Q
Problem solve Get help with specific problems with your technologies, process and projects.

How to calculate MDM ROI using business problems

To calculate the return on investment (ROI) for master data management (MDM) systems, focus on the business problem, according to Jill Dyché.

How can we calculate the return on investment (ROI) for our master data management (MDM) system?
You shouldn't. Not that you shouldn't be ROI-focused. Or that you shouldn't calculate. But you shouldn't focus return on investment (ROI) on master data management (MDM) -- you should focus it on the business problem you want MDM to solve.

Maybe you're a communications company that needs to recognize customers as individuals in order to consolidate...

billing. How much will a consolidated bill save you in mailing costs? How much will it cost you in support costs if the customer data is inaccurate and the bill details are incorrect? Or maybe you're a high-tech company with multiple versions of the same business customer and your corporate hierarchies are all over the map. How would fixing this drive business benefits? How could it save costs by letting you streamline territory assignments or target marketing messages? Or maybe you own the supply chain for the high-tech firm and your supplier relationships are, uh, sub-optimal. Or perhaps you could sunset a system or two by semantically reconciling your product data?

You get my point. Don't try justifying the hub itself. Calculate the ROI on the first one or two business initiatives that the hub will enable. Then watch the system pay for itself.

This was last published in September 2008

Dig Deeper on MDM best practices

PRO+

Content

Find more PRO+ content and other member only offers, here.

Have a question for an expert?

Please add a title for your question

Get answers from a TechTarget expert on whatever's puzzling you.

You will be able to add details on the next page.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchBusinessAnalytics

SearchAWS

SearchContentManagement

SearchOracle

SearchSAP

SearchSQLServer

Close