I was quoted a few times in the FT today around the topic of what the CFO should be worried about. I thought it might be worth expanding on a couple of things as they might help people trying to build their MDM business case.
The first article is around outsourcing and the challenge for the CFO that this presents. The basic concept is that while outsourcing functional aspects of work is clearly a good thing this can lead to challenges around information fragmentation and consistency. The solution to this is broad-ranging of course but MDM is a crucial part of it. As an organisation uses SaaS solutions and outsourcing functionality in terms of systems and business processes then it becomes more critical that the CFO and CEO mandate an information strategy that still provides the horizontal consistency that they need to retail visibility and control. At its core MDM is about providing the cross references that deliver that view.
The second article is about the impact of Big Data and privacy and the challenge that organisations need to make in terms of matching information on these massive data sets. The challenge of MDM and Big Data was covered in a recent paper but at its heart is the point that really you want to do your mastering BEFORE it becomes a big lump of big data so at least you are in control.
Finally is a topic is about the challenge of data privacy, something I’ve blogged about before. The point here is two fold, firstly you need to treat customers as individuals as privacy laws are at the individual level not at a database record level and the second is how using ID references for core customer information and ensuring that other information remains federated rather than in a big customer hub means that theft becomes much harder. If you steal 10,000,000 unique IDs with a bit of transactional information but no product data, no addresses not customer information and indeed nothing of any value then the risk to the company is much less. Its this shift towards a Jericho attempt at security that MDM really helps.
So the CFO should care about MDM, but not because its MDM but because it gives them control, visibility, security and compliance.
(for more from one of the better tech journalists its worth following Kate Bevan on Twitter)