ERP systems were a true competitive advantage 20+ years ago, but not so today. ERP systems are a tool that gave people the best view into their business, but that is when there really were only ERP systems and Databases, but today that critical data resides in so many other areas. There are several reasons why ERP systems act as a data trap: technical factors, out of date management theory, and big data trends. First, let’s talk about management theory.
There are two fundamental concepts that have been driving much of the strategic planning in modern organizations in recent decades. The idea of economies of scale is deeply embedded in our thinking. The concept was first introduced by Adam Smith in the 18th century and reinforced throughout the 20th century by contemporaries such as Bruce Henderson. In 1968 Henderson wrote “”Costs characteristically decline by 20-30% in real terms each time accumulated experience doubles.“ The basic idea is that bigger is better. (more…)
The title of this article may seem counterintuitive, but the reality is that the business doesn’t care about data. They care about their business processes and outcomes that generate real value for the organization. All IT professionals know there is huge value in quality data and in having it integrated and consistent across the enterprise. The challenge is how to prove the business value of data if the business doesn’t care about it. (more…)
Do We Really Need Another Information Framework?
The EIM Consortium is a group of nine companies that formed this year with the mission to:
“Promote the adoption of Enterprise Information Management as a business function by establishing an open industry reference architecture in order to protect and optimize the business value derived from data assets.”
That sounds nice, but we do really need another framework for EIM or Data Governance? Yes we do, and here’s why. (more…)
A few days ago, I came across a post, 5 C’s of MDM (Case, Content, Connecting, Cleansing, and Controlling), by Peter Krensky, Sr. Research Associate, Aberdeen Group and this response by Alan Duncan with his 5 C’s (Communicate, Co-operate, Collaborate, Cajole and Coerce). I like Alan’s list much better. Even though I work for a product company specializing in information management technology, the secret to successful enterprise information management (EIM) is in tackling the business and organizational issues, not the technology challenges. Fundamentally, data management at the enterprise level is an agreement problem, not a technology problem.
So, here I go with my 5 C’s: (more…)
There is no shortage of buzzwords that speak to the upside and downside of data. Big Data, Data as an Asset, the Internet of Things, Cloud Computing, One Version of the Truth, Data Breach, Black Hat Hacking, and so on. Clearly we are in the Information Age as described by Alvin Toffler in The Third Wave. But yet, most organizations are not effectively dealing with the risks of a data-driven economy nor are they getting the full benefits of all that data. They are stuck in a fire-fighting mode where each information management opportunity or problem is a one-time event that is man-handled with heroic efforts. There is no repeatability. The organization doesn’t learn from prior lessons and each business unit re-invents similar solutions. IT projects are typically late, over budget, and under delivered. There is a way to break out of this rut. (more…)
If you build an IT Architecture, it will be a constant up-hill battle to get business users and executives engaged and take ownership of data governance and data quality. In short you will struggle to maximize the information potential in your enterprise. But if you develop and Enterprise Architecture that starts with a business and operational view, the dynamics change dramatically. To make this point, let’s take a look at a case study from Cisco. (more…)