definitely barriers to MDM. According to the report, the top three barriers to adoption are:

  1. Silos of master data owned by different departments
  2. No clearly defined ROI for MDM
  3. No buy-in from senior management


Given those barriers, you can see why the Aberdeen Group recommends companies take four specific steps in the executive summary:

  1. Invest in a formal MDM program.
  2. Obtain senior management support for data governance.
  3. Involve the business units and end users in setting master data goals.
  4. Use automated data quality tools to ensure the data maintains high levels of accuracy and completeness.


Over the next few days, I'll share what I've found about these suggestions. The report includes other recommendations, depending on where you are in adopting master data management. Since it's available for free download through March 29, it's definitely worth a read, particularly if you're pursing an MDM strategy. After March 29, if you're not a member of the Aberdeen Group, you can read more about the findings in this PNT blog post.

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