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Wed, Nov 26, 2008 12:19 EST

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Posted by: Thomas Wailgum in Rants Topic: ApplicationsBlog: Enterprise Software Unplugged
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Just a guess: You've got a disconnected set of ERP software applications spread all over your enterprise. You've probably got a standalone SaaS CRM system for the sales folks. Perhaps you just bought a business intelligence package that's supposed to deliver analytics and reporting data to managers and operations people. (You're working on it now.) Throw in a data warehouse, under marketing's domain, and maybe a supply chain or procurement system, and you know what you've really got? A mess.
For what seems like too long a time, most organizations have struggled to get a handle on all of the enterprise-wide data contained in their disparate systems.
Take your pick of the common problems: too many data sources; too many issues with "dirty" data; too many silos and no integration; too many questions about access rights—adding up to too many reasons why any sane person inside those companies would ever want to take ownership over the data. And unless someone does take ownership, an organization will never achieve the oft-discussed "One version of the truth" goal with its enterprise-wide data.
Compounding this timeless trouble: most companies have been growing and adding new enterprise applications and systems—not reducing the number of overall data sources. In other words, the 21st century technological expansion has piled even more data streams on top of an already vexing problem. The result: more fuel on an already out-of-control fire. (You might have noticed that master data management initiatives have grabbed a hold of the "one version of the truth" catchphrase.)
The newest attendee to the party is business intelligence, or BI. A recent report from Aberdeen Group, by research director David Hatch, examines why companies struggle with "one version of the truth" and how BI reporting and analytic tools fit into the picture. "Many organizations spend months and endure significant costs to obtain the reporting and analysis capabilities that BI promises," Hatch writes, "only to find that different 'versions of the truth' still exist without any definite way of determining which one is real or accurate."
As part of the report, Aberdeen surveyed more than 200 senior executives and operations management professionals from 152 companies in varying industries. The root causes of "multiple versions of the truth," according to those surveyed, included: at the data source ("Our data is not clean or properly managed," 74 percent); at the integration level ("Our data sources are not integrated properly," 60 percent); and at the end-user information access and consumption level ("Users introduce error," 49 percent).
The top reason behind the "one version of truth" quests for those surveyed was unsurprising: 36 percent wanted to replace "gut-feel" decisions with "fact-based" ones.
If enterprises don't fix their multiple versions of the truth predicaments, Hatch notes, the end result won't be pretty: No one inside the company will trust the information that is supposed to be aiding their decision making. And, most likely, they'll go straight back to their guts.
When two applications FROM THE SAME VENDOR can't even maintain a co-ordinated view of the same data between themselves.
Differences due to timing we could live with, as long as it netted out over 24 hours and did represent essentially the same business truths.
Adding in applications from other vendors without factoring this into your integration and process design and you will have no chance
Let’s face it: there is no one version of truth in any corporate data. Any company, even medium sized, has no choice but to support hundreds of applications in production, and tens of them contain this or that version of truth. This is a reality. Ask any manager responsible for operations. Huge variety of apps, platforms, etc. can keep her awake at night.
So, one of the main tasks of a CIO is to create or at least to strive to a consistent and manageable application mix in production, to have sane enterprise architecture. Well, good luck with that!
Moreover, the situation is getting worse every day. There are many business and technical reasons to stick with existing systems in production. On top of that, the new ones are frequently added, often by non-IT departments that push through system after system without any considerations for the cost of support and integration or even understanding of this matter. Mess is the right word.
There may be a hope if a CIO can explain the financial consequences of such short-sightedness to a CFO. But even then the chance is rather slim…
I never liked the phrase "single version of the truth." The closest we come to achieving this is External Financial Reporting. We hire auditors to signoff on the single version of the truth. We also know from the number of re-filing that happen that the truth wasn't readily available.
Information used in management decision making is inherently fluid and doesn't lend itself to the single version concept. The addition on new or additional applications complicates the situation even more.
I think you hit on what I believe is the single biggest challenge that keeps the single version of the truth from being made reality. Decisions are often made using data, imperfect as it is, but what is missing is the structure around how the data was used to make the decision. What assumption are being made, what flaws are likely in the models, documentation of the key ingredients so that the recipe for the latest decision is documented for back testing.
Great article - thanks
While a single enterprise-wide homogeneous, clean set of data is intrinsically a good thing, it's also a hopelessly naive ambition to head directly towards achieving it, at least in the "Big BI" form espoused by enterprise BI and DW tools vendors.
Working from the top down, with the overarching goal of providing a single version of the truth misses the single most important point: all BI is local.
Individual business decision makers are concerned with running their business first and foremost. Their primary need, which needs to be satisfied before any higher level organizational concerns can be addressed, is for high quality business information (intelligence) that lets them evaluate the state of their local business. This local BI is grounded in their local business data.
Of course their business decisions need to be made in accordance with their organization's strategic goals and plans, but reconciling their local needs with the strategic imperatives is their professional responsibility.
From this perspective, the single version of the truth that's the holy grail of Big BI is an emergent property of the consolidation of the high quality local BI efforts. As the local BI improves the improvements can be propagated upwards, resulting in continual improvements in the enterprise's comprehensive BI.
While a single enterprise-wide homogeneous, clean set of data is intrinsically a good thing, it's also a hopelessly naive ambition to head directly towards achieving it, at least in the "Big BI" form espoused by enterprise BI and DW tools vendors.
Working from the top down, with the overarching goal of providing a single version of the truth misses the single most important point: all BI is local.
Individual business decision makers are concerned with running their business first and foremost. Their primary need, which needs to be satisfied before any higher level organizational concerns can be addressed, is for high quality business information (intelligence) that lets them evaluate the state of their local business. This local BI is grounded in their local business data.
Of course their business decisions need to be made in accordance with their organization's strategic goals and plans, but reconciling their local needs with the strategic imperatives is their professional responsibility.
From this perspective, the single version of the truth that's the holy grail of Big BI is an emergent property of the consolidation of the high quality local BI efforts. As the local BI improves the improvements can be propagated upwards, resulting in continual improvements in the enterprise's comprehensive BI.