BI Paradox
In Howard's previous post, he mentioned the BI Paradox and the fundamental differences between IT and the business.
I actually think that could be changing. What is a paradox? It is something that looks like a contradiction, but perhaps is not. Usually you can solve a paradox by bringing in a 'third element'. The third element changes the dynamic between the 2 contradictions and unites the two.
In BI and BPM the CIO and CFO (or other business executives) have conflicting requirements. The CIO needs to have a single platform that is scalable, manageable and has a good performance. The CFO needs to have a platform that solves problems fast. So far, it has led to a disparate relationship between the CIO's data warehouse and the business BI and BPM systems. Or it has led to a situation where one camp 'won': a single BI tool where the business is unhappy with, or BI-galore.
A service-oriented architecture makes a difference. It seems that in the business software world, we are reaching already a second generation of SOA thinking. The first generation was dominated by the techies. SOA was there to make development of software easier.
In the second generation, BI/BPM functionality starts to swap sides between infrastructure and application. Think about it: application nuggets such as a dashboard, a workflow, a planning grid are totally generic and be reused for multiple purposes. These move from the application layer into the infrastructure layer as 'services'. Development functions however move from the infrastructure to the user layer, so that users can now glue their own applications together in a visual style. Have a look at the new 'BPM Architect' in R&D Central to see what I mean.
This second generation, a service-oriented business application, is the 'solving element' of the paradox. By reshuffling the components of the suite, IT does infrastructure things and business is responsible for its applications. The System 9 platform unites both the CFO (and other business executives) with the CIO.
Ok, I can hear you thinking, if there is a second generation, what is the 3rd? That is where IT and Business now are able to team up and create new business models. A service-oriented organization! Business processes and the accompanying management system are not defined inside-out anymore from organization to its customers in a hard-wired way, but the business model starts to consist of services, that customers glue together as they go in working with you. Outside-in. I have always been impressed with www.nikeid.com. As a customer, you can design your own shoes, have the produced and have them shipped to you. So where does the front-office stop here, and does the back-office begin? There is no difference anymore.
You see, it is an outside in approach. A process defined in the steps the customer likes. That's a service oriented organization.
We not only need new transactional systems to pull this off, but it sets an entirely new standard for flexibility of the management system.
Are you trying to achieve something like this in your company? Drop me a note at frank_buytendijk@nospam.hyperion.com (remove the nospam part from the email address to reach me). I'd love to learn from you...
I actually think that could be changing. What is a paradox? It is something that looks like a contradiction, but perhaps is not. Usually you can solve a paradox by bringing in a 'third element'. The third element changes the dynamic between the 2 contradictions and unites the two.
In BI and BPM the CIO and CFO (or other business executives) have conflicting requirements. The CIO needs to have a single platform that is scalable, manageable and has a good performance. The CFO needs to have a platform that solves problems fast. So far, it has led to a disparate relationship between the CIO's data warehouse and the business BI and BPM systems. Or it has led to a situation where one camp 'won': a single BI tool where the business is unhappy with, or BI-galore.
A service-oriented architecture makes a difference. It seems that in the business software world, we are reaching already a second generation of SOA thinking. The first generation was dominated by the techies. SOA was there to make development of software easier.
In the second generation, BI/BPM functionality starts to swap sides between infrastructure and application. Think about it: application nuggets such as a dashboard, a workflow, a planning grid are totally generic and be reused for multiple purposes. These move from the application layer into the infrastructure layer as 'services'. Development functions however move from the infrastructure to the user layer, so that users can now glue their own applications together in a visual style. Have a look at the new 'BPM Architect' in R&D Central to see what I mean.
This second generation, a service-oriented business application, is the 'solving element' of the paradox. By reshuffling the components of the suite, IT does infrastructure things and business is responsible for its applications. The System 9 platform unites both the CFO (and other business executives) with the CIO.
Ok, I can hear you thinking, if there is a second generation, what is the 3rd? That is where IT and Business now are able to team up and create new business models. A service-oriented organization! Business processes and the accompanying management system are not defined inside-out anymore from organization to its customers in a hard-wired way, but the business model starts to consist of services, that customers glue together as they go in working with you. Outside-in. I have always been impressed with www.nikeid.com. As a customer, you can design your own shoes, have the produced and have them shipped to you. So where does the front-office stop here, and does the back-office begin? There is no difference anymore.
You see, it is an outside in approach. A process defined in the steps the customer likes. That's a service oriented organization.
We not only need new transactional systems to pull this off, but it sets an entirely new standard for flexibility of the management system.
Are you trying to achieve something like this in your company? Drop me a note at frank_buytendijk@nospam.hyperion.com (remove the nospam part from the email address to reach me). I'd love to learn from you...
