Are You Mastering Your Data?

Filed in archive Methodology on April 4, 2007

It's called Master Data Management (MDM), or Reference Data Management, a discipline of IT that manages the shared data across several disparate architectures, groups and systems. These systems share the same data - customer, product, vendor and other information relevant to more than one area of the business. For example, sales may use all of the information that the accounting department uses, and the marketing department would use that same information in different ways from the shipping department. An MDM process allows these very different business functions to access and use the same information in different ways.

Thanks to Sarbanes-Oxley, businesses are now becoming aware of the need for a more uniform way of managing the data within the organization. As a result, software vendors are responding with MDM software solutions. Companies like Amalto Technologies, Hyperion and Cordys offer MDM products that are designed for specific operating systems and can span a company's business schematic quite easily. However, until recently, deploying an MDM was hampered by the cost - many MDMs could cost as much as $1 million to implement. Luckily, the demand and popularity of these processes are beginning to affect the price. Some vendors - DataFlux, i2, Initiate Systems, Kalido, Purisma and Siperian - have begun marketing to the smaller companies. That's good news for those unable to shell out top dollar, but who still need a solid solution for integrating data across all business functions.