Some documents may not be available as part of your current Gartner subscription.
"Magic Quadrants and MarketScopes: How Gartner Evaluates Vendors Within a Market" "A View of Master Data Management Vendors' Experience In Handling Multiple Master Data Domains"
"A View of Master Data Management Vendors' Experience In Handling Multiple Master Data Domains, Part 2"
"The Emergence of Information Stewardship Applications for Master Data" "Magic Quadrant for Data Quality Tools"
"Magic Quadrant for Data Integration Tools" "Mastering Master Data Management"
"The Seven Building Blocks of MDM: A Framework for Success" "Research Library for the Seven Building Blocks of MDM" "Toolkit: Program Manager's Guide to MDM"
"Use the Gartner MDM Maturity Model to Create Your MDM Road Map" "The Five Vectors of Complexity That Define Your MDM Strategy"
"Vendors Have Different Approaches to Implementing Master Data Management" "The Important Characteristics of the MDM Implementation Style"
"How to Evaluate a Vendor's Master Data Management Solution" "Evaluation Criteria for MDM Vendor Data Model Styles"
"Guidelines for Client-Driven MDM Data Model Programs"
"Different Approaches or Usage Patterns for MDM and Their Implications"
"Banker's Guide to Reference and Related Investment Data Management Software"
Evidence
A combination of analysis based on vendor surveys, vendor briefings, client inquiries and vendor reference checking via both phone calls and an online survey.
Note 1
MDM Definition
MDM is a technology-enabled discipline in which business and IT work together to ensure the uniformity, accuracy, stewardship, semantic consistency and accountability of the enterprise's official, shared master data assets. Master data is the consistent and uniform set of identifiers and extended attributes that describes the core entities of the enterprise, such as customers, prospects, citizens, suppliers, sites, hierarchies and chart of accounts.
Note 2
Definition of Multidomain MDM Technology
Multidomain MDM technology is a purpose-built solution targeted at addressing the multidomain technology requirements of an MDM program. It has the following characteristics:
■ It can be implemented in a single instance.
■ The data model is uniform or is interoperable and able to manage cross-domain intersections. ■ The workflow and UI elements are uniform or interoperable.
■ It supports at least one use case, implementation style and organization/governance model, for specific industry scenarios.
Note 3
Other Vendors
In addition to the software vendors that have been rated in this Magic Quadrant, many software vendors are on the periphery of the MDM of customer data solutions market.
Vendors whose MDM of customer data solutions do not meet the inclusion criteria include: ■ Ataccama (Headquarters: Stamford, Conneticut, U.S. Development Center: Prague, Czech
Republic. Website: www.ataccama.com). Ataccama is a Czech vendor with an MDM product called Master Data Center (MDC) v.7.0.5, which has been generally available from May 2012 and includes Ataccama's data quality tool product called Data Quality Center (DQC). The vendor has a total of 24 MDC customers using the MDC product, with 19 managing customer data. Historically, most of Ataccama's customers have been in central and eastern Europe, and Canada, but it is now expanding into the German and U.S. markets. Ataccama also has an OEM relationship with Information Builders, which resells MDC and DQC.
■ D&B (Headquarters: Short Hills, New Jersey, U.S. Website: www.dnb.com). D&B is best known for providing information and insight on business customers. It is generally regarded as the leading supplier in the B2B area, with the most worldwide coverage (more than 212 million businesses). D&B's hosted data service (D&B Optimizer) can be used to bring structure to business data by persistently identifying legal entities via D&B D-U-N-S Numbers and providing an understanding of legal entity hierarchies, and it also has two newer data as a service (DaaS) offerings called D&B Direct and D&B360. D&B Direct is an API which makes it possible to access D&B's business information from any application or platform, while D&B360 is an integrated out-of-the box offering that delivers real-time matching at the entry point against D&B's database for MDM and CRM products. D&B also used to be a player in the MDM solutions market with the Purisma Data Hub MDM solution, but in 2010 announced that although this product will continue to be supported, there will be no further proactive sales or development of the product. D&B is now focused on being a DaaS integrator into MDM solutions and applications such as CRM, ERP and sales force automation (SFA).
■ Information Builders (Headquarters: New York, U.S. Website: www.informationbuilders.com). Information Builders' iWay product division provides an MDM solution called Master Data
Center (MDC). MDC includes some core technology licensed from Ataccama that has been augmented by Information Builders' own technologies. In addition, Information Builders is creating a set of vertical industry applications based on MDC, called Omni Framework. The first offering is Omni-Patient, a combination of an enterprise master person index (EMPI) with
prepackaged models designed specifically for the healthcare industry. Information Builders now has a total of 11 MDM customers, including 10 managing customer data. Its value proposition is based on the combination of its integration, MDM, data quality tools, BI and reporting
technologies and now (in addition), the Omni Framework applications. Information Builders can also leverage its extensive global presence.
■ Heiler Software (Headquarters: Stuttgart, Germany. Website: www.heiler.com). Heiler Software is a public German vendor that focuses on helping retailers, distributors and manufacturers to manage complex product data (structured, as well as unstructured) through complex supply chains, from suppliers through to multiple selling and interaction channels, particularly e- commerce channels, with customers. Its main focus is product data, offering Heiler Enterprise product information management (PIM) Suite v.6.0, but it is steadily building up its ability to manage multiple data domains, including support for customer data. On 1 October 2012 Informatica announced its intention to acquire Heiler Software.
■ hybris (Headquarters: Munich, Germany. Website: www.hybris.com). A Germany-based software vendor, hybris sells to enterprises with requirements related to e-commerce, catalog, print/media and multichannel integration. It focuses mainly on managing product master data across multiple channels, although an increasing number of its customers are also using it to manage customer, supplier and asset master data. We estimate that, at the end of 2011, hybris had a total of 152 licensed MDM customers, with 21 of them managing customer data. We estimate that hybris's MDM total software revenue was approximately $15.3 million in 2011. Almost 55% of its revenue comes from Europe-based customers, with 40% now from North America.
■ Kalido (Headquarters: Burlington, Massachusetts, U.S. Website: www.kalido.com). Historically, Kalido focused on the BI world, and its MDM customers typically used it for multi-subject-area analytical MDM use cases, such as dimension and hierarchy management. Now, Kalido MDM 9 is applicable to both analytical- and workflow-oriented operational MDM requirements. Kalido provides what it calls a "business centric" MDM solution and its vision is to provide
organizations with the ability to model all domains and enable management by both business and IT users, giving them universal access. Gartner estimates that, at the end of 2011, Kalido had a total of 72 licensed MDM customers. We estimate that 24 feed master data only to the data warehouse, and 32 are feeding (or plan to feed) master data to at least one operational system. Of the customers that feed operational systems, we estimate that Kalido has 14 managing customer data. Kalido's 2011 MDM total software revenue is estimated to be $11 million.
■ Microsoft (Headquarters: Redmond, Washington, U.S. Website: www.microsoft.com). SQL Server 2012, generally available since April 2012, includes an MDM platform called Master Data Services (MDS) that is available with SQL Server Business Intelligence and Enterprise Editions. MDS is a multidomain MDM platform, with hierarchy management and version control that will enable customers to build their own MDM solution and manage a variety of data domains. The
SQL Server 2012 release included enhancements to MDS that enabled business users to manage their own changes to their master data elements from within a new Excel add-in and it also included Data Quality Services (DQS), based on Microsoft's Zoomix acquisition, to provide data cleansing and matching capabilities.
■ Pitney Bowes Software (Headquarters: Stamford, Conneticut, U.S. Website: www.pb.com/ software). Pitney Bowes provides multichannel solutions that enable lifetime customer relationships by integrating data management, location intelligence, sophisticated predictive analytics, rule-based decision making and cross-channel customer interaction management to increase the value of every customer engagement. It entered the MDM market in June 2012 with the release of 8.0 of its data management platform, Spectrum. The Spectrum MDM
solution provides a unique and innovative approach to the MDM market, that potentially gives it advantages in modeling and querying networked master data (such as complex relationships and hierarchies), including support for social and big data with built-in analytics and, according to the company, a rapid and agile implementation of MDM.
■ Riversand (Headquarters: Houston, Texas, U.S. Website: www.riversand.com). Riversand's mission is to help organizations master their own information supply chain (implying a multiple- domain strategy), with a specific focus on customer-centric industries needing product and asset master data. Riversand targets the energy, oil and gas, consumer goods and retail, distribution and manufacturing industry segments. Riversand's MDM solution is called MDMCenter. Gartner estimates that, at the end of 2011, Riversand had a total of 38 licensed MDM customers, including three customers managing customer data.
■ Semarchy (Headquarters: Lyon, France. Website: www.semarchy.com). Semarchy is a small French vendor, calling itself "the Data Convergence Company," that entered the MDM market in 4Q11. It claims that its Convergence for MDM v.1.3 product offers an "Evolutionary MDM" capability and is therefore better able to meet the ever-changing demands of the business than competing products. Other key characteristics of Semarchy's approach include logical data modeling, iterative development and being non-invasive.
■ Software AG (Headquarters: Darmstadt, Germany. Website: www.softwareag.com). Software AG entered the MDM market in 4Q10 with the acquisition of Data Foundations, a small U.S. vendor whose OneData product was an MDM platform with a drop-in data model, fully configurable and extendible, that manages multiple domains of master data, reference data, hierarchies and metadata, and analytical and operational MDM use cases — all integrated in the same instance. Software AG renamed the product webMethods OneData and has been
releasing new versions at frequent intervals with v.8.4 released in January 2012. Gartner estimates that Software AG has 25 MDM customers and that its 2011 MDM revenue was $3.6 million. The vendor's positioning in the market is around "process-driven MDM.
■ Stibo Systems (Headquarters: Aarhus, Denmark and Atlanta, Georgia, U.S. Website:
www.stibosystems.com). Until 2007 Stibo focused on catalog publishing tools and services, but since then it has focused on MDM, primarily the MDM of product data. Its product offering, STEP MDM, with v.5.3 generally available since June 2012, is very capable for retail,
distribution, manufacturing, automotive, and travel/hospitality organizations that need to master product data in a centralized product repository, with collaborative workflow requirements. We
estimate that, at the end of 2011, Stibo Systems had a total of 180 licensed MDM customers, including five customers managing customer data.
■ Talend (Headquarters: Suresnes, France and Los Altos, California, U.S. Website:
www.talend.com). Talend is an open-source vendor and its MDM solution, Talend MDM, leverages open-source technology, including Talend's own data integration and data quality products. It is employed mainly in operational use cases and can provide flexible, multidomain data-modeling facilities, based on XML schemas and a native XML datastore. Talend MDM is available as a free downloadable Community Edition (Talend Open Studio for MDM) and a commercially-licensed Enterprise Edition (Talend Enterprise MDM). We estimate that Talend has a total of 58 Enterprise MDM customers, including an estimated 38 of them managing some form of "party" data. We estimate its 2011 MDM software revenue at $6 million.
■ Teradata (Headquarters: Miamisburg, Ohio, U.S. Website: www.teradata.com). Teradata sees MDM as an integral part of data warehouse solutions, and views data mart consolidation as an ideal opportunity to achieve data synchronization with analytical MDM; however, it also
supports workflow-oriented operational MDM use cases with central authoring. Teradata MDM has the most experience in managing product and supplier data, not customer data. Teradata MDM v.3.2, which became generally available in June 2012, introduced customer reference data management capabilities. The previous version, 3.1, generally available in March 2011, included Lookup Reference Data Management (LRDM) capabilities. We estimate that Teradata has a total of 23 MDM customers, including five managing customer data. In addition, over half of Teradata's 1,400 data warehouse customers use Teradata for aspects of customer data management. We estimate its 2011 MDM software revenue at $3 million.
■ Vinculum (Headquarters: Singapore. Website: www.vinculumgroup.com). Vinculum is a venture-funded Indian company that focuses on supply chain issues in the retail, CPG and manufacturing industry verticals with some major customers — mainly in Asia/Pacific. It has an MDM solution called Vin MDM that entered the MDM market in 2011 and can support products, suppliers and customers. Vin MDM uses an industry-specific, rule-based approach to identify data inconsistencies across the master data. It claims that this allows for rapid data cleansing and fast implementations.
Vertical industries where there are single vertical-industry MDM solutions include: Banking industry
There is a range of vendors and solutions focused on the banking industry, including Asset Control, GoldenSource and Kingland Systems, and they are described more fully in "Banker's Guide to Reference and Related Investment Data Management Software."
Healthcare industry
NextGate (Headquarters: Monrovia, California, U.S. Website: www.nextgate.com). This company focuses on the healthcare market and has a product line called MatchMetrix, which provides MDM, EMPI, provider registry and directory, terminology registry, and other registry products that support single-view, accountable care organization (ACO), and HIE initiatives. NextGate's senior personnel
gained their experience in the master index space at SeeBeyond and Sun Microsystems, where they implemented master index and integration products and solutions.
Pharmaceutical industry
Cegedim Relationship Management. (Headquarters: Paris, France. Website: www.cegedim.com/ rm). This company (formerly known as Cegedim Dendrite) has an MDM product called Nucleus 360, which is offered to life sciences companies looking to build a single view of healthcare
professionals, organizations and related affiliation hierarchies. Nucleus 360 is provided in multiple deployment options: service, hosted and on-premises with full-scale global deployment options. The service option (Nucleus as a Service) is popular, and is increasingly being sold in combination with OneKey (Cegedim's healthcare professional and organization reference database and data governance service) and AggregateSpend360 (a spend compliance reporting solution). The
combination is aimed at providing an end-to-end approach to master data governance, locally and globally.
Products that focus mainly on analytical (downstream) MDM requirements include:
■ IBM Cognos (Software Business Unit) (Headquarters: Armonk, New York, U.S. Website: www.ibm.com). IBM Cognos Business Viewpoint v.10.1, which is part of the Cognos 10 suite, enables business users to collaboratively create, maintain, govern and share dimensions and hierarchies for use across BI and performance management applications. It is data-domain- neutral.
■ Oracle (Hyperion DRM) (Headquarters: Redwood Shores, California, U.S. Website: www.oracle.com). Oracle offers a product called Oracle Hyperion Data Relationship
Management (DRM). It is a data-model-neutral solution that focuses on managing change in hierarchical structures and building consistency in the relationships among information assets, such as general ledger accounts, cost centers and related entities. DRM is typically used for analytical MDM; however, because it is data-model-agnostic and contains the capabilities to author new data and write it back, it can be used in an operational MDM context, and not just with financial data. In addition, customers are increasingly using Oracle Hyperion DRM as a reference data management solution as well to manage types, codes, business taxonomies and complex relationships and mappings.
Note 4
Implementation Styles of MDM Systems
There are different implementation styles for MDM systems. They provide different capabilities, require different levels of architectural and governance commitment, and are applicable to different situations.
■ The consolidation style achieves a single version of master data mainly for lookup or BI purposes. Master data is authored in the source systems, then copied to the central "hub" where it undergoes a match-and-merge process to create a golden copy. There is no explicit goal to clean up the source master data when errors are found in the process of consolidation. There is no publishing or use for the data in any operational systems, only in BI environments. A
complication emerges once such a data source is used as a source for new applications that create new data as a result; this implies a different focus for governance of the master data. Therefore, the style shifts from consolidation to one of the other styles where there is an explicit desire to fix source data.
■ The registry style matches and links master data from source systems to create and maintain a central index into the master data. Different versions of the truth are held in the index and, at runtime, the system assembles a point-in-time composite view. This style is a relatively
noninvasive, virtual approach and requires less governance agreement relative to the styles that maintain a physical golden record.
■ The centralized style supports a centralized repository of all the master data for authorship, storage and validation, and is the most invasive style, due to the change in application and information architecture. This is commonly desired when there is a high demand for automated integration between source systems and MDM infrastructure. It handles two main scenarios: where access to the "hub" by "spoke" applications is transactional and could be very
demanding, and where authoring and access to the hub is via collaborative workflow. ■ The coexistence style recognizes that master data may be authored and stored in different
systems across a heterogeneous and distributed environment. It creates greater consistency and data quality across systems, and rapid access to a single version (publishing that view to subscribing systems). This style is much more complex than the other styles because it is not really one style. Some instances represent simple publish/subscribe models (ERP pushes data out to a best-of-breed application), while others (newly emerging) mix and match where
individual attributes persist that, combined at runtime (i.e., transaction request), represent the master data.