Tag Archives: Operational Data Integration
- The cost of losing one customer is four times higher than the cost of obtaining that same customer (Return on Behavior Magazine)
- Satisfying and retaining current customers is 3 to 10 times cheaper than acquiring new customers, and a typical company receives around 65 percent of its business from existing customers (McKinsey, 2001)
- A 5% reduction in the customer defection rate can increase profits by 25% to 80% (Return on Behavior Magazine)
- 7 out of 10 customers who switch to a competitor do so because of poor service (McKinsey, 2001) (more…)
I have firmly believed that a day would come when it would be you, my fellow integrators, telling me that one needs to data-orient first before benefiting from service-orientation. That day has indeed come!
Just recently, I created a quick one question survey and sent it off to a number of application and enterprise architects as well as IT managers at leading enterprises. The question was:
- What are the top three things on your mind as you architect or re-architect your infrastructures?
There was a common thread across the responses that I received:
Service-orientation or an architectural approach to increase the speed and agility of how IT responds to a business’ requests,
Doing more with less or something to that effect, and
An easy way to leverage all relevant information, when it is needed and how it is needed
When I saw these responses, the pragmatic part of me started to build a list of questions in my head and I decided to call a number of these professionals and get the real scoop on their selections.
Here is what I heard…
I couldn’t have said it more eloquently than as described below:
“The data is a pivotal piece of an SOA (most IT approaches, really), and is often under-served by SOA initiatives and projects. Data is diverse, duplicated, dispersed, dirty, and just generally chaotic. You need to rationalize it into meaningful business information for the rest of the architecture to work well. This is the data abstraction layer that Ash mentions. This is not an ESB, but rather a data services layer that feeds an ESB and other components in the architecture.”
In my previous posts and in the webinar that this post refers to, I have stated that SOA promises to deliver business agility by breaking down barriers between silos of applications, and by reusing business services. However, in speaking to a number of customers and prospects, it is becoming very clear that if the data stuck inside silos is bad, is stale, or is inaccurate, it does not matter if the most elegant architecture or technology is used. Data is at the heart of the modern enterprise and as pointed out in the referenced blog, data integration is the “pivotal” piece that can ensure the availability of accurate, consistent and timely information.
In one of my earlier posts I mentioned that in order to effectively enable business agility, businesses need access to information at the speed of business, or what is called “right-time” information.
In that post I had also introduced the terms “Right-Time Information” and the “Information Latency Continuum.”
In the recently concluded TDWI World Conference in San Diego, my colleague John Haddad recorded a podcast with Claudia Imhoff where he spoke on data latency issues, including the need to deliver data in real-time so organizations can operate at the “speed of business.”
Listen to John Haddad speak about the “Information Latency Continuum” and the business value of timely and accurate information delivered across a range of latencies, real-time, near real-time and batch.
In my previous post I made a statement that SOA and BPM overlooked the complexity of integrating fragmented enterprise data. As I looked around me across the vast expanse of the World Wide Web, I ran into someone else who says it exactly like it is – Michael Dortch.
- “Need the First: The ability to base every business action, decision, and process on the most accurate, consistent, secure, and timely information available, without fail.
- Need the Second: The ability to answer the “Journalism 101” questions about that information – who’s using what, when, where, why, and how – accurately and completely, on demand at any time.”
He goes on to say that “Processes developed, enforced or revised based on inaccurate, inconsistent, or just plain wrong information are opportunities to make what we called sardonically in my young analyst days ‘career-limiting decisions.’”
So, as I have been saying, when it comes to leveraging the power of paradigms such as SOA and BPM, it does come down to accuracy, consistency and timeliness after all.
What do you think?
Yesterday Informatica announced a wave of support from customers and partners around the benefits of real-time data integration. The term “real-time” gets interesting reactions from different people, so I thought I’d share my thoughts on this. After all, the concept of real-time has been around for years. So, what’s different about our story?
The key is in the capabilities that are now provided – for the first time you can use a single software platform and choose the latency (or speed) with which data integration is performed. If you need integration performed daily – that’s cool. However if you need it done on an hourly basis, or on a per-second basis then that’s cool too. Simply choose the latency you require and off you go.
The other great thing this gives you is insurance against the one truism that we all face in life – change. Actually, not only change, but an accelerating rate of change and this is something that Informatica is really good it. You see, with Informatica we can change your latency of integration without changing your software infrastructure. If you have a chance, take a look at the “real-time index” that we’ve introduced. This is important because it gives enterprises an agile infrastructure that is respondent to change – no need to recode and no need to rip out and replace.
So with Informatica we now enable enterprises to do real-time integration, or perhaps more importantly, right-time integration to meet their business requirements and deliver a level of agility to the business that was previously almost impossible to achieve.
What do you think – what does real time mean to your business?