Related Topics:
			Business Research: Contact Center, Customer Performance Technology Research: Business Intelligence, Information Management, Operational Intelligence Imperative Research: Business Innovation, Compliance Management, Process Improvement Vendor Research: Exeros IBM Informatica Initiate Systems Kalido Oracle Microsoft - Stratature Netrics Purisma SAP Siperian Silver Creek Systems Sypherlink
			Printer friendly version Email this article Send feedback to editor

Summary
On May 15th, Informatica completed the acquisition of Identity Systems, formerly a subsidiary of Nokia that provided tools for identity searching, matching and resolution of data located in multiple systems, for approximately $85 million in cash. Identity Systems was founded in 1986 as Search Software America (SSA). Beginning with its core product, SSA-NAME3, the vendor developed a toolset for the creation of applications that can find, match, rank and analyze records about people, companies, products and other objects of interest. Organizations have used Identity Systems’ tools as part of data quality, profiling, customer data integration and master data management initiatives. Within Informatica, the tools become part of the Data Quality business unit.

Our research finds that data quality is already one of the most important components of information management and is likely to grow even more in importance as organizations focus on gaining value from data and protecting it more effectively from theft and misuse. The Identity Systems products complement Informatica’s current data quality tools, adding capabilities beyond those that traditional data quality products can provide.

Assessment
Data quality and profiling tools can match data objects found in multiple systems and identify anomalies. Identity recognition and resolution systems complement these tools by providing insight into the connections between different pieces of information to support developing a better understanding of a person, company or other object of interest even when key elements or attributes – spelling or address, for example – are missing or different. These systems generally use advanced algorithms and business rules engines to offer information that goes beyond static lists of data anomalies. The insights are based on data matches and other relationships that can be identified across systems even despite poor data quality or cultural differences. Using such systems, organizations can develop a comprehensive as well as timely understanding of an individual’s identity.

Such analyses traditionally have been done manually. Identity Systems provides these capabilities through a set of modules containing algorithms and rules that automate the analysis. The Data Clustering Engine module can bring together data from multiple systems so users can view clusters of similar or related records; Information Quality Server offers a comprehensive set of tools for matching, profiling, validating and standardizing identity data, including addresses; Identity Search Server uses fuzzy logic and other techniques to match data; and other modules deal with unstructured data and postal information resolution.

Law enforcement, government intelligence services and financial services use such systems for fraud investigation, surveillance, detection of money laundering and other processes associated with security and regulatory compliance. These organizations need specialized software that can find relationships and determine identities rapidly, often in real time as part of operational processes, from very large volumes of data. Now other industries are beginning to evaluate and implement identity recognition and resolution software for customer data integration (CDI) and master data management (MDM), where it can complement data profiling and data quality processes. The capabilities are also increasing in importance as organizations expand operations and customer relationships globally and must understand identities in multiple languages and cultures.

Our research finds that many organizations regard creating a central master data hub to be a top priority. Such a hub can serve as a “golden” reference copy of data for use by diverse users and applications performing both operational and analytical processes. However, organizations that operate in global markets or must track individuals in multiple geographical locations have had difficulty reconciling data held in disparate data marts, data warehouses and applications into such hubs. By addressing connections and relationships between pieces of data, software for identity recognition and resolution could give organizations a better way to gain a master view of diverse data.   

Market Impact
The acquisition of Identity Systems will give Informatica an entry to provide software to IT developers, systems integrators and application vendors that serve specialized demands for identity recognition and resolution. It also will expand Informatica’s technology portfolio for CDI and MDM, enabling customers to increase the precision of their understanding of data relationships and reduce the number of false positives and other data “noise” that many data profiling and quality processes inadvertently deliver. The acquisition improves Informatica’s ability to compete with IBM, which acquired Language Analysis Systems in 2006 to fill out its Entity Analytic Solutions software suite, as well as with specialized vendors such as Infoglide.

Recommendation
Ventana Research believes that companies in an increasingly broad range of industries must improve their ability to manage master data and discover data relationships about customers, partners, products and other areas of interest. The advanced capabilities of identity recognition and resolution systems could be key to developing a more accurate and timely understanding of information from multiple sources. With the acquisition now complete, we recommend that organizations evaluate the Identity Systems technology that now is part of Informatica’s Data Quality portfolio to determine if the products can further strategic objectives and enhance risk management, regulatory compliance and information security.

Related Research Notes
Diagnosing An MDM Malaise
How to tell if you have problems with master data

Enterprises Face Complex Master Data Challenges
MDM research finds diversity of operational and analytic systems

High-Quality Master Data Is Vital to Business Success
Siperian’s technology supports enterprise-wide master data management and data governance

IBM Brings Key New Information Management Products to Market
Company debuts Information Server and customer master information offering

IBM Unveils New Master Data Management Software
Release handles product master data for retail and manufacturing

Informatica Addresses Master Data Management
Data integration vendor takes step to integrate with MDM

Informatica Unveils New Products
Informatica World showcases new versions of all Informatica products and a commitment to partnering

Microsoft Buys its Way into MDM
Stratature acquisition will provide master data management for Microsoft Office

Microsoft Selects Initiate Systems for Customer Data Integration
Does it signal convergence of operational and analytic MDM?