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and how the data will be used emanating from that central source rather than from a variety of different locations which would mean different sets of business rules, which conceivably could conflict with each other Rules that involve privacy preferences or pricing discounts are one kind that MDM serves; rules that involve results leading to action are another, such as a problem with delivery needs to be routed to a supervisor for a preemptive call There is another interesting wrinkle All the data I ve spoken about so far is structured data What about the mass of unstructured data that s out there currently How do you deal with that
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MDM seems to have an answer at least fourth-generation MDM solutions do First, they ve centralized all data around process hubs, which allows the enterprise to manage the business rules and processes that are needed to use the data in specific and appropriate ways Then they are integrating enterprise search Zornes foresees the complete fourth-generation MDM solution looking like this (from his Enterprise Master Data Management Market Review and Forecast for 2008 2012 ): While the majority of contemporary [author s note: third generation] MDM solutions focus on the structured data held in CRM and ERP applications, the reality is that a plethora of valuable customer, product, supplier, employee, etc, information resides in what is characterized as unstructured information, eg, emails, instant message log files, voicemails, etc To provide a robust universal customer view it is clearly desirable to incorporate these valuable information sources as part of the composite view While that is a lovely vision, is there anyone who s actually doing that now
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Not entirely There are market-dominant MDM forces, which include a Big Four who are beginning to investigate the fourth generation of MDM, though still a long way from implementing that enterprise search capability: Oracle, SAP, Teradata, and IBM However, they are still aimed at improving and have made some surprising efforts In the second quarter, 2009 SAP and Teradata announced an MDM-like
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partnership to integrate SAP s NetWeaver and BW with varying Teradata solutions so they could actually satisfy the requests of their customers, rather than try to up their market ante It seems that there was an 80 percent overlap between SAP and Teradata customers, according to Teradata EMEA CEO Herman Wimmer Many of those customers, like Hershey s in Pennsylvania, welcomed the move As far as fourth generation capabilities like enterprise search, one of the more promising approaches has been the integration of Microsoft SharePoint with their MDM solution Though I m no fan at all of SharePoint, this at least points in the right direction for the future of MDM
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Even though technically you could call CDI a subset of MDM, the value of MDM is that it provides a complete and integrated view of all enterprise data, not just the customer data It subjects that data to the expected analytics tools, and also to business rules and workflow so you can make the post-analysis results actionable and also direct them to the appropriate parties to take that action Because it s SOA based, it integrates well with applications that would need to access it It has a potentially disruptive good effect on contemporary business models also It supports Social CRM self-service efforts by making available the data that customers need to handle their own service requests or purchases, and then automates the transactions regardless of what systems are involved in the process It gives both the company and the customer (with the permission of the company) visibility into what Zornes calls the hyper-integrated 21st century chain, which means a supply chain that involves internal manufacturing, warehousing, distribution, logistics, and the outsourced pieces of that too At the early 2009 MDM Summit, Zornes (my man!) introduced three reasons for companies to consider MDM, especially as it evolves into the fourth generation of solutions: 1 Identify and provide differentiated service to its most valuable customers via their relationships (households, hierarchies); also crosssell and up-sell additional products to these customers
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