Tag Archives: CIO

Stop Trying to Manage Data Growth!(?)

Data Downpour

Data Downpour

Talking to architects about analytics at a recent event, I kept hearing the familiar theme; data scientists are spending 80% of their time on “data wrangling” leaving only 20% for delivering the business insights that will drive the company’s innovation.  It was clear to everybody that I spoke to that the situation will only worsen.  The coming growth everybody sees in data volume and complexity, will only lengthen the time to value.

Gartner recently predicted that:

“by 2015, 50% of organizations will give up on managing growth and will redirect funds to improve classification and analytics.”

50 percent

“by 2015, 50% of organizations will give up on managing growth and will redirect funds to improve classification and analytics.”

Some of the details of this study are interesting.  In the end, many organizations are coming to two conclusions:

  • It’s risky to delete data, so they keep it around as insurance.
  • All data has potential business value, so more organizations are keeping it around for potential analytical purposes.

The other mega-trend here is that more and more organizations are looking to compete on analytics – and they need data to do it, both internal data and external data.

From an architect’s perspective, here are several observations:

  • The floodgates are open and analytics is a top priority. Given that, the emphasis should be on architecting to manage the dramatic increases in both data quantity and data complexity rather than on trying to stop it.
  • The immediate architectural priority has to be on simplifying and streamlining your current enterprise data architecture. Break down those data silos and standardize your enterprise data management tools and processes as much as possible.  As discussed in other blogs, data integration is becoming the biggest bottleneck to business value delivery in your environment. Gartner has projected that “by 2018, more than half the cost of implementing new large systems will be spent on integration.”  The more standardized your enterprise data management architecture is, the more efficient it will be.
  • With each new data type, new data tool (Hive, Pig, etc.), and new data storage technology (Hadoop, NoSQL, etc.) ask first if your existing enterprise data management tools can handle the task before people go out and create a new “data silo” based on the cool, new technologies. Sometimes it will be necessary, but not always.
  • The focus needs to be on speeding value delivery for the business. And the key bottleneck is highly likely to be your enterprise data architecture.

Rather than focusing on managing data growth, the priority should be on managing it in the most standardized and efficient way possible.  It is time to think about enterprise data management as a function with standard processes, skills and tools (just like Finance, Marketing or Procurement.)

Several of our leading customers have built or are building a central “Data as a Service” platform within their organizations.  This is a single, central place where all developers and analysts can go to get trustworthy data that is managed by IT through a standard architecture and served up for use by all.

For more information, see “The Big Big Data Workbook

*Gartner Predicts 2015: Managing ‘Data Lakes’ of Unprecedented Enormity, December 2014  http://www.gartner.com/document/2934417#

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Informatica University offers New Flexible Pricing for Private Training

Informatica UniversityCustomers often inquire about the best way to get their team up to speed on the Informatica solutions.  The question Informatica University hears frequently is whether a team should attend our public scheduled courses or hold a Private training event.  The number of resources to be skilled on the products will help to determine which option to choose.  If your team, or multiple teams within your company, has 7 or more resources that require getting up to speed on the Informatica products, then a Private training event is the recommended choice.

Seven (7) for a remote instructor and nine (9) for an onsite instructor is the break even cost per resource when determining whether to hold a private training and is the most cost efficient delivery for a team.  In addition to the cost benefit, customers who have taken this option value the daily access to their team members to keep business operations humming along, and the opportunity to collaborate with key team members not attending by allowing them to provide input to project perspective.

These reserved events also provide the opportunity to be adapted to focus on a customers needs by tailoring course materials to highlight topics that will be key to a project’s implementation which provide creative options to get a team up to speed on the Informatica projects at hand.

With Informatica University’s new flexible pricing, hosting a Private Training event is easy.  All it takes is:

  • A conference room
  • Training PC’s or laptops for participants
  • Access to the Internet
  • An LCD projector, screen, white board, and appropriate markers

Private training events provide the opportunity to get your resources comfortable and efficient with the Informatica Solutions and have a positive impact on the success of your projects.

To understand more about Informatica’s New Flexible Pricing, contact trainingsales@informatica.com

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Being a CIO Today Requires More Than a Service Broker Orientation

cloud service brokerIn my discussions with CIOs, their opinions differ widely about the go forward nature of the CIO role. While most feel the CIO role will remain an important function, they also feel a sea state change is in process. According to Tim Crawford, a former CIO and strategic advisor to CIOs, “CIOs are getting out of the data center business”. In my discussions, not all yet see the complete demise for their data centers. However, it is becoming more common for CIOs to see themselves “becoming an orchestrator of business services versus a builder of new operational services”. One CIO put it this way, “the building stuff is now really table stakes. Cloud and loosely oriented partnerships are bringing vendor management to the forefront”.

cloud service brokerAs more and more of the service portfolio are provided by third parties in either infrastructure as a service (IaaS) or software as a service (SaaS) modes, the CIO needs to take on what will become an increasingly important role –the service broker. An element of the service broker role that will have increasingly importance is the ability to glue together business systems w6hether they are on premise, cloud managed (Iaas), or software as a service (Saas). Regardless of who creates or manages the applications of the enterprise, it is important to remember that integration is to a large degree the nervous system that connects applications into business capabilities. As such, the CIO’s team has a critical and continuing role in managing this linkage. For example, spaghetti code integrations can easily touch 20 or more systems for ERP or expense management systems.

Brokering integration services

As CIOs start to consider the move to cloud, they need to determine how this nervous system is connected, maintained, and improved. In particular, they need to determine maybe for the first time how to integrate their cloud systems to the rest of their enterprise systems. They clearly can continue to do so by building and maintaining hand coding or by using their existing ETL tools. This can work where one takes on an infrastructure as a service model. But it falls apart when looking at the total cost of ownership of managing the change of a SaaS model. This fact begs an interesting question. Shouldn’t the advantages of SaaS occur as well for integration? Shouldn’t there be Cloud Data Management (Integration as a Service)options? The answer is yes. Instead of investing in maintain integrations of SaaS systems which because of agile methodologies can change more frequently than traditional software development, couldn’tsomeone else manage this mess for me.

The advantage of the SaaS model is total cost of ownership and faster time to value. Instead of managing, integration between SaaS and historical environments, the integration between SaaS applications and historical applications can be maintained by the cloud data Management vendor. This would save both  cost and time. As well, it would free you to focus your team’s energy upon cleaning up the integrations between historical systems and each other. This is a big advantage for organizations trying to get on the SaaS bandwagon but not incur significantly increased costs as a result.

Definitions please

Infrastructure as a Service (IaaS)—Provides processor, databases, etc. remotely but you control and maintain what goes on them

Software as a Service (Saas)—Provides software applications and underling infrastructure as a Service

Cloud Data Management—Provides Integration of applications in particular SaaS applications as a service

Parting remarks

CIOs are embarking upon big changes. Building stuff is becoming less and less relevant. However, even as more and more services are managed remotely (even by other parties), it remains critical that CIOs and their teams manage the glue between applications. With SaaS application in particular, this is where Cloud Data Management can really help you control integrations with less time and cost.

Related links

Solution Brief:

Hybrid IT Integration

Related Blogs

What is the Role of the CIO in Driving Enterprise Analytics?

IT Is All About Data!

The Secret To Being A Successful CIO

Driving IT Business Alignment: One CIOs Journey

How Is The CIO Role Starting To Change?

The CIO Challenged

Author Twitter: @MylesSuer

 

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Three Things Every Architect Should Do for 2015

architect

Moving at the Speed of the Business

The start of the year is a great time to refresh and take a new look at your capabilities, goals, and plans for your future-state architecture.  That being said, you have to take into consideration that the most scarce resource in your architecture is probably your own personal time.

Looking forward, here are three things that I would recommend that every architect do.  I realize that all three of these relate to data, but as I have said in the eBook, Think “Data First” to Drive Business Value, we believe that data is the key bottleneck in your enterprise architecture in terms of slowing the delivery of business initiatives in support of your organization’s business strategy.

So, here are the recommendations.  None of these will cost you anything if you are a current Informatica PowerCenter customer.  And #2 and #3 are free regardless.  It is only a matter of your time:

1. Take a look at the current Informatica Cloud offering and in particular the templating capabilities.

Informatica Cloud is probably much more capable than you think.  The standard templating functionality supports very complex use cases and does it all from a very easy to use, no-coding, user interface.  It comes with a strong library of integration stubs that can be dragged & dropped into Microsoft Viseo to create complex integrations.  Once the flow is designed in Viseo, it can be easily imported into Informatica Cloud and from there users have a Wizard-driven UI to do the final customization for sources, targets, mappings, transformations, filters, etc.  It is all very powerful and easy to use.

Resources

Why This Matters to Architects

  • You will see how easy it is for new groups to get going with fairly complex integrations.
  • This is a great tool for departmental or new user use, and it will be completely compatible with the rest of your Informatica architecture – not another technology silo for you to manage.
  • Any mapping created for Informatica on-premise can also run on the cloud version.

2. Download Informatica Rev and understand what it can do for your analysts and “data wranglers.”

Your data analysts are spending 80% of their time managing their data and only 20% on the actual analysis they are trying to provide.  Informatica Rev is a great way to prepare your data before use in analytics tools such as Qlik, Tableau, and others.

With Informatica Rev, people who are not data experts can access, mashup, prototype and cleanse their data all in a User Interface that looks like a spreadsheet and requires no previous experience in data tools.

Resources

Why  This Matters for Architects

  • Your data analysts are going to use analytics tools with or without the help of IT. This enables you to help them while ensuring that they are managing their data well and optimizing their productivity.
  • This tool will also enable them to share their “data recipes” and for IT to be involved in how they access and use the organization’s data.

 

3. Look at the new features in PowerCenter 9.6.  First, upgrade to 9.6 if you haven’t already, and particularly take a good look at these new capabilities that are bundled in every version. Many people we talk to have 9.6 but don’t realize the power of what they already own.

  1. Profiling: Discover and analyze your data quickly.  Find relationships and data issues.
  2. Data Services: This presents any JDBC or ODBC repository as a logical data object. From there you can rapidly prototype new applications using these logical objects without worrying about the complexities of the underlying repositories. It can also do data cleansing on the fly.

Resources

 

Why This Matters for Architects

  • The key challenge for IT and for Architects is to be able to deliver at the “speed of business.” These tools can dramatically improve the productivity of your team and speed the delivery of projects for your business “customers.”

Taking the time to understand what these tools can do in terms of increasing the productivity of your IT team and enabling your end users to self-service will make you a better business partner overall and increase your influence across the organization.  Have a great year!

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Rising DW Architecture Complexity

Rising DW Architecture Complexity

Rising DW Architecture Complexity

I was talking to an architect-customer last week at a company event and he was describing how his enterprise data warehouse architecture was getting much more complex after many years of relative calm and stability.  In the old days of yore, you had some data sources, a data warehouse (with single database), and some related edge systems.

The current trend is that new types of data and new types of physical storage are changing all of that.

When I got back from my trip I found a TDWI white paper by Philip Russom that describes the situation very well in a white paper detailing his research on this subject;  Evolving Data Warehouse Architectures in the Age of Big Data.

From an enterprise data architecture and management point of view, this is a very interesting paper.

  • First the DW architectures are getting complex because of all the new physical storage options available
    • Hadoop – very large scale and inexpensive
    • NoSQL DBMS – beyond tabular data
    • Columnar DBMS – very fast seek time
    • DW Appliances – very fast / very expensive
  • What is driving these changes is the rapidly-increasing complexity of data. Data volume has captured the imagination of the press, but it is really the rising complexity of the data types that is going to challenge architects.
  • But, here is what really jumped out at me. When they asked the people in their survey what are the important components of their data warehouse architecture, the answer came back; Standards and rules.  Specifically, they meant how data is modeled, how data quality metrics are created, metadata requirements, interfaces for data integration, etc.

The conclusion for me, from this part of the survey, was that business strategy is requiring more complex data for better analyses (example: realtime response or proactive recommendations) and business processes (example: advanced customer service).  This, in turn, is driving IT to look into more advanced technology to deal with different data types and different use cases for the data.  And finally, the way they are dealing with the exploding complexity was through standards, particularly data standards.  If you are dealing with increasing complexity and have to do it better, faster and cheaper, they only way you are going to survive is by standardizing as much as reasonably makes sense.  But, not a bit more.

If you think about it, it is good advice.  Get your data standards in place first.  It is the best way to manage the data and technology complexity.  …And a chance to be the driver rather than the driven.

I highly recommend reading this white paper.  There is far more in it than I can cover here. There is also a Philip Russom webinar on DW Architecture that I recommend.

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Is it the CDO or CAO or Someone Else?

Frank-Friedman-199x300A month ago, I shared that Frank Friedman believes CFOs are “the logical choice to own analytics and put them to work to serve the organization’s needs”. Even though many CFOs are increasingly taking on what could be considered an internal CEO or COO role, many readers protested my post which focused on reviewing Frank Friedman’s argument. At the same time, CIOs have been very clear with me that they do not want to personally become their company’s data steward. So the question becomes should companies be creating a CDO or CAO role to lead this important function? And if yes, how common are these two roles anyway?

Data analyticsRegardless of eventual ownership, extracting value out of data is becoming a critical business capability. It is clear that data scientists should not be shoe horned into the traditional business analyst role. Data Scientists have the unique ability to derive mathematical models “for the extraction of knowledge from data “(Data Science for Business, Foster Provost, 2013, pg 2). For this reason, Thomas Davenport claims that data scientists need to be able to network across an entire business and be able to work at the intersection of business goals, constraints, processes, available data and analytical possibilities. Given this, many organizations today are starting to experiment with the notion of having either a chief data officers (CDOs) or chief analytics officers (CAOs). The open questions is should an enterprise have a CDO or a CAO or both? And as important in the end, it is important to determine where should each of these roles report in the organization?

Data policy versus business questions

Data analyticsIn my opinion, it is the critical to first look into the substance of each role before making a decision with regards to the above question. The CDO should be about ensuring that information is properly secured, stored, transmitted or destroyed.  This includes, according to COBIT 5, that there are effective security and controls over information systems. To do this, procedures need to be defined and implemented to ensure the integrity and consistency of information stored in databases, data warehouses, and data archives. According to COBIT 5, data governance requires the following four elements:

  • Clear information ownership
  • Timely, correct information
  • Clear enterprise architecture and efficiency
  • Compliance and security

Data analyticsTo me, these four elements should be the essence of the CDO role. Having said this, the CAO is related but very different in terms of the nature of the role and the business skills require. The CRISP model points out just how different the two roles are. According to CRISP, the CAO role should be focused upon business understanding, data understanding, data preparation, data modeling, and data evaluation. As such the CAO is focused upon using data to solve business problems while the CDO is about protecting data as a business critical asset. I was living in in Silicon Valley during the “Internet Bust”. I remember seeing very few job descriptions and few job descriptions that existed said that they wanted a developer who could also act as a product manager and do some marketing as a part time activity. This of course made no sense. I feel the same way about the idea of combining the CDO and CAO. One is about compliance and protecting data and the other is about solving business problems with data. Peanut butter and chocolate may work in a Reese’s cup but it will not work here—the orientations are too different.

So which business leader should own the CDO and CAO?

Clearly, having two more C’s in the C-Suite creates a more crowded list of corporate officers. Some have even said that this will extended what is called senior executive bloat. And what of course how do these new roles work with and impact the CIO? The answer depends on organization’s culture, of course. However, where there isn’t an executive staff office, I suggest that these roles go to different places. Clearly, many companies already have their CIO function already reporting to finance. Where this is the case, it is important determine whether a COO function is in place. The COO clearly could own the CDO and CAO functions because they have a significant role in improving process processes and capabilities. Where there isn’t a COO function and the CIO reports to the CEO, I think you could have the CDO report to the CIO even though CIOs say they do not want to be a data steward. This could be a third function in parallel the VP of Ops and VP of Apps. And in this case, I would put the CAO report to one of the following:  the CFO, Strategy, or IT. Again this all depends on current organizational structure and corporate culture. Regardless of where it reports, the important thing is to focus the CAO on an enterprise analytics capability.

Related Blogs

Should we still be calling it Big Data?

Is Big Data Destined To Become Small And Vertical?

Big Data Why?

What is big data and why should your business care?

Author Twitter: @MylesSuer

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CES, Digital Strategy and Architecture: Are You Ready?

CES, Digital Strategy and Architecture

CES, Digital Strategy and Architecture

CES, the International Consumer Electronics show is wrapping up this week and the array of new connected products and technologies was truly impressive. “The Internet of Things” is moving from buzzword to reality.  Some of the major trends seen this week included:

  • Home Hubs from Google, Samsung, and Apple (who did not attend the show but still had a significant impact).
  • Home Hub Ecosystems providing interoperability with cars, door locks, and household appliances.
  • Autonomous cars, and intelligent cars
  • Wearable devices such as smart watches and jewelry.
  • Drones that take pictures and intelligently avoid obstacles.  …Including people trying to block them.  There is a bit of a creepy factor here!
  • The next generation of 3D printers.
  • And the intelligent baby pacifier.  The idea is that it takes the baby’s temperature, but I think the sleeper hit feature on this product is the ability to locate it using GPS and a smart phone. How much money would you pay to get your kid to go to sleep when it is time to do so?

Digital Strategies Are Gaining Momentum

There is no escaping the fact that the vast majority of companies out there have active digital strategies, and not just in the consumer space. The question is: Are you going to be the disruptor or the disruptee?  Gartner offered an interesting prediction here:

“By 2017, 60% of global enterprise organizations will execute on at least one revolutionary and currently unimaginable business transformation effort.”

It is clear from looking at CES, that a lot of these products are “experiments” that will ultimately fail.  But focusing too much on that fact is to risk overlooking the profound changes taking place that will shake out industries and allow competitors to jump previously impassible barriers to entry.

IDC predicted that the Internet of Things market would be over $7 Trillion by the year 2020.  We can all argue about the exact number, but something major is clearly happening here.  …And it’s big.

Is Your Organization Ready?

A study by Gartner found that 52% of CEOs and executives say they have a digital strategy.  The problem is that 80% of them say that they will “need adaptation and learning to be effective in the new world.”  Supporting a new “Internet of Things” or connected device product may require new business models, new business processes, new business partners, new software applications, and require the collection and management of entirely new types of data.  Simply standing up a new ERP system or moving to a cloud application will not help your organization to deal with the new business models and data complexity.

Architect’s Call to Action

Now is the time (good New Year’s resolution!) to get proactive on your digital strategy.  Your CIO is most likely deeply engaged with her business counterparts to define a digital strategy for the organization. Now is the time to be proactive in terms of recommending the IT architecture that will enable them to deliver on that strategy – and a roadmap to get to the future state architecture.

Key Requirements for a Digital-ready Architecture

Digital strategy and products are all about data, so I am going to be very data-focused here.  Here are some of the key requirements:

  • First, it must be designed for speed.  How fast? Your architecture has to enable IT to move at the speed of business, whatever that requires.  Consider the speed at which companies like Google, Amazon and Facebook are making IT changes.
  • It has to explicitly directly link the business strategy to the underlying business models, processes, systems and technology.
  • Data from any new source, inside or outside your organization, has to be on-boarded quickly and in a way that it is immediately discoverable and available to all IT and business users.
  • Ongoing data quality management and Data Governance must be built into the architecture.  Point product solutions cannot solve these problems.  It has to be pervasive.
  • Data security also has to be pervasive for the same reasons.
  • It must include business self-service.  That is the only way that IT is going to be able to meet the needs of business users and scale to the demands of the changes required by digital strategy.

Resources:

For a webinar on connecting business strategy to the architecture of business transformation see; Next-Gen Architecture: A “Business First” Approach for Agile Architecture.   With John Schmidt of Informatica and Art Caston, founder of Proact.

For next-generation thinking on enterprise data architectures see; Think “Data First” to Drive Business Value

For more on business self-service for data preparation and a free software download.

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What is the Role of the CIO in Driving Enterprise Analytics?

Data AnalysisWhen you talk to CIOs today about their business priorities, the top of their list is better connecting what IT is doing to business strategy. Or put another way, it is about establishing business/IT alignment. One area where CIOs need to make sure there is better alignment is enterprise analytics. CIOs that I have talk to share openly that business users are demanding the ability to reach their apps and data anywhere and on any device. For this reason, even though CIOs say they have interest in the mechanisms of data delivery–data integration, data cleanliness, data governance, data mastering, and even metadata management — they would not take a meeting on these topics. The reason is that CIOs say they would need to involve their business partner in these meetings. CIOs these days want you have to have a business value proposition. Given this, CIOs say that they would want to hear about what the business wants to hear about.

  • Enabling new, valuable business insights out data to happen faster
  • Enabling their businesses to compete with analytics

CIOs as an analytics proponent versus the analytics customer

Tom DavenportSo if the question is about competing with analytics, what role does the CIO have in setting the agenda here? Tom Davenport says that CIOs–as I heard in my own conversations  with CIOs–have good intentions when it comes to the developing an enterprise information strategy. They can see the value of taking an enterprise versus a departmental view. Tom suggests, however, that CIOs should start by focusing upon the analytics that will matter most to the business. He says that IT organizations should, also, build an IT infrastructure capable of delivering the information and analytics that people across the enterprise need not just now but also in the future.

Tom says that IT organizations must resist the temptation to provide analytics as an add-on or a bolt-on basis for whatever transactions system have just been developed. As a product manager, I had a development team that preferred to add analytics by source rather than do the hard work of creating integrative measures that crossed sources. So I know this problem firsthand. Tom believes that IT needs to build a platform that can be standardized and integrate data from more than one source. This includes the ability to adapt as business needs and business strategies change.

Making this an Enterprise Analytics Capability

analyticsIn the early stage for analytics, IT organizations need to focus more upon a self-service approach. But as the business matures at analytics, Tom says that IT needs to shift gears and become a proactive advocate and architect of change. Tom says that IT should be a part owner of the company’s analytical capabilities. IT managers, therefore, must understand and be able to articulate the potential for analytics being created at an enterprise level. At the same time, the IT staff–which often lacks the heavy mathematical backgrounds of analysts–needs to be able to interact with the analytics pros who use and consume the information that IT creates to build models. I had this dilemma first hand where my analytics modelers were disconnected from BI product developers. They were two different communities working on our project. And although some modelers can build apps or even a BI system, what excites them most in life is building new analytical models.

Talk the language of the business

Tom Davenport says that IT managers can make their own lives easier with the business and the with analysts by instead of discussing cloud computing, service oriented architecture, or even OLAP, discussing decision making, insights, and business performance. Meanwhile, Tom feels that the enterprise analytics journey starts with good, integrated data on transactions and business processes managed through enterprise applications like ERP and CRM Systems (Analytics at Work, Thomas Davenport, Harvard Business Review Press, page 51).

Focusing on the big questions and the right problems

Clearly driving the business to focus on the big questions and the right problems is critical. IT cannot do this but they can facilitate it. Why does it matter? An Accenture Study found that “companies that derived any real value from them (their analytics) had anticipated how to leverage the information to generate new insights to improve business performance. (“Using Enterprise Systems to Gain Uncommon Competitive Advantage, Accenture, page 3). This is critical and too few organizations succeed in doing it.

With this accomplished and to achieve the second goal, IT needs to be eliminating legacy BI systems and old spaghetti code as well as silo data marts. The goal should be to replace them with an enterprise analytics capability that answers the big questions. This requires standardization around an enterprise wide approach that ensures a consistent approach to data management and provides an integrated environment complete with data repositories/data lakes, analytical tools, presentation applications, and transformational tools. This investment should be focused on improving business processes or providing data needed for system of systems products. Tom says that IT’s job is to watch out for current and future users of information systems.

Parting Thoughts

So the question is where is your IT organization at today? Clearly, it is important as well that IT measure enterprise analytic initiatives too. IT should measure adoption. IT should find out what is used or not they are used. I had a CIO once admit to me that he did not know whether currently supported data marts were being used or even still had value. It is important that we have these answers. Clearly, being close to the business customer from the start can limit what this CIO discussed.

Related Blogs and Links

Analytics Stories: A Banking Case Study

Analytics Stories: A Financial Services Case Study

Analytics Stories: A Healthcare Case Study

Who Owns Enterprise Analytics and Data?

Competing on Analytics: A Follow Up to Thomas H. Davenport’s Post in HBR

Thomas Davenport Book “Competing On Analytics”

Solution Brief: The Intelligent Data Platform

Author Twitter: @MylesSuer

 

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It is All About the “I”

Six ideas for CIOs in 2015 to put the innovation back in CIO

CIOFor most, the “I” in CIO stands for Information. But what about that other “I”, Innovation? For many IT organizations, 60-80% of IT spending continues to be tied up in keeping the IT lights on. But innovation matters more than ever to the business bottom line. According Geoffrey Moore, “without innovation, offerings become more and more like each other. They commoditize.” (“Dealing with Darwin”, Geoffrey Moore, page 1). Geoffrey goes on to say later in “Dealing with Darwin” that commoditization will over time drop business returns to “the cost of capital”. So clearly, this is a place that no CIO would want their enterprises to consciously go.

Given this, what is the role of the CIO in driving enterprise innovation? I believe that it is a significant one. Without question, technology investment has been a major driver of enterprise productivity gains. At the same time, IT investment has had a major role in improving business capabilities and the business value chains. And more recently, IT is even carving out a role in products themselves as part of the IoT. So how can CIOs help drive business innovation?

1) Get closer to your business customers. CIOs have said to me that their number one priority is connecting what the IT is doing to what the business is doing. Given this, CIOs should make it a real priority for their teams to get closer to the business this year. According to Kamalini Ramdas’ Article in Harvard Business Review, “to succeed at innovation, you need to have a culture in which everyone in the company is constantly scanning for ideas”.

2) Develop internal design partners. When I have started new businesses, I have always created a set of design partners to ensure that I built the right products. I tell my design partners to beat me up now rather than after I build the product. You need, as Kamalini Ramdas suggests, to harvest the best ideas of your corporate team just like I did with startups. You can start by focusing your attention upon the areas of distinctive capability—the places that give your firm its right to win.

3) Enabling your IT leaders and individual contributors to innovate. For many businesses, speed to market or speed of business processes can represent a competitive advantage. Foundationally to this are IT capabilities including up time, system performance, speed of project delivery, and the list goes on. Encouraging everyone on your team to drive superior operational capabilities can enable business competitive advantage. And one more thing, make sure to work with your business leaders to pass a portion of the business impact for improvements into a bonus for the entire enabling IT team. At Lincoln Electric, they used bonuses by team to continuously improve their products. This arch welding company shares the money saved from each process improvement with the entire team. They end up getting the best team and highest team longevity as teams work improves product quality and increases cost take out. According Kamalini, “in truly innovative culture, leaders need to imbue every employee with a clear vision and a sense of empowerment that helps them identify synergistic ideas and run with them” (“Build a Company Where Everyone’s Looking for New Ideas”, Harvard Business Review, page 1).

4) Architect for Innovation. As the velocity of change increases, businesses need IT organizations to be able to move more quickly. This requires an enterprise architecture built for agility. According to Jeanne Ross, the more agile companies have a high percentage of their core business processes digitized and they have as well standardized their technology architecture (Enterprise Architecture as Strategy, Jeanne Ross, page 12).

5) Look for disruptive innovations. I remember a professor of mine suggesting that we cannot predict the future when discussing futures research. But I believe that you can instead get closer to your customers than anyone else. CIOs should dedicate a non-trival portion of IT spend to germinating potentially disruptive ideas. They should use their design partners to select what gets early stage funding. Everyone here should act like a seed stage venture capitalist. You need to let people experiment. At the same time, design partners should set reasonable goals and actively measure performance toward goals.

6) Use analytics. Look at business analytics for areas of that could use IT’s help. Open up discussions with design partners for areas needing capability improvement. This is a great place to start. Look as well for where there are gaps in business delivery that could be drive better performance from further or improved digitization/automation. And once an innovation is initiated, analytics should actively ensure the management of  the innovation’s delivery.

Final remarks

There is always more that you can do to innovate. The key thing is to get innovation front and center on the IT agenda. Actively sponsor it and most importantly empower the team to do remarkable things. And when this happens, reward the teams that made it happen.

IT Is All About Data!
The Secret To Being A Successful CIO
Driving IT Business Alignment: One CIOs Journey
How Is The CIO Role Starting To Change?
The CIO Challenged

Twitter: @MylesSuer

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Getting to Your Future State Enterprise Data Architecture

Getting to Your Future State Enterprise Data Architecture

Future State Enterprise Data Architecture

Just exactly how do your move from a “Just a Bunch of Data” (JBOD) architecture to a coherent enterprise data architecture?

The white paper, “The Great Rethink: Building a Highly Responsive and Evolving Data Integration Architecture” by Claudia Imhoff and Joe McKendrick provides an interesting view of what such an architecture might look like.  The paper describes how to move from ad hoc Data Integration to an Enterprise Data Architecture.  The paper also describes an approach towards building architectural maturity and a next-generation enterprise data architecture that helps organizations to be more competitive.

Organizations that look to compete based on their data are searching for ways to design an architecture that:

  • On-boards new data quickly
  • Delivers clean and trustworthy data
  • Delivers data at the speed required of the business
  • Ensures that data is handled in secure way
  • Is flexible enough to incorporate new data types and new technology
  • Enables end user self-service
  • Speeds up the speed of business value delivery for an organization

In my previous blog, Digital Strategy and Architecture, we discussed the demands that digital strategies are putting on enterprise data architecture in particular.  Add to that the additional stress from business initiatives such as:

  • Supporting new mobile applications
  • Moving IT applications to the cloud – which significantly increases data management complexity
  • Dealing with external data.  One recent study estimates that a full 25% of the data being managed by the average organization is external data.
  • Next-generation analytics and predictive analytics with Hadoop and No SQL
  • Integrating analytics with applications
  • Event-driven architectures and projects
  • The list goes on…

The point here is that most people are unlikely to be funded to build an enterprise data architecture from scratch that can meet all these needs.  A pragmatic approach would be to build out your future state architecture in each new strategic business initiative that is implemented.  The real challenge of being an enterprise architect is ensuring that all of the new work does indeed add up to a coherent architecture as it gets implemented.

The “Great Rethink” white paper describes a practical approach to achieving an agile and responsive future state enterprise data architecture that will support your strategic business initiatives.  It also describes a high level data integration architecture and the building blocks to achieving that architecture.  This is highly recommended reading.

Also, you might recall that Informatica sponsored the Informatica Architect’s Challenge this year to design an enterprise-wide data architecture of the future.  The contest has closed and we have a winner.  See the site for details, Informatica Architect Challenge .

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