Tag: digital transformation

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Solving the Enterprise Data Dilemma

Due to the adoption of data-driven business, organizations across the board are facing their own enterprise data dilemmas.

This week erwin announced its acquisition of metadata management and data governance provider AnalytiX DS. The combined company touches every piece of the data management and governance lifecycle, enabling enterprises to fuel automated, high-quality data pipelines for faster speed to accurate, actionable insights.

Why Is This a Big Deal?

From digital transformation to AI, and everything in between, organizations are flooded with data. So, companies are investing heavily in initiatives to use all the data at their disposal, but they face some challenges. Chiefly, deriving meaningful insights from their data – and turning them into actions that improve the bottom line.

This enterprise data dilemma stems from three important but difficult questions to answer: What data do we have? Where is it? And how do we get value from it?

Large enterprises use thousands of unharvested, undocumented databases, applications, ETL processes and procedural code that make it difficult to gather business intelligence, conduct IT audits, and ensure regulatory compliance – not to mention accomplish other objectives around customer satisfaction, revenue growth and overall efficiency and decision-making.

The lack of visibility and control around “data at rest” combined with “data in motion”, as well as difficulties with legacy architectures, means these organizations spend more time finding the data they need rather than using it to produce meaningful business outcomes.

To remedy this, enterprises need smarter and faster data management and data governance capabilities, including the ability to efficiently catalog and document their systems, processes and the associated data without errors. In addition, business and IT must collaborate outside their traditional operational silos.

But this coveted state of data nirvana isn’t possible without the right approach and technology platform.

Enterprise Data: Making the Data Management-Data Governance Love Connection

Enterprise Data: Making the Data Management-Data Governance Love Connection

Bringing together data management and data governance delivers greater efficiencies to technical users and better analytics to business users. It’s like two sides of the same coin:

  • Data management drives the design, deployment and operation of systems that deliver operational and analytical data assets.
  • Data governance delivers these data assets within a business context, tracks their physical existence and lineage, and maximizes their security, quality and value.

Although these disciplines approach data from different perspectives and are used to produce different outcomes, they have a lot in common. Both require a real-time, accurate picture of an organization’s data landscape, including data at rest in data warehouses and data lakes and data in motion as it is integrated with and used by key applications.

However, creating and maintaining this metadata landscape is challenging because this data in its various forms and from numerous sources was never designed to work in concert. Data infrastructures have been cobbled together over time with disparate technologies, poor documentation and little thought for downstream integration, so the applications and initiatives that depend on data infrastructure are often out-of-date and inaccurate, rendering faulty insights and analyses.

Organizations need to know what data they have and where it’s located, where it came from and how it got there, what it means in common business terms [or standardized business terms] and be able to transform it into useful information they can act on – all while controlling its access.

To support the total enterprise data management and governance lifecycle, they need an automated, real-time, high-quality data pipeline. Then every stakeholder – data scientist, ETL developer, enterprise architect, business analyst, compliance officer, CDO and CEO – can fuel the desired outcomes with reliable information on which to base strategic decisions.

Enterprise Data: Creating Your “EDGE”

At the end of the day, all industries are in the data business and all employees are data people. The success of an organization is not measured by how much data it has, but by how well it’s used.

Data governance enables organizations to use their data to fuel compliance, innovation and transformation initiatives with greater agility, efficiency and cost-effectiveness.

Organizations need to understand their data from different perspectives, identify how it flows through and impacts the business, aligns this business view with a technical view of the data management infrastructure, and synchronizes efforts across both disciplines for accuracy, agility and efficiency in building a data capability that impacts the business in a meaningful and sustainable fashion.

The persona-based erwin EDGE creates an “enterprise data governance experience” that facilitates collaboration between both IT and the business to discover, understand and unlock the value of data both at rest and in motion.

By bringing together enterprise architecture, business process, data mapping and data modeling, erwin’s approach to data governance enables organizations to get a handle on how they handle their data. With the broadest set of metadata connectors and automated code generation, data mapping and cataloging tools, the erwin EDGE Platform simplifies the total data management and data governance lifecycle.

This single, integrated solution makes it possible to gather business intelligence, conduct IT audits, ensure regulatory compliance and accomplish any other organizational objective by fueling an automated, high-quality and real-time data pipeline.

With the erwin EDGE, data management and data governance are unified and mutually supportive, with one hand aware and informed by the efforts of the other to:

  • Discover data: Identify and integrate metadata from various data management silos.
  • Harvest data: Automate the collection of metadata from various data management silos and consolidate it into a single source.
  • Structure data: Connect physical metadata to specific business terms and definitions and reusable design standards.
  • Analyze data: Understand how data relates to the business and what attributes it has.
  • Map data flows: Identify where to integrate data and track how it moves and transforms.
  • Govern data: Develop a governance model to manage standards and policies and set best practices.
  • Socialize data: Enable stakeholders to see data in one place and in the context of their roles.

An integrated solution with data preparation, modeling and governance helps businesses reach data governance maturity – which equals a role-based, collaborative data governance system that serves both IT and business users equally. Such maturity may not happen overnight, but it will ultimately deliver the accurate and actionable insights your organization needs to compete and win.

Your journey to data nirvana begins with a demo of the enhanced erwin Data Governance solution. Register now.

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Benefits of Process: Why Modern Organizations Need Process-Based Engines

In the current data-driven business climate, the benefits of process and process-based strategy are more desirable to organizations than ever.

Industry regulations and competition traditionally have driven organizational change, but such “transformation” has rarely been comprehensive or truly transformative. Rather, organizational transformation has come in waves, forcing companies and their IT ecosystems to ride them as best as they can – sometimes their fortunes have risen, and sometimes they have waned.

The advent of Brexit and GDPR have again forced today’s organizations to confront external stimuli’s impact on their operations. The difference is that the modern, process-based enterprises can better anticipate these sorts of mandates, incorporate them into their strategic plans, and even leapfrog ahead of their requirements by initiating true internal transformation initiatives – ones based on effectively managed and well-documented business processes.

Shifting Attitudes

Traditional organizations focus almost exclusively on rigid structures, centralized management and accountability; concentrated knowledge; service mainly to external customers; and reactive, short-term strategy alignment driven mainly by massive-scale projects. This traditional approach results in large, unwieldy and primarily reactive organizations that rely either on legacy strengths or inertia for survival.

But as technology evolves and proliferates, more and more organizations are realizing they need to adjust their traditional thinking and subsequent actions, even if just slightly, to gain strategic advantage, reduce costs and retain market dominance. For example:

  • Structures are becoming more adaptable, allowing for greater flexibility and cost management. How is this possible and why now? Organizations are grasping that effective, well-managed and documented business processes should form their operational backbones.
  • Business units and the departments within them are becoming accountable not only for their own budgets but also on how well they achieve their goals. This is possible because their responsibilities and processes can be clearly defined, documented and then monitored to ensure their work is executed in a repeatable, predictable and measurable way.
  • Knowledge is now both centralized and distributed thanks to modern knowledge management systems. Central repositories and collaborative portals give everyone within the organization equal access to the data they need to do their jobs more effectively and efficiently.
  • And thanks to all the above, organizations can expand their focus from external customers to internal ones as well. By clearly identifying individual processes (and their cross-business handover points) and customer touchpoints, organizations can interact with any customer at the right point with the most appropriate resources.

If business drivers are connected to processes with appropriate accountability, they become measurable in dimensions never before possible. Such elements as customer-journey quality and cost, process-delivery efficiency and even bottom-up cost aggregation can be captured. Strategic decision-making then becomes infinitely practical and forward-looking.

With this interconnected process – and information – based ecosystem, management can perform accurate and far-reaching impact analyses, test alternate scenarios, and evaluate their costs and implementation possibilities (and difficulties) to make decisions with full knowledge of their implications. Organizational departments can provide real-time feedback on designs and projects, turning theoretical designs into practical plans with buy-in at the right levels.

Benefits of Process

As stated above, one of the key benefits of process and a process-based organizational engine is that organizations should be able to better handle outside pressures, such as new regulations, if they are – or are becoming – truly process-based. Because once processes (and their encompassing business architecture) become central to the organization, a wide array of things become simpler, faster and cheaper.

The benefits of process don’t stop there either. Application design – the holy grail or black hole of budgetary spending and project management, depending on your point of view – is streamlined, with requirements clearly gathered and managed in perfect correspondence to the processes they serve and with the data they manage clearly documented and communicated to the developers. Testing occurs against real-life scenarios by the responsible parties as documented by the process owners – a drastic departure from the more traditional approaches in which the responsibility fell to designated, usually technical application owners.

Finally – and most important – data governance is no longer the isolated domain of data architects but central to the everyday processes that make an organization tick. As processes have stakeholders who use information – data – the roles of technical owners and data stewards become integral to ensuring processes operate efficiently, effectively and – above all – without interruptions. On the other side of this coin, data owners and data stewards no longer operate in their own worlds, distant from the processes their data supports.

Seizing a Process-Based Future

Process is a key axis along which the modern organization must operate. Data governance is another, with cost management becoming a third driver for the enterprise machine. But as we all know, it takes more than stable connecting rods to make an engine work – it needs cogs and wheels, belts and multiple power sources, all working together.

In the traditional organization, people are the internal mechanics. But one can’t escape visions of Charlie Chaplin’s Modern Times worker hopelessly entangled in the machine on which he was working. That’s why, these days, powerful and flexible workflow engines provide much-needed automation for greater visibility plus more power, stability and quality – all the things a machine needs to operate as required/designed.

Advanced process management systems are becoming essential, not optional. And while not as sexy or attention-grabbing as other technologies, they provide the power to drive an organization toward its goals quickly, cost-effectively and efficiently.

To learn how erwin can empower a modern, process-based organization, please click here.

Data-Driven Business Transformation whitepaper

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Business Process Modeling and Its Role Within the Enterprise

To achieve its objectives, an organization must have a complete understanding of its processes. Therefore, business process design and analysis are key to defining how a business operates and ensures employees understand and are accountable for carrying out their responsibilities.

Understanding system interactions, business processes and organizational hierarchies creates alignment, with everyone pulling in the same direction, and supports informed decision-making for optimal results and continuous improvement.

Those organizations operating in industries in which quality, health, safety and environmental issues are constant concerns must be even more in tune with their complexities. After all, revenue and risk are inextricably linked.

What Is Business Process Modeling and Why Does It Matter?

A business process is “an activity or set of activities that will accomplish a specific organizational goal,” as defined by TechTarget. Business process modeling “links business strategy to IT systems development to ensure business value,” according to Gartner.

The research firm goes on to explain that it “combines process/workflow, functional, organizational and data/resource views with underlying metrics, such as costs, cycle times and responsibilities, you establish a foundation for analyzing value chains, activity-based costs, bottlenecks, critical paths and inefficiencies.”

To clearly document, define, map and analyze workflows and build models to drive process improvement and therefore business transformation, you’ll need to invest in a business process (BP) modeling solution.

Only then will you be able to determine where cross-departmental and intra-system process chains break down, as well as identify business practices susceptible to the greatest security, compliance, standards or other risks and where controls and audits are most needed to mitigate exposures.

Companies that maintain accurate BP models also are well-positioned to analyze and optimize end-to-end process threads that help accomplish such strategic business objectives as improving customer journeys and maximizing employee retention. You also can slice and dice models in multiple other ways, including to improve collaboration and efficiency.

Useful change only comes from evaluating process models, spotting sub-optimalities, and taking corrective actions. Business process modeling is also critical to data governance, helping organizations understand their data assets in the context of where their data is and how it’s used in various processes. Then you can drive data opportunities, like increasing revenue, and limit data risks, such as avoiding regulatory and compliance gaffes.

How to Do Business Process Modeling

Business process modeling software creates the documentation and graphical roadmap of how a business works today, detailing the tasks, responsible parties and data elements involved in processes and the interactions that occur across systems, procedures and organizational hierarchies. That knowledge, in turn, prepares the organization for tomorrow’s changes.

Effective BP technology will assist your business in documenting, managing and communicating your business processes in a structured manner that drives value and reduces risks.

It should enable you to:

  • Develop and capture multiple artefacts in a repository to support business-centric objectives
  • Support process improvement methodologies that boost critical capabilities
  • Identify gaps in process documentation to retain internal mastery over core activities
  • Reduce maintenance costs and increase employee access to critical knowledge
  • Incorporate any data from any location into business process models

In addition, a business process modeling solution should work in conjunction with the other data management domains (i.e., enterprise architecture, data modeling and data governance) to provide data clarity across all organizational roles and goals.

Data Governance, Data Modeling, Enterprise Architecture, Business Process - erwin EDGE

Business Process Modeling and Enterprise Data Management

Data isn’t just for “the data people.” To survive and thrive in the digital age, among the likes of Amazon, Airbnb, Netflix and Uber that have transformed their respective industries, organizations must extend the use, understanding and trust of their data everyday across every business function – from the C-level to the front line.

A common source of data leveraged by business process personnel, enterprise architects, data stewards and others encourages a greater understanding of how different line-of-business operations work together as a single unit. Links to data terms and categories contained within a centralized business glossary let enterprises eliminate ambiguity in process and policy procedure documents.

Integrated business models based on a sole source of truth also offer different views for different stakeholders based on their needs, while tight interconnection with enterprise architecture joins Process, Organization, Location, Data, Applications, and Technology (POLDAT) assets to explanatory models that support informed plans for change.

Seamless integration of business process models with enterprise architecture, data modeling and data governance reveals the interdependence between the workforce, the processes they perform, the actively governed assets they interact with and their importance to the business.

Then everyone is invested in and accountable for data, the fuel for the modern enterprise.

To learn more about business process modeling and its role within data-driven business transformation, click here.

Data-Driven Business Transformation whitepaper

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A New Wave in Application Development

Application development is new again.

The ever-changing business landscape – fueled by digital transformation initiatives indiscriminate of industry – demands businesses deliver innovative customer – and partner – facing solutions, not just tactical apps to support internal functions.

Therefore, application developers are playing an increasingly important role in achieving business goals. The financial services sector is a notable example, with companies like JPMorgan Chase spending millions on emerging fintech like online and mobile tools for opening accounts and completing transactions, real-time stock portfolio values, and electronic trading and cash management services.

But businesses are finding that creating market-differentiating applications to improve the customer experience, and subsequently customer satisfaction, requires some significant adjustments. For example, using non-relational database technologies, building another level of development expertise, and driving optimal data performance will be on their agendas.

Of course, all of this must be done with a focus on data governance – backed by data modeling – as the guiding principle for accurate, real-time analytics and business intelligence (BI).

Evolving Application Development Requirements

The development organization must identify which systems, processes and even jobs must evolve to meet demand. The factors it will consider include agile development, skills transformation and faster querying.

Rapid delivery is the rule, with products released in usable increments in sprints as part of ongoing, iterative development. Developers can move from conceptual models for defining high-level requirements to creating low-level physical data models to be incorporated directly into the application logic. This route facilitates dynamic change support to drive speedy baselining, fast-track sprint development cycles and quick application scaling. Logical modeling then follows.

Application Development

Agile application development usually goes hand in hand with using NoSQL databases, so developers can take advantage of more pliable data models. This technology has more dynamic and flexible schema design than relational databases and supports whatever data types and query options an application requires, processing efficiency, and scalability and performance suiting Big Data and new-age apps’ real-time requirements. However, NoSQL skills aren’t widespread so specific tools for modeling unstructured data in NoSQL databases can help staff used to RDBMS ramp up.

Finally, the shift to agile development and NoSQL technology as part of more complex data architectures is driving another shift. Storage-optimized models are moving to the backlines because a new format is available to support real-time app development. It is one that understands what’s being asked of the data and enables schemes to be structured to support application data access requirements for speedy responses to complex queries.

The NoSQL Paradigm

erwin DM NoSQL takes into account all the requirements for the new application development era. In addition to its modeling tools, the solution includes patent-pending Query-Optimized ModelingTM that replaces storage-optimized modeling, giving users guidance to build schemas for optimal performance for NoSQL applications.

erwin DM NoSQL also embraces an “any-squared” approach to data management, so “any data” from “anywhere” can be visualized for greater understanding. And the solution now supports the Couchbase Data Platform in addition to MongoDB. Used in conjunction with erwin DG, businesses also can be assured that agility, speed and flexibility will not take precedence over the equally important need to stringently manage data.

With all this in place, enterprises will be positioned to deliver unique, real-time and responsive apps to enhance the customer experience and support new digital-transformation opportunities. At the same time, they’ll be able to preserve and extend the work they’ve already done in terms of maintaining well-governed data assets.

For more information about how to realize value from app development in the age of digital transformation with the help of data modeling and data governance, you can download our new e-book: Application Development Is New Again.

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Data Governance 2.0: Biggest Data Shakeups to Watch in 2018

This year we’ll see some huge changes in how we collect, store and use data, with Data Governance 2.0 at the epicenter. For many organizations, these changes will be reactive, as they have to adapt to new regulations. Others will use regulatory change as a catalyst to be proactive with their data. Ideally, you’ll want to be in the latter category.

Data-driven businesses and their relevant industries are experiencing unprecedented rates of change.

Not only has the amount of data exploded in recent years, we’re now seeing the amount of insights data provides increase too. In essence, we’re finding smaller units of data more useful, but also collecting more than ever before.

At present, data opportunities are seemingly boundless, and we’ve barely begun to scratch the surface. So here are some of the biggest data shakeups to expect in 2018.

2018 data governance 2.0

GDPR

The General Data Protection Regulation (GDPR) has organizations scrambling. Penalties for non-compliance go into immediate effect on May 25, with hefty fines – up to €20 million or 4 percent of the company’s global annual turnover, whichever is greater.

Although it’s a European mandate, the fact is that all organizations trading with Europe, not just those based within the continent, must comply. Because of this, we’re seeing a global effort to introduce new policies, procedures and systems to prepare on a scale we haven’t seen since Y2K.

It’s easy to view mandated change of this nature as a burden. But the change is well overdue – both from a regulatory and commercial point of view.

In terms of regulation, a globalized approach had to be introduced. Data doesn’t adhere to borders in the same way as physical materials, and conflicting standards within different states, countries and continents have made sufficient regulation difficult.

In terms of business, many organizations have stifled their digital transformation efforts to become data-driven, neglecting to properly govern the data that would enable it. GDPR requires a collaborative approach to data governance (DG), and when done right, will add value as well as achieve compliance.

Rise of Data Governance 2.0

Data Governance 1.0 has failed to gain a foothold because of its siloed, un-collaborative nature. It lacks focus on business outcomes, so business leaders have struggled to see the value in it. Therefore, IT has been responsible for cataloging data elements to support search and discovery, yet they rarely understand the data’s context due to being removed from the operational side of the business. This means data is often incomplete and of poor quality, making effective data-driven business impossible.

Company-wide responsibility for data governance, encouraged by the new standards of regulation, stand to fundamentally change the way businesses view data governance. Data Governance 2.0 and its collaborative approach will become the new normal, meaning those with the most to gain from data and its insights will be directly involved in its governance.

This means more buy-in from C-level executives, line managers, etc. It means greater accountability, as well as improved discoverability and traceability. Most of all, it means better data quality that leads to faster, better decisions made with more confidence.

Escalated Digital Transformation

Digital transformation and its prominence won’t diminish this year. In fact, thanks to Data Governance 2.0, digital transformation is poised to accelerate – not slow down.

Organizations that commit to data governance beyond just compliance will reap the rewards. With a stronger data governance foundation, organizations undergoing digital transformation will enjoy a number of significant benefits, including better decision making, greater operational efficiency, improved data understanding and lineage, greater data quality, and increased revenue.

Data-driven exemplars, such as Amazon, Airbnb and Uber, have enjoyed these benefits, using them to disrupt and then dominate their respective industries. But you don’t have to be Amazon-sized to achieve them. De-siloing DG and treating it as a strategic initiative is the first step to data-driven success.

Data as Valuable Asset

Data became more valuable than oil in 2017. Yet despite this assessment, many businesses neglect to treat their data as a prized asset. For context, the Industrial Revolution was powered by machinery that had to be well-maintained to function properly, as downtime would result in loss. Such machinery adds value to a business, so it is inherently valuable.

Fast forward to 2018 with data at center stage. Because data is the value driver, the data itself is valuable. Just because it doesn’t have a physical presence doesn’t mean it is any less important than physical assets. So businesses will need to change how they perceive their data, and this is the year in which this thinking is likely to change.

DG-Enabled AI and IoT

Artificial Intelligence (AI) and the Internet of Things (IoT) aren’t new concepts. However, they’re yet to be fully realized with businesses still competing to carve a slice out of these markets.

As the two continue to expand, they will hypercharge the already accelerating volume of data – specifically unstructured data – to almost unfathomable levels. The three Vs of data tend to escalate in unison. As the volume increases, so does the velocity and speed at which data must be processed. The variety of data – mostly unstructured in these cases – also increases, so to manage it, businesses will need to put effective data governance in place.

Alongside strong data governance practices, more and more businesses will turn to NoSQL databases to manage diverse data types.

For more best practices in business and IT alignment, and successfully implementing Data Governance 2.0, click here.

Data governance is everyone's business

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Five Steps to Digital Transformation

Digital Transformation

Digital transformation is ramping up in all industries. Facing regular market disruptions, and landscape-changing technological breakthroughs, modern businesses must be both malleable and willing to change.

To stay competitive, you must be agile.

Digital Transformation is Inevitable

Increasing numbers of organizations are undergoing a digital transformation. The tried-and-tested yet rigid methods of doing business are being replaced by newer, data-orientated approaches that require thorough but fast analysis.

Some businesses – like Amazon, Netflix and Uber – are leading this evolution. They all provide very different services, but at their core, they are technology focused.

And they’re reaping rewards for it too. Amazon is one of the most valuable businesses in the world, perhaps one of the first companies to reach a $1-trillion valuation.

It’s not too late to adopt digital transformation, but it is  too late to keep fighting against it. The tide of change has quickened, and stubborn businesses could be washed away.

But what’s the best way to get started?

Step One: Determine Your End Goal

Any form of change must start with the end in mind, as it’s impossible to make a transformation without understanding why and how.

Before you make a change, big or small, you need to ask yourself why are we doing this? What are the positives and negatives? And if there are negatives, what can we do to mitigate them?

To ensure a successful digital transformation, it’s important to plot your journey from the beginning through your end goal, understanding how one change or a whole series of changes will alter your business.

Business process modeling tools can help map your digital transformation journey.

Step Two: Get Some Strategic Support

For businesses of any size, transformational change can disrupt day-to-day operations. In most organizations, the expertise to manage a sizeable transformation program doesn’t exist, and from the outset, it can appear quite daunting.

If your goal is to increase profits, it can seem contradictory to pay for support to drive your business forward. However, a slow or incorrect transformational process can be costly in many ways. Therefore, investing in support can be one of the best decisions you make.

Effective strategic planning, rooted in enterprise architecture, can help identify gaps and potential oversights in your strategy. It can indicate where investment is needed and ensure transformative endeavors aren’t undermined by false-starts and U-turns.

Many businesses would benefit further by employing strategic consultants. As experts in their fields, strategic consultants know the right questions to ask to uncover the information you need to influence change.

Their experience can support your efforts by identifying and cataloging underlying components, providing input to the project plan and building the right systems to capture important data needed to meet the business’s transformation goals.

Step Three: Understand What You Have

Once you know where you want to go, it’s important to understand what you currently do. That might seem clear, but even the smallest organizations are underpinned by thousands of business processes.

Before you decide to change something, you need to understand everything about what you currently do, or else a change could have an unanticipated and negative impact.

Enterprise architecture will also benefit a business here, uncovering strategic improvement opportunities – valuable changes you might not have seen.

As third-parties, consultants can provide an impartial view, rather than letting historic or legacy decisions cloud future judgment.

Businesses will also benefit from data modeling. This is due to the exponential increase in the volume of data businesses have to manage – as well as the variety of disparate sources.

Data modeling will ensure data is accessible, understood and better prepared for analysis and the decision-making process.

Step Four: Collect Knowledge from Within

Your employees are a wealth of knowledge and ideas, so it’s important to involve them in the enterprise architecture process.

Consultants can facilitate a series of staff workshops to enable employee insights to be shared and then developed into real, actionable changes.

Step Five: Get Buy-in Across the Business

Once you’ve engaged with your staff to collect the knowledge they hold, make sure you don’t cut them off there. Business change is only successful if everyone understands what is happening and why, with continuous updates.

Ensure that you take your employees through the change process, making them  part of the digital transformation journey.

Evidence suggests that 70 percent of all organizational change efforts fail, with a primary reason being that executives don’t get enough buy-in for new initiatives and ideas.

By involving relevant stakeholders in the strategic planning process, you can mitigate this risk. Strategic planning tools that enable collaboration can achieve this. Thanks to technological advancements in the cloud, collaboration can even be effectively facilitated online.

Take your employees through your digital transformation journey, and you’ll find them celebrating with you when you arrive at your goal.

If you think now is the right time for your business to change, get in touch with us today.

Data-Driven Business Transformation

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Data-Driven Business – Changing Perspective

Data-driven business is booming. The dominant, driving force in business has arguably become a driving force in our daily lives for consumers and corporations alike.

We now live in an age in which data is a more valuable resource than oil, and five of the world’s most valuable companies – Alphabet/Google, Amazon, Apple, Facebook and Microsoft – all deal in data.

However, just acknowledging data’s value won’t do. For a business to truly benefit from its information, a change in perspective is also required. With an additional $65 million in net income available to Fortune 1000 companies that make use of just 10 percent more of their data, the stakes are too high to ignore.

Changing Perspective

Traditionally, data management only concerned data professionals. However, mass digital transformation, with data as the foundation, puts this traditional approach at odds with current market needs. Siloing data with data professionals undermines the opportunity to apply data to improve overall business performance.

The precedent is there. Some of the most disruptive businesses of the last decade have doubled down on the data-driven approach, reaping huge rewards for it.

Airbnb, Netflix and Uber have used data to transform everything, including how they make decisions, invent new products or services, and improve processes to add to both their top and bottom lines. And they have shaken their respective markets to their cores.

Even with very different offerings, all three of these businesses identify under the technology banner – that’s telling.

Common Goals

One key reason for the success of data-driven business, is the alignment of common C-suite goals with the outcomes of a data initiative.

Those goals being:

  • Identifying opportunities and risk
  • Strengthening marketing and sales
  • Improving operational and financial performance
  • Managing risk and compliance
  • Producing new products and services, or improve existing ones
  • Monetizing data
  • Satisfying customers

This list of C-suite goals is, in essence, identical to the business outcomes of a data-driven business strategy.

What Your Data Strategy Needs

In the early stages of data transformation, businesses tend to take an ad-hoc approach to data management. Although that might be viable in the beginning, a holistic data-driven strategy requires more than makeshift efforts, and repurposed Office tools .

Organizations that truly embrace data, becoming fundamentally data-driven businesses, will have to manage data from numerous and disparate sources (variety) in increasingly large quantities (volume) and at demandingly high speeds (velocity).

To manage these three Vs of data effectively, your business needs to take an “any-squared” (Any2) approach. That’s “any data” from “anywhere.”

Any2

By leveraging a data management platform with data modeling, enterprise architecture and business process modelling, you can ensure your organization is prepared to undergo a successful digital transformation.

Data modeling identifies what data you have (internal and external), enterprise architecture determines how best to use that data to drive value, and business process modeling provides understanding in how the data should be used to drive business strategy and objectives.

Therefore, the application of the above disciplines and associated tools goes a long way in achieving the common goals of C-suite executives.

For more data advice and best practices, follow us on Twitter, and LinkedIn to stay up to date with the blog.

For a deeper dive into best practices for data, its benefits, and its applications, get the FREE whitepaper below.

Data-Driven Business Transformation

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erwin Expert Blog Enterprise Architecture

Digital Transformation & Agile Enterprise Architecture

Digital transformation remains a hot topic as the convergence of new customer preferences and expectations, and the increasing number of touchpoints is driving business and technology decision-making like never before.

Rising to this challenge in the digital business world requires a laser-like focus on the customer and innovation opportunities, which means change is a necessity. Digital transformation is the crux to drive organizational, process and technology changes that help ensure the customer is more closely connected to, and better served by, the business.

Technology organizations will even begin to attribute their own revenue streams as digital business models play a much larger role in organizations of all sizes.

As such, enterprise architecture (EA) is extremely well positioned to support change and innovation initiatives, but how can EAs position themselves to influence and even lead digital transformation?

This will become increasingly relevant if analyst figures are anything to go by. IDC have forecasted that the percentage of enterprises creating advanced digital transformation initiatives will reach 50% by 2020, up from 22%. Additionally, Forrester sets out that only 27% of today’s businesses have a coherent digital strategy for how they will create customer value in the digital business world – a number which will only increase.

Digital Transformation Enterprise Architecture

Enterprise Architecture For Digital Transformation

Digital Transformation can be seen as customer and market pressures driving technology and organizational change and innovation that is necessary for the business to satisfy and delight its customer base (it is quite a mouthful I admit).

Architects should view the enterprise as a complex, living system and technology-enabled transformation requires a much more agile approach than traditional EA has been able to offer in the past. Focusing more on solving business problems than on extensive documentation, and taking a data-driven approach to transformation will allow EA to drive digital transformation.

Starting out on a transformation journey pursuing increased productivity alone is not going to deliver the kind of outcomes that will delight customers and set the foundations for competitiveness and growth. Instead, focus on the business opportunities that will allow you to better serve and delight the customer base, open up new products or services to the existing base, or open up a new customer segment entirely.

There is still much work to be done to break down the silos that exist; every department or line of business has its requirements and to a certain extent their own way of working, supported by applications that are siloed, resting on infrastructure silos.

In this type of environment the world is revolving around the organization’s infrastructure. But today, digital business often starts where the customer first touches the business online or via an app. This must be the new focus and the traditional silos need to be fixed in order to truly transform for the customer.

Transformation Requires Agile Enterprise Architecture

With as many articles and posts about digital transformation and EA, you’d think there was a defined clear path to follow on the journey to becoming a digitized business. Yet we all know there’s no recipe that can guarantee digital success.

One thing is for sure however, those organizations that can establish business agility as a strategic capability will be best placed to respond to the opportunities from digital transformation. An agile business means being responsive to new opportunities, resilient to risks, and innovative in the face of transformation requirements.

There are limitations to achieving business agility through EA, though. Those being:

  • EA is often buried deep within the IT team
  • EA has a poor connection to the business organization
  • EA is too focused on producing extensive documentation rather than delivering business outcomes
  • EA sits in an ivory tower

However, thinking about agility at the meta layer helps to describe an enterprise that is inherently agile, flexible and architected for continuing change and transformation. Start to think of business agility as a meta requirement, where requirement change must be supported. Even meta processes, where process change must be supported.

The agile EA needs to be oriented towards how things change, rather than the things themselves to help build an enterprise architecture and organization that can act with agility. Architects can focus on specifying technology that is inherently flexible so that it is capable of supporting the expected change.

EAs that can architect their organization for increased business agility can position themselves to influence and even lead digital transformation agenda, by providing the decision support system to focus and deliver on the right digital strategies.

enterprise architecture business process