Programmatic woes: Is unified data platform the solution?

Data is the new oil has become a rather old saying at this point. But the fact is that as data sources continue to multiply, managing the complexity becomes a significant challenge. This is why some marketers are now questioning if a theoretical unified system can simplify the data ecosystem and reduce the complexity of managing multiple disparate tools, like DMPs (Data Management Platforms), CDPs (Customer Data Platforms) and CRMs (Customer Relationship Management).  

This is because working with disparate tools and platforms can lead to inefficiencies, as data needs to be moved and transformed between them. A unified system can streamline data workflows, reducing the time and effort required to access and analyze data.

For Ramya Parashar, COO, MiQ, the foundational aspects of data quality, consistency, governance and security are critical for accurate analysis and decision-making. Having a centralized control over data access, permissions, and auditing, enhancing security and compliance is paramount.

 “There is no doubt about a growing need for unified systems and platforms that can bring together various tools and data sources to reduce complexity and prepare for the future. As companies assess their specific needs, looking at existing infrastructure and data maturity before embarking on such a project is key,” she says.

Gopa Menon, Head of Digital – Mindshare South Asia, agrees that there is a growing need for unified systems that can bring together various data tools and platforms into a single cohesive ecosystem. “As data volumes continue to increase, organizations are faced with a number of challenges like data silos hindering data accessibility and sharing. Data consistency is also an issue if data is being accessed through various tools. And as we progress scalability and real time insights because of different data tools will also be a challenge.”

According to Menon, a unified system, often referred to as a Data Integration Platform or DataOps platform, can address these challenges by providing a centralized hub for data management, integration, analysis, and reporting. And indeed, even without a universal system in place yet, industry experts are looking at more accessible solutions in the interim.

Data Lakes

Brands are increasingly embracing the concept of creating a unified data repository, whether, in the form of a data warehouse or a data lake, which consolidates all their data sources, including behavioral and transactional data. This approach is gaining traction as brands recognize the advantages of having a comprehensive data ecosystem. These consolidated data lakes serve as the cornerstone of data-driven decision-making, offering a singular source of truth for analysis. This strategy eliminates the complexities of managing multiple data silos.

Abhimanyu Vyas, Business Head of the MarTech arm of Havas, PivotConsult, says many are opting to build their own data lakes using cloud-based solutions like Data Databricks or Snowflake. “By doing so, brands streamline their data management processes, reducing reliance on disparate systems such as CRMs for transactional data, Analytics and DMP solutions for behavioral data, and CEM for user journey data.”

“In our work with clients in the BFSI (Banking, Financial Services, and Insurance) and QSR (Quick-Service Restaurant) sectors, we're actively involved in building and leveraging central data lakes. These data lakes play a pivotal role in various aspects, including measurement and reporting, advanced analytics, and the deployment of machine learning use cases,” he says.

“While some aspects of this approach are already in practice, they are not uniformly implemented across all channels,” says Paras Mehta, Business Head, Matterkind India, adding, “At IPG, we've recognized the significance of bridging this gap. Collaborating with our data experts at Acxiom and drawing upon the knowledge of various Adtech, Martech, and Analytics tools, we are actively educating our clients on the importance of adopting an integrated approach. We firmly believe that, with ongoing technological advancements, we are moving closer to the development of a unified solution that will empower our clients to make more informed marketing decisions."

Cost of Unity

In a world dominated by existing systems like CRMs, CDPs, and increasingly DMPs, Preetham Venkky, Chief Digital Officer at DDB Mudra Group, agrees that a unified data system is theoretically a good idea, but is chary about the practicality and mechanics of such a system; and perhaps most crucially, the cost.

“The thing is that, at its core, everyone is anchoring towards CDP, because that's the core engine where the customer data essentially sits. After that, there are multiple layers. There's obviously a data lake which sits beside it and where you're storing the CDP, which is the primary data point for you to essentially pick and pull the data set. And then you come to actionability. CRM is an actionability platform. But most people look at it as the maturity of the company. If the company is in the early maturity stage, then usually you will go with just a CRM platform, that's all you have to budget for. If you're in the mid majority stage, you will go for a DMP. And if you're at an extremely mature stage, we'll move to CDP. So, it's not a one-size-fits-all solution,” he says.

“Are all of the platforms useful and does it make sense to have one? The answer to that is yes. Should we integrate all the three into one? The answer to that is no. Largely because of cost infrastructure and capability infrastructure. CDP's capabilities are extremely wide, while CRM is used only very specifically,” he says, before elaborating.

For instance, MailChimp is a CRM platform. You can run a MailChimp platform for as low as $50 a month. So obviously, if you're an early startup, that's sufficient that's all you can afford. “But if I went directly for a CDP with Salesforce, the starting cost is about $10,000 a month. Clearly a startup can't afford it. So that's why from a capability as well as from just an economic standpoint, it makes sense to have all of the three because it's like having basic Windows Word versus one with all the features. So I don't think they're going to go away.”

Interestingly, Parashar has a different take on the price factor, noting, “As data volumes grow, the scalability of data infrastructure becomes essential along with managing multiple tools and platforms, which can be expensive in terms of licensing, maintenance, and infrastructure. Consolidating these tools into a unified system not only provides cost savings but also opportunities to optimize.”

That being said, she agrees that we also need to be wary of data integration, compatibility, and user adoption challenges that may arise during the implementation of a unified system. “We look at a hybrid approach, where we integrate and centralize certain critical data and processes while allowing flexibility for specialized tools and platforms to coexist. Ultimately, the goal is to strike a balance between unifying data operations and accommodating the diverse needs of different teams and functions within our organization,” she says.

“It's important to note that implementing a unified data system can be a complex undertaking, and organizations should carefully consider their specific needs, existing infrastructure, and budget constraints,” observes Menon, adding, “Data integration and migration can be challenging, so a well-thought-out strategy and proper planning are crucial for success. In summary, as data volumes and complexity continue to grow, the need for unified data systems is becoming increasingly important to streamline data management, improve efficiency, and enable data-driven decision-making across organizations.”