5 market trends in Master Data Management to watch out for 2022
Do you have multiple offices in different regions?
Do different subsidiaries or divisions have different data management needs?
Do you have to manage different tax and reporting regulations?
Are you facing problems like low productivity, poor customer relationships, less-informed decision-making in your company?
-Poor data quality may be one of the reasons for the inadequacy.
According to a report by Veritas Technologies LLC, poor data management results in a 16 percent drop in workforce efficiency. The survey done among 1500 IT decision-makers and data managers across 15 countries shows that employees lose around two hours a day while searching for data.
As companies become bigger, they face lots of issues in connection to data, which results in manual repetitive transactions in data stores, inconsistent data and lack of data governance.
With the exponential growth of data, a well-structured Master Data Management (MDM) has become a necessary solution for every industry. Master Data consists of location, customers, vendors, suppliers, materials, products, and assets that are considered as fundamental data to run the business operations. These data connected to any business have the potential to give impactful insights.
Thus, many companies are seeking master data management solutions to achieve accuracy, data compliance and faster access to insights.
As reported by Master Data Management Size And Forecast, MDM Market was valued at USD 11.61 Billion in 2019 and is projected to reach USD 46.87 Billion by 2027, growing at a CAGR of 19.10% from 2020 to 2027.
Many CIOs and CDOs are looking to execute MDM to streamline the data distribution so that they can leverage the data to its full potential to achieve core business objectives and become the best in the market.
Here are the top five trends to look for in 2022 if you are looking forward to making smart decisions with the help of organised data in place.
1. More industries are adopting MDM
With an increasing number of medium and large Data-Driven businesses, there is a risk of data breaches, phishing, and others. And fragmented data increases the chance of it.
Companies in sectors including financial services, healthcare, manufacturing, telecommunication sector, retail have been embracing MDM solutions to manage these risks. MDM helps the healthcare industry by giving better analytics related to patients and service providers leading to better clinical decision making. Financial service has also got the benefits of MDM solutions by utilising the customer information management systems for upselling and cross-selling opportunities.
Likewise, the adoption of MDM in the telecommunication sector is crucial as they carry a whole lot of public data. Proper MDM solutions help them ensure integrity and security. Similarly, MDM helps the manufacturing sector to create a single platform for recording their data from the process of raw material procurement, production, sales and distribution.
More businesses are welcoming data-driven approaches, and departments across the companies are planning to adopt MDM solution to get their work done.
2. AI and machine learning in MDM
With the increasing number of sources and data creation, it is difficult for companies to identify important data.
According to the Business at Work Study by Okta, large companies have an average of 175 applications and smaller companies have an average of 73 applications. And the growth of data lakes is estimated at 30% CAGR.
Here comes the role of AI and machine learning. With AI, you can use cognitive technologies to harvest data from various sources and feed it into MDM. Similarly, Machine Learning techniques including clustering and domain identification will make the identification process simpler and increase productivity. Data duplication is another major challenge and AI is the best solution for it. AI engine can automatically identify duplicate master data and strengthen the well-defined version of all data.
Moreover, companies can train the system to recognise inconsistent data through AI and machine learning. As per Gartner machine learning and automation can reduce manual data management tasks by 45 percent.
3. Multidomain MDM will rise
The multidomain platform unites master data across various domains in a single point of truth. Multidomain solution allows you to have a complete view of enterprise data, resulting in the improvement of business processes as well as customer-facing channels.
Multi-domain solution strengthens master data from different domains in a centralised platform. Bringing multiple domains in one place, this platform ensures that the master data is accurate, complete, and consistent throughout the ecosystem consisting of your company, subsidiaries and partners.
Companies have been embracing multidomain MDM solutions for the last 5-10 years. This is helping them to streamline processes across producers, suppliers, distributors, and customers.
4. Augmented Data Management
The surge in data volume has caused difficulty in managing and controlling data. This may cause you to lag in ensuring data quality and analyse the possessed data. Augmented Data Management uses advanced technologies to improve and make the data management process efficient.
Hiring more data engineers can be an option, but as the IT industry is already facing a scarcity of data engineers, augmented data management is the best solution to these problems. Adoption of ADM automates manual tasks like performance tuning, database administration jobs and hardware configuration and other data management processes.
Various Research says that augmented data management is gaining more traction.
5. Increase adoption of cloud-based MDM
As more businesses are moving to the cloud, the MDM solution also needs to be scalable and robust.
If you are looking for speed and flexibility, cloud and hybrid MDM solution is the best solution. Most industries including manufacturing, transportation, logistic, retail prefer to have cloud-based MDM solutions due to the continuous need for consolidation between associated databases and app migration.
Research shows that the future of master data management will be defined by three powerful technologies, among which the first is the cloud. Cloud-based MDM solutions are cost-effective as it has flexible price mechanism and operates with a pay-as-you-go model.
According to market studies, by 2023, 75% of all databases will be on a Cloud platform.
Due to increasing digital transformation, MDM has become a critical initiative for any business. Experts share that the CIOs should reflect on the significance of a centrally managed data platform for enhanced security, better decisions with insights and efficient workflow. As your trusted advisor, Dogma Group suggests you choose a solution for your company, the decision should be based on your needs rather than the technical capabilities of the tool.
Dogma Group has recently launched a master data management platform, SiriusOctopus365 for maintaining, sharing, synchronizing, and retrieving data across your corporate group. Real-time data synchronisation, data level filtering, easy navigation are some of the features of SiriusOctopus365 that integrate with Business Central, available at £10 per legal entity.
Contact us on 01296328689 for a no-obligation consultation with our experienced team. Our team of experts will make sure you get your queries answered.