Gartner has released a new report stating that Master Data Management (MDM) is of great importance for achieving effective information governance. The market research firm states that the failure to manage information accurately has been the root cause of several incidents, including the leak of sensitive information to WikiLeaks, and can be fatal to the success of MDM programs.
Ted Friedman, vice president and analyst at Gartner, said, “The recent global financial crisis has put information governance in the spotlight. Information governance is a priority of IT and business leaders as a result of various pressures, including regulatory compliance mandates and the urgent need for improved decision-making.”
A technology-enabled business discipline, MDM is a system that enables business and IT organisations to work together for ensuring the uniformity, accuracy, stewardship, semantic consistency and accountability of the organisation’s official, shared master data assets. Gartner says that MDM is one the most notable information governance programs. MDM’s market continues to grow because it focuses on specific business drivers and business-led initiatives.
According to Gartner’s estimates worldwide MDM software revenue will reach $1.9 billion in 2012, a 21 percent increase from 2011.
Debra Logan, vice president and analyst at Gartner, said, “We’ve seen rapidly growing interest in information governance-related topics, and this trend shows no sign of abating. Information governance is the only way to comply with regulations, both current and future, and responsibility for it lies with the CIO and the chief legal officer. When organizations suffer high-profile data losses, especially involving violations of the privacy of citizens or consumers, they suffer serious reputational damage and often incur fines or other sanctions. IT leaders will have to take at least part of the blame for these incidents.”
In the next few years, the information governance initiatives are expected to broaden significantly to include more sub-disciplines — information quality, life cycle management/retention, privacy and security — and more of the organisation’s critical data. Organisations need to create an MDM governance framework, an organisational structure, and a set of roles and responsibilities to suit their MDM strategy and politics.