Legacy master data management (MDM) systems had their place decades ago. They could not fully deliver on their promise. Often, they have been complex, on-premise systems that were resource-intensive and costly to implement, manage, upgrade, and modify. And in many cases, they relied on batch processing, so data was outdated almost immediately. Not suitable for today’s digitized world. With even higher expectations from MDM, the world has moved on.
Enter modern MDM. Reltio Connected Data Platform, our first-of-its-kind, cloud-native master data management (MDM) solution, unifies and cleanses multisource, complex data into a single source of trusted information—in real time. So you get comprehensive, insight-ready data to drive better business outcomes and lower total cost of ownership.
As a data leader, you like the idea. But how can you estimate the quantifiable benefits you might expect from a modern MDM solution so you can make your business case? Read on—we can help.
The total economic impact of a modern MDM
Quantifying the impact of modern MDM is not easy, as its impact goes far beyond data management operations. That is why we commissioned Forrester Consulting to conduct a Total Economic ImpactTM study to provide key insights on the potential business outcomes that modern master data management can deliver. Forrester Consulting interviewed six of our customers and used its proven methodology to build a total economic impact model for a composite organization with both B2B and B2C operations. The study showed a significant 366% return on investment (ROI) and $13M net present value (NPV) of benefits over 3 years.
But we didn’t stop there as we want to help you calculate your own potential benefits.
Calculate your own potential ROI with modern MDM in minutes
Forrester Consulting has created an interactive calculator on our behalf to help you estimate Reltio’s potential ROI with a few key inputs from your environment. The calculator, based on Forrester Consulting’s TEI methodology and the model used in the study, focuses on the following specific benefit areas:
- Revenue increase via better customer targeting due to increased B2B account data quality and real-time data performance in B2C e-commerce
- Reduction in costs via improved first call resolution, data management team productivity gains, and migration from costly legacy MDM systems
As you enter values or move sliders for model inputs that map to benefit areas, it calculates a high-level estimate of the potential economic impact based on your business environment. Your results are presented in a downloadable report showing the estimation approach with tables for each benefit and cost calculation. In the screenshot below, you can see the table for one of the six benefit areas.
Now let’s take a look at the base TEI study’s customer journey and quantified benefits, to understand the scope of the interactive calculator.
Reltio’s impact on business
Before adopting our solution, the customers interviewed used legacy third-party MDM platforms and in-house solutions. But these solutions were often on-premise and outdated, leading to high costs to maintain and upgrade them, as well as poor data quality—impairing sales and marketing effectiveness, customer experience, and employee productivity. Not to mention overloading data stewards and engineers while limiting innovation.
After implementing our solution, these customers were able to sunset their legacy systems to significantly reduce infrastructure, maintenance, and upgrade costs. They reported a reduction in data silos, gaining a unified 360-degree view of their customers and improved insights enabling better customer experience, sales conversions, and efficiency.
The Forrester Consulting TEI study identified six quantifiable benefits for the composite organization. The Forrester ROI estimator provides you with the ability to customize the calculation for the same value drivers. The list below shows the risk-adjusted benefits calculated for the composite organization over three years:
Increase operating profit
Our customers gained:
Our customers saved:
Team productivity gains
Our customers improved by:
In the calculator, we have focused on the quantified benefits. The TEI study also includes unquantifiable benefits our customers experienced. And the quotes above only tell part of the story. Take a look at our customer success page to read about detailed experiences from some top brands in a variety of industries.
Last but not least. If you would like to learn more about the TEI study, watch the on-demand webinar to hear the behind-the-scenes story from a featured Forrester TEI consultant on how a composite customer achieved a 366% return on investment (ROI) and $13M net present value (NPV) of risk-adjusted benefits over 3 years along with a <6-month payback.
This is a great place to start that captures the benefits quantified by our six interviewed customers. But there is more to consider for your unique environment. If you need more help, we are here for you. Please reach out to speak with Reltio experts with your questions and for a deeper look into the potential business impact of adopting a modern MDM.