A new Impact Report from Aite Group, LLC explores the process of navigating an Enterprise Data Management (EDM) project, and examines budgeting and technology considerations, as well as the potential benefits and hurdles of such an undertaking. For the report, Aite Group interviewed a number of executives, in both the U.S. and Europe, that have successfully completed initial EDM projects and are currently engaged in the subsequent downstream activities.
According to the report, Navigating the Rapids of Downstream Data Connectivity, most financial institutions do not have a single master data repository, associated with a successful EDM project. Those that have completed the initial data cleansing stage have only begun the process. From there, firms must deal with a plethora of standalone systems and legacy back-offices, all in need of clean, accurate data. In fact, the initial EDM implementation can be much cheaper than bringing the data downstream to the consuming applications. Because of this, Aite Group expects firms globally to spend more than US$2.5 billion in 2008 addressing the connectivity challenge. Spending could rise to US$3.7 billion for 2010.
"The smallest segment of any Enterprise Data Management project tends to be the first segment, which could take as little as a few weeks or even days," says Adam HonorÃ©, senior analyst and author of the report. "At that point, firms have hardly earned the 'E' in Enterprise. The subsequent processes can take years of downstream connectivity effort, at a considerable expense. However, the effort comes with a potentially significant reward: the elusive utopia associated with a single master data repository."