Is Cloud Based Master Data Management The Future Of MDM?
MDM has revolutionised the way that most companies function, with almost every business employing master data management vendors to work with them, towards achieving better results with their master data hub. Data management has now become the core necessity in every sphere, with MDM solutions being placed at the centre of IT functions. As the art of data management is a constantly evolving process, the market will keep growing and developing to a stage, where newer and better processes will soon take over the older ones, providing better features and functionality along the way. Most data experts believe that the future is now; and that future is: Deploying MDM initiatives on cloud. As predicted, Cloud based master data management will have a huge impact on the MDM market, and vendors will most likely switch to solutions that operate on cloud.
In most organisations, solutions like data quality management are implemented on the business premises itself. Hence, most companies are afraid to risk their master data by sharing information on other digital platforms, which do not operate on similar tried-and-tested lines. Moreover, the higher management is strictly against the idea of having an outsider deal with its data, for the sake of compliance and confidentiality. However, companies are slowly opening up to the idea that cloud based data services, when introduced to SaaS applications, will work towards achieving success with various MDM initiatives, like data governance or consolidation. Though cloud based technologies have gained their equal share of debate and discussion, these solutions present varied advantages to the business, which includes improved returns on investment, increased flexibility, enhanced accessibility, along with scalability and overall productivity.
However, cloud based MDM comes with its own set of challenges. First off, most businesses are unaware of its availability, because only a small number of master data management vendors have been able to invent and market cloud based products. Bigger master data management vendors have certain products that can work in cloud environments, but their complete potential is unlocked only in well-composed and definite areas. Hence, it is understandable that these vendors do not wish to divert their target audience towards cloud MDM software tools, as the issues involved are far too many. There is also a risk of losing their business license in the process. With the increasing industry compliance regulations and growing rumours of data breaches nowadays, businesses are afraid to introduce cloud based MDM solutions into their reliable MDM software applications.
But there’s no denying the fact that cloud based master data management is slowly but surely, changing the face of master data management solutions across the globe. Most business experts think that it is good to implement cloud-based solutions, when the need to please the demands and needs of stakeholders arises. However, when working on the complete overhaul of enterprise-wide MDM to improve the effectiveness of business applications, one must implement solutions restricted to business premises only. If businesses work together towards implementing cloud based solutions, they will be able to produce high quality master data that is not only easy to use and effective, but also trustworthy, consistent and powerful, in every way.