Analysis
The Link Between Data Warehousing and MDM
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By: Dr Dave Waddington, Senior VP and Head of Research, The Information Difference Published: 3rd June 2010 Copyright The Information Difference © 2010
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“Analytic MDM” has become
established as one of the styles of MDM implementation adopted by
businesses needing to effect a significant improvement in the
speed and quality of their business reporting, often centered
around one or more national, regional or enterprise data
warehouses.
This is unsurprising since the
“dimensions” of a data warehouse
are essentially master data (e.g., hierarchies of products,
customers, locations, etc.). Despite the close relationship
between MDM and data warehousing, a glance at even the recent
literature on these topics reveals that these two important areas
tend to be treated as entirely separate.
At The Information
Difference we were interested in exploring the linkage
between master data and data warehouses and to understand the
scale, scope and success rates of MDM and data warehousing
initiatives in business. We have therefore conducted a survey
into the link between data warehousing and master data
management.
208 respondents completed the survey from all around the world;
the majority from North America (57%) and Europe (27%). Over half
the respondents (53%) came from companies having annual revenues
greater than US $ 1 billion. The respondents represented a wide
spectrum of industries.
The key findings from the survey include:
- Almost half (46%) the organizations surveyed have one or more
data warehouse and MDM implementations.
- A substantial proportion has
“live” MDM implementations (48%
for those with both DW and MDM).
- The majority (57%) of implementations of MDM are
“enterprise-wide”.
- MDM implementations manage a median of 4 million records.
- Although the common master data domains of
“Customer” and
“Product” still unsurprisingly
received the highest rankings, the mean number of domains is 4
with a median of 3.
- A median of 5 full time equivalent (FTE)s is required for
ongoing maintenance of the MDM implementations.
- Fully two-thirds have data governance in place showing an
improvement over our earlier studies.
- Almost two-thirds of organizations are feeding their master
data directly to the BI applications.
- There is a strongly held view (81%) that master data should
be sourced directly from the MDM system; some 36% were already
doing so!
- Fully two-thirds consider their MDM implementation to be at
least moderately successful with only 1% rating it as
unsuccessful.
- Only 27% of organizations have a single data warehouse.
Organizations have a median of 3.
- The number of source systems is also revealing, with a median
of 10.
- Of those who have already implemented MDM, the dimensional
data in the warehouse (essentially the master data) is
overwhelmingly maintained in their MDM system.
- The scope of the data warehouse implementations for
three-quarters of organizations is
“enterprise-wide”.
- More than half of the organizations surveyed update their
data warehouses on a daily basis with only 10% using a trickle
feed approach to achieve near real-time data.
- Despite the importance of ensuring only high quality data is
uploaded to the data warehouse, 43% still rely on Extract,
Transform and Load (ETL) tools for this process.
- Most organizations have had live data warehousing for a mean
of 8 years (median 7 years).
- Organizations are positive about the success of their data
warehousing implementations with 82% considering their
implementations to be at least moderately successful.
The full report is available for purchase from
The Information Difference.
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