A revolution in master data management (MDM) is reshaping how organizations collect, unify, manage and use data. Make no mistake, this is a revolution, not an evolution; the MDM industry is set to more than double over the next five years. A new report projects it will grow from $11.3 billion in 2020 to $27.9 billion by 2025.
This transformation is largely driven by mass consumer migration to digital platforms as COVID-19 has limited or completely curtailed in-person commerce. But the digital shift was already underway before the pandemic, as consumers flocked to top online brands like Amazon, Walmart, eBay and Target. Experts expect this shift to persist after the crisis abates. McKinsey’s global consumer sentiment surveys indicate “that the spike in online sales will continue.”
According to a recent report from Accenture, “traditional MDM is focused on establishing a sanitized single version of the truth… While this is still vital, its value alone has diminished in the digital era.” The push for the next generation of MDM to satisfy the demands of what is often called the experience economy is driving some of the most exciting advances in enterprise technology today. The use of graph concepts to create connected data with relationships among individuals, organizations, products and other entities; real-time APIs to embed the connected customer data in myriad applications; and the shift to hyper-personalized engagement are key technologies making this transition possible with the emergence of cloud-native applications.