In recent years, the Russian market for regulatory reference information and master data management systems has undergone significant changes due to both internal and external factors. One of the key aspects was import substitution caused by the departure of Western vendors. Under the new conditions, companies began to actively look for alternative solutions, which led to the development of Russian systems. What other trends have an impact on the market today, how customer demand and requirements are changing, what trends vendors take into account when developing their solutions and how they see the future of the market - in the TAdviser review.

After the withdrawal of MDM systems from the Russian market of companies such as SAP, Oracle, Informatica and IBM, import-independent MDM platforms of Russian vendors began to be in demand. Import substitution has become one of the key drivers of the rapid growth of the market and the urgent need of many companies for which effective data management is extremely important for decision-making and successful development. Customers actually had to rebuild the IT infrastructure, since Russian systems close narrower, point tasks than imported counterparts, and not all of them connect with each other.

According to Navicon analysts, the demand for solutions for master data management and NSI in 2023 increased by 20%. SDI Solution estimated the growth at 30%.

At the same time, Russian vendors faced both challenges and new opportunities. It was necessary to solve difficulties with import substitution and quickly plan replacement strategies, but this also stimulated developers to accelerate the development of their own solutions and increase quality requirements.

Enterprises have more choice among Russian NSI management platforms, which has led to an increase in requirements for Russian vendors and contractors for work. With import substitution in technical requirements, customers more often formulate functional tasks even higher than they are on foreign platforms. At the same time, enterprises that still work on imported NSI management products do not experience any special problems - support is carried out by trained Russian specialists without the help of technical support from a foreign vendor. Companies of the non-resource sector of the economy are becoming more and more customers of the creation of corporate NSI, there are projects to build NSI management at relatively small enterprises, - comments Dmitry Vyvolokin, Deputy General Director of INTERTECH HOLDING.

Companies began to pay more attention to ensuring that the functionality and scalability of solutions are closely related to business goals, especially in the context of the transition to a data-driven approach. With economic uncertainty, businesses are actively looking for ways to consolidate and improve data quality, making master data centralization an important strategy for many companies. The launched programs for the design and centralization of MDM and NSI allow not only to select suitable vendors, but also to form high-quality functional and business requirements. And also highlight specific business areas where the use of centralized master data is critical, for example, in supply chains, product catalogs, "says Igor Melnikov, Head of Retail Chains at CUSTIS.

Large corporate customers realized the risks of further exploitation of imported solutions and began to actively study alternative products from Russian developers. Immediately after leaving the market of foreign vendors, many hoped that the situation would somehow improve. However, over time, the development of imported systems stopped, they stopped receiving new functions, vendor support disappeared. This prompted corporate users accustomed to products from global suppliers to pay attention to domestic developments. Quite mature MDM solutions have been presented on the Russian market before. Taking into account the new introductory ones, they were not only able to offer users a comparable level of service, but also began to gradually replenish with new functionality, which is no longer possible to get as part of the use of imported products, - comments Natalya Zeitenidi, General Director of BFT-Holding.

The increase in sanctions pressure, the disconnection of support for foreign vendors, the lack of critical functionality required due to the complication of business processes and the scale of activities - all this influenced the growth rate of the software market in the field of data management. Additional drivers include labor market shortages and risks of integrating new systems into existing IT landscapes.

Another factor that seriously influenced the course of events was a significant increase in customer identity. The fact is that in recent years, experienced and ambitious young guys have come to various key positions - CDO, IT director, etc. - who perfectly understand what they want. Now presale begins not with the words ″ tell us about MDM ″, but immediately with a discussion of the functional requirements for the product. Such a significant increase in the professional condition of customers cannot but rejoice - now we are immediately actually entering the coalition, creating a working group that is able to solve the widest range of important tasks, - notes Alexander Konstantinov, commercial director of Universe Date.

Russian developers were rapidly increasing the basic functionality of boxed products, and also demonstrated flexibility in custom development.

Even before the departure of foreign vendors in the Russian market, there were enough domestic solutions for NSI. They may not have been as sophisticated in terms of scalability, resiliency, and load requirements as foreign solutions such as SAP. But domestic products made it possible to close common basic tasks in the framework of working with NSI. Therefore, in my opinion, with the departure of foreign vendors in the market of solutions for NSI, there was no shortage. Rather, on the contrary, the market received an impetus for the development of Russian IT products in terms of usability, a larger set of functions and the versatility of IT solutions, based on the needs of different industries and companies. Competition has allowed development, many current decisions have already applied the principles of AI. Therefore, I do not see any difficulty with import substitution, - says Alisa Shkolnikova, head of the Data Governance department of the analytical solutions department of KORUS Consulting Group.

The growth rates were also influenced by the so-called "related" implementations of MDM systems when switching from ERP solutions of foreign vendors to similar solutions of Russian developers.

Customer requirements for the functionality of MDM systems have also undergone changes. The market has become focused on self-service solutions that allow easier migration to new systems and reduce the burden on overloaded IT departments. In addition, the developers began to shift their focus from implementing local solutions to SaaS models with monthly payment.

Another notable trend was the availability of enhanced integration capabilities in MDM with a variety of external sources. Ready-made connectors to the Unified State Register of Legal Entities, Federal Information Address System, NSD, EFRSB and other external directories began to be in demand.

Many companies have finally adapted to the new environment and have started new IT projects that focus on data quality and data integration. The overall level of business digitalization has increased, therefore, and interest in MDM solutions, which have begun to be introduced not only by large market players, says Aleksei Orekhov, CEO, DATAREON.

According to expert estimates, the market volume in 2023 could vary from 800 million to 30.6 billion rubles, showing a positive trend compared to previous years.

It is difficult to calculate the volumes of the entire MDM solutions market by the end of 2023, and we took the amount of 11 billion rubles as a benchmark, based on data from the CSR study ″ The market for management and data processing systems in the Russian Federation: the current state and development prospects[1], published in May 2024, - comments Alexander Uchaev, product manager of 1C:MDM Regulatory Reference Information Management, 1C.

The market is now undergoing an active transformation stage, and experts highlight several major trends that affect its development. Integration with cloud solutions. The move to cloud-based platforms is driving the dynamic growth of MDM systems and enabling companies to implement solutions faster, reducing infrastructure costs while enabling data flexibility and scalability. Increase the amount of data. With data growth and processing complexity, MDM systems help companies ensure their integrity and accuracy.

Real-time data management. There is a growing demand for MDM systems that can provide real-time data. This is important for operational decision making and provides a competitive advantage in the market.

Integration with analytics and AI. More companies are integrating MDM with analytics and artificial intelligence tools, which helps not only manage data, but also analyze it, and, as a result, improve business solutions.

Another important trend is the strengthening of data quality requirements, reliability and relevance as they become critical to management decision making. This requires companies to implement stricter data management standards.

The growth of the main business directly affects the increase in the number of NSI records. Implementing an MDM system becomes a necessity to effectively manage regulatory reference information.

Companies strive for autonomy in the development of their IT systems, and want to be able to independently develop and modify their solutions, which reduces dependence on external suppliers and provides greater flexibility in adapting to changing market conditions, - comments Igor Melnikov, Head of Retail Networks at CUSTIS.

A quite tangible trend is the desire of customers to influence the development of the product, determine its Road Map, and immediately influence the development of events at the level of implementation analysis. The days have ended when the customer's representatives put up with the carelessness and slowness of foreign vendors who refused to include the customer's wishes in the Road Map. Now the customer himself wants to form product requirements. It is under this dictation that the current formation of the MDM market is taking place, - notes Alexander Konstantinov, commercial director of Universe Date.

A stable interest in MDM systems and client data management is also associated with the hyperpersonalization trend. If earlier companies interacted with segments of thousands of people, now there is an interest in deeper segmentation and personal handling. And for this you need to have complete information about the client in one place. Other trends include the increased activity of Roskomnadzor and regulators, dictated by a large number of personal data leaks. Now the client MDM takes over the functions related to compliance with the 152-FZ, management of consents to the processing of personal data and advertising. In its area of ​ ​ responsibility and automatic inspections of individuals and legal entities according to various lists of Rosfinmonitoring, and the formation of reports within the 115-FZ. MDM also manages data retention and depersonalization. In this regard, we went much further than traditional Western MDMs, "says Nikita Nazarov, CTO of HFLabs.

As the main drivers of market growth, the review participants note the transition to data-driven management models, the need to promptly update information in digital channels, optimization of processes in procurement and inventory management of material and technical resources (M&E), as well as the desire of companies for independence from foreign technologies and ongoing import substitution. Moreover, both MDM solutions themselves and corporate data warehouses, ERP systems, during the migration of which there is a need to centralize the main directories.

In addition, the market is influenced by:

Reduce data management costs. Efficient MDM systems help reduce data management costs, which is key for many companies. They reduce the time it takes to recover and prepare data. Improving data quality. The use of MDM technologies helps to improve the quality and consistency of data, which is important for analysis and decision-making.

Increase in mergers and acquisitions. As a result of mergers and acquisitions, companies face the need to combine and standardize data, which also stimulates demand for MDM solutions.

Focus on customer experience. In a highly competitive environment, companies strive to improve customer experience, and MDM plays a key role in creating and optimizing customer experience.

Emergence of new industrial sites. Now new industries are being actively built, business is entering new industries for itself. Often, enterprises are engaged in production, which consists of smaller details - and MDM systems are needed to manage the data that underpins business processes.

Another growth driver is the serious requirements of customers for the functionality of the product out of the box. If earlier, under the influence of foreign vendors, Russian companies introducing these technologies were forced to put up with the extremely scarce functionality of the finished solution, hoping to "catch up with the functionality" at the implementation level, now the "powerful box" has become a market requirement.

An equally significant aspect is the desire of companies to optimize their production and business processes.

Business quickly reacts to various changes, for example, in the economy, logistics or consumer behavior, and is increasingly paying attention to the effectiveness of processes and information systems - they should benefit the company, give it the opportunity to stay on the market and develop, "says Alisa Shkolnikova, Head of Data Governance, Analytical Solutions Department, KORUS Consulting Group.

The reduction of companies represented in various sectors of the economy encourages Russian enterprises to occupy vacant niches, which leads to the need for information support of business processes and there is a need for infrastructure solutions, "said Denis Krivogin, Deputy General Director for IT SDI Solution.

Polina Sorokina, consultant to the Data Strategy and Axenix Data Management practice, highlights the growth of digitalization, the role of data and analytics in management decision-making and the popularity of the ecosystem approach among the key market drivers.

More and more players are choosing the path to creating an ecosystem that combines data from subsidiaries, partners and customers to obtain a synergistic effect, which in turn requires creating the ability to quickly integrate data from different sources based on unified reference books, the expert says.

Dmitry Kichko, Vice President of Consulting at Borlas Group, notes that MDM systems are traditionally in the shadow of ERP. When they talk about import substitution, they primarily mean ERP systems. But the foundation of a successful project for the implementation of corporate systems is master data management and NSI.

Therefore, we can say that the MDM market is developing in parallel in conjunction with ERP and is developing very actively. More and more corporations are importing ERP systems and one of the first stages is introducing MDM. Taking into account the fact that 1C confidently holds the primacy in the domestic ERP market, the choice of a master data management system to preserve the common information ecosystem in most cases remains with the decision of this vendor, - comments Dmitry.

Comprehensive projects with the replacement of foreign ERP solutions are one of the main customers on the topics of master data management and NSI normalization. The trend is just beginning and unlikely to end in the next few years. A shortage of MDM systems implementation specialists on the part of the customer is often a stopper for the project. As an integrator, we help with personnel, but we also feel a lack of professionals, - adds Evgeny Antropov, director of the IBS master data management department.

At the same time, market growth is slowed down by factors such as the difficulties of integrating new systems into existing IT infrastructures and the insufficient experience of domestic vendors in implementing large projects. These obstacles can make it difficult to successfully implement new solutions and technologies, which in turn affects the overall dynamics of market development.

SDI Solution notes that the market is also slowing down compromised trust in vendors and software developers. It forces large enterprises to raise the question of the stability of a particular vendor and his solution and consider the purchase of the solution core. Sometimes this is an uncontested condition for a deal. At the same time, the absence of an independent analytical agency on the market that provides an independent deep assessment of the solutions presented at MDM increases the time and increases the cost of choosing software by potential customers.

Considering MDM as a less priority information system based on the results of the stage of requesting information about products and services from vendors or integrators realizes the risk of lack of the necessary budget for mature software that covers the requirements of the TFT and creates a deferred demand effect, "says Denis Krivogin, Deputy General Director for IT SDI Solution.

The expert also draws attention to the fact that the lack of a software testing procedure for compliance with the customer's requirements at the stage of evaluating potential candidates for import substitution increases the likelihood of choosing a solution that cannot ensure the effective implementation of the company's business processes. And as the scale of activity increases, the likelihood of this risk increases.

Another negative factor for the market is the shortage of qualified specialists. The outflow of IT specialists from Russia and the uneven distribution of the remaining ones towards the financial sector and large holdings with their own software development, creates a personnel shortage and slows down the development of commercial software products in the field of data management and innovation.

A significant limitation is the lack of expertise to support and develop systems after the implementation project is completed. Under these conditions, the role of a mature integrator is increased, ready to support expertise and resources during the transitional period of "engraftment" of the system.

The labor market is experiencing a shortage of specialists, so enterprises are trying to automate their daily activities as much as possible, including putting in order reference information. Consistent and correct reference data, optimal organization of NSI in the IT landscape of an enterprise or holding, verified business processes for working with reference data is one of the groundwork for improving efficiency, - says Alexander Lichman, Marketing and Sales Director of PLM ASCON.

Many vendors, and the ″ 1C company ″ among the first, understanding the importance of the MDM direction, invest a lot of resources and efforts in the development of the educational process for young specialists, - says Alexander Uchaev, product manager of 1C:MDM Regulatory Reference Information Management, 1C company.

Working with records is a routine task for line personnel, which changes quite often. If data is handled separately and by different employees, the risks of duplication of information in different systems, as well as the likelihood of errors due to human factors, increase. The introduction of the NSI system will reduce the amount of manual routine work and improve the quality of data, - says Nikita Bessmertny, Business Development Manager at K2Tex.

Also, among the factors that slow down market growth, we can distinguish:

• High cost of implementation.
• Lack of a clear data management strategy.
• Competition from alternative solutions.
• Lack of market maturity in data handling.
• The general economic situation and the trend towards cost reduction.

At least 40% of large companies are already performing projects on import substitution of NSI management systems or are planning their implementation. At the same time, there is a reduction in budgets for NSI projects and even sequestration of already allocated budgets, which is associated with the general economic situation. The reduction in budgets from initial plans reaches 20-30%. The market is also significantly affected by the increase in the cost of software platforms of Russian vendors and the lack of qualified resources specifically on the topic of NSI management, - comments Dmitry Vyvolokin, Deputy General Director of INTERTECH HOLDING.

Conservative forecasts of market growth, stabilization after separation from global companies and changes in ownership structure - all these factors raise concerns about the launch of large infrastructure projects among leading customers. Of course, when compared with the solutions familiar to large enterpris'y best-in-class from Western vendors, Russian solutions will lose - huge investments have been invested in the development of Western solutions for decades, "explains Polina Sorokina, consultant to the Data Strategy and Data Management practice Axenix.

In addition, companies that have not yet felt the strong pressure of the market in terms of competition and lower profits may not pay attention to such important areas of digitalization as working with data.

For many companies, the need to manage data is a second or third-order task. Many argue as follows: the main thing is data storage systems, followed by ERP systems, CRM systems, and so on. With this approach, the importance of MDM descends sharply. However, such companies do not take into account the most important factor - if the data is not managed, this will inevitably lead to losses, moreover, monetary. If you do not deal with your data, do not clean it, do not remove doubles, then any, even the most beautiful ″ data lake will ″ become a ″ data swamp, ″ warns Alexander Konstantinov, commercial director of Universe Date.

Alexey Yudin, Commercial Director of SOFROS, notes that the MDM market continues to evolve, adjusting to new challenges and opportunities arising in the face of an ever-changing digital landscape. Despite existing obstacles, such as the high cost of implementation and the complexity of integration, the demand for MDM systems remains stable due to the growth of data, the need for its quality and processing speed.

Now the demand for MDM systems has grown significantly, and this entails the emergence of new products and players. There was a healthy competition for the client, for the best software solution. But there is a downside to this situation - there is a rush on the market. More and more newcomers are trying to enter the promising market, and they are not always ready to offer customers a fairly mature product. Of course, sooner or later this creative chaos will end, key products and market leaders will be determined. The main thing is that during this time the loyalty and trust of customers in MDM systems and their manufacturers, as well as in domestic software as a whole, has not decreased, "adds Evgeny Kokin, Head of MDM at Navicon.

Experts have different estimates of the dynamics and volumes of the market at the end of 2024. In INTERTECH HOLDING, the total volume of NSI projects is estimated at about 3.5 billion rubles. These are both large NSI projects (worth more than 100 million rubles, such projects are implemented no more than 7-8), and medium and small projects (approximately 40-50 medium and more than 100 small projects), excluding outsourcing projects. IBS The market volume is estimated at a smaller amount - 2-2.5 billion rubles. The company notes that the assessment may vary due to which components are taken into account: licenses, custom development, data quality, methodology.

The company, SOFROS relying on Master Data Forecast data, calls the figure several times more - 15 billion rubles.

We are guided by the following assessment for ourselves. According to Master Data Forecast, the global MDM market is estimated at $16.22 billion for 2024 and has a growth dynamics of 19.8%.[2] In proportion to Russia's GDP, it can be assumed that the volume of the Russian market in 2024 is estimated at 32 billion rubles. However, we consider this estimate to be at least 2 times overestimated, since the import substitution process is not as dynamic as we would like. So we estimate the market at 15 billion rubles. with a dynamics of about 20%, - comments Alexey Yudin, Commercial Director, SOFROS.

They agree with this assessment in, "1C" noting that according to a study by the CSR, the volume of the domestic market for data management solutions in 2024 may amount to about 15 billion rubles.

SDI Solution calls the larger market volumes.

Based on the data of world analytical agencies, Russian electronic trading platforms and presales, we estimate the volume of the Russian market for MDM systems at the moment at 49.92 billion rubles, which is approximately 3% of the global MDM market, "says Denis Krivogin, Deputy General Director for IT SDI Solution.

Market growth, according to surveyed experts, ranges from 10 to 30% per year.

Average revenue growth across the market in 2024 was expected to range from good to exceptional, according to reports from companies that took part in the ranking. The first line was taken by SDI Solution.

Over a twenty-year period, TAdviser collects information about IT projects in various industries. During this time, a huge amount of data has been accumulated on the implementations of various solutions. With regard to MDM systems, the publication has accumulated a base of seven and a half hundred projects, of which more than half of the implementations are in Datareon.

MDM systems are most in demand today in industries such as:

• Retail: Manage assortment, prices and customer data.
• Financial Sector: Customer and Product Data Management.
• Production: management of items and process data.
• Power and Neftegaz: management of technical data of equipment and infrastructure.
• Logistics and Transportation: Route Optimization and Fleet Management.

It is in these areas that companies have to work a lot with counterparty directories and nomenclatures, a lot of constantly changing data. Also, their work is associated with rather strict regulations and regulatory documents. The most popular service is not so much the introduction of an IT system as the organization of work with reference books, the definition of bottlenecks when creating them. This includes the deactivation of outdated positions and interaction between accounting systems, as well as the integration of MDM with other systems that are already used in the company and which have reference data.

Enterprises of the non-resource sector of the economy are becoming more and more customers for the creation of corporate NSI, projects appear to build NSI management at relatively small enterprises, in the public sector, and the construction industry. Experts observe examples of successful implementations of MDM solutions in large Russian banks, mining companies, state corporations - that is, in those organizations that need to quickly respond to the changing requirements of the business environment and maintain competitiveness in the market.

As Yevgeny Antropov, director of the IBS master data management department, notes, customers appear who, after a rapid growth stage, understand the need to form a reliable foundation for IT architecture in the form of high-quality master data management. The lack of MDM seriously hinders the ability to implement IT-Business applications and business automation. Similar tasks arise after the associations of enterprises and industries.

If earlier everything worked separately, now it is difficult to justify the need for an additional expensive system. It is easier for businesses to allocate funding for additional production than to order a service. Growing industries, as well as those requiring rapid import substitution, are the main customers of MDM systems. Such are the financial sector, industry, telecom, transport and others, - the expert comments.

Implementation or renovation of MDM systems is observed in large companies in almost all industries, including fuel and energy complex, metallurgy, agriculture. Customers are interested in replicated solutions, with advanced functionality and pre-filled NSI databases, which may allow them to reduce implementation time. Often, customers ask a potential contractor to show layouts of the future system on various software platforms and compare ″ live ″ prototypes of the system, "said Dmitry Vyvolokin, Deputy General Director of INTERTECH HOLDING.

The growing demand for MDM systems is due to the increase in the volume of data and the need for their effective management. Companies understand that high-quality data is one of the key success factors in a competitive environment.

It is important to take into account, first of all, the motivation and readiness of enterprises to implement MDM, as well as the temporary, financial and human costs of implementation. In particular, for the real implementation of MDM systems at the enterprise or corporation scale, it will be necessary to "teach" all programs to work with this data. When deciding on the use of MDM products, customers need to clearly understand that these are long-term and resource-intensive projects. The implementation and application of MDM will require the development of a multi-year program and an understanding that it will be necessary to transform and rethink the work of many business processes, and all programs used in them. What you have to do with it "on the go," without stopping their work, "says Igor Kochan, Deputy General Director for the Development of PLM Technologies, Top Systems.

When choosing a system, customers are guided by several important criteria, including:

• availability of ready-made proposals for project implementation, including in terms of methodology;
• compliance of the solution with import substitution criteria;
• Maximum coverage of functional and non-functional requirements at the decision evaluation stage
• Cost-effectiveness and cost-of-ownership
• Easy integration with existing IT systems
• compliance with the business objectives of the company;
• quality of architectural solutions and reliability of the system;
• Support specific industry requirements
• Functionality and completeness of the toolkit
• Flexibility and scalability to meet the company's growth and changing needs
• providing low and no-code approaches in the solution;
• The ability to configure data quality checks in the system
• AI connectivity and open API availability;
• availability of data protection tools (authentication, authorization, encryption and access control).

Customers are looking for, first of all, reliable solutions that will ensure order in the data, minimize costs, and support business growth. An important role is played by the availability of high-quality support from the vendor or integrator and a transparent roadmap for product development, as well as the ability to independently develop and configure the system without dependence on the vendor, and create a pleasant user experience, which requires taking into account requests for interface and customization.

Companies now face two big challenges - achieving vendor independence and scalability of solutions. Therefore, one of the key requests is a seamless transition from imports to domestic solutions without stopping key business processes. Customers also strive for the integration of disparate data sources to obtain a unified version of the truth, improve the quality and relevance of data for making informed decisions, as well as the flexibility and scalability of systems that allow them to quickly adapt to changes, - comments Igor Melnikov, Head of Retail Networks at CUSTIS.

Potential customers of MDM systems are interested in cooperation within industries in the direction of standardization of master data, as well as in the development of corporate master data management systems towards the ideology of Data Governance. Large customers are tasked with centrally managing corporate master data in a digital manufacturing project. This creates the prerequisites for standardizing the description of master data, which is one of the cornerstone tasks of the national project ″ Data Economics, ″ aimed at leading the development of industrial production and technical re-equipment of domestic enterprises, says Denis Krivogin, Deputy General Director for IT SDI Solution.

Today, customers expect MDM to work in real time and update information in just seconds. They are increasingly building their corporate IT landscape in such a way that MDM becomes a mission critical system with 99.99% availability. Such systems are highly loaded because they provide reference information to the entire landscape of the organization. And if we are talking about a business critical system on which the entire structure of the company relies, then such projects have a check of 100 + million rubles, - adds Nikita Nazarov, technical director of HFLabs.

Most customer requests relate to a single corporate MDM system that supports multi-domain mode, managing master data of a specific domain, to solve a narrow application business problem.

According to Alexander Lichman, Marketing and Sales Director of PLM ASCON, there are also requests to support geographically distributed work, organize master data in the presence of several historically established sources, flexible restrictive lists, data quality management mechanisms, fullness and replenishment of reference books, data transfer to ERP systems.

Customers have a request for a personalized approach. More in demand are not boxed products with unified functionality, but solutions that allow you to cover the individual needs of the customer. The need for accelerated migration to new systems has created a request for self-service solutions that allow specialists with any technical level to start and configure business processes. Expanded opportunities for integrating MDM systems with external data sources are also in demand, "said Pavel Shubny, director of the custom development department at SIGMA.

Customers are primarily interested in the application use and management of existing data. Data sources are usually ERP, ECM, CRM, and MDM systems. Of course, at industrial enterprises we see great interest in PDM, PLM, EHS systems, etc. - they are also data sources, - says Alexander Uchaev, product manager of 1C:MDM Regulatory Reference Information Management, 1C.

Russian MDM systems, as market experts note, have made significant progress in development and in many aspects are no longer inferior to their Western counterparts, and in some they are completely ahead of them. For example, they allow data integration with systems of services such as Federal Information Address System and GAR, and also take into account Russian specifics, while foreign vendors usually offer unified solutions for the global market.

At the same time, it should be borne in mind that MDM modules were mainly offered as part of large ERP systems of Oracle, SAP, etc., while domestic products are more isolated and allocated to a separate segment. And individual solutions for managing regulatory reference information were not so widely presented on the Russian market even before the departure of Western vendors.

The regulatory reference information management processes themselves are well implemented in Russian products. Another question is that domestic systems do not have much experience in implementing, and rather, it is the issues related to practical recommendations for organizing a data service that may cause the feeling that the Western solution was somehow ″ better than ″. In general, it should be noted that the basic functionality of the product does not always determine the success of the implementation. And here one cannot but say that the advantage of working with a Russian product is both its lower cost and the ″ proximity of ″ and implementation partner and vendor. The possibility of customization for client processes in Russian products is also much better, - comments Alexey Yudin, Commercial Director, SOFROS.

According to Alisa Shkolnikova, head of the Data Governance department of the analytical solutions department of KORUS Consulting Group, if Western vendors decide to return to the Russian market in a couple of years, they will face strong competitors who will have both a large client base and a well-developed roadmap. Dmitry Kichko, Vice President of Consulting at Borlas Group, notes that the capabilities and quality of Russian MDM systems already allow them to be used in any case with complex functionality and critical requirements for storing a large amount of data and their processing speed.

But it should be taken into account that the success of implementation and the effectiveness of further use of master data management systems and NSI is determined primarily by a team of consultants and integrators, because master data is always at the junction of different business processes. Accordingly, it is ″ necessary to make friends ″ different business units of organizations, and this can only be done by experienced implementers. The shortage of such performers is today the main problem in the MDM market, says the expert.

Among the advantages of Russian systems are compliance with Russian legislative and regulatory requirements, flexibility and adaptability to business specifics, the possibility of prompt support and refinement taking into account the individual needs of users, as well as the absence of language and cultural barriers when interacting with the supplier. All this makes Russian solutions more attractive for domestic companies.

However, Russian MDM systems have their own features. These include a limited set of examples of large projects, which makes it difficult to assess the safety margin and scalability of systems. In addition, a smaller ecosystem of partners and integrators compared to familiar Western solutions can limit integration and support opportunities. Restrictions in functionality for specific industries are also possible, where Western solutions had a significant accumulated amount of functionality, including due to many years of development after implementation.

According to Dmitry Vyvolokin, Deputy General Director of INTERTECH HOLDING, Russian systems, unlike Western ones, cannot yet provide the required level of service functions, technical support, documentation of platforms or developments, training, change management. This may change if 2-3 Russian NSI management platforms enter the international market, after which full-fledged global technical support, an advanced documentation and training system should appear.

Another of the disadvantages that companies face is the development of various classifiers.

Not all domestic systems have built-in flexible functionality for classifying NSI objects, but with an increase in the number of implementations, the shortage of this functionality will go away. Disadvantages include a lack of high-quality training courses and scarce documentation. Also, most vendors cannot offer full-fledged demonstration versions of systems, - comments Alexander Belyakin, senior manager of TeDo technology practice.

On projects on the transition from foreign ERP class systems to Russian analogues, companies are faced with problems of low-quality basic and reference data.

To correctly migrate directories, transfer remnants, configure integrations - immediately lay a solid foundation and create a new IT landscape, relying on correct basic and reference data, companies decide to implement an MDM system. For example, the 1C:ERP provides an NSI unit, but for effective record management, you need to take it to an alienated decision such as Unidata or 1C:MDM. We recommend allocating a separate NSI block when the number of records exceeds ten thousand, - says Nikita Bessmertny, business development manager at K2Tekh.

Also, in Russian systems, functions have not yet been fully optimized or interfaces have not been developed. And it is not yet entirely clear how Russian MDM solutions cope with the high load - large users did not have enough time to check this.

Some customers who have been using foreign solutions for a long time have slightly high expectations for their replacement. They not only expect products with similar functionality from Russian developers, but also require them to immediately solve problems that previously existed in imported software, add new functions and do all this in the shortest possible time. In addition, not all customers are ready to consider comprehensive universal platform solutions - corporate users have already developed the practice of using specialized industry MDM systems with a pre-installed set of master data and NSIs isolated from the circuit of other large corporate products, for example, ERP, - notes Natalya Zeitenidi, General Director of BFT-Holding.

But all the shortcomings are gradually overcome with an increase in the number of customers and requests, active development and accumulation of experience by Russian vendors, which allows them to confidently compete with Western counterparts.

• Service architecture and API orientation. To facilitate system integration and accelerate development.
• Strengthen data security requirements. Protecting information becomes a priority in the face of increasing cyber threats. All integration components are potentially risky systems, and it is necessary to determine in advance the level of risk and efficiency acceptable to the company from system integration.
• Low-code approaches in creating systems. There is a growing interest in Low-code products that do not require the involvement of programmers to configure processes. It is important for companies to be able to create data models in user mode. In addition, this approach allows you to reduce the cost of developing a solution for a specific customer, reduce the time and budgets for the development of the functionality of the solution for users.
• Internet of Things (IoT). The growth of data from devices requires new approaches to master data management.
• Switch MDM products from relatively simple status models and workflows to significantly more complex maintenance processes. They are implemented by a built-in BPM module that allows users to flexibly build NSI management processes without involving vendors or integrators.
• Development of cloud solutions. They remain consistently in demand, despite all the concerns of the companies. Now there are high-quality public clouds from Russian providers.
• A comprehensive approach to working with data and the use of platform MDM solutions.

Businesses are no longer interested in using products that can only store and process data. At the same time, implementing individual services, for example, for consolidation or data integration, is also not an option. Preference is given to complex platform products that combine everything you need - MDM, ETL, BPM, ESB mechanisms, - notes Aleksei Orekhov, CEO, DATAREON.

• Big Data and real-time analytics. For processing large amounts of data and making operational decisions.
• Artificial intelligence and machine learning. To analyze and normalize data, automate their cleaning and enrichment processes.

According to reports from leading foreign analytical agencies such as Garnter, Forrester, MatketDataForecast, ICT and others, artificial intelligence is currently playing a decisive role in the MDM market, improving data quality, automating data management processes and providing predictive analytics capabilities. AI-based applications of MDM systems can classify records, find field values ​ ​ in unstructured names, and predict values ​ ​ of other attributes, identify data inconsistencies, duplicate records, and provide other useful information, thereby improving overall management and operational efficiency when working with data. A similar picture is observed in the Russian market. Customers have begun to include functionality in the MDM system, which is implemented through the use of AI, "comments Denis Krivogin, Deputy General Director for IT SDI Solution.

AI is a reality that is already helping the entire data management industry. An example is the introduction of virtual digital assistants developed on the basis of AI. Users can significantly speed up the data processing process, reduce labor costs and improve the efficiency of working with large reference books.

Artificial intelligence and machine learning not only complement traditional methods, but significantly expand the capabilities of MDM systems, making them more efficient and reliable. For example, the capabilities of AI technologies are already widely used in MDM to clean and normalize data, predict and prevent errors at the stage of entering, updating and updating internal data based on information from external sources, creating personalized proposals and improving user experience. One way or another, most scenarios for AI applications in MDM systems are aimed at improving data quality and reducing manual routine work, adds Nikita Bessmertny, business development manager. K2Teh

Now, procedures such as mapping between credentials or normalizing data are performed manually. I see a trend towards the development of AI in this particular part - mepping directories, autocomplete those data that already exist, and automatic routing of coordination. That is, all routine work will be automated, - says Alisa Shkolnikova, head of the Data Governance department of the analytical solutions department of KORUS Consulting Group.

As Nikita Nazarov, technical director of HFLabs, notes, in terms of NSI, language models are already doing a good job of classifying data, but since companies have a desire to minimize errors and possible miscalculations, the introduction of these technologies is cautious.

Large language models still do not provide transparency in the process, as they do not allow you to answer the question of why this or that decision was made when de-publishing client records. Experiments in this area continue, but the business is not yet ready to accept the risks that arise when making a decision, the logic of which is hidden.

Natalia Zeitenidi, CEO of BFT-Holding, also highlights the emergence of industry solutions on the market among the trends. Due to the difficulty of forming specialized reference books, most likely, such systems will be created by developers or integrators on the basis of real implementation projects with their subsequent replication.

Another trend is the maximum use by MDM solutions of external state information systems as "reference" directories, on the basis of which the organization will maintain its internal directories.

This will make it possible to enrich the corporate system with reliable data without additional labor costs and a proactive reaction to changes in key data downloaded from government systems, the expert comments.

Products gradually reach the level of maturity when they can incorporate the latest technological solutions. However, a sense of measure is important here: if earlier, when working with world software manufacturers, customers often paid for excessive functionality, today they are not ready for this. Increasing IT literacy and the ability to influence product development is one of the trends in the development of the consumer community, summarizes Evgeny Kokin, head of MDM at Navicon.

According to experts, market growth will continue in the near future. The emphasis will shift towards MDM systems with "built-in" digital specialists of the NSI based on neural networks.

Also, within the next 2-3 years, import substitution should be completed, after which the volume of new implementations may decrease, and the market will enter the phase of refinement of existing solutions, their development and merger of system classes.

One of the key changes will be to strengthen the role of data in business strategies, which will require companies to implement more efficient data management systems. Integration and interoperability requirements will also increase, making it necessary to create seamless MDM integration with other business applications.

The development of domestic technologies and solutions will continue to strengthen the position of Russian vendors in the market. Digital products will develop that completely cover the business need for data management. Competition will intensify between market participants, and customers will become more demanding when choosing solutions.

The number of implementations of domestic solutions for NSI will only grow. Now there are not enough solutions for small and medium-sized businesses, despite the fact that they also work with NSI. There is also a possibility that there will be services that will allow SMB to normalize work with data for a small subscription fee and develop further, building its work on cleaned data - there are already such requests on the market, - said Alisa Shkolnikova, head of the Data Governance Department of Analytical Solutions at KORUS Consulting Group.

An important trend will be the increase in the importance of user experience. Systems will be developed with an emphasis on convenience and intuition for users.

It is expected to deepen specialization, which will lead to the emergence of industry MDM solutions adapted to the specific requirements of various sectors of the economy.

Companies that invest in modern MDM systems and introduce advanced technologies will be able to gain competitive advantages, increase their efficiency and adaptability to changes in the market, - comments Igor Melnikov, Head of Retail Chains at CUSTIS.

In the near future, the market will continue to saturate and move towards technological sovereignty. In the longer term, on the horizon of 6-7 years, we expect the full-featured industry ERPs to appear on the market, supporting not only the planning and operating activities that are already available, but also digital twin management methods, for which new MDM solutions will be required. This is likely to provoke another wave of development of technological platforms, "says Natalya Zeitenidi, General Director of BFT-Holding.

Dmitry Vyvolokin, Deputy General Director of INTERTECH HOLDING, predicts the expansion of the set of services in NSI maintenance systems, the transition from the introduction of single directories to the creation of complex NSI systems designed to maintain 20-50 directories. In addition, we should expect market consolidation.

There is currently a clear surplus of NSI management platforms on the market. Most likely, in the future 3-5 years should remain 3, maximum 4 platforms. There should be fewer of them, but they should be high-quality, sophisticated and convenient for business users. For the Russian market, this amount is quite enough, even taking into account the trend towards the digitalization of the economy, the expert believes.

In the next 5 years, about 3 software products will be determined, which will become market leaders. This is a natural process: competition is very important for business success, but having 80 + software products on the market, such as BI-class systems, is not commercially effective, agrees Alexey Yudin, Commercial Director, SOFROS.

AI and machine learning technologies will play an increasing role. According to Alexander Konstantinov, the commercial director of Universe Date, an AI-based intelligent assistant will be able to identify analogues, eliminate takes and automatically check for errors. All this will become the standard for working with data. AI technologies will greatly simplify the analysis and processing of information, allowing users to solve problems faster and more accurately.

The prospects for the MDM market in Russia are excellent: on the one hand, master data management is the path of mature companies, and on the other, it is a story about restoring order in the data landscape, and everyone needs order. In my opinion, in the next 2-3 years, up to 60% of Russian companies will somehow switch to using MDM. The market has potential, and it is quite large, - sums up Evgeny Kokin, head of MDM at Navicon.

Import substitution of accounting systems, data warehouses and analytical solutions spurred companies to normalize data in the framework of working with reference books, and to organize data when introducing new IT solutions. Since the IT landscape in many companies has begun to change, the integration of new products that help systematize work with NSIs has become a logical step for many organizations.

The market for data management solutions is growing due to demand, which is supported by the regulator. Many new legislative initiatives are aimed at obliging enterprises to systematically work with data. Therefore, in the past two years, even those companies that were not going to do this began to work with this area.

In addition, there is a steady growth of this market segment against the background of a change in consumer demand and digitalization opportunities. Companies are beginning to recognize the importance of effective data management, which in turn stimulates demand for systems that help automate processes, improve data quality and integrate various sources of information. Talking about data has become a trend, there are many professional platforms for discussing competent work with them. Increasing customer awareness, which in turn allows them to build the data landscape more efficiently and choose the best solutions for themselves.

The new technological trend associated with the introduction of artificial intelligence and machine learning also has a significant impact on the functionality of data management systems, allowing companies to analyze and process information faster, making more informed decisions. Every significant IT product is impossible now without built-in AI or the ability to connect it.

Forecasts for the development of the market in the future look optimistic. Businesses are expected to continue investing in solutions that help them adapt to changing conditions and improve their competitiveness.

The data published in the study of the CSR allow us to conclude that with the continuing growth rate, by 2030 the market volume will amount to 30 billion rubles. This will allow Russian vendors to actively develop existing products for master data management and NSI, as well as create new ones, providing the growing needs of customers with modern and reliable systems.

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