The global big data explosion is here. In my last post, I discussed how to start your Master Data Management (MDM) journey. I took a deeper look at reference data management and explained why it is most often the easiest place to get started -- the data type is more black and white, which makes it easier to find common ground across an entire group. Recently, I have been seeing many discussions around Big Data and wanted to address how MDM can and should also be a part of the larger Big Data program within an organization.
Today, we are seeing many organizations in different industries explore how they can best manage and use big data for competitive advantage using a variety of tools – ultimately how they can get a better return on their data for their investment. MDM is an effective tool for an organization to adopt as part of a Big Data strategy as it will help establish a consolidated view of the data and provide organizations with the data they need to better manage relationships and make strategic decisions. Additionally, MDM is integral in organizations’ overall governance programs. This is especially true for organizations using customer, product, financial data and threat/fraud analytics to get deeper insight and a more comprehensive view of its data. Some common scenarios I see for MDM and Big Data include:
- MDM will leverage Big Data technology to analyze unstructured data from Twitter, Facebook, industry websites and blogs and allow customers the ability to pull insights from massive amounts of this unstructured data and govern these within the master data management solution. MDM can then tie this social media information to customer and other data mastered from traditional sources.
- Big Data technologies will resolving extremely large data sets with ease such as large marketing lists that need to be quickly verified against customer lists or do-not-call lists or new customers via acquisition that need to be analyzed quickly to determine overlap. These large data sets create a problem in the high computational cost of matching upwards of 200 million records against 100 million customers and providing marketing the quick turnaround they require. CPU-intensive efforts that have taken days to complete will now take hours.
For example, just recently we saw one customer in the financial services industry that strategically integrated their MDM, governance and Big Data. By linking customer and social media data they were able to increase revenues, improve response times and respond more appropriately to changes in customer behavior.
Per a recent survey from TDWI with 369 companies, about 29 percent are planning to start implementing MDM, while 17 percent already practice MDM as an enterprise-wide, unified discipline. If these companies establish a “master data management” strategy, they will be in a strong position to tackle the big data explosion and make business decisions lining them up for a fruitful future. Organizations and enterprises need to realize Big Data’s dual purpose of recognizing opportunity and minimizing risk.
Big Data combined with a sound MDM strategy provides the clear insight and transparency that organizations need to compete, advance and develop the next idea. As I work with clients it is about maximizing your return on information (ROI) and increasing that ROI.