Master data management software market up 30%
Master data management (MDM) software is one of the fastest growing software revenue segments, says analyst Gartner.
The analyst says the worldwide MDM market is on pace to total $1.3bn in 2008, a 30% increase on 2007 revenue.
Gartner said the market will experience steady growth through to 2012 when revenue will total $2.8bn.
Gartner said that despite the current economic crisis, ongoing requirements for businesses to increase effectiveness, reduce costs and meet compliance requirements are driving the adoption of MDM technologies.
"MDM technology can help organisations achieve and maintain a single view of master data across an entire organisation, enabling business and IT initiatives to perform in better unison, allowing for opportunities to increase revenue, reduce costs, achieve effective compliance, reduce risk and improve business agility," said John Radcliffe, a Gartner analyst.
"The technology continues to mature and has great potential for enabling more-efficient and effective business processes in the future," he said.
Master data is the consistent and uniform set of identifiers and extended attributes that describe the core entities of the organisation, and are used across multiple business processes.
Some examples of core entities are parties (customers, prospects, people, citizens, employees, vendors, suppliers or trading partners), places (locations, offices, regional alignments or geographies) and things (accounts, assets, policies, products or services).
Groupings of master data include organisational hierarchies, sales territories, product roll-ups, pricing lists, customer segmentations and preferred suppliers.
MDM is a process that may be workflow-driven or transactional in nature, in which business units and IT departments collaborate, cleanse, publish and protect common information assets that must be shared across the organisation.
MDM ensures the consistency, accuracy, stewardship and accountability for the core information of the organisation.
The MDM market will be discussed at the Gartner Customer Relationship Management Summit 2009, taking place 3-4 March in London.