The Master Data Management (MDM) market has traditionally been divided into Customer MDM and Product MDM – with Vendor/Supplier MDM as a rarer third option.
However, from being an academic notion we see more and more implementations where the MDM solution is build as a Party MDM solution, where the party entity encompass customer, vendor/supplier, other business partners, internal business units and any other party entity that matters to the sell, buy and make side of the enterprise.
The party MDM concept will also encompass the employees (and contractors) in the business units – which can be seen as Human Resource MDM – as well as the contacts at B2B customers, vendors/suppliers and other business partners.
There are many drivers for building this model.
One example is that many enterprises, especially large corporations, has an intersection of customers and vendors/suppliers. This case was examined in the post How Bosch is Aiming for Unified Partner Master Data Management.
Then there is the good old question: “What is a customer?”. In many business scenarios there are more than direct customers that matters in marketing and selling. In manufacturing, including life science, there are B2B2C chains. In these and other industries there are influencers that matters. In life science that is healthcare professionals. In building materials that is for example architects and other construction professionals.
In banking the term counterparty is used to cover both direct customers and other parties that are referred to in the service delivery. In education there are teachers and students. In public administration there are citizens.
Practically all organizations have more parties than customers and vendors/suppliers involved in the operating model and therefore their descriptions must sooner or later be handled as master data in a unified Party MDM model. This will underpin the digital transformation that is on the agenda in every organization these days.
The Business-to-Business-to-Consumer (B2B2C) scenario is becoming of increasing importance in Master Data Management (MDM), Product Information Management (PIM) and Data Quality Management (DQM).
This scenario is usually seen in manufacturing including pharmaceuticals as examined in the post Six MDMographic Stereotypes.
One challenge here is how to extend the capabilities in MDM / PIM / DQM solutions that are build for Business-to-Business (B2B) and Business-to-Consumer (B2C) use cases. Doing B2B2C requires a Multidomain MDM approach with solid PIM and DQM elements either as one solution, a suite of solutions or as a wisely assembled set of best-of-breed solutions.
In the MDM sphere a key challenge with B2B2C is that you probably must encompass more surrounding applications and ensure a 360-degree view of party, location and product entities as they have varying roles with varying purposes at varying times tracked by these applications. You will also need to cover a broader range of data types that goes beyond what is traditionally seen as master data.
In DQM you need data matching capabilities that can identify and compare both real-world persons, organizations and the grey zone of persons in professional roles. You need DQM of a deep hierarchy of location data and you need to profile product data completeness for both professional use cases and consumer use cases.
In PIM the content must be suitable for both the professional audience and the end consumers. The issues in achieving this stretch over having a flexible in-house PIM solution and a comprehensive outbound Product Data Syndication (PDS) setup.
As the middle B in B2B2C supply chains you must have a strategic partnership with your suppliers/vendors with a comprehensive inbound Product Data Syndication (PDS) setup and increasingly also a framework for sharing customer master data taking into account the privacy and confidentiality aspects of this.
This emerging MDM / PIM / DQM scope is also referred to as Multienterprise MDM.
If you read The Latest Gartner MDM Magic Quadrant there is not so many clues about that the MDM market will undergo drastic changes.
Therefore, it is refreshing that Gartner analyst Malcolm Hawker has written a blog post called The Evolution of MDM. In here Malcolm Hawker examines the “evolutionary forces that are having disruptive impacts on the markets for MDM software and several adjacent markets”.
- The growing use of graph and AI/ML
- The increasing use of graph in big data environments for entity resolution
- The idea that a gold master record could be created at ‘run time’
- The explosive growth of MDM deployments in the cloud
A blog post about the future and a magic quadrant that primarily observes what happened a year or more ago at existing deployments at large organizations is, as Malcolm Hawker also indicates, of course two different things.
For organizations on the look for a platform covering MDM and/or the adjacent markets (CDP, PIM, PDS and more) the relevant vision, roadmap and approach at the vendors is crucial.
Use this list to get and overview of who has the innovative direction that fits your organization.
We are now entering into a new decade: The twenty-twenties. Last time it was the twenties, back in the nineteen-twenties, this decade was defined as the Golden Age Twenties, the Roaring Twenties the Jazz Age or in French “Années folles” meaning the Crazy Years.
If we look into Master Data Management (MDM) the next decade could be the golden age of MDM. The MDM discipline has been around for 15 years or so now. The number of organizations that have implemented an MDM solution is not a big number – perhaps around 10,000 world-wide as examined in the post Counting MDM Licenses. This number may be more than 10-fold higher at the end of the decade and thus making MDM – and what is beyond – a common part of enterprise IT landscapes.
The next MDM decade will probably also be roaring, jazzy and even crazy. A lot is happening to MDM solutions and there are many questions to be answered about how the market will develop, as for example:
- Will Customer Data Platforms(CDP) be part of CRM or MDM?
- Will the MDM market and the Product Information Market (PIM) market be a big union or two separate markets?
- Besides customer master data and product master data, which other master data, reference data and application data will commonly be included in MDM hubs?
You could also argue about if MDM will survive as a discipline!
What is your prediction about the next MDM decade?
New terms are constantly emerging in the data management space. One of these are “Data Fabric”.
According to Gartner, the analyst firm, data fabric “enables frictionless access and sharing of data in a distributed network environment.” Usually, one would associate data fabric with big data and edge computing. However, data fabric does embrace all kind of data and computing from the ones mentioned over multi-cloud to traditional on-premise computing and the data stores within.
Data fabric and Master Data Management (MDM) have the same aim, which is that all (master) data must be shared across the enterprise – and eventually also in business ecosystems. This is a prerequisite for successful digital transformation.
Lately, there has also been a development in the conception of MDM, where other data than master data are encompassed in some of the platforms offered as examined in the post Master Data, Product Information, Reference Data and Other Data.
So, there is clearly a union and an intersection of data fabric and MDM.