Jignesh Patel, Director of Product Strategy, CMDM, Stibo Systems, speaks with Robert Lutton, VP, Sales and Marketing at Sandhill Consultants, in a video interview about leveraging AI and ML to boost master data management (MDM) effectiveness, the need for a multi-domain MDM approach, data security and consumer privacy, the importance of a robust MDM solution, and leveraging MDM to drive transparency and support sustainability initiatives.

Stibo Systems considers AI and ML in two key ways, says Patel. As established in the first segment of the discussion, master data management is critical to the success of AI and ML, and secondly, Stibo focuses on leveraging AI and ML to boost MDM effectiveness.

Adding on, Patel states that leveraging AI and ML to automate, enhance, and improve vital MDM capabilities is a major opportunity and is core to Stibo’s product management and innovation strategy. The company focuses on improving the matching process for superior outcomes through its intelligent data matching concept, which supports establishing a single version of truth.

Stibo also looks at data stewardship process automation, aiming to free data stewards from repetitive tasks while maintaining a human-in-the-loop approach, says Patel. Another priority is leveraging AI to automate the classification of master data across different domains, he adds.

As a pure-play multi-domain MDM vendor for years, Patel explains that when customers look at an MDM vendor, they want a multi-domain approach that can support their evolving roadmap. Typically, they start with one domain, such as product or customer, and then plan to expand to other domains and use cases.

Customers want a single-platform MDM solution that adapts as their needs change, says Patel. This leads to benefits like lower total cost of ownership since they’re not juggling multiple tools or acquisitions stitched together. It also offers a unified approach to data governance, which, while optional, can be highly valuable if the platform is designed from the ground up to handle multiple domains.

Moving forward, Patel states that once those domains are managed successfully, the real benefit comes from their intersections and interplay. This includes knowing which products come from which suppliers or which locations sell specific products.

Regarding data security, Patel states that there is no special concern that multi-domain MDM inherently creates security issues. While mentioning protecting businesses, he confirms referring to ensuring consumer privacy, trust, and security. Organizations expect a vendor to handle various security needs, like restricting or granting appropriate data access, without undermining the multi-domain vision, he notes.

When asked how important a robust MDM solution is for ERP transformations, Patel says it is critical, and a compelling example is the SAP S4 HANA migration, which has been unfolding for over five years. Elaborating, he states that this event has two key aspects:

First, it reinforces the renewed importance of MDM: as organizations undertake a multi-year, high-cost migration, they often use it as an opportunity to revisit and reshape their master data management and broader data management practices.

It highlights a familiar MDM challenge of how multiple data silos and numerous ERP systems across different lines of business, often due to mergers and acquisitions, lead organizations to reassess their overall MDM strategy.

The second aspect is more specific to the migration itself, says Patel. In the context of data migration, there’s a need to consolidate and also decouple the management of master data from transactional data usage.

ERP systems are not designed to curate master data for reuse across the enterprise, so this migration becomes a catalyst to rethink operational efficiency and centralized governance, as well as a chance to position MDM in support of the migration journey.

Shedding light on how MDM can be leveraged to drive transparency and support sustainability initiatives, Patel affirms a clear shift towards sustainability and ESG strategies. The concerns amongst organizations are not just because of global conditions and responsibility to future generations, but also due to risk mitigation factors such as legal, reputational, and financial implications if they fail to meet sustainability standards.

Additionally, purchasing decisions are not just about price or product features; consumers expect the brands they support to align with their values, making sustainability a key consideration. Due to this, organizations must ensure they comply with expanding legal and financial requirements because non-compliance can severely impact brand reputation.

Furthermore, Patel maintains that maintaining a single view of sustainability data goes hand in hand with the key master data within an MDM program. Therefore, sustainability data pertains to products, suppliers, locations, packaging, and materials.

Moreover, organizations need to understand that their business partners also need to uphold their sustainability and ESG standards. He emphasizes leveraging sustainability as part of the compliance and verification process while doing business.

Concluding, Patel states that a critical element is the ability to onboard and gather the appropriate data to comply with regulations, assessments, and certifications. Rather than managing sustainability initiatives as an isolated silo, there is an opportunity to align these efforts with a central set of master data.

CDO Magazine appreciates Jignesh Patel for sharing his insights with our global community.