Tag Archives: disruption
This got me thinking: What is the biggest bottleneck in the delivery of business value today? I know I look at things from a data perspective, but data is the biggest bottleneck. Consider this prediction from Gartner:
“Gartner predicts organizations will spend one-third more on app integration in 2016 than they did in 2013. What’s more, by 2018, more than half the cost of implementing new large systems will be spent on integration. “
When we talk about application integration, we’re talking about moving data, synchronizing data, cleansing, data, transforming data, testing data. The question for architects and senior management is this: Do you have the Data Foundation for Execution you need to drive the business results you require to compete? The answer, unfortunately, for most companies is; No.
All too often data management is an add-on to larger application-based projects. The result is unconnected and non-interoperable islands of data across the organization. That simply is not going to work in the coming competitive environment. Here are a couple of quick examples:
- Many companies are looking to compete on their use of analytics. That requires collecting, managing, and analyzing data from multiple internal and external sources.
- Many companies are focusing on a better customer experience to drive their business. This again requires data from many internal sources, plus social, mobile and location-based data to be effective.
When I talk to architects about the business risks of not having a shared data architecture, and common tools and practices for enterprise data management, they “get” the problem. So why aren’t they addressing it? The issue is that they find that they are only funded to do the project they are working on and are dealing with very demanding timeframe requirements. They have no funding or mandate to solve the larger enterprise data management problem, which is getting more complex and brittle with each new un-connected project or initiative that is added to the pile.
Studies such as “The Data Directive” by The Economist show that organizations that actively manage their data are more successful. But, if that is the desired future state, how do you get there?
Changing an organization to look at data as the fuel that drives strategy takes hard work and leadership. It also takes a strong enterprise data architecture vision and strategy. For fresh thinking on the subject of building a data foundation for execution, see “Think Data-First to Drive Business Value” from Informatica.
* By the way, Informatica is proud to announce that we are now a sponsor of the MIT Center for Information Systems Research.
The conversation at the Gartner Enterprise Architecture Summit was very interesting last week. They central them for years had been idea of closely linking enterprise architecture with the goals and strategy. This year, Gartner added another layer to that conversation. They are now actively promoting the idea of enterprise architects as strategists.
The reason why is simple. The next wave of change is coming and it will significantly disrupt everybody. Even worse, your new competitors may be coming from other industries.
Enterprise architects are in a position to take a leading role within the strategy process. This is because they are the people who best understand both business strategy and technology trends.
Some of the key ideas discussed included:
- The boundaries between physical and digital products will blur
- Every organization will need a technology strategy to survive
- Gartner predicts that by 2017: 60% of the Global 1,000 will execute on at least one revolutionary and currently unimaginable business transformation effort.
- The change is being driven by trends such as mobile, social, the connectedness of everything, cloud/hybrid, software-defined everything, smart machines, and 3D printing.
I agree with all of this. My view is that this means that it is time for enterprise architects to think very differently about architecture. Enterprise applications will come and go. They are rapidly being commoditized in any case. They need to think like strategists; in terms of market differentiation. And nothing will differentiate an organization more than their data. Example: Google autonomous cars. Google is jumping across industry boundaries to compete in a new market with data as their primary differentiator. There will be many others.
Years of thinking of architecture from an application-first or business process-first perspective have left us with silos of data and the classic ‘spaghetti diagram” of data architecture. This is slowing down business initiative delivery precisely at the time organizations need to accelerate and make data their strategic weapon. It is time to think data-first when it comes to enterprise architecture.
You will be seeing more from Informatica on this subject over the coming weeks and months.
Take a minute to comment on this article. Your thoughts on how we should go about changing to a data-first perspective, both pro and con are welcomed.
Also, remember that Informatica is running a contest to design the data architecture of the year 2020. Full details are here.