Report:
The Forrester Wave™: Master Data Management, Q2 2023
How does Forrester define the Master Data Management market in 2023?
Master data management (MDM) has evolved significantly with the proliferation of intelligent technologies like machine learning and AI, incorporating automated data quality, governance, compliance, and low-code/no-code configuration. Modern MDMs serve as a hub for consolidating trusted data, integrating data through graph engines, delivering real-time streaming for data quality management, and providing prebuilt multidomain capabilities for customers, products, suppliers, employees, locations, and assets. MDM validates its critical role in data fabric architecture by natively integrating complementary capabilities such as product information management (PIM), digital asset management (DAM), data classification, and profiling. It bridges gaps in data fabric architecture by offering a connected, governed, secure, and compliant data center with data enrichment, context, machine learning, real-time processing, and analytics capabilities.
Key Facts for The Forrester Wave™: Master Data Management, Q2 2023 in 2023
- Publication Date: 19-Jun-2023
- Document ID: RES178500
- Summary: In our 24-criterion evaluation of master data management (MDM) providers, we identified the most significant ones and researched, analyzed, and scored them. This report shows how each provider measures up and helps data and analytics professionals select the right one for their needs.
- Authors: Jayesh Chaurasia, Sudha Maheshwari, Faith Born, Jen Barton
How did the Master Data Management market evolve in 2023?
- Modern MDMs have evolved to incorporate automated data quality, governance, compliance, and no-code/low-code configuration
- Providers are natively integrating complementary capabilities such as PIM, DAM, data classification, and profiling
- MDM serves as a critical hub in data fabric architecture for consolidating trusted data
- Modern MDMs deliver real-time streaming for data quality management and prebuilt multidomain capabilities
- Traditional MDMs have advanced to incorporate data enrichment, data context, machine learning, real-time data processing, and analytics
- Strong trend for MDM initiatives in highly regulated industries (healthcare, CPG, banking, finance) due to stricter compliance controls
- Data security is climbing priorities as data breaches increase
- 15 providers evaluated across Leaders, Strong Performers, Contenders, and Challengers
- Real-time data streaming and processing becoming essential capabilities
- Solutions must leverage emerging technologies such as AI, ML, and blockchain
What product features are required to be included in this year's evaluation?
- An enterprise-class MDM platform offering. Vendors must include basic support for the following MDM capabilities: data integration; data quality; data lineage; data governance; MDM tooling; data replication/synchronization to apps/processes; and one or more domains including customer, product, supplier, and asset.
- A standalone current MDM offering. We included only products that are currently available and not tied to any particular applications (such as packaged applications, SaaS offering, etc.) or a specific business intelligence (BI), predictive analytics, or middleware stack. The product must run in a standalone environment to support various kinds of workloads. It should have a stock-keeping unit (SKU).
- A referenceable installation base. We evaluated vendors with 30 or more enterprise customers using their MDM product or service.
- Meets minimum revenue requirements. We chose vendors with a minimum of $10 million in annual revenue for MDM.
- Forrester's enterprise customer interest. Forrester included only vendors that customers mentioned several times in the past 12 months during Forrester inquiries, guidance sessions, customer shortlists, consulting projects, and/or case studies related to MDM or related topics.
What are the common features of top products in the Master Data Management space?
No common features specified.
Scope Exclusions
- Products tied to particular packaged applications or SaaS offerings
- Products tied to specific business intelligence (BI), predictive analytics, or middleware stacks
- Products that cannot run in standalone environments
- Products without a stock-keeping unit (SKU)
- Vendors with fewer than 30 enterprise customers
- Vendors with less than $10 million in annual MDM revenue
- Vendors not mentioned by customers during Forrester inquiries, guidance sessions, shortlists, consulting projects, or case studies in the past 12 months
Inclusion Criteria
Vendors must, among other requirements:
- Enterprise-class MDM platform offering with basic support for data integration, data quality, data lineage, data governance, MDM tooling, data replication/synchronization, and one or more domains (customer, product, supplier, asset)
- Standalone current MDM offering not tied to particular applications or specific BI, predictive analytics, or middleware stack, with a SKU
- Referenceable installation base with 30 or more enterprise customers
- Minimum of $10 million in annual revenue for MDM
- Vendor mentioned several times in past 12 months during Forrester inquiries, guidance sessions, customer shortlists, consulting projects, and/or case studies
Offering Strengths — Relative Weighting
- Matching, linking, and entity resolution — 5%
- Data enrichment — 5%
- Data integration — 10%
- Customer 360 domain — 10%
- Product 360 domain — 5%
- Multidomain — 5%
- Business templates — 5%
- Deployment — 5%
- Time to value — 5%
- Scalability — 5%
- Compliance — 5%
- Security — 10%
- Data quality — 10%
- Data context — 5%
- Lineage — 5%
- Data governance — 5%
Strategy Strength — Relative Weighting
- Vision — 25%
- Innovation — 25%
- Roadmap — 20%
- Partner ecosystem — 10%
- Adoption — 10%
- Pricing flexibility and transparency — 10%
FAQs
Q: What does this research cover?
A: This research provides a comprehensive evaluation of 15 master data management (MDM) providers across 24 criteria, grouped into current offering (50% weight), strategy (50% weight), and market presence. The evaluation covers MDM capabilities including data integration, quality, governance, multidomain support, compliance, security, and emerging technologies like AI/ML. It assesses vendors' positions as Leaders, Strong Performers, Contenders, or Challengers based on their product capabilities and strategic direction.
Q: Who should use this research?
A: Data and analytics professionals should use this research to select the right MDM provider for their needs. The report is particularly valuable for organizations looking to procure MDM solutions that support compliance and data security through federated governance, deliver real-time data streaming and processing, provide data intelligence on a unified solution, and expand MDM use with innovative technologies. The Excel-based comparison tool allows readers to customize criteria weightings based on their specific requirements.
Q: What are the mandatory features of vendors included in this market?
A: All vendors included in this evaluation must provide: (1) an enterprise-class MDM platform with basic support for data integration, data quality, data lineage, data governance, MDM tooling, data replication/synchronization to apps/processes, and one or more domains (customer, product, supplier, asset); (2) a standalone current offering not tied to specific applications or middleware stacks with a SKU; (3) a referenceable installation base of 30 or more enterprise customers; (4) minimum $10 million in annual MDM revenue; and (5) significant mentions by Forrester's enterprise customers in inquiries, guidance sessions, shortlists, consulting projects, or case studies in the past 12 months.
Q: What are some reasons for not being included in this report?
A:
- MDM product is tied to or bundled exclusively with packaged applications, SaaS offerings, or specific BI/analytics/middleware stacks
- Product cannot operate in a standalone environment
- Lack of a separate stock-keeping unit (SKU) for the MDM product
- Fewer than 30 enterprise customers using the MDM product or service
- Annual MDM revenue below $10 million
- Insufficient customer interest as evidenced by lack of mentions in Forrester inquiries, guidance sessions, customer shortlists, consulting projects, or case studies over the past 12 months
- Missing basic MDM capabilities in data integration, data quality, data lineage, data governance, MDM tooling, or data replication/synchronization
- Lack of support for at least one core domain (customer, product, supplier, or asset)
Q: What should buyers consider when evaluating products in this market?
A:
- Support for compliance and data security through robust federated governance, especially for highly regulated industries
- Real-time data streaming and processing capabilities to handle continuous data from multiple channels
- Data intelligence capabilities on a unified solution including management of data policies, business procedures, consent, metadata, roles, and stewardship
- Adaptability to changing business needs through emerging technologies (AI, ML, blockchain) for automated and augmented data management
- Industry accelerators, cloud-native modular deployment, and built-in data intelligence for faster time to value
- Self-service capabilities, new data products creation, and real-time insights generation
- Natively integrated data governance capabilities with quality management, retention policies, privacy and access controls
- Distributed enablement to support federated governance for data fabric and data mesh architectures
- Flexible and scalable infrastructure for real-time data processing
- Advanced AI/ML automations for matching, dynamic merging, stewardship, and integration
Q: How has the Master Data Management market evolved in 2023?
A:
- Evolution of MDM to incorporate automated data quality, governance, compliance, and no-code/low-code configuration driven by AI and machine learning
- Native integration of complementary capabilities such as PIM, DAM, data classification, and profiling for seamless customer experience
- Modern MDMs serving as hubs for consolidating trusted data with graph engines and real-time streaming capabilities
- MDM's critical role in data fabric architecture providing connected, governed, secure, and compliant data centers
- Advancement from technical solutions to incorporating data enrichment, context, machine learning, real-time processing, and analytics
- Strong trend for MDM initiatives in highly regulated industries (healthcare, CPG, banking, finance) due to stricter compliance controls
- Increasing importance of data security controls and compliance issue management
- Growing demand for real-time data streaming and processing to handle variety, velocity, and volume of data
- Customer expectations for holistic unified MDM solutions with data intelligence capabilities
- Adaptation to emerging technologies (AI, ML, blockchain) for automated and augmented data management
- New use cases for MDM including ESG, supply chain optimization, and fraud detection
Q: What differentiates Strength of Offering vs. Strength of Strategy?
A: Current Offering evaluates the strength of the vendor's existing product capabilities across 16 criteria including technical features like data integration, matching/linking, domain support (customer 360, product 360, multidomain), deployment options, security, compliance, data quality, governance, and lineage. Strategy evaluates the vendor's future direction and market approach across 6 criteria including vision for the market, innovation capabilities, product roadmap, partner ecosystem strength, customer adoption levels, and pricing models. Current Offering focuses on what the product can do today, while Strategy focuses on where the vendor is headed and how well-positioned they are for future success.
Reference
- Forrester, The Forrester Wave™: Master Data Management, Q2 2023, 19-Jun-2023, ID RES178500
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