The need for companies to link data from multiple sources has made master data management (MDM) systems one of the fastest-growing software markets, according to a study by analyst firm ARC Advisory Group. MDM systems serve as a central system of record designed to improve information quality from data creation to retirement.
The MDM market grew more than 30% from 2005 to 2006, ARC notes, adding that it expects this trend to continue through the next five years, with the market expected to grow from $680 million in 2006 to $1.35 billion by 2011.
MDM has evolved from product information management solutions, which were separated by one version that helped synchronize data, another that catalogued data from different sources and an application that helped provide more accurate procurement analytics, notes Steve Banker, service director at ARC. MDM solutions are designed to address all of these needs in one suite.