Mastering MDM Modernization: A Proven 6-Step Checklist for Success

Fun fact: Honey never expires, lasting thousands of years. However, unlike honey, your data has a shelf-life. If you struggle to make confident data-driven decisions, it may be due to outdated master data.

Organizational investments in traditional master data management (MDM) systems pay off by addressing key use cases around customer experience, digital commerce and supply chain optimization, to name a few. However, those legacy investments cannot scale to today's data volumes and are costly to maintain and manage.

This limitation is why organizations are moving to cloud-based MDM solutions that offer scalability, flexibility and cost-effectiveness. An MDM service offered as a cloud service (SaaS) consolidates and ensures the accuracy of critical data ("a golden record"), such as customer and product information at scale. 

Shifting to a cloud-based MDM system can significantly enhance operational efficiency and adaptability. However, this transition poses challenges, including potential disruptions to both upstream and downstream systems that introduce a degree of uncertainty and risk, especially for companies navigating this transformation for the first time. To assist in this important endeavor, below is a detailed guide outlining six crucial steps you can follow for a successful MDM modernization.

Focusing particularly on flexibility, cloud-based MDM systems offer dynamic scalability and more streamlined integration with various data sources. This adaptability allows you to respond more swiftly to market changes and data demands without the substantial costs and physical limitations associated with traditional MDM infrastructures.

Step 1: Define the Business Case
The journey begins with a compelling business case that aligns your MDM modernization objectives with your vision of long-term goals. This foundational step ensures resource allocation is justified, addresses key questions about the value of moving to the cloud and establishes strategic alignment with your company’s direction and expected ROI.

Step 2: Assess Your Current State
Understanding your starting point is crucial. Conduct a thorough assessment of your current data environment, including the state of your master data, the cost implications of maintaining an on-premises solution and the feasibility and impact of cloud migration. This step lays the groundwork for a well-informed transition plan.

Step 3: Establish Roles and an Expert Team
Success hinges on having a skilled and knowledgeable team. Clearly define roles and responsibilities, ensuring your team possesses the necessary technical expertise and business insight. Invest in training or enlist experienced system integrators to guarantee a smooth and efficient migration process.

Step 4: Define Project Scope  
Outline the project scope by prioritizing which master data domains you should migrate first. Address how to handle obsolete data and necessary changes to data flows. This step is vital for setting clear boundaries and expectations, ensuring the project stays focused and manageable.

Step 5: Make Project Timeline
Create a detailed project timeline encompassing the entire migration process, from architecture and data flows to the cutover plan and dependencies. Break down the timeline into manageable sprints, delivering incremental value and keeping the project on track to meet business outcomes.

Step 6: Create a Change Management Plan
A robust change management plan is essential for a successful transition. Develop strategic communication and training plans tailored to each stakeholder group. By constantly communicating the benefits and addressing roadblocks, you can drive adoption and ensure a smooth transition to a new MDM SaaS platform.

In the complex financial services landscape, a leading firm faced significant challenges with its on-premises MDM system, including high infrastructure and licensing costs, lengthy upgrade cycles and stringent compliance requirements. The firm embarked on a transformative journey to Informatica MDM SaaS to address these issues and drive efficiency.

The result? This strategic shift delivered tangible benefits such as cost savings, streamlined operations, enhanced agility to adapt to business needs and strengthened data security. Leveraging a microservices architecture, the firm achieved scalability and efficiency, supported by monthly releases and AI-powered insights from CLAIRE^®, the Informatica AI engine. Meticulous planning and internal reviews preceded a successful implementation phase, ensuring a seamless transition and positioning the firm for modernized, effective data management.

Built on microservices, Informatica MDM SaaS offers scalability, resiliency and robust security with data segregation. It integrates seamlessly with other cloud services, supports AI and machine learning (ML) for advanced data management, improves collaboration and enhances decision-making with predictive insights. Monthly automatic updates via Informatica Cloud Trust ensure security and efficiency, contrasting with traditional on-premises upgrade cycles.

Intrigued? Dive deeper into this compelling transformation and explore how you can achieve similar success by accessing our detailed white paper on MDM modernization. Don’t miss out on discovering the full potential of master data management in the cloud.