The rate of expansion in the master data management (MDM) market suddenly exploded from 2005 to 2006, according to a recent study by ARC Advisory Group.
The sector experienced a year-to-year increase of over 30 per cent over the period and is set to grow more quickly over the next five years than it has previously, the company said.
ARC explained that master data management supports the "global identification, linking, and synchronisation of all data elements that help to fully explain products, customers, and other key categories of data".
"An MDM serves as a central system of record and improves the quality of the information lifecycle across data creation, augmentation, use, and retirement," it said.
The segment is expected be one of the fastest emerging software markets and is forecast to grow at a compounded annual growth rate (CAGR) of 14.7 per cent over the next five years.
The market was $680 million in 2006 and is forecasted to be over $1.35 billion in 2011.
"Part of the recent success in MDM comes from a newer, more holistic way of looking at master data issues," said Steve Banker, service director at ARC Advisory Group.
"Historically, there were different flavors of a point solution known as PIM, or product information management, required. One version of PIM helped you synchronise your data with customers.
"Another version helped you pull product data from diverse sources into a catalogue and then publish it through different channels (on-line, print, CDs, etc.), while yet another form helped you do more accurate procurement analytics. These and other point products have had fairly narrow benefits.
"MDM solutions aimed at master product data have an increased ability to tackle all of these issues using just one solution."
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