Report finds leading MDM technologies improve data standards that enable finance organizations to increase staff productivity (3X) and reduce finance costs (45%)

The Hackett Group, Inc., a leading generative artificial intelligence (Gen AI) strategic consultancy and executive advisory firm, has released its latest Digital World Class® Matrix, focusing on the MDM software marketplace. The report reveals leading vendors in the space and examines the critical relationship between Gen AI and MDM and governance.

Improving data standards has a transformational impact on finance organizations, driving a 3X increase in staff productivity and a 45% decrease in finance costs – critical efficiencies because finance leaders are increasingly being asked to do more with less. At the same time, these leaders are also being tasked with spearheading their organizations’ digital transformations, which now largely focus on leveraging AI-enabled technologies. However, leading organizations are quickly realizing that data quality is a key requisite to maximizing the benefits of AI. Likewise, high-quality data is critical for lagging organizations striving to establish excellence in their transactional processes. All of these factors create a compelling business case for investing in solutions that enable data standardization.

The Master Data Management Digital World Class Matrix provides an in-depth guide to the leading software providers and the impact of their solutions on companies’ operations, generating accurate transactions, preventing fraud and improving revenue assurance. The report evaluated 16 software vendors for their capabilities and the value delivered to clients based on vendor briefings and customer data input across 26 different value criteria.

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The report evaluates MDM vendors based on their capabilities and value realization. Capability ratings assess a vendor’s capacity to enable effective governance and management of critical data domains – including customer, supplier, product, and employee through core functions like data modeling, acquisition/integration, quality, security, user interface, and analytics.

Value realization ratings measure vendors’ impact on key MDM performance metrics such as data accuracy, record creation speed, issue resolution and overall user adoption. Among end users assessed, 58% create new master records within two hours, 55% maintain duplicate records at 10% or less, and 75% have improved data visibility and intelligence.

Top vendors are excelling in the top three stated software selection objectives:​ improved data accuracy and consistency, increased operational efficiency, and enhanced decision-making. Leading solutions offer intuitive data modeling with intelligent data integration, along with key functionality of data match/merge, enrichment and deduplication. Select vendors are excelling with data security/privacy and delivering real-time dashboards.

All vendors are integrating AI into their platforms, including natural language interaction, automated data management and low-code/no-code development. Gen AI specifically enhances data accuracy by identifying and correcting errors while automating reconciliation. AI technology provides intelligent recommendations for data stewards, allowing them to focus on strategic tasks rather than repetitive data management activities.

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“Organizations are rapidly learning that to fully exploit Gen AI-enabled applications, they must be fueled by timely and accurate data,” said Bryan DeGraw, associate principal and senior research director for Finance Market Intelligence at The Hackett Group. “Early adopters of MDM platforms are realizing significant improvements in critical process metrics such as time to create new records, data integration accuracy and deduplication. The benefits of MDM software are quickly realized in transactional processes such as order processing, customer billings, supplier payments and general accounting. Benefits continue to be achieved through improved forecast accuracy, reports and predictive analytics.”

By using this comprehensive analysis, functional professionals in finance, procurement, information technology, and human resources can make informed purchasing decisions aligned with the strategic priorities and critical metrics they seek to impact through improved master data governance and management.

MDM Digital World Class® assessments are part of The Hackett Group’s full 68-page report. The assessments should be read in the context of the entire report. A 33-page MDM Digital World Class® Matrix Report summary report is also available complimentary with registration. Inquiries about purchasing the full MDM Digital World Class® Matrix report can be made by visiting our Market Intelligence webpage.

The Hackett Group does not endorse any participant, vendor, product or service depicted in its research. This research should not be considered as advice that a buyer select only those participants based on their ranking or position on The Hackett Group’s Digital World Class® Matrix. You should not rely upon any material or information within this research as a basis for making any business, legal, financial or any other decisions. Any such reliance shall be solely at buyer’s risk.

The Hackett Group research publications consist of the opinions of its research organization and should not be interpreted as factual statements. To the fullest extent permitted by law, The Hackett Group disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability, suitability or fitness for a particular purpose.

The information contained in this research is provided on an “as-is” basis with no guarantees of completeness, accuracy, usefulness or timeliness. The Hackett Group assumes no responsibility or liability for damages of any kind arising from any information, data, content, materials, or references within its research, including but not limited to direct, indirect, incidental, consequential, special, and punitive damages.

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Source: businesswire

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