The Forrester Wave : Master Data Management, Q1 2016

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FOR ENTERPRISE ARCHITECTURE PROFESSIONALSThe Forrester Wave : Master Data Management,Q1 2016The 12 MDM Providers That Matter Most And How They Stack Upby Michele GoetzMarch 16, 2016Why Read This ReportKey TakeawaysIn Forrester’s 31-criteria evaluation of master datamanagement (MDM) solution vendors, weidentified the 12 most significant softwareproviders in the category — IBM, Informatica,Liaison Technologies, Magnitude Software,Orchestra Networks, Pitney Bowes, Reltio, SAP,SAS, Talend, Teradata, and TIBCO Software —and analyzed and scored them. This report detailsour findings about how well each vendor fulfillsour criteria and where they stand in relation toeach other to help enterprise architecture (EA)pros select the right partner for their MDM needs.Reltio, Informatica, SAP, IBM, And PitneyBowes Lead The PackForrester’s research uncovered a market in whichReltio, Informatica, SAP, IBM, and Pitney Boweslead the pack. TIBCO Software, SAS, OrchestraNetworks, Liaison Technologies, and MagnitudeSoftware offer competitive options. Talend andTeradata lag behind.EA Pros Are Looking For Governance, Context,And ScalabilityThe market is growing because more EAprofessionals see MDM as a way to address theirtop challenges. This market growth is largely dueto EA pros’ increasing trust in MDM providers toact as strategic partners, advising them on topdata decisions.Cloud, Big Data, And Security Are KeyDifferentiatorsAs older technology becomes outdated and lesseffective, improved cloud, big data, and securitycapabilities will dictate which providers willlead the pack. Vendors that can provide theseofferings position themselves to successfullydeliver quick value to their customers.FORRESTER.COM

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSThe Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack Upby Michele Goetzwith Gene Leganza, Shaun McGovern, and Matthew IzziMarch 16, 2016Table Of Contents2 MDM Brings Data Harmony To FederatedEcosystem ChaosMDM-As-A-Service Is Set To LaunchNotes & ResourcesForrester conducted lab-based evaluations inDecember 2015 with the 11 participating vendorsand interviewed 29 customer references.4 The MDM Market Is Expanding To SupportContext And InsightRelated Research Documents6 MDM Vendor Solutions EvaluationCreate A Road Map For A Real-Time, Agile, SelfService Data PlatformMDM Capabilities Emphasize Governance,Context, And ScalabilityEvaluated Vendors Lead The MDM Market InPresence, Vision, And ScaleDigital Insights Are The New Currency OfBusinessThe Forrester Wave : Data Quality Solutions, Q420158 Evaluation Analysis10 Vendor ProfilesLeadersStrong PerformersContenders15 Supplemental MaterialForrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA 1 617-613-6000 Fax: 1 617-613-5000 forrester.com 2016 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester ,Technographics , Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of ForresterResearch, Inc. All other trademarks are the property of their respective companies. Unauthorized copying ordistributing is a violation of copyright law. Citations@forrester.com or 1 866-367-7378

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack UpMDM Brings Data Harmony To Federated Ecosystem ChaosSystems of insight feed off a connected and open data ecosystem to drive insight to action. Buttoday’s traditional architecture approaches have hampered systems of insight by creating silos insystems of engagement and systems of record.1 Organizations, reacting to these silos, are demandingbetter data access and integration. Increasingly, the demand for data sharing across silos requiresconsistency and connectedness between these views.2 However, the No. 1 challenge for businessdecision-makers is the lack of business competency to deal with data that is messy, diverse, or large.3One way to meet this data challenge is by implementing a master data management tool. Eighty-fivepercent of decision-makers say their firms will use an MDM tool this year (see Figure 1). Customerreferences from our Forrester Wave vendor participants described the variety of drivers that created thecase for MDM investment. The firms needed:› A data management hub for global and cross-system master data orchestration. A largeregional bank needed a way to get data out of a cumbersome system, mitigate data creation andduplication in other systems, and provide a hub for a complete customer view.› Data quality and governance capabilities to meet business policies. A regionaltelecommunication company needed an MDM tool that could streamline and automate stewardshipprocesses, removing the manual processes that overwhelmed stewards and bottlenecked data use.› Knowledge of the customer to support personalized customer engagement. A globalhealthcare nonprofit uses MDM to get a complete view of patients to support analysis and providepersonalized medicine.› Support for complex regulatory policies that change financial and customer needs. Amultinational banking and finance organization needed to replace its existing MDM to support newrequirements for legal entity management and organizational hierarchies.› Streamlined and automated operational processes with better master data. A high-techengineering firm needed a way to extract supplies data from the enterprise resource planning (ERP)system and orchestrate with supplies management and processes. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73782

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack UpFIGURE 1 Eighty-Five Percent Of Firms Will Implement Master Data Management In The Coming Year“What are your firm’s plans for enterprise data quality and governance technology?”(Master data management)Not interested3%Interested but no immediateplans (within the next12 months)10%Don’t know3%Expanding/upgradingimplementation21%Planning to implementwithin the next12 months23%Implementing/implemented41%Base: 737 global data and analytics technology decision-makers who use or havepurchase influence over data governance and stewardship(percentages do not total 100 because of rounding)Source: Forrester’s Global Business Technographics Data And Analytics Survey, 2015MDM-As-A-Service Is Set To LaunchOrganizations continue to adopt cloud-based software at increasing rates. In 2015, 67% of globalinfrastructure decision-makers said developing a comprehensive cloud strategy was a high or criticalpriority, up 17 percentage points from 2013. In addition, 56% of global infrastructure decision-makersprojected that they would increase spending on cloud services in 2015.4 This increase in cloud andhybrid environments, including support for analytics and operational business capabilities, requiresa clear set of governance capabilities that master data in the cloud. Not surprisingly, over half ofdecision-makers expect their firms will increase their use of MDM-as-a-service over the coming year(see Figure 2). This adds a new dimension for MDM, where wider connectivity, security, managedservices, and pricing models need deeper consideration compared with traditional on-premisesdeployments. Enterprise architects shopping for MDM capabilities to support cloud deployments willfind varying degrees of MDM deployment and pricing models as vendors mature their cloud offerings. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73783

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack UpFIGURE 2 Fifty-Six Percent Of Firms Will Increase Their Use Of MDM-As-A-Service Over The Coming Year“How much do you expect your firm’s use of the following data managementas-a-service technologies to change over the next year?”(MDM-as-a-service)Decrease bymore than 10%1%Decrease by5% to 10%3%Don’t know4%Increase by morethan 10%17%Stay aboutthe same36%Increase by5% to 10%39%Base: 814 global data and analytics technology decision-makers who use or have purchaseinfluence over data and analytics in the public cloudSource: Forrester’s Global Business Technographics Data And Analytics Survey, 2015The MDM Market Is Expanding To Support Context And InsightOver a third of vendor customers we interviewed tightly link their MDM initiatives to real-time customerengagement and business processes. These use cases depend on a wide array of attributes andmetadata that provide context for personalization, logistics, and preventative maintenance. In the past,a hub accounted for only a few hundred data elements at most. Today, customers need solutions thatcan support thousands of data elements for one domain and tens of thousands for a multidomain hub.Additionally, the data models are more dimensional and the data levels are deeper. To accommodatethis added complexity and sophistication of the organization’s needs, customer references tended toprefer contextual and analytic MDM solutions over traditional MDM tools. Enterprise architects can seethat (see Figure 3): 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73784

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack Up› Data management MDM tools solve data integration and standards challenges. Enterprisearchitects commonly choose these MDM tools for a reference data management style to uniformlypersist and govern hierarchies and data mappings. Deployments support the reconciliation ofmultiple data sources that feed a data warehouse or business applications through extract,transform, load (ETL) processes or data virtualization. These tools are meant for scenarios wheredata requires a single view or golden record and where definitions change infrequently.› Model management MDM tools support multidomain and multiview needs. Enterprisearchitects use these MDM tools to support multidomain MDM in a single master data model(e.g., account master, supplier master) or several master data models that need to come together(e.g., integration of customer, product, account, supplier). Model management MDM tools addscenarios that require more than one definition of a customer or that manage a variety of productcatalogs and assortments, data orchestration, and presentation to data integration and movementcapabilities.› Contextual MDM tools support semantic representations of business data. These MDM toolsuse a graph database to collect and link master data with additional attributes and metadata.Behavioral, preference, permission, security, identity, location, and time are all maintained andconnected in the graph and represented to data consumers within a business context. Forexample, behavior patterns can define the customer domain instead of focusing only on identity.This creates relevance, agility, and flexibility to shape master data to any business service.› Analytic MDM solutions converge MDM with insight platforms. This solution combines MDMcapabilities with analytics. Powered by a graph database, machine learning, big data, and analyticvisualization, these solutions translate master data directly into insight. Visualizations of datapatterns show customer connections and preferences. Machine learning provides insights simplyby understanding data linkage. Example scenarios are product recommendations, identity andfraud analysis, mergers and acquisitions reconciliation, and patient outcomes. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73785

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack UpFIGURE 3 The Master Data Management Vendor Landscape Is Transforming Toward Context And InsightBusinessvalueAnalyticmodelContextual modelPitney BowesReltioVeratoNovettaLiaison TechnologiesMagnitude SoftwareInformaticaOrchestra NetworksLogical modelSASSAPIBMInformation BuildersIntegration modelSoftware dataOracleDell BoomiContextMDM Vendor Solutions EvaluationTo assess the state of the MDM market and see how the vendors stack up against each other,Forrester evaluated the strengths and weaknesses of top MDM vendors.MDM Capabilities Emphasize Governance, Context, And ScalabilityAfter examining past research, user-need assessments, and vendor and expert interviews, wedeveloped a comprehensive set of evaluation criteria. We evaluated vendors against 31 criteria, whichwe grouped into three high-level buckets: 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73786

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack Up› Current offering. We assessed each vendor’s current offering by considering all of the features andcapabilities reviewed in the evaluation criteria. We also evaluated a lab-based demonstration byeach participating vendor, outlining its key capabilities.› Strategy. We reviewed each vendor’s strategy and considered how well each vendor’s plansfor product enhancement position it to meet future customer demands. We also looked at eachparticipating vendor’s platforms and partner strategy, market development strategy, and companyinvestment priorities.› Market presence. To determine vendors’ market presence, we evaluated each vendor’s 2014product revenue, installed base, and global presence.Evaluated Vendors Lead The MDM Market In Presence, Vision, And ScaleForrester included 12 vendors in the assessment: IBM, Informatica, Liaison Technologies, MagnitudeSoftware, Orchestra Networks, Pitney Bowes, Reltio, SAP, SAS, Talend (which was a nonparticipatingvendor), Teradata, and TIBCO Software. Each of these vendors has (see Figure 4):› A breadth of functionality. Each evaluated vendor includes specific functionality to providesupport for sophisticated and innovative master data management capabilities. We selectedvendors from model management, context, and analytic MDM vendor segments.› Leadership in master data management. Selected vendors demonstrate the ability to shapethe direction of the market, either through innovative delivery models or through dominant marketpresence.› Broad market presence. Selected vendors have a market presence across North American,European, and Asia Pacific markets.› Interest from Forrester clients. Clients mention the use of an MDM tool or frequently inquireabout the MDM solution when considering an MDM purchase. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73787

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack UpFIGURE 4 Evaluated Vendors: Product Information And Selection CriteriaVendorProduct evaluatedIBMInfoSphere Master Data ManagementInformaticaInformatica Master Data ManagementLiaison TechnologiesALLOYMagnitude SoftwareKalido MDMOrchestra NetworksEBX5Pitney BowesSpectrumReltioReltio CloudSAPS and understand when it is complete. Models are best applied from existing SAP content andapplications, rather than creating them from scratch, to reduce and avoid conflicts betweencompeting models and definitions between SAP and non-SAP environments.› IBM. Customers select IBM’s MDM solution to meet complex ecosystem and integrationrequirements. IBM’s Information Server MDM excels at data orchestration and syndication.Customers also benefit from years of implementation experience and MDM intellectual property(i.e., logical models and business rules for industry and business processes). Oversight of MDMprocesses and data-quality conditions in both stewardship and administration lends visibility intoroot-cause issues. The MDM cloud offering is evolving in pricing and hybrid support. Additionally,InfoSphere Big Match provides a knowledge graph for visual data exploration. Customers saythat while the MDM tool is robust, business users need more training to participate and definemaster data within and beyond the stewardship UI. IBM’s product strategy is staying the course oncore MDM functionality and governance. However, its road map for incorporating semantics andmachine learning in the MDM tool for context and scale is behind new MDM vendors and someexisting ones. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-737811

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack Up› Pitney Bowes. Pitney Bowes’ Spectrum MDM is graph based to support complex and contextualmaster data models with rich attribution. Customers find that they need minimal data expertise todefine models, rules, and workflows. Master domains can be created through tree structures anda knowledge graph. Unique is the ability to incorporate business context into the domain, such ascustomer segmentation, simply by adding a filter or rule within a graph node. This model’s flexibilityand ease of implementation allows Spectrum MDM customers to implement more quickly andachieve time-to-value in three to four months. Big data and cloud support is still emerging. Thereis connectivity and relationships with Hadoop distributions to treat Hadoop as a data source, butthe tool does not run in Hadoop. Customers can run Spectrum MDM in a private cloud, but there isno specific cloud offering or pricing. They will also need to consider enterprise security options toextend beyond Spectrum MDM’s authentication (LDAP/active directory), roles, and encryption.Strong Performers› TIBCO Software. TIBCO Software customers focus on driving MDM processes in real-timeenvironments. This means data must be up to date and high quality. With TIBCO Clarity, datastewards can easily review and prototype data rules that they can use in MDM processes. Thetool is akin to data-preparation tools coming to market where all a business data steward needs toknow is how to work in a spreadsheet. Insight into master data conditions and processes get a liftfrom TIBCO Spotfire, which visualizes MDM metadata to easily spot issues. Also, theadministrative environment is clean and easily lets admins develop and modify logical models andcreate collaborative workflows for match resolution and remediation. There is currently littleexisting MDM content, and data quality is supported through an OEM relationship with TrilliumSoftware, but this is not a bundled offering. Customers also mention that there is still somesynchronization and orchestration work needed to tweak MDM data and processes with real-timetransactional processes.› SAS. SAS MDM is part of an overall integrated data management platform. Standalone purchasesare an option, but the tool gets its strength by using the data integration, data quality, and datagovernance capabilities that connect to the overall SAS analytic value proposition. As such,visibility into MDM processes and shared content between SAS data management tools leadsto success. The solution visualizes any data challenge, process issue, and workflow. The userenvironment is clean, intuitive, and well organized to understand master data conditions, definemaster data objects and relationships, and build MDM processes. There is also little need forcoding MDM rules. Customers indicate an affordable solution with typical implementation times ofsix to eight months.7 Clients also tend to purchase SAS MDM if they are already SAS customers,either through past purchases of other data management products, such as data quality, or byaugmenting their analytics capabilities with the data management platform.› Orchestra Networks. Customers select Orchestra Network’s EBX5 MDM for its focus onmaster data management, ease of implementation, and user experience. They have expertise inestablishing a centralized master data system for complex hierarchies and relationships that take 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-737812

FOR ENTERPRISE ARCHITECTURE PROFESSIONALSMarch 16, 2016The Forrester Wave : Master Data Management, Q1 2016The 12 MDM Providers That Matter Most And How They Stack Upreference data management to the next level. It is easy for data stewards with limited technicalexpertise to assess master data conditions and quickly set up hierarchies and master data models.Knowledge graph representations of master data and stewardship UI make it easy for ongoingMDM governance and extensibility, particularly in financial scenarios. That said, customers say theystill have a lot to develop on their own, from MDM rules and processes to integration with systemsand data quality services. With smaller partner and systems integrator relationships, customersneed to ensure they have skilled Java resources.›

In Forrester’s 31-criteria evaluation of master data management (MDM) solution vendors, we identi!ed the 12 most signi!cant software providers in the category — IBM, Informatica, . Dell Boomi Information Builders. The Forreste

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